RUSSIA COURTS ASIA AND VICE VERSA

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 005051 SIPDIS SIPDIS E.O. 12958: DECL: 10/10/2017 TAGS: PGOV PREL EINV ENRG BG VM RS SUBJECT: RUSSIA COURTS ASIA AND VICE VERSA REF: A. MOSCOW 4447 ¶B. 06 HANOI 2978 Classified By: Political M/C Alice Wells for reasons 1.4 b/d. ¶1. (C) Summary: Russia continues to expand its influence in Asia by taking advantage of Asian eagerness to improve relations with a politically and economically resurgent Russia. Both the Prime Minister of Vietnam and Foreign Minister of Bangladesh visited Moscow recently, seeking to increase bilateral trade and attract Russian investment, which Russia was only too happy to provide. Russian companies are investing in joint ventures in Vietnam, oil and gas projects in Vietnam and Bangladesh, and could provide both countries with nuclear power plants. Increased energy and investment diplomacy will help the GOR meet its goals of continued Russian economic growth and increased international influence. End summary. Improving Ties With Putin's Russia -------------- ¶2. (C) Russian, Vietnamese, and Bangladeshi diplomats told us that increased Russian attention to Asia led to the September visits to Moscow of Prime Minister of Vietnam Nguyen Tan Dung and Bangladesh Foreign Minister Iftekhar Ahmed Chowdhury. Both leaders sought to improve diplomatic relations with Russia and tap into a thriving Russian economy. PM Dung met President Putin and then Prime Minister Fradkov, as well as a number of business leaders for what Russian and Vietnamese diplomats described as a successful, business oriented visit. FM Chowdhury met Deputy Prime Minister Naryshkin, Foreign Minister Lavrov and Deputy Minister for Energy and Industries Materov during the first visit to Moscow by a Bangladeshi Foreign Minister in 17 years. Russia-Bangladesh: Energy Partners -------------- ¶3. (C) Head of the MFA Bangladesh Desk Nikolay Listopadov explained that while Russian interest in enhancing ties with Bangladesh plays into the GOR goal of improving relations with the Muslim world, the GOR is particularly interested in Bangladesh's economic potential. Russia has been a longtime energy partner of Bangladesh, where Technopromexport has constructed several gas-fueled power plants that provide approximately 30% of Bangladesh's electricity. While in Moscow, FM Chowdhury met with Deputy Minister for Energy and Industries Ivan Materov to discuss the construction of additional gas-fueled plants, a future nuclear power plant, and Russian investment in the exploration of Bangladeshi oil and gas reserves. ¶4. (C) Bangladesh First Secretary Mehdi Hasan told us increased Russian interest in Asia contributed to FM Chowdhury's Moscow visit. Bangladesh and Russia have had cordial, but not particularly close relations since Bangladeshi independence 35 years ago. The situation changed over the last few years, during which Russia "stepped up" its Asian diplomacy and FM Lavrov invited Chowdhury to Moscow. Bangladesh was eager to take advantage of the opportunity, as Russia has become "too big to ignore." Most importantly, Russia is seen as a potential source of capital and market for Bangladeshi exports. Hasan said his small Embassy already has its hands full assisting Bangladeshi commercial representatives attending Russian trade shows. Former Communist Allies Focus on Business -------------- ¶5. (C) Head of the MFA Vietnam Desk Vladimir Klimov explained that improved Russia-Vietnam relations contributed to the success of PM Dung's business oriented trip. Both Klimov and Vietnamese First Secretary Nguyen Phan Hong Hai described for us how bilateral relations dropped off following the breakup of the Soviet Union but were revived after Putin increased Russian diplomatic activity in Asia and even visited Vietnam (ref B). Hai understood the GOR also hoped to cash in on any residual good feeling toward Russia for Soviet support of Vietnam. The result has been a host of new business opportunities for Russian firms. During Dung's visit, Russian mobile phone company VimpelCom announced plans to establish a joint venture in Vietnam worth $1 billion and mining company RusAl said it is finalizing an estimated $1.5 billion agreement to develop Vietnamese bauxite deposits. PM Dung also met with Gazprom CEO Alexei Miller to follow up on an agreement signed in 2006 by Gazprom and PetroVietnam to jointly develop gas projects in Southeast Asia. Comment -------------- MOSCOW 00005051 002 OF 002 ¶6. (C) The Vietnamese and Bangladeshi visits support what we have heard previously from diplomats and analysts regarding the economic focus of Russia's diplomacy in Asia (ref A). With plenty of capital for overseas investments, Russia can court a variety of Asian countries and gain influence in the region. Russia's continued economic growth ensures that Asian countries will want to court Russia as well. Burns