AUSTRIAN FORMIN RULES OUT IRAN ENERGY CONTRACTS

UNCLAS SECTION 01 OF 02 VIENNA 000044 SIPDIS EUR/FO FOR DAS BRYZA USDOC FOR TDA E.O. 12958: N/A TAGS: ENRG PREL AU IR SUBJECT: AUSTRIAN FORMIN RULES OUT IRAN ENERGY CONTRACTS FOR THE MOMENT, REASSERTS SUPPORT FOR NABUCCO REF: 08 VIENNA 1844 AND PREVIOUS ¶1. SUMMARY: Austria's new foreign minister has made the clearest public statement yet of GOA opposition to energy contracts with Iran under the present diplomatic situation. He also reaffirmed GOA support for the Nabucco pipeline and expressed confidence the consortium will secure gas from the Caspian area. END SUMMARY. ¶2. On January 11, new Austrian Minister of European and International Relations Michael Spindelegger (OVP- conservative) appeared on Austrian television's "Pressestunde" (equivalent to "Meet the Press") with ORF foreign affairs anchorman Andreas Pfeifer and Chief Editor Alexandra Foederl-Schmid from left-liberal daily Der Standard. ¶3. Discussing the current gas crisis and the need to diversify Europe's energy supply, Spindelegger promised full support for the Nabucco pipeline and expressed confidence that the consortium would sign supply contracts with Azerbaijan or other producing countries ("We should make efforts to sign these contracts as quickly as possible ... I am confident that this is possible.") ¶4. The show's anchors pressed FM Spindelegger at length on Iranian gas and its diplomatic implications. Spindelegger ruled out any "political support" for concluding energy contracts with Iran on this issue, at least until "relations between the international community and Iran have normalized." Spindelegger also indicated that the GOA has instructed OMV (which is 31.5 percent state-owned) not/not to proceed at the moment on pending energy deals with Iran. COMMENT: Spindelegger is the first GoA official to speak out clearly against energy deals with Iran in the 18 months since OMV and the Iranian petroleum company NIOC signed a "letter of intent" on gas production. He did not, however, rule out further talks between OMV and the Iranian energy sector. END COMMENT. ¶5. Below is a transcript of Spindelegger's remarks on Iran (translation by FBIS/OpenSource): Q: ... But the Nabucco project is somewhat risky politically: OMV points out that Iran has the second largest gas reserves of the world. Iran could also be a potential gas supplier. Of course, this meets with great skepticism in Israel, I assume, as well as in the United States. Is that not a political barrier that is still too high to overcome? SPINDELEGGER: I think that it is only possible to overcome this political barrier once relations between the international community and Iran have normalized. But I do not expect that to happen within the next few days or weeks. Therefore, we should make efforts to explore other possible sources and to sign contracts, in particular, in Central Asia. This will be the main issue that we have to consider now in Europe, but also in Austria. Q: Let me specifically ask you once again: do you support the OMV project in Iran? SPINDELEGGER: There have been very clear talks with OMV as far as the gas issue is concerned. I do not think that it is the right situation at present to sign contracts there. After all, there is an international sanctions regime against Iran, which we as Austrians have fully observed so far. There have not been any violations, nor has there been a contract. OMV has so far only signed a Letter of Intent, and I think it would be better to wait and see how things develop before we take further steps. Q: But let me repeat: is there political support for it on your part, yes or no? SPINDELEGGER: There is no political support for the conclusion of a contract because we made it clear to OMV that the foreign policy situation... Q: We know that they have not yet progressed that far, but there are talks! Do you support that? SPINDELEGGER: To be sure, there can be talks. During my visit to Israel, I made that clear also to the foreign minister [Tzipi Livni]. The important thing is whether contracts are signed. And that has not been done, nor will VIENNA 00000044 002 OF 002 that be done in the next few days. END TRANSCRIPT. GIRARD-DICARLO