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Viewing cable 08DUSSELDORF38, RWE SEEKING POLITICAL SUPPORT FOR NABUCCO PROJECT

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Reference ID Created Released Classification Origin
08DUSSELDORF38 2008-09-30 08:08 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Dusseldorf
VZCZCXRO4673
RR RUEHAG RUEHAST RUEHHM RUEHIK RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD
RUEHROV RUEHTM
DE RUEHDF #0038 2740808
ZNR UUUUU ZZH
R 300808Z SEP 08
FM AMCONSUL DUSSELDORF
TO RUEHC/SECSTATE WASHDC 0167
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 0004
RUEHKB/AMEMBASSY BAKU 0001
RUEHAH/AMEMBASSY ASHGABAT 0001
RUCNFRG/FRG COLLECTIVE
RUCNMEM/EU MEMBER STATES
RUEHDF/AMCONSUL DUSSELDORF 0183
UNCLAS DUSSELDORF 000038 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EPET EU TU TX AJ GM
SUBJECT: RWE SEEKING POLITICAL SUPPORT FOR NABUCCO PROJECT 
 
REF: USEU 1238 
 
1.  (SBU) In a September 26 meeting with CG, RWE Chief 
Commercial Officer Stefan Judisch and Nabucco expert Jeremy 
Ellis made a strong plea for USG support in encouraging the 
German government to give up its "fence-sitting attitude" and to 
take over the role of "moderator" in lining up political support 
for the Nabucco pipeline project.  Due to its heavy involvement 
in the North Stream project, they asserted, Berlin would be a 
"credible arbitrator" in helping overcome Russian opposition to 
Nabucco.  Thus far, however, Berlin had shown "no leadership" in 
this respect, although Economics Minister Glos said he fully 
supports it.  Foreign Minister Steinmeier, as former Chancellor 
Schroeder's closest aide, was clearly on the Russian side, they 
said, while Chancellor Merkel has been "too diplomatic" to take 
a stance, at least at the present time. The upcoming 2009 
Bundestag election campaign, in which the energy supply issue 
would play a role, would complicate things further, they stated. 
 
 
2.  (SBU) Judisch spoke of a "compelling commercial rationale" 
for the project, but stressed that it needs a "political 
framework."  If RWE and its partners were unable to mobilize the 
necessary political support within the next 6 months, "the 
project would be dead."  The Russia-Georgia conflict had "forced 
the issue" and made clear that "political leadership" was 
absolutely necessary to get the project off the ground.  Before 
Georgia, RWE and its partners could have "muddled through," but 
this was no longer possible, our interlocutors stated.  The 
conflict in Georgia had "increased the probability for the 
project's failure," but it had at least "awakened the 
politicians" and driven home the message. 
 
3.  (SBU) Negotiations with Turkey concerning its supply 
concerns were going well; the next few weeks could bring 
considerable movement, and an intergovernmental agreement 
between the Nabucco countries, the EU and Turkey could be 
achieved by the end of the year, they maintained.  The region 
easily has enough natural gas reserves to make Nabucco 
profitable, but the pipeline faces supply challenges as there 
must be a second supplier in addition to Azerbaijan to make the 
project feasible.  If there were no problem with Iran, the 
project would go forward immediately.  Supply from Iraq was a 
matter of timing and risk, he stated. 
 
4.  (SBU) Referring to USEU Special Envoy for EU Affairs and 
Eurasian Energy Gray as an "important ally," Judisch and Ellis 
(who had just returned from a meeting with him the previous 
day), expressed strong appreciation for USG interest and support 
in this matter.  In ongoing negotiations with Turkey, Special 
Envoy Gray's influence had been very helpful.  In particular, 
any U.S. support in getting the German government to take over a 
leadership role for the Nabucco project would be highly 
appreciated, Judisch said, adding that he is often in Berlin and 
would welcome the opportunity to meet with Ambassador Timken or 
other Embassy representatives on this matter. 
 
BOYSE