INITIAL READOUT OF TURKMEN PRESIDENT

C O N F I D E N T I A L SECTION 01 OF 02 BAKU 000482

SIPDIS

E.O. 12958: DECL: 05/23/2018
TAGS: PGOV PREL AJ ENRG TX
SUBJECT: INITIAL READOUT OF TURKMEN PRESIDENT
BERDIMUHAMEDOV'S VISIT TO BAKU

Classified By: Pol/Econ Chief Joan Polaschik per 1.4 (b,d)


1. (C) SUMMARY: Turkmenistan President Berdimuhamedov's May
19-20 visit to Baku was a significant step in the ongoing
improvement of bilateral relations. According to SOCAR
President Abdullayev, although the two heads of state seems
to have reached no specific agreement on offshore energy
development, the visit set the stage for ongoing cooperation
in this regard. Azerbaijani Ambassador to the U.S. Yashar
Aliyev said that GOAJ officials were impressed by the Turkmen
President, and now that the Turkmen EMBASSY is open in Baku,
it expects follow-up on this historic visit to proceed more
rapidly. END SUMMARY.


2. (SBU) Turkmenistan President Berdimuhamedov's May 19-20
official visit to Baku was a significant event in bilateral
relations. In his press comments, President Aliyev
emphasized the visit's importance, referring to it as
"historic" and the start of a "qualitatively new" era in
relations between the two states. According to press, during
their one-on-one meeting Aliyev and Berdimuhamedov discussed
energy security, transportation, regional security, and the
political status of the Caspian Sea. According to
Berdimuhamedov's public comments, energy security was the
dominant topic, and although the press has not indicated that
the construction of a Trans-Caspian pipeline was discussed,
the Turkmenistan President stressed that cooperation between
Azerbaijan and Turkmenistan on transportation issues could
open "foreseeable horizons for changing the whole
geo-economic map" in the region. Berdimuhamedov also
emphasized the need to continue talks on the delimitation of
the Caspian Sea. The two delegations signed six
inter-governmental agreements on economic matters.

ENERGY: A GOOD FIRST STEP
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3. (C) In a May 23 discussion with the Ambassador, SOCAR
President Rovnaq Abdullayev said that he was out of the
country and hence unable to participate in the visit. He had
been briefed afterwards on the visit. According to
Abdullayev, the two Heads of State had a productive
one-on-one meeting, although Berdimuhamedov "wasn't ready to
talk energy." Abdullayev said that this hesitance was
natural - "it wouldn't be proper to do everything all at
once." Nonetheless, Abdullayev deemed the visit an important
first step, pointing out that the Turkmen press used to cite
Azerbaijan as an "enemy," but now it was being referred to as
Turkmenistan's friend.


4. (C) Abdullayev added that he had helped "prepare the
ground" for this meeting during the late April visit of
Turkmenistan Executive Director of the Presidential
Administration State Agency for Management and Utilization of
Hydrocarbon Resources Bayrammurad Muradov. Muradov was in
Baku for the Second Caspian Oil and Gas, Trade and Transport
Conference and Abdullayev commented that Muradov's attendance
and presentation at this event itself was a significant
milestone in bilateral relations. During this visit,
Abdullayev and Muradov had a meeting and long discussion
about joint GOTX-GOAJ development of hydrocarbon resources.
Abdullayev told Muradov that "having options" for energy
exports gives the GOTX "more leverage" in its relations with
Russia, pointing out that even the threat of bilateral
cooperation forced Russia into raising the purchase price for
GOTX gas. He told Muradov that the GOTX could develop its
resources more quickly in conjunction with the GOAJ, to the
profit of both. He specifically mentioned the possibility of
building a gas pipeline "connector" for GOTX offshore gas,
connecting GOTX offshore gas fields to existing offshore GOAJ
pipeline networks, so that the GOTX could have another,
non-Russian, export route to the West. Abdullayev told the
Ambassador that given Muradov's position he didn't say much
in response, but Abdullayev was sure that he would take this
information back to share with Turkmen President
Berdimuhamedov. SOCAR also gave Muradov a tour of the
Sangachal Terminal, the Deepwater Jacket Construction
Factory, and other energy facilities, seeking to use
Azerbaijan as an example of what Turkmenistan could do in its
hydrocarbon sector.


5. (C) Other GOAJ officials stressed that Berdimuhamedov's
visit was an important step forward in the bilateral
relationship. Azerbaijani Ambassador to the U.S. Yashar
Aliyev told the Ambassador that the GOAJ was buoyed by the

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"very positive, very successful" visit. According to
Ambassador Aliyev, GOAJ officials were impressed by
Berdimuhamedov, particularly his savvy and interest.
Ambassador Aliyev said that with the Turkmenistan EMBASSY in
Baku now open, the GOAJ expects there to be intensive follow
up from the visit. Presidential Advisor Elnur Aslanov
separately commented that Berdimuhamedov's visit turned the
page on a very difficult chapter in Azerbaijan's relationship
with Turkmenistan. Late President Niyazov had prevented
Caspian delimitation and threatened Azerbaijan on numerous
occasions. With President Berdimuhamedov, "everything is
changing." Azerbaijan believes there is great potential to
bring Turkmenistan into the East-West energy corridor, much
more so than Kazakhstan, which for geostrategic reasons most
likely will retain close ties to Russia.

COMMENT
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6. (C) Immediately following Berdimuhamedov's visit,
President Aliyev and Foreign Minister Mammadyarov departed
for the Kyiv energy summit. We have requested meetings in
both the Presidential Apparat and the Foreign Ministry and
will report further details of the visit and the Kyiv energy
summit septel.
DERSE