THE FOREIGN AFFAIRS OF RUSSIA'S REGIONS: VIEW

C O N F I D E N T I A L MOSCOW 001951

SIPDIS

E.O. 12958: DECL: 07/08/2018
TAGS: PREL EIND ETRD MD PBTS PGOV RS SNAR UP BO
WTRO
SUBJECT: THE FOREIGN AFFAIRS OF RUSSIA'S REGIONS: VIEW
FROM THE UKRAINIAN BORDER

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


1. (C) Summary: Regional governments in Belgorod and Kursk
work closely with their Ukrainian and Belarusian
counterparts, and are minimally affected by any disputes
their national governments may have. Local officials meet to
discuss ways to promote cross-border trade, cultural
exchanges, and work on common problems. Even when commenting
on national politics, officials in Belgorod and Kursk frame
their arguments in a local context. Trade with Ukraine,
Belarus, and to a lesser extent Moldova, is growing, with
local business organizations working to help Belgorod and
Kursk companies do business with foreign companies.
Strengthening cultural ties is also a priority, and exchange
programs of various sorts are promoted. End Summary.

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Local Politics Not Affected By Moscow-Kiev Relations
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2. (C) The Belgorod and Kursk regions of Russia border on
Ukraine and lie less than 100 kilometers from Belarus.
Officials of the regions told us that, despite disagreements
at the national level, they enjoy excellent relations and
close cooperation with local government officials in Ukraine
and Belarus. In fact, Belgorod and Kursk officials often
meet with their Ukrainian and Belarusian counterparts to
discuss ways to foster cross-border trade, fight narcotics
trafficking, and promote cultural exchanges. The Ukrainian
region of Kharkiv, which borders Belgorod, is especially
active in working with Belgorod and Kursk. Such cooperation
comes naturally to the many officials who have relatives in
Ukraine and Belarus, and is simplified by the lack of a visa
regime in the three areas.


3. (C) Even national issues are grounded in local concerns.
Sergey Loza, Belgorod regional Duma Deputy from the Liberal
Democratic Party of Russia, expressed his strong desire not
to see Ukraine join NATO, due to his fear that visas would
then be required to travel and Russians would lose close
contact with relatives across the border. Editor-in-Chief of
View, Information, and Partnership Magazine Mikhail Izatov
lamented the breakup of the Soviet Union because it deprived
the Kursk region of easy access to markets in Ukraine,
Belarus, and Moldova. Despite a common language, he said,
manufacturers and traders now have to deal with the hassle of
customs regulations and different national laws.

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Economic Cooperation Is Paramount
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4. (C) According to Belgorod First Deputy Governor Oleg
Polukhin, cross border trade is growing, but he complained
that his region has a small trade deficit with Ukraine.
Representative of the Kursk Committee of State Service and
Personnel Viktor Kurkin told us his region had signed more
than 100 economic cooperation agreements with Ukraine,
Belarus, and Moldova. He said Kursk has distributors of
everything from Belarus-brand tractors to Moldovan wine.
Kursk City Assembly Deputy and General Director of the
Elektroapparat Corporation Andrey Kanunnikov told us he works
hard to promote links with local governments in Ukraine and
Belarus because this inevitably creates business links as
well. He said his company sells many of its products to
Ukraine, Belarus, and Moldova.


5. (C) Chair of the Belgorod Fund for Small Business Support
Tatyana Sharova told us her organization and others like it,
such as the Belarus-Ukraine-Russia Business Council, work to
promote cross border business contacts. The Ukrainian region
of Kharkiv, she said, is a very active partner and even has
dispatched a representative to her organization. She said
Ukrainian membership in the World Trade Organization (WTO)
had not had any visible effects on cross-border business, and
her organization offers classes for entrepreneurs on how to
conform with new Ukrainian rules and regulations that are
WTO-consistent.


6. (C) While in Kursk, PolOff attended a business exposition
and agricultural fair in which companies from Russia,
Germany, Ukraine, Belarus, and Moldova displayed goods,
including cosmetics, clothes by fashion designers, china, and
tires. The Kursk Governor signed 10 economic and business
agreements, while local officials proudly announced the
signing of several "major" business deals. Independent Kursk
City Assembly Deputy Roman Gladkikh said he was pleasantly
surprised to see an American at the event, and posited his
city would greatly benefit from U.S. investment.

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Cultural Connections
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7. (C) In addition to business, there is a strong interest in
both Kursk and Belgorod in cultural exchanges with Ukrainian
and Belarusian regions. The Kursk business exposition and
agricultural fair featured a cultural component, complete
with folk dancers and music groups. Chair of the Assembly of
Slavic Nations of Belarus, Russia, and Ukraine Viktor
Ovchinnikov told us many organizations like his work to
strengthen cross border cultural ties. He said he wants
today's youth to learn about the history and culture that 400
million Slavs worldwide share, and so he organizes cultural
exchanges, academic conferences, and artistic shows, all to
educate youth about their Slavic roots. He invites students
not only from the former Soviet Union, but from other Slavic
countries such as Poland and Montenegro as well.
BEYRLE