Central Asia News Digest March 19, 2009

Turkmenistan

03.03.2009: During a Cabinet meeting the Turkmen President underlined the necessity of having foreign media outlets in Turkmenistan. According to a Presidential Decree that was signed by Berdymukhamedov, the Turkmen Post Ministry has to sign a contract with two Russian agencies for the subscription of Russian newspapers (for the amount of 27 million Rubel). The subscribed Russian newspapers should be delivered to Turkmen administrative bodies, ministries and scientific institutions. Citizens still will not be able to read foreign press.

Commentary: The information vacuum in Turkmenistan started in 2002, when President Niyazov announced a ban on all foreign print media. Until today, the subscription of foreign press is not allowed, also the import of such products. Meanwhile the Turkmen press is still not accepted by its citizens, mainly because of the missing independent information and knowing the fact that all media are state-owned; in addition, only one Turkmen newspaper is published in Russian. A subscription to Turkmen newspapers is mandatory for all civil servants, even employees are obliged to subscribe. The costs are in relation to the salaries in Turkmenistan very high.Social Situation

28.02.2009: According to a Presidential decree the salary of employees working in state-funded institutions will be increased for 10%, as well as pensions and welfare. President Berdymukhamedov already announced such a step in July 2008.

Commentary: An increase of 10% is only „virtual“. After the recent economical reform and the installation of a stable exchange rate to the US-$ prices increased enormously in Turkmenistan: According to ETG-sources they doubled, mainly daily goods at the private markets in the country; it is reported, that some major daily goods reached prices close to the ones in Western Europe. Meanwhile, it became clear that the salary increase did not come into effect for all parts of the society. An ETG source at the Ministry of Finance reported that the Presidential decree only mentioned the average of 10%; the information also says that citizens, who ask for
clarification won‘t get an answer.

02.03.2009: This winter was very calm in Turkmenistan. Nevertheless, prices nearly doubled during this period. In addition, the global financial crisis reached the country: the unemployment rate is also increasing (during the Niyaziv reign, approximately 70%-80%), at the same time the possibility of migrant work in Russia, Kazakhstan or Iran vanished. According to ETG sources, President Berdymukhamedov stopped all running construction projects in the area of energy.

In addition, the Administration is discussing the halt of „Avaza“, a tourism project in the country. Although official protests did not occur during this winter, Turkmen citizens start to talk about the situation more privately on markets and places, where people meet: They say, Berdymukhamedov would be Turkmenbashi II in a critical and ironic tone. Meanwhile, the close circle around the Turkmen President is evaluating the possibility of announcing the social situation in Turkmenistan as a result of the global financial crisis.

Energy:

02.03.2009: Diplomats in Ashkhabad internally are beginning to doubt the results of the test drillings at Turkmen gas fields in 2008. According to a source in Turkmenistan, members of the civil service are not allowed to discuss the issue with Western diplomats.

Economy:

10.02.2009: Although the social situation of the Turkmen people is deteriorating, President Berdymukhamedov during a Cabinet meeting announced the signing of a contract between the Turkmen Government and the Turkish construction company „Bahar Insaat Sanayi we Tijaret A.S.“. The Turkish company will build a huge fountain park with two underpasses of roads on the Makhtymkuly Prospect in the Turkmen capital. According to ETG sources, this project will cost 33 million US-$. The construction should directly start and is planned to be finalized in June 2010. Experts say that on the same ground, a park alley with water fountains already exists
and the car traffic in Ashkhabad is not in need of having a 2-way underpass. ETG sources say that the amount of 33 million US-$ is not the real construction price, but probably doubled.

Commentary: The experience of the above mentiones „price policy“ is well known since the Niyazov times: The Government is looking for companies, which agree to do it that way (mostly construction companies from Turkey and Ukraine): the difference between real costs and the announces price is split between officials and the companies.

Interior Policy:

20.02.2009: Staffers of the oil company „Burren Energy“ were not allowed to travel to London and Milan for a foreign internship, which was planned already nearly two years ago. Though the Turkmen staffers of this company passed all internal requirements and passed all relevant documents to the Turkmen authorities, they were not allowed to leave the country. The decision was announced during a meeting with officials of „Burren Energy“ and the Turkmen Minister for Oil and Gas.

Commentary: According to ETG sources, costs for such internships are normally split between the Government (Ministry for Oil and Gas) and the company; this procedure is the basis of a contract between the Turkmen authorities and relevant international companies, in order to continue the education of Turkmen employees. The Ministry in this case demanded that the costs for such education programmes should only be paid by the private sector and not in cooperation with the Turkmen authorities anymore.

Foreign Policy:

12.03.2009: The Turkmen leadership is pressing to increase the dialogue with NATO/US regarding the „Line Communication“ programme of the security organization. According to a source inside the Presidential Administration in Ashkhabad, President Berdymukhamedov said internally that the US problems in Afghanistan will deteriorate and Turkmenistan has to use this situation for its own benefit. The information source said that Berdymukhamedov‘s main aim is to get more financial support from NATO for countries, that allow the transport of goods for the allied forces in Afghanistan.

Eurasian Transition Group