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FM AMCONSUL YEKATERINBURG
TO RUEHC/SECSTATE WASHDC PRIORITY 1363
INFO RUEHMO/AMEMBASSY MOSCOW PRIORITY 1008
RUEHLN/AMCONSUL ST PETERSBURG PRIORITY 0595
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RUEHYG/AMCONSUL YEKATERINBURG 1400

UNCLAS SECTION 01 OF 02 YEKATERINBURG 000063 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON RS
SUBJECT: KURGAN-LAND THAT TIME FORGOT 
 
REF: YEKAT 27 
 
Sensitive But Unclassified. Not For Internet Distribution. 
 
¶1. (SBU) Political/Economic officer and Political/Economic 
assistant traveled to Kurgan September 9-10 to assess the 
political climate ahead of the October 11 municipal elections. 
They met with Rotary Club members, an opposition city duma 
deputy, a Soldiers' Mothers activist, a Golos representative, 
and the campaign director for commercially sponsored candidates, 
and toured the Women's Crisis Center and a drug/alcoholism 
rehabilitation center.  Kurgan has the most seats up for 
election of any region in our consular district - some 3,525, 
including Kurgan city mayor - so will be the most interesting to 
watch this election cycle.  Political apathy, however, is 
palpable. 
 
¶2. (U) Economically, Kurgan - which is a perennial net recipient 
of revenues from the federal government - may be faring better 
than its neighbors which have been net donors.  The absence of a 
vibrant industrial sector may be helping Kurgan through the 
crisis - with most employment in the agricultural and government 
sectors, Kurgan does not face the vicious cycle of reduced 
employment and personal spending leading to further cuts in 
production and retail.  In April, Governor Bogomolov told the 
media that Kurgan lacks energy supplies and an adequate sewer 
system, and these factors inhibit the possibility of economic 
growth.  We certainly saw no signs of new construction or 
businesses, and one of our contacts described the oblast as 
"twenty years behind the rest of Russia."  Kurgan may feel more 
of an impact in 2010 as reduced tax revenues mean decreased 
returns from the central government to the regions. 
 
¶3. (U) The sphere of social services is a bright light in the 
gray landscape.  The idea of a crisis center to assist battered 
women first appeared in 2004 as a result of Kurgan's sister-city 
relationship with Appleton, Wisconsin.  After visiting 
Appleton's family crisis hotline in 2004, Alla Vladimirova set 
up a telephone hotline with financial assistance and advice from 
Appleton.  Today the Crisis Center offers a 24 hour hotline, 
training for city and oblast professionals, counseling by 
psychologists and psychiatrists, and a residence center (with 
165 beds) for children of families in difficult situations.  The 
Center is financed totally by the oblast and works closely with 
the Social Services Department and militia.  Their future plans 
include opening a shelter for women, establishment of a website 
and on-line consultations, and a training program for 
volunteers. 
 
¶4. (U) In 2002, a Kurgan city duma deputy visited Appleton and a 
New Life drug rehab center.  On her return she established a New 
Life drug and alcohol treatment center in Kurgan, partly as a 
way to help her son, who is a drug addict.  New Life works 
closely with the government's HIV/AIDS center.  Over 3,900 
people are officially registered as drug addicts in the oblast 
and have no future as they cannot be hired by state owned 
enterprise or educational institutions, and cannot obtain a 
driver's license.  The Center engages in active outreach to 
inform the community of the dangers of drug and alcohol use in 
an effort to prevent addictions.  Volunteers of all ages help, 
including recovering addicts and specialists from the HIV/AIDS 
Center.  They lecture at schools, universities, summer camps, 
and stage public events in towns to get the message out.  If 
found by the militia, drug addicts are arrested and sent for 
treatment or to prison, depending on the quantity of drugs in 
their possession. 
 
