SLOVENE MINISTER OF ECONOMY ON SOUTH STREAM AND

C O N F I D E N T I A L LJUBLJANA 000347 SIPDIS EUR/CE TOM YEAGER E.O. 12958: DECL: 08/04/2018 TAGS: ECON ENRG PREL SI SUBJECT: SLOVENE MINISTER OF ECONOMY ON SOUTH STREAM AND PRIVATIZATION REF: WEEKLY HIGHLIGHTS FROM EMBASSY LJUBLJANA JUNE 26-JULY 2 Classified By: Ambassador Yousif B. Ghafari for reasons 1.4(b) and (d) In Support of South Stream -------------- ¶1. (C) On July 29, Ambassador Ghafari met the Slovene Minster of Economy Andrej Vizjak to discuss economic development and energy goals. Vizjak expressed his support for the South Stream Pipeline, stating that Slovenia has an "energy deficit" and needs to pursue diversification of energy sources and security of supply. Vizjak stated that the South Stream project would meet that need. He said that experts from the Government of Slovenia (GOS) and Gazprom were looking at the feasibility of the project (ref). The Minister emphasized the fact that the GOS and Gazprom are only in the initial stages and that nothing has been signed. Privatization -------------- ¶2. (SBU) Vizjak conceded that privatization has not gone at the pace initially envisioned by the current coalition government. Still, he pointed to Slovenia's remarkable GDP growth and some new legislation the GOS has implemented as evidence of a successful economic plan. He claimed that "nothing's gone wrong [with the economy] except inflation." Vizjak commented that he believed the American Chamber of Commerce (AmCham) in Slovenia to be very effective. When the Ambassador extended Vizjak an invitation to attend the Southeast Europe Investment Conference in October, Vizjak welcomed the invitation, but was uncertain whether he could attend because of the September 21 parliamentary elections. He said, however, that the Ministry of Economy would send a representative to the conference no matter what. Comment -------------- ¶3. (C) Other sources, including the Russian Ambassador and the CEO of Petrol, have told us that they expect Slovenia to sign the South Stream deal by the end of the year, if not sooner. Vizjak did not seem concerned that other EU member states have expressed concern over Slovenia's possible participation in the South Stream Pipeline. Slovenia has always had a comfortable working relationship with Russia and sees Russia as a huge export opportunity. GHAFARI