Identifier
Created
Classification
Origin
09ZAGREB20
2009-01-13 12:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Zagreb
Cable title:
GAS SUPPLIES FROM ITALY AND GERMANY TO HELP
how-toVZCZCXRO5561 OO RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHVB #0020 0131218 ZNR UUUUU ZZH O 131218Z JAN 09 FM AMEMBASSY ZAGREB TO RUEHC/SECSTATE WASHDC IMMEDIATE 8913 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS ZAGREB 000020
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/ERA, EEB/ESC AND TREASURY FOR OASIA
LARRY NORTON
E.O. 12958: N/A
TAGS: ECON ENRG HR
SUBJECT: GAS SUPPLIES FROM ITALY AND GERMANY TO HELP
CROATIA WARD OFF CRISIS
REF: A. A) ZAGREB 006
B. B) ZAGREB 009
UNCLAS ZAGREB 000020
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/ERA, EEB/ESC AND TREASURY FOR OASIA
LARRY NORTON
E.O. 12958: N/A
TAGS: ECON ENRG HR
SUBJECT: GAS SUPPLIES FROM ITALY AND GERMANY TO HELP
CROATIA WARD OFF CRISIS
REF: A. A) ZAGREB 006
B. B) ZAGREB 009
1. Two agreements over the weekend may ease pressure on
Croatia's gas situation (reftels). First, Italian ENI agreed
to split gas production from its northern Adriatic fields
with Croatia, beginning delivery over the weekend of 30,000
cubic meters per hour. Croatia also began receiving gas
shipments over the weekend amounting to 40,000 cubic meters
per hour from E.ON Ruhrgas via Austria and Hungary.
Combined, these sources amount to roughly 15 percent of
Croatia's daily winter demand, and should be sufficient to
stabilize supply for the moment, according to an INA
executive. Gas use restrictions on industry remain in place
despite the new supplies and our contacts in industry
continue to express concern that a prolonged crisis will lead
to shutdowns and layoffs. Croatia's 600,000 households that
rely on gas still appear to be largely unaffected, and
criticism of the government's handling of the shortages has
been muted.
2. COMMENT: If the reported deal between Ukraine and Russia
on Jan. 12 results in an immediate resumption of gas exports,
Croatia can expect to have the gas turned on again in as
little as 66 hours, resulting in only a modest economic
impact from the crisis. However, with GDP growth forecasts
continuing to decline for 2009 (now at 1 percent or below),
and foreign investment continuing to ebb, the economy has
little room to absorb such negative economic shocks. END
COMMENT.
BRADTKE
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/ERA, EEB/ESC AND TREASURY FOR OASIA
LARRY NORTON
E.O. 12958: N/A
TAGS: ECON ENRG HR
SUBJECT: GAS SUPPLIES FROM ITALY AND GERMANY TO HELP
CROATIA WARD OFF CRISIS
REF: A. A) ZAGREB 006
B. B) ZAGREB 009
1. Two agreements over the weekend may ease pressure on
Croatia's gas situation (reftels). First, Italian ENI agreed
to split gas production from its northern Adriatic fields
with Croatia, beginning delivery over the weekend of 30,000
cubic meters per hour. Croatia also began receiving gas
shipments over the weekend amounting to 40,000 cubic meters
per hour from E.ON Ruhrgas via Austria and Hungary.
Combined, these sources amount to roughly 15 percent of
Croatia's daily winter demand, and should be sufficient to
stabilize supply for the moment, according to an INA
executive. Gas use restrictions on industry remain in place
despite the new supplies and our contacts in industry
continue to express concern that a prolonged crisis will lead
to shutdowns and layoffs. Croatia's 600,000 households that
rely on gas still appear to be largely unaffected, and
criticism of the government's handling of the shortages has
been muted.
2. COMMENT: If the reported deal between Ukraine and Russia
on Jan. 12 results in an immediate resumption of gas exports,
Croatia can expect to have the gas turned on again in as
little as 66 hours, resulting in only a modest economic
impact from the crisis. However, with GDP growth forecasts
continuing to decline for 2009 (now at 1 percent or below),
and foreign investment continuing to ebb, the economy has
little room to absorb such negative economic shocks. END
COMMENT.
BRADTKE