VZCZCXYZ0001
RR RUEHWEB

DE RUEHMO #3106/01 2951409
ZNR UUUUU ZZH
R 211409Z OCT 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 0456
INFO RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS MOSCOW 003106 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV MASS EAID ETRD EPET EINV ENRG RS
 
SUBJECT: RUSSIA INCREASES ECONOMIC ACTIVITY IN LATIN AMERICA 
 
¶1. (SBU) Summary:  Russia's intensified interest in Latin America 
stems largely from economic opportunity, while serving to reinforce 
its multi-polar concept of foreign policy.  Following the Georgian 
conflict, Russia has increased its activity in the region in order 
to highlight its ability to extend its reach into the "U.S. 
backyard."  In meetings held with Latin American officials during 
the 63rd UNGA and afterwards in Moscow, the GOR emphasized its 
geo-strategic interest in fostering and improving economic and 
political relations with this region, despite its geographical 
remoteness from Russia.  Subjects in these meetings ranged from 
economic-trade relations, military-technical cooperation, space 
technology, drug trafficking and terrorism, and discussions on ways 
to strengthen political dialogue and cultural ties.  New arms deals 
with Venezuela continue to be reported in the Russian press, but to 
date no new contracts have been signed.  End Summary. 
 
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Bolstering Economic Ties a Top Priority for Russia 
--------------------------------------------- ------ 
 
¶2. (SBU) Director of the Latin American Institute of the Russian 
Academy of Sciences Vladimir Davidov told us that opening Latin 
American markets for Russian business is GOR's top priority in Latin 
America.  Russia sees great potential for expanding economic 
relations with Latin America, despite the challenge of geographical 
distance between the two regions.  Davidov argued that Brazil is the 
most important Russian interest in Latin America, and the GOR 
labeled Brazil its "key trading partner" in the region with trade 
reaching USD 5 billion in 2007, according to Russian statistics.  At 
the UNGA on September 27 Lavrov met with Brazilian Foreign Minister 
Celso Amorimo, and stressed Russia's interest in maintaining its 
strong ties with Brazil, and on October 3 Lavrov and Brazilian 
Foreign Minister Celso Amorimo released a joint article in the 
Russian newspaper Rossiskaya Gazeta.  In the article the two 
ministers discussed the Russian-Brazilian friendship and "strategic 
partnership."  They emphasized the two countries' growing 
relationship in the areas of trade, technology, space, and cultural 
cooperation. Russia also re-iterated its support of Brazil's 
candidacy for a permanent seat of a reformed U.N. Security Council. 
 
 
¶3. (U) Russia's second most important partner in Latin America is 
Argentina.  Trade between the two countries reached USD 1.4 billion 
in 2007.  Argentine FM Taina led a delegation that included 
businesspeople and met with Deputy Minister Denisov in order to 
further develop trade relations.  Similarly, Lavrov and Mexican FM 
Patricia Espinosa Cantellano discussed ways to diversify their trade 
basket to boost trade relations between the two countries during her 
visit to Moscow October 7-9.  Both ministers recognized that the 
current trade relationship was far below its potential, reaching 
only USD 700 million last year.  While Russia speaks of increasing 
trade with Latin America, Russia's current economic ties prove to be 
less substantial than the GOR would like, and no concrete economic 
deals were reached during these meetings. 
 
¶4. (U) During the UNGA, Lavrov met separately with foreign ministers 
of Cuba, Colombia, Nicaragua, and Venezuela.  Lavrov met jointly 
with three foreign ministers of the Rio Group:  Mexico, Chile, and 
the Dominican Republic as well as BRIC foreign ministers in New 
York.  While these meetings focused on increasing economic-trade 
relations with Russia, Lavrov stressed Russia's interest in 
strengthening bonds with its Latin American counterparts as part of 
its multi-polar world vision, and as a means to counter global 
issues like the current international financial crisis. 
 
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Strategic Partnerships and Space Diplomacy 
------------------------------------------- 
 
¶5. (U) In their joint article Brazilian FM Celso Amorimo and FM 
Lavrov noted mutual interest in maintaining space cooperation.  No 
new military or space cooperation plans were noted, however.  Last 
spring the two countries reached an agreement to develop a family of 
launch vehicles for Brazil as part of Brazil's Cruzeiro de sul 
(Southern Cross) program.  Russian-Brazilian technological 
cooperation is a lucrative collaboration for Russia, and serves 
Brazil's long-term goal of building its own space program. 
 
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Venezuela and Bolivia 
--------------------- 
 
¶6. (U) Russian media continue to report on new arms deals with 
Venezuela.  On October 7 General Director of Rosoboronexport, 
Anatoli Isaikin, told the press his company would enter into talks 
with Venezuela, and on October 15 press reports indicated that 
Rosoboronexport may sign a contract to send a shipment of BMP-3 
armored vehicles to Venezuela next month.  In reference to 
Russian-Venezuelan arms cooperation, Lavrov told Rossiskaya Gazeta 
on October 7 that Russia was not aligning itself militarily against 
anyone, and was cooperating on the basis of international law. 
 
¶7. (U) Russia will host an inter-governmental commission with 
Venezuela October 27-29, which will serve "to facilitate increasing 
cooperation and implementation of major joint initiatives," 
according to the GOR.  During their meeting in Moscow, Lavrov and FM 
Moros also discussed setting a date for proposed visits of Medvedev 
and Putin to Caracas, with Medvedev possibly travelling to Venezuela 
in November, according to recent press reports.  This visit could 
possibly coincide with upcoming Russian-Venezuelan joint naval 
exercises to be held in November (septel). 
 
¶8. (U) On October 2 press reports indicated that Bolivia plans to 
purchase 5 Russian civil defense helicopters, although a price for 
the aircrafts has not been set.  Bolivia claims these aircraft would 
be utilized for flood relief efforts, according to press reports. 
Russia's ambassador to Bolivia Leonid Golubev told the press that he 
would like Russian-Bolivian relations to "approach the level of its 
partnership with Venezuela."  Golubev also confirmed Russia's 
interest in showing the U.S. that "Latin America is not their 
backyard." 
 
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Re-Connecting With Old Friends 
------------------------------- 
 
¶9. (SBU) In his meeting with Nicaraguan Foreign Minister Samuel 
Santos Lopez, Lavrov expressed gratitude for the Nicaraguan decision 
to recognize the independence of South Ossetia and Abkhazia. 
According to Davidov, this decision is easily explained given 
Nicaragua's previous relationship with the former Soviet Union. 
During the Cold War, Nicaragua received economic support from the 
U.S.S.R. and Davidov noted that some states still see the "Soviet 
Union" when dealing with Russia, especially someone like President 
Ortega.  He thought it was likely that Nicaragua would leverage its 
recognition of South Ossetia and Abkhazia to get Russian assistance 
in receiving gas, possibly from Venezuela. 
 
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Comment 
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¶10. (SBU) While building stronger economic ties with Latin America 
remains at the heart of Russian interests in the region, the GOR's 
increased political outreach to countries like Cuba, Venezuela, 
Bolivia, and Nicaragua reinforces its effort to pitch its 
multi-polar concept of foreign affairs.