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DE RUEHAH #1252/01 3241216
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P 201216Z NOV 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9720
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
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UNCLAS SECTION 01 OF 03 ASHGABAT 001252 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
DOE FOR EKIMOFF/THOMPSON 
PLEASE PASS TO USTDA DAN STEIN 
 
E.O. 12958: N/A 
TAGS: PREL ECON ENRG EPET TX
SUBJECT: DRAFT TURKMENISTAN-EU MEMORANDUM OF UNDERSTANDING 
ON CO-OPERATION IN THE FIELD OF ENERGY 
 
 
¶1. (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) On November 19, the EU-TACIS office in Ashgabat 
informally passed to the Embassy a copy of the draft MOU, 
dated November 9, 2007, for further cooperation between the 
EU/EC and the Government of Turkmenistan.  According to 
EU/TACIS the Turkmenistan government has until November 30 to 
provide any additions or amendments.  A Turkmenistan official 
is expected attend the technical meeting in Brussels on 
November 30 to discuss the findings of the "EU Feasibility 
study of a TransCaspian - Black Sea Corridor." 
 
¶3.  (SBU)  The text of the MOU follows: 
 
BEGIN TEXT: 
 
MEMORANDUM OF UNDERSTANDING ON CO-OPERATION IN THE FIELD OF 
ENERGY BETWEEN THE EUROPEAN UNION AND TURKMENISTAN 
 
Recognising the strategic importance of the energy sector for 
the economic and social development of Turkmenistan, 
 
recognising the key role of Turkmenistan as a major 
hydrocarbon producer in the Caspian Sea region, and the 
mutual interest of both the European Union and Turkmenistan 
for enhancing cooperation in the energy sector to increase 
the security of energy supplies and the predictability of 
energy demands, 
 
having regard to the Communication to the Council and the 
European Parliament on an Energy Policy for Europe of 10 
January 2007, which sets-out the priorities to be pursued by 
an effective external EU Energy Policy, 
 
having regard to the conclusions of the Brussels European 
Council meeting of 8-9 March 2007, which underlined, inter 
alia, the importance of intensifying the EU relationship in 
the field of energy with Central Asian and the Caspian region, 
 
having regard to the EU Strategy for a new partnership with 
Central Asia adopted during the European Council of 21-22 
June 2007, which notes the common interest in diversifying 
export routes, demand and supply structures and energy 
sources, as well as the intent of the EU to lend political 
support and assistance to Central Asian countries in 
developing a new Caspian Sea-Black Sea ) EU energy transport 
corridor. 
 
recalling the conclusions of the 2nd Energy Ministerial 
Conference in Astana on 30 November 2006 on Enhancing Energy 
Co-operation between the EU, the Littoral States of the Black 
and Caspian Seas and their neighbouring countries in which 
participants agreed to focus their co-operation on the 
following objectives: 
 
-- converging of energy markets on the basis of the EU 
internal energy market principles taking into account the 
particularities of the Partner Countries; 
-- enhancing energy security by addressing the issues of 
energy exports/imports, supply diversification, energy 
transit and energy demand; 
-- supporting sustainable energy development, including the 
development of energy efficiency, renewable energy sources 
and demand side management; 
-- attracting investment towards energy projects of common 
and regional interest, 
 
recalling that both sides have benefited from co-operation in 
the framework of Community assistance under the INOGATE 
 
ASHGABAT 00001252  002 OF 003 
 
 
Programme, 
 
recognising that enhanced energy co-operation with the 
European Union coul address more specifically those areas 
not already covered by regional co-operation as well as focus 
more clearly on those issues of particular mutual interest. 
 
recognising the importance of their bilateral energy 
relations and the necessity to adopt a comprehensive approach 
Turkmenistan and the European Union express their readiness 
to cooperate on the elaboration of two roadmaps concerning 
enhancement of energy security and industrial cooperation 
respectively. 
 
¶1.    Road map for enhancing energy security 
 
1.1  The European Union and Turkmenistan will regularly 
exchange information on the development of policies that may 
have an impact on the production, processing, transportation 
and use of all energy resources, with a focus on energy 
security. 
 
1.2  The European Union and Turkmenistan will regularly 
consult on energy scenarios in order to have a joint 
understanding of possible future developments including, in 
particular, hydrocarbon reserves assessment, plans to expand 
production capacity and the energy transportation system as 
well as possible future trends in energy demand within the 
European Union. 
 
1.3  In view of mutual interest to diversify energy markets 
and supply routes, the European Union and Turkmenistan will 
cooperate in implementing attractive, stable, equitable and 
transparent conditions, such as institutional, legal, fiscal 
and other conditions to facilitate and expand 
non-discriminatory investment in the energy sector.  The EU 
and Turkmenistan will co-operate to give political support 
and facilitate the development of energy transportation 
infrastructure of common interest in particular along the 
Southern Corridor route.  As appropriate, this could include 
input from International Financing Institutions. 
 
¶2.  Road map for enhancing industrial cooperation 
 
Recognising the common interest in attracting further 
investment into the energy sector in Turkmenistan, 
Turkmenistan and the European Union intend to: 
 
-- promote cooperation between the European Union and 
Turkmenistan, and their respective energy companies through 
joint activities with a particular focus on investments in 
the upstream sector, energy technology, the acquisition of 
technological skills, appropriate training and exchange of 
expertise; 
-- support co-operation in hydrocarbon exploration for both 
on-shore and off-shore and transportation 
-- develop and introduce renewable energy sources, such as 
solar energy, as well as energy efficient and environmentally 
friendly technologies such as gas flaring reduction measures 
-- promote the formulation and implementation of energy 
efficiency policies as well as exchange of industry best 
practices (including possibly in the building sector and in 
the area of district heating), in order to reduce energy 
wastage and the environmental impact of high energy 
consumption. 
 
Final Considerations 
 
The present document is a document that records political 
 
ASHGABAT 00001252  003 OF 003 
 
 
intent alone and provides for no legal commitment. 
 
Done in XXX on the X day of XXX 200X, in the English and 
Turkmen(?) languages. 
 
 
          On behalf                                    On 
behalf 
of the European Union               of the Republic of 
Turkmenistan 
 
END TEXT. 
 
¶4.  (SBU) COMMENT:  While the development of a unified EU 
energy policy emphasizing alternative export pipelines for 
Turkmenistan and greater EU engagement on energy issues with 
Turkmenistan is consistent with U.S. policy, the discussion 
of a Southern Corridor route in section 1.3, which likely is 
a reference to a pipeline through Iran, is not.  Post has 
discussed this issue on occasion with EU-TACIS, whose 
director has previously defended such a pipeline as "a good 
idea" and who has made very clear that this is one area where 
there is a major parting of the minds between the EU and the 
United States.  END SUMMARY. 
HOAGLAND