US embassy cable - 03ANKARA6345

C O N F I D E N T I A L ANKARA 006345 
 
SIPDIS 
 
 
STATE FOR E, E/CBED, EUR/SE 
 
 
E.O. 12958: DECL: 10/07/2013 
TAGS: EPET, PREL, RS, TU, UK 
SUBJECT: TURKEY UNHAPPY WITH DECISION TO REVERSE 
ODESSA-BRODY PIPELINE 
 
REF: DONNELLY-DASTIN E-MAILS 
 
 
Classified by ECON Counselor Scot Marciel for reasons 1.5 (b) 
and (d). 
 
 
1.  (C) SUMMARY:  MFA Deputy DG for Energy and Water Haki 
Akil told EconCouns that Turkey was opposed to the recently 
announced agreement to reverse the Odessa-Brody pipeline. 
Akil said the agreement would mean more oil through the 
Turkish Straits and undermine U.S.-Turkish goals for the 
East-West Energy Corridor.  He asked the U.S. to intervene 
with the Ukrainian Government and BP to stop the deal. 
Embassy requests Department guidance.  End Summary. 
 
 
2.  (C) Akil told EconCouns October 7 that Turkey strongly 
opposes the reported agreement to reverse the Odessa-Brody 
oil pipeline flow.  The principle concern is that the 
decision will increase the amount of oil transported via the 
Turkish Straits, exacerbating the safety and environmental 
situation.  Akil pointed out that the reversal has a double 
impact -- Russian-produced oil that would have been 
transported via pipeline to Europe will instead be 
transported via tanker through the straits, and Caspian 
produced oil that would have been transported via the Black 
Sea to Odessa and on to Europe now also will have to be 
transported via the Turkish Straits.  He emphasized that 
increasing oil transport through the Turkish Straits "is not 
an acceptable option for Turkey." 
 
 
3.  (C) A secondary issue for Turkey is the possible impact 
of the Odessa-Brody reversal on the decisions of Caspian 
producers to support the East-West Energy Corridor.  Akil 
feared that Caspian producers would be compelled to use the 
Russian pipeline system to get their crude to market, a move 
which would undermine the shared goal of the U.S. and Turkey 
to promote Caspian oil and gas transport via Turkey.  Akil 
was surprised that BP-TNK, a Russian-BP joint venture would 
be a party to this agreement when BP had been the main 
supporter of the East-West Energy Corridor. 
 
 
4.  (C) Akil noted that the Ukrainian Government has not yet 
approved the reversal and asked that the U.S. seek to 
persuade the Ukrainian Government to block the decision.  He 
also requested that we raise this issue with senior BP 
officials. 
 
 
5.  (C) ACTION REQUEST:  We understand that this issue has 
been discussed frequently with GOU officials and most 
recently with Ukrainian Prime Minister Yanukovych in 
Washington.  Embassy would appreciate a readout from 
Washington and requests guidance to respond to the GOT 
concerns. 
EDELMAN