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Viewing cable 08DUSHANBE829, TAJIKISTAN'S HASAN ASADULLOZODA - MAN, MYTH, LEGEND

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Reference ID Created Released Classification Origin
08DUSHANBE829 2008-06-23 04:48 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dushanbe
VZCZCXRO0630
RR RUEHLN RUEHVK RUEHYG
DE RUEHDBU #0829/01 1750448
ZNR UUUUU ZZH
R 230448Z JUN 08
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC 0664
INFO RUCNCIS/CIS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0111
RUEHIL/AMEMBASSY ISLAMABAD 0154
RUEHNE/AMEMBASSY NEW DELHI 0123
RUEHBUL/AMEMBASSY KABUL 0185
UNCLAS SECTION 01 OF 02 DUSHANBE 000829 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR SCA/CEN 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV ETRD EINV ECON TI
SUBJECT: TAJIKISTAN'S HASAN ASADULLOZODA - MAN, MYTH, LEGEND 
 
REF: (A) DUSHANBE 635 
 (B) DUSHANBE 515 
 
1. (SBU) Summary: Hasan Asadullozoda (formerly known as Sadulloev), 
the 40 year old brother-in-law of President Rahmon, is Tajikistan's 
top business figure, and is often called the "third most powerful" 
man in the country (after Rahmon and Dushanbe mayor Ubaidulloyev). 
He controls or has substantial influence in major state-owned 
enterprises, and his holding company, Ismoili Somoni Financial and 
Industrial Group, manages two dozen companies involved in every 
major business sector.  His wealth and influence, however, have 
generated jealousy among President Rahmon's inner circle, 
particularly his children.  End Summary. 
 
Rise to Power 
------------- 
 
2. (U) Asadullozoda came from humble beginnings, but quickly 
ascended to the top of the Tajik business world.  Most attribute his 
success to the fact that his older sister, Azizamoh, is married to 
President Rahmon.  Born in the Kolhozabad district of Khatlon region 
in 1968, Asadullozoda was a gas station attendant in Kurgonteppa in 
1991.  Benefiting from his brother-in-law's rise to power in 1992, 
he was named Deputy Director of the oil depot in Kolhozabad in 1995. 
 In 1997, he was promoted to Director of the oil depot in Jilikul, 
and by 1998, he was the General Director of an oil supply and 
logistics enterprise in Sarband.  In 2001, he was appointed as the 
General Director of the Universal Commodity Exchange in Dushanbe. 
 
3. (U) In May 2003, Asadullozoda became Chairman of the Executive 
Board of Orien Bank.  Although Orien was -- and still is -- a 
private bank, it is closely aligned with President Rahmon. 
Asadullozoda was installed after the authorities arrested the 
previous chairman, Samihon Kurbanov.  The finances, ownership, and 
business practices of Orien Bank are murky, so it difficult to 
determine Asadullozoda's exact ownership stake.  Nevertheless, he 
uses his position as the bank's Chairman to support his other 
business interests. 
 
A Diversified Portfolio 
----------------------- 
 
4. (SBU) Asadullozoda is widely believed to control a significant 
portion of Tajikistan's economy.  Through his Ismoili Somoni 
Financial and Industrial Group, founded in 1997, he has interests in 
the following sectors: 
 
