VZCZCXRO0875
PP RUEHLN RUEHVK RUEHYG
DE RUEHMO #3012/01 3550838
ZNR UUUUU ZZH
P 210838Z DEC 06
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5987
INFO RUEHTA/AMEMBASSY ASTANA 0023
RUEHLN/AMCONSUL ST PETERSBURG 3645
RUEHVK/AMCONSUL VLADIVOSTOK 1819
RUEHYG/AMCONSUL YEKATERINBURG 2076

UNCLAS SECTION 01 OF 03 MOSCOW 013012 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ETRD RS
SUBJECT: Novosibirsk:  United Russia Stronghold With High 
Tech Hopes 
 
Summary 
----------- 
 
¶1. (SBU) United Russia's (YR) dominance in Russia's regions 
is evident in Novosibirsk, where YR holds the governorship, 
has an absolute majority in the regional parliament, does 
not view the emergence of the second Kremlin party "A Just 
Russia" as a threat, and dismisses the influence of 
"democratic" parties.  In a city well known for its 
research institutes and boasting 150,000 university 
students -- a tenth of its population -- Novosibirsk elites 
see the high technology sector as central to the region's 
future.  Novosibirsk's other main selling point is its 
location as a transport hub for Siberia.  Some grumble that 
Novosibirsk has a less progressive regional administration 
than other Siberian regions -- notably Krasnoyarsk -- and 
is losing ground in attracting new investment. 
Businesspeople complained of insufficient U.S. investment 
and a time-consuming process for getting U.S. visas.  End 
summary. 
 
United Russia's Appeal and the Putin Legacy 
 --------------------------------------------- --------- 
 
¶2. (U) Victor Tolonskiy has been governor of the 
Novosibirsk region since 1999.  He had no formal party 
affiliation until December 2005 when he joined United 
Russia.  United Russia controls 53 seats in the regional 
parliament (still knows as a "Soviet"), giving it an 
absolute majority.  The other parties in the parliament 
are: Communists with 24 seats, the Agrarian Party with 14 
seats, and LDPR (Zhirinovsky group) with 5 seats; there are 
also two independents. 
 
¶3. (SBU) During a late November visit to Novosibirsk, we 
met with A. Bespalikov, Chairman of the parliament. 
Bespalikov was highly confident of United Russia's 
popularity in the region and expressed no doubt the party 
would capture a majority of the region's vote in the 2007 
elections for the State Duma.  Bespalikov stressed the 
importance to voters of the stability, order and improved 
living standards that Putin had achieved.  United Russia's 
association with these successes means that its place with 
voters is secure. 
 
¶4. (SBU) Bespalikov contrasted current trends with the 
situation in the 1990s, when Russians were living under 
"warlike conditions."  This "period of chaos" had totally 
discredited Yeltsin and the liberals.  Bespalikov recounted 
that center-region relations had been a shambles; Yeltsin 
largely cast regions like Novosibirsk adrift.  All this had 
changed under Putin.  The "vertical of power," had not 
subjugated the regions, but rather had saved them.  Putin 
had reconnected the country and reversed centrifugal forces 
that could have led to the disintegration of Russia. 
 
¶5. (SBU) Bespalikov was not worried by the appearance of 
the newly formed "A Just Russia" (SR) party, predicting 
that A Just Russia might be less than the sum of its parts. 
He added that Rodina (a constituent part of SR), LDPR and 
the Communists were all on the decline in Novosibirsk. 
 
A Just Russia 
---------------- 
 
¶6. (SBU) Chairwoman of A Just Russia party for the region, 
Tamara Sharogazova, said A Just Russia would attract voters 
in Novosibirsk by stressing patriotic and family values.  A 
Just Russia had just as legitimate a claim on the Putin 
legacy, she asserted.  United Russia had become a machine, 
divorced from traditional values.  She underlined that 
Putin had kept some distance from United Russia.  It was 
the party of the favored and the connected.  A Just Russia 
would reach out to poorer voters, such as pensioners, and 
make equality, social programs, and patriotism key issues. 
 
