RUSSIA HAS NO INFORMATION ON ZIMBABWEAN BANK NOTES

C O N F I D E N T I A L MOSCOW 002943

SIPDIS

AF/S BRIAN WALCH

E.O. 12958: DECL: 10/03/2018
TAGS: ASEC ECON EFIN PGOV RS ZI
SUBJECT: RUSSIA HAS NO INFORMATION ON ZIMBABWEAN BANK NOTES

REF: A. STATE 103129

B. STATE 103392

Classified By: Political M/C Alice G. Wells for reasons 1.4 (b/d).


1. (C) We delivered reftel demarches on October 2 to MFA
Africa Counselor Andrei Stolyarov, who said that the GOR did
not have any information regarding a report that either a
Russian company or individuals had contracted with a
Zimbabwean company to produce Zimbabwean bank notes. This
did not mean that the report was inaccurate, as Russians
could be involved without the GOR's knowledge. Stolyarov
explained that the Zimbabwean Ambassador to Russia is very
active and travels regularly throughout the country,
providing ample opportunity to "quietly" find an appropriate
Russian company to assist with printing Zimbabwean bank
notes. Should a Russian company be involved, neither the
Zimbabweans, nor the Russians, would want this arrangement to
become known considering that a German company previously
engaged by the Zimbabweans was pressured into canceling its
contract. Executives of such companies are "just crooks"
interested in money for themselves, Stolyarov complained.


2. (C) Stolyarov told us that the GOR was taking a "wait and
see" approach to the September 15 power sharing deal between
Mugabe and Tsvangirai, which offered Zimbabwe its best chance
to achieve some level of political stability. Stolyarov
agreed that it was crucial for the government tackle the
country's rampant inflation, the effects of which upon the
Zimbabwean people he witnessed firsthand during his service
in Harare. Russian energy and manufacturing companies were
also watching the situation in Zimbabwe, which they saw as a
potential market should the government succeed in stabilizing
the economy.
BEYRLE