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IdentifierCreatedClassificationOrigin
08ASHGABAT728 2008-06-06 15:37:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ashgabat
Cable title:  

TURKMENISTAN: 2008 REPORT ON INVESTMENT DISPUTES

Tags:   PGOV PREL BTIO ENRG EINV CASC OPIC TX 
pdf how-to read a cable
VZCZCXRO3275
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0728 1581537
ZNR UUUUU ZZH
P 061537Z JUN 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0958
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 3878
RUEHBJ/AMEMBASSY BEIJING 1695
RUEHKO/AMEMBASSY TOKYO 1562
RUEHIT/AMCONSUL ISTANBUL 2131
RHEHNSC/NSC WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2582
					  UNCLAS ASHGABAT 000728 

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB
DEPT FOR EB/IFD/OIA, L/CID
ALMATY FOR STUART SCHAAG

E.O. 12958: N/A
TAGS: PGOV PREL BTIO ENRG EINV CASC OPIC TX
SUBJECT: TURKMENISTAN: 2008 REPORT ON INVESTMENT DISPUTES
AND EXPROPRIATION CLAIMS SUBMISSION

REF: STATE 43784



1. (U) a. Claimant A

b. 2004:

c. Claimant A concluded a contract on purchasing 3,000 tons
of K-354 type carbon black at a price of $320.00 per ton with
the State Concern "Turkmen Fertilizers and Chemistry" in
November 2004. During 2005, the selling organization failed
to deliver the shipment to Claimant A on time, although the
payment for the bulk of the purchase had been made and
special sacks had been delivered to facilitate
transportation. After Claimant A filed an advocacy request
in December 2005, the Embassy sent a diplomatic note to the
Government of Turkmenistan requesting the seller to expedite
the delivery. After the embassy sent the note, the seller in
early 2006 released the shipment, except for 333.5 tons, for
which the payment process had been delayed. (Comment:
Although the payment had been made in early 2006, Claimant A
transferred the payment for the remaining 333.5 tons toward a
different deal at the unofficial request of the director of
"Turkmen Fertilizers and Chemistry" and in exchange for the
director's promise to sell the remaining amount of carbon
black at a price of USD 1,050.00. The director of Turkmen
Fertilizers and Chemistry was arrested for embezzlement in
late 2006. End Comment.) However, the seller refused to
sell the remaining 333.5 tons, claiming that Claimant A had
to pay a new price of USD 1,900.00 per ton because the
payment for the remaining part of the shipment was not made
earlier. The Embassy sent a diplomatic note on June 7, 2006,
conveying Claimant A's letter to the Government of
Turkmenistan requesting to facilitate the purchase of the
remainder of the carbon black. In September 2006 Claimant A
requested that post stop intervention on its behalf in
pursuing any unfulfilled contracts. The company president
said in an e-mail in June 2008 that the company does not have
any outstanding issues.

2.(U) a. Claimant B

b. 2007:

c. Claimant B signed a contract for International Public
Switched Telephone Service (speed digital circuits and voice
grade circuits) with the Ministry of Communications of
Turkmenistan on May 27, 1998. Claimant B claims an
accumulated unsettled debt of $1,578,684. Despite numerous
efforts -- according to Claimant B's collection agency -- to
negotiate Claimant B's claim with the Communications
Ministry, the dispute remained unresolved. At different
times ministry staff either denied the contract, or claimed
they had not received monthly billing notices. In June the
Embassy telephoned the ministry in an attempt to clarify its
reasons for not paying. The Ministry acknowledged its
contract with Claimant B and that it has outstanding debt to
Claimant B, but said it disagrees on the amount it owes. The
Ministry claimed that it does not have all the traffic
reports (monthly billing notices) from Claimant B and that
all reports (invoices) should be reconciled by the two
parties in order for the Ministry to pay. The Embassy
requested through Claimant B's collection agency that
Claimant B supply all monthly billing notices. To date,
Claimant B has not responded with the requested documentation.



3. (SBU) Claimant A: Amcom LLC

Claimant B: Verizon/MCI.
HOAGLAND