Viewing cable 06VILNIUS982
Title: LITHUANIA RECEIVES LETTERS OF SUPPORT ON ENERGY

IdentifierCreatedReleasedClassificationOrigin
06VILNIUS9822006-10-31 11:57:00 2011-08-30 01:44:00 CONFIDENTIAL Embassy Vilnius
VZCZCXRO5265
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHVL #0982/01 3041157
ZNY CCCCC ZZH
P 311157Z OCT 06 ZDK
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC PRIORITY 0711
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 VILNIUS 000982 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/30/2016 
TAGS: PREL ENRG EUN LH RS
SUBJECT: LITHUANIA RECEIVES LETTERS OF SUPPORT ON ENERGY 
FROM EUROPEAN COMMISSION 
 
REF: VILNIUS 969 
 
Classified By: Pol/Econ Chief Rebecca Dunham for reasons 1.4 (b) and (d 
) 
 
¶1. (C) During his October 24 meeting with the Ambassador 
(reftel), MFA Political Director Zygimantas Pavilionis 
mentioned two recent letters addressing energy issues: an 
October 19 letter from EC President Barroso to President 
Adamkus and a September 25 letter from EC Energy 
Commissioner Piebalgs to Russian Industry and Energy 
Minister Viktor Khristenko.  At the Ambassador's request, 
Pavilionis provided us copies of the letters.  The full text 
of both letters -- which Pavilionis passed to us in 
confidence -- follows below. 
 
¶2. (C) The Lithuanians were pleased with both letters, which 
associate the Commission with Lithuania's energy concerns, 
particularly the supply cut-off of piped crude from Russia to 
Lithuania's Mazeikiu Nafta oil refinery. 
 
¶3. (C) The full text of the letters is below. 
 
(Begin Barroso letter): 
 
ADVANCED - COPY 
 
H.E. Mr. Valdas Adamkus President of the Republic Lithuania 
 
Jose Manuel Barroso President of the European Commission 
 
Brussels, 19.10.2006 Barroso (2006) A/5182-LT Barroso (2006) 
D/1468 
 
Your Excellency, 
 
Thank you very much for forwarding me a copy of the letter 
you jointly signed with the President of the Republic of 
Poland to the President of the Republic of Finland on the 
security of energy supplies and, in particular, the issue  of 
the Mazeikiu Nafta oil refinery in Lithuania. 
 
As you are aware, energy security is one of the key issues 
currently being debated in the EU. The Commission published a 
Green Paper on this subject earlier in the year, which was 
then followed by a joint Commission/High Representative 
Paper on the external aspects in June.  It has also featured 
as a key point of discussion in each formal and informal 
Heads of State and Government Summit this year.  I am pleased 
that we will have a further opportunity to discuss this issue 
again later this week in Lahti. 
 
With respect to particular issue of the Mazeikiu Nafta oil 
refinery in Lithuania, Member of the Commissioner Piebalgs 
has raised the issue bi-laterally in a letter to the  Russian 
Industry and Energy Minister in the framework of  our Energy 
Dialogue with Russia.  It is, clearly, important to try to 
ensure that this issue is dealt with at an appropriate level 
and to encourage more transparency by the  Russian side as to 
the real technical issues they face  concerning the leak on 
this pipeline.  A lack of transparency only leads to fears 
that the cut-off is not just a purely technical issue but one 
which is politically  motivated.  This then adversely affects 
the public perception of the willingness of Russia to play by 
the international accepted &rules of the game8. 
 
I therefore believe it is important that we use all 
opportunities to impress upon our Russian counterparts in a 
calm, coherent matter, that their lack of transparency does 
tQ no favours.  The principles of transparency and 
predictability are ones we should recall in our meeting in 
Lahti tomorrow with President Putin. 
 
I will continue to follow this matter closely. Solidarity is 
an important principle for the EU --in energy as in others 
matters. 
 
 Yours faithfully, 
 
Jose Manuel Barroso (NOT SIGNED) 
 
(End Barroso letter) 
 
(Begin Piebalgs letter) 
 
MR VIKTOR KHRISTENKO Minister of Industry and Energy 
Kitaygorodsky pr. 7 109074 Moscou 
 
Andris Piebalgs Member of the European Commission Brussels, 
25 SEP 2006 D92006) 932 
 
Dear Minister, (HANDWRITTEN:  Dear Viktor,) 
 
VILNIUS 00000982  002 OF 002 
 
 
 
I am writing in relation to recent announcements and press 
reports regarding the investments of a number of EU oil and 
gas companies in Russia. 
 
As I am sure that we are both aware, in order to ensure that 
companies are willing to invest in multi-billion Euro energy 
projects, a secure and predicable investment climate  is 
necessary.  Without this, investment in new energy projects 
will be highly problematic, providing uncertainties for the 
world,s future energy supply.  This is one of the important 
issues that the EU-Russia Energy Dialogue enables us to 
consider to our mutual advantage. 
 
Specifically in relation to the developments such as 
Sakhalin-2, I fully support the view that every country has 
the legitimate right and indeed obligation to ensure that 
any oil or gas extraction on its territory is undertaken to 
the highest possible standards.  However, in the event that 
any such issues are identified, I am sure that you will agree 
that they should be clearly and unequivocally set out  by the 
appropriate Russian authorities and that investors  must be 
given an appropriate time to resolve them according  to 
defined and clear criteria which are set out in advance. 
 
The successful EU-Russia Energy Partnership is based on the 
mutual respect of transparency, predictability, and 
non-discrimination. The investments of EU companies in Russia 
need to be examined in this light.  Indeed this principle 
must apply as much to the ability of Russian companies to 
invest and sell gas and oil freely at both  upstream and 
downstream levels in the EU as much as the  ability of EU 
companies to invest in Russia. 
 
I have no doubt that in the light of these shared values the 
Russian authorities will be able to rapidly resolve any 
technical issues with investors in a satisfactory manner. 
If necessary, I am available to discuss this further in the 
context of the EU-Russia Energy Dialogue and to play an 
active part in finding a rapid solution to such issues. 
 
I would also like to raise another issue related to crude oil 
deliveries to Mazeiku Nafta refinery in Lithuania via the 
Druzhba pipeline which were halted at the end of July  2006 
following an incident on pipeline located in Russian 
Federation territory.  I was informed that Mazeiku Nafta has 
offered assistance to repair the pipeline; however, there was 
no further follow up to this proposal.  I would highly 
appreciate if you could provide me your assessment of this 
issue.  In case this would be necessary, we could propose a 
joint evaluation by EU and Russian experts to  assess the 
range of the accident in the Druzhba pipeline.  Taking into 
account the high quantity of oil supplies the EU receives 
from Russia, I strongly believe there is a  mutual interest 
to get more clarity in this particular  case. 
 
Yours sincerely, 
 
¶A. Piebalgs (SIGNED) 
 
(End Pielbalgs letter) 
CLOUD