VZCZCXRO8165
OO RUEHRG
DE RUEHBR #0132/01 0251337
ZNY CCCCC ZZH
O 251337Z JAN 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7927
INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 5914
RUEHBO/AMEMBASSY BOGOTA PRIORITY 4088
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 4553
RUEHCV/AMEMBASSY CARACAS PRIORITY 3590
RUEHGT/AMEMBASSY GUATEMALA PRIORITY 0322
RUEHLP/AMEMBASSY LA PAZ PRIORITY 5127
RUEHPE/AMEMBASSY LIMA PRIORITY 3339
RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 6724
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0322
RUEHOT/AMEMBASSY OTTAWA PRIORITY 1011
RUEHPU/AMEMBASSY PORT AU PRINCE PRIORITY 0168
RUEHQT/AMEMBASSY QUITO PRIORITY 2117
RUEHSG/AMEMBASSY SANTIAGO PRIORITY 6056
RUEHRG/AMCONSUL RECIFE PRIORITY 6145
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 3757
RUEHSO/AMCONSUL SAO PAULO PRIORITY 9072
RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUMIAAA/USCINCSO MIAMI FL PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 000132 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/11/2017 
TAGS: PREL ECON ENRG BR RU
SUBJECT: RUSSIA DOWNPLAYS MILITARY SALES IN BRAZIL BUT 
LOOKS TO TRIPLE TRADE 
 
REF: A. BRASILIA 02692 
     ¶B. BRASILIA 00053 
 
Classified By: AMBASSADOR CLIFFORD SOBEL FOR REASONS: 1.4 (B)(D). 
 
¶1. (C) Summary. The Ambassador met with his Russian 
counterpart, Ambassador Vladimir L. Tyurdenev, on January 12, 
2007 at the Russian Embassy. Tyurdenev spoke candidly about 
bilateral relations, trade, Russian hopes to furnish 
equipment and exprtise to the potential regional gas 
pipeline proect, a proposed military helicopter sale (reftel 
), and Russia,s trade presence in Latin America ingeneral. 
Tyurdenev downplayed the proposed helicpter sale as simply a 
way that Russia could offst the trade imbalance. End Summary. 
 
--------------------- 
The Russian Ambassador 
--------------------- 
 
¶2. (C) Tyurdenev has served in Brazil ince before President 
Putin,s visit in November 004. Previously, he served as 
Ambassador to Argetina from 2000-2004. Prior to that he 
worked in any of the Newly Independent States and joked that 
Latin America was his reward for that service. Heworked in 
Brasilia previously many years ago as  younger officer under 
the Soviet Union. 
 
------------------------------------------ 
Investmen and Trade, including Helicopters 
------------------------------------------ 
 
¶3. (C) Tyurdenev sad Russian investments in Brazil were not 
large, nly about USD 300,000. He mentioned that Brazilian 
investment in Russia was much more significant bt still 
modest by global standards, particularly usinesses in 
Kaliningrad amounting to somewhere etween USD 10-15 million. 
He said investments byRussian entrepreneurs have always been 
a problem noting that some businessmen were interested inBrazil,s bauxite, but 
found Guyana to be easier to eal 
with. Tyurdenev also reported that some Russans were 
interested in developing an irrigation ystem in Bahia, but 
the incompatibility of the Rssian and Brazilian banking 
systems was irreconclable. Tyurdenev continued, saying he 
has hope th coming years may improve the situation, but at 
resent two hands are enough to count the Russian ivestors 
in Brazil. 
 
¶4. (C) Turning to militarysales, Tyurdenev said that trade 
with Brazil is nbalanced. Russia is importing meat, coffee, 
and ugar from Brazil, but only supplying a limited amont of 
fertilizers. Although trade went up about 5% in 2006, the 
relationship is 4 to 1 ($3 billin in Brazilian exports 
versus $1 billion in Russan exports). He pointed out 
Brazilians are aggresive, in the positive sense, when it 
comes to comerce. He said he sees technology as an area 
wher trade can improve and a recent helicopter deal (rftel 
A) was an attempt to help balance the Brazilian-Russian 
relationship. He also stated that the primary use for these 
helicopters would be to accommodate Brazilian transportation 
needs in remote areas. 
 
¶5. (U) When the Ambassador noted great opportunities in spite 
of the many complications faced in Brazil, Tyurdenev replied 
relations between big countries are always complicated. 
 
¶6. (U) Tyurdenev expressed his solidarity with the US over 
the rocket attack in Athens and said that any attack on a 
diplomatic mission is barbarism. 
 
--------------------- 
 
BRASILIA 00000132  002 OF 002 
 
 
Regional Gas Pipeline 
--------------------- 
 
¶7. (C) Tyurdenev mentioned that the proposed regional gas 
pipeline stretching from Venezuela to Argentina was not 
really an opportunity for Russian investment, but the 
Russians would be interested in offering to share technical 
expertise and sell pipeline equipment should the project 
advance. The work in the Brazilian portion, however, would be 
done by Brazilians -- as he said the Brazilians prefer. 
 
¶8. (C) Tyurdenev said that the Russian mission to Venezuela 
is not large but noted that the Russian oil company Gazprom 
is represented there. 
 
---------------------------- 
Russian Priorities in Brazil 
---------------------------- 
 
¶9. (C) Tyurdenev noted that his priorities as Ambassador to 
Brazil are: 
 
¶A. (C) The economic area: noting that only Cuba, Argentina, 
and Brazil have permanent Russian commercial missions. 
Tyurdenev said his ambitious goal is to increase trade to USD 
10 billion by 2010 from the 2006 total of just over USD 4 
billion. 
 
¶B. (C) Technology: saying that in the 1980,s Brazil invited 
several Russian scientists to Brazil. He specifically 
mentioned the space agency agreement recently signed (reftel 
B). He said this area is promising, but that he does not 
expect &extraordinary8 results. 
 
¶C. (C) Political relations: although he said there are no 
political problems, Brazil often engages with the Russians in 
intense political dialogue. He noted during his term there 
has been one Putin visit to Brasilia and two Lula visits to 
Moscow. 
 
¶10. (C) Tyurdenev continued saying that he does not expect 
any change in the Brazilian foreign policy agenda because the 
same players are still there. He expressed a wish that Brazil 
would be more pragmatic because Russia needs a reliable 
economic partner. 
 
¶11. (C) Comment: Tyurdenev was forthcoming regarding 
Russia,s economic goals in Brazil. However, twice he 
downplayed Russia,s role, specifically when discussing 
military helicopter sales and Russia,s economic interests in 
Venezuela; he seemed to be side-stepping these issues. 
Perhaps this was simply his effort to be diplomatic, but post 
suspects that Russia has a broader agenda than Tyurdenev 
suggests, especially when projecting a 250 percent increase 
in trade with Brazil in three years. Given the low private 
investment levels between the two countries, military sales 
seem to be the likely component of this significantly 
increased trade plan.  End comment. 
 
SOBEL