EU ENERGY SECURITY GOALS FOR THE SENIOR LEADERSHIP

UNCLAS BRUSSELS 001465 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EPET EU SUBJECT: EU ENERGY SECURITY GOALS FOR THE SENIOR LEADERSHIP GROUP MEETING ¶1. (SBU) Econ Officer spoke with Ulrich Eckle, Principal Administrator for Relations with the United States and Canada at DG-RELEX, on September 19 about the EU position on energy security going into the U.S./EU Senior Leadership Group (SLG) meeting. ¶2. (SBU) According to Eckle, the EU,s number one priority, as set forth in the Third Energy Package, is the realization of a common EU internal market for gas and electricity. This package is intended to increase the interconnections between member states and decreasing Russia's (or others) ability to disrupt supplies -- a supply disruption in one member state could be offset by shifting supplies from another member state is the best means to providing energy security. The EU Commission's goal is to push for adoption of the Third Energy Package during the French Presidency. ¶3. (SBU) The Commission's second priority is for passage of the Climate and Energy Package. This package requires member states to improve in energy efficiency and to increase the use of renewables, both of which would decrease dependence on imports. ¶4. (SBU) The Commission shares the U.S. view of the importance of increasing outreach to the Caspian and is planning on organizing a high-level Energy Summit as part of their "Baku Initiative," although no date has been set. The EU is also looking at expanding cooperation with Ukraine, and is planning to organize a conference this year for investors to talk about ways to upgrade Ukraine's energy infrastructure. EU officials plan to invite representatives from the U.S. and Russia to participate. ¶5. (SBU) The Commission realizes the importance of Turkey to any discussion of opening up the Southern Corridor, but Eckle stressed that negotiations with Turkey are complex. He said there are those within the Commission that support opening up the Energy Chapter as an incentive for Turkey on the transit issue, but there is disagreement (especially among member states) over whether or not they should go down this path. ¶6. (SBU) Eckle also stressed that the EU is in a difficult position with Russia because of their dependence on Russian gas supplies. Eckle echoed the EU line that Russia has been a very reliable supplier and that the EU and Russia have a mutual dependence as supplier and consumer. ¶7. (SBU) Comment. Recent discussions with other EU officials, think tanks, and industry officials indicate that Eckle's view of Russia as a reliable supplier is less commonly shared after the events in Georgia. Many Europeans Econ Officer has spoken with now question whether they can continue to rely on Russia and are waking up to the reality that many member states, particularly in the East, remain vulnerable to supply disruptions. End Comment. Silverberg. .