Turkmenistan economic development and discussion

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discussion about the growth and development of the Turkmen economy
 

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A big cargo of mineral fertilizers was purchased from Turkmenistan by consumers in Spain and Italy, Trend reports citing the "Neutral Turkmenistan" newspaper. The cargo has already been loaded onto a ship at the modernized Garabogaz marine terminal.


More than 12,000 tons of nitrogen fertilizers were exported from the Garabogazarkarbamid plant, commissioned in September this year. Another 7,000 tons of carbamide are being prepared for shipment abroad.


In December, more than 200,000 tons of mineral fertilizers were contracted to be sent for export.




The project to construct the Garabogazarkarbamid plant in the city of Garabogaz, Balkan Region, was undertaken by a consortium of Japan’s Mitsubishi Corporation and Turkey’s Gap Insaat. The plant is designed to produce 1.155 million tons of carbamide per year.


Technology from Haldor Topsoe, UOP, Saipem and Uhde Fertilizer is used in the plant.


About a third of the plant’s output is supplied to the domestic market, the rest is exported.
 

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The Turkmen company Gundogar Akymy has signed a contract for the supply of sunflower seeds with the Swiss Syngenta Agro AG, Trend reports citing the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET).


In addition, contracts were signed between the Turkmen company Agzybir Ojak and the Turkish companies Erensoy Gida Ve Ambalaj Makinalari San. ve Tic. Ltd. Sti and Ektam Makine San. ve Tic. A.S. for the purchase of equipment for the manufacture of bottled products and packaging of refined oil, the report said.


It was earlier reported that two sunflower oil plants will be put into operation in Turkmenistan in 2019.




Turkmen companies Gundogar Akymy and Kamilligin Gozbasy are implementing the projects to construct the plants.


In total, 24,000 tons of sunflower oil will be produced annually.


Commissioning of the plants is scheduled for 2019.
 

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The International Conference of Ministers of Transport of the States Parties to the Agreement on Transit and Transport Cooperation (Lapis Lazuli) began its work in the Avaza National Tourist Zone in the city of Turkmenbashi on November 28.


Deputy Chairman of the Cabinet of Ministers of Turkmenistan M.Chakiyev, First Deputy Prime Minister of Azerbaijan Yagub Eyyubov, First Deputy Prime Minister of Uzbekistan Achilbai Ramatov, Minister of Transport and Infrastructure of Turkey Jahit Turhan, Minister of Transport of the Islamic Republic of Afghanistan Tahmasi Mohd Hamid and Deputy Minister of Economy and Sustainable Development of Georgia Akaki Sagirashvili participated in the event.


Among the key topics of the forum are the launch of test deliveries through the Lapis Lazuli transport corridor connecting the regions of Central and South Asia, the Caspian and Black Sea basins, the Mediterranean, coordination of tariffs for transportation along this route and other aspects of the project.


Speaking at a conference, Deputy Minister of Transport, Communications and High Technologies Elmir Velizade declared that investments in infrastructure projects will increase Azerbaijan’s GDP directly by 240 million manat, indirectly by 140 million manat, a total of 380 million manat, and also lead to the opening of 5,500 new jobs.


Also in the first part of the international conference, delegations discussed issues such as the role of interstate cooperation in the development of the international transport corridor Lápis-Lazuli and the importance of logistics companies in the development of transport corridors.


Afghanistan, Turkey, Turkmenistan, Azerbaijan and Georgia signed an agreement on the creation of the Lapis Lazuli transport corridor which is set to connect the five countries on November 15, 2017.


The trans-regional corridor will encompass mainly railways and highways, which will connect the city of Torghundi in the Afghan province of Herat with the port of Turkmenbashi on the shore of the Caspian Sea via Ashgabat.


From Turkmenbashi, goods will be able to travel further by ferry to Baku, where they would be placed on train cars and continue westward to Europe across the South Caucasus via the newly launched Baku-Tbilisi-Kars railway. Further, the corridor will pass through Tbilisi to Ankara with branches to Poti and Batumi, and, then, from Ankara to Istanbul.


Consultations on the creation of the transport corridor began back in 2012. The initiative seeks to improve transport infrastructure and procedures (including for road, rail, and sea), increase exports, and expand the economic opportunities of citizens in countries benefiting from this new transport corridor.


Barriers to regional trade and transit and transaction costs will be reduced, in part, through a new Custom Integration Procedure and, between Afghanistan and Turkmenistan, a new Cross-Border Transport Agreement. Its projected impact is considerable not only because most of the needed infrastructure is already in place, but also because most of the investment required will focus on improving policy and governance.


The name ‘Lapis Lazuli’ is derived from the historic route that Afghanistan’s lapis lazuli and other semiprecious stones were exported along, over 2,000 years ago, to the Caucasus, Russia, the Balkans, Europe, and North Africa.
 

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A business delegation of Saudi Arabia, led by Bader bin Bahishan Al-Busais, visited Turkmenistan with a working visit to study investment opportunities, Trend reports with reference to Arab News.


A series of meetings of the Saudi delegation with the leadership of Vnesheconombank, the ministries of industry and trade, and the Union of Industrialists and Entrepreneurs of Turkmenistan took place in Ashgabat.


It was earlier reported that Turkmenistan is of investment interest for oil companies of Saudi Arabia, such as Saudi Aramco. The company considered investing in oil and gas production, including countries with access to the Caspian Sea, such as Turkmenistan, which owns the largest mineral resources.




It is worth noting that Saudi Arabia supports the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which started in December 2015. Deliveries are expected in 2020.
 

