GEORGIA: GOVERNMENT SHAKEUP ROLLS ON

C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 002292 SIPDIS E.O. 12958: DECL: 08/25/2018 TAGS: PGOV PREL GG SUBJECT: GEORGIA: GOVERNMENT SHAKEUP ROLLS ON REF: A. TBILISI 2268 ¶B. TBILISI 2189 Classified By: AMBASSADOR JOHN F. TEFFT. REASONS: 1.4 (B) AND (D). ¶1. (C) Summary: The Cabinet shakeup continues with three new Ministers named December 9. The second shakeup follows the initial Cabinet changes announced on December 5 subsequent to Irakli Alasania's resignation as Ambassador to the UN and presumed return to Georgia to enter politics. Current Georgian Ambassador to the U.S. David Sikharulidze is the new Defense Minister, replacing acting Minister of Defense Batu Kutelia who held the seat for 3 days. Lasha Zhvania, Chairman of the Parliamentary Committee for Foreign Affairs and former Georgian Ambassador to Israel, has replaced Eka Sharashidze as Minister of Economic Development. Sharashidze will return to her old job as head of the Presidential Administration. MP Nika Rurua, Deputy Chairman of the Parliament's Committee for Defense and Security since 2004, has taken the post of Minister of Culture. ¶2. (C) Comment: The current changes are wholly consistent with the December 5 changes and appear to be an attempt to lessen any continuing political impact of former UN Ambassador Alasania's resignation and expected announcement that he will join the opposition, and to shore up the Cabinet with Saakashvili supporters. Although the GOG continues to portray the Cabinet changes as part of a long-planned move, the timing and nature of the moves overwhelmingly suggest they were precipitated by Alasania's announcement. The moves also continue to address the expected recommendations from the Parliamentary Investigatory Commission on the August conflict in advance of the Commission's final report, which is expected to be released in the first half of December. Like the previous two Cabinet reshuffles, the Ministers are all familiar faces who do not signal any overall shift in GOG policy or priorities. Naming Alasania confidant Lasha Zhvania as the Minister of Economic Development might reflect a shrewd calculation by Saakashvili that Zhavania would be less likely to leave the UNM fold to join any nascent Alasania political movement as a Minister than an MP. In addition, Zhvania would no longer bring a seat in parliament with him if he joined a new opposition coalition. Rurua is a close confidante of President Saakashvili who at one point confided to the Ambassador that he thought he might have been able to stop the August war if he had been in the country. Ambassador Sikharulidze is a protege of Interior Minister Meribashvili, arguably one of Saakashvili's closest advisors along with DFM Bokeria and Tbilisi Mayor Ugalava. End Summary and Comment. Cabinet Reshuffle Version 2.0 ¶3. (C) Georgian Ambassador to the United States, David Sikharulidze was named Minister of Defense technically replacing outgoing Minister Davit Kezerashvili. Sikharulidze served as Deputy Defense Minister in 2005 before going into diplomatic service. The GOG clarified that Batu Kutelia had been appointed December 5 only as the acting Minister of Defense, officially confirming his placeholder status. One Foreign Ministry contact predicted that Kutelia would remain at the MOD as the first deputy minister to provide continuity. Kutelia and Sikharulidze are reportedly friends and worked together in the past, although he could end up on the chopping block if the GOG feels it needs to cleanse the MOD of those intimately involved in running the August war. ¶4. (C) Incoming Minister of Economic Development Lasha Zhvania replaces Eka Sharashidze who is returning to her previous position as Head of the President's Administration. Qprevious position as Head of the President's Administration. Zhvania represents a shrewd pick because of his close ties to Irakli Alasania, and the appointment might portend a move by President Saakashvili to keep potential Alasania supporters closely in the UNM fold. Zhvania's seat in the Chugureti district in Tbilisi will be filled with a by-election. Zhvania has been involved in trying to attract investment into Georgia following the August events, even helping to bring an American company in that has signed an MOU to develop hydropower facilities. ¶5. (C) Influential lawmaker, Nika Rurua will become the Minister of Culture after Zurab Abashidze turned down the post. He currently is the Deputy Chairman of the Committee for Defense and Security. Moving Rurua from a position of military importance to the Ministry of Culture might be an attempt to deflect criticism of the GOG's handling of the August war. Rurua's vacated parliamentary seat will go to the next in line on the UNM's party list. The More Things Change... ¶6. (C) One colleague at the MFA told Poloff on December 9 that the Foreign Ministry is currently working overtime to TBILISI 00002292 002 OF 002 keep up with the flood of rumors about what will come next. He predicted that Vashadze will have five deputy ministers and that the leading candidate for first deputy minister is Zurab Abashidze (former Ambassador to Russia mentioned in para 5 who told the press that he refused his appointment as Minister of Culture because he had no experience in that area). The deputy minister portfolio for U.S. Affairs and conflict issues is expected to go to experienced diplomat Alexander Nalbandov. Kakha Lomaia is considered the leading candidate to be named Ambassador to the United States and, according to this contact, Giga Bokeria is looking to go to the Procuracy. No word yet who will replace Lomaia at the National Security Council. And, according to the MFA rumor mill, no one at the Ministry has heard from former Minister Eka Tkeshelashvili since her dismissal was announced December 5, although she is rumored to be a candidate to replace Lomaia at the NSC. TEFFT