Identifier
Created
Classification
Origin
09BRUSSELS887
2009-06-26 14:48:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
USEU Brussels
Cable title:
ENERGY CHARTER SECRETARIAT CAUTIOUSLY OPTIMISTIC
how-toVZCZCXRO0027 RR RUEHAG RUEHAST RUEHDF RUEHDH RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD RUEHROV RUEHSL RUEHSR RUEHTM RUEHTRO DE RUEHBS #0887 1771448 ZNR UUUUU ZZH R 261448Z JUN 09 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE RUCNMEU/EU INTEREST COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHKV/AMEMBASSY KYIV RUEHMO/AMEMBASSY MOSCOW
UNCLAS BRUSSELS 000887
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN
SUBJECT: ENERGY CHARTER SECRETARIAT CAUTIOUSLY OPTIMISTIC
ON RUSSIAN PROPOSALS
Sensitive but Unclassified - not for Internet distribution.
UNCLAS BRUSSELS 000887
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN
SUBJECT: ENERGY CHARTER SECRETARIAT CAUTIOUSLY OPTIMISTIC
ON RUSSIAN PROPOSALS
Sensitive but Unclassified - not for Internet distribution.
1. (SBU) Summary. Ambassador Andre Mernier, Secretary
General of the Energy Charter Secretariat, told Econ Officers
June 22 that he is cautiously optimistic Russia will be
willing to work to add to the existing Energy Charter Treaty
(ECT) to address their concerns over gas transit, rather than
withdrawing from the ECT as he had originally feared. Moscow
had threatened to "withdraw their signature" from the ECT to
negotiate a new multilateral energy treaty from scratch. The
Russians appear to have reconsidered this position and now
appear willing to examine the possibility of expanding the
ECT to include "crisis management" provisions. Mernier said
that an Ad hoc Working Group will meet September 22 to "try
to put some flesh on the bones the Russians have thrown us."
Mernier agreed Moscow is seriously concerned about the Yukos
case; he expects UNCITRAL in The Hague to rule shortly on the
company's claim that Russia's $30 billion-plus tax penalty
was an illegal expropriation under ECT's "provisional
application." End Summary.
2. (SBU) On June 23 EMinCouns met with Ambassador Andre
Mernier, Secretary General of the Energy Charter Secretariat,
to discuss the recent Russian proposals for a new
international energy treaty. Mernier said that the
Secretariat welcomes the Russian suggestions as negotiating
points to modernize the Energy Charter Treaty (ECT),but is
not willing to start from scratch to negotiate a new treaty
based on the Russian suggestions. The Russians argue that
the ECT is insufficient because it does not cover gas transit
and does not provide mechanisms for crisis management.
3. (SBU) Mernier said that the Secretariat is willing to look
at "modernizing" the ECT to cover these issues. He said this
is a reflection of the Secretariat's longstanding goal of
getting ratification by the Russians. He also acknowledged
that the world has changed in the 20 some odd years since the
ECT was negotiated (principally between Western Europe and
the then Soviet Union). At the time the treaty was
negotiated, gas transit was not the issue for the parties
that it is today.
4. (SBU) Mernier is cautiously optimistic Russia will be
willing to work to add to the existing Energy Charter Treaty
(ECT) to address their concerns over gas transit, rather than
withdrawing from the ECT as he had originally feared. Moscow
had threatened to "withdraw their signature" from the ECT to
negotiate a new multilateral energy treaty from scratch. The
Russians appear to have reconsidered this position and now
appear willing to examine the possibility of expanding the
ECT to include "crisis management" provisions. For its part,
Mernier said the Secretariat is willing to look at ways to
expand the treaty to cover other areas of concern to the
Russians such as nuclear, coal, and oil.
5. (SBU) From Mernier's viewpoint, the worse case scenario
would have been if Russia really didn't want any treaty at
all. By withdrawing from the ECT the Russians could send the
international community off on a multi-year, wild goose chase
after a treaty that would never materialize. Mernier
confided that he was quite concerned when, the day before the
last working group on was to be held on June 16, the
Secretariat had received no notification that the Russians
would be attending. The Russians did, however, send in
notification at the last minute (18:00 on June 15) that they
would attend. And Mernier was pleased with the preliminary
discussions at that working group. Mernier said that an Ad
hoc Working Group will meet September 22 to "try to put some
flesh on the bones the Russians have thrown us."
