RUSSIAN INFLUENCE IN SAUDI ARABIA DEFIES LIMITED

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001647

MOSCOW PLS PASS ST PETERSBURG, VLADIVOSTOK, YEKATEREINBURG

SIPDIS

DEPARTMENT PASS TO NEA/ARP FOR JHARRIS, EUR/RUS FOR
SWATSON, INR/REA FOR DFLAHERTY

E.O. 12958: DECL: 10/29/2018
TAGS: ECON ETRD PGOV PREL RS SA
SUBJECT: RUSSIAN INFLUENCE IN SAUDI ARABIA DEFIES LIMITED
PRESENCE

REF: RIYADH 1576

Classified By: CDA David Rundell for
reasons 1.4 (b) and (d).


1. (C) SUMMARY: Russia's footprint in Saudi Arabia - official
and unofficial - is relatively small compared to the U.S. and
many other countries. While several positions in their
Riyadh embassy remain unfilled, Russia seeks an office
location in Mecca to house their mission to the Organization
of the Islmaic Conference (OIC). Russian businesses find
Saudi judicial procedures opaque, creating a significant
barrier to entry. Bilaterally, Russia made a public
relations push by publicly supporting King Abdullah's
Interfaith Dialogue Initiative. Still, the SAG fears taking
actions that would invite Russian retaltiation in other
areas. END SUMMARY.

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MEETING AT THE RUSSIAN EMBASSY
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2. (C) On October 14, representatives of Embassy Riyadh and
INR met with the third-highest ranking official at the
Russian Embassy, Alexander Bagdatiev. Bagdatiev described
himself as an Arabist, having previously served four years in
Amman, five in Egypt, and now two years in Riyadh with at
least one to go. The meeting was extremely cordial and
positive in tone. Discussion remained in the comfort zone of
regional issues of joint concern, such as Israel-Palestine
and how to deal with Hamas, but did not stray into any
significant policy discussions.


3. (C) Bagdatiev made several revealing comments about his
Embassy's operations and Russia's presence in the kingdom.
He noted that Saudi-Russo diplomatic relations officially
began in 1991, although a Ministry of Foreign Affairs contact
pointed out later that day that the real relationship started
long before that date. Bagdatiev estimated that there are
about 400 expatriate Russians living in Saudi Arabia: 300 in
Riyadh, 100 in Jeddah. He lamented that the Russian Embassy
in Riyadh is severely understaffed with several open
positions, creating additional workload for everyone else.
Bagdatiev explained that Moscow wants Arabists for their
Riyadh positions, but those with the right skills tend to opt
for the more lucrative Russian energy sector. Bagdatiev also
shared some surprising anti-Saudi sentiments. "They don't
understand that they're only powerful and respected because
of oil," he said. He bluntly opined that most Saudis are
"stupid," and added that President Ahmadinejad of Iran is
"crazy."


4. (C) Russia has observer status at the OIC, but they plan
to establish a more permanent presence. Bagdatiev described
Russia's efforts to establish a physical presence in Mecca to
house its mission to the OIC. He noted they are actively
looking for space to house a mission and the four or five
diplomats who will staff it. Currently, Russia maintains an
embassy in Riyadh and a consulate in Jeddah.


5. (C) On the economic front, Bagdatiev estimated (perhaps
liberally) US$500 million per year in Saudi-Russo trade.
Russian exports to the kingdom are mainly in the form of
steel, wood and other commodities. Bagdatiev commented that
the Saudi judicial system presents a huge obstacle for
Russian businesses entering the Saudi market. He explained
that Russian businesses do not understand Saudi courts as
they do U.S. or European courts.


6. (C) The Russian Embassy is located about 15 minutes from
Riyadh's diplomatic quarter (DQ),which houses most foreign
missions. The Saudis have designated land on the DQ for
Russia to build an embassy, but construction has not begun.
Bagdatiev complained that somehow Kazakhstan had already
built on the space. He also noted that Russia's current
embassy is in a leased facility off the DQ, meaning that they
do not enjoy the diplomatic privilege of stocking alcoholic
beverages. Bagdatiev added that the Saudis asked Russia for
a similar space in Moscow,s diplomatic zone. The Russians
found a space in a prime area, but the price of land is very
expensive - much more than comparable space in Riyadh - and
currently there is no agreement that would allow the Saudis
to use it.

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RIYADH 00001647 002 OF 002


PUBLIC SUPPORT FOR KING ABDULLAH'S INTERFAITH DIALOGUE
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7. (C) The Saudi Ministry of Foreign Affairs hosted a seminar
titled "Russia and the Muslim World: the 4th Forum of the
Strategic Vision Group" from October 27-29 in Jeddah
(Septel). The event received significant press coverage,
including a front-page spread in the English-language Arab
News, with the headline "Russia Embraces Muslim World." In a
speech delivered by President of Tartarstan Mintimer
Shaimiyev, Russian President Dmitry Medvedev said Russia will
"strengthen its ties with the Muslim world and advance the
cause of the interfaith-dialogue sponsored by King Abdullah,
Custodian of the Two Holy Mosques."

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SAUDIS STILL WATCHFUL OF RUSSIA
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8. (C) The Saudis' attitude towards Russia was summarized
well by Foreign Minister Prince Saud al-Faisal in an October
18 meeting with the Ambassador (Reftel). While discussing
Kosovo, Prince Saud explained that, in view of Russian
concerns, the SAG had judged it wise to delay its recognition
of Kosovo until all the European countries had done so. The
Saudis wanted to avoid taking action that would leave the
Russians feeling isolated or provoke Russian retaliation in
another arena. "Russia is in a strange mood," he worried,
"and we think this is dangerous."

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COMMENT
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9. (C) The size of the Russian expatriate community is
suprisingly small, with a few hundred Russians dwarfed by an
Amcit community estimated at close to 35,000. We believe
Bagdatiev's estimate of trade volume is overstated: press
reports estimate annual trade a closer to US$200 million per
year. Further, the embassy staffing shortage could symbolize
that the Russians to not have a serious diplomatic engagement
with the kingdom. Otherwise, they would ensure that these
empty positions were filled. However, lack of physical
presence should not be confused with lack of influence.
Russia's participation in the Jeddah forum promotes a
positive image to the Saudi public. Prince Bandar bin
Sultan's moves to purchase Russian arms raise additional
questions about the relationship's direction. Most revealing
are Prince Saud's comments, which leave no doubt that Russian
concerns factor heavily into Saudi decisions. END COMMENT.

RUNDELL