VZCZCXRO2908
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1075/01 2311136
ZNR UUUUU ZZH
P 181136Z AUG 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 1363
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
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RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAM/AMEMBASSY AMMAN PRIORITY 0013
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RUEHBJ/AMEMBASSY BEIJING PRIORITY 1981
RUEHKO/AMEMBASSY TOKYO PRIORITY 1846
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UNCLAS SECTION 01 OF 03 ASHGABAT 001075 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
PLEASE PASS TO USTDA DAN STEIN 
ENERGY FOR EKIMOFF/THOMPSON 
COMMERCE FOR HUEPER 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ELAB EPET CH JO TX
SUBJECT: TURKMENISTAN:  CABINET MEETING FOCUSES ON STATE 
VISITS, NEW PETROLEUM LAW AND PERSONNEL CHANGES 
 
REF: A. ASHGABAT 1068 
     ¶B. ASHGABAT 1069 
     ¶C. ASHGABAT 1071 
     ¶D. ASHGABAT 1031 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU)  SUMMARY:  In addition to announcing that 
Turkmenistan's People's Congress will meet on September 26 to 
review and approve the draft constitution and talk briefly 
about the situation of South Ossetia, President 
Berdimuhamedov used an August 15 extended cabinet meeting to 
comment on a draft petroleum law that he said he would pass 
on for parliamentary approval.  Specifically, he briefly 
previewed a number of changes in the new law, including 
provisions bringing the law into conformity with 
international standards and clarifying the status of the 
State Agency for Management and Use of Hydrocarbon Resources. 
 Deputy Premier for Foreign Affairs Meredov announced that 
King Abdullah II of Jordan and China's President Hu Jintao 
will visit Turkmenistan in August.  In addition to banning 
child labor in the upcoming cotton harvest, the president 
also announced a number of personnel actions, including his 
decision to make Ashgabat Mayor Deryageldi Orazov Deputy 
Premier for Construction and to appoint First Deputy Chairman 
of the Turkmen Cotton state concern Hojamyrat Metekov as 
Minister of Textile Industry.  Berdimuhamedov's comments on 
the law are probably directed toward relieving some of the 
concerns of potential investors.  It will be interesting to 
see whether Turkmenistan's Parliament is able to approve the 
law before the September 9-10 joint oil and gas exhibit in 
Baku.  END SUMMARY. 
 
¶3.  (U) The August 15 extended cabinet meeting, held to 
review progress over the last seven months, was businesslike 
but long.  Highlights included a brief discussion of the 
situation in South Ossetia and the announcement that 
Turkmenistan's People's Council (Halk Maslahaty) will meet 
September 26 to consider the constitution (refs a, b).  But 
there was also discussion of a number of "other item" issues: 
 
-- Upcoming Visits:  Stressing the success of Turkmenistan's 
efforts to engage with the international community, Vice 
Premier for Foreign Affairs Meredov announced that King 
Abdullah II of Jordan will visit in the second half of 
August, and China's President Hu Jintao will make a state 
visit to Turkmenistan in late August.  Turkmenistan will also 
host a regular session of the bilateral Turkmenistan-Russia 
Commission. 
 
-- Pipeline Security Resolution:  Noting that Turkmenistan's 
proposal for a pipeline security resolution has broad support 
among countries with hydrocarbon pipelines and hydrocarbon 
transit countries, Berdimuhamedov ordered Meredov to propose 
a draft resolution to the UN Secretariat (ref a). 
 
-- Child Labor in Cotton Harvest:  Noting that Turkmenistan's 
children must study, he instructed Minister of Education 
Annaamanov not to allow child labor during the cotton 
harvest, and warned Ministry officials that they will face 
legal action if they allow any disruption of classes. 
(COMMENT:  Although the embassy found no evidence last year 
of school classes being involved in the cotton harvest, we 
heard reports that teachers were required to work in the 
fields before and after school and on weekends.  It will be 
interesting to see how local officials and the Ministry 
interpret the president's prohibition this year.  END 
COMMENT.) 
 
 
ASHGABAT 00001075  002 OF 003 
 
 
PREPARATIONS FOR THE COMING SCHOOL YEAR 
 
¶4.  (U) Deputy Premier for Education and Health Hydyr 
Saparliyev reported that preparations for the coming school 
year are progressing.  Of the 124 planned new textbooks, 112 
have been completed and sent for publishing.  A total of 24 
schools were hooked up to the Internet in the first seven 
months of 2008, taking the number of schools with access to 
the Internet to 44.  Some 4000 students have been admitted to 
Turkmenistan's institutions of higher learning this year, and 
hundreds more will study at universities abroad (ref c).  In 
addition, 80 graduate students will study in 57 areas of 
specialization. 
 
NEW PETROLEUM LAW PASSED TO PRESIDENT 
 
¶5.  (U) Deputy Premier for Oil and Gas Tachberdi Tagiyev 
reported that the new draft petroleum law has been passed to 
the president for approval.  Berdimuhamedov reported that the 
new law will incorporate a number of changes to the old law, 
including: 
 
-- The new law reflects both Turkmenistan's prerogative to 
implement this law, but the law must also reflect the 
international treaties and conventions to which the country 
is a signatory. 
 
