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DE RUEHMO #1423/01 1521046
ZNR UUUUU ZZH
P 011046Z JUN 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 3561
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEHVK/AMCONSUL VLADIVOSTOK PRIORITY 3249
RUEHYG/AMCONSUL YEKATERINBURG PRIORITY 3604
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEANAT/NASA WASHDC
RUEKJCS/SECDEF WASHDC
RUEAHQA/HQ USAF WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 05 MOSCOW 001423 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EUR/RUS AND OES/SAT (RCLORE) 
STATE PLS PASS USTR FOR EHAFNER 
COMMERCE FOR ITA/MAC (MEDWARDS, JTHOMPSON, JBROUGHER) 
 
E.O. 12958: N/A 
TAGS: TSPA TSPL PREL ECON KPAO ECIN TNGD PGOV RS
 
SUBJECT:  GLONASS DEPLOYMENT HAS FULL RUSSIAN GOVERNMENT SUPPORT 
 
REF: (A) STATE 14881 (B) 08 MOSCOW 1233 (C) 07 MOSCOW 1637 
 
MOSCOW 00001423  001.2 OF 005 
 
 
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Summary 
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¶1.   (SBU) At the third International Satellite Navigation Forum in 
Moscow from May 12-13, Russian officials took pains to demonstrate 
high-level government support for the previously behind-schedule 
Russian Global Navigation Satellite System (GLONASS).  They assured 
the thousand plus government and industry attendees from twenty-five 
countries of continued Russian government funding, that GLONASS will 
have global coverage as planned by 2012, and encouraged the business 
community to develop GLONASS-compatible products in order to benefit 
Russia's innovative economy.  USG speakers urged GLONASS 
compatibility and interoperability with the U.S. Global Positioning 
System (GPS) and encouraged expanded worldwide cooperation through 
the International Committee on Global Navigation Satellite Systems 
(ICG), a voluntary United Nations-backed association that will hold 
its fourth major meeting in St. Petersburg in September.  Russian 
government speakers echoed these same points during the forum, in 
contrast to the Russian Federal Space Agency Roscosmos's May 13 
proposal that the Russian government ban, or raise customs duties, 
on imported cars lacking GLONASS.  Russian government forum 
participants also did not refer to the May 6 recommendation by major 
Russian telecom conglomerate Sistema that the government mandate 
GLONASS or dual GLONASS-GPS chips in all cellphones.  USG officials 
also briefed engineering students at Moscow's prestigious Bauman 
Institute on U.S. GPS policies.  End Summary. 
 
--------------------------------------------- ----- 
BIG RUSSIAN GOVERNMENT NAMES AND CROWDS AT PLENARY 
--------------------------------------------- ----- 
 
¶2. (SBU) Russia's third International Satellite Navigation Forum, 
held in Moscow's Expocenter from May 12-13, 2009, attracted more 
than a thousand government and industry representatives from 
twenty-five countries and featured a resounding endorsement of the 
GLONASS system by Russian leaders.  Deputy Prime Minister Sergey 
Ivanov attended in person, giving a dynamic keynote address in which 
he underscored Russia's commitment to achieving worldwide GLONASS 
coverage by 2012.  (Embassy note:  Ivanov was a disappointing 
no-show at last year's forum (Ref B).  In January 2009, he publicly 
lambasted the "ineffective" management of the GLONASS program, 
expressing personal dissatisfaction with the limited availability of 
GLONASS services and equipment on the domestic or foreign market. 
End Note.)  In a clear show of state support, Ivanov determinedly 
assuaged concerns that the GLONASS program was falling behind 
schedule, and likely to take a financial hit during the budget 
crisis.  Ivanov pledged repeatedly in his speech that the Russian 
government remained committed to "full funding" for the federal 
GLONASS program and "full support" for all federal high-tech 
manufacturers and Russian manufacturers of high-tech equipment. 
Despite the current financial crisis and ensuing budget cutbacks, 
Ivanov insisted that 2009 budgeted funds for GLONASS development 
would be "fully preserved." 
 
