VZCZCXRO3794
PP RUEHDBU RUEHLN RUEHPOD RUEHVK RUEHYG
DE RUEHMO #1361 1471208
ZNR UUUUU ZZH
P 271208Z MAY 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 3499
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY

UNCLAS MOSCOW 001361 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EUR/RUS AND WHA/CCA (GZAMBRANO) 
 
E.O. 12958: N/A 
TAGS: PGOV ETRD ECON PREL CU RS
SUBJECT: RUSSIA REVIEW FOR SUSPENSION OF TITLE III OF THE 
LIBERTAD ACT 
 
REF: A. STATE 48487 
     ¶B. MOSCOW 397 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR 
DISTRIBUTION OUTSIDE USG CHANNELS OR FOR POSTING ON THE 
INTERNET. 
 
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SUMMARY 
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¶1. (SBU) In response to ref A request, GOR support for democracy and 
human rights in Cuba has been minimal.  Cuban President Raul Castro 
visited Moscow in January 2009.  The visit produced no major 
political agreements and only modest strengthening of the limited 
economic ties between the countries.  Little has changed in the 
Cuba-Russia relationship since the Castro visit, although Russian 
drug makers Pharmstandard and Pharmapark recently signed an 
agreement with Cuba's Center of Genetic Engineering and 
Biotechnologies to cooperate on vaccine production in Russia.  Many 
observers view Russia's efforts to improve political and economic 
ties with Cuba as a vanity foreign policy project.  END SUMMARY. 
 
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Limited Democracy and Human Rights Efforts 
------------------------------------------ 
 
¶2. (SBU) We are not aware of any GOR action to promote the 
advancement of democracy and human rights, to condemn human 
rights abuses, or to support the development of civil society 
in Cuba. 
 
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High Level Visits 
----------------- 
 
¶3. (SBU) Cuban President Raul Castro visited Moscow January 28 to 
February 4, 2009 (ref B).  Raul Castro and Medvedev signed a number 
of agreements establishing joint ventures in various economic 
spheres, including automobile manufacturing and energy cooperation, 
but energy experts were quick to discount the value of the oil 
agreements.  Additionally, Russia agreed to provide Cuba with over 
$300 million in loans at below market interest rates, but the 
financial assistance is contingent on Cuba using the bulk of the 
proceeds to purchase Russian goods and services.  Russia also 
pledged two shipments of grain, of 25,000 and 100,000 metric tons, 
worth USD 37 million.  Many experts view such visits as part of a 
vanity foreign policy project. 
 
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Investment and Trade Relations 
------------------------------ 
 
¶4. (SBU) In the past several months, the countries have signed 
several agreements in telecommunications, automobile production, 
nickel extraction, and oil and gas extraction, all of which provide 
for only general cooperation.  Beyond these general agreements, Cuba 
has agreed to purchase or lease seven Russian-made aircraft.  In 
addition, Kamaz, Russia's largest truck manufacturer, has agreed to 
sell its trucks in Cuba and to establish a Cuban assembly plant with 
Cuba's Tradex. 
 
¶5. (SBU) In 2008, Russia-Cuba two-way trade totaled USD 265.1 
million (down 7% from USD 285 million in 2007), according to Russian 
statistics, and constituted a tiny fraction of Russia's nearly USD 
11 billion in two-way trade with Latin American and Caribbean 
countries in 2008 (up 34% from USD 8.1 billion in 2007).  Russia's 
principal exports to Cuba are aircraft, heavy machines, and 
equipment.  Cuba's principal exports to Russia are sugar, 
pharmaceuticals, medical equipment, and cigars. 
 
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Exchange and Medical Programs 
----------------------------- 
 
¶6. (SBU) Russian officials have made general statements about 
the potential for closer cooperation between Russia and Cuba 
in health care, including the possibility of greater 
pharmaceutical purchases from Cuba.  Russian drug makers 
Pharmstandard and Pharmapark recently agreed with Cuba's 
Center of Genetic Engineering and Biotechnologies to 
cooperate on vaccine production in Russia. 
 
BEYRLE