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OO RUEHWEB

DE RUEHTH #2375/01 3531401
ZNY CCCCC ZZH
O 191401Z DEC 07
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0926
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEHZG/NATO EU COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

C O N F I D E N T I A L ATHENS 002375 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/19/2017 
TAGS: EFIN EINV ENRG EPET GR KPRV PGOV PREL RS
SUBJECT: GREEK PM IN MOSCOW: RHETORIC (APPARENTLY) 
UNMATCHED BY DEEDS 
 
Classified By: DCM THOMAS COUNTRYMAN.  REASONS 1.4 (B) AND (D). 
 
¶1. (C) SUMMARY: During a December 17-18 visit to Moscow, 
Greek PM Karamanlis signed with Russian President Putin and 
Bulgarian President Parvanov an agreement establishing a 
company to construct the Burgas-Alexandroupolis oil pipeline 
through Bulgaria and Greece.  Press reports also indicate 
Putin and Karamanlis discussed the South Stream gas pipeline, 
though little headway was made toward agreement.  Beyond the 
energy talks, Karamanlis and Putin reportedly engaged on a 
broad range of topics, including EU-Russia relations, the 
Balkans, Cyprus, and defense cooperation.  Embassy hopes to 
get a readout from Karamanlis's office upon the delegation's 
return from Moscow.  END SUMMARY. 
 
BURGAS-ALEXANDROUPOLIS 
---------------------- 
 
¶2. (SBU) According to press reports, expanding energy 
cooperation between Russia and Greece dominated talks during 
the Greek Prime Minister's visit to Moscow December 17-18. 
The visit gave a push to the Burgas-Alexandroupolis oil 
pipeline project as the three interested parties -- Greece, 
Russia and Bulgaria -- signed a protocol for the 
establishment of an international development company to 
oversee construction in the first months of 2008.  The Greek 
press reported that Karamanlis said there were still steps to 
be taken, but that this was a landmark indicating actual 
implementation of the project was close.  The Russian 
President also characterized the signing of the protocol as 
the penultimate step for constructing the pipeline. 
Addressing an official dinner at the Kremlin before 
concluding his visit, Karamanlis underscored the significance 
of the protocol, which, beyond its economic significance, 
"will constitute a very important step for achieving 
international energy security."  He furthermore noted that 
Greece looked "forward to the mutually beneficial cooperation 
of our two countries in other sectors as well, such as 
natural gas." 
 
SOUTH STREAM 
------------ 
 
¶3. (SBU) Press reports indicated plans for the new South 
Stream natural gas pipeline were also discussed, though it is 
unclear whether headway was made toward a deal.  In June, 
Karamanlis announced Greece's involvement in South Stream, 
which would bring Russian gas across the Black Sea to 
Bulgaria and on to other European countries.  The Greek Prime 
Minister said in Moscow that discussions were still in 
preliminary stages, admitting that more detailed plans needed 
to be worked out.  He announced that experts from both 
countries would examine technical and economic details of the 
project, aiming for another bilateral agreement.  Putin, on 
the other hand, linked the South Stream project with the 
expansion of the Greek/Russian agreement on Russian natural 
gas supply by saying that Athens was interested in doubling 
its natural gas imports from Russia through the proposed 
South Stream pipeline between 2016 and 2040.  (NOTE: This 
would mean that Greek consumption of Russian natural gas 
would go from 2.8 bcm currently to up to 5.6 bcm in 2040. 
Currently, Greece consumes 3.7 bcm of natural gas.  END 
NOTE.) 
 
OTHER ISSUES 
------------ 
 
¶4. (SBU) Beyond the energy talks, Karamanlis and Putin 
reportedly engaged on a broad range of topics, including 
EU-Russia relations, the Balkans, Cyprus, and defense 
cooperation.  During a joint press conference with 
Karamanlis, Putin said they had discussed the situation in 
the Balkans, particularly the "Kosovo problem," and the 
Cyprus issue.  Putin put particular stress on how Russia and 
Greece might contribute to the promotion of international 
stability.  "In effect, what is on the agenda is the 
important issue of what world order will be established for 
many decades to come.  Alongside other states, our countries 
should make their weighty contribution to the development of 
dialogue between civilizations, making the modern world more 
just and democratic, and free from reliance on brute force 
and blackmail," Putin said. 
 
