Identifier
Created
Classification
Origin
09MOSCOW1824
2009-07-15 11:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Moscow
Cable title:  

RUSSIA'S RETURN TO AFRICA

Tags:  PREL ECON ETRD EPET EMIN RS XA EG WA NI AO 
pdf how-to read a cable
VZCZCXRO7807
PP RUEHBZ RUEHDBU RUEHDU RUEHGI RUEHJO RUEHLN RUEHMA RUEHMR RUEHPA
RUEHPOD RUEHRN RUEHROV RUEHSK RUEHTRO RUEHVK RUEHYG
DE RUEHMO #1824/01 1961122
ZNR UUUUU ZZH
P 151122Z JUL 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4266
RUEHZO/AFRICAN UNION COLLECTIVE
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUCNCIS/CIS COLLECTIVE
UNCLAS SECTION 01 OF 02 MOSCOW 001824 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON ETRD EPET EMIN RS XA EG WA NI AO
SUBJECT: RUSSIA'S RETURN TO AFRICA

REF A: Abuja 1171
REF B: Windhoek 235

UNCLAS SECTION 01 OF 02 MOSCOW 001824

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON ETRD EPET EMIN RS XA EG WA NI AO
SUBJECT: RUSSIA'S RETURN TO AFRICA

REF A: Abuja 1171
REF B: Windhoek 235


1. (SBU) Summary: President Medvedev's June trip to Africa marked
Russia's attempt to "return" to Africa and increase economic ties
after a period of relative inactivity on the continent following the
collapse of the Soviet Union. Medvedev visited Egypt, Nigeria,
Namibia, and Angola June 23-27, accompanied by representatives of
Russian businesses, especially those in the energy and mining
industries. In Cairo, Medvedev also took on the MEPP, addressing
the Arab League and highlighting Russia's historic friendship with
the Muslim world. Medvedev's effort stands in contrast to his
predecessor, Prime Minister Putin, who spent little time in Africa
during his eight years as President. Medvedev conceded that his
trip may have come "too late" for Russia to gain access to the
continent's significant natural resources. End summary.

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It's the Economy
--------------


2. (SBU) President Dmitry Medvedev visited Egypt, Nigeria, Namibia,
and Angola June 23-27 on his first official trip to Africa. The
visit commenced Russia's "return to Africa" after almost two decades
of inactivity following the collapse of the Soviet Union. Medvedev
was accompanied by a 400-person delegation that included the
Ministers of Natural Resources, Justice, and Energy, as well as the
heads of Rosatom, the state-owned nuclear corporation, and LUKoil.
Medvedev commented June 27 that he believes Russian companies should
compete with other multinational corporations in Africa, emphasizing
that economic competition is desirable. The purpose of the trip was
largely to further Russia's economic ties with African states, which
corroborates our previous reporting which noted Russia-Africa
relations are primarily economic. Medvedev said, however, that the
leaders also discussed "how to position the African continent in the
international arena."


3. (SBU) On his first stop, Medvedev met with Egyptian President
Hosni Mubarak. The leaders agreed that negotiations on the
Israeli-Palestinian conflict should reconvene as soon as possible.

Medvedev said on his video blog that the two leaders also discussed
economic cooperation, but did not specify which fields. In Nigeria,
his next stop, Medvedev met with President Umaru Yar'Adua, and the
Russian delegation discussed cooperation in the oil and gas
industry. Medvedev said on his video blog that Russia "must play an
active role on different continents" or risk not being a major
player in the oil and gas industry. The leaders signed six new
agreements on cooperation, including in the oil and gas field (ref.
A). Gazprom and NNPC, Nigeria's state-run company, signed a USD 2.5
billion deal to create the joint company NiGaz. The firm will build
refineries, pipelines, and gas power stations. (Note: the firm's
name, a combination of Nigeria and gas, has caused controversy in
the press and in the blogosphere, for its resemblance to a racial
epithet. End note.)


