Identifier
Created
Classification
Origin
09ASHGABAT626
2009-05-15 12:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN HOSTS CURIOUS BUSINESS EXHIBITION
how-toVZCZCXRO5427 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHAH #0626 1351225 ZNR UUUUU ZZH P 151225Z MAY 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 2833 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 5203 RUEHBJ/AMEMBASSY BEIJING 2944 RUEHKO/AMEMBASSY TOKYO 2809 RUEHIT/AMCONSUL ISTANBUL 3447 RUCNDT/USMISSION USUN NEW YORK 1004 RHMFIUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 3560 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 000626
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: PGOV EINV EIND TX
SUBJECT: TURKMENISTAN HOSTS CURIOUS BUSINESS EXHIBITION
UNCLAS ASHGABAT 000626
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: PGOV EINV EIND TX
SUBJECT: TURKMENISTAN HOSTS CURIOUS BUSINESS EXHIBITION
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: On May 13 - 15, the Turkmen Government hosted
another well-publicized exhibition devoted to private and government
commercial enterprises. Both state enterprises and foreign private
companies were represented, but it was not clear what the exhibition
was designed to do. Many of the private enterprises represented
were foreign companies that have been in Turkmenistan for years.
Some foreign companies seeking access to the Turkmen market,
however, were also represented. Although the exhibition tried to
reflect an image of a healthy and fast-developing economy, the
presence of so many state-controlled enterprises was a stark
reminder of the lack of privatization here. END SUMMARY.
3. (SBU) The Government of Turkmenistan hosted an annual
international exhibition mysteriously titled "White City Ashgabat"
the week of May 11. The exhibition gathered local and foreign
producers and service providers doing business in Turkmenistan in
various sectors ranging from employee recruitment services to
construction. All the Deputy Chairmen of the Cabinet of Ministers,
other high-ranking government officials, and the diplomatic
community attended the opening ceremony of the exhibition.
4. (SBU) Most of the Turkmen ministries, enterprises and agencies
presented their products and services at the exhibition. The
participation in the exhibition was seemingly mandatory for them and
did not appear to have any marketing or business development value.
Local private businesses participating in the exhibition were mostly
those involved in service industries, food processing and
production, textile and carpet making, and distributorship. There
also were four Turkmen construction companies that have recently won
large-scale government contracts, thus making an entry into a
construction market normally dominated by foreign companies.
5. (SBU) Foreign businesses at the exhibition were mostly those
that have been in Turkmenistan for a long time and have strong ties
with the Government, such as the Turkish construction companies
Polimeks, Erku, Kotam Enterprises, Sehil Insaat, Bahar Insaat, Belda
Insaat, and the French company, Bouygues, all of whom were
reportedly "strongly encouraged" to participate in the exhibition.
The Iranian participation was limited to two companies: Iran Khodro,
a bus and car producer that has been active in Turkmenistan since
the mid - 90s supplying city buses to the Ashgabat municipality, and
Negam Seram, a ceramic tiles (for covering bathroom and kitchen
walls) distributor that has been successfully selling Iranian-made
tiles to the private sector since 2004. Mercedes, Toyota, Skoda and
Peugeot car dealers also exhibited at the event. Several foreign
companies used the exhibition as a way to enter the Turkmen market.
The most noteworthy of them were the Russian "R Rainbow Engineering
Systems" company, which seeks to sell electricity and heat
generators that use traditional fuels and solar energy, and the
Latvian SMP Bank, which seeks to offer business banking services to
Turkmen entrepreneurs.
6. (SBU) COMMENT: This is the eighth year this exhibition has
taken place, and is likely part of the Turkmenistan Government's
efforts to improve the country's image and promote the appearance of
an open and transparent national economy. But ironically, the scope
of participants demonstrates the real state of the economy, where
virtually everything is controlled by the state, and businesses
compete not for the purpose of providing better products or services
but of influencing decision-makers in the government. Even with
higher-quality products or services, new businesses attempting to
enter the Turkmen market will find it difficult to do so without
securing high-level government support beforehand. END COMMENT.
MILES
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: PGOV EINV EIND TX
SUBJECT: TURKMENISTAN HOSTS CURIOUS BUSINESS EXHIBITION
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: On May 13 - 15, the Turkmen Government hosted
another well-publicized exhibition devoted to private and government
commercial enterprises. Both state enterprises and foreign private
companies were represented, but it was not clear what the exhibition
was designed to do. Many of the private enterprises represented
were foreign companies that have been in Turkmenistan for years.
Some foreign companies seeking access to the Turkmen market,
however, were also represented. Although the exhibition tried to
reflect an image of a healthy and fast-developing economy, the
presence of so many state-controlled enterprises was a stark
reminder of the lack of privatization here. END SUMMARY.
3. (SBU) The Government of Turkmenistan hosted an annual
international exhibition mysteriously titled "White City Ashgabat"
the week of May 11. The exhibition gathered local and foreign
producers and service providers doing business in Turkmenistan in
various sectors ranging from employee recruitment services to
construction. All the Deputy Chairmen of the Cabinet of Ministers,
other high-ranking government officials, and the diplomatic
community attended the opening ceremony of the exhibition.
4. (SBU) Most of the Turkmen ministries, enterprises and agencies
presented their products and services at the exhibition. The
participation in the exhibition was seemingly mandatory for them and
did not appear to have any marketing or business development value.
Local private businesses participating in the exhibition were mostly
those involved in service industries, food processing and
production, textile and carpet making, and distributorship. There
also were four Turkmen construction companies that have recently won
large-scale government contracts, thus making an entry into a
construction market normally dominated by foreign companies.
5. (SBU) Foreign businesses at the exhibition were mostly those
that have been in Turkmenistan for a long time and have strong ties
with the Government, such as the Turkish construction companies
Polimeks, Erku, Kotam Enterprises, Sehil Insaat, Bahar Insaat, Belda
Insaat, and the French company, Bouygues, all of whom were
reportedly "strongly encouraged" to participate in the exhibition.
The Iranian participation was limited to two companies: Iran Khodro,
a bus and car producer that has been active in Turkmenistan since
the mid - 90s supplying city buses to the Ashgabat municipality, and
Negam Seram, a ceramic tiles (for covering bathroom and kitchen
walls) distributor that has been successfully selling Iranian-made
tiles to the private sector since 2004. Mercedes, Toyota, Skoda and
Peugeot car dealers also exhibited at the event. Several foreign
companies used the exhibition as a way to enter the Turkmen market.
The most noteworthy of them were the Russian "R Rainbow Engineering
Systems" company, which seeks to sell electricity and heat
generators that use traditional fuels and solar energy, and the
Latvian SMP Bank, which seeks to offer business banking services to
Turkmen entrepreneurs.
6. (SBU) COMMENT: This is the eighth year this exhibition has
taken place, and is likely part of the Turkmenistan Government's
efforts to improve the country's image and promote the appearance of
an open and transparent national economy. But ironically, the scope
of participants demonstrates the real state of the economy, where
virtually everything is controlled by the state, and businesses
compete not for the purpose of providing better products or services
but of influencing decision-makers in the government. Even with
higher-quality products or services, new businesses attempting to
enter the Turkmen market will find it difficult to do so without
securing high-level government support beforehand. END COMMENT.
MILES