AUSTRIA POSTPONES SOUTH STREAM TALKS

C O N F I D E N T I A L VIENNA 001263 SIPDIS E.O. 12958: DECL: 09/03/2023 TAGS: PREL ENRG AU RU GG SUBJECT: AUSTRIA POSTPONES SOUTH STREAM TALKS REF: (A) VIENNA 1259 (B) VIENNA 1247 AND PREVIOUS Classified By: Econ/Pol Counselor Dean Yap. Reason: 1.4(b) and (d) (C) Austria has decided to postpone indefinitely the opening of formal talks with Russia on Austrian participation in the South Stream project. The unexpected but very welcome decision, apparently made late Sept. 2, follows multiple Embassy interventions with the Foreign and Economics Ministries and the energy firm OMV. Officials of the latter first informed Embassy of the decision early Sept. 3. It was subsequently confirmed by International Energy Affairs staff at the Economics Ministry. The decision to postpone may well have also been influenced by the EU's decision to suspend its Partnership negotiations with Russia. Post understands from an EU Embassy that among the proposals at the September 1 EU Council was a suspension of all meetings with the Russians in September. It also comes in the context of the NSG discussion about an exception for India, in which Austria is among a handful of states insisting on amendments thus far rejected by India. Girard-diCarlo