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Europe Daily Bulletin No. 9898
Contents Publication in full By article 15 / 43
GENERAL NEWS / (eu) eu/energy

Discord at summit on Southern Corridor

Brussels, 08/05/2009 (Agence Europe) - There was a discordant note at the summit on the Southern Corridor on Friday 8 May in Prague where representatives of the three key EU partners in Central Asia - Uzbekistan, Kazakhstan and Turkmenistan (three former USSR republics rich in hydrocarbons) - refused to sign the final declaration, thus giving less weight to the political support that is needed for the Nabucco gas pipeline project, which is to carry gas from the Caspian Sea while circumventing Russia.

In the presence of representatives from third producer or transit countries (Azerbaijan, Egypt, Georgia, Iraq, Kazakhstan, Turkey, Turkmenistan and Uzbekistan), observer third countries (United States, Russia and Ukraine) and international financial institutions (EIB, EBRD and the World Bank), the Prague summit, which was co-chaired by resignee Czech Prime Minister Mirek Topolanek and European Commission President José Manuel BArroso, was the first occasion for these potential partners to discuss their common interests at the highest level regarding the development of the Southern Corridor for energy and transport. The main aim was to provide sound political support and formulate concrete commitments for the development of the Southern Corridor, including for the supply of natural gas to the EU through the trans-Caspian corridor. Mr Barroso's goal was to obtain commitments from countries that produce fossil fuels, transit countries and consumer countries along the corridor, to ensure the EU is supplied in energy resources from the Caspian Sea region and the Middle East, and ensuring that the Nabucco project takes off. This is a project for a gas pipeline that is 3,300 km in length for reducing the EU's energy dependency on Russia by taking gas from the Caspian area via Georgia and Turkey.

The declaration signed by Messrs Topolanek and Barroso, on behalf of the EU, and by Azeri President, Ilham Alieve, Georgian President Mikheil Saakashvili, Turkish President Abdullah Gül and Egyptian Oil Minister Sameh Samir Fahmi, fixes the first formal commitments of the countries concerned on the conditions needed for the corridor to be a success, and should become the basis for closer collaboration between the partner countries. Contrary to all expectations, it was snubbed by Astana, Tashkent and Achgabat. Speaking to the press, Mr Topolanek preferred to place emphasis on this “historic first” of having a very precise declaration of support signed by Azerbaijan, Georgia, Turkey, Egypt and the EU. The only thing is, Azerbaijan cannot, alone, supply either Nabucco or the Turkish-Greek gas pipeline project ITGI. On Friday, the countries of Central Asia still putting up resistance “do not like to sign this kind of declaration. They never do so and today is no exception”, Mr Topolanek tried to explain. Their caution can be explained, too, by the uncertainty surrounding the Caspian Sea, negotiations still going on to determine whether it is a lake or a sea, something that will affect the gas titles. “There is no statute governing the resources of the Caspian Sea,” said the Russian Deputy Energy Minister Anatoli Yanovski, in Prague. The signatory countries to the declaration promised, however, to make progress on this issue. Barroso said he was confident, welcoming the fact that the declaration had established a legal, financial, and political framework for the companies involved in Nabucco. Topolánek stressed the need for public and private funding to get the Southern Corridor projects up and running. The cost of the Nabucco gas pipeline, on which construction will begin in 2011, with operations beginning on 2014, is estimated at €8 billion.

The Prague Summit nevertheless brought real progress on the issue of the gas transit. After months of bitter negotiations, Turkey said it wanted to conclude an agreement on Nabucco gas transit arrangements through its territory by the end of June. The Summit's final declaration states that Turkey and the EU member states concerned will do all in their power to complete an inter-governmental agreement on Nabucco by the end of June. According to negotiators, there remain only a few technical details to sort out. The shift by President Güll that guarantees diversification of EU energy supply, a real Achilles heel for the Union, slightly increases the pressure from Ankara on the EU to speed up Turkey's EU accession talks. (E.H./jl)

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