TURKMENISTAN: RUMORS OF VISA TROUBLES AS CITIBANK

C O N F I D E N T I A L ASHGABAT 000663 SIPDIS STATE FOR SCA/CEN, EEB E.O. 12958: DECL: 05/27/2019 TAGS: PREL EFIN CVIS EXIM TX AZ TU SUBJECT: TURKMENISTAN: RUMORS OF VISA TROUBLES AS CITIBANK GETS SERIOUS ABOUT FINDING BUSINESS REF: 08 ASHGABAT 1056 Classified By: Charge Richard Miles, reasons 1.4 (B) and (D). ¶1. (C) The Relationship Manager of Citibank's Central Asia and Transcaucasia Department, Sinan Tan (please protect), said in a meeting on May 14 that he was meeting with representatives of the European Bank for Reconstruction and Development, Vneshekonombank, Senagatbank, and Turkmenbashybank. For the first time, the Central Bank turned down his request for a meeting, citing lack of time due to a busy schedule. Tan had intended to introduce Juma Ahmadzade, who would henceforth cover Turkmenistan and Georgia from Citibank's Baku office. Tan and Ahmadzade applied for visas at the same time, but Ahmadzade's application was rejected -- for unspecified reasons, as usual -- and Vneshekonombank also confirmed to Tan that Ahmadzade would not receive a visa. Tan said that Ahmadzade was assigned to cover Turkmenistan because Citibank realized that the language barrier for Turkish nationals covering Turkmenistan out of Istanbul was a major stumbling block to opening up new business in Turkmenistan. He and his colleagues often found themselves having to explain products to decision makers in Turkmen organizations who did not speak English. Tan said that Citibank would have to rethink its strategy for finding new business in Turkmenistan if Ahmadzade could not obtain Turkmen visas at this point or in the future. This is a distinct possibility since one rejection is generally a sign that a person will never receive a visa. ¶2. (C) Tan said that Citibank wanted to open lines of credit during his last visit in August 2008 (reftel),but the timing was bad for Citibank because of the international financial crisis. Currently, Citibank only has the ability to transact a cash business in Turkmenistan, and provides correspondent banking services to Vneshekonombank and the Central Bank. Tan said that Citibank might be able to enter into some transactions for Turkmenistan with EXIM Bank, if Citibank can find the right kind of Letter of Credit business to present to EXIM Bank. He also said that if the Treasury of Turkmenistan was willing to complete a sovereign transaction guarantee, Citibank might be able to conduct such transactions with EXIM Bank, Overseas Private Investment Corporation, and other export credit agencies. He said that U.S. companies prefer Letters of Credit issued by U.S. banks, which would then open the door to an increase in trade. ¶3. (SBU) COMMENT: Citibank is serious about the Turkmen market. Tan added that he would like to organize a visit for the bank's senior officials -- including the CEO for Europe -- to Turkmenistan, since they would be in the region for a banking event in fall 2009. However, the overcomplicated visa regime remains a serious barrier to commerce with other countries. END COMMENT. MILES