VZCZCXRO7958
RR RUEHDBU RUEHIK RUEHLN RUEHPOD RUEHSK RUEHSL RUEHVK RUEHYG
DE RUEHMO #1827 1961303
ZNR UUUUU ZZH
R 151303Z JUL 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 4270
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RUEHZG/NATO EU COLLECTIVE
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS MOSCOW 001827 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV MARR MCAP EINV EMIN RS KG
 
SUBJECT: THE GOR'S "SECRET" VISIT TO KYRGYZSTAN 
 
¶1. (SBU) Summary:  On July 7 Russian Minister of Defense Anatoliy 
Serdyukov and Deputy Prime Minister Igor Sechin made a brief, 
unannounced visit to Kyrgyzstan to discuss Russia's interest in 
opening a second Russian military base in the southern Kyrgyz city 
of Osh.  The base is expected to house Russian forces under the 
aegis of the recently created Collective Security Treaty 
Organization (CSTO) rapid reaction force.  Experts consider the base 
to be a response to the growing U.S. presence in Central Asia, and 
shared Kyrgyz and Russian concern for Islamic extremism and the 
growing regional narcotics trade.  End Summary. 
 
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A Second Russian Base in Kyrgyzstan 
----------------------------------- 
 
¶2. (SBU) After visiting Dushanbe, MinDef Anatoliy Serdyukov and DPM 
Sechin briefly visited Bishkek on July 7 to hold closed talks with 
Kyrgyz President Kurmanbek Bakiev and Prime Minister Igor Chunidov. 
According to press reports, they mainly discussed Russia's interest 
in opening a second Russian military base in the southern city of 
Osh.  Russia intends to use an abandoned Soviet-era military 
facility near Osh as a basis for a new military base that will 
largely house Russian air force and airborne units.  The Russian MFA 
downplayed the significance of the visit by stating that Russia had 
established basing rights in Kyrgyzstan in a 2003 agreement. 
 
--------------------------------------------- ----- 
Russia Threatened by U.S. Presence in Central Asia 
--------------------------------------------- ----- 
 
¶3. (SBU) Kyrgyzstan is the only country in the world that houses 
both Russian and U.S. bases; Russia already occupies the Kant Air 
Base near Bishkek.  Seeking to offset U.S. influence in Central Asia 
and assert Russian influence in Kyrgyzstan following the GOK's 
acceptance of a continued U.S. military presence in Manas, experts 
considered Russia's request for a second base in Osh to be a product 
of Russia's concern over a growing U.S. presence in the 
strategically important region bordering Afghanistan.  Experts 
further noted that an expanded Russian military presence in 
Kyrgyzstan would supplement Kyrgyzstan's weak military and help 
Russia fight against threats such as Islamic extremism and the 
growing narcotics trade. 
 
------------------------------ 
Military-Economic Quid-pro-Quo 
------------------------------ 
 
¶4. (SBU) During the July 7 talks it was agreed that the GOR 
(presumably Rosboronexport) would receive significant stock in a 
number of Kyrgyz defense industries, in particular, controlling 
stake in a Dastan Corporation torpedo producing factory located near 
Lake Issyk-Kul.  (Note:  in a February 2009 agreement, Moscow 
obtained a 48% controlling stake in Dastan in exchange for writing 
off Kyrgyz debt owed to Russia).  The Dastan plant is the only 
factory in the CIS that produces the VA-111 Shkval missile torpedo. 
Experts posited that the stock was given to elicit Russian favor for 
moving forward with the previously announced Russian debt 
concessions and financial credits given to Kyrgyzstan, including for 
the construction of the Kambaratinsk Hydroelectric Dam in central 
Kyrgyzstan. 
 
¶5. (SBU) Experts speculated that the two countries also discussed 
Russia's interest in the privatization of the Kyrgyz energy firm 
Kyrgyzgaz and possible Russian investment in the recently opened 
Kyrgyz Tash-Kumrskogo plant that produces inexpensive high-quality 
polycrystalline silicon.  The silicon plant however, is not yet 
producing at full potential; plant owners are seeking an added 
investment of USD 200 million dollars. 
 
BEYRLE