VZCZCXRO9737
PP RUEHLN RUEHVK RUEHYG
DE RUEHDBU #1717/01 3340326
ZNR UUUUU ZZH
P 300326Z NOV 07
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC PRIORITY 1444
INFO RUCPDOC/USDOC WASHDC PRIORITY 0206
RUCNCIS/CIS COLLECTIVE
RUEHBUL/AMEMBASSY KABUL PRIORITY 2339
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 2254
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 2313
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2022
RHMFIUU/USCINCCENT MACDILL AFB FL
RUEKJCS/SECDEF WASHDC//USDP/ISA/NESA//
RUEAIIA/CIA WASHDC
RUEHDBU/AMEMBASSY DUSHANBE 3369

UNCLAS SECTION 01 OF 03 DUSHANBE 001717 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: ETRD PGOV ECON ELTN TI
SUBJECT: DRYING OUT IN DUSHANBE 
 
DUSHANBE 00001717  001.2 OF 003 
 
 
¶1. (SBU)  Summary: An October decree by Uzbek President Karimov 
governing the transit of alcohol and tobacco products has 
created a beer shortage in Tajikistan.  Tajikistan is highly 
reliant on Uzbek roads and rail lines to import products from 
Russia, and Uzbekistan has generally allowed goods to pass 
through unhindered.  However, continuing discontent with Tajik 
plans to build dams and hydropower stations that would restrict 
the flow of water to Uzbekistan has precipitated new tactics. 
In order to loosen Uzbekistan's grip on transit in and out of 
Tajikistan, the Tajik government has prioritized major road 
construction projects to provide transport options north, south, 
and east.  End Summary. 
 
 Beer in Dushanbe 
 
------------------------- 
 
¶2. (SBU) Beer is not a major part of most Tajiks' palette. 
According to the Tajik State Statistics Committee, Tajiks 
consumed only $850,000 worth of beer in 2006.  With the local 
average price for imported Russian beer at $1.00 - $1.30 per 
bottle, this is enough for one of every six Tajiks to drink a 
single bottle of beer the entire year.  A representative of a 
local beer distributor believes these figures are roughly 
accurate, due to the fact that "30% of the population does not 
drink beer at all because of their fanatical religious beliefs." 
 Also, Tajiks prefer vodka. 
 
¶3. (SBU) Tajikistan has only two major importers and 
distributors of imported beer, Inter-Trade and Shohona. 
Inter-Trade Company is headed by Mansur Ostanaev, who picked up 
his father's business connections through the Soviet Intourist 
Hotel network.  Inter-Trade was established in 2002 with 
exclusive rights to sell Russian Baltika beer in Tajikistan. 
Shohona Co. is the exclusive distributor of other Russian-made 
beers: Zolotaya Bochka, Holsten, Miller, Klinskoe, Tolstyak and 
Kozel.  Shohona's General Director Navruz Kosim is rumored to 
have connections with the Mayor of Dushanbe and with President 
Rahmon's family.  Most imported beer comes from Russia, where it 
takes on average 21 days to ship Baltika beer from the Samara 
distributor of Baltika Co. 
 
¶4. (SBU) EmbOff met with Jamshed Ruziev, Deputy Director for 
Sales of Inter-Trade on November 28.  Ruziev worked for Baltika 
Co. in Russia until 2002 as a distributor of Baltika in 
northeast Russia.  He told EmbOffs that the biggest problem the 
company is facing is the new Uzbek customs regime on excise 
goods crossing Uzbekistan, including vodka, tobacco, wine and 
beer.  Companies must pay up to $80,000 per rail car as a 
deposit to Uzbek customs to ensure that their cargo crosses 
Uzbek territory.  Tajik traders then have a difficult time 
getting the money back from the Uzbek government once the funds 
have gone into the general budget account.  Representatives from 
Inter-Trade and Shohona are currently in Tashkent to resolve 
this issue.  Ruziev believes these new regulations are related 
to the tensions between Uzbekistan and Tajikistan on water and 
hydro issues. 
 
Foreign Policy Goal: Pulling Away From Uzbekistan 
 
--------------------------------------------- -------------- 
----------------- 
 
¶5. (U) After September 2001, Tajikistan began to break away from 
Russian influence by grasping opportunities from the West to 
participate in the Global War on Terror and supporting the war 
in Afghanistan.  Tajikistan's foreign policy centered around 
finding new friends that could support its economic development 
in order to leverage its relationship with Russia.  While still 
greatly dependent on Russia, Tajikistan became more of an equal 
partner with its giant neighbor. 
 
¶6. (SBU) Tajikistan's new foreign policy goal is gaining 
independence from Uzbek influence.  Towards this goal, 
Tajikistan has pursued major energy and infrastructure projects 
oriented away from its troublesome neighbor.  Uzbekistan has 
reacted to Tajikistan's pulling away by restricting Tajik visas, 
and by limiting oil and gas exports to Tajikistan.  More 
recently, Uzbekistan has dragged its feet in fulfilling its 
agreement to transmit electricity from Turkmenistan to 
Tajikistan. 
 
DUSHANBE 00001717  002.2 OF 003 
 
 
 
¶7. (SBU) While Uzbekistan has sparred with Tajikistan over 
electricity transmission and dam construction, it has generally 
allowed trains and trucks to pass relatively freely through its 
territory to Tajikistan.  Due to the Soviet-era construction of 
rail and road links that criss-cross both countries, Tajikistan 
is highly dependent on Uzbekistan to connect to Russia and 
Europe.  However, the import routes through Kyrgyzstan, China, 
and Afghanistan have begun to take on a larger share of 
Tajikistan's trade.  Tajikistan has prioritized major road 
infrastructure projects whose major purpose is providing 
alternate routes in and out of the country avoiding Uzbekistan. 
 
