Identifier
Created
Classification
Origin
08MOSCOW2880
2008-09-29 06:34:00
CONFIDENTIAL
Embassy Moscow
Cable title:  

CZECH DCM SAYS PRESS REPORTS OF DIRECT OIL SALES

Tags:  EPET ENRG ECON PREL RS 
pdf how-to read a cable
VZCZCXRO3577
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHMO #2880 2730634
ZNY CCCCC ZZH
P 290634Z SEP 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 0148
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L MOSCOW 002880 

SIPDIS

DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF

E.O. 12958: DECL: 09/29/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: CZECH DCM SAYS PRESS REPORTS OF DIRECT OIL SALES
PREMATURE

REF: MOSCOW 2262

Classified By: Econ MC Eric T. Schultz for Reasons 1.4 (b/d)

-----------------------------------
NO MOVEMENT YET ON DIRECT OIL SALES
-----------------------------------

C O N F I D E N T I A L MOSCOW 002880

SIPDIS

DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF

E.O. 12958: DECL: 09/29/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: CZECH DCM SAYS PRESS REPORTS OF DIRECT OIL SALES
PREMATURE

REF: MOSCOW 2262

Classified By: Econ MC Eric T. Schultz for Reasons 1.4 (b/d)

--------------
NO MOVEMENT YET ON DIRECT OIL SALES
--------------


1. (C) Czech DCM Hyneck Pejcha told us September 25 that
recent press reports suggesting that Russia and the Czech
Republic had agreed to eliminate middlemen in the oil trade
are premature. He said his government has offered to
negotiate a framework for direct oil sales (reftel),but that
the Russian side has not yet responded. Pejcha said the
Czech offer on direct sales was a "negotiating tactic;" he
did not speculate as to how Russia might respond but said he
expects a response from the GOR prior to upcoming
Russia-Czech Republic Economic Cooperation Commission
meetings in October.


2. (C) Pejcha said oil supplies from Russia to the Czech
Republic in August were 74% of normal flows and that
September deliveries will likely be 80% to 90% of normal
levels. He said the flows are not constant -- they can be at
100% for days, then drop to 50%. He reiterated that the
supply disruptions from Russia, however, have not been a
problem for Czech refineries because they have alternative
suppliers.

--------------
COMMENT
--------------


3. (C) If the Czech Republic is successful in negotiating
transparent direct sales with Russia, it would demonstrate a
second benefit of having alternative suppliers -- encouraging
the Russians to behave commercially.
BEYRLE