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P 231602Z DEC 09
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 3047
INFO RUEHMO/AMEMBASSY MOSCOW PRIORITY 4622
RUEHFL/AMCONSUL FLORENCE PRIORITY 3942
RUEHMIL/AMCONSUL MILAN PRIORITY 0380
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RUEHNO/USMISSION USNATO PRIORITY 3068
RUEKJCS/JOINT STAFF WASHDC PRIORITY
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RUEKJCS/SECDEF WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 ROME 001409 
 
SIPDIS 
 
E.O. 12958: DECL: 12/22/2019 
TAGS: PREL ENGR PGOV OSCE NATO AF RS IT EUN
SUBJECT: ITALY-RUSSIA SUMMIT HIGHLIGHTS EVER STRONGER 
BILATERAL TIES 
 
Classified By: Political Minister Counselor Barbara Leaf for Reasons 1. 
4 (B) and (D) 
 
SUMMARY 
-------- 
 
¶1.  (SBU)  MFA officials view the December 3 summit between 
PM Berlusconi, Russian President Medvedev and numerous 
cabinet minsters a showcase for the bright future of 
Italian-Russian relations.  Historically strong economic, 
political and cultural ties between Italy and Russia were 
reinforced by the signing of 8 intergovernmental agreements 
and 10 contracts among private companies.  FM Frattini 
stressed that Russia is an essential partner in guaranteeing 
Europe's security and achieving international stability and 
that Medvedev's European security proposals would be closely 
studied by the GOI and other EU governments. At an 
Italy-Russia Forum for Dialogue preceding the Summit, 
journalists, academics, and political, business, and civil 
society leaders discussed enhancing cultural, political and 
economic cooperation. End summary. 
 
 
RUSSIA ESSENTIAL TO EUROPEAN SECURITY AND INTERNATIONAL 
STABILITY 
--------------------------------------------- --------- 
 
¶2.  (C) In the aftermath of the December 3 Russia-Italy 
summit, MFA Russia Desk Political Advisor Fabio Cristiani 
told us that the GOI had not begun to assess the Russian 
Draft European Security treaty, the so-called Medvedev 
proposals.  In his view, the era of Russian isolation is over 
and it is inevitable that Russia will draw closer to Europe, 
especially Italy, Germany and France.  He noted, however, 
that it would be illogical to expect NATO to change according 
to Russian expectations or conditions.  Cristiani questioned 
whether Russia currently has the means to improve its 
security structure or defense.  Commenting on Article 1 of 
the Treaty, Cristiani said it seems directed at NATO and 
implies that Russian security is inextricably linked to that 
of all NATO countries.  While Article 8, in seeming 
contradiction, suggests (paragraph 1) that Russia wants to be 
protected from NATO; an apparent allusion to Russia's NATO 
enlargement bugbear. In Cristiani's view, Paragraph 2 implies 
Russia wants to condition NATO, but simultaneously be 
protected by it, a plausible position given the dire state of 
Russia's economy.  Cristiani noted that Berlusconi did not 
discuss the draft security proposals in his meeting with 
Medvedev, but he voiced his expectation the draft Treaty 
would be a major focus of NATO, the EU, and the OSCE in the 
coming year. 
 
 
SUMMIT CONTEXT ENHANCES BUSINESS DEALS' SIGNIFICANCE 
--------------------------------------------- -- 
 
¶3.  (C)  MFA Russia Desk Director Roberto Orlando told us 
that the agreements signed between private sector companies 
gained added importance by being concluded at an official 
GOI-GOR summit and that while the Summit merely confirmed the 
existing excellent state of GOI-GOR relations, the media 
impact in Italy and Russia was significant.  He noted that in 
Russia there were even complaints that too many ministers 
were gone all at once. 
 
¶4.  (C)  Stressing that he did not know details of the 
agreements between private sector companies and ministries, 
Orlando mentioned that Finmeccanica had signed an agreement 
with the Russian Ministry of Transportation on implementing 
(non-military) security in Russian firms, and one on 
producing cars for the St. Petersburg tram system. Italian 
banks Intesa San Paolo and Mediobanca signed agreements with 
Russian Vneshtorg Bank to develop SMEs and finance industrial 
projects.  Alitalia-Aeroflot signed a codesharing agreement 
in which Alitalia will support Aeroflot flights to South 
America, while Aeroflot will do the same for Alitalia flights 
to Asia. 
 
