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Viewing cable 08VLADIVOSTOK68, RUSSIAN FAR EAST: CHUKOTKANS WORRY AS THEIR "HERO,"

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Reference ID Created Released Classification Origin
08VLADIVOSTOK68 2008-07-09 07:21 2011-08-24 01:00 UNCLASSIFIED Consulate Vladivostok
P 090721Z JUL 08
FM AMCONSUL VLADIVOSTOK
TO SECSTATE WASHDC PRIORITY 0974
INFO MOSCOW POLITICAL COLLECTIVE
AMCONSUL VLADIVOSTOK
UNCLAS VLADIVOSTOK 000068 
 
 
E.O. 12958: N/A 
TAGS: PGOV PINR RS
SUBJECT: RUSSIAN FAR EAST: CHUKOTKANS WORRY AS THEIR "HERO," 
BILLIONAIRE ROMAN ABRAMOVICH, STEPS DOWN AS GOVERNOR 
 
REF: 2007 VLADIVOSTOK 095 
 
 
1.  Summary.  On July 3, President Dmitriy Medvedev agreed to 
accept the voluntary resignation of longtime Chukotka Governor 
Roman Abramovich and appointed Vice Governor Roman Kopin as 
acting Governor until a permanent replacement is named.  Under 
billionaire Abramovich, Chukotka has gone from being one of 
Russia's most impoverished regions to one of its most 
successful.  This has been due in no small part to the 
Governor's investment of some of his personal fortune in the 
region.  Abramovich had long sought to step down from the 
governorship, but former President Putin consistently denied his 
requests.  With his resignation, Chukotkans worry whether their 
run of good luck will continue.  End Summary. 
 
-------------------- 
A Hero Leaves Office 
-------------------- 
 
2.  Roman Abramovich, 41, has been Governor of Chukotka since 
December 2000, when 91 percent of the population of this remote 
region bordering Alaska voted for him.  Following Russia's 
abolishment of direct gubernatorial elections, President 
Vladimir Putin reappointed Abramovich to a second term in 2005. 
For the past several years, however, it has been widely known 
that Abramovich has been seeking to step down as Governor of 
Russia's northeasternmost territory, describing the job as "too 
expensive." In 2005 then again in 2007, his formal resignation 
requests were denied by former President Putin.  Rumor has it 
that after the most recent rejection Abramovich made a deal with 
the Kremlin to stay on just one more year -- according to one 
version, in order to complete important social and economic 
projects, but according to another, to help deliver the region 
to the Kremlin's favored presidential candidate in 2008. 
 
3.  Abramovich, one of Russian's wealthiest businessmen (worth 
23.5 billion USD, according to Forbes magazine), has served not 
merely as Governor but as benefactor to impoverished Chukotka, 
turning it into the RFE's most prosperous territory.  In 2008, 
Chukotka's gross regional product (GRP) is predicted to be 23.3 
billion rubles (just over 1 billon USD), 3.4 times higher that 
in 2001.  Budget revenues increased 7.3 times over the past 
eight years, from 1.65 billion rubles (72 million USD) in 2000 
to 12.02 billion rubles (525 million USD) in 2008.  Per capita 
monthly income increased over the same period from 8,216 rubles 
(360 USD) to an expected 36,000 rubles (1,600 USD) this year. 
Federal subsidies also dropped from 75 to 47 percent under his 
leadership, and unemployment decreased twofold. 
 
4.  Almost all of this revenue is due, in one way or another, to 
Abramovich's direct intervention.  Simply by registering his 
business in Chukotka, Abramovich delivered 30 million USD a year 
to the region in income tax payments.  He has also personally 
underwritten a broad array of social, cultural, medical, and 
educational programs.  Abramovich first became active in charity 
work in Chukotka in the late 1990s.  Since then he has re-built 
utilities; improved infrastructure; built new stores, hospitals, 
and hotels; renovated the regional museum, and sent thousands of 
schoolchildren to the Black Sea for summer vacations; among 
countless other projects (reftel).  As a result, regional living 
standards improved, and new investors were drawn to the region. 
 
5.  Due to these successes and his personal largesse, Abramovich 
has been among Russia's most popular governors, and the 
reverence accorded him in Chukotka has bordered on hero worship. 
 With his resignation, Chukotkans are petitioning to rename one 
of the region's three cities -- Anadyr, Bilibino, or Pevek -- 
after him.  Well aware of the personal role played by the 
resigning billionaire in their region's fortunes, they are also 
expressing concern over their future.  A spokesman for 
Abramovich, however, said the former governor would continue to 
put money into development in the Russian Far East and would not 
sever ties with Chukotka.  Indeed, one of Abramovich's 
intentions in the past several years has been to ensure that the 
region's development would become self-sustaining once he left 
office.  According to government estimates, due in large part to 
mining developments, Chukotka should become a self-sustaining 
prosperous region by 2015, with 57 billion rubles (2.5 billion 
USD) in budget revenues. 
 
--------------------- 
This Time's New Roman 
--------------------- 
 
6.  Deputy Governor Roman Kopin, 34, who since April has been in 
charge of industrial and agricultural development of the region, 
has been named acting governor in the wake of Abramovich's 
resignation.  Earlier, he was the elected head of the 
Bilibinskiy municipal district.  He first arrived in Chukotka in 
1999, when he was appointed as an advisor to Governor Aleksandr 
Nazarov, Abramovich's predecessor. 
 
 
ARMBRUSTER