VZCZCXRO8359
RR RUEHLN RUEHPOD RUEHYG
DE RUEHVK #0135/01 3450416
ZNR UUUUU ZZH
R 110416Z DEC 07
FM AMCONSUL VLADIVOSTOK
TO RUEHC/SECSTATE WASHDC 0850
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEHUL/AMEMBASSY SEOUL 0262
RUEHKO/AMEMBASSY TOKYO 0121
RUEHBJ/AMEMBASSY BEIJING 0274
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHVK/AMCONSUL VLADIVOSTOK 0919

UNCLAS SECTION 01 OF 02 VLADIVOSTOK 000135 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON RU
SUBJECT: VISALESS IN SEATTLE 
 
VLADIVOSTO 00000135  001.2 OF 002 
 
 
¶1.  (SBU) Summary.  Vladivostok Consul General Tom Armbruster's 
trip to Seattle last week provided a chance to encourage 
American companies to take advantage of an improved business 
climate and new opportunities in the Russian Far East.  Seattle 
is already deeply involved in Russia through trade, cultural 
contacts, and NGO partnerships, but some U.S. companies remain 
on the sidelines due to the reputation the Far East gained in 
the 1990s as a place where a lot of money could be lost very 
quickly.  CG met with businessmen, addressed the Seattle 
political crowd at the Foundation for Russian-American Economic 
Cooperation (FRAEC) annual gala, attended a press conference 
announcing the return of direct flights between the U.S. and the 
Russian Far East, and spoke at a reception at the Russian 
Consulate.  The trip was marred by Russia's cancellation of 
FRAEC President and Founder Carol Vipperman's Russian visa.  End 
summary. 
 
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No Explanation for Visa Cancelation 
------------------------- 
 
¶2.  (SBU) Officials at the Russian Consulate in Seattle informed 
CG Armbruster that they had received an order from Moscow to 
cancel the visa of FRAEC Director Carol Vipperman, but had so 
far refused to sign it to protest the "insult" to one of 
Russia's most ardent and committed partners.  CG met with Acting 
Consul General Dmitriy Vinogradov, who said he would convey to 
Moscow CG's annoyance.  Vinogradov urged Armbruster to meet with 
the FSB in Vladivostok to determine why Vipperman had been 
targeted.  Another consular official said the move was "not 
logical."  Vipperman has been traveling to Russia for years on 
behalf of a number of programs, including the Nuclear Cities 
Initiative and in recent years as President of FRAEC.  Her 
organization has just been awarded a three-year grant to develop 
the city-to-city program "U.S.-Russian Far East Municipal 
Partnership," aimed at capacity-building at the local government 
level.  While the program can be administered by FRAEC staff and 
contractors, Vipperman's personal involvement is important. 
 
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Other Links Taking Off 
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¶3.  (U) Vladivostok Avia has announced plans to inaugurate 
direct flights between the RFE and Alaska beginning July 7.  The 
twice-weekly flights between Petropavlovsk-Kamchatskiy and 
Anchorage on brand-new 142-seat Tupelov-204 aircraft will 
operate only during the summer season, through September 15. 
Vladivostok Avia officials say they believe many public 
officials, businessmen, and tourists will use the flight 
"connecting the booming Russian Far East" with the closest U.S. 
state.  As with all travel in the region, these flights will not 
be cheap.  Round trips will cost 1,890 USD for economy tickets 
and 3,690 USD for business class.  (Note: These prices are 
roughly equivalent to those Khabarovsk-based Dalavia was 
considering before it abandonded plans to fly the same route 
earlier this year.  Currently the only way to fly on one carrier 
between the RFE and the U.S. is via Korean Air (from 
Vladivostok) or Asiana (from Khabarovsk or Yuzhno-Sakhalinsk); 
both require a layover, overnight for East bound travelers, in 
Seoul.  Based on the Consulate's experience, the price of an 
advance-purchase economy ticket on Korean Air from Vladivostok 
to Los Angeles ranges between 1,500 and 2,000 USD.  Vladivostok 
Avia's flights will thus be competitive for those wishing to fly 
directly to Alaska, but will not likely be able to compete with 
the Korean carriers for onward travel to the Continental U.S. 
End note.) 
 
¶4.  (U) FRAEC hosted an annual dinner and commemoration of the 
bicentennial of U.S.-Russian diplomatic relations on December 
4..  Former Washington Secretary of State Ralph Munro was the 
Master of Ceremonies for the 150 or so guests.  Munro, who his 
Order of Friendship medal from the Russian Federation, thanked 
many participants for their years of service in bringing the 
U.S. and Russia closer together.  CG Armbruster and Acting 
Russian CG Vinogradov delivered keynote remarks.  Armbruster 
told the group that this is the best time since 1998 to do 
business in the Russian Far East, and he listed the many 
opportunities that the region's governors provided in advance 
specifically for the FRAEC assembly.  Participants viewed a 
seven-minute music and photograph collection featuring 
highlights of the Vladivostok Consulate's 15-year modern 
history, assembled by the Consulate's Public Affairs Staff. 
Vinogradov talked about the big picture in U.S.-Russian 
relations, from Kosovo to missile defense, and stressed that it 
is natural for two great countries to have differences, but the 
differences need to be discussed with mutual respect. 
Vinogradov previously served in San Francisco and this is his 
second tour in Seattle.  His son is attending university in 
 
VLADIVOSTO 00000135  002.2 OF 002 
 
 
Washington and has married an American citizen.  Vinogradov also 
hosted a reception later in the week in the impressive Consulate 
mansion. 
 
¶5.  (U) CG Armbruster held separate meetings at the U.S. 
Commercial Service offices with a half-dozen U.S. companies 
interested in doing businessin the Russian Far East, including a 
firm looking to buy a dry dock in Russia, several international 
shipping companies, a wood processing firm, and commercial 
fishing enterprises.  CG has provided FCS in Vladivostok with 
all contact information and is working to follow up with the 
firms.  The Russian Trade Representative at the Russian Embassy 
in Washington, D.C., Andrey Dolgorukov, also attended the events 
and was upbeat about the prospects for more trade and business. 
CG also met with U.S. District Court Judge John Coughenour, who 
worked for many years on judicial training programs in Russia, 
and will be making a trip to the RFE in the spring. 
 
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Comment 
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¶6.  (SBU) The two-steps-forward, one-step-back pattern in 
U.S.-Russian relations is as evident in this region as it is in 
Moscow.  A possible step forward may present itself this week 
when Primorye Governor Sergei Darkin travels to Washington, 
D.C., to promote his region and attract U.S. investment.  While 
the general trend is in the right direction, it is obvious that 
there are some who resist every step forward.  Post appreciates 
the Embassy's and Department's support in getting FRAEC 
President Vipperman back into the good graces of the Russian 
government to allow her to continue to advance programs that 
provide real benefits for Russian citizens, while advancing the 
goals of U.S. foreign policy in the Russian Far East. 
ARMBRUSTER