AMBASSADOR PRESSES CHANCELLOR ON AUSTRO-IRANIAN

C O N F I D E N T I A L VIENNA 002829 SIPDIS SIPDIS E.O. 12958: DECL: 11/20/2022 TAGS: ENRG EPET PREL IR AU SUBJECT: AMBASSADOR PRESSES CHANCELLOR ON AUSTRO-IRANIAN GAS DEAL REF: VIENNA 2815 Classified By: DCM Scott Kilner Reason: 1.4(b) and (d) ¶1. (C) Ambassador McCaw used her Nov. 20 farewell call on Chancellor Gusenbauer to convey again U.S. unhappiness with OMV's South Pars gas deal with Iran. The Ambassador stressed how unhelpful the deal was to the international diplomatic effort to stop Iran's uranium enrichment program. She noted that, even if not implemented, the MoU had represented and been used by the Iranians as a propaganda victory. The Austrian state, as the major shareholder, had a moral responsibility to rein in OMV. ¶2. (C) Gusenbauer did not seek to contest the Austrian government's influence on OMV. Rather, he argued that the government wanted to ensure that OMV had a level-playing field in Iran vis-a-vis its European competitors. The Ambassador noted that, in this respect, OMV was unique - the only European energy firm to have signed a major deal with Iran since the UN sanctions were imposed. In fact, she noted, other European firms were reducing or ending their engagement in Iran. ¶3. (C) Gusenbauer said that Austria would abide by internationally agreed sanctions, including if necessary any agreed in the European Union, but he was not prepared to offer more. He did report that during his recent visit to Paris, President Sarkozy had raised the Iran issue with him, telling Gusenbauer that he was personally "deeply involved" in the matter. McCaw