TURKISH FOREIGN MINISTRY FLOATS IDEA FOR VOLUNTARY

C O N F I D E N T I A L ANKARA 001061

SIPDIS


E.O. 12958: DECL: 02/23/2014
TAGS: EPET EWWT PREL SENV TU
SUBJECT: TURKISH FOREIGN MINISTRY FLOATS IDEA FOR VOLUNTARY
REDUCTION OF OIL TRANSPORT THROUGH THE STRAITS

Classified by Econ Counsleor Scot Marciel, for reasons 1.5
(b) and (d).



1. (C) MFA Director General for Energy Haki Akil told us the
Foreign Ministry is launching a new initiative to reduce the
transport of petroleum and refined products through the
Turkish Straits. MFA is testing the interest of oil
companies in an agreement on voluntary principles that would
commit the oil companies to ship all or part of their oil and
refined products through pipelines, bypassing the Straits.
Akil admitted the task would be difficult, because all of the
oil companies that currently ship through the Straits would
need to agree in order to avoid the free-rider problem. He
said BP, ChevronTexaco and Exxon/Mobil had shown interest in
the idea, but admitted that selling the idea to the Russian
oil companies would be more difficult.



2. (C) The Straits agreement outlined by Akil is based on
the model used by BTC to reach agreement on voluntary
principles on human rights and security, and like the BTC
agreement, would also include interested NGOs. He said that
the MFA is just beginning to explore the idea and therefore,
he could not predict many of the details of such an
agreement. He added that the MFA would like U.S. support for
the initiative. Comment: Although we have verified that
some western oil companies are interested in the idea, we
(and they) are skeptical that Akil will make much headway
with the Russian companies.
EDELMAN