HIGH-LEVEL RUSSIAN BUSINESS DELEGATION TO

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 000575

SIPDIS

NSC FOR MCFAUL, ELLISON; DEPT FOR EUR/RUS; DOC FOR BROUGHER

E.O. 12958: DECL: 03/10/2019
TAGS: ECON EFIN ETRD RS
SUBJECT: HIGH-LEVEL RUSSIAN BUSINESS DELEGATION TO
WASHINGTON LOOKING TO MAKE AN IMPACT

Classified By: Ambassador John R. Beyrle for Reasons 1.4 (b/d)

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Summary
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1. (C) In a March 10 meeting with the Ambassador, Russian
businessman Viktor Vekselberg, who is heading a high-level
Russian business delegation to Washington this week, said the
GOR had attached great importance to the delegation and its
reception. The Ambassador responded that the timing was
ideal and offered the delegation an opportunity to advance
relations and to ease concerns that the GOR would use the
crisis to advance state control of the economy. Vekselberg
suggested that both the U.S. and Russia look for ways to
signal their intention to work together on economic issues.
The Ambassador agreed and noted in that regard that a clear,
senior GOR message of intent on WTO accession would be
helpful. The Ambassador added that the two governments were
discussing a revived economic dialogue, to include a linked
business-to-business component. Vekselberg agreed it should
be linked and accepted the Ambassador's invitation to meet
after the delegation's return to discuss next steps. End
Summary

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Russian Business Delegation
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2. (C) Vekselberg told the Ambassador he had discussed the
visit of the delegation (which is also headed by Aleksander
Shokhin, the president of RSPP, Russia's largest business
organization) with both National Security Advisor Prihodko
and Foreign Minister Lavrov. Although the delegation was
private, he said both of the senior GOR officials had
stressed its importance as the first high-level Russian
delegation to visit Washington since President Obama's
inauguration. Vekselberg said they had expressed their hope
that the delegation would receive access in Washington
commensurate with its importance.


3. (C) The Ambassador said we shared the GOR's view of the
importance of the visit. Moreover, the timing of the trip
was ideal -- coming on the heels of Secretary Clinton,s
meeting with Lavrov and in advance of President Obama's
meeting with President Medvedev next month in London. Both
governments were working hard to take advantage of the
opportunity before us to improve relations. However, the
Ambassador noted one timing problem: the Administration was
new and not all of the key positions that such a delegation
would normally meet with, such as the U.S. Trade
Representative and the Secretary of Commerce, had been
confirmed. This could affect which meetings the delegation
received.

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Bilateral Economic and Commercial Relations
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4. (C) The Ambassador said Secretary Clinton and Lavrov had
discussed bilateral economic cooperation in Geneva and
suggested that the delegation would find a receptive audience
in Washington for the Russian business community's views on
the economic crisis in Russia and the outlook for the Russian
economy. In particular, he said there was a concern in
Washington that the crisis could lead to greater state
control over the economy and a further delay in needed market
reforms.


5. (C) Vekselberg said he would offer his own personal views
on the subject in Washington, namely that the crisis would
not result in greater state control of the economy.
Government and business have a close relationship but also a
constructive one. He added that the government had resources
with which to counter the crisis for the time being but that
ultimately Russia's economic fate was tied to the global
economy. Russia was primarily an exporter of raw materials
and its economy would not recover until world demand for
commodities rose.


6. (C) Vekselberg added that in his view, it was important
that the U.S. and Russia send the world a signal about their
improving relations. To that end, he suggested that we find
one or two bilateral economic and commercial issues on which

MOSCOW 00000575 002 OF 002


we could find early agreement. In that regard, he suggested
that repeal of Jackson-Vanik would send a particularly strong
message. In addition, he noted that it was important for the
U.S. and Russia to find common ground, including in opposing
protectionism, as the international community wrestled with
reforming the global financial architecture.


7. (C) The Ambassador agreed that we should look for
concrete, practical steps that could grow bilateral
commercial relations to the extent that they became a "shock
absorber" for problems elsewhere in the relationship. He
stressed that the U.S. economy would remain open and noted
that the new Administration, as had its predecessors, favored
repeal of Jackson-Vanik. However, this required broad
congressional support, which would take time. Russia's WTO
accession was also clearly in both countries' interest, and
it would be helped by a clear message from the GOR that
Russia was committed to membership.

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Dialogue
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8. (C) The Ambassador said the two governments were also
discussing how to revive the economic dialogue that we began
last year, and which was to have had a business-to-business
component and a government-to-government channel. The B2B
dialogue need not be under the G2G, but there should be a
formal link through which its recommendations were passed to
the governments. He added that it was important that the B2B
dialogue be as inclusive as possible.


9. (C) Vekselberg responded that on the Russian side, the
RSPP-Chamber of Commerce dialogue was inclusive and was
coordinated with the GOR. He agreed that the B2B process,
while independent, should be linked to a G2G dialogue. In
that regard, he noted that the two organizations were
preparing a joint statement and said he would share it in
advance with the Ambassador. He also accepted the
Ambassador's invitation to meet after the delegation
returned, for an informal discussion of practical steps that
could be taken to improve bilateral economic and commercial
relations.

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Comment
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11. (C) The RSPP delegation presents another opportunity to
advance U.S.-Russian relations that we should seize now, as
Russia looks to improve relations on a number of fronts.
Vekselberg and his fellow oligarchs may have lost a lot of
wealth the last six months, but they still have influence in
Moscow and remain one of the key elite blocs supporting
Russia's further international economic integration and
further market reforms. Washington's message to the
delegation should focus on the importance of finding common
ground on Russia's WTO accession, which would provide
critical momentum in the economic basket of bilateral issues,
and on efforts to combat the financial crisis, including
future reforms. We recommend this delegation be received at
high levels in the Administration to underscore these points.
End Comment.

BEYRLE