¶5. (SBU) In the defense field, Putin and Karamanlis agreed 
that bilateral cooperation was rapidly developing in many 
different directions, though they did not specify what such 
cooperation might entail.  (NOTE: Just before Karamanlis's 
visit, the Greek supreme defense and foreign policy council 
(KYSEA) announced Greece's intention to purchase several 
 
hundred Russia BMP armored personnel carriers, which is the 
first such major arms deal in many years.  END NOTE)  During 
the press conference, Putin said Russia was willing to sell 
Greece any system short of nuclear weapons. 
 
¶6. (SBU) Karamanlis also spoke warmly of Greek-Russian 
cooperation.  He reportedly congratulated Putin on the recent 
Duma election three times, a gesture the Greek press 
highlighted as in direct contrast to most European leaders' 
skepticism concerning the elections.  When asked by a Russian 
correspondent to comment on the reaction of "Brussels 
bureaucrats" to the Greek PM's visit to Moscow, Karamanlis 
said: "Greece is a European country and moves along within 
European policies ... however, on the bilateral level 
(policies) develop according to national interest.  Our good 
relations with Russia are to the benefit of my country and, 
in the end, (to the benefit) of Europe." 
 
VISIT TO THE RUSSIAN PATRIARCH 
------------------------------ 
 
¶7. (SBU) Karamanlis also met with Patriarch Alexei II in a 
highly symbolic protocol visit at the Danilovskii Monastery. 
The Patriach welcomed the Greek PM with a warm address that 
emphasized the excellent relations between the Churches of 
Greece and Russia and expressed concern about the health of 
Greek Archbishop Christodoulos, who is suffering from cancer. 
 Karamanlis thanked the Patriarch for his concern about 
Archbishop Christodoulos and in turn emphasized that 
"Orthodoxy is the most tested bridge of communication not 
only between our two Churches but also between our two 
peoples in our march to the future." 
 
COMMENT 
------- 
 
¶8. (C) Karamanlis's moves toward Russia are viewed positively 
by much of the Greek press and public, which attach 
considerable value to the common Orthodox heritage and 
leftist nostalgia.  In signing the Burgas-Alexandroupolis 
deal with the Russians and Bulgarians, Karamanlis is able to 
make good on a legacy issue of strengthening Greece's 
position as an energy-transit hub.  He is also trying to 
position himself as taking a "balanced" position between the 
U.S. and Russia -- in contrast to what some Greeks believe is 
the overly pro-American line of his Foreign Minister and 
political competitor Dora Bakoyannis.  Many Greek 
foreign-policy and military officials and specialists, 
however, are more skeptical and tell us they are wary Greece 
is going down a risky path. 
 
¶9. (C) We do not believe that Karamanlis's drawing closer to 
Moscow represents a fundamental re-alignment in overall Greek 
policy.  But on certain specific issues, such as moving 
toward signing a deal on the South Stream gas pipeline and 
the obsequious congratulations to Putin on the recent Duma 
elections, Karamanlis has taken positions that are not 
helpful.  Karamanlis evidently believes he can maintain a 
balance in relations with Russia and the West.  The danger, 
however, is that, having drawn closer to Moscow on energy, 
Athens may find itself under pressure to side with the 
Russians on other issues, such as relations with Iran.  We 
have told the Greeks the U.S. has no problem with better 
Greek-Russian ties.  At the same time, we continue to ask how 
Greece can reconcile its support for the Turkey-Greece-Italy 
gas inter-connector with the competing South Stream project 
-- a question to which we have yet to receive an adequate 
reply. 
SPECKHARD