TURKMENISTAN: MORE ON SHAKE-UPS OF ECONOMIC AND

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000479

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB, INR/B

E.O. 12958: DECL: 07/20/2017
TAGS: PGOV PINR EFIN TX
SUBJECT: TURKMENISTAN: MORE ON SHAKE-UPS OF ECONOMIC AND
FINANCIAL LEADERSHIP

REF: A. ASHGABAT 0474


B. 07 ASHGABAT 1246

Classified By: Charge Richard E. Hoagland for reasons 1.4 (B) and (D).


1. (C) SUMMARY: At an extended Cabinet of Ministers meeting
April 14 that included a discussion of economic and financial
reforms (Ref A),President Berdimuhamedov made a number of
personnel changes. According to the well-connected local
representative of the European Bank for Reconstruction and
Development (EBRD),ex-Central Bank Chairman Geldimurat
Abilov has been on his way out for a long time. The incoming
Chairman, former Chairman of the State Bank for Foreign
Economic Relations (Vneshekonombank) Guvanchmurat Goklenov,
is a "total politician" who can be "obstructive" and "not
particularly open." The new Deputy Chairman for economic and
financial issues, former Minister of Finance HojamuratGeldimuradov, has a strong background and will strengthen the
Cabinet. While many of these personnel changes seem to be an
improvement, sacking some ministers may only superficially
resolve problems and in itself will not necessarily lead to
successful reforms. END SUMMARY.

CENTRAL BANK OF TURKMENISTAN


2. (C) At an extended Cabinet of Ministers meeting April 14
that included a discussion of economic and financial reforms,
President Berdimuhamedov fired Central Bank Chairman
Geldimurat Abilov. Rumors that Central Bank Chairman
Geldimurat Abilov would be fired had been current in Ashgabat
for months. According to EBRD local representative Tony
Myron, EBRD President Jean Lemierre said that Abilov was
"cold" in meetings. Myron added that Abilov was often
"sullen," and communicated in an impolite manner to Lemierre
that EBRD's lending rates and terms were not needed in
Turkmenistan.


3. (C) The president appointed Chairman of the State Bank
for Foreign Economic Relations (Vneshekonombank) Guvanchmurat
Goklenov, whose wife is Berdimuhamedov's wife's sister (Ref
B),as the new Central Bank Chairman. In Myron's opinion,
Goklenov is no improvement over Abilov. Myron described
Goklenov as "obstructive," "not particularly open," and a
"total politician." In addition, Goklenov maintained an
unproductive relationship with EBRD in his role at
Vneshekonombank. Myron said that Goklenov refused to sign
some EBRD documentation, because to Goklenov, signing the
papers would have limited Turkmenistan's sovereignty. As
Myron put it, Goklenov's personality exemplifies "arrogance
stemming from a lack of (being in) touch with reality."

NEW DEPUTY CHAIRMAN FOR ECONOMIC ISSUES


4. (C) Minister of Finance Hojamurat Geldimuradov was named
Deputy Chairman for Economic Issues, which will encompass the
Ministries of Finance, Economics and Development, and Welfare
and Social Care. He will also oversee the work of the
Central Bank, Main State Tax Inspectorate, State Customs
Service, Main State Standards Inspectorate, State Insurance
Organization, and State Committee on Statistics. Myron said
that Geldimuradov has a strong background in finance and
suggested that he will strengthen the Cabinet.


5. (C) Hojamuhammet Muhammedov will remain Deputy Chairman
of Agriculture and Textiles, but is losing his economic and
financial portfolio. Myron said that Muhammedov is an
"economic lightweight" who "talks rubbish" and is "not
credible." Muhammedov appears to have quickly shot up the
ranks from the Stock Exchange to a Deputy Chairmanship as a
result of a close relationship with President Berdimuhamedov.
To illustrate Muhammedov's incompetence, Myron mentioned
that he had justified state involvement in a 20-year $100
million marble cutting project supported by foreign

ASHGABAT 00000479 002 OF 002


investors, because the investors "needed state guidance."

DEPUTY CHAIRMAN FOR TRANSPORTATION AND COMMUNICATIONS FIRED


6. (C) Deputy Chairman in charge of Transportation and
Communications Gurbannazar Ashirov was also fired. Deputy
Chairman of Energy, Industry, Construction, and Motor
Transportation Nazarguly Shagubiyev will take over
responsibilities for this area temporarily. Myron added that
rumors that Ashirov would be sacked also had circulated for a
long time (Ashirov had received multiple reprimands from the
president). However, Myron thought that heaping the blame
for lack of progress in the communications sector on Ashirov
was unfair, because Minister of Communications Resulberdi
Hojangubanov remained steadfast in favor of continuing the
monopolization of the cellular network.


7. (C) COMMENT: Goklenov and his aunt, Minister of Textiles
Jemal Goklenova, are two leaders that we know are part of the
extended family of President Berdimuhamedov's wife. Post has
also noticed that three ministers -- Minister of Economy and
Development Gurbanmurat Gurbanmuradov, newly-appointed
Minister of Construction and Construction Materials Industry
Shamuhamet Durdiliyev (to be reported septel),and now Deputy
Chairman Hojamurat Geldimuradov -- come from the Ahal
province village of Bakharly. We will try to find out
whether there is also a familial connection in these cases.
However, sacking ministers may only superficially resolve
problems and in itself will not necessarily lead to
successful reforms. END COMMENT.
HOAGLAND