US embassy cable - 05ANKARA6095

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SOMO ARREARS TO TURKEY REACH $668 MILLION

Identifier: 05ANKARA6095
Wikileaks: View 05ANKARA6095 at Wikileaks.org
Origin: Embassy Ankara
Created: 2005-10-07 13:11:00
Classification: CONFIDENTIAL
Tags: ETRD PREL TU IZ
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

071311Z Oct 05
C O N F I D E N T I A L ANKARA 006095 
 
SIPDIS 
 
E.O. 12958: DECL: 10/06/2015 
TAGS: ETRD, PREL, TU, IZ 
SUBJECT: SOMO ARREARS TO TURKEY REACH $668 MILLION 
 
REF: A. ANKARA 3842 
 
     B. BAGHDAD 2845 
     C. KIMMEL-BURGER EMAIL 10/6/05 
 
Classified By: Acting DCM Thomas H. Goldberger for reasons 1.4 (b) and 
(d). 
 
1. (C) MFA Coordinator for Iraq and Afghanistan 
Reconstruction Amb. Koray Targay called in A/DCM Oct. 6 to 
report that arrears owed to Turkish companies by the Iraqi 
State Oil Marketing Organization (SOMO) for humanitarian fuel 
for the Iraqi people had reached U.S.$ 688 million.  In 
total, SOMO owes Turkish companies $820 million, but only 
$688 million are in arrears (45 days past product delivery). 
Targay requested that we bring this issue to the ITG's 
attention, as we have done in the past (refs a and b).  He 
noted that while the GOT will continue to urge the Turkish 
petroleum companies to continue to ship product, some of 
these companies are medium-sized and will experience 
cash-flow and product quality problems soon.  "We would 
appreciate it if Iraq could reduce the amount" of the 
arrears, Koray said. 
 
2. (C) We understand (per ref c) that the ITG is aware of the 
situation.  While Koray did not take a "hair on fire" 
approach to this issue, we are not sanguine that Turkish 
firms can keep the oil flowing indefinitely unless these 
arrears are addressed, at least in part. 
MCELDOWNEY 

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