US embassy cable - 04BRUSSELS3067

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 003067 
 
SIPDIS 
 
DEPT FOR EUR/ERA, EUR/RUS AND EUR/UMB 
 
E.O. 12958: DECL: 07/19/2009 
TAGS: PREL, PGOV, MD, RS, EUN, USEU BRUSSELS 
SUBJECT: BRIEF READOUT OF EU-RUSSIA POLITICAL DIRECTORS 
MEETING 
 
Classified By: USEU POLOFF LEE LITZENBERGER; REASONS 1.4 (B,D) 
 
1.  (C) Summary.  According to an EU official present for the 
July 16 EU-Russia Political Directors' meeting in Moscow, the 
EU raised Yukos and Moldova.  On Yukos, Deputy FM Chizhov 
agreed that foreign investment will suffer, but said it was a 
criminal case and will proceed.  On Moldova, Chizhov said 
Moscow was focused on the five-sided negotiations (which he 
said were at a "fragile" state) said it was a "pity" the 
Kozak plan did not work, and criticized the OSCE and HOM Hill 
for not coordinating recently proposed confidence building 
measures with Moscow.  The EU pitched the need for pentagonal 
talks; Chizhov was not opposed in principle, but said now was 
not the time and said Moscow might prefer meeting bilaterally 
with the EU and US instead.  The EU, convinced Chizhov is 
just stalling, is considering calling for a pentagonal 
meeting, which it would offer to host.  Our contact said that 
Moscow is slowly getting more comfortable with putting 
neighboring state issues on the agenda, but is not interested 
in a real dialogue.  End Summary. 
 
2.  (C)  On July 19, EU Council Secretariat Russia Officer 
Carl Hallergard offered a readout of the EU's July 16 
Political Directors meeting with Russia in Moscow, which he 
attended.  The EU delegation, led by Dutch MFA Political 
Director Hugo Siblesz, met with a Russian delegation headed 
by Deputy Foreign Minister Chizhov, the EU's usual 
interlocutor.  Hallergard said the talks resulted in no major 
progress on any issue; they were an opportunity to exchange 
views.  Hallergard said the MFA was consumed with the ongoing 
reorganization of the ministry:  Chizhov announced he would 
be staying on; but there was still no word on who Russia's 
new Ambassador to the EU might be. 
 
Yukos:  It's a Criminal Case 
------------- 
3.  (C)  As Siblesz told A/S Jones he would do at last week's 
EU-US Political Directors meeting (reftel) he raised Yukos, 
noting that the case would damage Russia's ability to attract 
direct foreign investment.  Hallergard said that Chizhov's 
one-line response was, "We agree it will hurt investment. But 
it's a criminal case and we will pursue it." 
 
Moldova:  EU pitches pentagonal talks 
-------------- 
4.  (C) Hallergard said Siblesz also made a pitch for 
reviving the proposed pentagonal talks with the EU, US, OSCE, 
Russia and Ukraine.  The Russians said they were not against 
consultations, or even a meeting in this format, but "this 
was not the time" and said Moscow might prefer instead to 
meet bilaterally with the EU or US.  "Nobody is more 
interested in seeing a solution to the Transnistrian conflict 
than Russia," Chizhov said.  He then cautioned however that 
the current five sided negotiations are at a "fragile" state, 
and it was important that no one take any "destabilizing 
steps." Chizhov was very critical of OSCE HOM Hill, whom he 
blamed for not coordinating with Russia and Ukraine on the 
large packet of confidence building measures he recently 
shared with Moldovan and Transnistrian officials.  Hallergard 
said that Chizhov claimed that the Transnistrians used the 
package as an excuse not to attend the last meeting, saying 
they needed time to study Hill's proposals.  This kind of 
action, Chizhov said, "distracts" the parties.  (Comment. 
Hallergard said the EU is now thinking of calling for a 
meeting, having concluded that Moscow is just stalling.  End 
Comment.) 
 
Kozak II? 
--------- 
5.  (C)  Hallergard said the Russians gave no indication that 
they were working on a "Kozak II" plan for resolving the 
Transnistrian crisis, but added quickly that this does not 
mean they may not be working on one.  Chizhov told the EU 
that it was "a pity the Kozak plan did not work." Chizhov 
said the Russians had met with Moldovan FM Stratan on July 
15, and had focussed talks on the need to restore 
negotiations. 
Chizhov said they had also discussed the idea of a formal 
Moldovan-Romanian "basic treaty" to guarantee Moldova's 
borders, and commented that the EU could help on this. 
Hallergard says this was not a new proposal, but something 
the Russians have raised several times in the past.  The EU 
also expressed concern about the recent Transnistrian 
decision to close a Moldovan school in Transnistria; the 
Russian side did not respond. 
 
EU-Russia dialogue still thin on substance 
------------- 
6.  (C)  Hallergard said the Russians appeared slightly more 
comfortable talking to the EU about its near abroad.  In 
addition to the discussion on Moldova, the EU briefed Moscow 
on its recent summit with Ukraine; Belarus did not come up. 
On Moldova, the EU is eager to talk to Russia about border 
issues and trafficking concerns, Voronin's proposed Stability 
Pact, and on EU negotiation of an Action Plan with Moldova 
under its European Neighborhood Policy initiative.  But, 
Hallergard concluded, while Russia seems to be tolerating 
putting these items on the agenda, there is no interest on 
Moscow's part for real engagement or dialogue. 
 
McKinley