VZCZCXRO2763
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
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DE RUEHAH #0599/01 1330141
ZNR UUUUU ZZH
P 130141Z MAY 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 2797
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 5181
RUEHBJ/AMEMBASSY BEIJING 2925
RUEHKO/AMEMBASSY TOKYO 2790
RUEHIT/AMCONSUL ISTANBUL 3425
RUCNDT/USMISSION USUN NEW YORK 0995
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEHVEN/USMISSION USOSCE 3541
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 000599 
 
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: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN RELUCTANT TO SIGN EU ENERGY AGREEMENT 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  Neither Turkmenistan nor the other two Central 
Asian states present at the May 8 EU energy summit signed an EU 
agreement that would have committed gas supplies to future energy 
transport projects including Nabucco.  Although there is little 
information shedding light on Turkmenistan's motivations, there are 
still strong indications that Turkmen officials want to play a key 
role in providing gas to Europe, but they may want to do so on their 
own terms.  With the country's Deputy Chairman for Oil and Gas 
heading the delegation, it was unlikely the delegation would have 
the authority to sign documents with such key political and economic 
significance, but the fact that a senior Turkmen delegation came to 
the summit indicates continued Turkmen interest in selling gas to 
Europe, one way or another.  END SUMMARY. 
 
¶3.  (SBU)  Turkmenistan, along with Kazakhstan and Uzbekistan, did 
not sign an EU-proposed framework agreement designed to boost 
natural gas exports from the Caspian Sea region and the Middle East 
to Europe, during the "Southern Corridor - New Silk Road" Summit 
that took place in Prague on May 8.  Azerbaijan, Egypt, Georgia, and 
Turkey signed the agreement, which promises that signatories will 
receive "necessary political support," and, where possible, 
technical and financial assistance to facilitate the construction of 
pipelines that would bring Central Asian and Middle Eastern gas to 
the European market. 
 
¶4.  (SBU) The Turkmen delegation was headed by Deputy Cabinet 
Chairman, Tachberdi Tagiyev, and included State Agency for Use and 
Management of Hydrocarbon Resources Director, Yagshygeldy Kakayev, 
and Turkmengaz State Concern Chairman, Baymyrat Hojamuhammedov. 
Although the Turkmen delegation's participation in the summit 
demonstrated that Turkmenistan has become more receptive to proposed 
new energy routes that will serve the EU, the fact that the 
delegation included only "technical" oil and gas officials but no 
diplomatic or foreign affairs officials suggests that while 
Turkmenistan was ready to discuss the technical aspects of 
participating in the Nabucco project, it was not ready to discuss 
the political aspects of the venture. 
 
¶5.  (SBU) A May 8 RFE/RL article claimed that before the summit 
kicked off, EU officials had expected to get concrete commitments 
from the Central Asian countries regarding the quantities of gas 
they would commit to the European market.  Although President 
Berdimuhammedov has publicly affirmed Turkmenistan's willingness to 
provide gas to the EU, there have been no signs the country has 
altered its policy of selling gas at its border.  Turkmen Government 
decisions made in the last two years on pipeline diversification -- 
the 2007 deal with China and recent overtures regarding a new 
pipeline to Iran --suggest a reluctance to make concrete political 
and financial commitments to multilateral projects. 
 
¶6.  (SBU)  The Turkmen Government has made clear its unwillingness 
to engage in activities related to pipeline construction outside of 
Turkmenistan, but it has on numerous occasions stated that 
Turkmenistan is ready to export gas to any partner that can make 
arrangements to transport Turkmen gas from the Turkmen border to a 
given market.  A concrete example of this is the Turkmen 
Government's April agreement with German energy company, RWE, which 
reportedly included provisions for the exploration and development 
of offshore block 23 and probably others.  It also contained 
language that could provide a basis for the company to develop a 
transport plan to get Caspian gas to the EU states. 
 
¶7.  (SBU) COMMENT:  It was no surprise that the Turkmen delegation 
did not sign the agreement at the summit.  President Berdimuhamedov 
would have been there if the Turkmen intended to sign the document. 
He is the only one authorized to do so.  The fact that the Turkmen 
 
ASHGABAT 00000599  002 OF 002 
 
 
delegation was headed by Tagiyev rather than Berdimuhamedov may 
indicate that while the Turkmen Government wanted to send a positive 
signal to the EU that Turkmenistan remains open to Nabucco, it 
prefers individual partners over complicated multilateral 
arrangements.  END COMMENT. 
 
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