Identifier
Created
Classification
Origin
08ANKARA1430
2008-08-11 16:11:00
CONFIDENTIAL
Embassy Ankara
Cable title:  

TURKISH REACTION TO DEMARCHE DISCOURAGING AN

Tags:  ECON ENRG EPET ETTC AJ IR TU 
pdf how-to read a cable
VZCZCXYZ0009
PP RUEHWEB

DE RUEHAK #1430/01 2241611
ZNY CCCCC ZZH
P 111611Z AUG 08
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 7100
INFO RUEHAH/AMEMBASSY ASHGABAT PRIORITY 1957
RUEHKB/AMEMBASSY BAKU PRIORITY 1565
RUEHIT/AMCONSUL ISTANBUL PRIORITY 4590
RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0184
RUCNDT/USMISSION USUN NEW YORK PRIORITY 3196
C O N F I D E N T I A L ANKARA 001430 

SIPDIS

EUR/SE MALIK, EUR/ERA MCCONAHA, E WOOSTER, EEB/ESC COULTER
AND WRIGHT, NEA/IR GROEN, SCA/CEN SNELSIRE

E.O. 12958: DECL: 08/11/2018
TAGS: ECON ENRG EPET ETTC AJ IR TU
SUBJECT: TURKISH REACTION TO DEMARCHE DISCOURAGING AN
IRAN-TURKEY NATURAL GAS AGREEMENT

REF: SECSTATE 85099

Classified By: ECONOMIC COUNSELOR DALE EPPLER FOR REASONS 1.4 B AND D.

C O N F I D E N T I A L ANKARA 001430

SIPDIS

EUR/SE MALIK, EUR/ERA MCCONAHA, E WOOSTER, EEB/ESC COULTER
AND WRIGHT, NEA/IR GROEN, SCA/CEN SNELSIRE

E.O. 12958: DECL: 08/11/2018
TAGS: ECON ENRG EPET ETTC AJ IR TU
SUBJECT: TURKISH REACTION TO DEMARCHE DISCOURAGING AN
IRAN-TURKEY NATURAL GAS AGREEMENT

REF: SECSTATE 85099

Classified By: ECONOMIC COUNSELOR DALE EPPLER FOR REASONS 1.4 B AND D.


1. (C) Summary: Ambassador raised US concerns per reftel
with Turkish MFA U/S Apakan on August 8. Apakan said the US
message was clearly understand and that there would be
"nothing new, tangible or solid" on energy signed with Iran
anytime soon. MFA Energy Office Director Altay said August
11 that the GOT had discussed energy issues with Iranian
officials last week, but that no agreement had been reached
on any point. If an energy agreement is reached during the
Ahmedinejad visit, &pipelines will not be the subject,8 but
Altay declined to say what subjects were possible. Turkey
understands USG "sensitivities" and its international
obligations, but has to talk with Iran, its neighbor and
energy supplier. Turkey needs gas, and Iran has gas to meet
Turkish needs. Absent other supply, Turkey cannot take
Iranian gas off the table. On BTC, Altay said the fire at
the explosion site burned out on August 11, and that an
investigation will get underway once the site cools. He said
Russian actions in Georgia called into question the ability
of Azerbaijan to export oil and gas to Western markets and
strengthened the case for diversification of sources,
including Iran. End summary.


2. (C) Ambassador Wilson raised US concerns per reftel with
Turkish MFA U/S Apakan on August 8, highlighting that a
demarche under instructions from Washington instructions was
also being delivered to MFA staff to state our concerns in
detail. Apakan said he would study the demarche. He
indicated that the US message he heard from U/S Burns and the
Ambassador was clearly understood. He said that there will
be "nothing new, tangible or solid" in the Turkish-Iranian
energy field anytime soon and certainly no contractual
commitments.


3. (C) In a follow-up meeting with MFA Energy Office Director
Vural Altay on August 11, we presented the reftel demarche in

detail and inquired about the progress of talks with Iranian
officials in advance of the visit of Iranian President
Ahmedinejad on August 14-15. Altay said that an Iranian
delegation was in Ankara last week and that energy was among
the issues discussed, but said that no agreement had been
reached on any point. He noted that the Iranians were
"difficult negotiators," and said he was not expecting any
major advances anytime soon.


4. (C) We raised detailed press reports of potential
agreements on pipeline projects. Altay said that if any
agreement is reached during the Ahmedinejad visit "I assure
you that pipelines will not be among the subjects." He
declined to say if this meant that pipeline projects were not
even being discussed, only that there won,t be any MOU
signed that deals with pipelines this week. (Comment: Energy
Ministry contacts told us last week that the detailed press
reports about a pipeline for Turkmen gas across Iran, and a
pipeline to transport South Pars gas to Europe across Turkey,
reflected proposals that had been discussed at a "technical
level" between Turkish state oil company TPAO and Iran, but
that those discussions was nowhere near ready to be turned
into an agreement. End comment.) Altay also declined to say
if electricity was a potential subject for an energy MOU that
might be signed. He noted only that despite the agreement
for Iran to supply electricity to Turkey reached earlier this
year, no progress had been made towards actually providing
electricity.


5. (C) Turning to the substance of our demarche, Altay said
that Turkey well understands USG "sensitivities" about Iran
and the provisions of the Iran Sanctions Act. They also
understand their international obligations and sanctions
against Iran, and were proceeding to talk with the Iranians
with those limits in mind. However, they must talk to an
Iran that is their neighbor, trading partner and gas
supplier. Also, "it is a fact that Turkey needs gas and
that Iran has gas to meet our needs. If someone were to give
us supply from another country, we would not need to talk
with Iran." They are looking years down the road, and are
not in a position to take Iranian gas off the table.


6. (C) We had a short discussion of the status of the BTC
pipeline. Altay said that the fire at the explosion site in
Erzincan finally burned out on August 11. Once the site
cools down, an investigation would begin on its causes. He

said that there had been an electronic warning at that point
five minutes before the explosion that shut down the
pipeline, and this indicated a technical cause of the blast,
despite PKK claims to have bombed the site. He said the BTC
pipeline should be back in operation in a few weeks, unless
events in Georgia caused new problems. Altay had not seen
press reports of Russian military forces targeting the BTC
pipeline. He said any deliberate attack on the BTC should be
seen as an attack on the economic interests of the BTC
partners, including Turkey and the United States. He said
the Russians seemed intent on regime change in Georgia, and
that this called into question the ability of Azerbaijan to
export its oil and gas anywhere except north to Russia.
"This really makes the case for diversification of sources,"
he said, including Iran.



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