UNITED RUSSIA UNVEILS "RUSSIAN CONSERVATISM,"

C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 002882

SIPDIS

E.O. 12958: DECL: 11/25/2019
TAGS: PREL PGOV PMAR PHUM PINR ECON EFIN RS
SUBJECT: UNITED RUSSIA UNVEILS "RUSSIAN CONSERVATISM,"
TANDEM PLAYS PUBLIC ROLES WELL

REF: A. MOSCOW 2841

B. MOSCOW 2782

C. MOSCOW 2781

D. MOSCOW 2779

Classified By: DCM Eric Rubin; reasons 1.4(b/d).


1. (C) Summary: United Russia's national and regional leaders
met in St. Petersburg November 20-21 for their annual review
of party business. The highlights of the congress were the
November 21 addresses by President Medvedev and Prime
Minister Putin. Medvedev praised United Russia for acting
quickly upon the initiatives he put forward in 2008, while
charging the party to commit to open debates with opposition
parties. He emphasized that United Russia should use its
influence as the "governing" party not to ensconce itself in
power but to serve citizens. Putin's address was all meat
and potatoes, showcasing his United Russia-led government's
success in combating the economic crisis and the steps it
would take to improve citizens' quality-of-life. He made
only a passing reference to Medvedev's call for
modernization, noting instead the huge sums his government
had already devoted to high-tech development throughout the
country. Gryzlov's unveiling of the party's new ideology -
"Russian conservatism" - was more a justification for the
phrase in the context of Medvedev's modernization theme than
an explanation of what it means for the party. Medvedev and
Putin were at ease with one another throughout the congress,
with Medvedev nodding approvingly when Putin and Gryzlov were
speaking. End Summary.

Warm-Up Act: Medvedev Praises, Chastises
--------------


2. (C) President Medvedev delivered a succinct assessment of
United Russia's record of governance November 21 to its party
leaders and foreign political and diplomatic guests. After
lauding the party's role in guiding Russia through the worst
of the economic crisis, he turned to the modernization themes
outlined in his annual address to the nation (Refs B and C).
He called for an economic "reset" in which corruption would
give way to a restructured, competitive economy exporting
Russian high-tech products to the world.


3. (C) More significant was Medvedev's admonition to the
party not to stagnate, but to embrace debate, democracy and
change in order to serve Russia's citizens. He called for
United Russia to forego use of the extensive administrative
resources at its disposal and not to fear candid discussion
with (Kremlin-sanctioned) opposition parties. United Russia
officials in the regions especially, he said, should "seek
victory in the open battle of ideas." Being the party in
power brings with it responsibilities to be an instrument to
help citizens meet life's challenges, including
modernization, the President concluded.

Putin Takes Credit for Success, Ladles Out More Money
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4. (C) During his speech Putin made it clear that the party's
duty was to fulfill government objectives, the most important
being to help Russians weather the economic crisis. The hall
burst into the first of many ovations when he reminded the
audience that at the 2008 party congress he had taken
personal responsibility for this task, and with the help of
United Russia, had succeeded in preserving citizens' savings,
stabilizing the ruble, and meeting all obligations to those
dependent on government assistance. On his (and United
Russia's) watch, the tragedy of the 1991 and 1998 economic
crises would never be repeated, he stated to resounding
applause. Of course other parties also want what is best for
the country, he conceded, but only United Russia has been
able to deliver.


5. (C) Making the dubious connection between the policies
implemented under United Russia's (and his) stewardship of
all levels of government, Putin gave a passing nod to the
modernization program outlined by Medvedev in his poslaniye
(Ref A). Yet, he then enumerated the kind of high-tech
investment in educational, health and research facilities and
in infrastructure development "not just in Moscow and St.
Petersburg, but throughout the country" that he had overseen
as Prime Minister. Putin argued that over a year ago the
crisis had already put an end to the idea that Russia could
rely on energy and raw materials exports, and that he was
already implementing the new path he and the party had

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charted. The message was clear: the Putin-led, United Russia
managed government is already engaged in concrete steps to
move Russia forward, notwithstanding any new ideas or
proposals about modernization.


