Identifier
Created
Classification
Origin
08CHISINAU579
2008-06-03 10:43:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Chisinau
Cable title:
UKRAINE AND MOLDOVA SOLVE THAT DAM PROBLEM
how-toVZCZCXRO9766 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHCH #0579 1551043 ZNR UUUUU ZZH R 031043Z JUN 08 FM AMEMBASSY CHISINAU TO RUEHC/SECSTATE WASHDC 6730 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS CHISINAU 000579
SENSITIVE
SIPDIS
STATE FOR EUR/UMB
BUDAPEST FOR REGIONAL ENVIRONMENTAL HUB
E.O. 12958: N/A
TAGS: PBTS PREL ENRG ECON UA MD
SUBJECT: UKRAINE AND MOLDOVA SOLVE THAT DAM PROBLEM
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
UNCLAS CHISINAU 000579
SENSITIVE
SIPDIS
STATE FOR EUR/UMB
BUDAPEST FOR REGIONAL ENVIRONMENTAL HUB
E.O. 12958: N/A
TAGS: PBTS PREL ENRG ECON UA MD
SUBJECT: UKRAINE AND MOLDOVA SOLVE THAT DAM PROBLEM
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
1. (SBU) SUMMARY: Moldova and Ukraine reached a settlement on the
disputed ownership of the Novodnestrovsk hydroelectric power plant,
which spans the Dniester River and partially sits on Moldovan
territory. In return for Chisinau's recognition of Ukraine's full
ownership of the power plant, Kyiv recognized some 60 Moldovan
property claims in Ukraine and agreed to continue providing Moldova
low-cost electricity until June 2009. Following the resolution of
this dispute, Ukraine will likely soften its objections to Moldova's
Danube River port. END SUMMARY.
POWER PLANT DISCORD
--------------
2. (SBU) During his May 20 visit to Kyiv, First Deputy Prime
Minister Igor Dodon publicly stated that the Republic of Moldova had
no claims to the Novodnestrovsk power plant. Despite the Border
Treaty ratified in 2001, Moldova had informally disputed the
ownership of the Novodnestrovsk power plant. Built by the Soviet
Union as a federal asset, the power plant spans the Dniester River
and is located on present-day Ukrainian and Moldovan territory.
Following the collapse of the Soviet Union, the plant became a
state-owned Ukrainian enterprise.
3. (SBU) After a critical article published by the pro-GOM newspaper
"Nezavisimaya Moldova," Ukraine's Ambassador to Moldova, Sergei
Pirozhkov, made harsh public statements rejecting accusations that
Ukraine was violating Moldova's sovereign territory. He stressed
that, despite speculations, the Republic of Moldova had never
claimed ownership of the power plant. However, in his statements
Pirozhkov linked recognition of Moldovan property rights in Ukraine
(mainly assets owned by the former Moldovan Socialist Soviet
Republic),negotiations on the price for supplies of Ukrainian
electricity, and Ukraine's participation in the Transnistria
settlement talks with the resolution of the Novodnestrovsk issue.
ONE PENNY: A GOOD PRICE FOR A GOOD SOLUTION
--------------
4. (SBU) During his May 20 visit to Kyiv, First Deputy Prime
Minister Igor Dodon held negotiations with Ukrainian officials on
the price for and supply of electricity. Currently, Moldova imports
over 70% of its electricity from Ukraine, paying 0.04 USD per
kilowatt hour (kWh). Moldova's price is considerably lower than the
domestic Ukrainian price of 0.062 USD/kWh. Previously, Moldova had
agreed to Kyiv's demands of a gradual price increase to 0.06 USD/kWh
by July 2009. However, following Dodon's visit, the two sides
agreed to raise the price only to 0.05 USD/kWh by July 2009.
5. (SBU) Dodon announced that Ukraine would recognize pending
Moldovan claims for some 60 properties in Ukraine. Moldovan and
Ukrainian officials also resumed talks on the construction of the
Novodnestrovsk-Balti-Suceava high-voltage power line to Romania.
Although Moldova, Romania and Ukraine have all expressed their
interest in the project and the EU has committed financing, Ukraine
had unofficially linked its participation to the resolution of the
Novodnestrovsk problem.
6. (SBU) On May 28, local media reported on Moldovan-
Ukrainian consultations in Chisinau focused on the environmental
impact of the Novodnestrovsk power plant and the oil terminal at
Moldova's Giurgiulesti Danube port. The two sides created an
expert-level working group to assess the impact of the power plant
on the Dniester River. They also agreed to seek assistance via the
Convention on Environmental Impact Assessment in a Transboundary
Context (Espoo, 1991). (NOTE: Both countries have ratified the
Espoo Convention.)
