US embassy cable - 05CAIRO3626

C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 003626 
 
SIPDIS 
 
E.O. 12958: DECL: 05/12/2015 
TAGS: PREL, PGOV, KPAL, KNNP, ECON, EG, IS, UNSC 
SUBJECT: RUSSIAN PRESIDENT PUTIN'S FIRST VISIT TO EGYPT 
FALLS SHORT ON SUBSTANCE 
 
Classified by ECPO Counselor John Desrocher for reasons 1.4 
(b) and (d). 
 
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Summary 
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1.  (C) The visit of Russian President Vladimir Putin April 
26-27 to Cairo, Egypt will be remembered more for its 
ceremonial and nostalgic aspects than for substantive 
agreements or strategic re-alignments.  Putin and Egyptian 
President Mubarak released a joint statement after their 
summit meeting while senior officials addressed efforts to 
strengthen bilateral commercial and cultural ties.  The 
Russians came hoping to sign an agreement on the peaceful 
uses of nuclear energy but were put off by an unprepared 
Egyptian side.  The two sides agreed to the opening of a 
privately-funded Russian university near Cairo, to the 
expansion of tourism, and to the sale of Russian aviation 
equipment.  Regarding Putin's public announcement while in 
Cairo of his desire to host an international conference on 
the Middle East Peace Process, the GOE listened politely, but 
is wary of Moscow's seriousness and fundamental ability to 
alter the status quo in the region.  End summary. 
 
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First Visit to Egypt, Region 
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2.  (C) On his first-ever visit to the Middle East, and as 
the first Russian President to visit Egypt in 41 years, 
Vladimir Putin's twenty-two hour overnight visit to Cairo 
attracted a good deal of media fanfare but fell short on 
substance, according to local contacts.  The first stop on 
his regional tour recalled in nostalgic terms the strategic 
relationship between the former Soviet Union and the Egypt of 
Arab nationalist Gamal Abdel Nasser during the 1950's and 
1960's.  Still, most local commentators agreed that the visit 
itself was more newsworthy than any agreements Putin and 
Mubarak approved during the short stay.  Russian Embassy 
Political Counselor Dmitri Dogadkin argued May 11 to poloff 
that the visit had been "a success," while admitting at the 
same time the visit's modest outcomes.  Putin, he said, 
wished to reciprocate the several visits to Russia made by 
Egyptian President Mubarak.  Furthermore, the Russian side 
believed that with fairly modest efforts, two-way trade with 
Egypt could be expanded. 
 
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Middle East Peace Process 
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3.  (C) Putin surprised both the Egyptians and the media with 
an announcement that he was prepared to host an international 
conference on the Middle East Peace Process in Moscow later 
in the year.  According to MFA Cabinet staff member Hala Al 
Ghanem, the Egyptian side politely expressed interest in the 
idea but wished to have more details on the proposal before 
committing further.  Putin's public statements made later in 
Israel suggesting that the conference should be held only at 
the "experts" level, she said, left the impression that the 
Russian President was not entirely serious or engaged in this 
portfolio.  Russia, she continued, recognized that it no 
longer played a significant role in the region, and wishes 
now to regain some of its past influence. 
 
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Putin-Mubarak Joint Statement 
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4.  (C) Following their April 26 meeting (initially 
one-on-one with interpreters followed by an expanded 
meeting), the two leaders released a joint declaration 
entitled "On Reinforcing of Friendly Relations and 
Partnership Between the Russian Federation and the Arab 
Republic of Egypt."  The five-page, 16-point declaration 
contains Russian consideration of Egypt as a "worthy 
candidate" for a seat on an expanded UN Security Council, 
support for a WMD-free Middle East, a condemnation of 
terrorism, support for the unity and territorial integrity of 
Iraq, agreement to coordinate on reaching a lasting peace in 
the Middle East, and agreement to further enhance 
parliamentary, military, social, economic, and technical ties 
between the two countries.  The document further references a 
decision to establish a joint high-level follow-up mechanism 
of deputy foreign ministers. In addition to the joint 
statement, Dogadkin said, the two leaders discussed the 
regional situation, Iraq, Syria and Lebanon, as well as 
reform in Egypt and the region. 
 
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Russian Egyptian Bilateral Projects 
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5.  (C) According to Dogadkin, Russian exports to Egypt total 
only USD 800 million, while imports from Egypt total USD 600 
million (USD 550 million of which consists of money spent by 
Russians on tourism in Egypt).  The Russian side believes it 
can both sell more to Egypt in the areas of machinery and 
technology, and increase tourism by Russians to Egypt. 
Already, Dogadkin said, Russia is pressing to overtake Italy 
as the second largest national group of visitors to Egypt, 
surpassed only by Germany.  Russia will try to promote 
expansion of existing joint production work in the automobile 
and truck markets, he said.  The Russian side had also 
intended to sign a joint agreement during the Putin visit on 
the peaceful uses of nuclear energy, but arrived to find that 
the Egyptians were still in the process of reviewing the 
technical details of the proposed agreement.  Dogadkin, 
stating that "the ball is now in Cairo's court, was unable to 
describe the agreement in any more detail than to qualify it 
as focused on research and technical exchanges.  Russia has 
no intention, he noted, to assist with the building of 
nuclear power plants such as in Iran.  Dogadkin said that two 
sides agreed to an Egyptian proposal to establish a 
privately-funded Russian-Egyptian university in Cairo.  The 
two sides, he also noted, would look to increase their 
cooperation in the military sphere with Russia hoping to 
service and upgrade military hardware from the former Soviet 
Union still in the Egyptian armory.  A Russian firm, Dogatkin 
said, finalized a deal during the visit to sell five 
commericial aviation jet engines (Pratt-Whitney) to a private 
Egyptian cargo firm owned by Ibrahim Kamel. 
 
 
Visit Embassy Cairo's Classified Website: 
http://www.state.sgov.gov/p/nea/cairo 
 
You can also access this site through the 
State Department's Classified SIPRNET website. 
 
GRAY