6. (C) Putin outlined a series of steps his government would
take to boost domestic industry while also benefiting
consumers. Having outlined the problems of "monogorods"
(single-industry towns) and of the automobile industry, he
promised a government subsidy of 50,000 rubles to each
Russian trading in a vehicle 10 years or older to purchase a
new car, of foreign or domestic make, as long as it is
produced in Russia. He described the problems in the
construction sector and the lack of affordable housing and
promised to quadruple government support as a way to lower
mortgage interest rates, to stimulate building and to give
young families the opportunity to own homes. He pledged to
increase pensions by 46 percent in 2010, and he pledged
additional funding to the military. The buzz in the hall
among delegates, among journalists and average Russians with
whom we spoke was mainly about these bread and butter
proposals.

Gryzlov: Conservatism, Solid Leaders; Populist Opposition
-------------- --------------


7. (C) Boris Gryzlov, Duma Speaker and Chairman of the
party's executive committee, reprised his 2008 role as party
heavy. He lauded the party's success and criticized the U.S.
for the dominant role its financial rating agencies play in
the world which adversely affects Russian companies. He also
complained that global financial markets do not include the
ruble in an international basket of reserve currencies. When
he said United Russia would engage in debates with the
opposition in spite of it being "weak and immature," Putin
turned to Medvedev and extended his hand to him (interpreted
as congratulations that the party had adopted one of the
president's suggestions); a beaming Medvedev shook it
enthusiastically as the hall erupted in applause. Gryzlov
capped his presentation by officially unveiling the party's
new ideology - "Russian conservatism." The philosophy's
basic principles and argument for its compatibility with
"modernization" are that the party will "create the new (to
meet modern challenges) while preserving the best (of the
past)."


8. (C) Independent sociologist (and now United Russia
strategist) Olga Kryshtanovskaya told us immediately after
the speeches that she was satisfied with how Gryzlov had
presented the new ideology, which both she and Deputy Chief
of the Presidential Administration Vladislav Surkov had
helped craft (Ref D). She was particularly pleased with how
Gryzlov had balanced modernization and "conservatism."
Effective Politcs Foundation President Gleb Pavlovskiy,
himself involved in developing the new ideology, argued to us
that "conservatism" was not at all at odds with Medvedev's
modernization theme. It would provide the needed "historical
and cultural" context for economic modernization.

Comment: Tandem on Display: Pie in Sky vs. Cabbage on Table
-------------- --------------


9. (C) As an opportunity to witness possible public fissures
between Medvedev and Putin, the United Russia Congress was a
non-event. Putin reinforced his strength while conveying to
his elite supporters that he remains in firm command,
deserving of their continued loyalty. Pavlovskiy told us
immediately after the speeches that Medvedev and Putin
displayed that they complement one another. Medvedev is
fulfilling his role as president: as a long-range thinker,
the guarantor of the Constitution responsible for fair
elections and a level playing field for all political
parties. Putin demonstrated that he is taking care of the
economic interests of citizens, businesses and siloviki
supporters. Kryshtanovskaya told us that both Medvedev and
Putin had played their respective roles "brilliantly," and
that the demonstration of presidential approval of Gryzlov's
official endorsement of debates with opposition parties had
been "executed perfectly." Gryzlov atoned for his poor
management of the car tax issue (Ref A).


10. (C) Though rumors of personal and policy differences
between their teams persist, Medvedev and Putin turned in
another public display of ease with one another. Medvedev's
slap on the hand to regional leaders for over-zealous use of
administrative resources means little now, and will mean

MOSCOW 00002882 003 OF 003


nothing in months ahead if those same United Russia officials
stonewall the opposition on media coverage of debates. In
doling out federal funds to the regions, Putin exercises
greater real influence than Medvedev. The congress left the
executive leadership of the party largely untouched,
displacing no war-horses such as Moscow Mayor Luzhkov or
Tatarstan President Shaimiyev, while bringing aboard
powerhouses such as Russian Chamber of Commerce Chairman
Shokhin and St. Petersburg Mayor Matviyenko. In spite of
Medvedev's call for United Russia to be an instrument for
helping citizens realize their own interests, the congress
proved once more that the party is Putin's instrument to be
used to advance his present and future goals.
Beyrle