COMMENT
--------------
7. (SBU) The Novodnestrovsk power plant has been an irritant in
Moldovan-Ukrainian relations, impeding the demarcation of the border
and the mutual recognition of property rights. Ukraine's concession
to continue providing lower-than-market prices for electricity is an
important political sign of support for the GOM. Faced with calls
from the opposition to fight for Moldova's rights over the
Novodnestrovsk power plant and its electricity, Dodon was able to
score an important victory for the GOM. Securing supplies of
low-cost electricity will help drive economic growth and keep the
electorate happy prior to the national elections in 2009.
KIRBY
SENSITIVE
SIPDIS
STATE FOR EUR/UMB
BUDAPEST FOR REGIONAL ENVIRONMENTAL HUB
E.O. 12958: N/A
TAGS: PBTS PREL ENRG ECON UA MD
SUBJECT: UKRAINE AND MOLDOVA SOLVE THAT DAM PROBLEM
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
1. (SBU) SUMMARY: Moldova and Ukraine reached a settlement on the
disputed ownership of the Novodnestrovsk hydroelectric power plant,
which spans the Dniester River and partially sits on Moldovan
territory. In return for Chisinau's recognition of Ukraine's full
ownership of the power plant, Kyiv recognized some 60 Moldovan
property claims in Ukraine and agreed to continue providing Moldova
low-cost electricity until June 2009. Following the resolution of
this dispute, Ukraine will likely soften its objections to Moldova's
Danube River port. END SUMMARY.
POWER PLANT DISCORD
--------------
2. (SBU) During his May 20 visit to Kyiv, First Deputy Prime
Minister Igor Dodon publicly stated that the Republic of Moldova had
no claims to the Novodnestrovsk power plant. Despite the Border
Treaty ratified in 2001, Moldova had informally disputed the
ownership of the Novodnestrovsk power plant. Built by the Soviet
Union as a federal asset, the power plant spans the Dniester River
and is located on present-day Ukrainian and Moldovan territory.
Following the collapse of the Soviet Union, the plant became a
state-owned Ukrainian enterprise.
3. (SBU) After a critical article published by the pro-GOM newspaper
"Nezavisimaya Moldova," Ukraine's Ambassador to Moldova, Sergei
Pirozhkov, made harsh public statements rejecting accusations that
Ukraine was violating Moldova's sovereign territory. He stressed
that, despite speculations, the Republic of Moldova had never
claimed ownership of the power plant. However, in his statements
Pirozhkov linked recognition of Moldovan property rights in Ukraine
(mainly assets owned by the former Moldovan Socialist Soviet
Republic),negotiations on the price for supplies of Ukrainian
electricity, and Ukraine's participation in the Transnistria
settlement talks with the resolution of the Novodnestrovsk issue.
ONE PENNY: A GOOD PRICE FOR A GOOD SOLUTION
--------------
4. (SBU) During his May 20 visit to Kyiv, First Deputy Prime
Minister Igor Dodon held negotiations with Ukrainian officials on
the price for and supply of electricity. Currently, Moldova imports
over 70% of its electricity from Ukraine, paying 0.04 USD per
kilowatt hour (kWh). Moldova's price is considerably lower than the
domestic Ukrainian price of 0.062 USD/kWh. Previously, Moldova had
agreed to Kyiv's demands of a gradual price increase to 0.06 USD/kWh
by July 2009. However, following Dodon's visit, the two sides
agreed to raise the price only to 0.05 USD/kWh by July 2009.
5. (SBU) Dodon announced that Ukraine would recognize pending
Moldovan claims for some 60 properties in Ukraine. Moldovan and
Ukrainian officials also resumed talks on the construction of the
Novodnestrovsk-Balti-Suceava high-voltage power line to Romania.
Although Moldova, Romania and Ukraine have all expressed their
interest in the project and the EU has committed financing, Ukraine
had unofficially linked its participation to the resolution of the
Novodnestrovsk problem.
6. (SBU) On May 28, local media reported on Moldovan-
Ukrainian consultations in Chisinau focused on the environmental
impact of the Novodnestrovsk power plant and the oil terminal at
Moldova's Giurgiulesti Danube port. The two sides created an
expert-level working group to assess the impact of the power plant
on the Dniester River. They also agreed to seek assistance via the
Convention on Environmental Impact Assessment in a Transboundary
Context (Espoo, 1991). (NOTE: Both countries have ratified the
Espoo Convention.)
COMMENT
--------------
7. (SBU) The Novodnestrovsk power plant has been an irritant in
Moldovan-Ukrainian relations, impeding the demarcation of the border
and the mutual recognition of property rights. Ukraine's concession
to continue providing lower-than-market prices for electricity is an
important political sign of support for the GOM. Faced with calls
from the opposition to fight for Moldova's rights over the
Novodnestrovsk power plant and its electricity, Dodon was able to
score an important victory for the GOM. Securing supplies of
low-cost electricity will help drive economic growth and keep the
electorate happy prior to the national elections in 2009.
KIRBY