Identifier
Created
Classification
Origin
08ASHGABAT1333
2008-10-08 07:48:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN: COMMERCE DAS DYCK TELLS MINISTER OF

Tags:  ECON EFIN PGOV PREL TX 
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001333 

SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR PDYCK/DSTARKS

E.O. 12958: DECL: 10/01/2018
TAGS: ECON EFIN PGOV PREL TX
SUBJECT: TURKMENISTAN: COMMERCE DAS DYCK TELLS MINISTER OF
TRADE AND FOREIGN ECONOMIC RELATIONS OF U.S. DESIRE FOR
INCREASED TRADE

Classified By: Charge d'Affaires Sylvia Reed Curran. Reasons 1.4(b) and
(d).

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001333

SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR PDYCK/DSTARKS

E.O. 12958: DECL: 10/01/2018
TAGS: ECON EFIN PGOV PREL TX
SUBJECT: TURKMENISTAN: COMMERCE DAS DYCK TELLS MINISTER OF
TRADE AND FOREIGN ECONOMIC RELATIONS OF U.S. DESIRE FOR
INCREASED TRADE

Classified By: Charge d'Affaires Sylvia Reed Curran. Reasons 1.4(b) and
(d).


1. (C) SUMMARY: Turkmenistan's Minister of Trade and
Foreign Economic Relations told visiting Department of
Commerce DAS Paul Dyck September 29 that he hopes that
increased U.S.-Turkmenistan trade relations will move the
U.S. up from Turkmenistan's 16th place trading partner to
"the top ten or better." He encouraged U.S. investment in
the Avaza tourist zone on the Caspian Sea. DAS Dyck told the
Minister that the U.S. wants to develop closer trade
relations with Turkmenistan and noted the desires of Boeing,
Case New Holland and Chevron to do more business in the
country. END SUMMARY.


2. (C) Minister of Trade and Foreign Economic Relations
Nokerguly Atagulyev told Commerce Deputy Assistant Secretary
Paul Dyck during a September 29 meeting that Turkmenstan's
foreign trade amounts to 16.4 billion dollars a year, with
oil and gas accounting for 90% of the country's exports, and
revenues going toward construction, services and the
development of local enterprises. He said that major U.S.
imports include aircraft, chemicals, farm equipment and
foodstuffs. He described the Ministry of Trade and Foreign
Economic Relations as comprised of 96 employees in the
headquarters, 15,000 others throughout the country, and 330
state-run enterprises. Atagulyev said that the Ministry's
main function is to fill markets with food products and
"manage foreign trade to the benefit of the country."


3. (C) DAS Dyck said that it is very important to the U.S.
government to develop the "closest possible ties on all
fronts, including trade." He called increased trade with
Turkmenistan, "one of the main goals" of his visit, observing
that several U.S. companies, including Boeing and several
manufacturers of agricultural equipment have been successful
in Turkmenistan and are interested in doing more business.
Dyck noted that Chevron has made a proposal to the government
of Turkmenistan to explore and develop natural gas onshore.
U.S. companies throughout the region have the "expertise and
willingness to offer goods and services in every sector" in
Turkmenistan. He reminded Minister Atagulyev that one of the
first questions that interested companies ask about is the
business environment in the country. For this reason, the
U.S. welcomes the reforms that Turkmenistan has begun to
implement in order to create a more inviting climate for
investors.


4. (C) Atagulyev said several U.S. companies, including Itera
(a gas trading company),Gloria Ventures, which recently
completed reconstruction of the Turkmenbashi oil refinery,
John Deere, Ibberson, Trinity Company and General Electric
(which completed reconstruction of the Abadan power plant),
have already done large-scale business and projects in
Turkmenistan. Atagulyev said he hopes to continue economic
collaboration with U.S. companies in the future.


5. (C) Atagulyev said he sees the most potential for
investment in Avaza tourist zone, and any tourism-related
investment, including construction, would be welcome. Thus
far, the government of Turkmenistan has invested 1 billion
dollars in Avaza. Foreign companies have invested 1.5
billion, and many others have expressed an interest in
investing.


6. (C) DAS Dyck described the goals of the U.S.-Turkmenistan
Business Council, based in Washington, as promoting trade
between the two countries. It is comprised of companies
doing business or interested in doing business in
Turkmenistan. He thanked the Minister for Turkmenistan's

ASHGABAT 00001333 002 OF 002


cooperation with the TIFA process, which he called one where
both countries can share ideas for increasing trade
opportunites and addressing the accompanying challenges. DAS
Dyck described the success of the SABIT (business training)
program that the Commerce Department runs. A number of the
participants have been from Turkmenistan.


7. (C) COMMENT: The Turkmen would like to see increased U.S.
investment. Nevetheless, they need to take a number of steps
(including cutting the considerable red tape) in order to
improve the business climate in order to make Turkmenistan a
more attractive location for foreign investors. END COMMENT.


8. (U) DAS Dyck has cleared this cable.
CURRAN

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