VZCZCXRO4590
RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHLI #2771/01 3041847
ZNY CCCCC ZZH
R 311847Z OCT 07
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 6403
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 0488
RUCNDT/USMISSION USUN NEW YORK 1504
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L SECTION 01 OF 03 LISBON 002771 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 10/10/2016 
TAGS: PREL EUN PGOV RS IR PO
SUBJECT: EU-RUSSIA SUMMIT IN PORTUGAL 
 
REF: LISBON 2714 
 
Classified By: POL CHIEF TROY FITRELL, REASONS 1.4 (B,D) 
 
¶1. (U) Summary.  At the EU-Russia Summit in Portugal October 
26, Russia committed to invite the OSCE to observe the 
December 2 Duma elections.  On missile defense, Putin 
compared the U.S. proposal to the USSR placing offensive 
missiles in Cuba.  This line garnered much press coverage, 
which ignored the more positive public tone Putin took on the 
issue in which he underscored U.S.-Russia cooperation.  The 
summit focused heavily on trade and economic matters, with 
principals particularly pleased about an early warning system 
related to Russian energy supplies to the EU.  Putin 
surprised his summit interlocutors with a proposal to 
establish a Russia-EU Human Rights Institute, in which, Putin 
declared, Russia could help the EU on human rights issues. 
End summary. 
 
¶2. (U) The EU-Russia Summit was held October 26 in Mafra, 
Portugal.  Representing the European Council, Portuguese 
Prime Minister Socrates hosted the event, with the 
participation, inter alia, of European Commission President 
Jose Manuel Durao Barroso and Secretary General/High 
Representative Javier Solana.  Russia was represented by 
President Vladimir Putin.  At the summit's closing ceremony, 
each of the four principals made a statement followed by the 
signing of two agreements and then a press conference. 
Socrates spoke in Portuguese, Putin in Russian, and Durao 
Barroso and Solana in English. 
 
¶3. (U) As reported reftel, the summit included a working 
session of two hours followed by a 90 minute lunch.  The 
working session was dedicated to the four EU-Russia common 
spaces:  economic, justice/security, external security, and 
research/education.  The lunch was dedicated to such regional 
and international issues as Kosovo, Iran, the Middle East 
Peace Process, and Burma.  In the press conference, Putin 
said that the principals "were unanimous" on the regional and 
international issues in that "international law was 
paramount." 
 
¶4. (C/NF) Portuguese MFA Political Director Vasco Bramao 
Ramos told us that the Portuguese interpretation of the lunch 
discussion was that each side had made its standard points 
and that neither side had yielded. 
 
OSCE Observers 
-------------- 
¶5. (U) During opening statements at the beginning of the 
press conference, Socrates and Barroso each stressed their 
pleasure that Putin had confirmed his intention to issue an 
invitation to the OSCE to observe Russia's December 2 Duma 
elections.  Socrates noted that such an agreement "builds 
trust."  During the press conference itself, however, Putin 
ignored a question regarding the date the OSCE could begin 
its mission and what its mandate would be. 
 
¶6. (C/NF) Immediately following the press conference, 
Ambassador Bramao Ramos told us privately that Putin had 
promised to send the invitation letter to the OSCE that day 
or the next (October 26 or 27).  Bramao Ramos said the 
Russians had told him privately in his recent trip to Moscow 
that an extended OSCE mission of 90 days would be insulting 
to a developed member state of the OSCE.  Bramao Ramos 
continued that "They are not an emerging country, you know. 
I can understand the point of view."  He said the Russians 
had admitted to him that their delay in responding formally 
to the OSCE was a tactic to eliminate the kind of full-scale 
mission the OSCE wished to conduct. 
 
Missile Defense 
--------------- 
¶7. (C/NF) As noted reftel, Portuguese interlocutors confirmed 
that Russia wanted Missile Defense (MD) and CFE negotiations 
on the agenda, but that the EU refused, citing other fora as 
more appropriate discussion venues. 
 
¶8. (U) During the press conference, however, a Portuguese 
journalist asked Putin if Russia would accept recent U.S. 
offers to cooperate on MD.  Putin responded that the current 
disagreement stemmed from the U.S. withdrawal from the 
Anti-Ballistic Missile Treaty (ABM).  Putin then compared the 
placement of an MD system near Russia's borders with the 
Soviet attempt to place missiles in Cuba in the 1960s, which 
led to crisis.  Putin noted, however, that relations between 
the U.S. and Russia have become much stronger, citing his 
personal friendship with President Bush.  Putin also 
commended the recent visit of Secretaries Rice and Gates for 
 
LISBON 00002771  002 OF 003 
 
 
clarifying that the USG heard the Russian government's 
concerns. 
 
¶9. (U) Putin suggested that the efforts on both sides have 
led the MD discussion to an appropriately technical level. 
Russia had, said Putin, put forth some proposals and was 
waiting for the U.S. response.  Putin also noted that Russia 
had proposed an information sharing mechanism, situated in 
Brussels or elsewhere, to facilitate cooperation on security 
issues. 
 
Commerce and Energy 
------------------- 
¶10. (U) Each of the principals stressed that EU-Russia trade 
has grown five fold over the last seven years.  Putin added 
that Russia represented the EU's third largest trading 
partner and the EU represented Russia's largest trading 
partner.  Socrates noted that commerce formed the cornerstone 
of the EU-Russia relationship.  Indeed, Socrates opined that 
the business relationship was so good, it would take a while 
for the political relationship to catch up. 
 
