KURGAN-LAND THAT TIME FORGOT

UNCLAS SECTION 01 OF 02 YEKATERINBURG 000063

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV ECON RS
SUBJECT: KURGAN-LAND THAT TIME FORGOT

REF: YEKAT 27

Sensitive But Unclassified. Not For Internet Distribution.


1. (SBU) Political/Economic officer and Political/Economic
assistant traveled to Kurgan September 9-10 to assess the
political climate ahead of the October 11 municipal elections.
They met with Rotary Club members, an opposition city duma
deputy, a Soldiers' Mothers activist, a Golos representative,
and the campaign director for commercially sponsored candidates,
and toured the Women's Crisis Center and a drug/alcoholism
rehabilitation center. Kurgan has the most seats up for
election of any region in our consular district - some 3,525,
including Kurgan city mayor - so will be the most interesting to
watch this election cycle. Political apathy, however, is
palpable.


2. (U) Economically, Kurgan - which is a perennial net recipient
of revenues from the federal government - may be faring better
than its neighbors which have been net donors. The absence of a
vibrant industrial sector may be helping Kurgan through the
crisis - with most employment in the agricultural and government
sectors, Kurgan does not face the vicious cycle of reduced
employment and personal spending leading to further cuts in
production and retail. In April, Governor Bogomolov told the
media that Kurgan lacks energy supplies and an adequate sewer
system, and these factors inhibit the possibility of economic
growth. We certainly saw no signs of new construction or
businesses, and one of our contacts described the oblast as
"twenty years behind the rest of Russia." Kurgan may feel more
of an impact in 2010 as reduced tax revenues mean decreased
returns from the central government to the regions.


3. (U) The sphere of social services is a bright light in the
gray landscape. The idea of a crisis center to assist battered
women first appeared in 2004 as a result of Kurgan's sister-city
relationship with Appleton, Wisconsin. After visiting
Appleton's family crisis hotline in 2004, Alla Vladimirova set
up a telephone hotline with financial assistance and advice from
Appleton. Today the Crisis Center offers a 24 hour hotline,
training for city and oblast professionals, counseling by
psychologists and psychiatrists, and a residence center (with
165 beds) for children of families in difficult situations. The
Center is financed totally by the oblast and works closely with
the Social Services Department and militia. Their future plans
include opening a shelter for women, establishment of a website
and on-line consultations, and a training program for
volunteers.


4. (U) In 2002, a Kurgan city duma deputy visited Appleton and a
New Life drug rehab center. On her return she established a New
Life drug and alcohol treatment center in Kurgan, partly as a
way to help her son, who is a drug addict. New Life works
closely with the government's HIV/AIDS center. Over 3,900
people are officially registered as drug addicts in the oblast
and have no future as they cannot be hired by state owned
enterprise or educational institutions, and cannot obtain a
driver's license. The Center engages in active outreach to
inform the community of the dangers of drug and alcohol use in
an effort to prevent addictions. Volunteers of all ages help,
including recovering addicts and specialists from the HIV/AIDS
Center. They lecture at schools, universities, summer camps,
and stage public events in towns to get the message out. If
found by the militia, drug addicts are arrested and sent for
treatment or to prison, depending on the quantity of drugs in
their possession.


5. (U) According to our contacts, the HIV infection rate in
Kurgan oblast is 265 per 100,000, and said to be 80 per cent
higher than the average for Russia. Sexual transmission is
thought to be the main means of transmission. Those suffering
from HIV/AIDS who officially register (there are 345 officially
registered) receive monthly drug therapy free of charge, at a
cost of RR 20,000-30,000. So far the economic crisis has not
led to cuts in this program, although prison hospitals cannot
afford to stock adequate supplies of medicine. HIV/AIDS tests
are obligatory for teachers, doctors, military conscripts, and
patients scheduled for surgery. Legal migrants are required to
test negative for HIV to enter Russia, but illegal migration is
a factor in the spread of HIV/AIDS in the oblast. The rate of
tuberculosis infection is said to be 300 per 100,000, the
highest in Russia.


6. (SBU) The number one topic of discussion was the Kurgan city
mayoral election of October 11. Incumbent Kurgan mayor
Yelchaninov, in power for 21 years, bowed out of this year's
election and speculation over why he is quitting politics and
who his successor will be ran rampant. Our contacts speculated
that Yelchaninov is out of favor with United Russia (UR) because
his family business (managed by his son) has conflicts of
interest with municipal management. The family business owns

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the majority of gas stations in the city and has monopoly
control over gas pricing; it also owns shares in the municipal
transport company, and a construction company that has won most
major contracts for municipal housing construction. Other
contacts believe the long-running conflict on budget issues
between oblast governor Bogomolov and Yelchaninov is the reason.
Kurgan city contributes about 50 percent of the oblast tax
income and Yelchaninov has struggled with oblast officials over
the years to get higher rates of reimbursement to the city.
Bogomolov, who is seen as influential in UR, might have been
angling for Yelchaninov's dismissal. Yelchaninov supporters and
detractors characterize him as an experienced manager and savvy
politician who has lost support in recent years. Kurgan has the
city manager form of local government, so the new mayor will be
chosen from among the city duma deputies. UR, Liberal
Democrats, and Just Russia are fielding candidates for the duma
seats.


7. (U) The upcoming appointment of a new governor caused less
excitement. The term of Governor Oleg Alekseyevich Bogomolov
(59),first elected in 1996, expires in December 2009.
Candidates suggested to President Medvedev by the Kurgan branch
of United Russia are incumbent governor Bogomolov, and State
Duma deputies Igor Barinov and Vyacheslav Timchenko. When asked
to comment why Igor Barinov, the chief of the Urals
interregional coordination council of United Russia, was put on
the list, political expert Mikhail Korabelnikov said the move
was meant to show that Barinov is a promising political figure
although probably still too weak to get the post. Timchenko
heads the committee on natural resources and utilization and is
said to have ownership interests in an oil company in Tyumen.
Some observers say Timchenko would not accept the post even if
offered, because he has no financial interests to further in
Kurgan. Speculation is that since Bogomolov was one of the
first to support extension of the presidential term of office,
he may have the edge over Barinov.


8. (SBU) Conclusion: Despite the pre-election rumor mill and
speculation, there are few outward signs of an impending
election. What few campaign banners we saw were for United
Russia as a movement, and not for individual candidates. Since
the mayor is selected by the city duma, the population seems to
be feeling isolated from the elections. The opposition is
represented by independent candidates who have not formed a
coalition and it is almost certain that UR will win by a large
majority in Kurgan and smaller towns where the administrative
resource advantage will benefit UR to an even greater degree.
Although the population might be tired of the current
administration, many feel stability is better than change. Once
again, this time in the sphere of social services, we have seen
what it is possible to accomplish working with instead of
against the authorities.
SANDUSKY