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FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8141
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE
RUEHBM/AMEMBASSY BUCHAREST IMMEDIATE 7250
RUEHSK/AMEMBASSY MINSK IMMEDIATE 0199
RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0710
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UNCLAS SECTION 01 OF 02 PRAGUE 001334 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/NCE AND EB/ESC 
DOE FOR HARBERT 
COMMERCE FOR 4232/ITA/MAC/EUR MIKE ROGERS 
NSC FOR TRACY MCKIBBEN 
 
E.O. 12958: N/A 
TAGS: ENRG ECON ETRD PREL EZ
SUBJECT: RFE/RL ENERGY FORUM REFLECTS LACK OF EUROPEAN 
CONSENSUS ON ENERGY 
 
 
¶1. SUMMARY AND COMMENT: Radio Free Europe/Radio Liberty 
(RFE/RL) hosted a two-day Energy Forum in Prague October 
23-24.  The Forum addressed a wide range of tough issues 
related to European energy security, including Iran, how 
companies influence energy policy, the role of the European 
Commission and national governments versus investors, human 
rights and energy, as well as regional issues within Europe 
(Central Asia, Baltics, Central and Eastern Europe).  The 
Energy Forum provided a good venue for a much-needed 
non-government dialogue on EU energy security.  While the 
event drew serious and diverse participants from across 
sectors (parliamentarians, private sector, think tanks, 
journalists) and countries (U.S., Russia, Central and Eastern 
Europe), there was a glaring and unfortunate absence of 
representatives from Western Europe (e.g., French and German) 
and from southeast Europe.  This was most glaring on the 
"Energy Security in Europe" panel, which consisted entirely 
of representatives from the U.K., a Russian, and a Romanian. 
Perhaps as a result of this gap in participation, as well as 
the ambitious agenda for the two-day event, the Forum was 
more talk than conclusion.  Nonetheless, the debates and 
exchange of opinions provided valuable insight into just how 
unalarmed Europe seems about energy security the further west 
you go, and just how difficult, or even insurmountable, it 
would be to forge a common EU policy on energy.  END SUMMARY 
AND COMMENT. 
 
¶2. This report is based on econoff's participation in three 
segments: Gas and Oil -- Alternative Supply Routes to Europe; 
Energy Security in Europe; Central and Eastern European 
Energy Security. For details on program content, 
participants, and selected texts, please visit www.rferl.org. 
 
¶3. Czech Prime Minister Mirek Topolanek gave the opening 
remarks, in which he called on the EU to reduce its energy 
dependence on Russia through diversification, bluntly stating 
that Russia was using energy as a tool for geopolitical 
gains.  He pointed to nuclear energy as the future of Europe 
(NOTE: Nuclear energy is a lot less controversial in the 
Czech Republic than in other parts of Europe, but with the 
Greens entering Parliament for the first time this year, 
government backing for nuclear energy is no longer a foregone 
conclusion for even the Czechs. END NOTE.) 
 
¶4. The session entitled "Gas and Oil -- Alternative Supply 
Routes to Europe:  Business or Politics, a Chance or a 
Threat?" (moderated by CSIS Senior Fellow Ed Chow with 
panelists from Russia, Belarus, and Slovakia) focused on the 
proper role of governments versus investors.  The moderator 
asked whether the January 1, 2006 gas shut off from Russia to 
Ukraine was a wake-up call for Europe, or has Europe simply 
hit the "snooze button?"  The most outspoken were the two 
Russian panelists.  Former Russian Deputy Foreign Minister 
Sergei Krylov asked whether Europe should be more afraid of 
Russia or of Germany, given the latter's growing distribution 
power.  Artem Malgin from the Moscow State University for 
International Relations (MGiMO) described the attitudes in 
Europe as "inevitable," due to the strengthening of Russian 
companies, and cautioned against those central and eastern 
European elements who are being unhelpful in politicizing the 
energy situation in Europe. Dmitry Mironchik from the 
Government of Belarus said the EU did not seem ready for a 
partnership with Russia, and based on results of President 
Putin's visit to Lehti, Finland, the EU did not even seem 
ready for a dialogue. 
 
¶5. The "Energy Security in Europe" session, moderated by 
Edward Lucas of The Economist with three panelists from the 
U.K. and one each from Romania and Russia, was a rather 
academic survey of panelist opinions without much by way of 
conclusion or consensus.  Chris Cragg from UK's Energy 
Economist focused on the infrastructure needs for Europe, 
given that 85% of oil rigs in the world were over 25 years 
old.  Julian Lee from the U.K. Center for Global Energy 
Studies quibbed that such ideas as "pipelines for peace" were 
not realistic, saying that pipelines do not lead to 
understanding.  John Roberts from UK's Platts Energy 
attributed European energy security (or lack thereof) to the 
uncertainly of European demand, Russians who consume as much 
as the EU but with just one third of the population, and lack 
 
PRAGUE 00001334  002 OF 002 
 
 
of coordination in European energy policy which lacks a 
single voice. 
 
¶6. The session on "Central and Eastern European Energy 
Security" was moderated by Reka Szemerkenyi of Hungary and 
featured panelists from the U.S., Poland, Latvia, and Russia. 
 Latvian Parliamentarian Vaira Peagle delivered an eloquent 
speech about a dangerous kind of nationalism in the European 
energy sector, remarked that pipelines are more important 
than missiles in European foreign policy, and lamented that 
European energy policy seemed to be based more on national 
energy interests rather than on energy values.  Russian 
journalist Andrei Meshcherin questioned the benefits of the 
Energy Charter and said European cooperation with Russia on 
energy should be part of a larger economic cooperation. 
Polish Parliamentarian Pawel Zalewski said that in Poland, 
energy security was treated as a core security policy issues 
and called for solidarity and a common energy policy in 
Europe.  Former U.S. Ambassador to Lithuanian Keith Smith 
attributed the growing tension between the East and the West 
to the growing state control and decreasing transparency in 
the Russian energy sector.  Turning to the EU, Smith asked, 
if Article 82 of the Rome Treaty can be applied against 
Microsoft for bundling its music software with its Windows 
program, why are Gazprom and Transneft allowed to continue 
their anti-competitive behavior which hurts European 
consumers? 
GRABER