COZY PARTY POLITICS IN KURSK AND BELGOROD

C O N F I D E N T I A L MOSCOW 001871

SIPDIS

E.O. 12958: DECL: 07/03/2018
TAGS: PGOV EAGR ECON KDEM RS SMIG SOCI
SUBJECT: COZY PARTY POLITICS IN KURSK AND BELGOROD

Classified By: Acting Pol M/C Bob Patterson. Reasons 1.4 (b, d).


1. (C) Summary: United Russia dominates local politics in
Belgorod and Kursk regions. Politicians first and foremost
push for continued economic growth, and United Russia, the
Communists, LDPR and Just Russia work together with no major
disputes among them. Businessmen enter politics to preserve
their interests, while some parts of the media often see
their role as providing advertising for their oblast. Growth
in manufacturing and agriculture has done much to improve the
local economies, with United Russia getting much of the
credit, especially since much of the economic growth is
driven by infrastructure projects financed largely by Moscow.
With nobody wanting to upset the applecart, the cozy
intermingling of business, politics, and media seems likely
to continue. End Summary.

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Cozy Ties Among Political Parties, Business, Media
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2. (C) Both Belgorod and Kursk are politically dominated by
United Russia. In the March regional Duma elections, United
Russia won 70 percent of the vote in Belgorod and 62 percent
in Kursk, with the Communists, the Liberal Democratic Party
of Russia (LDPR),and Just Russia also winning seats (the
Agrarian Party also claims many members, but failed to win
any seats in the regional dumas). Major positions in the
regional and capital city government are held by United
Russia members. Some local government officials who are
members of United Russia, such as First Deputy Chair of the
Belgorod Regional Duma Ivan Kulabukhov, disdain opposition
parties and argue that if they wanted to improve their region
they would join the "genuine patriots" of United Russia and
work to solve local problems.


3. (C) Despite such sentiments, Belgorod region Duma Deputy
and LDPR member Sergey Loza told us that it makes no sense to
oppose United Russia because all major parties have the same
goals, such as fighting corruption (although nobody could
tell us where corruption was to be found),making sure
presidential orders are carried out, and promoting economic
growth. LDPR exists as a separate party, he said, because it
wants to pursue these goals faster. Representative of the
Committee of State Service and Personnel of Kursk region
Viktor Kurkin told us that the leaders of the major parties
were born locally and had know each other for many years.
This, he said, allowed them to cooperate on solving issues
facing the region. Independent Kursk City Assembly Deputy
Roman Gladkikh, a former United Russia member, told us that,
despite leaving United Russia, he was able to pursue his
agenda of education reform. Both he and Kursk region Federal
Inspector Sergey Shilo also said they work to make sure
presidential orders are carried out and not "lost in the
regional bureaucracy."


4. (C) Kursk City Assembly Deputy and United Russia member
Andrey Kanunnikov told us that in both regions prominent
businessmen like himself enter politics to preserve their
business interests. While lamenting the lack of real
competition among political parties and the transparency it
would bring to local politics, he argued that the current
arrangement of cozy relationships has nevertheless brought
political stability and economic prosperity. If local
businesses prosper, more residents are employed, he argued.
Belgorod Trade Union Chair Nikolay Shatalov told us that the
unions generally do not strike. Local media also do little
to upset the balance. Editor-in-Chief of View, Information,
and Partnership Magazine Mikhail Izotov told us that he sees
his magazine as a good advertisement for Kursk region, but
stressed that he enjoys much freedom to print any article
that is factually true.

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Focus Is On Economic Development...
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5. (C) In both Belgorod and Kursk the promotion of economic
growth, which is widely attributed to United Russia, fosters
much of this political cooperation. Indeed, Loza told us his
party supports immigration from former Soviet states because
of the economic benefits it brings. Belgorod Deputy Governor
Oleg Polukhin told us his region accounts for some 40 percent
of all iron production in Russia. Belgorod, he said, also
sees much agricultural production, including 500,000 tons of
meat produced in 2007.


6. (C) Kurkin told us that Kursk has also seen economic
growth. According to Kurkin, the value of agricultural
production in Kursk has risen threefold in the past three
years. This, combined with nuclear power generation and iron
ore and titanium production has boosted the local economy, he
said.


7. (C) Officials in Kursk, however, are envious of their
neighbors in Belgorod. They credit Belgorod Governor
Yevgeniy Savchenko's energy and relationship with Moscow with
attracting more investment and encouraging more economic
growth. (Bio Note: A former collective farm director,
Savchenko was first elected Belgorod's Governor in 1993. He
was subsequently reelected and then appointed by Putin.) The
extent to which infrastructure investment in Belgorod
outstrips that in Kursk became evident after touring the two
cities, with Belgorod boasting more visible road and building
construction. The Hotel Belgorod, for example, is very
modern and Western-looking, while the Hotel Kursk is a prime
example of communist-era accommodations. Officials in Kursk
(population 450,000) predicted Belgorod (population 375,000)
will be the larger city in the next 30 years.

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...But With State Support
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8. (C) In both Belgorod and Kursk, local officials expressed
their disdain for free markets and praised the GOR's
intervention in economic affairs. Putin called for this when
he visited the Kursk pharmaceutical plant
Farmstandard-Leksredstva on June 19 and said the state should
formulate long-term strategy for those who operate in the
Russian market. He added that the state and manufacturers
should work together to develop the market, and said the
value of pharmaceuticals made by Russian manufacturers should
account for at least half of the Russian market by 2020.
Minister of Economic Development and Trade Nabiullina
traveled to Kursk on June 19 and signed agreements on
economic development with local officials.


9. (C) Belgorod and Kursk officials praised this line of
thinking, and argued the state should be actively involved in
all sectors of the economy. Polukhin stated "we once
believed the market would regulate itself, but the time for
naivete is over." He argued that state help is needed if the
economy is to grow, especially in areas where agriculture
accounts for a large part of the economy.


10. (C) Polukhin pointed to the region's "pride and joy,"
Belgorod State University, as an example of the benefits of
state intervention. Under the auspices of special national
programs, the university has constructed several new
buildings, including a USD 270 million athletic center.
Polukhin praised Moscow for providing the funds needed to
build what he called "one of the finest educational
institutions in all of Russia."
RUSSELL