Identifier
Created
Classification
Origin
06PRAGUE1334
2006-10-25 10:25:00
UNCLASSIFIED
Embassy Prague
Cable title:  

RFE/RL ENERGY FORUM REFLECTS LACK OF EUROPEAN

Tags:  ENRG ECON ETRD PREL EZ 
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UNCLAS SECTION 01 OF 02 PRAGUE 001334 

SIPDIS

SIPDIS

STATE FOR EUR/NCE AND EB/ESC
DOE FOR HARBERT
COMMERCE FOR 4232/ITA/MAC/EUR MIKE ROGERS
NSC FOR TRACY MCKIBBEN

E.O. 12958: N/A
TAGS: ENRG ECON ETRD PREL EZ
SUBJECT: RFE/RL ENERGY FORUM REFLECTS LACK OF EUROPEAN
CONSENSUS ON ENERGY


UNCLAS SECTION 01 OF 02 PRAGUE 001334

SIPDIS

SIPDIS

STATE FOR EUR/NCE AND EB/ESC
DOE FOR HARBERT
COMMERCE FOR 4232/ITA/MAC/EUR MIKE ROGERS
NSC FOR TRACY MCKIBBEN

E.O. 12958: N/A
TAGS: ENRG ECON ETRD PREL EZ
SUBJECT: RFE/RL ENERGY FORUM REFLECTS LACK OF EUROPEAN
CONSENSUS ON ENERGY



1. SUMMARY AND COMMENT: Radio Free Europe/Radio Liberty
(RFE/RL) hosted a two-day Energy Forum in Prague October
23-24. The Forum addressed a wide range of tough issues
related to European energy security, including Iran, how
companies influence energy policy, the role of the European
Commission and national governments versus investors, human
rights and energy, as well as regional issues within Europe
(Central Asia, Baltics, Central and Eastern Europe). The
Energy Forum provided a good venue for a much-needed
non-government dialogue on EU energy security. While the
event drew serious and diverse participants from across
sectors (parliamentarians, private sector, think tanks,
journalists) and countries (U.S., Russia, Central and Eastern
Europe),there was a glaring and unfortunate absence of
representatives from Western Europe (e.g., French and German)
and from southeast Europe. This was most glaring on the
"Energy Security in Europe" panel, which consisted entirely
of representatives from the U.K., a Russian, and a Romanian.
Perhaps as a result of this gap in participation, as well as
the ambitious agenda for the two-day event, the Forum was
more talk than conclusion. Nonetheless, the debates and
exchange of opinions provided valuable insight into just how
unalarmed Europe seems about energy security the further west
you go, and just how difficult, or even insurmountable, it
would be to forge a common EU policy on energy. END SUMMARY
AND COMMENT.


2. This report is based on econoff's participation in three
segments: Gas and Oil -- Alternative Supply Routes to Europe;
Energy Security in Europe; Central and Eastern European
Energy Security. For details on program content,
participants, and selected texts, please visit www.rferl.org.


3. Czech Prime Minister Mirek Topolanek gave the opening
remarks, in which he called on the EU to reduce its energy
dependence on Russia through diversification, bluntly stating
that Russia was using energy as a tool for geopolitical
gains. He pointed to nuclear energy as the future of Europe

(NOTE: Nuclear energy is a lot less controversial in the
Czech Republic than in other parts of Europe, but with the
Greens entering Parliament for the first time this year,
government backing for nuclear energy is no longer a foregone
conclusion for even the Czechs. END NOTE.)


4. The session entitled "Gas and Oil -- Alternative Supply
Routes to Europe: Business or Politics, a Chance or a
Threat?" (moderated by CSIS Senior Fellow Ed Chow with
panelists from Russia, Belarus, and Slovakia) focused on the
proper role of governments versus investors. The moderator
asked whether the January 1, 2006 gas shut off from Russia to
Ukraine was a wake-up call for Europe, or has Europe simply
hit the "snooze button?" The most outspoken were the two
Russian panelists. Former Russian Deputy Foreign Minister
Sergei Krylov asked whether Europe should be more afraid of
Russia or of Germany, given the latter's growing distribution
power. Artem Malgin from the Moscow State University for
International Relations (MGiMO) described the attitudes in
Europe as "inevitable," due to the strengthening of Russian
companies, and cautioned against those central and eastern
European elements who are being unhelpful in politicizing the
energy situation in Europe. Dmitry Mironchik from the
Government of Belarus said the EU did not seem ready for a
partnership with Russia, and based on results of President
Putin's visit to Lehti, Finland, the EU did not even seem
ready for a dialogue.


5. The "Energy Security in Europe" session, moderated by
Edward Lucas of The Economist with three panelists from the
U.K. and one each from Romania and Russia, was a rather
academic survey of panelist opinions without much by way of
conclusion or consensus. Chris Cragg from UK's Energy
Economist focused on the infrastructure needs for Europe,
given that 85% of oil rigs in the world were over 25 years
old. Julian Lee from the U.K. Center for Global Energy
Studies quibbed that such ideas as "pipelines for peace" were
not realistic, saying that pipelines do not lead to
understanding. John Roberts from UK's Platts Energy
attributed European energy security (or lack thereof) to the
uncertainly of European demand, Russians who consume as much
as the EU but with just one third of the population, and lack

PRAGUE 00001334 002 OF 002


of coordination in European energy policy which lacks a
single voice.


6. The session on "Central and Eastern European Energy
Security" was moderated by Reka Szemerkenyi of Hungary and
featured panelists from the U.S., Poland, Latvia, and Russia.
Latvian Parliamentarian Vaira Peagle delivered an eloquent
speech about a dangerous kind of nationalism in the European
energy sector, remarked that pipelines are more important
than missiles in European foreign policy, and lamented that
European energy policy seemed to be based more on national
energy interests rather than on energy values. Russian
journalist Andrei Meshcherin questioned the benefits of the
Energy Charter and said European cooperation with Russia on
energy should be part of a larger economic cooperation.
Polish Parliamentarian Pawel Zalewski said that in Poland,
energy security was treated as a core security policy issues
and called for solidarity and a common energy policy in
Europe. Former U.S. Ambassador to Lithuanian Keith Smith
attributed the growing tension between the East and the West
to the growing state control and decreasing transparency in
the Russian energy sector. Turning to the EU, Smith asked,
if Article 82 of the Rome Treaty can be applied against
Microsoft for bundling its music software with its Windows
program, why are Gazprom and Transneft allowed to continue
their anti-competitive behavior which hurts European
consumers?
GRABER