US embassy cable - 05YEREVAN575

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000575 
 
SIPDIS 
 
DEPT FOR EUR/CACEN, EUR/ACE 
 
E.O. 12958: DECL: 04/01/2025 
TAGS: PREL, ECON, ENRG, AM, RU 
SUBJECT: PUTIN VISIT DEMONSTRATES KOCHARIAN'S TIGHT HOLD ON 
GOAM'S RELATIONS WITH MOSCOW 
 
REF: A. A) YEREVAN 532 
 
     B. B) YEREVAN 500 
 
Classified By: Ambassador John Evans for reasons 1.5 (b,d). 
 
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SUMMARY 
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1. (C) President Robert Kocharian's spin doctors continue to 
portray the March 24-25 visit of Russian President Vladimir 
Putin as the most important official visit for the GOAM in 
recent memory.  One week after Putin's whirlwind stop, 
however, GOAM contacts outside Kocharian's inner circle are 
hard pressed to tell us what (if any) deliverables came as a 
result of the trip.  Despite indications from both sides that 
the 24-hour itinerary would focus on a broad range of 
economic discussions, the Armenians appear to have resisted 
Russian pressure on economic quesitons, while pulling out all 
the stops in terms of public professions of loyalty and 
friendship.  It appears that Kocharian himself is managing 
the question of Russian involvement in the Iran-Armenia gas 
pipeline, and possibly other pending investments.  End 
Summary. 
 
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GETTING EVERY MINUTE'S WORTH 
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2. (C) President Robert Kocharian's spin doctors continue to 
portray the March 24-25 visit of Russian President Vladimir 
Putin as the most important official visit for the GOAM in 
recent memory.  After successfully pressuring the Russians to 
agree to a Putin trip (ref b), Kocharian's team made sure 
that the city still bears the marks of the trip.  Billboards 
announcing the opening of the "Year of Russia" in Armenia 
(the ostensible reason for the trip) line Yerevan's avenues 
and the jumboscreen television on the capital's main square 
carries a continuous loop of Kocharian and Putin shaking 
hands and cordially making their way about town.  Publicity 
packets, including photos of the two leaders, were sent to 
regional governors and GOAM almost immediately following the 
trip, detailing its "great successes." 
 
3. (C) Russian diplomats in Yerevan have followed a similar 
strategy.  Oleg Korobkov, Political Counselor of the Russian 
Embassy, was quick to portray the visit during meetings at 
the National Assembly on March 29-30 as "filled with 
initiatives and information." 
 
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MINISTRIES PARTICIPATE BUT REPORT LITTLE BEYOND PROTOCOL 
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4. (C) One week after Putin's whirlwind stop, GOAM contacts 
outside Kocharian's inner circle were hard pressed to tell us 
what (if any) deliverables came as a result of the trip.  MFA 
sources told us that Foreign Minister Vartan Oskanian saw 
"nothing tangible" coming from the visit other than 
reassurances by the Russians of their interest in the region. 
 Presidential Senior Economic Advisor Vahram Nercissiantz, 
who participated in all but one of the meetings on Putin's 
schedule, told us on March 28 that there had not even been an 
official readout on the meetings and reportedly said there 
was little discussion beyond what was in the press reports on 
economic issues. 
 
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PIPLELINE, BUSINESS DISCUSSIONS BEHIND CLOSED DOORS 
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5. (C) According to reports from Deputy Minister of Energy 
Iosef Isayan, Kocharian had not briefed the Ministry on 
expected discussions related to the Iran-Armenia gas pipeline 
as late as March 31.  Isayan said the two sides did discuss 
the issue, however, during the one-hour block of time they 
spent outside of formal meetings or press events.  The final 
press conference of March 29 (dominated by Putin's comments 
on the unfolding events in Kyrgyzstan) did not include 
specific mention of the pipeline.  In an April 1 meeting, 
Minister of Energy Armen Movsesian told us that no new 
information about Gazprom's bid to build an in-country 
extension of the pipeline came out of the meeting.  He did 
comment that no party has seriously talked about extending 
the pipeline to Georgia, adding that "Russia doesn't want it, 
you (the U.S.) wouldn't want it:  it is hard to see what is 
in it for us." 
 
6. (C) Both Putin and Kocharian made repeated mention, 
however, of the opening of the Kavkaz-Poti ferry link as 
evidence of increased trade ties between the countries. 
Putin did make a somewhat vague pledge during the press 
conference to continue promoting Russian private businesses' 
role in Armenia's ongoing privatization of the energy and 
banking sectors.  Comment:  Putin's comment, on which he 
would not elaborate, left analysts wondering if the comment 
was made for the benefit of Antoliy Chubays and Ara 
Abrahamyan or if it was an indication of a more substantive 
deal in the works with Kocharian.  End comment. 
 
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PUTIN GETS INTO THE WEEDS WITH CATHOLICOS 
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7. (C)  During a meeting between Putin and Catholicos Karekin 
II (at which only two notetakers were present), Putin 
reportedly surprised the Catholicos by calling on him to 
pressure the GOAM (specifically Prime Minister Andranik 
Markarian and Yerevan municipality officials) to release a 
plot of land intended as the site for a Russian Orthodox 
church in Yerevan.  The Catholicos' Senior Advisor told us 
that Putin framed the request as "the least Armenia could do" 
in light of Russia's "good care" of the large Armenian 
population in Moscow and other Russian cities. 
 
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COMMENT:  KOCHARIAN IN CHARGE OF THIS PORTFOLIO 
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8. (C) Beyond the hype and posturing about cultural bonds, 
Putin's trip confirmed that most Armenia watchers already 
suspected:  Kocharian -- and Defense Minister Sargsyan -- 
have a tight grip on the GOAM relationship with Moscow. 
Inside the GOAM, top officials whose portfolios include 
Russia are still unsure what Kocharian and Putin discussed. 
Outside the GOAM, political leaders who identify closely with 
Russia are at a loss for any information regarding the visit 
and have been virtually silent during meetings and press 
conferences. 
EVANS