UZBEKISTAN: CSTO DEMARCHE AND PUTIN VISIT

C O N F I D E N T I A L TASHKENT 001022 SIPDIS DEPARTMENT FOR SCA DON CAMP AND BRIAN RORAFF E.O. 12958: DECL: 09/02/2018 TAGS: GG PBTS PREL RS UZ SUBJECT: UZBEKISTAN: CSTO DEMARCHE AND PUTIN VISIT REF: STATE 93357 Classified By: Econoff Robert McCutcheon for reasons 1.4 (b, d). ¶1. (C) On Sunday, August 31, we delivered reftel demarche to Ministry of Foreign Affairs Americas Desk Chief Ismat Fayzullaev, who promised to relay it immediately to appropriate officials. Contacted at home on the September 1 Uzbek Independence Day holiday, Fayzullaev said a response had to be formulated "at the highest levels" and that the response would, therefore, not be immediate. We have been unable to reach Fayzullaev today, and we have likewise been unable to reach MFA Americas Department Chief Takhir Mamadjanov. Ambassador Norland raised the demarche with FM Norov at the September 1 Independence Day festivities but received no substantive response. It is becoming clear that we will receive a formal response to our demarche only after the completion of Russian Prime Minister Putin's September 1-2 visit to Tashkent. ¶2. (SBU) At present we know little about the results of Putin's visit beyond what has been reported in press accounts. According to these, PM Putin held talks with both Uzbek President Karimov and Uzbek PM Mirziyayev. These talks centered on economic questions. A Russian-Uzbek Plan of Economic Cooperation through 2012 was signed, and the Russian and Uzbek leaders agreed on the price of Uzbek gas that will be sold to Gazprom in 2009. Putin was quoted as saying "this will be a European pricing formula," which presumably implies market pricing. Russia and Uzbekistan reached agreement to begin construction of a new gas pipeline for the export of Turkmen gas to Russia across Uzbekistan, and Lukoil announced plans to increase its investment up to USD 5 billion in hopes of extracting up to 12 billion cubic meters of natural gas in Uzbekistan. The two sides discussed following through on integrating the Chkalov Aircraft Factory (TAPOiCh) into the Russian United Aircraft Corporation (UAC). (COMMENT: An agreement to integrate TAPOiCh into UAC was reached last winter, but it has not yet been ratified by the GOU. END COMMENT) Finally, Uzbekistan and Russia signed an agreement on space cooperation. ¶3. (SBU) Although Russian press reports prior to Putin's visit indicated the situation in South Ossetia and Abkhazia would be discussed, today's press releases give no hint of the results. ¶4. (C) According to other news items, Putin has left for Karimov's private residence in Durmon for continuing discussions this evening. Reading tea leaves, we notice that the Independence Day notices listed the greetings from Putin first followed by those of the Chinese President and then President Bush. In addition, a web site has printed that FM Norov may visit the United States this fall. We have been aware of this for some time and find it interesting that the information appears in the press the day of Putin's visit. NORLAND