VZCZCXRO0493
PP RUEHIK
DE RUEHMO #2958/01 3421404
ZNR UUUUU ZZH
P 081404Z DEC 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5612
INFO RUEHXE/EASTERN EUROPEAN POSTS COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHAAA/WHITE HOUSE WASHDC

UNCLAS SECTION 01 OF 03 MOSCOW 002958 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ELTN ECON PREL ETRD RS
SUBJECT: SECRETARY OF TRANSPORTATION TALKS TRAINS, PLANES, 
AND ROAD SAFETY IN RUSSIA 
 
MOSCOW 00002958  001.2 OF 003 
 
 
Summary 
------- 
¶1. (U) November 18-20, Secretary of Transportation Ray LaHood 
led the USG delegation to the First Global Ministerial 
Conference on Road Safety.  Officials from the Department of 
Transportation's (DOT) National Highway Transportation Safety 
Administration (NHTSA), U.S. Centers for Disease Control and 
Prevention (CDC), Department of State, and the Millennium 
Challenge Corporation (MCC) made up the USG delegation.  In 
addition to the Ministerial, Secretary LaHood also attended 
the 200th Anniversary Celebrations of the Ministry of 
Transportation of the Russian Federation.  Between the two 
events, the Secretary also met with President Dmitri 
Medvedev, Minister of Transportation Igor Levitin, President 
of Russian Railways (RZD) Vladimir Yakunin, U.S. business 
representatives, and students from two of Russia's 
transportation universities.  Site visits included Russia's 
high-speed train and General Electric's (GE) new Technology 
Center.  The visit also provided the Secretary with many 
press opportunities in which to emphasize his message on road 
safety and to speak of new areas in which the U.S.-Russia 
bilateral relationship can grow.  By discussing topics not 
usually on the bilateral agenda, such as transportation and 
road safety, Secretary LaHood's visit marked an important 
step in the continuation and expansion of the new re-set 
process in U.S.-Russia relations. 
 
Ministerial 
----------- 
¶2. (U) On November 18-20, Secretary of Transportation Ray 
LaHood led a delegation of 12 USG officials to Moscow to 
attend the First Global Ministerial on Road Safety 
(Ministerial), organized by the Russian Ministry of Interior 
and co-chaired by the World Health Organization.  The USG 
delegation included high-level DOT and NHTSA representatives, 
the Deputy Director of CDC, and MCC and State Department 
representatives.  Secretary LaHood spoke at the Ministerial 
on November 19, presenting USG efforts to reduce distracted 
driving.  The Ministerial was attended by health and 
transportation officials from approximately 150 countries, 
with most represented at the Minister level. 
 
Meeting with the Minister of Transportation 
------------------------------------------- 
¶3. (SBU) On November 18, Secretary LaHood, accompanied by 
Ambassador Beyrle, had a bilateral meeting with Russian 
Minister of Transportation Igor Levitin.  During the meeting 
Secretary LaHood stressed his desire to improve U.S. 
cooperation with Russia on transportation issues, especially 
road safety.  He proposed the creation of a working group of 
U.S. and Russian experts which could discuss further 
cooperation on a range of transportation issues ) including 
toll roads, ports, railroads and civil aviation.  Ambassador 
Beyrle offered that this working group would fit in well with 
the Presidents' Bilateral Commission and suggested that 
transportation become a sub-working group under the Business 
Development and Economic Relations Working Group.  Minister 
Levitin agreed and, noting that previous U.S.-Russian 
cooperation on transportation had not been very active, 
stated that he will organize a visit to the U.S. and give the 
green light to his ministry's officials to increase 
cooperation with their U.S. counterparts.  Secretary LaHood 
welcomed this decision and agreed to send the Minister 
additional information on the U.S. National Rail plan, the 
U.S. toll road system, and additional information on road 
safety.  (Note: On November 20, Ministry of Transportation 
staff approached the embassy to request starting discussions 
of the work of the sub-group. End Note.) 
 
