Identifier
Created
Classification
Origin
06ASHGABAT821
2006-08-02 13:22:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

SCENE SETTER FOR PDAS MANN'S AUGUST 13-15 VISIT TO

Tags:  ENRG OVIP PGOV PHUM PREL TX 
pdf how-to read a cable
VZCZCXRO8278
OO RUEHDBU
DE RUEHAH #0821/01 2141322
ZNY CCCCC ZZH
O 021322Z AUG 06
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7638
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHBUL/AMEMBASSY KABUL PRIORITY 0407
RHEFDIA/DIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHINGTON DC//J5/RUE// PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 ASHGABAT 000821 

SIPDIS

SIPDIS

SCA FOR PDAS MANN

E.O. 12958: DECL: 08/03/2016
TAGS: ENRG OVIP PGOV PHUM PREL TX
SUBJECT: SCENE SETTER FOR PDAS MANN'S AUGUST 13-15 VISIT TO
TURKMENISTAN

REF: A. ASHGABAT 804


B. ASHGABAT 715

C. ASHGABAT 702

D. ASHGABAT 699

E. ASHGABAT 698

Classified By: Charge d'Affaires Jennifer L. Brush, for reasons 1.4 (b)
and (d).

Summary
-------

C O N F I D E N T I A L SECTION 01 OF 03 ASHGABAT 000821

SIPDIS

SIPDIS

SCA FOR PDAS MANN

E.O. 12958: DECL: 08/03/2016
TAGS: ENRG OVIP PGOV PHUM PREL TX
SUBJECT: SCENE SETTER FOR PDAS MANN'S AUGUST 13-15 VISIT TO
TURKMENISTAN

REF: A. ASHGABAT 804


B. ASHGABAT 715

C. ASHGABAT 702

D. ASHGABAT 699

E. ASHGABAT 698

Classified By: Charge d'Affaires Jennifer L. Brush, for reasons 1.4 (b)
and (d).

Summary
--------------


1. (U) PDAS Mann, welcome back to Ashgabat, we look
forward to your return. Your visit will provide us with an
opportunity to meet President Niyazov to discuss oil and gas
issues and review progress on the key priorities of our
bilateral relationship:

-- Promotion of democratic reform and human rights,

-- Promotion of economic reform and a market economy, and

-- Promotion of security cooperation.

End Summary.

Since You've Been Gone....
--------------


2. (SBU) Since the international community began to focus
more on Turkmenistan's gas reserves following Russia's "New
Year's" gas cut-off to Europe, President Niyazov has gone on
a promises promises spree, hawking Turkmenistan's gas
reserves to all comers ultimately, embassy believes, in hopes
of driving up the price he receives from the Russians. The
most recent development in this regard was the July 24-25
visit of President Ahmadinejad of Iran (ref A); although the
two presidents discussed Caspian boundaries and agreed the
issue should be solved by the Caspian states themselves, they
did not sign any agreements. They did, however, agree to set
up a joint commission to work on issues related to gas prices
and supplies.


3. (SBU) In spite of Niyazov's flurry of activity, the
reality on the group remains essentially unchanged.

-- Russia: In December 2005, Turkmenistan signed a contract
with Gazprom to supply 30 bcm in 2006 at $65 per thousand
cubic meters (tcm). In June, the president told Gazprom that
he would increase the price to $100 per tcm, an increase that
Gazprom rejected. Turkmenistan declared it will cease all
shipments as soon as it meets its 30 bcm commitment (probably

in September). Although Russia requested that the gas
pipeline be turned off for eight days, effective July 25, for
repairs (a move which, in the past, has signaled the start of
serious hardball maneuvering),our contacts here agree that
this shutdown was likely indeed for the reason stated.

-- Ukraine: There are three sides to the Ukraine gas supply
story -- Ukrainian, Russian and Turkmenistani. The truth is
somewhere murky in between. But as a result of a number of
disputes, there has been no gas supplied directly to Ukraine
since January. Essentially Gazprom outbid Naftahas (the
Ukrainian gas company) for the capacity of the Central Asia
Center (CAC) pipeline and informed the Government of
Turkmenistan that it, therefore, was unable to issue Naftahas
a gas transit license. Ukrainian Fuel and Energy Minister
Ivan Plachkov visited Ashgabat June 29-30, at which time he
confirmed Ukraine's commitment to pay for gas supplied from
2003 to 2005 in cash and barter amounting to $64 million.
The Turkmen government has proposed to Ukraine to supply
10-11 bcm of gas in the fourth quarter at 100 dollars per tcm
and to consider supplies in 2007 if Ukraine obtains a transit
license with Gazprom. At the end of the day Gazprom has the
upper hand in any Ukraine/Turkmenistan gas negotiation and
Ukraine will need to make a deal acceptable to Gazprom.

-- China: Turkmenistan and China have a framework agreement
under which China will purchase 30 bcm of natural gas
annually on the Turkmenistan border for 30 years after the
opening of an operating pipeline in 2009. China will
purchase the gas at the border and will be responsible for
building the pipeline. Chinese Embassy representatives
consistently has told us that they consider the agreement
nothing more than a "framework" and that any future deal will
involve verifiable information on the volume of gas reserves

ASHGABAT 00000821 002 OF 003


on the east bank of the Amu-Darya River. According to
official media here, the parties already have initiated joint
exploration of the region.

