Identifier
Created
Classification
Origin
09ASHGABAT255
2009-02-24 11:43:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: CULTURAL NORMS IMPACT BUSINESS
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C O N F I D E N T I A L ASHGABAT 000255
SIPDIS
SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 02/23/2019
TAGS: PGOV EINV ENRG UN TX TU
SUBJECT: TURKMENISTAN: CULTURAL NORMS IMPACT BUSINESS
PROSPECTS FOR FOREIGN COMPANIES
Classified By: Charge Richard Miles for reasons 1.4 (b) and (d).
C O N F I D E N T I A L ASHGABAT 000255
SIPDIS
SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 02/23/2019
TAGS: PGOV EINV ENRG UN TX TU
SUBJECT: TURKMENISTAN: CULTURAL NORMS IMPACT BUSINESS
PROSPECTS FOR FOREIGN COMPANIES
Classified By: Charge Richard Miles for reasons 1.4 (b) and (d).
1. (C) The Amcit General Manager at Bertling Logistics in
Ashgabat talked with Political Officers on February 18 about
how foreign companies get their feet in the door with the
Turkmen Government. He argued that having the support of
high-level government officials from a foreign company's home
country is critical. He expressed doubt whether many foreign
companies had succeeded in Turkmenistan without their
Governments' officials frequently meeting with Turkmen
officials and representing the companies to the Turkmen
Government. The Bertling General Manager said the
introduction of a foreign company to Turkmen officials has to
happen as part of a "high-ranking package." The reason this
is important, he claimed, is that in the Turkmen culture, as
a Turkic culture, introductions and major business must be
conducted "boss to boss" at the highest level. The "bosses"
must hit it off and develop a level of trust and
understanding before the more specific details of a business
opportunity can be discussed among mid-level representatives.
2. (C) For example, Turkish businessman Ahmet Calik became
a close friend and trusted advisor to former President
Niyazov in the 1990s. That occurred after Calik came with a
Turkish Government delegation led by President Turgut Ozal,
the Bertling General Manager said. Calik has continued to be
part of Turkish commercial delegations after Berdimuhamedov
became President, and he still has influence and strong
inside connections in the Turkmen Government, partially
because he,s recognized here as an astute businessman, added
our contact.
3. (C) Our contact claimed that having strong government
support was key to the success of another company, Worldwide
Construction, getting its foot in the door for both
construction work and health care-related work. He said that
when Berdimuhamedov went to New York in September 2007, the
U.S. Government organized meetings between the visiting
leader and U.S. companies seeking to enter the Turkmen
market. The company got its introduction to the President,
and within a year and a half had opened an office in Ashgabat
and was registered. Our contact claimed that another element
key to Worldwide's success was its presentation of a Cadillac
Escalade to Berdimuhamedov in 2008.
4. (C) COMMENT: The Bertling General Manager's insights
are interesting, partly because of his experience living and
working in Turkmenistan for so long, but also because he is
himself a Turk. If his assessments are true, then it would
seem that those who adapt to the Turkic cultural model are
those most likely to succeed. He provides a logical argument
for the idea that firm and visible government support is an
important key to establishing a relationship with the Turkmen
Government and doing business here successfully. END
COMMENT.
MILES
SIPDIS
SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 02/23/2019
TAGS: PGOV EINV ENRG UN TX TU
SUBJECT: TURKMENISTAN: CULTURAL NORMS IMPACT BUSINESS
PROSPECTS FOR FOREIGN COMPANIES
Classified By: Charge Richard Miles for reasons 1.4 (b) and (d).
1. (C) The Amcit General Manager at Bertling Logistics in
Ashgabat talked with Political Officers on February 18 about
how foreign companies get their feet in the door with the
Turkmen Government. He argued that having the support of
high-level government officials from a foreign company's home
country is critical. He expressed doubt whether many foreign
companies had succeeded in Turkmenistan without their
Governments' officials frequently meeting with Turkmen
officials and representing the companies to the Turkmen
Government. The Bertling General Manager said the
introduction of a foreign company to Turkmen officials has to
happen as part of a "high-ranking package." The reason this
is important, he claimed, is that in the Turkmen culture, as
a Turkic culture, introductions and major business must be
conducted "boss to boss" at the highest level. The "bosses"
must hit it off and develop a level of trust and
understanding before the more specific details of a business
opportunity can be discussed among mid-level representatives.
2. (C) For example, Turkish businessman Ahmet Calik became
a close friend and trusted advisor to former President
Niyazov in the 1990s. That occurred after Calik came with a
Turkish Government delegation led by President Turgut Ozal,
the Bertling General Manager said. Calik has continued to be
part of Turkish commercial delegations after Berdimuhamedov
became President, and he still has influence and strong
inside connections in the Turkmen Government, partially
because he,s recognized here as an astute businessman, added
our contact.
3. (C) Our contact claimed that having strong government
support was key to the success of another company, Worldwide
Construction, getting its foot in the door for both
construction work and health care-related work. He said that
when Berdimuhamedov went to New York in September 2007, the
U.S. Government organized meetings between the visiting
leader and U.S. companies seeking to enter the Turkmen
market. The company got its introduction to the President,
and within a year and a half had opened an office in Ashgabat
and was registered. Our contact claimed that another element
key to Worldwide's success was its presentation of a Cadillac
Escalade to Berdimuhamedov in 2008.
4. (C) COMMENT: The Bertling General Manager's insights
are interesting, partly because of his experience living and
working in Turkmenistan for so long, but also because he is
himself a Turk. If his assessments are true, then it would
seem that those who adapt to the Turkic cultural model are
those most likely to succeed. He provides a logical argument
for the idea that firm and visible government support is an
important key to establishing a relationship with the Turkmen
Government and doing business here successfully. END
COMMENT.
MILES