PRESIDENT PARVANOV'S VISIT TO EGYPT: BOOSTING

C O N F I D E N T I A L SECTION 01 OF 02 SOFIA 000310

NOFORN
SIPDIS

E.O. 12958: DECL: 05/14/2018
TAGS: ENRG PGOV PREL BU
SUBJECT: PRESIDENT PARVANOV'S VISIT TO EGYPT: BOOSTING
ECONOMIC AND ENERGY TIES

Classified By: DCM Alex Karagiannis for reasons 1.4 (b) and (d).


1. (C) SUMMARY: Bulgarian President Parvanov's April
13-15 visit to Egypt highlighted Bulgaria's desire to
reinvigorate relations with Arab states primarily for
commercial and energy purposes. While in Cairo, the
Bulgarians signed agreements on investment and cooperation in
defense industries and agriculture. Egypt is the fifth
Middle Eastern country Bulgaria's President has visited in
the last six months. According to our contact in the
Egyptian Embassy, Bulgaria sees Egypt as key to
reestablishing old ties with the Middle East and North
Africa. END SUMMARY.

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Parvanov's Meetings
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2. (C) The Bulgarians are touting the Cairo visit as a
foreign policy success and a reinvigoration of ties with the
Middle East. The visit was the first by a Bulgarian head of
state since 1972, when Bulgaria's communist dictator Todor
Zhivkov met Anwar El Sadat. The Bulgarian delegation also
included Economy and Energy Minister Petar Dimitrov, Deputy
Foreign Minister Todor Churov, the Deputy Agriculture
Minister Byurhan Abazov, and MPs Rumen Takarov and Hasan
Ademov. Parvanov and Mubarak discussed areas for future
cooperation, including scientific exchanges, enhanced trade
ties and the potential for Bulgaria to join the Arab gas
pipeline -- to which Egypt, Jordan, Syria, and Lebanon are
parties -- through Turkey and Nabucco. Parvanov also
proposed that the two countries cooperate on nuclear issues,
as both are planning construction of new power plants. The
two sides also discussed the possible participation of
Bulgarian companies in Egyptian oil and gas production.
According to Sherif Ismail, Second Secretary at the Egyptian
Embassy, the Parvanov-Mubarak meeting ran 40 minutes
overtime, which was a good sign. He told us that Egypt wants
to provide Egyptian gas to Nabucco via connecting the Arab
pipeline to Nabucco in Turkey. Egypt offered Bulgarian
companies the opportunity to invest in exploration and
development of Egyptian oil and gas industries. Ismail said
the Bulgarians invited the Egyptian Minister of Petroleum to
Sofia for a future visit, and the Egyptians extended an
invitation to Prime Minster Stanishev to Cairo.



3. (C) According to our MFA contacts, Parvanov discussed
joint investment projects and economic and cultural programs
with Prime Minister Ahmad Nazif. The two sides signed three
bilateral documents during the three-day visit: a Protocol
to the Intergovernmental Agreement on Mutual Protection and
Promotion of Investments, a Memorandum of Understanding on
Cooperation in Defense Industry between the Bulgarian Economy
and Energy Ministry and the Egyptian Ministry of Military
Production, and a Memorandum of Understanding between the
Bulgarian Ministry of Agriculture and Food Supply and Egypt's
Ministry of Irrigation and Water Resources. According to our
MFA and Egyptian Embassy contacts, the visit launched an
Egyptian-Bulgarian business council and the possibility of
re-establishment of regular flights between Sofia and Cairo.
Sherif said that the Egypt wants to increase Egyptian
investment in Bulgaria, but it is difficult to get Egyptian
businesses interested in Bulgaria as a market. He told us
that reestablishing direct flights would further strengthen
business ties. Egypt is Bulgaria's top trading partner in
the Arab world today with bilateral trade totaling $92.3
million in 2007. Ismail told us that Bulgarian-Egyptian
trade during the Communist Era was approximately over $300
million a year, and that he said this trade level could be
reached again in five to six years. According to Ismail, the
Bulgarians see Bulgarian-Egyptian relations as the key to
renewing and expanding relations with Arab nations and
Africa.


4. (SBU) The two sides also discussed the Middle East Peace
Process (MEPP),Iraq, and Iran's Nuclear Program. According
to press, Parvanov said that Bulgaria favored diplomacy to
resolve the Middle East problem, and as an EU Member State,
Bulgaria will insist that the EU take a more active stand on
the MEPP. When asked whether foreign troops in Iraq should
be reduced, Parvanov said the military presence would be
reduced, but did not mention a deadline, adding that
withdrawal would depend on Iraqi authorities, and the
creation of Iraqi security forces that would guarantee Iraq's

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peaceful development. Parvanov publicly stated that the
entire world is calling on Iran to provide full transparency
in its nuclear program.


5. (C) COMMENT: Parvanov's visits to the Middle East --
five countries in the last six months -- underscores
Bulgaria's interest in reinvigorating relations with a region
where it maintained substantial pre-1989 diplomatic,
economic, and investment ties. Citing its EU membership,
Bulgaria is touting itself as a gateway to the European
marketplace. Sofia is also seeking to increase ties with oil
and gas producers to reduce its reliance on Russian energy
sources. END COMMENT.
Beyrle