VZCZCXRO2041
PP RUEHAST
DE RUEHAH #0764/01 1991236
ZNR UUUUU ZZH
P 181236Z JUL 06
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 7580
INFO RUCNOSC/OSCE POST COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RHMFIUU/CDR USCENTCOM MACDILL AFB FL//CCJ2/HSE/CCJ5//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC//J5/RUE//
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 ASHGABAT 000764 
 
SIPDIS 
 
STATE FOR SCA/CEN (BICKEL) 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM ECON PINR EPET TX
SUBJECT: NIYAZOV APPOINTS NEW DEPUTY CHAIRMAN FOR OIL AND 
GAS AT JULY 10 CABINET MEETING 
 
 
ASHGABAT 00000764  001.2 OF 003 
 
 
SUMMARY 
------- 
 
¶1.   (SBU) President Niyazov, accompanied by two deputy 
chairmen of the Cabinet of Ministers and the Minister of 
Foreign Affairs, held an expanded Cabinet of Ministers 
meeting on July 10.  The president encouraged brevity with 
the numerous briefings he heard during the edited televised 
meeting that lasted more than three hours.   In addition to 
appointing only the second new Deputy Chairman in over two 
years, Niyazov's agenda included decisions on cultural, 
educational, agricultural, pension, oil and gas and 
budgetary issues, and an agenda for the annual Halk 
Maslahaty (People's Council) meeting on October 25.  End 
Summary. 
 
Personnel Issues 
---------------- 
 
¶2.    (SBU) Taking advantage of the Wheat Harvest Festival 
to request the attendance of the entire government, down to 
the district governor level, Niyazov seated his cabinet to 
his right at a table on a stage in front of his 260 member 
audience.  (Note:  When he conducts these larger cabinet 
sessions, Niyazov typically sits behind a desk and arrays 
the cabinet at a separate table.  End Note.) During the 
meeting, Niyazov appointed Minister of Justice Ashyrgeldi 
Gulgarayev as Rector of Turkmen State University and dean of 
the new international arbitration court department.  (Note: 
Gulgarayev has no formal legal training; he also keeps his 
position as Minister of Justice.  End Note.)  Niyazov 
elevated Minister of Oil and Gas and Mineral Resources 
Gurbanmyrat Atayev to Deputy Chairman for Oil and Gas. 
Niyazov said he had had to observe Atayev's work as minister 
(appointed December 15, 2005), before he could appoint him 
head of such a big sector.  Atayev was instructed to oversee 
the development of the National Energy Policy, including the 
Petroleum Development Plan through 2020: production and 
processing of oil, liquefied gas, polypropylene and 
polyethylene. 
 
Halk Maslahaty Agenda Set 
------------------------- 
 
¶3.   (SBU) Niyazov announced the October 25 Halk Maslahaty 
(People's Council) meeting and the following agenda: 
 
-- Development of the fuel-energy sector:  Deputy Chairman 
Atayev will present the National Energy Policy that includes 
free natural gas and electricity supplies to citizens until 
¶2020.  The Halk Maslahaty will also "discuss" the price of 
gas and foreign gas markets.  (Comment:  Niyazov clearly 
wants to show the people's support for his unilateral 
decisions in the gas industry.  End Comment.) 
 
-- Prisoners' amnesty:  Niyazov previously said that 10,000 
prisoners will be amnestied this year.  Although no new 
number was given at the meeting, he said that a committee 
was creating a list of petty criminals who have made 
restitution to their victims to be considered for release by 
the Halk Maslahaty. 
 
-- Elections: The president confirmed the December district 
(etrap) governor elections. 
 
Other Decisions: Niyazov Sees Trees, Not Forest 
--------------------------------------------- -- 
 
¶4.   (U) The following decisions were also made at the 
meeting: 
 
-- Library Closures:  Niyazov ordered the merger of village 
(gengesh) libraries with village cultural centers, but said 
he would maintain district and regional level libraries. 
(Comment:  This is not necessarily a bad thing, the village 
libraries were understocked and underused - a remnant of the 
Soviet system; district-level libraries are more rational. 
End Comment.)  Minister of Culture and Rector for Turkmen 
Institute of Culture Enebay Atayeva reported that 43 of the 
country's 88 libraries will be closed and that 350 
"librarians" will be fired, leaving 108 national librarians. 
 
