ISA DEMARCHE: MFA FURTHER DETAILS GOB POSITION

C O N F I D E N T I A L MINSK 000685 SIPDIS SIPDIS E.O. 12958: DECL: 08/09/2017 TAGS: ETTC PREL ENRG EPET IR BO SUBJECT: ISA DEMARCHE: MFA FURTHER DETAILS GOB POSITION REF: A. STATE 97439 ¶B. MINSK 642 Classified By: Ambassador Karen Stewart for reason 1.4 (d). Summary -------------- ¶1. (C) MFA officials presented DCM further points in response to the demarche on the Iran Sanctions Act August 7. They claimed Belarusneft's oil exploration in Iran would not violate international norms, and noted that Western investors, including oil companies, are already engaged in Iran. They also explained that the Belarusneft project did not amount to investment. Finally, they said the GOB would consider any offer from the USG to compensate Belarus if it would forego exploration in Iran. Post informed MFA that we were still pursuing a direct meeting with Belarusneft's parent company, Belneftekhim. End summary. Actions in Accordance with International Norms -------------- - ¶2. (C) Prompted by an earlier demarche (reftels),Head of the MFA's North America office Sergey Sergeyev and Counselor Oleg Anisimov presented DCM and Acting Pol/Econ Chief with several points in defense of planned oil exploration in Iran by Belarusneft. The points were from a prepared non-paper, but no copy was given. They portrayed Belarusneft's planned oil exploration as normal international commerce, not in violation of UNSC resolutions. Everyone Else is Doing It -------------- ¶3. (C) Sergeyev stated that a huge amount of foreign investment had already flowed into Iran, giving the figure of USD 15 billion, most of which he claimed came from Western sources. He then proceeded to list a half dozen foreign oil companies engaged in energy projects in Iran, noting that none of them had faced sanctions. Belarus Not Investing at this Point -------------- ¶4. (C) Sergeyev explained that Belarusneft was not investing in the project. In this first stage Belarusneft instead would receive a credit from Iran to fund exploration by the Belarusian company. Diversification of Energy Sources Main Belarusian Objective -------------- -------------- ¶5. (C) Citing tense energy conflicts with Russia, Sergeyev said Belarus sought merely to diversify its access to foreign resources. He added that if the USG, or any other government, could make Belarus a better offer than had Iran, the GOB would consider the proposal. Comment: Still Seeking Further Meeting -------------- ¶6. (C) It is likely Sergeyev is correct that Belarus will not invest in oil exploration as the GOB lacks substantial funds for foreign investment. This seemingly contradicts the claim that Belarus seeks closer relations with Iran in order to diversify energy sources, but the diversification canard was always primarily propaganda for public, and a lesser extent Russian, consumption. However, we are still seeking a meeting at Belneftekhim for further clarification. ¶7. (C) Post does not take seriously the offer to forego exploration in Iran in return for energy cooperation with the United States. Most likely this line was added in the vain hope of trying to shift the USG's focus away from human rights and democracy toward energy security. Stewart