VZCZCXRO7818
PP RUEHBZ RUEHDBU RUEHDU RUEHGI RUEHJO RUEHLN RUEHMA RUEHMR RUEHPA
RUEHPOD RUEHRN RUEHROV RUEHSK RUEHTRO RUEHVK RUEHYG
DE RUEHMO #1825/01 1961129
ZNR UUUUU ZZH
P 151129Z JUL 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4268
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUCNCIS/CIS COLLECTIVE

UNCLAS SECTION 01 OF 02 MOSCOW 001825 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON ETRD EPET EMIN RS XA EG WA NI AO
SUBJECT: RUSSIA'S RETURN TO AFRICA 
 
REF A: Abuja 1171 
REF B: Windhoek 235 
 
¶1. (SBU) Summary: President Medvedev's June trip to Africa marked 
Russia's attempt to "return" to Africa and increase economic ties 
after a period of relative inactivity on the continent following the 
collapse of the Soviet Union.  Medvedev visited Egypt, Nigeria, 
Namibia, and Angola June 23-27, accompanied by representatives of 
Russian businesses, especially those in the energy and mining 
industries.  In Cairo, Medvedev also took on the MEPP, addressing 
the Arab League and highlighting Russia's historic friendship with 
the Muslim world. Medvedev's effort stands in contrast to his 
predecessor, Prime Minister Putin, who spent little time in Africa 
during his eight years as President.  Medvedev conceded that his 
trip may have come "too late" for Russia to gain access to the 
continent's significant natural resources.  End summary. 
 
---------------- 
It's the Economy 
---------------- 
 
¶2. (SBU) President Dmitry Medvedev visited Egypt, Nigeria, Namibia, 
and Angola June 23-27 on his first official trip to Africa.  The 
visit commenced Russia's "return to Africa" after almost two decades 
of inactivity following the collapse of the Soviet Union.  Medvedev 
was accompanied by a 400-person delegation that included the 
Ministers of Natural Resources, Justice, and Energy, as well as the 
heads of Rosatom, the state-owned nuclear corporation, and LUKoil. 
Medvedev commented June 27 that he believes Russian companies should 
compete with other multinational corporations in Africa, emphasizing 
that economic competition is desirable.  The purpose of the trip was 
largely to further Russia's economic ties with African states, which 
corroborates our previous reporting which noted Russia-Africa 
relations are primarily economic.  Medvedev said, however, that the 
leaders also discussed "how to position the African continent in the 
international arena." 
 
¶3. (SBU) On his first stop, Medvedev met with Egyptian President 
Hosni Mubarak.  The leaders agreed that negotiations on the 
Israeli-Palestinian conflict should reconvene as soon as possible. 
Medvedev said on his video blog that the two leaders also discussed 
economic cooperation, but did not specify which fields.  In Nigeria, 
his next stop, Medvedev met with President Umaru Yar'Adua, and the 
Russian delegation discussed cooperation in the oil and gas 
industry.  Medvedev said on his video blog that Russia "must play an 
active role on different continents" or risk not being a major 
player in the oil and gas industry.  The leaders signed six new 
agreements on cooperation, including in the oil and gas field (ref. 
A).  Gazprom and NNPC, Nigeria's state-run company, signed a USD 2.5 
billion deal to create the joint company NiGaz.  The firm will build 
refineries, pipelines, and gas power stations.  (Note: the firm's 
name, a combination of Nigeria and gas, has caused controversy in 
the press and in the blogosphere, for its resemblance to a racial 
epithet. End note.) 
 
¶4. (SBU) Medvedev met with President Hifikepunye Pohamba of Namibia 
June 25-26.  According to a presidential aide, Sergei Prikhodko, the 
leaders discussed cooperation on electricity projects because 
Namibia currently imports almost all of its electricity from South 
Africa.  The leaders signed a variety of agreements, including one 
regarding hydrocarbon exploration between Gazprom and Namcor, the 
National Petroleum Cooperation of Namibia (ref. B).  Local press 
reported that Russian businesses have shown growing interest in 
Namibia's natural resources such as diamonds, natural gas, coal, 
silver, gold, and uranium.  Russia-Namibia bilateral trade turnover 
in 2008 was $6.35 million, which Prikhodko said indicated room for 
growth.  Medvedev also invited Pohamba to visit Russia. 
 