-- The legal and economic status of the State Agency for 
Management and Use of Hydrocarbon Resources has been defined. 
 Under the new law, the State Agency is an independent legal 
entity and will be authorized to submit claims or respond to 
plaintiff's claims, and own property and use the assets given 
by the state for use or management of that property. 
 
-- The status of subcontractors and their counteragents, 
including tax and customs regimes and currency regulations 
for their operations are clearly defined. 
 
-- The new law offers the possibility of extending production 
licenses based on the commercial feasibility of the project. 
 
-- The profit tax rate remains unchanged throughout the 
implementation period of the project. 
 
-- The new draft law clarifies fiscal and tax regimes and 
legal conditions for hydrocarbon operations. 
 
-- The law increases environmental requirements. 
 
The president stated that he would submit the new law for 
parliamentary approval. 
 
PERSONNEL ACTIONS:  3 PROMOTIONS, 1 FIRING, 1 REPRIMAND 
 
¶6.  (SBU) As frequently happens during these monthly review 
sessions, there was a greater-than-usual number of notable 
personnel actions.  Specifically, the president: 
 
-- Appointed Ashgabat Mayor Deryageldi Orazov as Deputy 
Premier for Construction (bio below).  Previously, Deputy 
Premier Shagulyev had covered this portfolio, as well as the 
areas of transportation and communications. 
 
-- Promoted First Deputy Chairman of the "Turkmen Cotton" 
("TurkmenPagta") state concern Hojamyrat Metekov to the 
position of Minister of Textile Industry (bio below).  The 
former minister, Jemal Goklenova, resigned for "health 
reasons" several weeks ago, though there remain rumors that 
she may have been forced to resign for wrongdoing (ref d). 
 
ASHGABAT 00001075  003 OF 003 
 
 
 
-- Assigned First Deputy Mayor of Ashgabat Azat Bilishov to 
replace Orazov as Mayor of Ashgabat. 
 
-- Fired Jeren Tayimova as Editor-in-Chief of the 
Russian-language state newspaper, Neutralniy Turkmenistan. 
Tayimova was replaced by Bekdurdy Amansaryev. 
 
-- Reprimanded Minister of Culture and Broadcasting Gulmurat 
Muradov for loose control of his Ministry's work. 
 
¶7.  COMMENT:  The draft petroleum law has yet to see the 
light of day.  None of our contacts in foreign oil companies 
has reported that they have been able to review the law, and 
there remains substantial speculation about what exactly is 
in the law.  Berdimuhamedov's comments on the law are 
probably directed toward relieving some of the concerns of 
potential investors.  It will be interesting to see whether 
Turkmenistan's Parliament is able to approve the law before 
the September 9-10 joint oil and gas exhibition in Baku.  END 
COMMENT. 
 
BIO FOR DERYAGELDI ORAZOV 
 
¶8.  (SBU) Orazov was born in 1962 in Ashgabat.  He graduated 
from Turkmenistan's Institute of National Economy in 1983 
with a major in accounting and economy.  He received a second 
degree in law from Turkmen State University in 1996.  From 
1983 to 1985, Orazov served as Chief Auditor at the Ministry 
of Healthcare.  Between 1985-1999, he held a number of 
positions, including:  Head of Ahal Province's division of 
the State Committee on Tourism and Sport, head of Ahal 
Province's Law Enforcement and Military Department, head of 
Ahal Province's Division of the Garashsyzlyk Bank, deputy 
head of Ahal Province's division of Dayhan Bank and head of 
the Auditing Department at the Ministry of Healthcare.  From 
2004-February 21, 2007, he served as the head of Ashgabat 
City's Kopetdag District, then became Chairman of the State 
Committee on Tourism and Sports.  He became Mayor of Ashgabat 
City on May 21, 2007. 
 
BIO FOR HOJAMYRAT METEKOV 
 
¶9.  (SBU) Metekov was born in 1963 in Kirov Village in Kahka 
District, Ahal Province.  He graduated from Turkmen 
Agricultural University in 1991 with a degree in agricultural 
accounting and economy.  From 1981-1984, he served as an 
accountant at Kahka District's "Kolkhoz Uchguny" newspaper. 
From 1984-1989, he served as a chief specialist on labor 
organization and salary at Kahka District's Agro-Industrial 
Enterprise and as an economist in Kahka District's 
agricultural department.  From 1989-1992, he worked as the 
deputy chief of Kahka District's Agricultural Production 
Enterprise.  From 1992-2001, he held a number of positions, 
including head of Kahka District's division of the Ashgabat 
customs service, deputy director and director of Kahka 
District's cotton ginning enterprise.  From 2001 to April 21, 
2007, he held various positions at the Turkmen Cotton 
("TurkmenPagta") state concern, then was promoted on April 
21, 2007 to the position of First Deputy Chairman of the 
Turkmen Cotton state concern. 
CURRAN