4. (SBU) Medvedev met with President Hifikepunye Pohamba of Namibia
June 25-26. According to a presidential aide, Sergei Prikhodko, the
leaders discussed cooperation on electricity projects because
Namibia currently imports almost all of its electricity from South
Africa. The leaders signed a variety of agreements, including one
regarding hydrocarbon exploration between Gazprom and Namcor, the
National Petroleum Cooperation of Namibia (ref. B). Local press
reported that Russian businesses have shown growing interest in
Namibia's natural resources such as diamonds, natural gas, coal,
silver, gold, and uranium. Russia-Namibia bilateral trade turnover
in 2008 was $6.35 million, which Prikhodko said indicated room for
growth. Medvedev also invited Pohamba to visit Russia.


5. (SBU) On his last stop, Medvedev met with President Jose Eduardo
dos Santos of Angola. The leaders discussed Russian investment in
mining, power, transportation, telecommunications, education,
healthcare, and military and technical cooperation projects in
Angola. The leaders also reportedly discussed how oil prices are
determined in the international market and how the system could be
improved, which was unsurprising given that Angola is currently
chairing OPEC. Medvedev told journalists after the meeting that
"the oil market should not depend on the situation in one economy."
Medvedev also invited Santos to visit Russia.

--------------
In President Obama's Wake?
--------------


6. (SBU) Medvedev delivered his first speech to the Arab League in
Cairo June 24. Medvedev said that regional and sub-regional groups,
such as the Arab League, BRIC, and the Shanghai Cooperation
Organization, are increasing in importance because today's "global
mechanisms are not in balance." He said that he envisions "a new
and fair world order" that, for the first time in centuries, fully

MOSCOW 00001824 002 OF 002


reflects the world's diversity.


7. (SBU) Medvedev outlined Russia's policy on the
Israeli-Palestinian conflict, calling for an end to the occupation
of Palestinian and other Arab land. He said that any solution must
guarantee free access to Jerusalem's holy sites for followers of
Islam, Christianity, and Judaism. Medvedev spoke of longstanding
traditions of friendship between Russia and the Arab world. Russia
does not need to seek friendship with the Muslim world, he said,
because Russia and its 20 million Muslim citizens are an organic
part of that world. He reported that Russia's trade turnover with
the Arab League is almost USD 10 billion, but noted that there is
room for more cooperation in the future.


8. (SBU) Local press noted that Medvedev's address to the Arab
League took place shortly after President Obama's June 4 Cairo
speech, but did not receive as much media attention. RIA Novosti
commentator Maria Appakova said that Medvedev's comment about Russia
not needing to seek friendship with the Muslim world was a reference
to President Obama's Cairo speech earlier that month. Appakova said
that Medvedev was suggesting that, unlike the U.S., Russia does not
need to mend troublesome relations with the Muslim world.

--------------
New Beginnings
--------------


9. (SBU) Medvedev's four-stop visit to Africa is a departure from
his predecessor's administration. During his eight years as
president, Vladimir Putin spent very little time in Africa, only
visiting South Africa, Morocco, and Egypt. Medvedev commented June
27 to reporters that work with Russia's African partners should have
begun sooner. He conceded that his trip may have come "too late"
for Russia to gain access to the continent's vast natural resources.
"Our policies here will be very friendly, but at the same time
pragmatic," Medvedev said.

--------------
Comment
--------------


10. (SBU) Medvedev's comments reflect the GOR's belief that business
is done by governments. Russian companies, including its oil and
gas giants, have a legitimate interest in pursuing opportunities
abroad, while given state control and influence over many of these
companies, they are ill-equipped to deliver substantial benefits to
partners, even in Africa. Other than political support from the
GOR, Gazprom, for example, is in no position to compete with major
western international oil and gas companies in helping Nigeria
develop its oil and gas sector. We are therefore not convinced that
many of the agreements and "deals" reached on this trip will result
in much economic benefit to either side. Even in Africa, the most
meaningful deals should be those that offer the best economic
returns.

BEYRLE