¶5. (U) According to our contacts, the HIV infection rate in 
Kurgan oblast is 265 per 100,000, and said to be 80 per cent 
higher than the average for Russia.  Sexual transmission is 
thought to be the main means of transmission.  Those suffering 
from HIV/AIDS who officially register (there are 345 officially 
registered) receive monthly drug therapy free of charge, at a 
cost of RR 20,000-30,000.  So far the economic crisis has not 
led to cuts in this program, although prison hospitals cannot 
afford to stock adequate supplies of medicine.  HIV/AIDS tests 
are obligatory for teachers, doctors, military conscripts, and 
patients scheduled for surgery.  Legal migrants are required to 
test negative for HIV to enter Russia, but illegal migration is 
a factor in the spread of HIV/AIDS in the oblast.  The rate of 
tuberculosis infection is said to be 300 per 100,000, the 
highest in Russia. 
 
¶6. (SBU) The number one topic of discussion was the Kurgan city 
mayoral election of October 11.  Incumbent Kurgan mayor 
Yelchaninov, in power for 21 years, bowed out of this year's 
election and speculation over why he is quitting politics and 
who his successor will be ran rampant.  Our contacts speculated 
that Yelchaninov is out of favor with United Russia (UR) because 
his family business (managed by his son) has conflicts of 
interest with municipal management.  The family business owns 
 
YEKATERINB 00000063  002 OF 002 
 
 
the majority of gas stations in the city and has monopoly 
control over gas pricing; it also owns shares in the municipal 
transport company, and a construction company that has won most 
major contracts for municipal housing construction.  Other 
contacts believe the long-running conflict on budget issues 
between oblast governor Bogomolov and Yelchaninov is the reason. 
 Kurgan city contributes about 50 percent of the oblast tax 
income and Yelchaninov has struggled with oblast officials over 
the years to get higher rates of reimbursement to the city. 
Bogomolov, who is seen as influential in UR, might have been 
angling for Yelchaninov's dismissal.  Yelchaninov supporters and 
detractors characterize him as an experienced manager and savvy 
politician who has lost support in recent years.  Kurgan has the 
city manager form of local government, so the new mayor will be 
chosen from among the city duma deputies.  UR, Liberal 
Democrats, and Just Russia are fielding candidates for the duma 
seats. 
 
¶7. (U) The upcoming appointment of a new governor caused less 
excitement.  The term of Governor Oleg Alekseyevich Bogomolov 
(59), first elected in 1996, expires in December 2009. 
Candidates suggested to President Medvedev by the Kurgan branch 
of United Russia are incumbent governor Bogomolov, and State 
Duma deputies Igor Barinov and Vyacheslav Timchenko. When asked 
to comment why Igor Barinov, the chief of the Urals 
interregional coordination council of United Russia, was put on 
the list, political expert Mikhail Korabelnikov said the move 
was meant to show that Barinov is a promising political figure 
although probably still too weak to get the post.  Timchenko 
heads the committee on natural resources and utilization and is 
said to have ownership interests in an oil company in Tyumen. 
Some observers say Timchenko would not accept the post even if 
offered, because he has no financial interests to further in 
Kurgan.  Speculation is that since Bogomolov was one of the 
first to support extension of the presidential term of office, 
he may have the edge over Barinov. 
 
¶8. (SBU) Conclusion:  Despite the pre-election rumor mill and 
speculation, there are few outward signs of an impending 
election.  What few campaign banners we saw were for United 
Russia as a movement, and not for individual candidates.  Since 
the mayor is selected by the city duma, the population seems to 
be feeling isolated from the elections.  The opposition is 
represented by independent candidates who have not formed a 
coalition and it is almost certain that UR will win by a large 
majority in Kurgan and smaller towns where the administrative 
resource advantage will benefit UR to an even greater degree. 
Although the population might be tired of the current 
administration, many feel stability is better than change. Once 
again, this time in the sphere of social services, we have seen 
what it is possible to accomplish working with instead of 
against the authorities. 
SANDUSKY