YANUKOVYCH'S TASHKENT VISIT MARKS GRADUAL PROGRESS

C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 000971 SIPDIS SIPDIS DEPT FOR SCA/CEN E.O. 12958: DECL: 05/17/2017 TAGS: PREL PRGOV ECON PINR UP UZ SUBJECT: YANUKOVYCH'S TASHKENT VISIT MARKS GRADUAL PROGRESS IN UKRAINE-UZBEK RELATIONS Classified By: CLASSIFIED BY CDA BRAD HANSON FOR REASONS 1.4 (B, D). ¶1. (C) Summary: The Ukrainian Ambassador discussed with Charge and Poloff the recent visit to Tashkent of Ukrainian Prime Minister Viktor Yanukovych. He characterized the Ukraine-Uzbekistan relationship as complicated, particularly since the Orange Revolution, and said that Ukraine is approaching the Uzbeks with pragmatism and a healthy dose of patience. Yanukovych's visit was brief, but covered many issues, mostly economic. Trade turnover between the two countries continues to grow, and Ukraine is particularly interested in helping Uzbekistan become an independent actor in the oil, gas, and energy market, in order to help Ukraine diversify its own pool of suppliers. According to the Ambassador, Ukrainian cultural and educational programs continue unhindered. End summary. ¶2. (C) On May 4, Charge and Poloff met with Ukrainian Ambassador Vyacheslav Pokhvalsky following the April 25-26 visit of Ukrainian Prime Minister Viktor Yanukovych to Tashkent. Pokhvalsky noted that Ukraine and Uzbekistan have had a strategic partnership dating from Leonid Kuchma's presidency; however, in the past year it has been hard to characterize it as such. The last visit by a Ukrainian Prime Minister was in June 2004. There was a sharp decline in dialogue between the two countries following the Orange Revolution; now, he said, the two countries are trying to "resurrect a normal relationship." He said that President Karimov has had a standing invitation to visit Kyiv for the past five years, and the invitation was re-extended by PM Yanukovich, but Karimov has not yet accepted. ¶3. (C) The Ukraine-Uzbekistan relationship is complicated, Pokhvalsky said, and Yanukovych's visit represented gradual progress. The Ukrainian Government views the relationship in a pragmatic light, and the list of topics of discussion--which included most prominently cooperation in the oil, gas, and power sectors--reflected that mood. During the visit, agreement was reportedly reached on establishing a Ukrainian Center of Business Cooperation, as well as various agreements on trade of industrial goods. The Ukrainian Political Counselor provided a list of ongoing joint scientific projects, which included such ventures as the development and application of solar power technology and drinking water purification processes. ¶4. (C) Pokhvalsky said that mutual economic interests are broad. Trade turnover between the two countries was approximately $640 million in 2006, up from $315 million in the prior year. He said that Ukraine is now seeking to diversify its sources of natural gas, and to that end is working to help Uzbekistan become a more independent actor in the world market. He noted that a delegation from the Ukrainian national oil and gas company plans to visit Uzbekistan in the near future for geological survey work. He noted that Ukraine is also a major importer of automobiles and farm equipment assembled in Uzbekistan, and Ukraine is cooperating with Tashkent's Chkalov Aircraft Plant (TAPOiCh) on production of Antonov An-70 and An-148 airplanes. ¶5. (C) Pokhvalsky said that an estimated 100,000 ethnic Ukrainians live in Uzbekistan, and Ukrainians have lived in the region for over 200 years. In addition, approximately 50,000 Crimean Tartars remain of the much larger population that once lived here. Some prominent figures in Uzbekistan politics and business are Ukrainian, including Navoi mining boss Nikolai Kuchersky, who graduated from the Dnipropetrovsk Mining Institute. Pokhvalsky stated that eight Ukrainian cultural centers operate in Uzbekistan, two of which are in Tashkent. Pokhvalsky said that none has complained of harassment by the authorities, and he has encouraged the centers to operate even more openly. He said that hundreds of Uzbek students study in Ukrainian educational institutions each year through programs that continue unhindered. ¶6. (C) Comment: Complications in Ukraine's relationship with Uzbekistan are not surprising. The Government of Uzbekistan considers Ukraine's Orange Revolution to have been the product of a U.S.-led plot, which has since been turned against Uzbekistan. Ambassador Pokhvalsky clearly understands this. He is a seasoned diplomat, and a political appointee who previously served as a provincial governor in Ukraine. He also understands that, given Uzbekistan's political environment, progress in relations will take time TASHKENT 00000971 002 OF 002 and patient effort. HANSON