UNOFFICIAL SAUDI REACTION TO PUTIN VISIT: CLEARLY

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 000318

SIPDIS

SIPDIS

NEA/ARP FOR SWALKER/BSHUKAN

E.O. 12958: DECL: 02/15/2017
TAGS: PREL PGOV PINR ECON EPET RU SA
SUBJECT: UNOFFICIAL SAUDI REACTION TO PUTIN VISIT: CLEARLY
A SUCCESS


Classified By: Ambassador James C. Oberwetter for reasons 1.4 (b) and (
d).


1. (U) Russian President Vladimir Putin concluded on February
12 a two-day visit to the Kingdom of Saudi Arabia -- the
first ever by a Russian head of state. Described by some
analysts as an "historic visit," Putin was accompanied by a
delegation that included approximately 60 businessmen. The
Saudi press hailed Putin's "maiden" visit as a success, and
political, economic, and energy experts agreed that the visit
would impact bilateral relations. Some Saudi contacts are
speculating that Putin's government is seeking to support
Saudi interest in nuclear power plants. Others think Russia
is seeking to expand access to Saudi upstream gas business,
building on Lukoil's gas production deal. Al-Riyadh
newspaper commented in its February 12 edition that "Russia
has various capabilities in agriculture, power, space
technology, and industry," observing that experts in these
fields were included in the Russian delegation.


2. (C) According to a working-level MFA contact, Putin's
visit had been well-orchestrated, and cooperation agreements
signed during the visit were hammered out in advance of his
arrival. Septels will cover official reaction to the Russian
president's visit to the Kingdom; however, Putin publicly
stated Russia's intent to increase cooperation with the
"Islamic world," and analysts and press widely anticipated
discussions regarding regional issues -- including Iran's
nuclear aspirations. In an interview with the Russian press
agency, Custodian of the Two Holy Mosques King Abullah bin
Abdul Aziz noted the "important" role Russia plays in efforts
aimed at resolving the Israel/Palestine conflict. He also
stressed the importance of the bi-lateral relationship
vis-a-vis regional issues during the February 12 Council of
Minister's meeting. The Arabic press reported that Crown
Prince Sultan and Putin discussed regional and international
issues during their February 12 meeting, specifically
mentioning the "Palestinian issue."


3. (C) Saudi Arabia and Russia also strengthened cultural and
trade ties during the visit by signing a number of
agreements. One agreement eliminates double taxation on
income and capital. Another establishes air links between
the two countries. Additionally, the Russians agreed to
launch six Saudi-manufactured satellites -- five
communications and one remote sensing -- this year. Other
agreements support cultural exchanges, development funds, and
cooperation between Saudi and Russian state news agencies.
During a meeting of Saudi and Russian businessmen, Putin
discussed ways to enhance Saudi-Russian trade and said Russia
is willing to cooperate with the Kingdom in areas such as
nuclear energy, aerospace technology, railways, and the
oil/gas sectors. President of the Riyadh Chamber of Commerce
Abdul Rahman Al-Jeraisy told Acting DCM on February 12 that
the Russians are also interested in upstream gas, real estate
investments in both countries, and Saudi railway projects.


4. (C) The Saudi press -- both print media and television --
provided extensive coverage of the Putin visit, most of which
was positive. Even discussions in Internet fora were
enthusiastic about the visit. Local Saudi contacts noted
that the "pomp and circumstance" associated with the visit
was far more extensive that with any other high-level
visitors in the recent past. Many expressed optimism
regarding the visit, with some suggesting that expanded
relations with Russia would lessen "U.S. dominance" in Saudi
Arabia. Several private citizens envisioned that the
appearance of another major world player on the regional
scene would result in "more justice in dealing with Arab
causes -- especially the Palestinian issue." This sentiment
was echoed on several web postings. The Arabic newspaper
Al-Riyadh commented on February 12 that, "We feel that the
Russian tradition is not far from us...its traditions are
closer to the East than the West." Nonetheless, some were
suspicious of the Russians, recalling "Muslim and Arab
'martyrs'" in Chechnya.

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5. (C) According to our working-level MFA contacts, there
were no "surprises" with the Putin visit. The Saudi press'
positive coverage of the visit also comes as no surprise as
it is largely directed by the SAG. However, the preliminary
reaction of the Saudi public -- especially in the context of
Putin's February 10 comments in Munich -- highlights the
negative public perception many Saudis have conveyed
regarding U.S. policies in the region. Additionally, with
growing Saudi concern -- both public and private -- over
Iran's stated nuclear goals -- it is interesting that there
was little mention of the more troubling aspects of Russia's
relationship with Iran. While it is possible that there is a
general lack of understanding regarding the implications of
that relationship, it is more likely that this is another
public manifestation of Saudi dissatisfaction with U.S.
policies in the region. END COMMENT.
OBERWETTER