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March 5, 2008 |  5 comments |  Print | E-Mail Your Opinion  

Ryan R. Miller

Poland's Iran Option

Ryan R. Miller: Possible Polish-Iranian energy cooperation puts U.S. policy makers between a rock and a hard place, as America finds itself committed both to isolating the Islamic Republic and supporting Polish efforts to outflank Russia’s Gazprom.


On March 10, Poland's Donald Tusk will make his first visit to Washington as Prime Minister for talks with George W. Bush. Reports suggest missile defense will top the agenda. Perhaps one item neither leader will want to talk about is the announcement a few weeks ago by Poland's gas monopoly (PGNiG) that it could help Iran to develop its natural gas deposits.

From the U.S. perspective, Poland would be wise to support efforts to isolate Iran. The ongoing standoff over Iran's nuclear program makes the situation particularly pressing; in an effort to pressure Tehran to suspend uranium enrichment, Washington has urged European governments and companies not to invest in Iran's energy sector.

Yet from Warsaw's perspective, Iran is not the chief boogeyman - Russia is. Like other countries in Central Europe, Poland is concerned about Russian influence in its former satellites. And the means by which Russia plans to enhance its political clout revolve around its monopoly on the region's energy supplies. The United States recognizes this problem, but Poland has taken the lead in exploring ways to dent the market share of Gazprom, Russia's state-owned gas giant.

Here is where Iran could fit in. The Islamic Republic holds the world's second-largest gas deposits (after Russia) and is Gazprom's natural competitor. The country also hopes to export liquefied natural gas (LNG) in the coming years. Poland, for its part, has long sought to build a LNG terminal on its Baltic coast. But to do this Poland needs contracts with a long-term supplier. Though technical and financial hurdles remain, observers suggest the preliminary deal between PGNiG and the Iranians, signed February 11, could pave the way for such contracts.

The Poles may ultimately forego their Iran option. While PGNiG has no North American business that could be hit by U.S. sanctions, Washington could make it difficult for banks to finance the project. But if PGNiG does go to Iran for gas contracts, the U.S. sanctions machine should consider sitting this one out for the sake of the U.S.-Polish relationship.

Doing so would allow U.S. officials to avoid having to chastise an ally and call into question America's commitment to Europe's energy security. The United States has supported Warsaw in its search for non-Russian supplies, and the Kremlin has done a good job of derailing alternatives to Iran. An additional complication is that U.S. officials have already turned down Polish requests for greater American involvement (i.e. co-financing) in a Poland-backed project to access Central Asian gas via Ukraine. If the Bush team complained now about Poland's energy choices, the Poles may snap back that Washington is being hypocritical and ignoring Warsaw's concerns about Russia. Furthermore, Bush needs Polish assistance on both the missile defense shield and Afghanistan - two items on which the Administration would like to claim some success.

At the end of the day, sometimes staying quiet is the least bad option, especially when trying to contain both Gazprom and Iran at the same time.

Ryan R. Miller is a Research Analyst at the Center for European Policy Analysis (CEPA) in Washington, DC.

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Tags: | Poland | energy security | Gazprom | Iran | Russia |
 
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Marek  Swierczynski

March 21, 2008

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Don't be too much worried. Polish leaders have probably re-considered the business and are now speaking of a "risky deal" and "uncertain partner". The provisional agreement has been slammed by the deputy prime minister in charge of economy. Right after that the whole board of the state-owned gas monopoly has been sacked and replaced with new management. The move is a usual practice of new governments in Poland, although it took them 6 months to make this changes and it did coincide with the announcement of the Iran project. The new boar members did not speak publicly about Iran but I would expect the idea to be buried soon. Now why did it at all emerge? You're right to quote Poland's desperation in looking for non-russian fuel sources, especially in gas supplies. President Kaczynski is very active in the Caucassus and Caspian regions mainly for that purpose. But in that haste Poland sometimes goes too far and too quick, and the main reason for that seems to be the widely commented incompetence and relentlessness of our diplomacy in the previous government. The somewhat crazy Iran idea was their legacy after all.
Tags: | Iran | gas | Poland |
 
Unregistered User

April 4, 2008

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I think at the time that Russia is using its gas supply to control the European countries, therefore the idea to find a replacement is a wise decision. I belive if American or anybody else try to stop the deal to stop which may result a possible deal on the same field is done with Russian, then those people should answer not only the Poles but also other European countries.
I bet Russian love this deal to be stopped and certainly a lot of negative comments by those in favor of Russian influence will be made.

qqptz0ht
Tags: | iran gas poland |
 
ilyas m mohsin

May 28, 2008

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Paranoia can't be a substiute for a well-consdiered policy. So Poland may still clinch the deal with Iran. As the energy-crunch aggravtes, Poland may not be the only East European counntry which woudl try its luck with Iran despite US reservations as yet. Poland has a bitter history in relation to Russia and Iran, despite all the bugbears, can't match that.
 
Unregistered User

August 1, 2008

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Every educated German Lutheran Protestant Christian knows that Iran controls the ultra deadly smallpox bioweapon against which no vaccine can ever be invented and all conventional vaccines stored in the USA and elsewhere are absolutely useless.

Every educated German knows by now that the a single virus particle results in infection and 92% of those exposed and infected will be dead in 3 to 4 days.

I am not in the mood of accepting plausible deniability from any unsound mind if 92% of all mankind are to perish in the Third World War if Iran is either attacked or embargoed.

How wise is it that some terminal alcoholis Tay Sachs-brained Ashkenazi of TEL AVIV threatens Iran with total annihilation with a few F16 of grandfather's age?

What cure for smallpox-infected innocent two millionTel Avivians does this F16 pilot offer when retaliation begins to kill Tel Avivians and myself?

So stop bullshitting and do not give Iranians any legal reason/justification for pre-emptive smallpox bioweapon strike in Tel aviv by simply pressing a button in Teheran. As a nation of martyrs they are to go to Paradise. But Ashkenazim do not believe in Heaven and Hell according to the Old Testament.

It is always respectable to respect one's own limitation. One lives longer.
We seem to have too many Hitlers in Tel Aviv who believe in BLITZ.
It did not do the Austrian Hitler any good.
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Unregistered User

August 1, 2008

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I like this comment! What's this?
Every US fetus has already a national debt tag of $140,000 before birth. That is $43 trillion national debt.

US dollar has been effectively devalued by about 50%.
US treasury is effectively bankrupt.
The Black Friday of 1929 is upon us again.
On that day in 1929 the US President said" crisis? What crisis?".

After 4 years we had to kick him in the arse and vote for Roosevelt who confirmed to us that indeed 30,000,000 Americans were without job, without bread and without home.
Banks continued to make money. No bank chairman went to prison.

We have had 7 wonderful war years full of conquests in Afghanistan.

We have had 5 years of BLITZ victories in Iraq.

We have yet to invade Iran (Persia) from the Afghanistan East, Iraq West and from the Persian Gulf in order to conquer Teheran in 5 days.

We have a tiny problem with Iran's retaliatory ultra smallpox bioweapon: We have no vaccines against it.Until then we must be patient.

WAR costs us only a trillion dollar a year or three billion dollar a day.
That is a not much.

We are a nation of wonderful optimists.
God Almighty loves optimists.

We have a lot of fun.

Unlike Germans we are not a nation of ANGSTHASEN.

God bless America.
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