-- Iran: In February 2006, the two sides agreed to increase
the price from $42 to $65 per tcm. Turkmenistan currently
exports approximately 8 bcm per year. The two countries have
agreed to the sale and purchase of up to 14 bcm in 2007.
While the two sides discussed gas sales during President
Ahmadinejad's visit, they apparently did not reach agreement
on a new price, and instead established a joint commission to
address the issue.

-- TAP: The last meeting of the Steering Committee took
place in Ashgabat in February. Gas availability
(certification of the Dovletabad field) and Afghanistan
security issues remain unresolved. Turkmenistan is pushing
for a commitment to specific purchase volumes from Pakistan
and India. The TAP is designed to supply 30 bcm per year.

-- TCP: The project is inactive, though the Government of
Turkey remains keenly interested, according to the Turkish
Ambassador in Ashgabat.

Human Rights Issues
--------------


4. (C) The embassy continues to actively advocate improved
observance of human rights and sometimes enjoys limited
success, though the overall picture remains abysmal.

-- Jackson)Vanik (ref B): The Government of Turkmenistan
displays gross indifference to freedom of movement in general
and rarely responds to cases raised by the embassy. The
government preposterously denied the existence of a known
&black list8 via a July 3 diplomatic note (even though
Charge has discussed the list on several occasions with
Foreign Minister Meredov),and remains intransigent on
resolving outstanding cases of extended family members of
those convicted of involvement in the 2002 assassination
attempt on President Niyazov. The embassy has advocated in
several individual cases, but the singular embassy success
story was when the ambassador raised a case directly with
Niyazov. Embassy has warned Turkmenistan that the J-V waiver
will not be renewed at the next review scheduled for the end
of 2006 unless significant progress has been made in both
resolving individual cases and making list criteria
transparent.

-- Registration of independent NGOs: No new NGOs were
registered in 2005 and thus far in 2006. The embassy
regularly advocates for a more transparent registration
process and to register the U.S. government exchange programs
alumni group.

-- ICRC access: During their recent July 31 visit (septel),
ICRC representatives advised us not to raise this directly
with the Government of Turkmenistan, now opting for a more
"independent" approach.

-- Continued Demolitions in the Name of Beautification:
During the weekend of July 29-30, demolition of over 1000
homes in a large residential neighborhood near the DCM's
residence began. Residents were given 48-hour eviction
notices, and those who had built permanent homes in the area
were unable to get any compensation for their losses. Local
sources say the demolition order came during the state visit
of Iranian President Ahmadinejad when President Niyazov
passed the neighborhood en route to the July 25 opening of
the new Turkmenistan-Iranian border crossing checkpoint at
Gowdan-Bajgiran.

-- Elections: Village council elections were held on July

23. Though the campaigns and elections were mostly staged
events resulting in the election of thousands of local
officials to essentially powerless local bodies, emphasis on
multiple candidates and secret voting was a positive step.
District elections scheduled for this December will be a more
important event wherein we hope to see multi-party candidates
and increased voter participation. Ultimately we look
forward to free and open presidential elections in 2009.

Improving Security and Health Engagement
--------------


5. (SBU) The bilateral relationship with the government in

ASHGABAT 00000821 003 OF 003


the areas of security cooperation, non-proliferation and
health has progressively improved. The government
increasingly participates in domestic and international
training opportunities.

-- Security cooperation: The Nevada National Guard is using
$5 million of CENTCOM,s FY05 Counternarcotics Supplemental
funds to build two border crossing checkpoint stations. The
Altyn Asyr station on the Iranian border is scheduled for
completion at the end of September. The Imam Nazar project
on the Afghanistan border will be completed in early 2007.
(Embassy will open the former quietly and plan a more
publicized event for the latter.) Additionally, the
International Narcotics and Law Enforcement (INL) program
continues a good relationship with the Ministry of the
Interior,s national forensic laboratory and embassy staff
have attended three drug burning events. DOD,s
military-to-military programs have seen increased
participation and overall engagement.

-- Non-proliferation: Turkmenistan has a surprisingly good
non-proliferation record, thanks, in part, to its policy of
neutrality. For the past two years, the government has
provided embassy's Export Control and Related Border Security
(EXBS) advisor access to border areas. Turkmenistan has
shown an increased interest in EXBS activities, and embassy
has experienced little difficulty obtaining government
participation for in-country and international training
programs and conferences. Turkmenistan also has signed the
Proliferation Security Initiative, as well as the IAEA
Safeguards Agreement and Additional Protocol.

-- Health: For the first time, the government submitted an
application to the Global Fund to fight tuberculosis,
HIV/AIDS and malaria. The first USAID HIV/AIDS assistance
project was approved by the president, which we hope
ultimately will lead to the first-ever drug demand reduction
program in Turkmenistan.

Your Meeting with Niyazov, "How's the Family?"
-------------- -


6. (C) In addition to discussing the current state of play
of energy issues and the Ahmadinejad visit with the
president, embassy suggests raising the following:

-- Jackson-Vanik,
-- Human rights and civil society issues, and
-- Election plans, through presidential elections in 2009.


7. (C) In an interesting twist, there are credible reports
that Niyazov's son, Myrat, may now be living in Ashgabat and
may be taking on some governmental responsibilities in the
future. During the past year embassy unsuccessfully has been
attempting to arrange a meeting with Myrat in Vienna. Your
meeting may be an opportunity to observe Turkmen traditions
and ask about the family.


8. (U) We look forward to your visit.
BRUSH