¶5. (C) During the Summit, Eni,s CEO Paolo Scaroni and 
Gazprom,s Chairman Alexey Miller also signed an agreement 
for the formal entry of France,s EdF into the South Stream 
gas project.  An Eni press statement said the agreement was 
signed in the presence of Russian President Medvedev and 
 
ROME 00001409  002 OF 003 
 
 
Italian PM Berlusconi. At a separate December 10 meeting with 
the Ambassador and DCM, Scaroni described it as an agreement 
in principle. He said that the details over EdF,s 
participation in South Stream, such as the percentage of its 
participation and any additional conditions, will be worked 
out in the next few months. Scaroni added that South Stream 
will be a costly project and estimated that the Black Sea 
portion of the pipeline alone will cost 14 billion (Note: It 
was not clear if he meant Euros or Dollars). Nevertheless, he 
indicated that despite the high cost Gazprom had the means of 
financing South Stream. Scaroni explained that Gazprom 
extracts gas at a cost of 5 Euros per cubic meter and sells 
it in Europe for 200 Euros per cubic meter.  He said that 
Gazprom will pay for South Stream with these gas profits. 
Scaroni stated that EdF,s participation in South Stream was 
the only agreement signed by Eni during the Italy-Russia 
summit. 
 
¶6.  (C)  An MOU between the Italian and Russian Justice 
ministries outlined exchange activities, including GOI 
assistance to Russia in fighting organized crime and 
increased information sharing.  In preparation for 
Italian-Russian Culture Year 2011, the ministers of culture 
signed an agreement planning for exchanges, exhibitions and 
promotion of Russian and Italian language study in each 
country's schools and universities.  The agreement also 
provided for mutual recognition of of university degrees and 
qualifications.  Orlando noted that Russian Defense Minister 
Serdyukov did not attend the Summit and that Italian Economy 
and Finance Minister Tremonti was the only minister present 
who did not sign an agreement with his Russian counterpart. 
 
 
FORUM FOR DIALOGUE HIGHLIGHTS COOPERATION 
------------------------------------ 
 
¶7.  (C)  A December 2 "Italy-Russia Forum for Dialogue" 
convened Italian and Russian business, civil society, and 
religious leaders, as well as journalists, academics, and two 
Russian regional government leaders.  Three panels discussed 
"Political cooperation in the common European space," 
"Economic cooperation and opportunities after the crisis" and 
"Cultural cooperation."  FM Frattini introduced the political 
cooperation panel; the economic presentations concluded with 
remarks by Confindustria President Emma Marcegaglia, Economic 
Development Minister Scajola and Russian Minister of Industry 
and Commerce Khristenko.  Culture Minister Bondi and 
Education Minister Gelmini addressed the cultural cooperation 
panel which focused on the role of universities, media, and 
the Churches in EU integration. 
 
FRATTINI PLUGS FOR POLITICAL STRATEGIC RELATIONSHIP 
-------------------------------------------- 
 
¶8.  (C)  Beginning his remarks by rhetorically asking why PM 
Berlusconi expends so much energy on relations with Russia, 
Frattini answered his own question the simplistic, mistaken 
response was economic interests. Noting that the world was 
becoming too Asia-Pacific oriented, Frattini characterized 
Russia as an indispensable political interlocutor for 
achieving international strategic stability and urged 
Europeans to be more  "ambitious in inviting Russia to be 
more ambitious." Frattini called on all 27 EU countries to 
"coalesce around advancing an EU-Russian strategic agreement" 
in the coming year and also to establish EU-Russia free trade 
and visa-free zones. 
 
¶9.  (C)  Frattini noted that the Obama administration's 
"reset" of U.S.-Russia relations had opened a window of 
opportunity which Italy strongly supported.  Furthermore, 
NATO regards Russia as a partner, not an adversary, in 
combating terrorism, meeting challenges in Afghanistan, and 
convincing Iran to accept changes in its nuclear program. 
 
COMMENT 
------ 
 
¶10.  (C)  The Summit and Forum for Dialogue were given ample 
media coverage, highlighting to the Italian and Russian 
publics the strength of cooperation between the two 
governments.  On the other hand, from what we know about the 
agreements signed, many details of their implementation still 
need to be worked out.  On Medvedev's draft security 
 
ROME 00001409  003 OF 003 
 
 
proposals, Italy is unlikely to form a position in favor of 
or against any of them except in close consultation with its 
NATO and EU colleagues.  Frattini has been careful to 
underline that, however interesting or welcome, Russian 
security proposals cannot supplant existing NATO and OSCE 
structures.  End comment. 
THORNE