BULGARIA: PM BORISSOV SEEKING WHITE HOUSE

S E C R E T SECTION 01 OF 02 SOFIA 000538 SIPDIS DOE FOR JELKIND, TCUTLER, PYOSHIDA, KTHOMPSON, DEPT FOR AMB. MORNINGSTAR, JNEISHWAT, S/ES-CR, S/ES-O AND EUR/CE E.O. 12958: DECL: 09/24/2019 TAGS: ENRG IAEA PREL PGOV BU SUBJECT: BULGARIA: PM BORISSOV SEEKING WHITE HOUSE ENGAGEMENT ON STRATEGIC ENERGY DECISIONS REF: A. ADAMS-SMITH E-MAIL 9/24/09 ¶B. SOFIA 507 ¶C. SOFIA 499 ¶D. SOFIA 0363 AND PREVIOUS Classified By: CDA John Ordway for reasons 1.4 (b) and (d). ¶1. (S) SUMMARY: A letter from Prime Minister Boyko Borissov to President Obama dated September 24, 2009, was hand-delivered to the Embassy the same day with an urgent request to transmit it to the White House. In the letter, the PM asks for advice on strategic decisions in the energy sector to achieve his goals of rooting out corruption, enhancing transparency and reducing reliance on Russia. The Prime Minister asked for direct interaction with the U.S. to assist in improving European energy security by diversifying supplies and transit routes. Text of the letter is provided in para 2 and ref A emails. End Summary. TEXT OF PRIME MINISTER BORRISOV LETTER -------------- ¶2. (SBU) BEGIN TEXT OF THE LETTER Barack H. Obama President of the United States of America The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Sofia, 24 September 2009 Mr. President, When my party won the clear electorate mandate in the parliamentary elections in July 2009, Bulgaria entered the first economic downturn in a decade, compounded by urgent need for reforms in key policy areas. With such a clear victory came also high expectations and responsibility. Since taking office in July 2009, my government has implemented concrete actions in eradicating corruption and organized crime that have significantly slowed down the reform process in Bulgaria for the past several years and have tarnished Bulgaria's reputation. My country faces formidable challenges requiring strategic decisions with long term implications for Europe. Nowhere else are these challenges more complex and important than in the energy sector. In order to ensure the economic and social well-being of my people, Bulgaria must have a strategy that targets safe, affordable, and reliable supplies of energy. We need to maintain diversity of fuels from a multiplicity of sources ) we must not depend on a single supplier. The gas crisis of early 2009 affected the whole Europe but Bulgaria suffered the most with a direct and severe impact on its citizens and its economy. The crisis further enforced the need for diversification and alternatives. Bulgaria's energy sector has been plagued with corruption, inefficiency and lack of strategic planning. I am committed to change the practice of "business as usual" in the Bulgarian energy sector to provide my people with stable and reliable sources of energy. My country being at the cross roads of major transit routes, I want to ensure that Bulgaria will play a role in the realization of alternative transit infrastructure for diversified energy supplies for Europe. My government is ready to implement strategic decisions to create a transparent, diversified, and efficient energy sector. As a first step, we are currently evaluating the large-scale Russian-proposed projects in the gas and oil transit and nuclear energy production, to which the previous government had committed. These projects have strategic implications for Europe, the Black-sea-Caspian Region, and Eurasia. I would very much like to meet with you and your representatives in the near future to discuss details of these important projects and reforms in the energy sector of my country. I want to move forward immediately to implement SOFIA 00000538 002 OF 002 a change -- a change that is good for Bulgaria, Europe and the Black Sea -- Caspian Region. I sincerely believe that our meetings will help my government achieve one of its top priority objectives that will support diversified energy sources in Europe. /Signed/ Boyko Borissov Prime Minister of the Republic of Bulgaria END OF THE TEXT OF THE LETTER COMMENT -------------- ¶3. (S) Borissov wants visible engagement with us to counter-balance tough Russian pressure. PM Putin told Borissov that he expects answers from Bulgaria on large-scale, Russian-backed projects in November. Although they are dependent on Russia for the bulk of their energy supply, Borissov and his young, pro-western, Russia-skeptic team are searching for better options. We should seize this opportunity to provide them strategic and technical advice and show our engagement at the highest possible level. Our aim should be to bolster the government's confidence to continue Bulgaria's strong engagement in Nabucco, make a decision on South Stream participation that is in Bulgaria's long-term interests, and rethink the Belene Nuclear Project. While we are moving forward with working-level engagement, including briefings by American companies and U.S. think tank experts, top Russian government officials are visiting Sofia to follow up on Putin's personal engagement with Borissov. With a November deadline for decision-making looming, we have a narrow window of opportunity to help the government make tough technical, economic and political decisions on issues critical for our own policies on European energy security. End comment. ORDWAY