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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 STOCKHOLM 000607 
 
SIPDIS 
 
E.O. 12958: DECL: 09/04/2018 
TAGS: PREL PGOV EU GG RU SW
SUBJECT: SWEDEN ON GEORGIA IN ADVANCE OF THE SEPTEMBER 5-6 
GYMNICH 
 
REF: A. STATE 93264 
     ¶B. STOCKHOLM 587 
 
Classified By: DCM ROBERT SILVERMAN FOR REASONS 1.4 (B & D) 
 
¶1. (C) Summary: Swedish MFA Political Director Lyrvall told 
us September 4 that Sweden will emphasize the "political 
side" in upcoming donor conferences to highlight the need to 
demonstrate solidarity with Georgia and restore investor 
confidence.  FM Bildt will work to "send a strong message" to 
French President Sarkozy before his September 8 trip to 
Moscow, including on visa liberalization for the Georgians 
and the importance of deploying ESDP civilian observers.  The 
EU is also prepared to offer Georgia a "deep" FTA, he said. 
Lyrvall asked us to check whether the USG would be willing to 
explore what actions might be taken against individuals and 
entities that do business in the breakaway regions of 
Abkhazia and South Ossetia.  End Summary. 
 
Donors Conference and Rebuilding Georgia 
---------------------------------------- 
¶2. (C) On September 4, DCM and POL Counselor raised reftel 
talking points with Bjorn Lyrvall, Director General for 
Political Affairs in the Swedish MFA.  With regard to the 
planned international donors conference for Georgia, Lyrvall 
emphasized that the Swedes intend to "emphasize the political 
side" ) the need to take steps that demonstrate solidarity 
with the Georgians and reinforce investor confidence in the 
country, in addition to aid pledges. 
 
¶3. (C) He stated that the European Commission assesses 
civilian damages in Georgia to be "significantly lower" than 
what the Georgians claim, and that EC experts estimate it 
would cost 110 million euros for immediate civilian 
reconstruction in "Georgia proper," i.e., not including South 
Ossetia and Abkhazia.  (Note: He added that he does not like 
the term "Georgia proper," but that it is in use in the EU 
and that "some feel we must face reality."  Others are 
beginning to use the term "interior Georgia" which seems more 
neutral to us.  End note.)  He stated that rebuilding the 
military is not something that will "go through" because 
there is "no support."  Asked whether non-lethal support 
might be a possibility, Lyrvall mused that there may be "some 
opportunities" but that there exists "strong EU regulations" 
on such assistance.  Lyrvall stressed growing EU support for 
a "deep" free trade agreement with Georgia, though the 
Georgians do not seem interested in this, he said. 
 
EU Council and Gymnich 
---------------------- 
¶4. (C) Lyrvall raised the September 1 extraordinary European 
Council meeting on Georgia, noting that Foreign Minister Carl 
Bildt had pushed for a tougher line but "we did not get 
everything we wanted.8  Stating that the "end result could 
have been tougher," Lyrvall noted that "at least the EU took 
a united position."  He said Sweden had pushed for language 
calling for the Russians to withdraw to the positions they 
held prior to August 7, which he termed "better than the 
language of the six point plan."  Lyrvall also highlighted 
the suspension of negotiations on the EU-Russia Partnership 
Agreement, though he repeated his earlier comments that the 
Russians did not seem too interested in the talks anyway.  He 
said in the upcoming Gymnich, Carl Bildt will try to get 
other foreign ministers to unite over a "strong message" to 
Sarkozy before he leaves for Moscow on September 8, and 
specifically to press for a &clear working out" of the 
modalities of the "special mechanism." 
 
Visa Liberalization for Georgians 
--------------------------------- 
¶5. (C) Lyrvall said support for relaxing EU visa regulations 
for Georgians is "much stronger and broader now."  He noted 
the paradox of Russian passport holders in the enclaves of 
Abkhazia and South Ossetia now enjoying liberalized visa 
regimes while Georgian passport holders do not.  Asked 
whether the EU had considered Sweden's proposal to restrict 
visa free travel for Russian elites (ref B), Lyrvall noted 
there was "little appetite for sanctions right now," - see 
FATF below. 
 
ESDP Observers 
-------------- 
¶6. (C) On the question of ESDP civilian observers for 
Georgia, Lyrvall stated that Sweden would like to see a 
200-person monitoring force deployed. "Planning is ongoing, 
but at least one country is reluctant to send observers 
without prior coordination with Moscow," he added.  Asked to 
specify, he stated that Cyprus remains reluctant, though he 
was unsure whether Cyprus would hold this position to the end. 
 
FATF 
 
STOCKHOLM 00000607  002 OF 002 
 
 
---- 
¶7. (C) Lyrvall stated that Sweden is interested in exploring 
possible actions that the EU might be able to take against 
Russian individuals and entities doing business in the 
break-away regions.  He specifically asked about the 
possibility of taking action against Russian banks through 
FATF.  Lyrvall commented that simply asking the EC to look at 
the issue should be sufficient to "give pause to 
international bankers."  He stated, however, that any such 
action would be "impossible unless the U.S. engages also." 
 
Nordstream 
---------- 
¶8. (C) Asked about commentary in the Swedish press that 
Baltic littoral nations might withhold environmental 
approvals for the proposed Nordstream pipeline, Lyrvall 
acknowledged public debate on the issue but said there was no 
discussion yet along these lines within the government. 
Rather, as long as the Russians file the right applications, 
Swedish authorities would plan to "go by the book."  Until 
now, "the thinking has been to try to keep this 
de-politicized," he said, but admitted that "latest 
developments have changed the tone in EU thinking."  The 
language about energy diversification in the September 1 EU 
Presidency Conclusions reflected this, Lyrvall added. 
WOOD