EU-RUSSIA SUMMIT: MEDVEDEV GETS A GOOD REVIEW

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 001021

SIPDIS

E.O. 12958: DECL: 07/08/2018
TAGS: PREL PHUM ENRG ETRD ETTC EINV ECON PBTS EUN
RU, IR, GG, MD
SUBJECT: EU-RUSSIA SUMMIT: MEDVEDEV GETS A GOOD REVIEW

Classified By: Alyce Tidball, Acting Polmincouns for reasons 1.4 (d) an
d (e)

SUMMARY
1.(C) EU and Slovene (Presidency) Russia experts who
participated in the June 26-27 EU-Russia summit in
Khanty-Mansiisk, Siberia reported that the event was strong
on positive atmospherics and weak on tangible results.
Medvedev received high marks from the Europeans for
refraining from Putin-style rhetoric and willingness to
engage on issues. He spared the EU an anticipated tirade on
Kosovo, but disagreed with Solana on the utility of tougher
sanctions against Iran. The EU was buoyed by Medvedev,s
stated willingness to help bring about direct talks between
the parties to frozen conflicts in Georgia and Moldova. EU
officials pressed for faster progress on WTO-related issues
and the Russians pressed for negotiation of a visa-free
regime. END SUMMARY

Medvedev: A Breath of Fresh Air
--------------
2.(C) Newly elected Russian President Medvedev left a
positive impression on the EU Troika who thought he was a
breath of fresh air compared to former President Putin.
Medvedev was comfortable, open and engaging; a good listener
who kept rhetoric to a minimum. The EU side noticed that
Medvedev deflected efforts by FM Lavrov and Kremlin Foreign
Policy Advisor Pridkhodko to steer him at various points in
the conversation. Medvedev only employed Putin-style
rhetoric when he raised recent treatment of WWII history in
Estonia and other Baltic states. Overall, he was pragmatic
and dispassionate on frozen conflicts and economic issues,
punctuating his comments with reference to his legal
background. He asserted that he approached problems from a
lawyer,s perspective that weighted the importance of rules
and the need to follow them. Lavrov seemed peevish (Russia
did lose in the Eurocup semifinal to Spain 3-0 the previous
night),uncomfortable and unsure of how to position himself
in front of Medvedev. The MFA signaled its low expectations
for the summit by limiting its delegation to the line
officers for European affairs. One Council Secretariat
source speculated that Lavrov is anxious to restore some of
the MFAs power vis a vis the Kremlin while Medvedev finds his
feet.

EU Tensions Within and Without
--------------
3.(C) According to one Council Secretariat source, EU
dynamics with Medvedev were mixed to some extent because the
Russians do not enjoy particularly warm relations with
Barroso and Ferrero-Waldner but do with Solana. For its
part, Solana,s team was irritated by Commission,s last
minute insistence that RELEX Commissioner Ferrero Waldner,
Trade Commissioner Mandelson and Slovene PM Jansa be added to
the June 26 small dinner between Solana and Medvedev. Solana
did manage to have a brief pull-aside with Medvedev at the
social events. Medvedev also invited him to visit Moscow.
While no dates were discussed, the trip could happen before
the UNGA. Solana tried to convey polite interest, but not
necessarily support, for Medvedev,s few proposals thus far
for Russia-Europe relations. He raised Medvedev,s recent
Berlin speech on European security architecture in this
context. Medvedev reiterated his "old structures and new
situation" line as well as the old Gorbachev reference to
Europe as "our (common) house." Solana did not debate the
point, but opined that current structures were still valid
and needed to be used.

Georgia
--------------
4.(C) Medvedev seemed intent on setting out his own approach
on Georgia. He reiterated now-familiar Russian talking points
on the importance of following international law, peaceful
settlement, but stated that Russia supported direct talks
between the Abkhaz and Georgians, asserting that there should
be no wheeling and dealing between the major powers at the
expense of the two sides. "Direct talks were the only way" to
resolve the issues. He noted that he had seen Bagapsh the
day before the summit and reiterated Bagapsh,s two
conditions for talks: Georgian withdrawal from Kodori and a
Georgian declaration of non-use of force. The EU called on
Russia to support the Friends plan, including the package of
short term steps to calm the current tense situation. The EU
hoped Russia would engage constructively and assured that it
was ready to do more to support the Friends, efforts. Solana
expressed confidence that Georgia wanted this to work, but
was not sure of Abhkaz intentions.

5.(C) Medvedev agreed that there would need to be constant
dialogue between the two sides and supported contacts between
Bagapsh and GOG officials. However, he insisted there should
be no "arbitrary changes to the format," especially if one

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side were pushing for it. Nonetheless, he would be "flexible
on this issue (i.e., formats)." (Note: Our Council contact,
who was in the meeting, could not tell us whether Medvedev
was referring to both negotiating and peacekeeping formats,
but thought he was making a general point that could apply to
both.) On the other hand, Lavrov criticized some of the
Friends for elaborating their proposals before consulting or
coordinating with Russia and compared the action to similar
moves by the Quint and the Cyprus contact group.