¶4. (SBU) During the meeting Minister Levitin noted that 
President Medvedev wants to attract foreign investment and 
new technology to Russia and has made cooperation with 
foreign partners a high priority.  He then presented several 
new projects his ministry is pursuing that could benefit from 
foreign investment.  He noted the development of high-speed 
rail, and the initial steps taken in working with the German 
company Siemens on the Moscow-St. Petersburg line.  The 
Minister stressed that Russia will need significant 
investment in developing its high-speed rail system and 
looked forward to greater engagement with the U.S. in this 
sector.  Secretary LaHood responded that President Obama has 
introduced a bill to fund USD 8 billion in transportation 
infrastructure in the U.S., including to jump-start 
high-speed rail.  Minister Levitin also mentioned the need 
for modernizing locomotive engines on conventional trains, 
adding that the GOR has been cooperating with General 
Electric (which is assembling engines in Kazakhstan.) 
Minister Levitin then noted that the GOR would soon put out 
 
MOSCOW 00002958  002.2 OF 003 
 
 
tenders for the next stages of Sheremetyevo Airport 
renovation (for expansion from 15 to 35 million passengers by 
2015) and invited U.S. companies to participate. 
 
¶5. (SBU) Switching to aviation, the Minister noted the 
excellent relations his ministry has with Boeing.  He cited 
Boeing as a prime example of the type of foreign investment 
and technology transfer Russia seeks.  Minister Levitin 
mentioned the polar air routes that enable commercial 
carriers to fly passengers more quickly from North America to 
Asia at significant cost savings.  He added that Russia wants 
to increase the capacity of these routes so that they can be 
more intensively utilized by U.S. airlines.  Minister Levitin 
also explained Russia's current efforts to develop the port 
of Murmansk to facilitate cargo transport from North America. 
 Secretary LaHood noted that better use of ports ) and 
"marine highways" ) would help alleviate road congestion. 
 
¶6. (SBU) Speaking frankly about road infrastructure, Minister 
Levitin acknowledged that Russia has "major problems." 
Russia has 45 million cars, but its road system is not well 
developed.  The Minister stated that the GOR will begin to 
construct toll roads next year for the first time ever and 
wanted to benefit from the U.S. experience in this area.  He 
planned to send officials from this ministry to meet with 
U.S. experts next year. 
 
¶7. (U) After the meeting, Minister Levitin invited Secretary 
LaHood to watch the end of a concert/award ceremony for the 
students of all of Russia's various transportation 
universities.  At the Minster's invitation, Secretary LaHood 
took the stage, presented one of the awards and delivered 
short, impromptu remarks about the importance of students in 
the future of transportation. 
 
Trains, Planes and Students 
--------------------------- 
¶8. (SBU) On November 19, Secretary LaHood visited Russia's 
new high-speed Sapsan train, driven down especially for the 
Secretary's visit, which will start regular service between 
Moscow and St. Petersburg in later this month.  President of 
RZD Yakunin gave the Secretary a tour of the German-built 
train, parked on one of the platforms of the Rizhsky train 
station, and presented the future of high-speed rail 
passenger service in Russia.  While touring an exhibition on 
the high-speed train and riding a train simulator, Yakunin 
and the Secretary conducted discussions on the future of 
high-speed rail in both of their countries. 
 
¶9. (SBU) Then Secretary LaHood visited General Electric's 
(GE) newly opened Energy and Transportation Engineering 
Center in Moscow, where aircraft and train engines are 
designed and developed.  Ron Pollett, President and CEO of GE 
Russia, provided an overview of GE's wide range of activities 
in Russia -- energy, healthcare, finance, aviation, media and 
transportation.  Highlighting GE's 90-year history in the 
market, Pollett discussed Russia's strategic importance to 
the company, focusing particularly on opportunities in the 
railroad sector.  Secretary LaHood then toured the design 
center and spoke with engineers. 
 
¶10. (U) On November 20, Secretary LaHood participated in a 
roundtable with 40 students from the Moscow Power Engineering 
Technical University and the Moscow State Automobile and Road 
Technical University.  The students' questions focused on 
road safety, hybrid vehicles, the "Cash for Clunkers" 
program, and other issues pertaining to transportation policy 
in the United States.  The Secretary used the roundtable as 
an opportunity to highlight to the students the dangers of 
distracted driving. 
 
