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RR RUEHAG RUEHROV RUEHSL RUEHSR
DE RUEHHE #0355/01 2711058
ZNY CCCCC ZZH
R 281058Z SEP 09
FM AMEMBASSY HELSINKI
TO RUEHC/SECSTATE WASHDC 5183
RHEFDIA/DIA WASHINGTON DC
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 5008
RHEHNSC/NSC WASHDC
RHEFDIA/DIA WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 HELSINKI 000355 
 
SIPDIS 
 
NSC FOR HOVENIER 
 
E.O. 12958: DECL: 09/01/2019 
TAGS: FI PGOV PREL RS
SUBJECT: FINLAND: HALONEN ASSUMES TRADITIONAL POSTURE 
TOWARDS RUSSIA 
 
REF: A. 09 HELSINKI 151 
     ¶B. 09 HELSINKI 211 
 
Classified By: Ambassador Bruce Oreck for reasons 1.4(b) and (d) 
 
¶1. (C) SUMMARY.  On August 11 Finnish President Halonen met, 
dined and relaxed with Russian President Medvedev and Prime 
Minister Putin for five hours in the Black Sea city of Sochi. 
 This was the third presidential meeting this year, and 
Finnish officials describe each as a warm encounter. 
Typically these meetings focus on bilateral trade matters, 
but this time topics like the Nord Stream pipeline project, 
US-Russia relations, human rights, climate change and Iran 
dominated.  In pursuing such a positive working relationship 
with the Russian leadership, Halonen is following a long 
tradition of Finnish Presidents assuming the role of 
"guarantor" of good bilateral relations.  That role sometimes 
places Halonen at odds with the other two charged with 
Finland's foreign relations, the Prime Minister and the 
Foreign Minister.  Halonen could be a useful "western 
consultant" for the Russian leadership, if she used her 
meetings to support transatlantic and European security 
institutions.  However, Halonen does not raise those topics, 
and her influence with the Russian leadership is uncertain. 
END SUMARY. 
 
¶2. (C) On August 11 President Halonen met Russian President 
Medvedev and Prime Minister Putin in the Black Sea city of 
Sochi.  In an August 20 meeting with Pol/Econ Chief, Maimo 
Henriksson - Director of the Russia Unit at the Ministry of 
Foreign Affairs - described two very positive meetings 
spanning roughly five hours (four with Medvedev (including 
lunch), and approximately one with Putin).  This was the 
third time this year Halonen has met her counterpart, the 
other two being in April and June (REFS).  As with all of 
these meetings, bilateral trade matters were on the agenda; 
however, on this occasion multilateral issues dominated. 
 
BILATERAL ISSUES - LIMITED TALK, NO PROGRESS 
 
¶3. (C) Halonen raised two issues: Finnish participation - 
particularly of a Finnish construction consortium - in bids 
related to the 2014 Sochi Winter Olympics, and the Russian 
tariff on roundwood exports.  Henriksson acknowledged that 
the Finns have few expectations of success when raising 
Olympic bids with the Russian leadership; Halonen continues 
to raise the subject mostly for domestic consumption, to show 
that Halonen speaks up for Finnish interests.  Regarding the 
wood tariff, Halonen received sympathy and justifications but 
no confirmation that the tariff would be eliminated or that 
Russia would extend the current one-year moratorium, set to 
end in December.  Medvedev offered understanding of the 
difficulties facing the Finnish forestry industry, and went 
on to blame China, stating that Russia's real concern is for 
its wood industry is in the east, not the west.  Putin said 
Russia did not wish to harm Finland's economy, but Russia 
must promote its own industry.  He pointed to Russia's 
automobile industry, asserting that raising import duties 
resulted in a boost for domestic car production. (NOTE: 
Henriksson said that the Russian trade minister had 
separately indicated that Russia might continue its 
suspension of the tariff, which the Finns assume means 
rolling it over for another year.  The minister insisted that 
Russia had seen investments in its wood industry, but 
provided no specific examples.  Many GoF officials are 
dubious about Russian claims of such investments.  END NOTE.) 
 