¶3.  (SBU) Anatoliy Perminov, head of Roscosmos, Russia's Federal 
Space Agency, described to plenary attendees GLONASS's "special 
place" among Russia's significant innovation projects.  Its success 
remains Russia's highest priority because its implementation is an 
important part of the national infrastructure, supporting both 
national security and national economic development.  He pledged 
that GLONASS's basic civilian signal will remain available for 
civilian use, free of charge, with no restrictions, and not liable 
to "sequestration" (i.e. jamming) by the military. 
 
¶4.  (SBU) Perminov recounted that since Roscosmos launched the first 
six non-prototype (Block IIa) satellites in 1985-86, it has improved 
time and frequency standards and increased frequency stability. 
According to both Ivanov and Perminov, GLONASS's current 20 
satellites provide 100 percent navigation coverage for Russian 
territory and 98 percent worldwide coverage, with up to ten-meter 
accuracy.  Only 18 of the 20 satellites need to be operational to 
provide continuous service.  In 2009, Russia plans to put 6 more 
"GLONASS M" model satellites into orbit (Block 40, numbers 30-31-32, 
and Block 41, numbers 33-34-35), elevating the GLONASS network above 
the 24 satellite minimum needed for full global coverage and making 
 
MOSCOW 00001423  002.2 OF 005 
 
 
GLONASS service "more precise, accessible and reliable."  Perminov 
explained that in 2010, Roscosmos will continue testing its new 
generation of "GLONASS-K" model satellites that include improved 
features, comparable to "the best in the world," such as a 
guaranteed 15-year lifespan, a twofold increase in signal accuracy, 
and reduced weight.  By 2011, the GLONASS network will reach 30 
satellites and will be complete. 
 
¶5.  (SBU) Nikolay Testoyedov, Director General of Reshetnev 
Informational Satellite System Company, a Roscosmos contractor, 
confirmed that two relay satellites will be launched in 2010-2011 
that will allow high-precision (greater than one-meter accuracy) 
GLONASS signals to be received throughout Russia as of 2011. 
(Embassy note:  It was not clear whether Testoyedov was referring to 
the expected development of a Russian satellite-based augmentation 
system similar to the FAA's Wide Area Augmentation System (WAAS) 
which provides enhanced accuracy for aircraft users.  End Note). 
Luch-5A is expected to be launched in December 2010, Luch-5B in 
December 2011.  Testoyedov mentioned that as of 2013, GLONASS 
satellites would be launched from Russia's Plesetsk spaceport, 
rather than from Baikonur in Kazakhstan. 
 
¶6.  (SBU) During the May 12 press conference at the forum, Anatoliy 
Shilov, a deputy head of Roscosmos, announced that the Russian 
government plans to spend an additional 63 billion rubles 
(approximately 970 million U.S. dollars) on GLONASS over the next 
three years.  (Embassy note:  The Russian government allocated 4.7 
billion rubles (170 million USD) in 2006, 9.9 billion rubles (360 
million USD) in 2007, 10.3 billion rubles (322 million USD) in 2008 
on the GLONASS program.  Putin signed a directive on September 12, 
2008 allocating an additional 2.6 billion U.S. dollars to get full 
GLONASS deployment back on track.  End note.)  Addressing industry 
concerns about GLONASS's future, Yuriy Urlichich, General Director 
of Federal State Unitary Enterprise "Russian Institute of Space 
Device Engineering (FSUE RISDE), one of the creators of GLONASS, 
proclaimed that the GLONASS signal would continue to be provided to 
the international community "free of charge."  Now that the crisis 
period for GLONASS was over, Urlichich stated that the expected 
federally-targeted program for "GLONASS development for 2012-20" 
will provide for GLONASS's continued modernization. 
 
