    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [May 18, 1998]
    [Pages 803-804]
    [From the U.S. Government Publishing Office www.gpo.gov]

    United States/European Union Joint Statement on Caspian Energy
    May 18, 1998

        The United States and the European Union recognize the importance of
    Caspian Basin oil and gas resources in contributing to the economic
    prosperity, energy security, and stability of the region.
        These resources will be an important addition to world oil and gas
    supplies and require secure access routes to world markets.
        Essential to this development will be the early availability of
    multiple pipelines. Major export pipelines from the Caspian will
    accordingly contribute to the secure delivery of an important new source
    of world energy supplies.
        The European Union's INOGATE program is designed to promote the
    security of energy supplies. It includes work on: revitalization of the
    existing transmission network and on new oil and gas pipelines across
    the Caspian, Black Sea region and westwards to Europe; urgent renovation
    of hazardous infrastructure; strengthening regional cooperation;
    compliance with international standards; reform of the region's energy
    sectors; and protection of foreign investments. The European Union's
    TRACECA project supports the development of an east-west transport and
    trade corridor from Central Asia, across the Caspian Sea, the Caucasus,
    and the Black Sea, to Europe.
        The United States strongly endorses commercially and environmentally
    sound projects to develop Caspian energy resources and their transport
    to international markets. U.S. technical assistance and training
    programs are helping many of the Caspian states improve their legal
    regimes

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    to encourage private investment in energy development and transport. The
    United States underscores that the Caspian Pipeline Consortium project
    is a critical component of a commercially driven multiple pipeline
    system for the entire region. The United States has provided a grant to
    Turkmenistan to complete a feasibility study for a trans-Caspian gas
    pipeline.
        Commercial considerations will first and foremost determine
    decisions on the development of energy projects and export routes. It is
    the private sector that will make the investments and take the risks.
    Projects therefore need to be economically viable and competitive. They
    must also meet the highest environmental standards.
        The United States and the European Union welcome the progress made
    by the littoral states towards formulating a legal regime for the
    Caspian that will enhance rapid development of the region's energy
    resources. They express the hope that the littoral states will reach
    early agreement.

    Note: This statement was made available by the Office of the Press
    Secretary on May 18 but was not issued as a White House press release.
    An original was not available for verification of the content of this
    statement.