All Roads Lead Away From Uzbekistan: The Southern Route to 
Afghanistan 
 
--------------------------------------------- -------------- 
--------------------------------------------- ----- 
 
¶8. (U) Tajik Foreign Minister Hamrokhon Zarifi November 22 met 
with Afghan Ambassador to Tajikistan Muhammad Khairkhoh to 
discuss issues related to handling cargo traffic via the 
U.S.-funded Nizhny Pyanj bridge.  The bridge is now open for 
limited traffic after sitting idle for two months following its 
official opening in August, but the two governments have not 
fully engaged on border cooperation.  The Japanese road 
connecting the bridge to Dusti is under construction, and local 
news agency Avesta reports that the Japanese International 
Cooperation Agency will announce a tender for the reconstruction 
of the road from Qurghon-Teppa to Dusti by the end of the year. 
This will complete the road from Dushanbe to the Nizhny Pyanj 
bridge, which connects to a good road to Kabul and further to 
Pakistan. 
 
¶9. (U) The Times of Central Asia reported that the Iranian 
Minister of Energy Said Parviz Fattah discussed construction of 
a tunnel 50 kilometers south of Dushanbe with Tajik Minister of 
Transportation and Communications Abdurahim Ashur on November 
¶10.  Fattah voiced Tehran's readiness to start construction of 
the $140 million `Chormaghzak' tunnel project after feasibility 
studies are completed. 
 
The Northern Routes to Kyrgyzstan 
 
--------------------------------------------- - 
 
¶10. (U) The $110 million Iranian-built Anzob tunnel will be open 
for traffic while under construction this winter and connects 
Dushanbe to Khujand in the north.  With the Anzob pass closed 
during the winter, the only other routes connecting Tajikistan's 
northern and southern regions pass through Uzbekistan, which 
relations have made onerous in recent years. 
 
¶11. (U) On November 3, the Tajik government and the Asian 
Development Bank (ADB) signed a loan agreement on the Regional 
Road Corridor Improvement Project designed to facilitate the 
completion or improvement of key sections of the road from 
Dushanbe to the Tajik-Kyrgyz Border and further on to Osh, 
Kyrgyzstan.  The total cost of the project is $76.4 million, 
with $12.4 million of the ADB's $53.4 million contribution 
provided in the form of grant.  The Tajik government 
contribution amounts to $22.8 million.  The project will improve 
a part of the regional corridor from Nimich to Karamyk 
(Tajikistan's component) and from Karamyk to Saritash 
(Kyrgyzstan's component) as well as enhance border 
infrastructures for strengthening regional trade and 
cooperation. 
 
The Eastern Route to China 
 
---------------------------------------- 
 
¶12. (U) According to Avesta news reports, Al-Abdulahad, a 
Kuwaiti-Lebanese engineering & consulting company, will conduct 
a feasibility study for the Kulob-Khaillakum road construction 
project.  The feasibility study is being funded by the Kuwaiti 
Fund which has allocated a $1 million grant to Tajikistan. The 
$140 million project envisages construction of three bridges on 
separate sections of the 98-kilometer road. The project has 
funding from the Islamic Development Bank, Kuwaiti Fund, Saudi 
Fund, the Organization of the Petroleum Exporting Countries 
 
DUSHANBE 00001717  003.2 OF 003 
 
 
(OPEC), and the Tajik government. 
 
¶13. (U) Additionally, Avesta reported that the second and third 
phases of the Shagon-Zigar road construction project will be 
launched this week. According to the Executive Director of the 
project Ismonqul Shoqulov, "Iranian Sober International, the 
contractor general of the project, has already delivered main 
equipment to the construction site."  Under the Tajik-Iranian 
agreement, 60% of the workforce will be Tajiks.  The road along 
the Tajik-Afghan border links eastern Khorog west with 
Khaillakum and further towards Dushanbe.  The second and third 
phases cover a 28.5 kilometer stretch of road for $29.8 million. 
 The Asian Development Bank is financing 87% of the total cost, 
with the Tajik government covering the remaining 13%.  The two 
phases are expected to be implemented within four years. 
 
¶14. (U) Between Dushanbe and Kulob, the Chinese contractor 
reports that the 2,200 meter Shar-Shar tunnel is half-way 
completed.  The tunnel should reduce the travel time between 
Dushanbe and Kulob by 35-40 minutes.  The tunnel is being funded 
through a $30 million Chinese concessional loan agreement, with 
Tajikistan contributing an additional $8 million. 
 
 Comment 
 
-------------- 
 
¶15. (SBU) Local press has not yet picked up on Uzbekistan 
limiting Tajikistan's alcohol intake.  Popular sentiment already 
rails against Uzbekistan for limiting Tajikistan's energy supply 
and its harsh visa restrictions; earlier this fall, rumors 
spread around Dushanbe about a possible Tajik-Uzbek military 
confrontation, following border skirmishes between Tajik and 
Uzbek border guards and local citizens.  While these rumors 
failed to materialize, Tajiks clearly view Uzbekistan's 
treatment of them as unfair, and favorably view any plans that 
will reduce their reliance on Uzbekistan.  End Comment. 
HUSHEK