(C) DENMARK RESETS RELATIONSHIP WITH RUSSIA

C O N F I D E N T I A L COPENHAGEN 000494

SIPDIS

STATE FOR EUR/RUS, EUR/NB, EUR/CARC, EUR/ERA, EUR/RPM
STATE FOR EUR/UMB, EUR/WE, OES

E.O. 12958: DECL: 11/04/2019
TAGS: PREL ECON SENV RU DA
SUBJECT: (C) DENMARK RESETS RELATIONSHIP WITH RUSSIA

Classified By: (U) Ambassador Laurie S. Fulton; reason 1.4 (b, d)


1. (C) SUMMARY: Prime Minister Rasmussen's November 2 visit
to Moscow at the invitation of Prime Minister Putin
demonstrated that Denmark and Russia have reset their
relationship. This was the first such meeting since 2002,
when relations soured after Denmark allowed Chechens to hold
a conference here. Putin appreciated Denmark's recent
approval for the Nord Stream gas pipeline to pass through its
territorial waters. Very focused on economic development,
Putin was eager for cooperation with Danish firms in many
areas, notably energy, including wind and energy efficiency.
On Arctic cooperation, the Russian side made clear it wants
the five littoral nations to lead. On climate change, the
Danes came away expecting Russia not to make trouble at
COP-15, but not to be as active or ambitious as they would
like. Putin hoped ISAF would succeed in Afghanistan. He was
most vehement when discussing Ukraine, which he insisted has
the ability to pay for the gas it imports from Russia, but is
not doing so. President Medvedev is due to make a state
visit here in April. END SUMMARY.


2. (C) Lisbet Zilmer-Johns, Senior Advisor in the Prime
Minister's Office, gave Pol-EconCouns a readout November 4 of
Prime Minister Lars Loekke Rasmussen's November 2 visit to
Moscow at the invitation of his Russian counterpart Vladimir
Putin. She said it was a good visit that demonstrated Russia
and Denmark have reset their relationship, which had soured
in 2002 when Denmark allowed Chechens - "not terrorists" - to
hold a conference here. Then-President Putin had cancelled a
state visit here in retaliation, and there had been no
substantive bilateral meeting at leader level since then. A
September 16 telephone conversation broke the ice, with
Rasmussen indicating that a decision was imminent on the
proposal to run the proposed Russian-German Nord Stream gas
pipeline through Danish territorial waters. That decision,
which Zilmer-Johns insisted was "administrative, not
political," was duly made in the affirmative and announced by
the Danish Energy Agency on October 20. On October 1, the
Danish firm DONG Energy had reached a deal with Gazprom to
buy an additional one billion cubic meters of Russian gas per
year for 18 years and transport it through that pipeline.
This, Zilmer-Johns noted, will allow DONG to export gas from
the North Sea to the UK, Sweden and the Netherlands. The
discussion of gas triggered Putin's greatest vehemence,
regarding Ukraine, which he accused of not paying its gas
bills even though it had the ability to pay.


3. (C) Economic development was clearely Putin's focus. He
was very keen for cooperation with Danish firms in many
areas, notably energy (including wind and energy efficiency).
He seemed interested to hear details of Russian bureaucratic
obstacles to investment.


4. (C) On Afghanistan, Putin expressed support for ISAF and
international engagement, hoping the coalition would be
successful. He was sorry about the coalition's losses.
This, Zilmer-Johns said, was a welcome change in attitude:
previously, the Danes had sensed a certain Russian pleasure
in U.S. and allied casualties. This was no longer the case;
Moscow perceives that Chechen separatists receive Taliban
support from safehavens in Pakistan.


5. (C) Arctic cooperation was discussed. The Russian side
made clear its position that the five Arctic littoral
countries should lead. The Russians were pleased with the
Ilulissat agreement of June 2008, that overlapping claims be
resolved on the basis of international law of the seas and
international agreements.


6. (C) On climate change, Rasmussen did get Putin's promise
to be personally engaged, but the Russian was short on
specifics and did not promise to attend COP-15 personally.
The Danes came away with the sense that Russia "needs to
raise its ambitions" but probably will not, as it is way
ahead of its Kyoto target: emissions are down 30 percent
from 1990 due to economic collapse. At least the tone has
changed, Zilmer-Johns observed: a few months ago (when
Climate Minister Hedegaard visited Moscow) the Russians were
openly skeptical that climate change was an issue, but now
they seem to be convinced it is real. The Danes expect
Russia probably will not cause trouble at COP-15, as Russian
Ambassador to Denmark Teymuraz Ramishvili assured the local
media.


7. (C) President Medvedev is due to make a state visit to
Denmark in April 2010. Apart from its symbolic significance,
the visit will focus on commercial and cultural ties.
Zilmer-Johns explained that the two countries share a long
history of relations. The last czar's mother was a Danish
princess; she fled at the revolution and returned to Denmark
where her brother the king gave her a palace. Many members
of the Russian royal family moved here. A couple of years
ago, the czarina's body was returned to Russia and interred
with great pomp beside that of her husband in Saint
Petersburg.


8. (C) Zilmer-Johns credited the U.S. reset of ties with
Russia with facilitating Denmark's own reset. She commented
that NATO SecGen (and ex-PM of Denmark) Anders Fogh Rasmussen
had also helped by prioritizing the strengthening of
NATO-Russia relations.
FULTON