OIL FUND AGAIN REQUESTS U.S. SUPPORT TO BRING

C O N F I D E N T I A L BAKU 000686 SIPDIS E.O. 12958: DECL: 07/18/2018 TAGS: ECON PGOV PREL AJ SUBJECT: OIL FUND AGAIN REQUESTS U.S. SUPPORT TO BRING UNITED NATIONS EITI RESOLUTION TO A VOTE REF: (A) BAKU 442 (B) STATE 55886 Classified By: AMBASSADOR ANNE E. DERSE PER REASONS 1.4 (B,D) ¶1. (U) This is an action request. See paragraph 5. ¶2. (C) The Executive Director of Azerbaijan's State Oil Fund (SOFAZ) Shahmar Movsumov called Ambassador Derse July 11 to ask that the United States now support bringing the Azerbaijan-sponsored United Nations resolution on Extractive Industries Transparency Initiative (EITI) (REFTEL A) to a vote. Movsumov said he understood the USG's long-standing position to be that the resolution should be agreed only by consensus. However, having held consultations with G-77 countries this spring and summer, he hopes the U.S. would reconsider its position and support moving the resolution forward in the United Nations for a vote. Movsumov told the Ambassador that Iran and Venezuela continue to oppose the resolution and indicate that his soundings will not/not change their positions. Therefore Iran and Venezuela will stand in the way of a G-77 consensus. These two countries, Movsumov emphasized, should not be allowed to prevent the resolution from coming to a vote, and he hoped the U.S. would thus voice its support for moving the process forward, despite the lack of consensus. ¶3. (C) Per reftel B, the Embassy briefed the Oil Fund's EITI coordinator in May regarding the U.S. position on the UN EITI resolution. At that time, the Oil Fund EITI coordinator said that he would discuss the issue with Movsumov. ¶4. (C) Comment: Embassy notes that Azerbaijan is not often viewed favorably in terms of transparency and business climate, and is listed near the bottom of countries in Transparency International's rankings. Transparent management of Azerbaijan's Oil Fund and Azerbaijan's positive record of leadership on EITI stand in stark contrast. The Oil Fund won a UN Public Service Award last year, and SOFAZ is widely seen as one of Azerbaijan's best-managed institutions. Embassy believes that supporting Azerbaijan's EITI resolution would bolster bilateral relations and give well deserved positive feedback and additional confidence to Movsumov and his colleagues at SOFAZ. ¶5. (C) ACTION REQUEST: We request guidance to respond directly to Movsumov, since he raised the issue with the Ambassador. Movsumov stated that he would also welcome the opportunity to discuss the issue with relevant Department officials, and we would appreciate a contact to which we can refer him. DERSE