U.S.-RUSSIAN RELATIONS AND OTHER ISSUES 
 
¶4. (C) Halonen and Medvedev did not speak extensively about 
U.S.-Russian relations, only touching on a few issues. 
Henriksson stated that Medvedev viewed initial discussions of 
a post-START treaty positively.  Halonen's overall impression 
was that Medvedev "valued the current U.S. policy line very 
highly" but was nevertheless "cautious about the 
possibilities of success."  Henriksson said NATO - and the 
possibility of Finland's membership - did not arise in either 
meeting, or in any other Halonen-Medvedev-Putin meeting this 
year.  Other non-bilateral topics included: 
 
- CLIMATE CHANGE: Halonen and Putin briefly discussed the 
Copenhagen Summit.  Putin said that Russia would not be 
"saddled with bigger demands than the U.S. or China." 
 
 
HELSINKI 00000355  002 OF 002 
 
 
- NORD STREAM: Halonen and Medvedev spoke only briefly about 
the proposed natural gas pipeline: Medvedev spoke about the 
importance of Russian energy to EU countries, while Halonen 
recounted the Finnish environmental review process now 
drawing to a close and to the building permit process that 
would follow a positive review. 
 
- WORLD TRADE ORGANIZATION: Halonen asked about Russia's 
intentions to join the WTO on its own.  Medvedev said Russia 
has not given up its intention to join alone, i.e., it does 
not intend to become a "prisoner of a slower process." 
Medvedev did not address how Russia might accelerate the 
current process. 
 
- HUMAN RIGHTS: Regarding Chechnya, Halonen told Medvedev 
that the current situation cannot continue and asked what can 
be done to improve it.  Henriksson expressed disappointment 
with Medvedev's vague response.  He acknowledged problems, in 
particular an entire generation growing up accustomed to 
violence, and spoke broadly of improvements, of ongoing 
reconstruction and aid money being funneled to Chechnya.  He 
complained of terrorists still operating in Chechnya and 
receiving support from Turkey and Arab countries. 
 
- IRAN: Halonen's view was that the Russians think it a 
"mistake to leave Iran alone" regarding its nuclear 
ambitions, but that Iran should be allowed a civil nuclear 
power capability - a "peaceful track" should be allowed, as a 
ban would only encourage surreptitious pursuit. 
 
HALONEN: GUARANTOR OF GOOD FINNISH-RUSSIAN RELATIONS? 
 
¶5. (C) Henriksson noted the positive tone of all of Halonen's 
meetings with the Russian leadership. She believes that, like 
other Finnish presidents, Halonen sees herself as the 
"guarantor" of good Finnish-Russian relations.  Following 
Halonen's trip the Finnish media picked up on this point, 
placing Halonen in a long tradition of Presidents building 
working relationships with the Russian leadership.  One 
editorial noted that Medvedev and Putin may have found a 
"western consultant or even a therapist" in Halonen.  Another 
saw a problem in Halonen's working relationship: Historically 
(and currently), Russia wants a more independent Finland 
standing between east and west, but as an EU Member State 
Finland is firmly planted in the west. 
 
COMMENT 
 
¶6. (C)  Halonen appears to have good relations with the 
Russian leadership, though her ability to influence that 
leadership is uncertain.  With Finland firmly planted in the 
west, its President might be well positioned to be a "western 
consultant," explaining policies while maintaining a strong 
voice in supporting existing transatlantic and other European 
security organizations. However, Halonen's adopted role seems 
focused on not roiling the bilateral waters while gently 
raising broad international themes. That traditional role 
appears to play well in Finland, given Halonen's strong poll 
numbers.  While Halonen does not utilize her role to best 
transatlantic advantage, her domestic popularity works in our 
interest when she speaks favorably on other issues, as she 
did this summer in publicly expressing support for Finland's 
contributions to Afghanistan. 
 
ORECK