TURKMENISTAN: UKRAINIAN FOREIGN MINISTER SEEKS TO

UNCLAS SECTION 01 OF 02 ASHGABAT 001186 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, EUR/UMB E.O. 12958: N/A TAGS: PGOV PREL ETRD SCUL UP TX SUBJECT: TURKMENISTAN: UKRAINIAN FOREIGN MINISTER SEEKS TO REVIVE THE OLD RELATIONSHIP ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: Ukrainian Foreign Minister Yatsenyuk's late-October visit to Ashgabat is part of an effort to re-establish a normal relationship between the two countries, after years of commercial disputes and changes in leadership on both sides. Numerous areas of cooperation, including planning for the upcoming CIS heads of government meeting on 22 November and President Berdimuhamedov's official visit to Ukraine early next year, suggest the two countries are interested in reviving the relationship, but outstanding disputes will have to be resolved. END SUMMARY. ¶3. (SBU) PolOff met with Ukrainian Embassy political officer Igor Roman for a read-out of Foreign Minister Yatsenyuk's visit to Ashgabat on 25-26 October. The Ukrainian delegation arrived during Turkmenistan's Independence Week, perhaps the most significant and frenetic holiday period of the year. Roman noted Yatsenyuk came with a small delegation that also included former Deputy Foreign Minister Oleksandr Chalyy. Their goals were simple, and focused primarily on issues relating to repairing the bilateral relationship, which has suffered from a number of commercial problems over the last 10 years. The Ukrainian government, however, had decided that delving into the details of those problems was inappropriate on the eve of a major holiday, so Yatsenyuk focused on underscoring the positive elements of the new relationship. Roman said the foreign minister spent 40 minutes with President Berdimuhamedov, and then met for more than two hours with Deputy Cabinet Chairman/Foreign Minister Meredov. The delegation had requested a meeting with Deputy Chairman for Oil and Gas Tagiyev, but Tagiyev was unavailable. Ukraine's deputy prime minister for energy may head its TIOGE conference delegation November 13-15, however, and he may try to meet with Tagiyev then. ¶4. (SBU) Ukraine has a long history of strong ties with Turkmenistan in energy, military cooperation, and education. The longtime commercial relationship between the two states, however, has suffered deeply because of several unresolved contract disputes and a scandal surrounding a Ukrainian company railroad bridge project. Several years ago, a serious contract dispute arose when Ukrainian contractors sought to re-negotiate the terms of a major underground infrastructure project contract that the Ukrainian state company Interbudmontazh had been overseeing. When the cost of construction materials skyrocketed, the company sought to renegotiate that portion of the contract, but the Turkmen side insisted that either the company or the government of Ukraine absorb any added costs themselves. The dispute was never settled, and work on the project came to a halt. ¶5. (SBU) Another contract dispute that descended into criminal scandal also worsened the bilateral relationship. UkrTransBud had signed a deal to build a railway bridge over the Amu Darya River, and the Turkmen government had agreed to pay for the bridge with delivery of natural gas. Somehow, the gas delivery "went missing," Ukrainian press reported that two Ukrainian businessmen were arrested, and the bridge has not been built. ¶6. (SBU) Yatsenyuk's priority topics for discussion included President Berdimuhamedov's official visit to Ukraine early next year. Berdimuhamedov had accepted President Yuschenko's invitation to visit Ukraine earlier this year, but the two sides had some difficulty agreeing on a time. Earlier in the year had not been possible because Berdimuhamedov had just taken office, and now Ukraine wanted to wait for its new government to be in place before hosting the visit. The Turkmen side, however, noted Berdimuhamedov's busy schedule at the end of this year, and said it would consider a visit no earlier than February 2008. ASHGABAT 00001186 002 OF 002 ¶7. (SBU) With the CIS heads of government meeting taking place in Ashgabat on 22 November under Ukraine's chairmanship, it was a perfect opportunity for the two states to consult on the planning for the meeting. Roman agreed that it was interesting that Turkmenistan had offered to host the meeting, since its status as a non-member in the CIS has still not been legally defined. He said the Turkmen and CIS legal authorities had been in negotiations for several years to create a definition for "associate" or "observer" member that both parties could live with, but there is still no agreement. He thought the primary reason Ashgabat was offered up as a host city was to provide some international media attention for Turkmenistan, not to mention filling up the usually vacant hotels here with CIS visitors and media. Berdimuhamedov, he said, was planning to give a keynote speech. ¶8. (SBU) Ukraine has had a very successful cooperative education program with Turkmenistan for many years, and is currently engaged in discussions with the Turkmen government to expand it further. This year, some 500 students were able to go to Ukrainian universities and technical institutes, although at personal expense, and a total of about 1,500 Turkmenistani students are currently in Ukraine. The government of Ukraine sponsors an additional 33 student scholarships per year, but the program requires that the students speak Ukrainian. (NOTE: The Ukrainian Embassy is the only place in Turkmenistan where Ukrainian language is taught. It is offered in classes on Sunday afternoons, and ethnic Ukrainians and Tatars in particular have filled them up. The classes are oversized, but Turkmen authorities have been unwilling to allow the embassy to rent space elsewhere for these classes. END NOTE.) ¶9. (SBU) COMMENT: Ukrainian efforts to engage the Turkmen on such a wide variety of issues, including commerce, diplomacy, regional cooperation and education might pay off in the longer term. The Turkmen are certainly aware of the benefits a close relationship could offer, in construction expertise and energy partnerships alone. Berdimuhamedov would be smart to direct his government to resolve the old disputes and move into new potential areas of cooperation. It is certain, however, that Berdimuhamedov will want to review carefully the old disputes before entering into new agreements, but both sides are likely interested in finding closure. On the Turkmen view of CIS, the Ukrainians have it right. Berdimuhamedov is interested in an association with the CIS structure only as a vehicle for raising Turkmenistan's international profile, and to give Turkmen officials a single location where they can regularly manage their CIS bilateral relationships on a budget. END COMMENT. HOAGLAND