---------------------------------- 
Compatibility with GPS and Galileo 
---------------------------------- 
 
¶7.  (SBU) At the invitation of the Vladimir Klimov, Chief Executive 
Officer of the GLONASS/GNSS Forum Association, Ray Clore from the 
State Department's Oceans Environment and Science Bureau spoke to 
plenary attendees on "U.S. Space-Based Positioning, Navigation and 
Timing (PNT) Policy and International Cooperation.  USAF LtCol 
Timothy Lewallen, Acting Chief, PNT Operations Division, 
Headquarters, Air Force Space Command, described the "Current Status 
of GPS."  Both Clore and Lewallen emphasized the key U.S. policy 
goal of seeking to ensure that international navigation systems such 
as GLONASS are compatible with/do not interfere with U.S. civil GPS 
signals and that they are completely interoperable with GPS, so that 
global civil users get better capabilities than relying on only one 
signal or service.  Pieter De Smet, from the European Commission, 
briefed on the EU's action plan for its Galileo GNSS system. 
 
¶8.  (SBU) Russian government speakers echoed that they seek 
compatibility and interoperability.  Citing the enormous potential 
of Russian technology sector, and over ten years experience in 
making the GLONASS satellite system available to the general public, 
Ivanov reaffirmed the government's commitment to making GLONASS 
"complementary" to GPS, Galileo, and other Global Navigation 
Satellite Systems (GNSS)systems under development.  Ivanov added 
that when GLONASS is combined with GPS, users get more accurate and 
more reliable navigation service.  Ivanov stressed Russia's 
international efforts, noting that Russia is "heavily engaged with 
experts from the United States, EC and European Space Agency" and 
has ten bilateral agreements with other partner countries to develop 
space and space-based navigation agreements.  Emphasizing that 
Russia was ready to expand its cooperation with all foreign 
partners, Ivanov announced that Russia would chair the Fourth 
International Committee on Global Navigation Satellite Systems (ICG) 
in St. Petersburg in September where he hoped the parties could 
achieve a "mutually beneficial" single standard for open accessible 
 
MOSCOW 00001423  003.2 OF 005 
 
 
signals.  Only by working together, Ivanov added, could the 
international community improve quality of life in the areas of 
transportation, logistics and navigation.  Perminov also confirmed 
that Russia will continue to expand international cooperation to 
achieve interoperability. 
 
¶9.  (SBU) Boasting that "our GLONASS is as good as GPS," Urlichich 
warned audience members against relying solely on GPS as "it does 
not always work perfectly due to its complicated signal construction 
technology."  While pointing out that GLONASS had the advantage of a 
higher quality signal in densely populated metropolitan areas, 
Urlichich praised the "extremely successful" search and rescue 
efforts of more than 25,000 individuals using combined GLONASS/GPS 
signals.  In his view, GPS and GLONASS were intentionally built "not 
to interfere with each other."  He urged industry to continue to 
develop receivers capable of receiving more than one system calling 
the combined multisystem approach "much more robust" than just GPS 
reliance.  Urlichich saw mutual acceptance of the interoperability 
of both GLONASS and GPS as the goal of the 4th ICG in St. 
Petersburg. 
 
--------------------------------------------- --------- 
Government Progress but Limited Commercial Availability 
--------------------------------------------- --------- 
 
