ENERGY AND RELATIONS WITH EU AT THE FOREFRONT OF

C O N F I D E N T I A L SECTION 01 OF 03 BAKU 000287 SIPDIS SIPDIS FOR EUR/CARC E.O. 12958: DECL: 03/09/2017 TAGS: ENRG EPET PGOV PREL PL UP AJ SUBJECT: ENERGY AND RELATIONS WITH EU AT THE FOREFRONT OF POLISH FOREIGN MINISTER'S VISIT TO AZERBAIJAN Classified By: Ambassador Anne E. Derse for reasons 1.4 (b, d) ¶1. (C) Summary: Polish Foreign Minister Anna Fotyga's February 28 - March 1 visit to Azerbaijan focused on energy cooperation and assisting Azerbaijan in its relations with the EU. These two issues are highlighted in a bilateral Memorandum of Cooperation (text below) that was signed during the visit. Polish Embassy Counselor Wojciech Gorecki told us the GOAJ sent a "clear message" to Fotyga that Azerbaijan will have additional oil, above and beyond the amount committed for export through the BTC pipeline, for export to Poland. Gorecki cautioned that this project would require a change in the direction of the Odessa-Brody pipeline, which Gorecki characterized as a "strategic decision" for Ukraine. Gorecki also noted the memorandum pledged Poland's support for Azerbaijan's implementation of its EU Action Plan. Polish President Lech Kaczynski will pay an official state visit to Azerbaijan in late March, according to Gorecki. End Summary. Background -------------- ¶2. (SBU) Polish Foreign Minister Anna Fotyga visited Azerbaijan February 28 through March 1. According to local press, Fotyga met with President Ilham Aliyev, Foreign Minister Elmar Mammadyarov, Milli Majlis Chair Oktay Asadov, and Prime Minister Artur Rasizade. A review of press suggests the visit's key agenda items were energy and Azerbaijan's relations with the EU. According to press reports, Poland appears to have sought access to Azerbaijani oil in exchange for assisting Azerbaijan in implementing its EU Neighborhood Plan (ENP) Action Plan. Speaking about the prospects for bilateral energy cooperation after her meeting with Mammadyarov, Fotyga remarked, "The existing infrastructure gives new opportunities for cooperation with Azerbaijan in the area of guaranteeing energy security. We are trying to diversify energy deliveries, and we started talks with Azerbaijan, Ukraine and Kazakhstan on this issue." Polish Embassy Highlights Energy and EU Cooperation -------------- -------------- ¶3. (C) Polish Embassy Counselor Wojciech Gorecki provided us with additional details on the visit, including the text of the joint memorandum signed during the visit (see text in para 8 below). Gorecki acknowledged that energy and assistance to the GOAJ on its relations with the EU were key aspects of Fotyga's visit. ¶4. (C) On energy, Gorecki said that the GOAJ sent a "clear message" to Fotyga that Azerbaijan would have extra oil -- beyond the amount already committed for export through the BTC pipeline -- for export to Poland. Gorecki noted that Economic Development Minister Heydar Babayev was particularly clear in delivering this message to Fotyga. GOAJ officials reportedly told Fotyga that Azerbaijani and Kazakhstani oil not committed for export trough the BTC pipeline would be available for poential export to Poland. Gorecki cautioned thatthe key to this plan, however, was Ukraine's willingness to make a "strategic decision" on which direction oil flows through the Odessa-Brody pipeline. (Comment: Since 2004, oil has been flowing in a southern direction, rather than the originally designed northern direction to send Caspian oil to Poland.) GOAJ officials also told Fotyga that they were open to unspecified gas projects with Poland, although they did not appear upbeat about the short-term prospects for Kazakh gas transiting through Azerbaijan to European markets. ¶5. (C) On Azerbaijan's ENP Action Plan, Gorecki said Poland committed to assisting the GOAJ move closer toward the EU within the framework of the memorandum. He noted that Poland is open to "working with" the GOAJ to bring Azerbaijan closer in line with EU standards, but the document lacks many specific proposals. Gorecki commented that this is normal behavior for the GOAJ, which likes framework agreements, but