¶7. (SBU) One of the main concerns for A Just Russia is 
voter apathy.  If A Just Russia can not show voters that 
the party can make a difference, motivated voters from 
United Russia will dominate.  Sharogazova said that much of 
the fate of A Just Russia in Novosibirsk would depend on 
the party's national leadership, particularly that of party 
leader Sergei Mironov.  He will have to use his position as 
Chairman of the Federation Council to the maximum to build 
support and name recognition for the party -- or it will 
fail.  Sharogazova agreed with YR's Bespalikov that the 
liberal parties had almost no support in Novosibirsk, 
 
MOSCOW 00013012  002 OF 003 
 
 
despite the region's highly educated population.  The 
liberals lacked real leaders and had "done nothing concrete 
for the people." 
 
Foreign and Trade Relations 
---------------------------------- 
 
¶8. (SBU) The Foreign Ministry maintains offices in each of 
Russia's seven Federal districts.  For Siberia, the 
district headquarters is Novosibirsk.  We met with 
Ambassador V. Samoyenko who explained that the MFA presence 
began in 1996 as a response to regions that were conducting 
(or were perceived to be conducting) their own foreign and 
trade policies without coordinating with the center. 
Samoyenko reports to MFA but answers locally to 
Presidential Representative (Polpred) for Siberia, Anatoliy 
Kvashnin who, in turn, reports to Kremlin Chief of Staff 
Sobyanin. 
 
¶9. (SBU) Trade promotion is a central facet of Samoyenko's 
work.  He meets with foreign investors and trade missions 
and accompanies the regional governors on foreign travel. 
Novosibirsk region's main selling points are its reputation 
as a high tech center and its role as transportation hub 
for Siberia - with air, rail, river and road linkages. 
Samoyenko touted the numerous scientific institutes in 
Novosibirsk, including at Novosibirsk University and at 
"Akademgorodok," a special research town outside 
Novosibirsk that was established in the Sputnik era.  There 
is also a strong machine manufacturing sector. 
 
¶10. (SBU) Samoyenko said that because ethnic Germans had 
once been numerous in Novosibirsk, German investors were 
the number one foreign presence.  American investment is 
small, although Intel has a research center.  Samoyenko 
noted that Chinese were an increasing presence and engaged 
currently in such projects as construction of a large 
apartment complex.  Ties with neighboring Kazakhstan are 
excellent with many Kazakhs studying in Novosibirsk. 
 
Business Perspectives 
-------------------------- 
 
¶11. (SBU) We met with a group of small and medium business 
leaders.  They agreed that the region's 150,000 university 
students and research institutes, and their focus on 
applied sciences, was key to the region's future.  However, 
some faulted Governor Tolonskiy for unimaginative 
leadership.  Other governors, like that in neighboring 
Krasnoyarsk, are doing a better job of attracting new 
investment, especially in high tech. 
 
¶12. (SBU) The business leaders said many businesspeople 
join United Russia because it offers the chance for them to 
"help themselves."  Indeed, that is its fundamental 
attraction.  Many entrepreneurs profess to be apolitical 
and do not see elections as making much of a difference. 
Some of the businesspeople said the formation of A Just 
Russia was positive and might provide needed competition to 
United Russia.  They noted that in the absence of a U.S. 
consulate in Novosibirsk, everyone has to travel to Moscow 
(or Yekaterinburg) for visas.  Often time does not allow 
for this, hampering development of business with the U.S. 
The businesspeople said that corruption was a problem in 
Novosibirsk but was not on the top of their list. 
 
Public Affairs 
----------------- 
 
¶13. (SBU) While in Novosibirsk,  we addressed 150 faculty 
and students at the Academy of Public Administration; gave 
a talk at the American corner; had dinner with exchange 
alumni; met with people from the NGO sector,  and had a TV 
and a newspaper interview following our meeting with 
business leaders. 
 
Comment 
------------ 
 
¶14. (SBU) Increased prosperity, while most evident in 
Moscow, is also evident in cities like Novosibirsk, 
Russia's third largest by population, which has a vibrant 
commercial, entertainment and business climate.  While 
United Russia is dominant and no clear threat to it is on 
the horizon, the complacency and over-confidence YR leaders 
displayed was nonetheless striking. 
 
 
MOSCOW 00013012  003 OF 003 
 
 
RUSSELL