Identifier
Created
Classification
Origin
08ASHGABAT439
2008-04-09 06:28:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN: INDIA SEEKING TO REINVIGORATE ITS

Tags:  PGOV PREL ECON EPET IN TX 
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UNCLAS SECTION 01 OF 02 ASHGABAT 000439 

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E.O. 12958: N/A
TAGS: PGOV PREL ECON EPET IN TX
SUBJECT: TURKMENISTAN: INDIA SEEKING TO REINVIGORATE ITS
RELATIONSHIP

UNCLAS SECTION 01 OF 02 ASHGABAT 000439

SIPDIS

SENSITIVE
SIPDIS

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

E.O. 12958: N/A
TAGS: PGOV PREL ECON EPET IN TX
SUBJECT: TURKMENISTAN: INDIA SEEKING TO REINVIGORATE ITS
RELATIONSHIP


1. (SBU) Sensitive but unclassified. Not for public
Internet.


2. (SBU) SUMMARY: India and Turkmenistan took yet another
step toward reenergizing their bilateral relationship with
the April 4-6 visit of India's Vice President Hamid Ansari to
Turkmenistan. During the visit, Turkmenistan's President
Berdimuhamedov threw his support behind India's inclusion in
the Trans-Afghanistan pipeline (TAPI) consortium. The two
countries signed only one document, a memorandum of
understanding on energy cooperation that establishes a basis
for possible expansion of Indian energy companies into
Turkmenistan. However, they discussed an additional seven or
eight cooperation agreements that would substantially broaden
bilateral cooperation and that could be pulled together in
time for a Berdimuhamedov visit to New Delhi, which will
probably take place before October. With both sides
apparently eager to take their relationship to a new level,
the prospects for increased engagement appear positive. END
SUMMARY.


3. (SBU) India Vice President Hamid Ansari's April 4-6 visit
to Turkmenistan was part of an Indian effort to restart a
relationship largely put on hold since the late 1990's,
according to the Indian Deputy Chief of Mission, Binaya
Srikanta Pradhan. The visit followed Turkmenistan Deputy
Prime Minister/Foreign Minister Rashid Meredov's successful
January 20-22 visit to New Delhi. Ansari, an experienced
career diplomat, insisted that his meetings with President
Berdimuhamedov and other officials be heavy in substance, and
the two sides discussed a new plan for comprehensive
engagement. The next step will be a visit by Turkmenistan's
President Gurbanguly Berdimuhamedov to New Delhi sometime
before October 2008.

MOU LEAVES DOOR OPEN TO INDIAN INVOLVEMENT IN TAPI


4. (SBU) The two sides signed an energy memorandum of
understanding (MOU) that has been under negotiation for two
years. The MOU opens the possibility for Indian companies to

work with Turkmen firms on several energy projects that focus
on oil exploration and gas pipeline construction. Pradhan
reported that Ansari urged the Government of Turkmenistan to
give the Oil and Natural Gas Corporation (ONGC),India's top
petroleum company, a contract to help build or rebuild a
pipeline -- either the Central Asian-Center pipeline, a
portion of the new Turkmenistan-to-China pipeline, or a
portion of the Caspian Littoral pipeline. Indian firms are
also examinining the possibility of producing compressed
natural gas (CNG) or liquified natural gas (LNG),according
to Pradhan.

...BUT BOTH SIDES ACKNOWLEDGE "IMPEDIMENTS"


5. (SBU) The MOU also lays the groundwork for Indian
companies to play a significant role in producing the natural
gas in Turkmenistan that will someday be delivered via the
Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline to
South Asia, though Pradhan characterized this as a
"long-term, strategic" objective. Turkmenistan threw its
support behind India's bid to join the TAPI consortium -- in
time for the TAPI meeting in Islamabad later this month.
However, Vice President Ansari refused to answer press
questions on the current status of the TAPI pipeline, and
would only say that technical discussions were continuing.
Although both Berdimuhamedov and Vice President Ansari were
guarded in their commentaries about TAPI, they both

ASHGABAT 00000439 002 OF 002


acknowledged there were "impediments" to the project getting
off the ground.


6. (SBU) While the media reported that ONGC wants an onshore
production sharing agreement at a discovered field similar to
what the Chinese have, Pradhan reported that Berdimuhamedov
and other Turkmen officials were adamant about not letting
ONGC work onshore. ONGC is also exploring the possibility of
signing an agreement to work offshore Caspian blocks 11 and
12 jointly with the German petroleum company, Wintershall.

ROUNDING OUT THE RELATIONSHIP


7. (SBU) However, the two sides actually spent more time
discussing a number of agreements that are being prepared for
Berdimuhamedov's visit to New Delhi, including an agreement
on trade and economic relations that will allow Indian
automobile, truck, and tractor companies to market their
products in Turkmenistan; a "comprehensive" cultural exchange
agreement for 2008-2010; and an education exchange agreement
to strengthen cooperation between Indian and Turkmen
universities. Ansari also visited Mary City -- not, as
Itar-Tass claimed, to visit the massive Dovletabad gas field
that initially had been earmarked for the TAPI pipeline (but
whose gas is now being exported to Russia),but rather, to
sightsee at the Mary municipal museum and the ancient
historical site of Merv.


8. (SBU) COMMENT: Even with TAPI on hold, India has much to
gain from rebuilding its relationship with Turkmenistan.
This should be relatively straightforward: the relationship
seems to have gone into hibernation more because of inertia
than because of any series of incidents. And with
Berdimuhamedov seeking foreign investment -- and Indian
businessmen apparently willing to direct at least some of
their funds toward Turkmenistan -- the prospects for
increased engagement appear positive. END COMMENT.
HOAGLAND