Moldova
--------------
6.(C) Transnistria: Medvedev and Solana both referred to
their recent contacts with Voronin regarding formats
(agreement to a 1 2 on the condition of a 5 2 thereafter).
Medvedev called for no pre-conditions, but noted that Voronin
seemed intent on making progress toward a settlement.
Smirnoff was "sending signals, too." Lavrov said the
Russians would facilitate a 1 2 and called on the EU to
continue its facilitation of dialogue between the two
Parliamentary speakers so that all sides could &return to
the situation in 2000 in which there was action in a
constitutional commission (NFI),and there was international
cooperation, as well as resumption of withdrawal of Russian
troops and ammunition. He again complained that Russia
should not be excluded from discussions of friends of the
process. Our EU contacts thought that Medvedev,s remarks on
Georgia and TN were sufficiently authoritative to
seek/trigger real action from the Russians at the expert
level. Medvedev and Lavrov only referenced Kosovo in a
cursory manner in their remarks. The EU delegation was
pleasantly surprised by this, particularly since they had
been warned by Russian MFA experts and Russian Mission to the
EU Ambassador Chizov that the EU would receive an earbashing
from the Russians on Kosovo at the summit.

Iran
--------------
7.(C) Solana shared his impressions of the June trip to
Tehran to deliver the P5 1 package in which he was joined by
Russian MFA Political Director Sergei Kislyak. Referring to
EU,s designation one week earlier of Bank Melli and other
Iranian individuals and entities, Medvedev said he was
surprised by the EU,s new "tougher" sanctions, calling them
counterproductive. Solana rejoined that these measures were
part of EU responsibilities to implement earlier UNSCRs 1737
and 1747 (and not UNSCR 1803) and fully consistent with the
dual track approach.

Missile Defense
--------------
8.(C) There was mention of the topic in the formal plenary
meeting, but in the smaller lunch meeting, Medvedev made
remarks similar to those at the closing press conference.
While acknowledging emerging missile and proliferation
threats he called on Europe not to "subcontract" its security
to a "rich" partner.

Human Rights, Visas, and Security Cooperation
--------------
9.(C) The EU welcomed the April 2008 bilateral human rights
dialogue and indicated that it was Russia,s turn to host the
next round of talks. The Russians demurred. On security
cooperation, the Russians welcomed the EU's acceptance of
Russian helicopters in the EU ESPD Chad mission. On JHA
matters, the Russian delegation reiterated its interest in a
visa-free arrangement with the EU.

Economic and Energy Issues
--------------
10.(C) In advance of the G8 summit in Hokkaido, the two
sides reviewed climate change issues, food security, and
energy matters. Medvedev reportedly criticized U.S.
"economic egoism" and the weak dollar. Both the EU and
Russia reviewed progress in the Four Common Spaces and
welcomed the launch of negotiations for a follow up agreement
to their Partnership and Cooperation Agreement. For its
part, the Russian side reportedly told the EU it is
interested in reaching quick agreement on a "framework"
document to be followed by a "more formal" agreement in the
future.

Energy
--------------
11.(C) Medvedev reportedly referenced his interest in North
Stream several times in the conversation and accused some EU
member states of pushing Russia to give it up. He asserted
that the pipeline project should not be "politicized" and
that risks to the project must be reduced. EU Commission
President Barroso said that the EU supported the project, but
noted that Russia needed to resolve environmental problems
that were obstacles to its realization. More broadly, the EU

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agreed with Medvedev that European and Russian investors
needed to have opportunities to invest in upstream and
downstream energy projects. Barroso and Mandelson both
raised EU concerns about the TNK-BP venture, including the
issue of work permit quotas for EU member state nationals.
Medvedev said that nation states should not interfere, in
specific joint ventures and pledged that the quota problems
were a Russian error that would be corrected.

WTO
---
12.(C) The EU urged Medvedev to accelerate Russian efforts
to resolve issues related to its bid for WTO membership.
Slovene Presidency and Council Secretariat sources noted that
while Medvedev seemed more willing and positive on this point
than Putin did at the EU-Russia summit six months earlier, no
tangible new commitments were offered. The Russians
reiterated that the Siberian over flight agreement would not
enter into force until after Russia,s WTO accession was
completed. A July 26 meeting between EU Trade Commissioner
Mandelson and Russian Minister for Economic Development
Elvira Nabiullina yieled an agrement to have experts
consults constructively on timber exports in mid to late
July. Russian officials were in listening mode as the EU
declared that Denmark had been severely hit by Russian pork
import restrictions which were inconsistent with the WTO SPS
agreement.
WOHLERS
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