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### Viewing cable 09ASHGABAT283, IRAN/TURKMENISTAN: ENERGY WAS THE FOCUS OF

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09ASHGABAT283 | 2009-03-02 12:38 | 2011-06-26 00:00 | CONFIDENTIAL | Embassy Ashgabat
Appears in these articles: http://www.mcclatchydc.com/2011/04/17/112290/state-department-cables-reveal.html

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    VZCZCXRO6693
    PP RUEHAG RUEHBC RUEHBI RUEHCI RUEHDBU RUEHDE RUEHDIR RUEHKUK RUEHLH
    RUEHPW RUEHROV RUEHSR
    DE RUEHAH #0283/01 0611238
    ZNY CCCCC ZZH
    P 021238Z MAR 09
    FM AMEMBASSY ASHGABAT
    TO RUEHC/SECSTATE WASHDC PRIORITY 2388
    INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
    RUCNCIS/CIS COLLECTIVE
    RUCNMEM/EU MEMBER STATES COLLECTIVE
    RUCNIRA/IRAN COLLECTIVE
    RUEHAK/AMEMBASSY ANKARA 4877
    RUEHIT/AMCONSUL ISTANBUL 3121
    RHMFISS/CDR USCENTCOM MACDILL AFB FL
    RUEAIIA/CIA WASHDC
    RHEFDIA/DIA WASHDC
    RUEKJCS/JOINT STAFF WASHDC
    RHEHNSC/NSC WASHDC
    RUEKJCS/SECDEF WASHDC

` `

    C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000283

    SIPDIS

    STATE FOR SCA/CEN, NEA/IR AND INL

    E.O. 12958: DECL: 03/02/2019
    TAGS: IR PGOV PREL SNAR TX
    SUBJECT: IRAN/TURKMENISTAN: ENERGY WAS THE FOCUS OF
    BERDIMUHAMEDOV'S TEHRAN VISIT

    REF: ASHGABAT 0033

    Classified By: Charge Richard Miles, per reasons  1.4(b) and (d).

    ¶1. (C) SUMMARY:  Ashgabat-based diplomats with close ties to
    the Iranian Embassy say that increased energy cooperation was
    the focus of talks between President Berdimuhamedov and
    Iranian leaders during a February 13-15 visit to Tehran.  In
    addition to an energy pact, in which Iran reportedly agreed
    to pay USD 300 per bcm for Turkmen gas, the two sides agreed
    to the establishment of an intergovernmental economic
    commission, an accord on the exchange of prisoners, and a
    framework agreement on Iran's role in developing
    Turkmenistan's Yolatan gas field.  Berdimuhamedov is also
    expected to attend the regional Economic Cooperation
    Organization (ECO -- currently chaired by Iran) meeting in
    Tehran on March 11th.  END SUMMARY.

    ¶2. (C) Diplomatic sources in Ashgabat who meet regularly with
    Iranian Embassy diplomats told Iran Watcher this week that
    energy cooperation between Iran and Turkmenistan topped the
    agenda in President Berdimuhamedov's 13-15 February visit to
    Iran, when he met with President Ahmadinejad and Supreme
    Leader Khamenei.  Michael Wilson, the EU-TACIS representative
    in Turkmenistan for the past ten years and a close friend of
    Iranian Ambassador Forqani, said that Berdimuhamedov and
    Khamenei held a three-hour meeting during the visit in which
    the Supreme Leader is said to have made clear that Iran sees
    itself as the "key player" for the region's energy security,
    a paramount concern for Turkmenistan.  In Wilson's view, both
    Berdimuhamedov and Khamenei operate on a "much higher
    intellectual plane than people give them credit for" when it
    comes to discussions of global energy security.  He said that
    Turkmenistan, uncomfortable dealing with private businesses,
    prefers working directly with governments such as Iran, which
    it increasingly sees as the "third way" as it moves away from
    the risks of exporting gas through just one major pipeline
    (to Russia).

