Rights groups expressed concern over detention and mistreatment of activists, journalist and relatives ahead of EU Parliamentary 19-23 June visit. Government accused foreign nationals including French diplomat, OSCE official and BBC journalist, of participation in plot against government. Government threatened to cut all gas supplies to Russia unless prices raised; talks with Ukraine also ended without gas deal 30 June.

Central Bank Chairman Jumaniyaz Annaorazov dismissed 12 May; observers connected recent high turnover in Bank leadership with investigations into dubious gas deals. EU Parliament delayed decision on trade deal with Turkmenistan to July.

Prosecutor General Atajanova, seen as ultra-loyalist of President Niyazov, resigned, citing poor health; subsequently admitted corruption in televised show trial. Gurbandurdy Durdykuliev, detained in 2004 after requesting permission to hold demonstration, discharged from psychiatric institution, week after U.S. legislators called for his release. European Parliament delayed vote on trade deal with Turkmenistan amid NGO objections on human rights grounds.

European Parliament committee recommended supporting trade agreement with Turkmenistan; NGOs appealed for parliament to vote down proposal, citing country’s appalling human rights record. President Niyazov sacked senior energy officials for alleged corruption and reshuffled cabinet.

Rare protests held after government pension cuts left quarter of all pensioners without benefits.

President Niazov visited Moscow 22-23 January for talks on energy issues, including shipment of Turkmen gas to Russia and Ukraine.

Parliament passed law granting President Niyazov direct control over vital oil and gas sector. Niyazov appointed Gurbanmyrat Atayev new energy minister; announced will head government body to tackle bribery in sector and abolished state company Turkmenneftegaz, dividing oil and natural gas sales between Turkmenbashi refinery complex and state-controlled Turkmengaz.

President Niyazov fired several top energy officials for alleged abuse of office and misappropriation of funds prior to gas deal with Ukraine. UN General Assembly committee passed resolution expressing concern about Turkmenistan’s repression of opposition groups, censorship of media and corrupt legal system.

Rubber-stamp parliament rejected President Niyazov’s  public  call  for  2009  elections,  saying  president should remain for life. Niyazov fired 2 governors, 11 district heads for failing to meet cotton production targets; gave 8,000 prisoners amnesty prior to Independence Day celebrations. NGO “Forum 18” reported increased pressure against Islamic religious practice under pretence of combating “Wahhabism”.

Authorities strongly denied Russian media reports of U.S. plans to open military base. Major shake-up of oil and gas sector continued with reported sentencing of former executives Veliyev and Charyev on corruption charges.