Identifier
Created
Classification
Origin
08ASHGABAT683
2008-05-29 11:50:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN ANNOUNCES AMENDMENTS TO BUSINESS

Tags:  PREL ECON EFIN TX 
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P 291150Z MAY 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0896
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
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RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
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RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2563
C O N F I D E N T I A L ASHGABAT 000683 

SIPDIS

STATE FOR SCA/CEN, EEB
STATE PLEASE PASS TO USTDA DAN STEIN
TREASURY FOR BAKER/LANIER

E.O. 12958: DECL: 05/29/2018
TAGS: PREL ECON EFIN TX
SUBJECT: TURKMENISTAN ANNOUNCES AMENDMENTS TO BUSINESS
REGISTRATION LAW


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

C O N F I D E N T I A L ASHGABAT 000683

SIPDIS

STATE FOR SCA/CEN, EEB
STATE PLEASE PASS TO USTDA DAN STEIN
TREASURY FOR BAKER/LANIER

E.O. 12958: DECL: 05/29/2018
TAGS: PREL ECON EFIN TX
SUBJECT: TURKMENISTAN ANNOUNCES AMENDMENTS TO BUSINESS
REGISTRATION LAW


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


1. (U) Official Russian-language government newspaper,
"Neytralniy Turkmenistan," published on May 12 amendments to
the "Law on Licensing Businesses," originally published on
June 14, 1999. Several days later, an article entitled "Your
license" explained that substantive changes were made to
Article 18, which lists the types of businesses that are
eligible for licensing, which now will include food
manufacturers and processors. The law seeks to improve
protection and "elevate the culture of service" to consumers
-- in other words, the law is putting into place a
certification process that will ensure that food is processed
in a hygienic and sanitary method.


2. (C) While one local tour agency operator was glad to hear
about the amendments -- he said that he thought that it would
open up new opportunities and options for his business
operations -- others are not so optimistic. A successful
importer of tires from India and Russia who lives in the
upscale neighborhood of Berzengi feels that this initiative
is creating more bureaucracy that will only enhance
bribe-taking opportunities for certain government employees.
A number of local observers point out that new regulations
create new opportunities for rent-seeking.


3. (SBU) COMMENT: The true test of the amendments'
effectiveness will lie in implementation. If implemented
fairly and correctly, they could make it easier to establish
and run small and medium-sized businesses. END COMMENT.
HOAGLAND

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