Identifier
Created
Classification
Origin
08ASHGABAT188
2008-02-06 12:44:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN GAS PRICE HIKE: BEHIND THE SCENES

Tags:  PGOV EPET EFIN TX 
pdf how-to read a cable
VZCZCXRO0720
PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV
DE RUEHAH #0188 0371244
ZNY CCCCC ZZH
P 061244Z FEB 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0219
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 3344
RUEHBJ/AMEMBASSY BEIJING 1160
RUEHKO/AMEMBASSY TOKYO 1028
RUEHIT/AMCONSUL ISTANBUL 1597
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHNSC/NSC WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHGV/USMISSION GENEVA 1387
RUEHVEN/USMISSION USOSCE 2189
RUCNDT/USMISSION USUN NEW YORK 0714
C O N F I D E N T I A L ASHGABAT 000188 

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 07/20/2017
TAGS: PGOV EPET EFIN TX
SUBJECT: TURKMENISTAN GAS PRICE HIKE: BEHIND THE SCENES
AT THE CABINET OF MINISTERS

REF: ASHGABAT 0076

Classified By: CDA RICHARD E. HOAGLAND: 1.4 (B),(D)

C O N F I D E N T I A L ASHGABAT 000188

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 07/20/2017
TAGS: PGOV EPET EFIN TX
SUBJECT: TURKMENISTAN GAS PRICE HIKE: BEHIND THE SCENES
AT THE CABINET OF MINISTERS

REF: ASHGABAT 0076

Classified By: CDA RICHARD E. HOAGLAND: 1.4 (B),(D)


1. (C) A long-time Embassy diplomatic source, who has
resided in Ashgabat for many years, told us a
behind-the-scenes account of what happened following
President Berdimuhamedov's announcement at a January 11
cabinet meeting that Turkmenistan would introduce higher
gasoline prices (reftel) that he claimed to have received
afterwards from six people who attended the meeting.
According to this source, after the meeting, Deputy Chairman
of the Cabinet of Ministers for Foreign Affairs Rashit
Meredov walked out of the Cabinet of Ministers building and
sent his car away. He walked the six blocks to his office at
the Ministry of Foreign Affairs with his head hung low,
apparently completely preoccupied considering what domestic
problems a rise in gas prices would bring to Turkmenistan.


2. (C) The six mentioned above who attended the meeting also
sent their cars ahead and walked together, wondering where
the idea that instigated this announcement originated.
Noting that Deputy Chairman of Oil and Gas Tachberdi Tagiyev
had presented this idea to Berdimuhamedov, who in turn tasked
Tagiyev with implementing the move from subsidized gas to
market prices, the six speculated that the Russians may have
introduced the idea to Tagiyev, perhaps in order to create
instability in Turkmenistan. After returning to their
offices, they decided to call our source and invite him to
meet with them to get his views on the gas-price hike.


3. (C) COMMENT: If accurate, this is a remarkable insight
about Turkmenistan-Russia relations that senior ministers
would consider conspiracy by Russia. We are also intrigued
that high-level ministers now feel comfortable enough to
share their own reservations about policy and their internal
discussions with a Westerner.


4. (C) COMMENT CONTINUED: Turkmenistan's citizens have come
to feel strongly that access to practically free gasoline is
a right -- a part of the social safety net introduced by
former President Niyazov -- and they are concerned about the
inflationary pressures caused by higher prices for gasoline.
In addition, since the average wage is $100-150/month,
raising the price of gas to possibly as much as $1/liter,
would pose a major strain on most family budgets. This
demonstrates that Turkmenistan's top leadership is talking
and thinking, at least among themselves, even if not with
Berdimuhamedov. This could explain why the topic of a
gasoline price hike has disappeared from the agenda in recent
weeks, since ministers may be deliberately trying to slow
down a plan that they disagree with. Or it could be that
some have been chatting with Berdimuhamedov. END COMMENT.
HOAGLAND