¶11. (U) Putin noted that observers suggest Russia's economy 
consists only of petroleum, but that this is a false 
assessment.  Russia, he said, had recently passed Italy in 
GDP, was gaining on France, and two thirds of its recent 
growth was not energy related.  Putin noted Russia's desire 
to invest in the EU's energy infrastructure.  He compared the 
30 billion euros that European companies have invested in the 
Russian energy sector with the 3 billion euros Russian 
companies have invested in the EU's energy sector, suggesting 
that media commentary on Russian buyouts of European 
companies was greatly exaggerated. 
 
¶12. (U) All principals commented on the early warning system 
on supply and demand of Russian energy to the EU agreed to in 
principle in Brussels earlier in the week.  As on other 
topics, Barroso opined that the system would build trust. 
 
WTO 
--- 
¶13. (U) Barroso noted that Russia's WTO accession was pending 
two purely technical issues, one of which was wood export 
duties (the other was not cited).  Socrates noted that the EU 
had always supported Russia's WTO accession and that process 
was coming to an end.  Putin then stated, however, that while 
hopeful on WTO accession, Russia would not join the WTO if 
negotiators could not recognize the frailty of the emerging 
Russian economy. 
 
Deliverables:  Steel and Narcotics 
---------------------------------- 
¶14. (U) During the press conference, two agreements on steel 
trade and counter-narcotics cooperation were signed.  The 
Agreement on Trade in Certain Steel Products was signed by 
Portuguese Foreign Minister Luis Amado, European Commissioner 
Peter Mandelson, and Russian Minister for Economic 
Development and Trade Elvira Nabiullina.  The Memorandum of 
Understanding between the European Monitoring Centre of Drugs 
and Drug Addiction and the Russian Federal Drug Control 
Service was signed by the Director of the European Monitoring 
Centre Wolfgang Gotz and the Director of the Russian service 
Viktor Cherkasov. 
 
Putin's Future 
-------------- 
¶15. (U) After Socrates, Barroso, and Solana all made 
extensive references to Mafra being Putin's last summit, 
Putin himself added wryly that he could not tell if his three 
colleagues were pleased about this or not.  In response to a 
question regarding his political future, Putin said he had 
made no decision on a future job, but made the following 
points:  "I will not change the Constitution for my own 
needs," "I will not run for President in March," "I will not 
change the structure of authority," and "I will not transfer 
powers to the Prime Minister as long as it is my decision." 
 
Human Rights and a Surprise Proposal 
------------------------------------ 
¶16. (U) All principals noted that Putin had tabled a proposal 
to establish a Russia-EU Human Rights Institute.  The three 
participants representing the EU expressed agreement with the 
basic concept of such a proposal, but noted they had to study 
the details.  Putin asserted that the EU has long supported 
similar organizations in Russia, so it was now time for 
Russia to do likewise to help the EU with human rights 
problems across the continent.  Putin suggested Brussels as 
the site of such an institute, but said he would agree to any 
other European city as well. 
 
LISBON 00002771  003 OF 003 
 
 
 
¶17. (U) A Portuguese journalist asked Socrates if his 
decision to minimize human rights as a summit topic in order 
to ensure a friendlier summit atmosphere had "paid off."  A 
visibly angry Socrates denied that he had minimized human 
rights as a topic, stating that it had been discussed. 
Socrates then cited the proposed institute as a way to 
protect human rights in both blocs.  He added that the EU and 
Russia indeed had differences, emphasizing that "this is why 
we have summits." 
 
¶18. (U) Regarding the death of Russian journalist Anna 
Politkovskaya, an Itass reporter pointed out that the 
suspected killer of another journalist was living in Sweden. 
He asked Barroso if the EU would pressure Stockholm as 
strongly as it pressures Moscow, given that Sweden has 
refused to extradite the suspect.  Barroso responded 
forcefully that the Politkovskaya case had not been fully 
investigated and that it was incumbent on Moscow to do so. 
Free speech and a free press were non-negotiable, he said. 
Barroso admitted that he was not familiar with the Swedish 
case, but noted that extradition was a bilateral issue and 
that no one had any doubts about the rule of law in Sweden. 
Putin added that his government would investigate all crimes, 
but he expressed disappointment that Sweden had refused to 
extradite a suspected murderer. 
 
Other Notes 
----------- 
¶19. (U) Other points raised at various points during the 
summit include: 
 
--Solana said he had met with the Iranians recently in Rome 
on the issue of enrichment of uranium and noted that he would 
meet with them again before the end of November. 
 
--Commissioner Ferrero-Waldner told journalists that she 
hoped negotiations on a new EU-Russia partnership agreement 
would begin at the next summit. 
 
--Putin hoped that the next summit would be in June in 
Siberia. 
 
--Russia will provide 122 million euros for border control 
cooperative efforts. 
 
--Visa facilitation discussions will continue. 
 
Comment 
------- 
¶20. (C/NF) Socrates and other Portuguese government officials 
characterized the summit as a success, citing the Permanent 
Partnership Council on culture, the signed agreements on 
steel and counternarcotics cooperation, an investment 
dialogue predicated on the growing trading relationship, and 
the early warning system for possible energy disruptions. 
This appears to us to be small fish, however, given the 
importance of international issues like Kosovo, the use of 
energy supplies as a weapon against various EU member states, 
cyber attacks on Estonia, and human rights issues in Russia. 
A British Embassy source told us the Russians could not have 
hoped for a friendlier host, and the Ukrainian ambassador 
here expressed frustration that the Portuguese had not taken 
a firmer line. 
 
¶21. (U) On MD, press coverage generally failed to 
characterize the overall positive tone of Putin's complete 
response, when he lauded the 2 2 discussions and noted that 
current U.S.-Russia differences were technical rather than 
political.  It was clear that few observers were comforted by 
Putin's carefully-worded comments about his political future. 
 
Hoffman