BSEC MINISTERIAL: ARMENIA'S VIEWS

C O N F I D E N T I A L YEREVAN 001511

SIPDIS

SIPDIS

STATE FOR EUR/CARC, EUR/PGI: ANORMAND AND EUR/NCE:
DKOSTELANCIK

E.O. 12958: DECL: 10/26/2016
TAGS: SENV PREL ECON AM
SUBJECT: BSEC MINISTERIAL: ARMENIA'S VIEWS

REF: A) STATE 162288 B) ISTANBUL 1910 C) TBILISI 2818

Classified By: EconOff E. Pelletreau for reasons 1.4 (b,d).

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SUMMARY
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1. (C) In response to ref A demarche, the Head of the
International Economic Cooperation Department at the MFA told
us that Armenia is likely to offer only luke-warm support to
any U.S. proposal for a BSEC meeting on the environment. He
also expressed concern about Georgia's efforts to include its
conflict with Russia on the BSEC agenda. He said that
Armenia had not raised its closed borders with Turkey and
Azerbaijan at BSEC because it was not the appropriate forum
to raise bilateral disputes and suggested that Georgia should
show similar restraint. END SUMMARY.

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THE ENVIRONMENT'S FINE, SO LONG AS THERE IS MONEY IN IT
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2. (C) Head of the International Economic Cooperation
Department at the MFA Ashot Poghossian told us that it was
unlikely that Armenia would be interested in a proposal to
set up a BSEC-related meeting on "environmental enforcement
for economic development" (ref A). He explained that Armenia
had been excluded from the BSEC committee against pollution
established in Bucharest in 1998 because it was not Black Sea
littoral and, therefore, was not involved in BSEC's
environmental actions. He added, pointedly, that the
Armenian Minister of Nature Protection would not be
interested in coordinating with BSEC because BSEC has only
limited funds. He said that the Minister would only work
with groups that had funds to spend in Armenia, for example,
the E.U. (COMMENT: The clear implication was that the
Minister, notorious as Armenia's most corrupt, was looking
for opportunities to embezzle international funds. END
COMMENT) MFA Department of International Organizations Desk
Officer Noune Zastoukhova, who also attended the meeting,
pointed out that there are other regional environmental
programs in which Armenia is an active member, such as the
UNEP's Environmental Security Initiative, and suggested that
the U.S proposal might be duplicative of other international
efforts.

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A REVIEW OF THE AGENDA
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3. (C) Poghossian also shared his thoughts about the rest of
the BSEC agenda. He said that the Greek government had been
lobbying hard for Armenian support for an MOU on a Black Sea
ring-road, but that he felt it would be impossible to sign
the MOU at this Ministerial because member states had not
been given sufficient time to review the proposal.
Poghossian highlighted the possibility of establishing a
Black Sea energy network. He said this would be a GOAM
priority when Armenia assumes control of the BSEC energy
committee in May 2007. The third agenda item would be BSEC
cooperation with the EU, but Poghossian said that both
Romania and Turkey were creating obstacles.

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GOAM DISPLEASED WITH GEORGIA'S CIRCULAR NOTES
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4. (C) Poghossian expressed concern about Georgia's
"unprecedented" efforts to raise Russia's economic sanctions
at the Ministerial (ref C). He said that the Georgian
government mentioned the potential impact on Armenia in
circular notes advocating for inclusion of Russian-Georgian
relations on the BSEC agenda. Poghossian said the GOAM
objected to being drawn into what it considers to be a
bilateral conflict. "BSEC is not the appropriate forum for
Georgia to raise these concerns," Poghossian said. Armenia
had refrained from raising its closed borders with Turkey and
Azerbaijan at BSEC and Georgia should show similar restraint,
he added.

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COMMENT
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5. (C) Poghossian's concern about Georgian efforts to draw
Armenia into its conflict with Russia is not surprising.
Armenia faces a difficult balancing act between Georgia and
Russia. The vast majority of Armenia's trade goods pass
through Georgia, but Russia has significant control over the
Armenian energy sector. Given its energy dependence, it is
critical that Armenia maintain a relationship with Russia
separate and apart from the Georgian-Russian conflict. The
fact that President Kocharian will be visiting Russia for
bilateral meetings the day before the BSEC Ministerial is an
acknowledgment of that fact. The last thing Armenia wants is
to be seen as "co-plaintiff" with Georgia against Russia in
this dispute.
GODFREY