PUTIN PAYS A CALL ON UAE LEADERSHIP

C O N F I D E N T I A L ABU DHABI 001517 SIPDIS SIPDIS FOR NEA/ARP, NEA/FO DAS GRAY; PM/RSAT; P HMUSTAPHA DOD FOR OSD PDAS MBLONG; DAS KIMMITT NSC FOR NRAMCHAND, MDORAN, EABRAMS E.O. 12958: DECL: 09/11/2017 TAGS: PREL ETRD RS AE SUBJECT: PUTIN PAYS A CALL ON UAE LEADERSHIP REF: ABU DHABI 1497 Classified by Charge d'Affaires Martin Quinn, reasons 1.4 (b) and (d). ¶1. (SBU) Russian President Vladimir Putin made a six-hour stop in Abu Dhabi September 10, on his return from the APEC Summit in Australia. The visit was the first by a Russian head of state since the UAE gained independence in 1971. Putin lunched with UAE President Sheikh Khalifa bin Zayed and presided over the signing of a number of bilateral agreements (concerning cooperation on fighting crime, aviation services, peaceful use of space, diplomatic cooperation, and procedures for servicing -- and eventually eliminating -- outstanding Soviet debt estimated at about $600 million). ¶2. (C) MFA Assistant Under Secretary for International Cooperation Mohammed Abdul Rahim Abduljalil told PolChief September 11 that the visit was productive but predictable, with no particularly meaningful agreements. ¶3. (C) Having established diplomatic relations in 1986, Russia and the UAE have found compatibility in trade relations and engaged to a certain degree in security cooperation (including discussions on the Pantsyr air defense system, ref A). Russian presidential aide Sergei Prikhodko was quoted in the press as saying Putin would "naturally discuss military-technical cooperation," but no concrete results of such discussions are yet clear. ¶4. (C) According to various press reports, bilateral trade is expected to reach a record $800 million this year. As many as 450 Russian companies are registered in the UAE, with a resident Russian population of about 10,000 (and a school of 200 students). The English Daily "Gulf News" gave the breakdown in imports from Russia as raw diamonds and gold (40%),machinery (20%),raw materials (15%),food and agricultural products (10%),chemicals (5%),and "other" (10%). The UAE is also a significant tourist destination, with an estimated 280,000 Russian tourists visiting annually. On the dark side of the relationship, women from Russia and other former-Soviet republics have a reputation for prostitution, and Russian-Mafia money is allegedly invested in the Dubai property market. ¶5. (SBU) Seminars by the Arab-Russian Business Council and similar organizations reportedly addressed the need to relax visa requirements for Russians visiting the UAE, the possibility of regular marine services between the two countries, and the exchange of industrial information. With names like "Relations between the UAE and the Russian Federation," these symposia were complemented by a positive mood of cultural exchange, with an exhibition of Kremlin treasures opened in the upscale Emirates Palace Hotel and a parcel of land recently granted for the building of the first Russian Orthodox church in the UAE. ¶6. (SBU) Putin is reported in the press to have commented on U.S.-Russia relations as well, noting that it is still possible to reach a compromise with the United States over Washington's plans to locate parts of a missile-defense shield in Europe. Putin called for settling the matter by compromise rather than "with confrontation and by rattling weapons." ¶7. (C) Comment: The fact that Putin visited is significant as a show of interest in relations with the UAE and an endorsement of ongoing economic cooperation. The visit is not likely to lead to an immediate upswing in strategic relations, although awareness of mutual interest in stable economic ties clearly got a boost. With the exception of the agreement to deal with Russia's Soviet-era debt, most of the agreements appear to be the general "fluff" that accompany most high-level visits. The Abu Dhabi Investment Authority, which had met with Russian officials prior to Putin's visit declined to sign any agreement, as the terms were "not favorable." End comment. QUINN