Identifier
Created
Classification
Origin
07MOSCOW5069
2007-10-19 06:05:00
CONFIDENTIAL
Embassy Moscow
Cable title:
GAZPROM HEAD SUGGESTS ELIMINATING "MIDDLEMEN" IN
how-toVZCZCXRO3744 PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHMO #5069 2920605 ZNY CCCCC ZZH P 190605Z OCT 07 FM AMEMBASSY MOSCOW TO RUEHC/SECSTATE WASHDC PRIORITY 4725 INFO RUCNCIS/CIS COLLECTIVE PRIORITY RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
C O N F I D E N T I A L MOSCOW 005069
SIPDIS
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
DOE FOR HARBERT, HEGBORG, EKIMOFF
DOC FOR 4231/IEP/EUR/JBROUGHER
NSC FOR MCKIBBEN
E.O. 12958: DECL: 05/18/2017
TAGS: EPET ENRG ECON PREL RS
SUBJECT: GAZPROM HEAD SUGGESTS ELIMINATING "MIDDLEMEN" IN
GAS TRADE WITH UKRAINE
REF: A. KYIV 2611
B. MOSCOW 4932
Classified By: Ambassador William J. Burns for Reasons 1.4 (b/d)
-------------------------------
MEDVEDEV SENDS UP TRIAL BALLOON
-------------------------------
C O N F I D E N T I A L MOSCOW 005069
SIPDIS
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
DOE FOR HARBERT, HEGBORG, EKIMOFF
DOC FOR 4231/IEP/EUR/JBROUGHER
NSC FOR MCKIBBEN
E.O. 12958: DECL: 05/18/2017
TAGS: EPET ENRG ECON PREL RS
SUBJECT: GAZPROM HEAD SUGGESTS ELIMINATING "MIDDLEMEN" IN
GAS TRADE WITH UKRAINE
REF: A. KYIV 2611
B. MOSCOW 4932
Classified By: Ambassador William J. Burns for Reasons 1.4 (b/d)
--------------
MEDVEDEV SENDS UP TRIAL BALLOON
--------------
1. (SBU) On October 16, First Deputy Prime Minister and
Gazprom Chairman Dmitriy Medvedev suggested on German
television that Russia is willing to bypass middlemen in its
gas dealings with Ukraine. The recent gas supply dispute
with Ukraine and its subsequent resolution (reftels) raised
questions about the role of two intermediaries, RosUkrEnergo
(RUE) in Russia and UkrGazEnergo (UGE) in Ukraine, in the gas
supply chain to Ukraine. Medvedev appeared to target the
opacity surrounding these entities, referring to
"intermediary structures that are not understandable."
2. (C) Ukrainian Embassy First Secretary Yaroslav Dubovich
told us October 17 that Medvedev's comments were just a trial
balloon and stressed there have been no official negotiations
or dialogue on the issue yet. However, he said Ukraine is
pleased with this development as it prefers to buy gas
directly from Gazprom. He hoped the suggestion would move
forward and help make the gas trade more transparent. He
noted that Yulia Tymoshenko publicly welcomed the idea as
well. Ironically, Gazprom's Director of International
Affairs, Ivan Zolotov, told us privately last week that
Gazprom had called the debt out of concern that it would be
more difficult to collect should Tymoshenko lead the new
government.
--------------
COMMENT
--------------
3. (C) It is too early to know whether Medvedev's suggestion
will gain traction, let alone whether it will ultimately lead
to more transparent and efficient gas trade between Russia
and Ukraine. Those profiting from the current arrangement
will certainly resist. That said, it is apparent from the
quick resolution of this latest dispute that Russia
increasingly cares about its international image as a
reliable supplier. End Comment.
Burns
SIPDIS
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
DOE FOR HARBERT, HEGBORG, EKIMOFF
DOC FOR 4231/IEP/EUR/JBROUGHER
NSC FOR MCKIBBEN
E.O. 12958: DECL: 05/18/2017
TAGS: EPET ENRG ECON PREL RS
SUBJECT: GAZPROM HEAD SUGGESTS ELIMINATING "MIDDLEMEN" IN
GAS TRADE WITH UKRAINE
REF: A. KYIV 2611
B. MOSCOW 4932
Classified By: Ambassador William J. Burns for Reasons 1.4 (b/d)
--------------
MEDVEDEV SENDS UP TRIAL BALLOON
--------------
1. (SBU) On October 16, First Deputy Prime Minister and
Gazprom Chairman Dmitriy Medvedev suggested on German
television that Russia is willing to bypass middlemen in its
gas dealings with Ukraine. The recent gas supply dispute
with Ukraine and its subsequent resolution (reftels) raised
questions about the role of two intermediaries, RosUkrEnergo
(RUE) in Russia and UkrGazEnergo (UGE) in Ukraine, in the gas
supply chain to Ukraine. Medvedev appeared to target the
opacity surrounding these entities, referring to
"intermediary structures that are not understandable."
2. (C) Ukrainian Embassy First Secretary Yaroslav Dubovich
told us October 17 that Medvedev's comments were just a trial
balloon and stressed there have been no official negotiations
or dialogue on the issue yet. However, he said Ukraine is
pleased with this development as it prefers to buy gas
directly from Gazprom. He hoped the suggestion would move
forward and help make the gas trade more transparent. He
noted that Yulia Tymoshenko publicly welcomed the idea as
well. Ironically, Gazprom's Director of International
Affairs, Ivan Zolotov, told us privately last week that
Gazprom had called the debt out of concern that it would be
more difficult to collect should Tymoshenko lead the new
government.
--------------
COMMENT
--------------
3. (C) It is too early to know whether Medvedev's suggestion
will gain traction, let alone whether it will ultimately lead
to more transparent and efficient gas trade between Russia
and Ukraine. Those profiting from the current arrangement
will certainly resist. That said, it is apparent from the
quick resolution of this latest dispute that Russia
increasingly cares about its international image as a
reliable supplier. End Comment.
Burns