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UNCLAS SECTION 01 OF 02 ASHGABAT 000439 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
PLEASE PASS TO USTDA DAN STEIN 
COMMERCE FOR HUEPER 
ENERGY FOR EKIMOFF/THOMPSON 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EPET IN TX
SUBJECT:  TURKMENISTAN:  INDIA SEEKING TO REINVIGORATE ITS 
RELATIONSHIP 
 
¶1.  (SBU) Sensitive but unclassified.  Not for public 
Internet. 
 
¶2.  (SBU) SUMMARY:  India and Turkmenistan took yet another 
step toward reenergizing their bilateral relationship with 
the April 4-6 visit of India's Vice President Hamid Ansari to 
Turkmenistan.  During the visit, Turkmenistan's President 
Berdimuhamedov threw his support behind India's inclusion in 
the Trans-Afghanistan pipeline (TAPI) consortium.  The two 
countries signed only one document, a memorandum of 
understanding on energy cooperation that establishes a basis 
for possible expansion of Indian energy companies into 
Turkmenistan.  However, they discussed an additional seven or 
eight cooperation agreements that would substantially broaden 
bilateral cooperation and that could be pulled together in 
time for a Berdimuhamedov visit to New Delhi, which will 
probably take place before October.  With both sides 
apparently eager to take their relationship to a new level, 
the prospects for increased engagement appear positive.  END 
SUMMARY. 
 
¶3.  (SBU) India Vice President Hamid Ansari's April 4-6 visit 
to Turkmenistan was part of an Indian effort to restart a 
relationship largely put on hold since the late 1990's, 
according to the Indian Deputy Chief of Mission, Binaya 
Srikanta Pradhan.  The visit followed Turkmenistan Deputy 
Prime Minister/Foreign Minister Rashid Meredov's successful 
January 20-22 visit to New Delhi.  Ansari, an experienced 
career diplomat, insisted that his meetings with President 
Berdimuhamedov and other officials be heavy in substance, and 
the two sides discussed a new plan for comprehensive 
engagement.  The next step will be a visit by Turkmenistan's 
President Gurbanguly Berdimuhamedov to New Delhi sometime 
before October 2008. 
 
MOU LEAVES DOOR OPEN TO INDIAN INVOLVEMENT IN TAPI 
 
¶4.  (SBU) The two sides signed an energy memorandum of 
understanding (MOU) that has been under negotiation for two 
years.  The MOU opens the possibility for Indian companies to 
work with Turkmen firms on several energy projects that focus 
on oil exploration and gas pipeline construction.  Pradhan 
reported that Ansari urged the Government of Turkmenistan to 
give the Oil and Natural Gas Corporation (ONGC), India's top 
petroleum company, a contract to help build or rebuild a 
pipeline -- either the Central Asian-Center pipeline, a 
portion of the new Turkmenistan-to-China pipeline, or a 
portion of the Caspian Littoral pipeline.  Indian firms are 
also examinining the possibility of producing compressed 
natural gas (CNG) or liquified natural gas (LNG), according 
to Pradhan. 
 
...BUT BOTH SIDES ACKNOWLEDGE "IMPEDIMENTS" 
 
¶5.  (SBU) The MOU also lays the groundwork for Indian 
companies to play a significant role in producing the natural 
gas in Turkmenistan that will someday be delivered via the 
Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline to 
South Asia, though Pradhan characterized this as a 
"long-term, strategic" objective.  Turkmenistan threw its 
support behind India's bid to join the TAPI consortium -- in 
time for the TAPI meeting in Islamabad later this month. 
However, Vice President Ansari refused to answer press 
questions on the current status of the TAPI pipeline, and 
would only say that technical discussions were continuing. 
Although both Berdimuhamedov and Vice President Ansari were 
guarded in their commentaries about TAPI, they both 
 
ASHGABAT 00000439  002 OF 002 
 
 
acknowledged there were "impediments" to the project getting 
off the ground. 
 
¶6.  (SBU) While the media reported that ONGC wants an onshore 
production sharing agreement at a discovered field similar to 
what the Chinese have, Pradhan reported that Berdimuhamedov 
and other Turkmen officials were adamant about not letting 
ONGC work onshore.  ONGC is also exploring the possibility of 
signing an agreement to work offshore Caspian blocks 11 and 
12 jointly with the German petroleum company, Wintershall. 
 
ROUNDING OUT THE RELATIONSHIP 
 
¶7.  (SBU) However, the two sides actually spent more time 
discussing a number of agreements that are being prepared for 
Berdimuhamedov's visit to New Delhi, including an agreement 
on trade and economic relations that will allow Indian 
automobile, truck, and tractor companies to market their 
products in Turkmenistan; a "comprehensive" cultural exchange 
agreement for 2008-2010; and an education exchange agreement 
to strengthen cooperation between Indian and Turkmen 
universities.  Ansari also visited Mary City -- not, as 
Itar-Tass claimed, to visit the massive Dovletabad gas field 
that initially had been earmarked for the TAPI pipeline (but 
whose gas is now being exported to Russia), but rather, to 
sightsee at the Mary municipal museum and the ancient 
historical site of Merv. 
 
¶8.  (SBU) COMMENT:  Even with TAPI on hold, India has much to 
gain from rebuilding its relationship with Turkmenistan. 
This should be relatively straightforward:  the relationship 
seems to have gone into hibernation more because of inertia 
than because of any series of incidents.  And with 
Berdimuhamedov seeking foreign investment -- and Indian 
businessmen apparently willing to direct at least some of 
their funds toward Turkmenistan -- the prospects for 
increased engagement appear positive.  END COMMENT. 
HOAGLAND