Meetings with Business 
---------------------- 
¶11. (SBU) On November 20, 2009, the American Chamber of 
Commerce (AmCham) in Moscow hosted a breakfast in honor of 
Secretary LaHood, with 30 members of the business community 
participating.  Companies taking part in the event included 
United Airlines, Delta Airlines, Boeing, GE, Amsted Rail and 
others.  After Secretary LaHood delivered brief remarks on 
infrastructure investment in the U.S. funded by the America 
Recovery and Reinvestment Act, member companies, mainly in 
the transportation sector, highlighted their achievements as 
well as market challenges they face in Russia.  The principal 
message to Secretary LaHood was that while U.S. companies 
have accomplished a great deal in this market, the business 
environment is not an easy one in which to maneuver. 
Business representatives added that the Russian Government 
should be challenged to do more (in advance of WTO accession) 
 
MOSCOW 00002958  003.2 OF 003 
 
 
to make this a friendlier and more transparent market for 
international investors. 
 
¶12. (SBU) Secretary LaHood also held a private meeting with 
Sergey Kravchenko, President of Boeing Russia.  The two 
discussed the role of Boeing's Moscow Design center in the 
development of the 787 Dreamliner, as well as modifications 
to the 747 and 777 lines.  Kravchenko also raised Boeing's 
submission of a bid to provide up to 50 737-800s to RosAvia, 
a new government-owned airline, and highlighted USG advocacy 
in support of the bid.  He also told the Secretary of 
Boeing's role in helping to develop Russia's aviation field 
by opening a pilot training center in Moscow and helping to 
develop and expand the polar aviation routes. 
 
200th Anniversary Celebration and Meeting President Medvedev 
--------------------------------------------- --------------- 
¶13. (U) As the final event of the visit, Secretary LaHood 
attended the opening ceremony of the 200th Anniversary 
Celebration of the Ministry of Transportation, where he gave 
congratulatory remarks.  The ceremony was attended by the 
Minister of Transportation, Deputy Prime Minister Sergey 
Ivanov, and Head of the Presidential Administration Sergey 
Naryshkin. At the end of the ceremony, Secretary LaHood, 
along with the other 24 foreign transportation ministers, met 
with President Medvedev at the Kremlin.  During the meeting, 
at which Secretary LaHood spoke, President Medvedev said that 
efforts to improve road safety must include not only punitive 
sanctions and fines but also improvements to the quality of 
roads and modernizing of road infrastructure.  He added that 
"Russia has approved a national strategy to increase road 
traffic safety, and a federal targeted program aimed at 
reducing by 2012 the number of road accidents by 33% has been 
working since 2006, but still the situation in this sphere 
remains very hard." 
 
Press 
----- 
¶14. (U) Secretary LaHood held press availabilities after the 
meeting with Minister Levitin, the Ministerial conference, 
the high-speed train visit, and the meetings with AmCham and 
the university students.  His visit was covered by local, TV, 
radio and print media as well as international wire services 
such as the Associated Press.  His most extensive interview 
was with Ekho Moskvy radio station, where for 30 minutes he 
discussed the Ministerial, how road safety is promoted in the 
United States, as well as U.S. programs to fund new roads, 
develop rail transport, and promote the safety of public 
transportation. 
 
Comment 
------- 
¶15. (SBU) Secretary LaHood's visit marked an important step 
in the continuation and expansion of the new re-set process 
in U.S.-Russia relations.  By discussing topics not usually 
on the diplomatic bilateral agenda, such as transportation 
and road safety, Secretary LaHood very effectively 
demonstrated how the U.S. and Russia can cooperate in a wide 
variety of areas to the mutual benefit of both our countries. 
 The visit also revealed potential opportunities for U.S. 
companies to participate in Russia's infrastructure 
development and Secretary LaHood used his meetings with 
Russian officials to promote U.S. business' ability to do so. 
 
¶16. (U) Department of Transportation cleared on this cable. 
Beyrle