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### Viewing cable 10ANKARA195, AMBASSADOR DISCUSSES IRAN, AZERI GAS, NUCLEAR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10ANKARA195 | 2010-02-05 13:22 | 2011-04-12 13:00 | CONFIDENTIAL | Embassy Ankara

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    VZCZCXRO7543
    PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
    DE RUEHAK #0195/01 0361322
    ZNY CCCCC ZZH
    P 051322Z FEB 10
    FM AMEMBASSY ANKARA
    TO RUEHC/SECSTATE WASHDC PRIORITY 2016
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
    RUEHAH/AMEMBASSY ASHGABAT PRIORITY 1987
    RUEHKB/AMEMBASSY BAKU PRIORITY 1666
    RUEHMO/AMEMBASSY MOSCOW PRIORITY 5688
    RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 000195

    SIPDIS

    STATE FOR EEB/S-EEE RICHARD MORNINGSTAR
    STATE PLEASE PASS TO USTDA: DAVID HESTER
    DOE FOR OFFICE OF RUSSIAN AND EURASIAN AFFAIRS: LANA EKIMOFF

    E.O. 12958: DECL: 02/04/2020
    TAGS: ENRG ECON PREL TU
    SUBJECT: AMBASSADOR DISCUSSES IRAN, AZERI GAS, NUCLEAR
    POWER AND DOE ENERGY CONFERENCE, WITH ENERGY MINISTER YILDIZ

    Classified By: AMB James Jeffrey for reasons 1.4 (b,d)

    ¶1. (U) Ambassador Jeffrey met with Energy Minister Yildiz on
    February 3 to discuss the DOE energy efficiency conference,
    expected nuclear power plant projects, Iran, and negotiations
    with the Azeris on Shah Deniz gas.  Yildiz, for reasons
    unknown but appreciated, hauled ambassador out before the
    media, which was awaiting the Iranian foreign minister's
    visit to Yildiz, essentially to allow us to deploy our
    warnings about Turkish-Iranian energy cooperation.

    GOT WILL SUPPORT DOE ENERGY EFFICIENCY CONFERENCE
    --------------------------------------------- ----

    ¶2. (U) DOE is working with the American Turkish Council (ATC)
    to hold a regional (SE Europe and Caucasus) energy efficiency
    conference in Istanbul June 3-4.  Ambassador Jeffrey passed
    Yildiz a letter from DOE Deputy Secretary Poneman inviting
    Yildiz to be a key note speaker at the conference.  He told
    him that DOE and ATC expect to be able to finance the
    conference with private support, but would like the
    ministry's official support.  Yildiz enthusiastically agreed.

    GOT INTERESTED IN TDA ORIENTATION VISIT ON NUCLEAR ENERGY
    --------------------------------------------- -------------

    ¶3. (U) When the ambassador raised the possibility of a USTDA
    orientation visit on peaceful nuclear power generation,
    Yildiz said he would be interested in sending a team to the
    U.S.  He said they have already formed a team to work on
    regulatory and other aspects of nuclear power and they are in
    touch with officials at the relevant U.S. agencies.

    AKKUYU NUCLEAR PLANT TO RUSSIA BY IGA
    -------------------------------------

    ¶4. (C) Yildiz confirmed that the nuclear power plant to be
    built in Akkuyu will be awarded to Russia through an
    intergovernmental agreement.  He said they still plan to
    build a second plant in Sinop, which they will open for bids.
    Ambassador Jeffrey indicated that U.S. companies may be
    interested in bidding on the project, noting that President
    Obama has indicated openness to a new generation of safe,
    clean nuclear power plants.

    CONTINUED PURSUIT OF IRANIAN ENERGY DEALS
    -----------------------------------------

    ¶5. (C) Ambassador emphasized that now is not the time for
    Turkey to be doing hydrocarbon business with Iran.  He
    recognized that Iran is Turkey's neighbor and trading
    partner, but stressed that now is not the time for business
    as usual.  He added that we do not believe Iranian
    involvement in Nabucco is a good idea at this time.  In
    response, Yildiz only asked rhetorically, "Do you have any
    alternatives for us?"

    STILL SLOW PROGRESS ON SHAH DENIZ NEGOTIATIONS
    --------------------------------------------- -

    ¶6. (C) Regarding negotiations with the Azeris on natural gas,
    Yildiz said they have reached agreement on price for Shah
    Deniz I gas.  They have not agreed on Shah Deniz II volumes
    or price, but the negotiations continue. He said they made a
    reasonable proposal on volumes, which the Azeris are now
    considering.  He said the Azeris rejected Turkey's latest
    offer on transit fees, but he thinks they will eventually
    accept it.  Yildiz assured us the Turkish side is being
    reasonable and doing all it can to move the negotiations
    forward.

    COMMENT
    -------

    ¶7. (C) Yildiz was especially upbeat throughout the meeting.
    Notably, he refrained from expressing frustrations with the
    Azeris or the lack of progress on negotiations.  Regarding
    the nuclear plants, given the frequent changes of plan thus
    far, we do not take Yildiz's comment as final confirmation
    the Sinop project will be awarded through an open tender,
    though it does appear more and more certain the Akkuyu
    project will go to the Russians.  Whether coincidentally or
    intentionally, Yildiz's schedule offered a final comment on

    ANKARA 00000195  002 OF 002

    the sincerity of Turkey's pursuit of Iranian energy:
    immediately following our meeting, Yildiz received Iranian
    Foreign Minister Mottaki.  Yildiz's giving an impromptu press
    conference with the ambassador just before that meeting,
    allowing us to repeat in public our concerns about energy
    cooperation with Iran, was frosting on the cake.
    Jeffrey

               "Visit Ankara's Classified Web Site at http://www.intelink.s
    gov.gov/wiki/Portal:Turkey"

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