¶5. (SBU) On his last stop, Medvedev met with President Jose Eduardo 
dos Santos of Angola.  The leaders discussed Russian investment in 
mining, power, transportation, telecommunications, education, 
healthcare, and military and technical cooperation projects in 
Angola.  The leaders also reportedly discussed how oil prices are 
determined in the international market and how the system could be 
improved, which was unsurprising given that Angola is currently 
chairing OPEC.  Medvedev told journalists after the meeting that 
"the oil market should not depend on the situation in one economy." 
Medvedev also invited Santos to visit Russia. 
 
-------------------------- 
In President Obama's Wake? 
-------------------------- 
 
¶6. (SBU) Medvedev delivered his first speech to the Arab League in 
Cairo June 24.  Medvedev said that regional and sub-regional groups, 
such as the Arab League, BRIC, and the Shanghai Cooperation 
Organization, are increasing in importance because today's "global 
mechanisms are not in balance."  He said that he envisions "a new 
and fair world order" that, for the first time in centuries, fully 
 
MOSCOW 00001825  002 OF 002 
 
 
reflects the world's diversity. 
 
¶7. (SBU) Medvedev outlined Russia's policy on the 
Israeli-Palestinian conflict, calling for an end to the occupation 
of Palestinian and other Arab land.  He said that any solution must 
guarantee free access to Jerusalem's holy sites for followers of 
Islam, Christianity, and Judaism.  Medvedev spoke of longstanding 
traditions of friendship between Russia and the Arab world.  Russia 
does not need to seek friendship with the Muslim world, he said, 
because Russia and its 20 million Muslim citizens are an organic 
part of that world.  He reported that Russia's trade turnover with 
the Arab League is almost USD 10 billion, but noted that there is 
room for more cooperation in the future. 
 
¶8. (SBU) Local press noted that Medvedev's address to the Arab 
League took place shortly after President Obama's June 4 Cairo 
speech, but did not receive as much media attention.  RIA Novosti 
commentator Maria Appakova said that Medvedev's comment about Russia 
not needing to seek friendship with the Muslim world was a reference 
to President Obama's Cairo speech earlier that month.  Appakova said 
that Medvedev was suggesting that, unlike the U.S., Russia does not 
need to mend troublesome relations with the Muslim world. 
 
-------------- 
New Beginnings 
-------------- 
 
¶9. (SBU) Medvedev's four-stop visit to Africa is a departure from 
his predecessor's administration.  During his eight years as 
president, Vladimir Putin spent very little time in Africa, only 
visiting South Africa, Morocco, and Egypt.  Medvedev commented June 
27 to reporters that work with Russia's African partners should have 
begun sooner.  He conceded that his trip may have come "too late" 
for Russia to gain access to the continent's vast natural resources. 
  "Our policies here will be very friendly, but at the same time 
pragmatic," Medvedev said. 
 
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Comment 
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¶10. (SBU) Medvedev's comments reflect the GOR's belief that business 
is done by governments.  Russian companies, including its oil and 
gas giants, have a legitimate interest in pursuing opportunities 
abroad, while given state control and influence over many of these 
companies, they are ill-equipped to deliver substantial benefits to 
partners, even in Africa.  Other than political support from the 
GOR, Gazprom, for example, is in no position to compete with major 
western international oil and gas companies in helping Nigeria 
develop its oil and gas sector.  We are therefore not convinced that 
many of the agreements and "deals" reached on this trip will result 
in much economic benefit to either side.  Even in Africa, the most 
meaningful deals should be those that offer the best economic 
returns. 
 
BEYRLE