TAJIKISTAN'S DONALD TRUMP: "NUR" MAY BECOME A LOCAL

UNCLAS SECTION 01 OF 02 DUSHANBE 001625

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV ECON EFIN EAIR EINV TI
SUBJECT: TAJIKISTAN'S DONALD TRUMP: "NUR" MAY BECOME A LOCAL
HOUSEHOLD NAME

REF: A) DUSHANBE 0626 B) DUSHANBE 1314

DUSHANBE 00001625 001.2 OF 002



1. (SBU) SUMMARY: An upstart local competitor to Tajik Air has
reached an agreement to begin domestic and international flights
using new Russian planes. "NUR" recently opened its airport
terminal in Khujand, will invest $15 million to renovate the
airport in Qurghon-Teppa in the south, and negotiated for 22
hectares of land near the U.S.-funded bridge at Nizhniy Pyanj to
build an economic zone with a hotel, restaurant, and trade
complex. NUR's experience demonstrates that the proper
political backing swiftly moves along major business initiatives
in Tajikistan. End Summary.

THE ENTREPRE-NUR


2. (SBU) Self-made businessman Nurullo Usmanov, the head of
NUR, is quickly becoming the Donald Trump of Tajikistan. NUR
has major holdings in construction, consumer imports, natural
gas consumption, agricultural processing, textiles, aviation,
medicine, and education. Usmanov began making money in fifth
grade, and in ninth grade he bought his first two cars. In the
1980's he opened a production cooperative that he later
reorganized into NUR, now employing 3,000 people across several
sectors.


3. (SBU) Authorities finally allowed NUR's airport terminal in
Khujand to open two years after its construction (Reftel A),and
the company will operate international flights in and out of
Khujand. Local flights still go through the old, unpleasant
terminal, but Tajik Air is currently negotiating with NUR to use
its new facility. According to Usmanov, the Sughd regional
authorities and Tajik Air kept the new terminal out of business
for two years. Recently, Usmanov convinced President Rahmonov
to open the Khujand terminal. According to various sources, to
shore up political support, Usmanov became a co-partner of Orion
International Group, run by President Rahmonov's brother-in-law.



4. (SBU) Usmanov stated that after the terminal opened in
Khujand August 5, Khatlon regional authorities and the
Presidential Administration became so eager to build a new
terminal in the Qurghon-Teppa airport, near Rahmonov's home,
they immediately allowed NUR to start repairs of the airfield
and runway. Ground-breaking of the new terminal is scheduled to
begin September 10, with President Rahmonov participating as
part of the Tajik Independence Day celebrations. Usmanov plans
to invest up to $15 million in the new terminal and air
navigation system at Qurghon-Teppa. Usmanov told EmbOffs that
he acquired 22 hectares of land near the U.S. funded bridge at
Nizhniy Pyanj, where he will build a hotel and trading center
plus a cargo terminal for regional transport.

NUR AIR


5. (SBU) Usmanov intends to lease four new Yak-42 planes from
Saratov Air, and put them under his name "NUR", for
international flights. Usmanov negotiated with the governor of
Saratov region, the Director of Saratov Air (SARAVIA),and the
Director of the Saratov Plane Manufacturing Co., on the opening
of a twice-weekly Moscow-Saratov-Qurghon-Teppa-Moscow flight,
operated by Saratov Air. The first flight arrived in
Qurghon-Teppa to great publicity August 17. In addition,
Usmanov plans to purchase four Yak-40 planes from Tajik Air and
rehabilitate them in Saratov, Russia, for domestic flights in
Tajikistan.


6. (SBU) NUR Air could breathe a welcome sign of life into the
Tajik airline industry. The Tajik Air fleet consists of
outdated TU-154M, Yak-40, An-24, An-28 and Mi-8 helicopters.
The four TU-154M planes are 15-23 years old and will last until

2015. Mechanics who work in the airport have a saying that the

DUSHANBE 00001625 002.2 OF 002


"planes fly simply on the honest words of the mechanics."
Rather than paying $1 million to rehabilitate its old planes,
sources claim Tajik Air pays the Moscow Aviation Bureau $100,000
each year in bribes to recertify the planes' operational life.
Despite years of talk of leasing two Boeings or Airbus planes,
Tajik Air has no concrete plans to modernize. Tajik Air's
monopoly of airplanes, airfield, airport, and navigation and
fuel supplies have stifled industry development. While Russian
air companies conduct more than 18 flights a week to and from
Dushanbe, Tajik Air has been reluctant to allow Turkish Air, the
only western standard carrier flying to Dushanbe, more than one
flight a week (Reftel B).


7. (SBU) COMMENT: Breaking into the airline industry could
bring Mr. Usmanov and NUR to a new level of recognition in
Tajikistan, where passengers' frustration in the stagnant
airline industry has bubbled over. The highlighted case
represents a clear example of direct involvement of President
Rahmonov and his family in the business affairs of Tajikistan.
In this case, however, the result should be a welcome
development for Tajik airline passengers. END COMMENT.
HUSHEK