Identifier
Created
Classification
Origin
09STPETERSBURG48
2009-04-22 08:18:00
UNCLASSIFIED
Consulate St Petersburg
Cable title:  

AMBASSADOR BEYRLE MEETS WITH ST. PETERSBURG GOVERNOR

Tags:  RS ASCH BTIO ECON EINV 
pdf how-to read a cable
R 220818Z APR 09
FM AMCONSUL ST PETERSBURG
TO SECSTATE WASHDC 2752
INFO AMEMBASSY MOSCOW 
AMCONSUL ST PETERSBURG 
AMCONSUL VLADIVOSTOK 
AMCONSUL YEKATERINBURG
UNCLAS ST PETERSBURG 000048 


E.O. 12958: N/A
TAGS: RS ASCH BTIO ECON EINV
SUBJECT: AMBASSADOR BEYRLE MEETS WITH ST. PETERSBURG GOVERNOR
MATVIYENKO

UNCLAS ST PETERSBURG 000048


E.O. 12958: N/A
TAGS: RS ASCH BTIO ECON EINV
SUBJECT: AMBASSADOR BEYRLE MEETS WITH ST. PETERSBURG GOVERNOR
MATVIYENKO


1. (SBU) Summary: In their first official meeting together,
the Ambassador and Governor Matviyenko discussed the economic
crisis, U.S. investment, international relations, and various
housekeeping issues related to the Consulate. The meeting was
cordial and Governor Matviyenko was clearly willing to engage on
the issues.


2. (SBU) Matviyenko was upbeat on St Petersburg's economic
development, despite the economic crisis, and said that the city
government had paid substantial attention to small and medium
business development and was continuing to do so during the
crisis. She was particularly proud that the city's budget
situation is better than had been expected several months ago
when the crisis first began to bite, with revenues higher than
expected. She partly credited this good news with lowered taxes
on small and medium-sized business, which had encouraged their
growth and led to the increase in city tax revenues. Matviyenko
also stated the city's unemployment rate had not increased
dramatically, and that it was still less than 1%.


3. (SBU) Governor Matviyenko was upbeat about American
investments in St. Petersburg, stating they had grown by 5% over
the past year and are now worth $2.3 billion - putting the U.S.
in 6th place among the city's foreign investors. She identified
information technology as an area for future American
investments, as the city is creating a new special economic zone
with an IT technology park to encourage outside investment. The
Ambassador noted the important role played by U.S. business and
reminded the Governor of their first brief conversation at the
opening of GM's $300 million plant near St Petersburg last
November.


4. (SBU) Matviyenko shared her personal observations about the
ongoing relationship between the U.S. and Russia. She had
traveled to the U.S. about 30 years ago with a group of young
Soviet leaders, and said she was disappointed that the cold war
mentality she saw in the U.S. then has persisted to this day.
She noted that on her most recent trip to the U.S. in 2005, many
people asked her the same questions which they had asked long
ago with the same underlying premise that Russia was an enemy
power. As further examples of cold war attitudes continuing to
influence U.S foreign policy vis-a-vis Russia, she cited both
the Jackson-Vanik amendment and the ongoing difficulties
associated with Russia's accession to the WTO. The Ambassador
underscored the importance of both sides working to expand
cooperation, keep differences in perspective, and help dispel
outdated Cold War notions of one another.


5. (SBU) The Ambassador thanked the Governor for her decisive
role in identifying a new site for the Anglo-American school.
Matviyenko told the Ambassador that the legal process needed for
the school project to move forward would be completed within 10
days. (Note: The decision was made within three days. We're
grateful.) The Ambassador also raised city plans to redesign the
street where the Consulate is located and expressed our concern
that the planned changes would infringe on Consulate security.
The Governor promised to look into changing the city's plans.
(Note: She has already made good on this promise as well) The
Ambassador and Matviyenko agreed to keep each other informed on
developments surrounding the June 5-8 St. Petersburg Economic
Forum, including with respect to the composition of the official
U.S. delegation.

GWALTNEY