¶10.  (SBU) In January 2009, Deputy Prime Minister Ivanov complained 
that the government's success in developing the orbiting cluster of 
GLONASS satellites and ground control centers had gotten far ahead 
of the consumer's ability to purchase navigation equipment. 
Roscosmos chief Perminov echoed these concerns at the forum.  He 
announced that there are currently only 27 types of GLONASS-related 
civilian equipment on the market, as well as 33 "samples or sample 
systems" in development.  Although Perminov asserted that GLONASS 
was launched specifically for consumer use (Embassy note: GLONASS 
was originally devised for military use.  End note), he lamented 
that the breadth of product availability on the domestic or foreign 
market was far from sufficient to satisfy need/demand.  Dozens of 
Russian and international high-tech companies displayed their wares 
at the Forum, such as combined GPS-GLONASS receivers, in the two 
large exhibition halls. 
¶11.  (SBU) Meanwhile, the government was doing its part, under 
strong federal navigation laws, to equip all forms of state-owned 
transportation in Russia with GLONASS navigation systems by 2011. 
Perminov reported that to date the Ministry of Transportation had 
equipped 17 percent of government-owned aircraft, 27 percent of 
government-owned automobiles, and 35 percent of government-owned 
railroad cars with GLONASS devices.  Deputy Minister of 
Transportation Vyacheslav Zabelin mentioned that 85 percent of 
government-owned passenger vehicles, in the Moscow region were 
already equipped with GLONASS navigation devices, and that 
considerable progress had been made in other urban hubs, such as 
Mozhaisk and Special Economic Zone Dubna.  The government was also 
in the process of implementing remote monitoring of utility and 
hazmat vehicles using GLONASS.  Roscosmos and the Ministry of 
Transportation are actively working together to prepare to use 
GLONASS as the main platform for the 2014 Winter Olympics in Sochi. 
Perminov urged the business audience to do its part to help make 
GLONASS available for all consumers by 2020.  (Embassy Note: Russian 
Government Directive 641, adopted on August 25, 2008, "recommends" 
that all government agencies and local authorities use GLONASS or 
dual GLONASS/GPS devices.  Deputy PM Ivanov has highlighted the 
Russian government's priority to equip all federal means of 
transportation with GLONASS by 2010.  End Note.) 
¶12.  (SBU) Pavel Sozinov, First Deputy General Designer and Deputy 
General Director, OJSC "Concern PVO "Almaz-Antey" spoke about the 
prospects for future sales of consumer navigation equipment of 
system GLONASS.  He said that Russia will have spent 341.5 billion 
rubles (approximately 10.7 billion USD) cumulatively by the end of 
2011 on the research and development for civilian navigation 
equipment and next generation components with the goal of opening up 
a larger market for sale of a wider variety of personal navigation 
devices (phones, compasses, loggers, taggers, watches, etc).  Most 
of the approximately 30 navigation devices being produced are on a 
mass scale for federal aviation and automotive purposes.  But he 
predicted there would be over 350 products available on the market 
by 2011.  He attributed this increase in commercial availability to 
the law on navigation activities signed by President Medvedev on 
February 14, 2009 that mandates the use of navigation systems 
 
MOSCOW 00001423  004.2 OF 005 
 
 
(unspecified) for some civilian uses as of January 1, 2011, 
including for the transportation of passengers, hazardous materials, 
and cargo.  By 2015, Sozinov hopes to see 8 million navigation 
devices worldwide using GLONASS or a combined GLONASS/GPS signal. 
To reach this end, Sozinov called on the Russian government to 
reduce taxation and increase loan availability for producers of 
navigation devices negatively affected by the dynamic and fickle 
market in 2009. 
--------------------------------------------- --------- 
USG Speakers Well-Received at Forum and Bauman Institute 
--------------------------------------------- --------- 
 
¶13.  (SBU) Experts from more than twenty private firms led smaller, 
less formal discussions on the use of satellite navigation in 
aviation, space, sea/river transport, surveying and construction, 
railway transport, and motor transport.  During these sessions, USG 
official speakers Clore and Lewallen had the opportunity to exchange 
in useful dialogue with Russian counterparts and to hear reactions 
and comments on their presentations.  Russian governmental reps were 
very positive about the need for continued bilateral cooperation and 
also expressed interest in learning more about U.S. multilateral 
efforts in Asia and Africa.  Russian business interlocutors  were 
very supportive of the need for system interoperability with GPS. 
They were also extremely interested in learning more about the U.S. 
National Space-Based PNT Organizational Structure, specifically the 
existence in the U.S. of an Advisory Board consisting of members of 
industry who work closely with the various governmental agencies to 
make the GPS system more user-friendly.  Russian producers of 
satellite navigation equipment are clearly anxious to play a similar 
role here influencing policymakers on GLONASS. 
 
