VZCZCXRO3917
RR RUEHAG RUEHAST RUEHDF RUEHDH RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA
RUEHPB RUEHPOD RUEHROV RUEHSR RUEHTM RUEHTRO
DE RUEHBS #0732 1471422
ZNR UUUUU ZZH
R 271422Z MAY 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEU/EU INTEREST COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA
RUEHAH/AMEMBASSY ASHGABAT
RUEHTA/AMEMBASSY ASTANA
RUEHGB/AMEMBASSY BAGHDAD
RUEHKB/AMEMBASSY BAKU
RUEHSI/AMEMBASSY TBILISI

UNCLAS BRUSSELS 000732 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EPET EUN IZ TU
SUBJECT: TURKEY SEEKS TO EXCLUDE IRAQI GAS FROM THE NABUCCO 
IGA 
 
Sensitive but Unclassified - not for Internet distribution. 
 
¶1. (SBU)  On May 27 Econ Officer spoke with a European 
Commission official involved with the Nabucco 
Intergovernmental Agreement (IGA) negotiations, about the 
status of the IGA.  The official was quite concerned over the 
state of negotiations.  He said that negotiations had taken a 
turn for the worst with most recently Turkey requesting that 
the Iraq entry point be taken out of the agreement.  The EU 
views a prospective Iraq entry point as essential for Nabucco 
(because of the potential gas supplies from Kurdistan) and as 
adding to Iraq's stability by providing an outlet for their 
gas.  According to the official, the Turks now prefer to work 
any gas export agreement with Iraq on a bilateral basis only 
and don't want an entry point from Iraq included in the 
Nabucco IGA.  The official considers this to be a huge 
setback to the negotiations. 
 
¶2. (SBU) The official also confirmed that Turkey has 
reasserted its 15 percent off-take demand as part of the IGA 
negotiations -- a subject which has long been a red line for 
the EU.  He also said the Turks are now talking about needing 
more time to consider the IGA, despite their recent agreement 
at the Prague Summit to sign the agreement this June. 
According to the official, the 15 percent demand is coming 
from the new Turkish Energy Minister Yildiz, but both the 
Energy Minister and the MFA are talking about needing more 
time.  Turkey is currently talking about putting a decision 
on the IGA off until September (not publicly announced yet). 
The official said the EU doesn't understand the reason for 
the delay and that they don't buy Turkey's proffered excuse 
that Turkey needs more time because of the new Energy 
Minister just being put in place. 
 
¶3.  (SBU) From the EU side, the official said all of the 
European partners would be ready to initial the IGA this 
Friday, May 28, if the Turks would agree.  He said that the 
Commission would appreciate any assistance the USG could 
render in persuading Turkey on the issues of the entry point 
from Iraq, the 15 percent off take, and keeping to the June 
schedule for the IGA.  The Commission would also appreciate 
any guidance or suggestions from Washington on how to proceed. 
 
Murray 
.