TURKMENISTAN: DISMISSAL OF TURKMENISTAN'S HIGHEST RANKING

UNCLAS ASHGABAT 000876

SENSITIVE

SIPDIS

STATE FOR SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
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E.O. 12958: N/A
TAGS: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN: DISMISSAL OF TURKMENISTAN'S HIGHEST RANKING
OIL AND GAS OFFICIAL


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


2. (SBU) SUMMARY: During an expanded Cabinet session on July 10,
President Berdimuhamedov announced the dismissal of Tachberdi
Tagyev, the Deputy Chairman of the Cabinet in charge of the oil and
gas industry. Berdimuhamedov cited the "unsatisfactory rate of
development of the oil and gas industry" as the main reason for his
dismissal. Tagyev was given a new appointment to the position of
Director of the Seydi Oil Refinery. Baymyrat Hojamuhammedov, who
served as Chairman of Turkmengaz State Concern, replaced Tagyev as
Deputy Chairman of the Cabinet. END SUMMARY.


3. (SBU) Tachberdi Tagyev is one of the longest serving Turkmen
officials and one of the last remaining officials from the late
President Niyazov's Cabinet. Starting in 2000, he served in the
following capacities: Deputy Chairman of the Turkmen State Oil
Concern, Minister of Oil and Gas Industry and Mineral Resources,
Governor of the oil-rich Balkan province, Director of the
Turkmenbashy Oil Refinery, Chairman of the Turkmengaz State Concern,
and Deputy Chairman of the Cabinet of Ministers. Turkmen oil and
gas sector employees characterize Tagyev as a "production person"
rather than a "paperwork person", emphasizing that he can more
successfully manage production facilities rather than run an office.
They also consider him very skillful at avoiding signing any
documents that might cause him problems and note that he has
survived considerable scrutiny and a number of investigations of his
professional activities. (COMMENT: U.S. energy company reps also
describe Tagyev as very skillful in keeping paper from moving
forward. END COMMENT.)


4. (SBU) Tagyev's replacement, Baymyrat Hojamuhammedov, had not
previously held any high-ranking positions before his unexpected
appointment as Minister of the Oil and Gas Industry and Mineral
Resources in 2007. He moved to the position of Chairman of the
Turkmengaz State Concern in 2008. He has vast experience in gas
trade issues, which he accumulated while working in the Turkmen Oil
and Gas Trade Corporation in 2003 - 2006, and is believed to be a
skillful negotiator, a skill that his predecessor was reportedly
lacking. He has played a key role in conducting the recent gas
sales negotiations with Iran, which resulted in an agreement to
increase gas exports to that country. He also reportedly has very
good relations with President Berdimuhamedov, but there are
conflicting rumors as to when and how he managed to build those
relations.


5. (SBU) COMMENT: Rumors that Tagyev would "soon" be fired have
circulated for at least two years. Why was he fired now? The
information available thus far is insufficient for any definitive
conclusions regarding the actual reasons behind Tagyev's dismissal,
but there are several versions that are worth mentioning. Version
1: The President may have wanted to have "one of his own" in this
key position instead of the Niyazov-era Tagyev. Factors supporting
this version are the fact that Hojamuhammedov has been steadily
moving up the chain of command since the beginning of with
Berdimuhamedov's presidency and that fact that rumors about Tagyev's
dismissal and Hojamuhammedov's appointment began circulating in the
country a few months ago. Version 2: Hojamuhammedov was appointed
in the hope that he will be more effective at a time when
Turkmenistan is trying to move forward with diversifying its energy
exports and has significantly intensified its efforts to achieve
such diversification. Version 3: Berdimuhamedov, on the eve of his
trip to Moscow, needed a scapegoat for the problems with Russia over
gas. END COMMENT

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