Identifier
Created
Classification
Origin
09ASHGABAT1423
2009-11-06 11:21:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: RUSSIANS SAY GAZPROM NEGOTIATIONS
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C O N F I D E N T I A L ASHGABAT 001423
SIPDIS
STATE FOR SCA/CEN; EEB;
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 11/06/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: RUSSIANS SAY GAZPROM NEGOTIATIONS
"VERY DIFFICULT"
REF: A. ASHGABAT 1320
B. ASHGABAT 1388
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
C O N F I D E N T I A L ASHGABAT 001423
SIPDIS
STATE FOR SCA/CEN; EEB;
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 11/06/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: RUSSIANS SAY GAZPROM NEGOTIATIONS
"VERY DIFFICULT"
REF: A. ASHGABAT 1320
B. ASHGABAT 1388
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) According to Russian Embassy DCM Aleksey Demin,
negotiations between the Russians and the Turkmen over gas
are "very difficult." We met with Demin on November 5 to
discuss the status of the Gazprom negotiations. He told us
that currently the negotiations between Turkmengaz and
Gazprom are being conducted on the level of the two
presidents. He said the issue was discussed when President
Berdimuhamedov and President Medvedev met in Turkmenbashy on
September 13. The two outstanding issues are price and
volume. Demin said that Russian proposals are unacceptable
to the Turkmen, and Turkmen proposals have been unacceptable
to the Russians. Therefore, a resolution is still a ways
away.
2. (C) Demin said Gazprom has had to close some wells in
Russia. He believed the situation at the end of the year and
how cold the winter will be in Europe will influence how
quickly the issue can be resolved. If there is more demand
from the Europeans, the price can reasonably be higher.
3. (C) Demin was not particularly concerned about Deputy
Chairman for Oil and Gas Hojamuhammedov's recent statement
(Ref. A) that Turkmenistan would not allow its gas to be
re-exported. He said that it would be very difficult to
enforce such a rule, because who could really say where gas
purchased from Turkmenistan ends up. Admitting he was "not
an expert" (although his embassy portfolio is oil and gas),
Demin said gas from Turkmenistan goes to Russia, but at that
point, no one would be able to say whether it was Turkmen gas
or gas from Siberia that ends up in Europe.
4. (C) COMMENT. The Russian DCM's comments on gas
negotiations seem to mesh with what we have been hearing from
the Turkmen--the Russians are pushing for a much lower price
and lower volumes, which the Turkmen have equally been
pushing against. For the Turkmen, agreeing to a considerably
lower price would not allow them to save face, and could
negatively affect the GOTX's on-going negotiations with the
Chinese over a price for gas, once the Central Asia-China
pipeline is completed. Although both sides seem to recognize
they still need each other's gas or gas revenues, neither
side seems willing to capitulate on the price just yet. END
COMMENT.
CURRAN
SIPDIS
STATE FOR SCA/CEN; EEB;
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 11/06/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: RUSSIANS SAY GAZPROM NEGOTIATIONS
"VERY DIFFICULT"
REF: A. ASHGABAT 1320
B. ASHGABAT 1388
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) According to Russian Embassy DCM Aleksey Demin,
negotiations between the Russians and the Turkmen over gas
are "very difficult." We met with Demin on November 5 to
discuss the status of the Gazprom negotiations. He told us
that currently the negotiations between Turkmengaz and
Gazprom are being conducted on the level of the two
presidents. He said the issue was discussed when President
Berdimuhamedov and President Medvedev met in Turkmenbashy on
September 13. The two outstanding issues are price and
volume. Demin said that Russian proposals are unacceptable
to the Turkmen, and Turkmen proposals have been unacceptable
to the Russians. Therefore, a resolution is still a ways
away.
2. (C) Demin said Gazprom has had to close some wells in
Russia. He believed the situation at the end of the year and
how cold the winter will be in Europe will influence how
quickly the issue can be resolved. If there is more demand
from the Europeans, the price can reasonably be higher.
3. (C) Demin was not particularly concerned about Deputy
Chairman for Oil and Gas Hojamuhammedov's recent statement
(Ref. A) that Turkmenistan would not allow its gas to be
re-exported. He said that it would be very difficult to
enforce such a rule, because who could really say where gas
purchased from Turkmenistan ends up. Admitting he was "not
an expert" (although his embassy portfolio is oil and gas),
Demin said gas from Turkmenistan goes to Russia, but at that
point, no one would be able to say whether it was Turkmen gas
or gas from Siberia that ends up in Europe.
4. (C) COMMENT. The Russian DCM's comments on gas
negotiations seem to mesh with what we have been hearing from
the Turkmen--the Russians are pushing for a much lower price
and lower volumes, which the Turkmen have equally been
pushing against. For the Turkmen, agreeing to a considerably
lower price would not allow them to save face, and could
negatively affect the GOTX's on-going negotiations with the
Chinese over a price for gas, once the Central Asia-China
pipeline is completed. Although both sides seem to recognize
they still need each other's gas or gas revenues, neither
side seems willing to capitulate on the price just yet. END
COMMENT.
CURRAN