HUNGARY'S COMMENTS ON THE NOVEMBER GAERC AGENDA

C O N F I D E N T I A L BUDAPEST 000817 SENSITIVE SIPDIS DEPARTMENT FOR EUR/CE JAMIE MOORE AND EUR/ERA LIZ KONICK E.O. 12958: DECL: 11/12/2014 TAGS: PREL EU RU UA HU SUBJECT: HUNGARY'S COMMENTS ON THE NOVEMBER GAERC AGENDA REF: KONICK NOVEMBER 9 EMAIL Classified By: Political Officer Jon Martinson, reasons 1.4 (b,d) ¶1. (SBU) MFA EU External Relations and Crisis Situations Section Chief Andras Dekany discussed ref email topics with PolOff on November 13. ¶2. (C) Dekany provided comments on four topics: the upcoming EU/Russia summit, energy, follow-up to the Corfu summit, and Ukraine. -- The EU/Russia summit: Dekany said that the Swedish presidency wants to have a strategic discussion on the EU's Russian policy during the Foreign Ministers' dinner. Dekany said the topics are still quite fluid, but Hungary views a balanced EU policy towards Russia, one that emphasizes reliability, predictability, and transparency as important. Issues to be addressed leading up to the upcoming EU/Russia summit include an "early warning system" on energy supplies, and climate change. For Hungary, Dekany said that the Summit discussion should also address "common neighborhood" issues, to include the worsening situation in the North Caucuses that threatens Russia's stability. Noting that Moscow should not view the EU's Eastern Partnership program as threatening, Dekany added that it provides an opportunity to improve social and economic conditions in the region, which will help counter authoritarian political tendencies in Russia. -- Energy: Dekany said Hungary's message to Moscow is that the EU is its most reliable customer, and there is a solid basis for mutually beneficial interests. While Russia should comply with its commitments, the Russia-Ukraine issue is, according to Dekany, a bi-lateral issue. He commented that Russia also needs to hear the message that its use of energy to achieve geo-political objectives contributes to its negative international image. -- Corfu: Hungary views as important internal EU consultations on the Medvedev proposal for a new security architecture and a follow-on formal framework for future discussions without prejudicing the outcome. That said, Dekany commented that any decisions should not result in a lessening of EU/NATO cohesion nor the need for new structures. He stressed the importance of a strong transatlantic pillar and the need to "channel the U.S and Canada into the process." -- Ukraine: Dekany stated that the EU is working on a joint statement for the upcoming December 4 EU Troika summit in Kiev. He said the summit will address three subjects: security of gas transit and energy efficiency, the economic and financial crisis, and the internal political situation. According to Dekany, the main goals of the summit are coordinating and managing the upcoming elections to meet EU norms; substantial movement on reforms for sustainable economic growth and effective State institutions; governmental reforms to create a stable, transparent legal system; and efforts to strengthen an "EU identity." Dekany expressed Hungarian concerns as to how long and to what extent the EU can continue to finance a Ukraine system that "is on the verge of collapse," personally questioning "how long will we tolerate Ukraine 'blackmail' as to the state of its economy." ¶3. (SBU) Dekany stated that he does not expect Somalia to be an agenda item. LEVINE