POLAND ON LAHTI DINNER: ENERGY POLICY KEY, "NO

C O N F I D E N T I A L WARSAW 002238 SIPDIS SIPDIS E.O. 12958: DECL: 10/19/2011 TAGS: PREL ENRG ETRD PL EUN RS SUBJECT: POLAND ON LAHTI DINNER: ENERGY POLICY KEY, "NO HURRY" ON NEW RUSSIAN PCA REF: A. VILNIUS 953 ¶B. HELSINKI 1058 ¶C. WARSAW 2188 Classified By: Acting DCM Mary Curtin, reasons 1.4(b) and (d) ¶1. (C) SUMMARY. Poland looks forward to both the internal EU meetings and dinner with Russian President Putin October 20 in Lahti, Finland. The GOP considers Lahti an important venue for discussing renewal of the Russian Partnership and Cooperation Agreement (PCA),but believes that there is no need to rush the negotiations at the expense of ensuring that the new PCA includes appropriate language on the most crucial issues. Poland's highest priorities for the PCA are energy security and protections for free trade principles. The GOP also sees Lahti as an opportunity for President Kaczynski to at least shake hands with Putin to keep up the momentum for improved Polish-Russian relations. END SUMMARY. ¶2. (C) Pol External Chief and visiting EUR/ERA officer met October 18 with Pawel Herczynski, newly named Deputy Director of the MFA European Union Department, to discuss Polish views of the current EU state of affairs, as well as the upcoming October 20 informal meetings at Lahti (refs A/B). Although new to EU issues, Herczynski had just attended the October 17-18 GAERC (on his first days on the job) and also read verbatim from draft briefing papers for President Lech Kaczynski's participation at Lahti. ¶3. (C) Herczynski said that the GOP looked forward to both the EU-only meeting and the dinner with Russian President Putin, particularly in the context of GOP efforts to get other member states to focus on developing an EU-wide energy policy. In addition, such a policy should encompass not only diversity, security and reliability of energy transit corridors but also of energy suppliers. He added that it was very important for the EU to speak with one voice on BOTH the internal and external energy markets. ¶4. (C) With regard to negotiations for renewal of the EU-Russia (PCA),Herczynski stated quite clearly that the GOP believed "there is no hurry." He pointed out that even when the current PCA expired at the end of 2007, there was a clause stating that it remained in force until a new agreement took effect. According to Herczynski, Poland wants any new PCA to include certain key elements, including: - all current EU-Russian agreements in force, notably the four "roadmaps"; - explicit references to the principle of free trade and Russia's obligations in the context of WTO accession; - detailed treatment of energy cooperation and security issues; and - an explicit conflict resolution mechanism for trade disputes. ¶5. (C) Herczynski said that the GOP felt the EU could not enter into negotiations for a new PCA without Russia agreeing to immediately lift all trade barriers that violate the existing PCA and other EU agreements (a clear reference to the current Russian ban on many Polish agricultural exports). In addition, Russia would have to commit either to ratify the Energy Charter or to incorporate all of the Charter's provisions into the new PCA. There was also a need for a coordinated "energy crisis management mechanism" that would allow the EU, Russia and other regional partners to respond quickly and effectively. ¶6. (C) COMMENT. In contrast to the Lithuanian government's objection to President Putin's presence at Lahti (ref B),the GOP actually welcomes the opportunity to meet with the Russians. President Lech Kaczynski will attend the meetings instead of the PM, and a senior MFA official speculated the President was going mainly for the opportunity to at least shake Putin's hand. (The Polish constitution states that either the President or PM can represent the government at such events, but in practice it is almost always the PM.) Russian FM Lavrov was in Warsaw October 5 (ref C),at which time vague plans for a Kaczynski-Putin summit in 2007 were formed. The GOP seems to see Lahti as another step in its long-term efforts to improve the still tense Russian-Polish relationship, as well as a chance to force other member states to face the need for a coordinated energy policy that explicitly deals with Russia. END COMMENT. HILLAS