    ¶3. (C) According to Hakan Chengiz, the Turkish DCM, who meets
    regularly with diplomats from the Iranian Embassy and was
    briefed by them on the visit, Berdimuhamdov and Ahmadinejad
    signed three separate Memoranda of Understanding (MOUs) and
    one more preliminary framework agreement:  The first provides
    for the creation of a Turkmenistan intergovernmental economic
    commission.  The new commission is expected to operate in the
    same fashion as a similar commission in place between
    Turkmenistan and Turkey.  While it will probably be headed
    officially on the Turkmen side by President Berdimuhamdov,
    Chengiz anticipates that the President will delegate that
    role to either FM Meredov or DFM Hajiev.  (NOTE: Hajiev, a
    Farsi speaker, was in Tehran in December to represent
    Turkmenistan at the regional ECO meeting and entered into
    several agreements with Iran at that time.  Meredov
    traditionally represents the Turkmen on the
    Turkey-Turkmenistan Commission.  END NOTE.)

    TURKMENISTAN TO PAY LESS FOR GAS THAN RUSSIA, BUT MORE OVER
    THE LONG RUN

    ¶4. (C) In the second MOU, according to Chengiz, Iran has
    reportedly agreed to pay USD 300 per bcm for Turkmen gas for
    the first six months of 2009.  Chengiz noted that he learned
    most of the details (including the price) of the second MOU
    from the Turkmen, not the Iranians.  Although Iran had been
    pushing for more than a year for Turkmenistan to increase its
    gas exports to them from eight to 14 bcma, the Turkmen will
    continue to hold them to eight, but have agreed to allow Iran
    to participate in developing a portion of the Yolatan gas
    field.  The Iranians told Chengiz that they are hopeful that
    Iran will ultimately be able to increase their gas imports
    once gas from that field becomes available.  He noted that
    the Yolatan deal has been part of a framework agreement only,
    with details to be set forth in a later, more formal
    agreement.  The framework agreement reportedly mentions a
    goal of yearly exports to Iran reaching 14 bcma.

    ¶5. (C) Chengiz said that although Russia will initially pay
    more than USD 300 per bcm during the first six months of
    2009, their agreement with the Turkmen is per quarter of
    2009, and set to decrease progressively throughout the year,
    so that, on average, Iran will ultimately pay more than
    Russia for Turkmen gas.  According to Chengiz, the Iranians
    he spoke with acknowledged that Russia was getting a better
    deal and were "not happy about it."  He said that Iran would
    like to continue negotiations in the area of energy
    cooperation with a view to increasing its role in
    Turkmenistan's energy sector, and particularly increasing
    sales of gas to Iran.

    PRISONER EXCHANGE

    ¶6. (C) The third agreement signed in Tehran reportedly
    relates to the exchange of prisoners between Iran and
    Turkmenistan.  Chengiz understands that this is more an issue
    for Iran, as there are apparently a number (he did not know
    how many) of Iranian citizens currently in Turkmenistan for
    drug-related offenses.  (NOTE:  As reported reftel, consular
    issues, including the status of Iranians detained in
    Turkmenistan, was the subject of an MOU that DFM Hajiev and
    Ahmadinejad signed in Tehran in December.  Not only have a
    number of Iranian truck drivers been detained in Turkmenistan
    for alleged narcotics smuggling, the drivers continue to
    complain about visa reciprocity problems and poor facilities
    for their use in Turkmenistan.  In addition, there have
    reportedly been problems in the border villages on both
    sides, including an incident two years ago when an Iranian
    sheepherder inadvertently crossed into Turkmenistan and was
    shot and killed.  END NOTE.)

    ¶7. (C) COMMENT: From all accounts, the Iranians were anxious
    for Berdimuhamedov to visit and are delighted that he plans
    to be at the ECO summit later this month.  It is Iran, after
    all, that has the greatest stake in promoting closer ties
    with Turkmenistan, particularly in the energy sector, but
    also in ensuring that economic and cultural ties with its
    northern neighbor, with which it shares its longest border,
    are enhanced.  This is a prospect that can only help Iran as
    it works to boost its influence in Central Asia.  END
    COMMENT.
    MILES

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