¶14.  (SBU) Aleksander Syomkin, president of satellite navigation 
company "Navigator" and a forum presenter, privately complimented 
Clore and Lewallen on their informative speeches.  In his public 
address, Syomkin voiced concerns that GLONASS is potentially 
vulnerable to hackers, exposing the Russian government to possible 
military and economic threats.  Syomkin speculated that the Russian 
government, particularly the military, might soon feel compelled to 
encrypt or limit GLONASS signals to civilians to minimize security 
threats.  This would hamper business and commercial development of 
equipment.  Syomkin advocated that Russia's satellite navigation 
industry take responsibility of developing and promoting only top 
quality GLONASS and dual GLONASS-GPS products that will safeguard 
government security. 
 
¶15.  (SBU) On May 13, following the forum, Statement Department GPS 
expert Clore addressed a group of university students at the 
prestigious Bauman Institute, also known as Moscow State Technical 
University, which specializes in training of scientists and 
engineers.  Echoing his conference themes, Clore spoke on the status 
of GPS and U.S. bilateral and international diplomatic efforts.  The 
audience of Russian engineering students, several of whom expressed 
a desire to pursue careers in satellite navigation, was interested 
to learn about the non-competitive nature of GPS, the U.S. 
commitment to maintaining its free signal, and various U.S. 
bilateral and multilateral diplomatic efforts to ensure that other 
GNSS systems do not interfere with GPS.  The discussion, which also 
included Air Force Space Command's Lt. Col. Lewallen, prompted 
follow-up questions on GPS funding levels, GPS accuracy, frequency 
of GPS navigator updates, and overlapping frequencies for current 
and developing GNSS systems.  One student asked whether it might 
ever be possible to combine the current four major systems into one 
global system.  He and the other Bauman students were unaware of the 
considerable national pride and financial commitments reflected in 
the development of the various GNSS systems. 
 
--------------------------------------------- --------- 
Proposed Mandatory GLONASS Use in Car Imports and Phones 
--------------------------------------------- --------- 
 
¶16.  (SBU) Coinciding with the close of the forum, Roscosmos chief 
Perminov proposed in a May 13 letter to the government that the 
import of automobiles not equipped with GLONASS or combination 
GLONASS/GPS receivers should be prohibited, or at a minimum that the 
customs duties should be raised several times.  "Only that way can 
the national market and Russian producers be protected," Perminov 
warned.  Although GLONASS use is legally required for all 
state-owned vehicles by 2011, no government plans have been 
 
MOSCOW 00001423  005.2 OF 005 
 
 
announced to make the system mandatory for private vehicles. 
 
¶17.  (SBU) In a similarly protectionist recommendation, head of 
telecom conglomerate AFK Sistema Vladimir Yevtushenkov, urged the 
Russian government on May 6 to require that all mobile phones and 
other gadgets sold in Russia contain chips that are compatible with 
both GLONASS and GPS.  He suggested offering devices which allowed 
consumers to switch to GLONASS alone once it becomes fully 
operational in 2010.  The Russian government has made no public 
comment on this specific proposal and its feasibility other than 
making its "full support" for Russian satellite navigation industry 
evident at the forum. 
 
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Comment 
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¶18.  (SBU) Perminov's and Yevtushenkov's protectionist comments seem 
out of sync with DPM Sergey Ivanov's more liberal economic vision of 
interoperability and enhanced international cooperation in global 
navigation systems.  Although many Russian government speakers at 
the forum paid lip service to U.S. themes of compatibility and 
interoperability for GPS and GLONASS, recent circulating proposals 
indicate a strong protectionist undercurrent in the domestic telecom 
industry and at Roscosmos.  It is not clear whether these views will 
hold sway with the government where hopes are very high that Russian 
GLONASS, now providing full Russian coverage, can compete 
internationally with the U.S. GPS, make inroads in developing 
markets, and boost Russia's innovative economy. 
 
 
¶19.  (U) This cable was cleared by OES Ray Clore.