NORWEGIAN FM STOERE TALKS HIGH NORTH WITH THE RUSSIANS

C O N F I D E N T I A L OSLO 000213

SIPDIS


E.O. 12958: DECL: 02/24/2016
TAGS: PREL ENRG SENV EFIS RS NO
SUBJECT: NORWEGIAN FM STOERE TALKS HIGH NORTH WITH THE RUSSIANS

Classified By: Acting Pol/Econ Counselor Doug Apostol
for reasons 1.4 b and d


1. (C) SUMMARY: High North energy and fisheries issues were
at the top of the agenda during Norwegian FM Stoere's
February 15-17 visit to Russia. Stoere met with Russian FM
Lavrov and Deputy Prime Minister Medvedev in Moscow and
called on regional governors in Murmansk and St. Petersburg
during the visit. The Norwegian MFA told us that Russian
signals on Norwegian participation in development of the
Shtokman natural gas field were positive and that some
progress (but no breakthroughs) were made on delimiting the
Barents maritime border and lifting a Russian ban on fresh
salmon. Stoere and Lavrov discussed Iran and Hamas as well.
On Iran, Lavrov told Stoere that he was not optimistic that
Iran would accept the Russian proposal to enrich uranium fuel
in its reactors. Lavrov said that he would press Hamas to
soften its stance on Israel and abide by earlier agreements.
He and Stoere agreed that donors should work to support Abbas
and the Palestinians and not "starve them out." END SUMMARY.


2. (C) On February 23, the Norwegian Foreign Ministry gave
the diplomatic corps a readout of Foreign Minister Stoere's
February 15-17 visit to Russia, including meetings with FM
Lavrov and Deputy Prime Minister Medvedev. Stoere's trip
included stops in Murmansk, St. Petersburg, and Moscow. We
also met separately with Deputy Director General Robert Kvile
to further discuss energy and other High North issues.

HIGH NORTH ENERGY DEVELOPMENTS
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3. (C) FM Stoere's meeting with Deputy Prime Minister
Medvedev focused on the Norwegian-Russian energy
"partnership," particularly in the High North. Though
Medvedev, who is also the Chairman of the Board of Gazprom,
did not say directly that Norwegian companies were a lock to
participate in the Shtokman gas field project in the Barents,
the signals were positive. Medvedev told Stoere there were
"good reasons" for Norway and Russia to be strategic partners
in energy. Russia was also keen to boost economic
cooperation in other sectors, including telecommunications.
(Note: Two-way trade between Russia and Norway was up 66
percent last year, much of it in increased Norwegian seafood
exports. End note.) Stoere also passed Medvedev (and
Lavrov) a non-paper on Norway's views on energy security, the
theme of this summer's G8 Summit hosted by Russia. (Post has
e-mailed a copy of the non-paper that appeared on the MFA's
web site to EB/ESC/IEC.) Norway's possible participation in
the G8 talks discussions on energy security was discussed;
the Russians are aware of Norway's desire to participate in
the G8 Summit in some capacity but have issued no invitations
"yet," according to the MFA.


4. (C) In Murmansk, regional governor Yevlikimov told Stoere
candidly that he and other local officials strongly supported
Norwegian companies' bids for a share of the Shtokman project
and had told the Kremlin so directly. (Norway's two major
petroleum firms, Norsk Hydro and Statoil, are in the running
for a share of the project.) Kvile told us later that
Statoil was angling for a 25 percent share, but that was
probably unrealistically large if Gazprom, as is likely,
chooses three or four partners.


TALKS ON BARENTS BORDER, SVALBARD FISHERIES AND FISH IMPORT BAN
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5. (C) Stoere and Lavrov discussed the longstanding Barents
border issue and, although the tone of the conversation was
positive, there were "no revelations," according to the MFA.
Norway's negotiating team was (coincidentally) in Moscow this
week for expert level talks on technical delimitation issues.
Kvile told us later that Norway's February 21 agreement with
Denmark on the Greenland-Svalbard border was based on the
median line principle, giving a stronger basis for the
Norwegians' median line approach to the Barents. Kvile that
that given the potentially significant energy resources at
stake, any agreement with the Russians will be a compromise
and that Norway will need to move off its median line
argument to reach a deal.


6. (C) During his stop in Murmansk, Stoere explained to
local fishermen Norwegian policy on monitoring foreign
vessels' catches in Svalbard archipelago waters. Norway
expects countries to abide by bilateral catch agreements
within the 200-mile Fisheries Protection Zone around the
archipelago and reserves the right to inspect vessels to
ensure catch limits are not exceeded. The MFA said Stoere
was very direct with local fishermen, insisting that Norway
had a sound legal basis for its inspection regime and that
other states were welcome to "take their complaints to the
Hague."


7. (C) Stoere also made progress in resolving the flap over
Russia's two-month-old ban on Norwegian fresh fish imports.
Norwegian and Russian experts were meeting again this week to
seek a deal to lift the ban. (Note: Norway exported $533
million worth of seafood to Russia in 2005; Russia is the
third largest and fastest growing market (50 percent growth
in 2005) for Norwegian salmon. End Note.)

IRAN AND HAMAS
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8. (C) Lavrov and Stoere discussed how to deal with the
Iranians, who were in Moscow that week for talks on the
Russian proposal to enrich uranium for Iran on its soil.
Lavrov told Stoere that he was "not pessimistic but did not
expect much" from the Iranian delegation. He called
prospects for success of the Russian proposal "a long shot,"
but said it was important to keep talking to the Iranians.


9. (C) Lavrov said Russia's message to Hamas leaders in
their upcoming visit to Moscow would be to soften their
stance on Israel. Russia would support a Hamas dominated
Palestinian government that moved toward dialogue with
Israel. The MFA said Lavrov and Stoere agreed there was no
need to "starve out" the Palestinians under Hamas, which
enjoyed strong grass-roots support, and that donor countries
should continue to support President Abbas for now.

AMEC
- - -


10. (C) The MFA said Lavrov asked Stoere about Norway's
commitment to the Arctic Military Environmental Cooperation
Program (AMEC) (to dismantle decommissioned Russian
submarines and for nuclear clean-up on the Kola peninsula).
Stoere gave an assessment of progress and said Norway had no
intention of ceasing its participation, at least for now.
Kvile told us after the main briefing that Norway was moving
toward bilateral cooperation with Russia on Kola clean-up
programs rather than working exclusively through the AMEC
structure.

COMMENT: HIGH NORTH IS FRONT AND CENTER
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11. (C) Stoere put High North issues front and center (as he
has been doing with us) during his road show through Russia.
By starting his first official visit to Russia in Murmansk,
Stoere sent a strong signal about the importance Norway
places on High North issues and Oslo's eagerness to cooperate
closely with Moscow in responsibly managing Barents region
resources. Norwegian engagement with Russia on the High
North is paying dividends--an inside track for a piece of
Shtokman for Norwegian companies, movement on Barents border
discussions, and progress in ending the fresh seafood ban.
On the other hand, the visit produced no breakthroughs and
Norwegian officials are already downplaying prospects for any
major announcements on Shtokman, the maritime border, or
other top agenda items when Russian Prime Minister Fradkov
visits here in late March.

Visit Oslo's Classified website:
http://www.state.sgov.gov/p/eur/oslo/index.cf m

WHITNEY