MONGOLIAN MILITARY WELCOMES RUSSIAN HARDWARE

C O N F I D E N T I A L SECTION 01 OF 02 ULAANBAATAR 000226

SIPDIS

STATE FOR EAP/CM AND INR/EAP

E.O. 12958: DECL: 05/19/2018
TAGS: MASS PREL KPKO MARR MOPS PGOV ECON MG RU
SUBJECT: MONGOLIAN MILITARY WELCOMES RUSSIAN HARDWARE

REF: A. A: ULAANBAATAR 99

B. B: ULAANBAATAR 90

C. C: ULAANBAATAR 221

Classified By: Charge d'Affaires Brian L. Goldbeck for Reason 1.4(d).


1. (C) SUMMARY: In the latest sign of closer relations
between Mongolia and Russia, the Mongolian Armed Forces have
reorganized their Peace Support Battalion (PSB) structure to
reflect the planned arrival, starting in 2009, of at least 40
Russian BRT-80 armored personnel carriers. The
diesel-powered BRT-80s are part of a recent Russian grant aid
package to Mongolia. The PSB reorganization, discovered by
Post's Defense Attache (DATT),represents a major departure
from a light-infantry orientation to a heavy mechanized
battalion. The PSB reorganization precedes the first visit
in 27 years by a Russian Defense Minister to Mongolia.
Anatoly Serdyukov is scheduled to visit Mongolia on May 21,
leading a 34-person delegation. This visit would follow a
number of other visits by officials of the two countries,
including one to Moscow by Prime Minister Bayar and one to UB
by the acting Chairman of Russia's NSC, as well as several
other actions indicative of an uptick in the tempo of
Russia-Mongolia relations. END SUMMARY.


2. (C) In the latest sign of closer relations between
Mongolia and Russia, the Mongolian Armed Forces have
reorganized their Peace Support Battalion (PSB) structure to
reflect the arrival, starting in 2009, of at least 40 Russian
BRT-80 armored personnel carriers. The diesel-powered
BRT-80s are part of a Russian grant aid package to Mongolia.
The PSB reorganization, discovered by Post's Defense Attache
(DATT),represents a major departure, from a light-infantry
orientation to a heavy mechanized battalion. Until now, the
two established PSBs - Unit 150 in Ulaanbaatar and Unit 330
in Darkhan - consisted of three light infantry companies and
one mechanized company of 10 BTR wheeled armored personnel
carriers. Now, the Mongolian Armed Forces (MAF) have
embraced three BTR companies and one light infantry vehicle.
(No change is expected in the number of soldiers per
battalion; it is to remain at 850.) According to the DATT,
this reorganization will give the MAF's Peace Support
Battalions greater mobility and protection for dangerous UN
missions, but it will also make the units more difficult to
deploy, and increase fuel and maintenance requirements for
Mongolia's underfunded military. (Note: While this will
also open up more UN deployment opportunities, the profile
will also be higher-risk, and there is no indication that the
GOM has thought through the casualties implications of this
decision. End Note.)


3. (C) Until now, the MAF's Peace Support and Cooperation
Department (PSCD) has relied almost entirely on U.S.
assistance for training and equipment. The ongoing shift to
Russian hardware shows Russia's growing role in Mongolian
affairs. It is not yet clear how many tanks and other
weapons or weapons systems Russia will provide to Mongolia.
It is also unclear whether, as some suspect, Russia will
offer training to Mongolian peace support troops. As noted
by our DATT, a Russian-trained Mongolian colonel took over in
April as the Deputy Director of the PSCD, a move that could
suggest a desire on the part of the MAF to bring greater
Russian expertise into the department.


4. (C) The PSB reorganization precedes the first visit in 27
years by a Russian Defense Minister to Mongolia. Anatoly
Serdyukov is scheduled to visit Mongolia on May 21, leading a
34-person delegation. A four-day visit was planned, but this
appears to have been scaled back to one day. The GOM is
keeping a tight lid on information related to the visit; the
Mongolian public has not been informed.


5. (C) Serdyukov's visit would follow a number of other
high-profile visits by officials of the two countries. PM
Bayar recently visited Moscow, and in February, the acting
Chairman of Russia's NSC, Maj. Gen. V.A. Sobolev, visited
Ulaanbaatar and met with Bayar and President Enkhbayar (ref
A). Meanwhile (ref B),the Russians are reportedly planning
to invest $1 billion in Mongolia's railway system, and ethnic

ULAANBAATA 00000226 002 OF 002


Buryat tourists and businesspeople from Russians are flocking
to Mongolia. Other forms of recent Russia-Mongolia
interaction include the following:

-- Mongolian Prime Minister Bayar, a former Ambassador to
Russia, sent a congratulatory telegram to Vladimir Putin,
following his appointment as Russia's PM.

-- A gala reception and a concert were held in UB to mark the
63rd anniversary of Russia's victory in WW II.

-- Russian and Mongolian authorities discussed the
development of a tourism route between Russia's Lake Baikal
and Mongolia's Lake Khovsgol. (The two sides agreed to
implement direct flights from Murun, Khovsgol province, to
the Russian city of Irkutsk, in the summertime.)

-- A 236-person delegation from the Russian city of Ulaan-Ude
visited Mongolia to take part in a May 14-17 economic and
cultural festival.

-- A trade fair featuring Russian-made products was recently
held in Mongolia's Uvs province. Sixteen enterprises
reportedly took part and a number of contracts were signed.

-- Documents held in Russian archives on the history of
Mongolia will be reproduced and published as a book.


6. (C) Mongolia derives more than 90 percent of its gasoline
and diesel from a single Russian company, the state-owned oil
giant Rosneft. PM Bayar has expressed support (ref C) for a
quid pro quo that would see Mongolian fuel prices stabilized
in exchange for permission for Rosneft to set up 100 gas
stations in Mongolia. Mongolia's leading opposition party,
labor leaders and members of the public have railed against
this plan, accusing Bayar of selling out Mongolian
sovereignty in exchange for lower fuel prices just before the
June 29 Parliamentary elections.
GOLDBECK