VZCZCXYZ0000
PP RUEHWEB

DE RUEHAH #0859/01 1900414
ZNR UUUUU ZZH
P 090414Z JUL 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 3111
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 5410
RUEHBJ/AMEMBASSY BEIJING 3138
RUEHKO/AMEMBASSY TOKYO 3003
RUEHIT/AMCONSUL ISTANBUL 3654
RUCNDT/USMISSION USUN NEW YORK 1045
RHMCSUU/CDR USCENTCOM MACDILL AFB FL
RUEHVEN/USMISSION USOSCE 3700
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

UNCLAS ASHGABAT 000859 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/CEN; EEB 
 
E.O. 12958: N/A 
TAGS: ETRD PREL PGOV EINV GM TX
SUBJECT: GERMAN BUSINESS IN TURKMENISTAN 
 
REF: ASHGABAT 515 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: To date, German companies have been more 
successful than any other Western companies in doing business 
in Turkmenistan.  Although there are no available official 
statistics regarding the number of German companies working in 
the country, there are reportedly about 14 German companies 
selling their products and services here.  It is not, however, 
the number of companies that makes the Germans look more 
successful than their other Western counterparts.  Rather, it 
is the volume and scope of their businesses and the ties that 
German companies have managed to build with the Turkmen 
Government.  The activities of the most noteworthy companies 
are described below. END SUMMARY. 
 
¶3.  (SBU) Deutsche Bank AG was the first major German company 
to enter the Turkmen market and has been operating here since 
¶1994.  Although the bank is not active in the consumer or 
business lending markets, it reportedly holds the account of 
the Central Bank of Turkmenistan and, therefore, is a key 
international partner of the Government of Turkmenistan in the 
banking sector and is involved in all of the Government of 
Turkmenistan?s international transactions. 
 
¶4.  (SBU) The late President Niyazov's love for the Mercedes 
brand paved the way for Daimler AG to enter the Turkmen market 
in the early 1990s and to become the exclusive supplier of 
premium-class official cars for high-ranking Turkmen 
government officials.  Daimler has sold over 1,100 Mercedes 
brand vehicles and over 500 vehicles of other brands to 
government agencies in Turkmenistan since 1995, which is 
considered high volume for new car sales in the Turkmen 
market. 
 
¶5.  (SBU) Siemens AG enjoys the privilege of being the Turkmen 
Government's preferred German company.  Siemens entered the 
Turkmen market in the mid 1990s, supplying telecommunications 
equipment to Turkmenistan in small volumes.  In 1998, Siemens 
made a breakthrough, building a $22 million cardiology center 
in Ashgabat.  The Center was constructed after the late 
President Niyazov developed heart problems and underwent major 
cardiac surgery at a German clinic in 1997.  Niyazov's cardiac 
surgery in Germany reportedly played a key role in his 
decision to select Siemens to construct the cardiology center, 
of which he was the principal patient.  Since that time, 
Siemens has been the nearly exclusive supplier of medical 
equipment to Turkmenistan and has equipped almost all new 
medical centers in the country.  The company has also expanded 
its activities in the telecommunications sector, supplying 
digital telephone exchanges and other equipment to the Turkmen 
Ministry of Communications.  The company has also reportedly 
been a major supplier of surveillance equipment for Turkmen 
secret services.  Under Niyazov, Siemens entered the 
Turkmen energy market and supplied electronic equipment for a 
power station in the City of Turkmenbashy.  Under 
Berdimuhamedov, Siemens has managed to maintain its position 
in the country.  The company is still the leading supplier of 
medical equipment, controls a significant part of the 
telecommunications market, and supplies electronic equipment 
for the country's energy sector.  Siemens reportedly managed 
to build good relations with Berdimuhamedov when he served as 
Minister of Healthcare.  Siemens actively cultivates its 
relationship with the Turkmen leadership as a means of 
maintaining its current market positions and expanding its 
activities in the Turkmen energy and industrial sectors in the 
future. 
 
¶6.  (SBU) Wintershall AG, jointly with Maersk(Netherlands) and 
ONGS Mittal Company (India), holds a license to explore and 
develop oil and gas deposits located in offshore Blocks 11 and 
12, totaling 5,600 square kilometers in Turkmenistan's part of 
the Caspian Sea.  Initially, the Turkmen Government issued the 
license to Maersk, but Wintershall entered the project 
acquiring 20% of project shares in 2006.  In 2007, Wintershall 
increased its participation in the project to 34% and became 
the operator of the concession.  The company is currently 
carrying out exploratory drilling in the area. 
 
¶7.  (SBU) RWE AG is about to start large-scale business 
activity in Turkmenistan and has the potential to become an 
important player in the local energy sector.  On April 16, RWE 
AG and the Turkmen Government signed a Memorandum on Long-term 
Cooperation (reftel).  Among other things, the Memorandum 
stipulates that the two sides will negotiate a production 
sharing agreement (PSA), which will make it possible for RWE 
to explore and develop Block 23 located in Turkmenistan's part 
of the Caspian Sea.  According to the Memorandum, the 
Government and RWE will also negotiate a long-term contract 
for the sale and purchase of Turkmen gas.  According to a 
German Embassy representative, the company is now in the 
process of registering its branch and opening an office in 
Turkmenistan. 
 
¶8.  (SBU) A small German limited partnership, East West 
Connect, recently appeared in Turkmenistan and is worth 
mentioning because of the company's connections.  The 
founder and owner of the company is Rudi Lamprecht, who 
also serves as Executive Advisor to the CEO of Siemens 
and as Vice Chairman of the Board of Nokia Siemens 
Networks.  He reportedly played a key role in bringing 
RWE AG to Turkmenistan and recently had a pair of meetings 
with President Berdimuhamedov at which he discussed 
possibilities for bringing more German companies to 
Turkmenistan.  The company has ambitious plans to serve as a 
bridge for German companies to enter the Turkmen market, 
having apparently been established specifically for that 
purpose.  The fact that Lamprecht is a frequent visitor in 
President Berdimuhamedov's office suggests that he has good 
contacts at the highest levels of the Turkmen Government. 
 
¶9.  (SBU) COMMENT:  There are a number of factors that 
contribute to the success of German companies in Turkmenistan. 
The most important factor is that they have managed to build 
good relations with the highest-ranking government officials. 
Another factor is that German businesses receive strong 
backing from the German Government.  Chancellor Angela Merkel 
is the only G7 leader to have met with President 
Berdimuhamedov.  A German Embassy local employee suggested 
in a meeting with Embassy staff that German companies have 
won the Turkmen Government's favor because they are 
discrete about their dealings with the Turkmen Government. 
END COMMENT. 
 
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