RUSSIAN INVESTMENT; RESPONSE TO C-CI9-01825

C O N F I D E N T I A L MAPUTO 001311 SIPDIS E.O. 12958: DECL: 10/20/2019 TAGS: PREL PGOV RS MZ SUBJECT: RUSSIAN INVESTMENT; RESPONSE TO C-CI9-01825 Classified By: Charge d'Affaires Todd C.Chapman, Reasons 1.4(b+d) ¶A. (C) IS THERE A RUSSIAN TRADE REPRESENTATION IN YOUR COUNTRY? No. PolOff met in October at the Russian Embassy with Nikolay Esipenko, Second Secretary. According to Esipenko, Russia has little active economic interest in Mozambique; its focus is in Angola and in South Africa. ¶B. (C) WHAT MAJOR RUSSIAN COMPANIES OPERATE IN YOUR COUNTRY AND IN WHAT BUSINESS SECTORS? None. Fishing vessels such as F/V Atiyah and F/V Izmailovo ply Mozambican waters. Esipenko indicated that some small private mining may consider beginning inquiries as to business opportunities. ¶C. (C) HOW MUCH REVENUE ARE RUSSIAN COMPANIES BRINGING IN? Not known. ¶D. (C) HOW MUCH RUSSIAN INVESTMENT IS OCCURRING; IN WHAT SECTORS; IS IT GROWING? Esipenko said there was essentially no Russian investment in Mozambique. As he put it, Russian companies, particularly those interested in natural resources, are more likely to obtain profits by exploiting opportunities in Russia. ¶E. (C) IS YOUR COUNTRY ACTIVELY SEEKING RUSSIAN INVESTMENT AND/OR RUSSIAN TOURISM? Yes. Although actively, may be something of a misnomer. Mozambique has not made Russian investment in tourism a priority. Esipenko stated that Mozambique would be quite happy were Russian tourists to visit or Russian travel firms to invest in its tourist industry, but that there was little interest by Russian travelers or companies. ¶F. (C) ROUGHLY HOW MANY RUSSIAN CITIZENS RESIDE IN YOUR COUNTRY? Esipenko declined to provide exact figures, but estimated that there are fewer than 1,500 Russians in Mozambique, adding that most happened to be here at the time of Russia,s economic collapse and chose to remain. CHAPMAN