has difficulty identifying concrete measures. Gorecki also noted that the GOAJ balked at including the word "NGOs," in a provision regarding bilateral cooperation among NGOs promoting European integration, preferring the more vague language of "civil societies." ¶6. (C) In an indication of the visit's success, Gorecki said that President Lech Kaczynski will pay an official state BAKU 00000287 002 OF 003 visit to Azerbaijan in late March. (Kaczynski will first visit Kazkahstan, according to Gorecki.) Finally, Gorecki observed what we have heard from many local contacts: that the GOAJ increasingly perceives that the EU needs Azerbaijan more than Azerbaijan needs the EU. Comment -------------- ¶7. (C) Fotyga's visit is the latest in a series of bilateral Azerbaijani-European visits, including President Aliyev's trips to France and Germany -- respectively in January and February -- and German Foreign Minister Frank Walter-Steinmeier's visit to Azerbaijan in February. These visits highlight Azerbaijan's interest in increased ties with the EU and growing EU interest in Azerbaijan as an alternate energy supplier. We believe that closer ties between Azerbaijan and some of the newer EU members who transitioned away from Soviet economic and political systems -- such as Poland, Romania, Bulgaria, and the Baltic states -- could play a positive role in helping the GOAJ move toward closer integration with EU standards and embracing democratic reforms. ¶8. (SBU) Text of Azerbaijan-Polish Memorandum of Cooperation: Memorandum of Cooperation for European Integration between the Ministry of Foreign affairs of the Republic of Poland and the Ministry of Foreign Affairs of the Republic of Azerbaijan for the Years 2007-2008 The Ministry of Foreign Affairs of the Republic of Poland and the Ministry of Foreign Affairs of the Republic of Azerbaijan: --having in mind the need to deepen bilateral relations between Poland and Azerbaijan; --appreciating the importance of Azerbaijan's cooperation with the European Union and of the European aspirations of the Republic of Azerbaijan --welcoming the inclusion of Azerbaijan into the European Neighbourhood Policy and adoption of the Action Plan; --recognizing the significance of the process of transformation of the entire Eastern Europe and South Caucasus in the spirit of European principles and values. Hereby declare their readiness to cooperate in the following directions in the years 2007-2008: ¶1. Support by the Polish side for the process of implementation of EU - Azerbaijan Action Plan, particularly through: --granting of assistance in the process of harmonization of the legislation of Azerbaijan to that of EU that would enable to strengthen the cooperation with EU in key sectors; --granting of expert aid to share the Polish experience in European integration. ¶2. Elaboration of a program of cooperation for European integration between the state administrations of the Republic of Poland of the Republic of Azerbaijan, within the framework of the European Neighbourhood and Partnership Instrument, and Twinning Programme. ¶3. Initiation of a mechanism of regular consultations on European integration between the Ministries of Foreign Affairs of the two countries. ¶4. Initiation of a mechanism of regular consultation on energy security in the framework of strategic partnership between the European Union and Azerbaijan. ¶5. Conducting of study visits to the Ministry of Foreign Affairs of the Republic of Poland by young Azerbaijani diplomats assigned to European issues. ¶6. The Ministry of Foreign Affairs of the Republic of Poland will support the cooperation between the Diplomatic Academy of the Polish Institute of International Affairs and the Diplomatic Academy of the Ministry of Foreign Affairs of the Republic of Azerbaijan. ¶7. Establishment of conditions conducive to the cooperation of Polish and Azerbaijan civil societies in promoting European integration. BAKU 00000287 003 OF 003 Done in Baku on 1.03 2007 in two copies in English. Minister of Foreign Affairs of the Republic of Poland Minister of Foreign Affairs of the Republic of Azerbaijan DERSE