ASHGABAT 00000764  002.2 OF 003 
 
 
Niyazov also instructed Atayeva to close the library science 
department at the Institute of Culture.  (Comment:  This, on 
the other hand, is a bad development.  End Comment.) 
 
-- Expanded Student Body:  Deputy Chairman Berdimuhammedov 
reported increases in the number of students admitted to 
both the Turkmen Polytechnic Institute oil and gas 
department and the National Institute of Sport and Tourism 
(to support the new Olympic sports training facility). 
 
-- Budget in the Black:  In summary, the state budget for 
the first half of 2006 exceeded budget projections by 9% 
with a total revenue of $2.1 billion at the official 5,200 
manats/dollar exchange rate.  Four of the five welayets 
collected their planned revenues - only Dashoguz was 
delinquent. Niyazov also said that state salaries were paid 
on time during the reporting period.  A complete analysis of 
the comprehensive budget review will follow septel. 
 
Biographic Note 
--------------- 
 
¶5.  (SBU) Atayev's ascendance to Deputy Chairmanship of the 
critical Oil and Gas Sector is the most interesting aspect 
of this meeting.  Almost a year after former Chairman Yolly 
Gurbanmuradov was purged and thrown in prison on massive 
corruption charges, and following months of additional 
purges and a complete reorganization of the oil and gas 
sector, making it more centralized and subordinate to the 
president, Atayev is the first personality to emerge as a 
credible bureaucrat.  Charge has met with Atayev and found 
him to be an intelligent experienced oil and gas expert who 
conducts himself with authority and confidence.  For months, 
there literally has been "no one home" at the oil and gas 
ministry and all negotiations have been conducted by Niyazov 
himself.  This is not likely to change, but Atayev has 
emerged as the relative winner following the purges.  He 
also is only the second official to be appointed to fill a 
Deputy Chairmanship for over two years.  (Note:  Guychnazar 
Tachnazarov served as Deputy Chairman for Oil and Gas for 
five months in 2005, mostly as a non-entity, before he was 
purged, tried and convicted of embezzlement.  End Note.). 
Atayev's biography follows: 
 
                     Gurbanmyrat Atayev 
            Deputy Chairman of Cabinet Ministers 
   Minister of Oil and Gas Industry and Mineral Resources 
 
 
Born:  1965, Magtymguly Gengeshlik, Wekilbazar Etrap, Mary 
 
Education:  Turkmen State Polytechnic Institute, 1989, 
Majored as Engineer-Chemic-Technologist/Oil and Gas 
Reprocessing Technologies 
 
Professional Experience: 
 
07/10/2006     Deputy Chairman of Cabinet of Ministers of 
               Turkmenistan in charge of oil and gas 
               industry 
 
12/15/2005     Minister of Oil and Gas Industry and Mineral 
               Resources 
 
12/06/05-04/20/06   Acting Chairman of the TurkmenGaz 
                    [Turkmen Gas] State Concern 
 
10/31/2005     First Deputy Minister of Oil and Gas Industry 
               and Mineral Resources 
 
2003           Head of Dovletabat Gas Deposit 
 
1993-2003      Dovletabat Gas Deposit [country's largest gas 
               deposit] 
               Worked his way up from a fourth category 
               operator to shift supervisor, senior 
               technologist, deputy head of the workforce in 
               charge of main production, senior 
               technologist of the enterprise, and finally 
               deputy head. 
Comment 
 
ASHGABAT 00000764  003.2 OF 003 
 
 
------- 
 
¶5.   (SBU) President Niyazov was generally upbeat during the 
meeting and for the first time in recent memory did not 
indulge in public humiliation of government officials.  He 
appeared more interested in attending to business than 
orchestrating theatrics before he took his long holiday rest 
at the Caspian Sea in preparation for his upcoming visit 
with the President of Iran on July 24.  His decisions 
continued to show his remarkable micromanagement of every 
aspect of life in Turkmenistan. End Comment. 
 
BRUSH