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. -------------- Parvanov's Meetings -------------- ¶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 SOFIA 00000310 002 OF 002 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