GOI CLARIFIES SCAJOLA REMARKS ON UKRAINE-RUSSIA

C O N F I D E N T I A L ROME 000324

SIPDIS

E.O. 12958: DECL: 02/02/2016
TAGS: ENRG ECON IT UP RU
SUBJECT: GOI CLARIFIES SCAJOLA REMARKS ON UKRAINE-RUSSIA
GAS IMBROGLIO

REF: STATE 17066

Classified By: Acting Economic Counselor Richard Boly, reasons 1.4 b an
d d


1. (C) Summary. During a February 1 meeting with Econoff,
Ministry of Productive Activities (MPA) Diplomatic Advisor
Ambassador Gabriele Checchia backed away from MPA Minister
Claudia Scajola's statement that Ukraine is "taking" Russian
gas meant for Italy, and said Italy will support Ukrainian
efforts to negotiate a fair and transparent gas agreement.
Checchia was not optimistic that the GOI will be able to
obtain details on the role of RosUkrEnergo in the deal being
negotiated. End summary.


2. (C) Econoff met with Checchia February 1 to discuss the
outcome of Scajola's trip to Moscow. According to Checchia,
Russian Energy Minister Viktor Khristenko is a technocrat who
is approaching the negotiations pragmatically, trying to
avoid politicization of the process. Regarding Minister
Scajola's comment, reported in the press, that Ukraine is
"taking gas meant for Italy," Checchia said that Italy
"understands and supports Ukraine's position." Checchia said
that Italy has been a friend Ukraine's in the past, citing
Scajola's role in securing EU recognition of Ukraine's market
economy last year, and said the Italian Ambassador in Kiev
has met with Ukrainian officials to assure them of Italy's
continued support.


3. (C) Checchia professed not to know that Naftohaz Ukrainy
is negotiating a joint venture with RosUkrEnergo and said it
would be very difficult to find out what is the substance of
the negotiations between Russia and Ukraine or between
RosUkrEnergo and Naftohaz Ukrainy. Nonetheless, he agreed
that public statements by EU Member State officials should be
calibrated to support Ukraine in its efforts to negotiate a
transparent, market-based agreement that will ensure reliable
gas flows to western Europe, including Italy.


4. (SBU) Comment. Italy imports 30 percent of its natural
gas from Russia. Supply shortfalls mean that gas deliveries
to some Italian customers have been interrupted and that
Italy may have to tap into its gas reserves. This issue has
received a great deal of attention in the press, and Checchia
made it clear that Scajola's trip to Moscow and his comments
there were in part intended to let Italian voters know the
government is working to address the situation. Checchia's
professed ignorance of the role of RosUkrEnergo is curious,
as he is usually a well-informed and candid interlocutor.
That said, our experience in recent weeks has been that GOI
officials are reluctant to discuss with us the politically
and economically sensitive issue of problems in the gas
supply chain. End comment.
SPOGLI