Identifier
Created
Classification
Origin
08ASHGABAT367
2008-03-24 12:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: ITALIAN ENVOY ADMITS ENI IN HOT
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UNCLAS ASHGABAT 000367
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PREL ECON EPET TX
SUBJECT: TURKMENISTAN: ITALIAN ENVOY ADMITS ENI IN HOT
WATER OVER BURREN DEAL
UNCLAS ASHGABAT 000367
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PREL ECON EPET TX
SUBJECT: TURKMENISTAN: ITALIAN ENVOY ADMITS ENI IN HOT
WATER OVER BURREN DEAL
1. (U) Senistive but unclassified. Not for public Internet.
2. (SBU) Italian MFA Coordinator and Special Envoy for
Central Asia Paolo Serpi met March 20 with the Charge to
discuss Serpi's most recent visit. He said he had come to
Ashgabat to sign an agreement on cooperation between the two
foreign ministries. He said he normally deals directly with
Deputy FM Hajiyev, who last visited Rome in September 2007,
but has also met with officials from the Central Bank and the
Ministry of Economy.
ENI AND BURREN
3. (SBU) Serpi said Italian companies are trying to enter
Turkmenistan's market within the framework of the EU strategy
for Central Asia. ENI, not satisfied with its attempts to
break into the market, bought Burren which was already here.
Serpi confirmed that the Turkmenistan government was angry
that Burren sold itself to ENI. The result has been that no
ENI officials have received visas to Turkmenistan since the
sale. Consequently, employees of the former Burren have had
to continue to run the company. Serpi said that on this
visit he has tried to "smooth things over" with Turkmenistan
officials. ENI is an Italian state enterprise, so the
Italian government feels some responsibility. However, Serpi
said, he did what he could to soothe Turkmenistan
government's ruffled feathers. Now, it would be up to ENI to
do the rest.
4. (SBU) COMMENT: It can be difficult to do business in
Turkmenistan for foreign companies. It takes a long time to
build a relationship, and it can be easy to be frozen out if
you run afoul of a particular official or the government's
plans. In Burren/ENI's case, the problem is especially
serious, since the government believes Burren has sought to
profit at the government's expense. It may take some time
for ENI officials to do the necessary repair work and to
convince Turkmenistan's hydrocarbon officials that they are
here for the long haul. END COMMENT.
HOAGLAND
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PREL ECON EPET TX
SUBJECT: TURKMENISTAN: ITALIAN ENVOY ADMITS ENI IN HOT
WATER OVER BURREN DEAL
1. (U) Senistive but unclassified. Not for public Internet.
2. (SBU) Italian MFA Coordinator and Special Envoy for
Central Asia Paolo Serpi met March 20 with the Charge to
discuss Serpi's most recent visit. He said he had come to
Ashgabat to sign an agreement on cooperation between the two
foreign ministries. He said he normally deals directly with
Deputy FM Hajiyev, who last visited Rome in September 2007,
but has also met with officials from the Central Bank and the
Ministry of Economy.
ENI AND BURREN
3. (SBU) Serpi said Italian companies are trying to enter
Turkmenistan's market within the framework of the EU strategy
for Central Asia. ENI, not satisfied with its attempts to
break into the market, bought Burren which was already here.
Serpi confirmed that the Turkmenistan government was angry
that Burren sold itself to ENI. The result has been that no
ENI officials have received visas to Turkmenistan since the
sale. Consequently, employees of the former Burren have had
to continue to run the company. Serpi said that on this
visit he has tried to "smooth things over" with Turkmenistan
officials. ENI is an Italian state enterprise, so the
Italian government feels some responsibility. However, Serpi
said, he did what he could to soothe Turkmenistan
government's ruffled feathers. Now, it would be up to ENI to
do the rest.
4. (SBU) COMMENT: It can be difficult to do business in
Turkmenistan for foreign companies. It takes a long time to
build a relationship, and it can be easy to be frozen out if
you run afoul of a particular official or the government's
plans. In Burren/ENI's case, the problem is especially
serious, since the government believes Burren has sought to
profit at the government's expense. It may take some time
for ENI officials to do the necessary repair work and to
convince Turkmenistan's hydrocarbon officials that they are
here for the long haul. END COMMENT.
HOAGLAND