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O 251223Z NOV 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5499
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
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RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
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C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 002882 
 
SIPDIS 
 
E.O. 12958: DECL: 11/25/2019 
TAGS: PREL PGOV PMAR PHUM PINR ECON EFIN RS
SUBJECT: UNITED RUSSIA UNVEILS "RUSSIAN CONSERVATISM," 
TANDEM PLAYS PUBLIC ROLES WELL 
 
REF: A. MOSCOW 2841 
     ¶B. MOSCOW 2782 
     ¶C. MOSCOW 2781 
     ¶D. MOSCOW 2779 
 
Classified By: DCM Eric Rubin; reasons 1.4(b/d). 
 
¶1. (C) Summary: United Russia's national and regional leaders 
met in St. Petersburg November 20-21 for their annual review 
of party business.  The highlights of the congress were the 
November 21 addresses by President Medvedev and Prime 
Minister Putin.  Medvedev praised United Russia for acting 
quickly upon the initiatives he put forward in 2008, while 
charging the party to commit to open debates with opposition 
parties.  He emphasized that United Russia should use its 
influence as the "governing" party not to ensconce itself in 
power but to serve citizens.  Putin's address was all meat 
and potatoes, showcasing his United Russia-led government's 
success in combating the economic crisis and the steps it 
would take to improve citizens' quality-of-life.  He made 
only a passing reference to Medvedev's call for 
modernization, noting instead the huge sums his government 
had already devoted to high-tech development throughout the 
country.  Gryzlov's unveiling of the party's new ideology - 
"Russian conservatism" - was more a justification for the 
phrase in the context of Medvedev's modernization theme than 
an explanation of what it means for the party.  Medvedev and 
Putin were at ease with one another throughout the congress, 
with Medvedev nodding approvingly when Putin and Gryzlov were 
speaking.  End Summary. 
 
Warm-Up Act: Medvedev Praises, Chastises 
---------------------------------------- 
 
¶2. (C) President Medvedev delivered a succinct assessment of 
United Russia's record of governance November 21 to its party 
leaders and foreign political and diplomatic guests.  After 
lauding the party's role in guiding Russia through the worst 
of the economic crisis, he turned to the modernization themes 
outlined in his annual address to the nation (Refs B and C). 
He called for an economic "reset" in which corruption would 
give way to a restructured, competitive economy exporting 
Russian high-tech products to the world. 
 
¶3. (C) More significant was Medvedev's admonition to the 
party not to stagnate, but to embrace debate, democracy and 
change in order to serve Russia's citizens.  He called for 
United Russia to forego use of the extensive administrative 
resources at its disposal and not to fear candid discussion 
with (Kremlin-sanctioned) opposition parties.  United Russia 
officials in the regions especially, he said, should "seek 
victory in the open battle of ideas."  Being the party in 
power brings with it responsibilities to be an instrument to 
help citizens meet life's challenges, including 
modernization, the President concluded. 
 
Putin Takes Credit for Success, Ladles Out More Money 
--------------------------------------------- -------- 
 
¶4. (C) During his speech Putin made it clear that the party's 
duty was to fulfill government objectives, the most important 
being to help Russians weather the economic crisis.  The hall 
burst into the first of many ovations when he reminded the 
audience that at the 2008 party congress he had taken 
personal responsibility for this task, and with the help of 
United Russia, had succeeded in preserving citizens' savings, 
stabilizing the ruble, and meeting all obligations to those 
dependent on government assistance.  On his (and United 
Russia's) watch, the tragedy of the 1991 and 1998 economic 
crises would never be repeated, he stated to resounding 
applause.  Of course other parties also want what is best for 
the country, he conceded, but only United Russia has been 
able to deliver. 
 
¶5. (C) Making the dubious connection between the policies 
implemented under United Russia's (and his) stewardship of 
all levels of government, Putin gave a passing nod to the 
modernization program outlined by Medvedev in his poslaniye 
(Ref A).  Yet, he then enumerated the kind of high-tech 
investment in educational, health and research facilities and 
in infrastructure development "not just in Moscow and St. 
Petersburg, but throughout the country" that he had overseen 
as Prime Minister.  Putin argued that over a year ago the 
crisis had already put an end to the idea that Russia could 
rely on energy and raw materials exports, and that he was 
already implementing the new path he and the party had 
 
MOSCOW 00002882  002 OF 003 
 
 
charted.  The message was clear: the Putin-led, United Russia 
managed government is already engaged in concrete steps to 
move Russia forward, notwithstanding any new ideas or 
proposals about modernization. 
 