6. (SBU) Mernier agreed Moscow is seriously concerned about
the Yukos case; he expects UNCITRAL in The Hague to rule
shortly on the company's claim that Russia's $30 billion-plus
tax penalty was an illegal expropriation under ECT's
"provisional application." Ironically, Mernier said it might
be good if the case is decided in Russia's favor. Mernier
said this would demonstrate to the Russians that
international agreements are not just there to work against
them.
Murray
.
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EPET EUN
SUBJECT: ENERGY CHARTER SECRETARIAT CAUTIOUSLY OPTIMISTIC
ON RUSSIAN PROPOSALS
Sensitive but Unclassified - not for Internet distribution.
1. (SBU) Summary. Ambassador Andre Mernier, Secretary
General of the Energy Charter Secretariat, told Econ Officers
June 22 that he is cautiously optimistic Russia will be
willing to work to add to the existing Energy Charter Treaty
(ECT) to address their concerns over gas transit, rather than
withdrawing from the ECT as he had originally feared. Moscow
had threatened to "withdraw their signature" from the ECT to
negotiate a new multilateral energy treaty from scratch. The
Russians appear to have reconsidered this position and now
appear willing to examine the possibility of expanding the
ECT to include "crisis management" provisions. Mernier said
that an Ad hoc Working Group will meet September 22 to "try
to put some flesh on the bones the Russians have thrown us."
Mernier agreed Moscow is seriously concerned about the Yukos
case; he expects UNCITRAL in The Hague to rule shortly on the
company's claim that Russia's $30 billion-plus tax penalty
was an illegal expropriation under ECT's "provisional
application." End Summary.
2. (SBU) On June 23 EMinCouns met with Ambassador Andre
Mernier, Secretary General of the Energy Charter Secretariat,
to discuss the recent Russian proposals for a new
international energy treaty. Mernier said that the
Secretariat welcomes the Russian suggestions as negotiating
points to modernize the Energy Charter Treaty (ECT),but is
not willing to start from scratch to negotiate a new treaty
based on the Russian suggestions. The Russians argue that
the ECT is insufficient because it does not cover gas transit
and does not provide mechanisms for crisis management.
3. (SBU) Mernier said that the Secretariat is willing to look
at "modernizing" the ECT to cover these issues. He said this
is a reflection of the Secretariat's longstanding goal of
getting ratification by the Russians. He also acknowledged
that the world has changed in the 20 some odd years since the
ECT was negotiated (principally between Western Europe and
the then Soviet Union). At the time the treaty was
negotiated, gas transit was not the issue for the parties
that it is today.
4. (SBU) Mernier is cautiously optimistic Russia will be
willing to work to add to the existing Energy Charter Treaty
(ECT) to address their concerns over gas transit, rather than
withdrawing from the ECT as he had originally feared. Moscow
had threatened to "withdraw their signature" from the ECT to
negotiate a new multilateral energy treaty from scratch. The
Russians appear to have reconsidered this position and now
appear willing to examine the possibility of expanding the
ECT to include "crisis management" provisions. For its part,
Mernier said the Secretariat is willing to look at ways to
expand the treaty to cover other areas of concern to the
Russians such as nuclear, coal, and oil.
5. (SBU) From Mernier's viewpoint, the worse case scenario
would have been if Russia really didn't want any treaty at
all. By withdrawing from the ECT the Russians could send the
international community off on a multi-year, wild goose chase
after a treaty that would never materialize. Mernier
confided that he was quite concerned when, the day before the
last working group on was to be held on June 16, the
Secretariat had received no notification that the Russians
would be attending. The Russians did, however, send in
notification at the last minute (18:00 on June 15) that they
would attend. And Mernier was pleased with the preliminary
discussions at that working group. Mernier said that an Ad
hoc Working Group will meet September 22 to "try to put some
flesh on the bones the Russians have thrown us."
6. (SBU) Mernier agreed Moscow is seriously concerned about
the Yukos case; he expects UNCITRAL in The Hague to rule
shortly on the company's claim that Russia's $30 billion-plus
tax penalty was an illegal expropriation under ECT's
"provisional application." Ironically, Mernier said it might
be good if the case is decided in Russia's favor. Mernier
said this would demonstrate to the Russians that
international agreements are not just there to work against
them.
Murray
.