-Cotton (30,000 hectares of cotton farms in Khatlon region; 
estimated revenues in 2003: $100 million; 
-Food Services (reported control of Vastan Restaurant and the Soyuz 
Company, a catering and alcohol importing business); 
-Hotels (the five-star Ismoili Somoni Hotel, located on prime real 
estate on Rudaki Avenue in Dushanbe, should be completed in 2009); 
-Insurance (Orien Insurance Company, founded in 2004, is the largest 
in the country with estimated revenues of $35 million); 
-Commercial banking (Orien Bank is the country's largest private 
bank, with approximately $65 million in capital; its $169 million 
loan portfolio has led to questions about many of the banks 
transactions); 
-Investment Banking (Somon Capital, founded in 2006 as a joint 
venture between Orien Bank and Visor Capital from Kazakhstan, is the 
first investment bank in Tajikistan); 
-Aviation (partial ownership of the company that runs the Khujand 
Airport; full ownership of SomonAir, the country's first private 
airline); 
-Media (Orien Media LLC operates a radio station, a television 
station, and a newspaper); 
-Telecom (Asadullozoda's TACOM LLC acquired the bankrupt Tajik Tel 
Company, Tajikistan's first cellular company, and has entered into a 
QCompany, Tajikistan's first cellular company, and has entered into a 
joint company with Russia's Vimpelcom under the Beeline brand; he 
has partial ownership of Arzon Mobile, an authorized distributor of 
Nokia and Samsung cell phones); 
-Aluminium (Asadullozoda's CDH International buys and sells bauxite 
for TALCO, the country's largest source of revenue and foreign 
currency). 
 
Conflict with the President? 
---------------------------- 
 
5. (SBU) Asadullozoda obviously holds a privileged position in 
Tajikistan, but analysts differ on his influence with President 
Rahmon.  Some have described him as the President's proxy or favored 
son, and say that many economic policy decisions in the country are 
made to increase his personal holdings.  Many believe that Tajik Air 
-- burdened with debt -- will be allowed to fold, and that 
Asadullozoda's Somon Air will become the state airline.  While he 
 
DUSHANBE 00000829  002 OF 002 
 
 
does not have an official position in TALCO, many believe he is 
functionally the company's Chairman.  TALCO's commercial director, 
Sherali Kabirov, is a close associate of Asadullozoda, and 
Asadullozoda's Somon Capital is fronting a plan for the conversion 
of TALCO to domestic, vice imported, mineral resources. 
 
 
6. (SBU) However, there are rumors that Asadullozoda's success has 
caused discord in the Rahmon family.  The President's son, Rustam, 
reportedly shot Asadullozoda in May (reftel A), and the President's 
daughter, Tahmina, who herself has significant business holdings, 
may be a rival to Asadullozoda.  In April 2008, authorities took 
Asadullozoda's radio station off the air, reportedly because it was 
too critical of the government.  Some observers downplay this 
incident, saying that Asadullozoda has little day-to-day involvement 
with the station.  However, it does indicate that Asadullozoda's 
holdings are not immune from the government's wrath. 
 
Comment 
------- 
 
7. (SBU) Comment: Many of those who know Asadullozoda have said that 
his primary motivation is to control as many revenue generating 
enterprises as possible, to the exclusion of others.  Businesspeople 
in Tajikistan view him as a predator, and they fear losing their 
businesses to Asadullozoda's draconian methods.  There are rumors 
that the demise of the founder of the Orima supermarket chain 
(reftel B) and the desire of the owner of a major telecom company to 
sell are linked to Asadullozoda's designs on their businesses. 
Asadullozoda fits very well into one of President Rahmon's important 
governing principles -- maintain as much personal control of the 
country's assets as possible. 
 
8. (SBU) Comment continued: While Asadullozoda employs harsh, 
predatory methods, he is pragmatic enough to recognize that he needs 
competent people to manage his businesses.  He has not adhered to 
the type of Kulyobi nepotism that characterizes the government.  He 
has made an effort to hire qualified managers, and he has 
distinguished himself from President Rahmon's other family members, 
whom most judge to be untalented and incompetent.  However, his 
fortunes are tied closely to those of the President.  He does not 
have his own political constituency, and he does not have specific 
ties to Russian power brokers.  Asadullozoda's demise, whenever it 
comes, will be either the result of rivalry with the President's 
offspring, or because Rahmon himself has lost power.  Asadullozoda's 
position as the most powerful businessman in Tajikistan, dependent 
as it is on the stability of the current regime, illustrates the 
shallowness of private sector development in the country.  End 
Comment. 
 
JACOBSON