TURKMENISTAN HOLDS PIPELINE SECURITY CONFERENCE

UNCLAS SECTION 01 OF 02 ASHGABAT 000565

SENSITIVE

SIPDIS

STATE FOR SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: N/A
TAGS: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN HOLDS PIPELINE SECURITY CONFERENCE

REF: ASHGABAT 462

ASHGABAT 00000565 001.2 OF 002



1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) SUMMARY: On April 23-24, the Turkmen Government held a
conference on "Reliable and Stable Transit of Energy and Its Role in
Ensuring Sustainable Development and International Development."
The conference was attended by and was designed to provide a forum
for representatives of international organizations, governments,
research institutes, and private businesses to discuss a wide
spectrum of issues that may contribute to ensuring a more stable and
secure transit of energy to the global market. END SUMMARY.


3. (SBU) President Berdimuhamedov opened the conference with a
15-minute speech. During the speech, Berdimuhamedov criticized the
current system of international energy supplies, characterizing it
as "one of the most vulnerable parts of the global economy" and
noting that this vulnerability is caused by political instability,
absence of internationally recognized regulations, inadequate
infrastructure, and lopsided pipelines geography. He spoke against
the politicization of energy supply issues and using them as a tool
for achieving political and corporate goals, warning that such
methods will prove ineffective in the long-run. President
Berdimuhamedov proposed that the UN consider establishing an expert
group that would work on developing international legal norms to
regulate relations in the energy sector. He also emphasized that
the UN can play a crucial role in ensuring security, stability, and
reliability of energy transit. The President also emphasized that
diversification of energy routes is one of the key elements of
ensuring energy security.


4. (SBU) Among other high-ranking speakers representing the
international community were UN Under Secretary-General for Economic
and Social Affairs, Sha Zukang, OSCE Secretary General, Mark Perren
de Brishambo, Energy Charter Secretary General, Andre Mernier,
Secretary General of the Economic Cooperation Organization (ECO),
Khurshid Anwar, Secretary General of the Shanghai Cooperation
Organization (SCO),Bolat Nurgaliyev, CIS Executive Secretary,
Anatoly Dron, Deputy Prime Minister of Russia, Igor Sechin,
ministers of energy of Central Asian, Middle Eastern, and Eastern
European countries. The conference organizers also demonstrated a
recorded video address by President of the European Commission, Jose
Manuel Barroso. Among Turkmen high-ranking speakers were Deputy
Chairman of the Cabinet of Ministers, Tachberdi Tagyev, Director of
the State Agency for Use and Management of Hydrocarbon Resources,
Yagshygeldi Kakayev, and Chairman of Turkmengaz State Concern,
Baymyrat Hojamuhammedov. All the speakers were supportive of the
idea that the international community should make concerted efforts
to ensure a more reliable and stable transit of energy, although the
approaches to achieving this goal proposed by the speakers differed
depending on the interests of their respective countries or
organizations.


5. (SBU) Although there were three question and answer sessions in
the agenda, the organizers cancelled all of them, because the
conference was running behind schedule. The conference concluded
with the issuance of a declaration that emphasized the advisability
of developing a multilateral document that would regulate issues
arising from the relations in the energy sector and including a
request to consider setting up an experts group that would work out
recommendations on developing such a document.


6. (SBU) COMMENT: It was much anticipated that the Turkmen
Government would address the continuing gas row with Gazprom
(reftel) during the conference, but this issue was not mentioned
directly by any of the speakers. Still it should be noted that
Russian Deputy Prime Minister, Igor Sechin, during his speech,
passed to the conference organizers a draft model agreement on

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mitigating consequences of emergency situations along transit
routes. Although the draft agreement was not mentioned in the
conference statement, it might be connected with the current gas
stand-off between Turkmenistan and Gazprom.


7. (SBU) COMMENT CONTINUED: President Berdimuhammedov, during his
speech at the conference, noted that diversification of hydrocarbon
supplies to new regions is not only about commercial profits, but
also is important for balancing the interests of all energy market
players. This statement might mean that Turkmenistan is open to
cooperation with Europe in the energy sector, especially taking into
account that the day before the conference, the European Parliament
approved the long-pending Interim Trade Agreement with Turkmenistan,
and the EU Ambassador residing in Almaty, Kazakhstan, presented his
credentials to President Berdimuhamedov. This is notable because,
according to Turkmen protocol, ambassadors residing outside of
Turkmenistan present their credentials to the Speaker of Parliament
and not the President. END COMMENT.

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