C-CI9-01825 RUSSIAN BUSINESS PRESENCE IN MAURITANIA

C O N F I D E N T I A L NOUAKCHOTT 000613

SIPDIS

E.O. 12958: DECL: 09/23/2014
TAGS: BBSR ECON EINV MR PINR
SUBJECT: C-CI9-01825 RUSSIAN BUSINESS PRESENCE IN MAURITANIA

REF: A. STATE 088241

Classified By: CDA DENNIS HANKINS, REASON 1.4 B AND D


1. (C). As requested in REFTEL, Embassy Nouakchott reviewed
current Russian business interests in Mauritania:


A. Russia does not have a trade representative or office in
Mauritania, and has no plans to establish such an office in
the near future. There is an agreement between the Russian
agency responsible for fisheries and the Mauritanian Ministry
of Fisheries to facilitate trade and training in the
Mauritanian fishing sector.


B. There is currently an agreement for onshore exploration
of oil and natural gas fields in Mauritania with the
British-Russian group IPG (International Petroleum Group).
IPG has a concession to conduct surveys of hydrocarbon
resources in the interior of Mauritania, and there are about
a dozen Russian geologists working on this project. This is
currently the only sizeable Russian business investment in
Mauritania.


C. Rough estimates of Russian trade for 2008 indicate Russia
imported between USD 20-30 million of fish products from
Mauritania. Russia exported between USD 10-15 million of
Russian products to Mauritania, predominantly large
industrial machinery for use in the mining and petroleum
exploration industries.


D. Russian investment in Mauritania has been minimal. The
Russian Embassy claims trade has been fairly static, with no
planned expansion. They also played down the role of Russian
investments in the natural gas and petroleum industries. A
senior contact in the Mauritanian Ministry of Petroleum and
Energy indicated that Gazprom is interested in investing in
the natural gas industry and that the number two executive of
Gazprom will soon be visiting Mauritania to discuss
investment opportunities. This contact confidentially said
there have been talks to have President Medvedev visit
Mauritania to discuss expanded Russian investment in
Mauritanian hydrocarbon industries. (Comment: As the
Mauritanian Ministry of Petroleum and Energy struggles to
find investors in the energy field, it is not uncommon for
the Ministry to broadcast an overconfident estimate of
petroleum reserves and international interest in Mauritanian
investments, therefore such pronouncements cannot be
confirmed as more than rumor at this time. End Comment


E. The Mauritanian Ministry of Petroleum and Energy is
actively seeking international investment from many players,
including Russia. There have been no efforts to develop a
tourism industry specifically for Russian citizens.


F. During the Cold War, Russia had an active scholarship
program to educate Mauritanian doctors and engineers in the
Soviet Union. Russia still grants about 8-10 annual
scholarships for graduate studies in Russia. As a result,
approximately 150-200 Russian citizens reside in Mauritania,
mostly spouses and children of Mauritanian citizens who
studied in the USSR. There are less than 20 full-time
Russian residents in Mauritania engaged in business
interests.
HANKINS