Identifier
Created
Classification
Origin
05VIENNA3974
2005-12-30 14:51:00
CONFIDENTIAL
Embassy Vienna
Cable title:  

RUSSIA-UKRAINE GAS NEGOTIATIONS: AUSTRIAN RESPONSE

Tags:  ENRG ECON UP RS AU EUN 
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C O N F I D E N T I A L VIENNA 003974 

SIPDIS

DEPARTMENT FOR EUR AND EB

E.O. 12958: DECL: 12/30/2015
TAGS: ENRG ECON UP RS AU EUN
SUBJECT: RUSSIA-UKRAINE GAS NEGOTIATIONS: AUSTRIAN RESPONSE

REF: STATE 229253

Classified By: ECONOMIC-POLITICAL COUNSELOR GREGORY E. PHILLIPS
REASONS: 1.5 (B) AND (D)

C O N F I D E N T I A L VIENNA 003974

SIPDIS

DEPARTMENT FOR EUR AND EB

E.O. 12958: DECL: 12/30/2015
TAGS: ENRG ECON UP RS AU EUN
SUBJECT: RUSSIA-UKRAINE GAS NEGOTIATIONS: AUSTRIAN RESPONSE

REF: STATE 229253

Classified By: ECONOMIC-POLITICAL COUNSELOR GREGORY E. PHILLIPS
REASONS: 1.5 (B) AND (D)


1. (C) Embassy Vienna delivered reftel demarche to Austrian
MFA Acting A/S-equivalent for Economic Relations with
Central, Eastern and Southeastern Europe Elisabeth Kornfeind
and Director for Energy Policy Gisela Polte on December 29.
Kornfeind and Polte confirmed that the GoA was following
developments in the Russia-Ukraine gas contract negotiations
closely. (Note: the Austrian press has prominently featured
articles speculating on the possible consequences of an
interruption of supplies for the Austrian and other EU member
state gas markets. End note.) They noted that the Austrian
energy company OMV had stocks on hand to last through at
least "two cold winter months," but that other EU nations
were perhaps not as well secured.


2. (C) Kornfeind thought it unlikely that Russia would go so
far as to halt the flow of gas through the pipeline, since
this would disrupt Russia's relationship with important
customers to the west of Ukraine as well. While Austria was
monitoring the situation closely, it remained, essentially a
bilateral problem for the two countries to resolve. We
observed that if the situation worsened after the beginning
of the year, Austria might be called on as the EU Presidency
to encourage the two sides to come together.


3. (C) Kornfeind and Polte agreed emphatically that Europe
needed to diversify away from its dependence on Russia for
gas supplies and noted that Austria would seek to develop an
new EU energy strategy during its Presidency. They added
that Austria hoped the Energy Community Treaty for Southeast
Europe would enter into force within the next few months.
KILNER