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Identifier
Created
Classification
Origin
03ANKARA6345
2003-10-09 08:33:00
CONFIDENTIAL
Embassy Ankara
Cable title:  

TURKEY UNHAPPY WITH DECISION TO REVERSE

Tags:   EPET  PREL  RS  TU  UK 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
						C O N F I D E N T I A L ANKARA 006345 

SIPDIS


STATE FOR E, E/CBED, EUR/SE


E.O. 12958: DECL: 10/07/2013
TAGS: EPET PREL RS TU UK
SUBJECT: TURKEY UNHAPPY WITH DECISION TO REVERSE
ODESSA-BRODY PIPELINE

REF: DONNELLY-DASTIN E-MAILS


Classified by ECON Counselor Scot Marciel for reasons 1.5 (b)
and (d).




1. (C) SUMMARY: MFA Deputy DG for Energy and Water Haki
Akil told EconCouns that Turkey was opposed to the recently
announced agreement to reverse the Odessa-Brody pipeline.
Akil said the agreement would mean more oil through the
Turkish Straits and undermine U.S.-Turkish goals for the
East-West Energy Corridor. He asked the U.S. to intervene
with the Ukrainian Government and BP to stop the deal.
Embassy requests Department guidance. End Summary.




2. (C) Akil told EconCouns October 7 that Turkey strongly
opposes the reported agreement to reverse the Odessa-Brody
oil pipeline flow. The principle concern is that the
decision will increase the amount of oil transported via the
Turkish Straits, exacerbating the safety and environmental
situation. Akil pointed out that the reversal has a double
impact -- Russian-produced oil that would have been
transported via pipeline to Europe will instead be
transported via tanker through the straits, and Caspian
produced oil that would have been transported via the Black
Sea to Odessa and on to Europe now also will have to be
transported via the Turkish Straits. He emphasized that
increasing oil transport through the Turkish Straits "is not
an acceptable option for Turkey."




3. (C) A secondary issue for Turkey is the possible impact
of the Odessa-Brody reversal on the decisions of Caspian
producers to support the East-West Energy Corridor. Akil
feared that Caspian producers would be compelled to use the
Russian pipeline system to get their crude to market, a move
which would undermine the shared goal of the U.S. and Turkey
to promote Caspian oil and gas transport via Turkey. Akil
was surprised that BP-TNK, a Russian-BP joint venture would
be a party to this agreement when BP had been the main
supporter of the East-West Energy Corridor.




4. (C) Akil noted that the Ukrainian Government has not yet
approved the reversal and asked that the U.S. seek to
persuade the Ukrainian Government to block the decision. He
also requested that we raise this issue with senior BP
officials.




5. (C) ACTION REQUEST: We understand that this issue has
been discussed frequently with GOU officials and most
recently with Ukrainian Prime Minister Yanukovych in
Washington. Embassy would appreciate a readout from
Washington and requests guidance to respond to the GOT
concerns.
EDELMAN