US embassy cable - 03ANKARA7271

C O N F I D E N T I A L ANKARA 007271 
 
SIPDIS 
 
 
E FOR S. CLARKE 
EUR/SE FOR D. HENGEL 
 
 
E.O. 12958: DECL: 11/18/2013 
TAGS: ENRG, PREL, ECON, TU 
SUBJECT: ENERGY DISCUSSION AT TURKEY-U.S. EPC 
 
Classified by Charge, Robert Deutsch for reasons 1.5 (b) and 
(d). 
 
 
1.  (C) Action Request:  Post urges Washington to reconsider 
the decision to drop energy as a separate topic on the EPC 
agenda.  This is not just to mollify the Turks; we have real, 
substantive energy issues to discuss.  We consider energy to 
be a critical building block of our economic and political 
relationship with Turkey.  Turkey considers U.S. support for 
the East-West Energy Corridor a lynch pin in its energy and 
economic policy and its relations with nearby countries, and 
we have encouraged Turkey to promote this view in the region. 
 However, the U.S.-Turkey dialogue on energy issues has 
fallen off in recent months, and Turkish officials are 
concerned that the U.S. has lost interest, or more troubling, 
is considering a change of energy policy in the region. 
 
 
2.  (C) Ambassador and embassy officers continue to encourage 
Turkey's critical role in the East-West Energy Corridor.  The 
recent vote of the IFC and EBRD to contribute to the 
financing of BTC is an important step, but we should not 
think that BTC is out of the woods, much less that the other 
aspects of the East-West Energy Corridor are safe. 
Furthermore, we need to discuss next steps in our 
collaborative efforts to find European markets for surplus 
natural gas. 
 
 
3.  In sum, there are a number of important issues that need 
to be addressed between senior U.S. and Turkish officials: 
 
 
-- BTC construction is underway, but construction 
difficulties, political instability in Georgia and security 
concerns merit continued close attention. 
 
 
-- Iran continues to promote itself as a cheap alternative 
(to Turkey and beyond to Europe) as a cheap source of natural 
gas. 
 
 
-- Iraq's potential to supply oil and natural gas to Turkey 
and beyond introduce a new variable. 
 
 
-- Turkey today announced a deal with Gazprom on its natural 
gas import agreements. 
 
 
-- Turkey is concerned about U.S./Iraqi intentions regarding 
the Kirkuk-Ceyhan pipeline. 
 
 
-- Odesa-Brody heightens concerns about Bosphorus tanker 
traffic and the need for another bypass. 
 
 
On some of these issues, Turkish officials need reassurance 
of our long-term commitment to the East-West Energy Corridor. 
 On other issues, they do not know where the U.S. stands. 
 
 
4.  (SBU) Turkey is the essential partner in the East-West 
Energy Corridor.  We think the EPC presents an important 
opportunity to affirm U.S. foreign policy interest in 
Turkey's energy policy and support for the East-West Energy 
Corridor. 
EDELMAN