¶6. (C) Putin outlined a series of steps his government would 
take to boost domestic industry while also benefiting 
consumers.  Having outlined the problems of "monogorods" 
(single-industry towns) and of the automobile industry, he 
promised a government subsidy of 50,000 rubles to each 
Russian trading in a vehicle 10 years or older to purchase a 
new car, of foreign or domestic make, as long as it is 
produced in Russia.  He described the problems in the 
construction sector and the lack of affordable housing and 
promised to quadruple government support as a way to lower 
mortgage interest rates, to stimulate building and to give 
young families the opportunity to own homes.  He pledged to 
increase pensions by 46 percent in 2010, and he pledged 
additional funding to the military.  The buzz in the hall 
among delegates, among journalists and average Russians with 
whom we spoke was mainly about these bread and butter 
proposals. 
 
Gryzlov: Conservatism, Solid Leaders; Populist Opposition 
--------------------------------------------- ------------ 
 
¶7. (C) Boris Gryzlov, Duma Speaker and Chairman of the 
party's executive committee, reprised his 2008 role as party 
heavy.  He lauded the party's success and criticized the U.S. 
for the dominant role its financial rating agencies play in 
the world which adversely affects Russian companies.  He also 
complained that global financial markets do not include the 
ruble in an international basket of reserve currencies.  When 
he said United Russia would engage in debates with the 
opposition in spite of it being "weak and immature," Putin 
turned to Medvedev and extended his hand to him (interpreted 
as congratulations that the party had adopted one of the 
president's suggestions); a beaming Medvedev shook it 
enthusiastically as the hall erupted in applause.  Gryzlov 
capped his presentation by officially unveiling the party's 
new ideology - "Russian conservatism."  The philosophy's 
basic principles and argument for its compatibility with 
"modernization" are that the party will "create the new (to 
meet modern challenges) while preserving the best (of the 
past)." 
 
¶8. (C) Independent sociologist (and now United Russia 
strategist) Olga Kryshtanovskaya told us immediately after 
the speeches that she was satisfied with how Gryzlov had 
presented the new ideology, which both she and Deputy Chief 
of the Presidential Administration Vladislav Surkov had 
helped craft (Ref D).  She was particularly pleased with how 
Gryzlov had balanced modernization and "conservatism." 
Effective Politcs Foundation President Gleb Pavlovskiy, 
himself involved in developing the new ideology, argued to us 
that "conservatism" was not at all at odds with Medvedev's 
modernization theme.  It would provide the needed "historical 
and cultural" context for economic modernization. 
 
Comment: Tandem on Display: Pie in Sky vs. Cabbage on Table 
--------------------------------------------- -------------- 
 
¶9. (C) As an opportunity to witness possible public fissures 
between Medvedev and Putin, the United Russia Congress was a 
non-event.  Putin reinforced his strength while conveying to 
his elite supporters that he remains in firm command, 
deserving of their continued loyalty.  Pavlovskiy told us 
immediately after the speeches that Medvedev and Putin 
displayed that they complement one another.  Medvedev is 
fulfilling his role as president: as a long-range thinker, 
the guarantor of the Constitution responsible for fair 
elections and a level playing field for all political 
parties.  Putin demonstrated that he is taking care of the 
economic interests of citizens, businesses and siloviki 
supporters.  Kryshtanovskaya told us that both Medvedev and 
Putin had played their respective roles "brilliantly," and 
that the demonstration of presidential approval of Gryzlov's 
official endorsement of debates with opposition parties had 
been "executed perfectly." Gryzlov atoned for his poor 
management of the car tax issue (Ref A). 
 
¶10. (C) Though rumors of personal and policy differences 
between their teams persist, Medvedev and Putin turned in 
another public display of ease with one another.  Medvedev's 
slap on the hand to regional leaders for over-zealous use of 
administrative resources means little now, and will mean 
 
MOSCOW 00002882  003 OF 003 
 
 
nothing in months ahead if those same United Russia officials 
stonewall the opposition on media coverage of debates.  In 
doling out federal funds to the regions, Putin exercises 
greater real influence than Medvedev.  The congress left the 
executive leadership of the party largely untouched, 
displacing no war-horses such as Moscow Mayor Luzhkov or 
Tatarstan President Shaimiyev, while bringing aboard 
powerhouses such as Russian Chamber of Commerce Chairman 
Shokhin and St. Petersburg Mayor Matviyenko.  In spite of 
Medvedev's call for United Russia to be an instrument for 
helping citizens realize their own interests, the congress 
proved once more that the party is Putin's instrument to be 
used to advance his present and future goals. 
Beyrle