NORWEGIAN PM STOLTENBERG'S MEETINGS WITH MEDVEDEV

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 001332 SIPDIS E.O. 12958: DECL: 05/21/2019 TAGS: PREL PGOV ENRG EINV NO RS SUBJECT: NORWEGIAN PM STOLTENBERG'S MEETINGS WITH MEDVEDEV AND PUTIN REF: A. MOSCOW 1120 ¶B. MOSCOW 743 Classified By: Political M/C Alice G. Wells for reasons 1.4 (b) and (d) . Summary -------------- ¶1. (C) On May 19, Norwegian PM Stoltenberg met separately with Putin and Medvedev for "friendly talks." The discussions focused on cooperation on the Far North and energy, but were not detailed. To the Norwegian delegation's surprise, neither Putin nor Medvedev raised contentious issues like NATO. Stoltenberg said Norway would consider Medvedev's energy security proposals, but refused to engage Russia on the South Stream gas project. Putin changed his approach on the dispute between Norway's Telenor and Russian oligarch Mikhail Fridman's Alfa Group over telecom assets, saying that the GOR had no role to play, although he bristled when a reporter insinuated that corruption played a role in the case. While Medvedev and Putin voiced their desire to cooperate with Norway, this view may not be shared at all levels of the GOR. End Summary. Friendly Talks -------------- ¶2. (C) In his one day visit to Russia May 19, Norwegian Prime Minister Jens Stoltenberg held "forthright" and "friendly" talks with both President Medvedev and Prime Minister Putin, focused on cooperation in the Far North and on energy. According to Norwegian Ambassador Knut Hauge, "Russia chose not to bring up contentious issues," only mentioning NATO in passing and not raising relations with Georgia or Ukraine. The agenda was also very narrow and did not include the Middle East peace process or other international themes. Hauge told us that Norway had braced for the worst, as First Deputy Prime Minister Viktor Zubkov, who had visited Oslo last week, had taken a hard-line on many points. Medvedev accepted Stoltenberg's invitation to visit Norway next year. Cooperation in the Far North -------------- ¶3. (C) On the Far North, Hauge said there was a general discussion with both Putin and Medvedev on the situation around the Svalbard archipelago and the need for cooperation between the Norwegian coast guard and the Russian fishing fleets. Hauge noted that Russia and Norway were now talking the "same language" on delimiting their special economic zones, but still lacked an agreement on where to draw the line. He said that neither side possessed the political will and that no timetable had been set to move this issue to a conclusion. Gas --- ¶4. (C) Both Putin and Gazprom CEO Alexei Miller assured Stoltenberg that Shtokman would be completed on time (with deliveries starting in 2014) and raised Norwegian participation in Central Asian gas projects (read South Stream). Hauge said that the Norwegian side did not counter Putin's optimistic assessment on Shtokman and chose not to take the bait in the "debate on Nabucco versus South Stream," letting the matter drop. Medvedev also raised his energy security proposal (Ref A) with Stoltenberg. Stoltenberg replied that Norway, which like Russia has not ratified the existing energy charter treaty, was interested and would consider it. Telenor/Alfa Group: Changed approach -------------- ¶5. (C) Putin addressed the ongoing dispute between Norwegian telecom company Telenor and Russian oligarch Mikhail Fridman's Alfa Group over Vimpelcom, Russia's second largest cellular service provider, in a much different tone (Ref B). In place of a strident defense of Russian corporate interests, Putin said that "the Russian government had no interest" in the case, and "we are not shareholders." In reply to a Norwegian reporter who insinuated that there was an "element of corruption" in how the Russian courts had handled the matter, he said that "we are interested in ensuring that foreign investors feel comfortable in the Russian economy..." and noted the importance of the rule of law. Hauge paraphrased Putin's private comments that Mikhail Fridman was lobbying him to take sides in the dispute. Putin said that "foreigners were an easy target" for the GOR, MOSCOW 00001332 002 OF 002 implying that it was okay to give Telenor a hard time with its Vimpelcom investment. (Note: This directly contradicts Putin's public statement about making foreign investors "comfortable" in Russia. End note.) Hauge observed Medvedev seemed unfamiliar with the details of the case: Medvedev called the situation "unfortunate" and told his staff to advise Alfa Group to seek a resolution. Comment -------------- ¶6. (C) While official Russian documents call for "partner-like" cooperation with Norway, it has taken some time for the words and tone to match the intent. However, as the visit of Deputy PM Zubkov to Oslo demonstrated, Russian subordinates may continue to play bad cops to Putin's and Medvedev's recently adopted roles of good cops, in an effort to seek greater concessions from Norway on Russian energy and business interests. BEYRLE