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Turkmen Foreign Ministry hosted a meeting with Adviser to the Ukrainian Foreign Minister Victor Mayko, Trend reports referring to the Turkmen Foreign Ministry.


The parties, noting the high level of bilateral relations between the two countries, stressed the need to further strengthen mutually beneficial cooperation, the report said.


At the meeting, the sides discussed issues related to development of bilateral cooperation in the political, trade, economic, cultural and humanitarian areas.


In 2016, Ukraine’s foreign trade with Turkmenistan amounted to $440.04 million, according to the Ukrainian side.

The main export items to Turkmenistan are railway cars, agro-industrial products, goods of the chemical, pharmaceutical and woodworking industries.


Exports from Turkmenistan to Ukraine consisted mainly of oil refining products, wool and cotton, as well as textiles.
 

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Europe is interested in receiving Turkmen gas, Jurgen Krahn, director general of French company CIFAL SA, said in an interview with Turkmenportal, Trend reports.


"This is an interesting project," he said. "After the signing of the Convention on the Legal Status of the Caspian Sea, the process of ratification of this treaty is underway in all the Caspian countries."


He noted that the agreement makes it possible to talk about the Trans-Caspian Gas Pipeline.


"I think that if Turkmenistan and Azerbaijan can quickly agree, this process may begin," he said, adding that a new period is beginning, which allows the EU and Turkmenistan to negotiate a new document.


"I think the signing of this framework agreement may take place next year," he noted. "In any case, the EU has great interest in this. As far as I know, a delegation of Turkmenistan recently visited Brussels, where it held talks. In Germany, as far as I know, there is also great interest in helping Turkmenistan."


The project to lay a 300-kilometer gas pipeline along the bottom of the Caspian Sea to the shores of Azerbaijan is optimal for the delivery of Turkmen gas to the European market. Further, the Turkmen gas can be delivered to Turkey, which borders European countries.


Turkmenistan declared its readiness to supply Europe with an annual volume of up to 30 billion cubic meters of gas over 30 years.


The negotiations on the delivery of Turkmen gas to Europe have been conducted since 2011. The Southern Gas Corridor, which includes the Trans-Caspian project, remains a priority for the EU.


In May 2015, the Ashgabat Declaration on Energy was signed by the ministers of Energy of Azerbaijan, Turkey, Turkmenistan and Vice-President of the European Commission for Energy Union Maros Sefcovic.
 

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Turkmenistan inaugurated Wednesday a $3.4 billion petrochemical plant as the Central Asian state seeks to both obtain greater value from natural gas and reduce its reliance on exporting it to China and Iran.


The plant should produce 386,000 tons of polyethylene and more than 81,000 tons of polypropylene -- both used to make plastic -- by processing 5 billion cubic meters of gas per year, according to fuel and energy chief Myratgeldi Meredov.


President Gurbanguly Berdymukhamedov, who participated in the opening of the facility on the coast of the Caspian Sea, said it is part of the country's "extensive plans to diversify the Turkmen energy complex, to increase the economy's export potential by launching production of gas and chemical products that are in demand on the global markets."


While Turkmenistan sits on the world's fourth largest gas reserves, its isolation means it has struggled to take full advantage of them.


Its dependence on a few neighboring countries as customers was driven home when Russia decided to halt imports of Turkmenistan gas three years ago, leaving the country with just China and Iran as customers. Russia, however, is set to resume the purchases next year.
The chemicals produced at the plant will be exported to China, India, Turkey, Europe and other Central Asian countries via a new naval port.
Built by a consortium that includes South Korean firms LG International Corporation, Hyundai Engineering Corp. Ltd and Japanese company TOYO Engineering, the plant was financed by the Japan Bank for International Cooperation.
 

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A new 110-kilovolt power transmission line was commissioned in Turkmenistan on July 26.


Turkmen President Gurbanguly Berdimuhamedov in his address to the participants of the opening ceremony of the Rabat-Kashan–Kalay-Nau power transmission line, said that the line has become the result of effective cooperation between Turkmenistan and Afghanistan, based on the principles of friendship, brotherhood and good-neighborliness.


The Rabat-Kashan–Kalay-Nau power line that is being commissioned today is yet another example of constructive steps taken by Turkmenistan towards boosting supplies of electric energy to neighboring countries.


In addition to the existing Imamnazar–Andkhoy and Serhetabat–Herat lines, the new power line will become the first to deliver additional volumes of electricity along the Kerki–Hamyap–Garkyn, Marchak (Turkmenistan)–Marchak (Afghanistan) and Rabat-Kashan–Kalay-Nau routes.


Its capacity will reach 100 megawatts per hour. Commissioning of these power lines will help boost electricity supplies to different provinces of Afghanistan.


Currently, there are 13 power plants in Turkmenistan. Six new power plants have been built in the last five years alone.


Earlier it was reported that the total amount of electricity produced in Turkmenistan by 2024 is planned to be increased up to 33 billion kilowatt-hours, which is 27.2 percent more than the amount planned for 2018.


Turkmenistan sells electricity to Afghanistan, Iran and Turkey. Official Ashgabat is also studying the prospects of supplies to the markets of the Caucasus, as well as Central and South Asia.


The Central Asian country’s electricity export ambitions are getting strong support from the Asian Development Bank (ADB), which announced its intensions to provide $150 million to advance Turkmenistan’s “electric interconnections with neighboring countries” in its Country Operations Business Plan for 2018-2019.
 

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Prospects for the creation of an international transit-transport corridor Afghanistan-Turkmenistan-Azerbaijan-Georgia-Turkey (Lazurit) were discussed at the meeting between Turkmen and Turkish presidents. The budget of the project is estimated to exceed $2 billion.


The name ‘Lapis Lazuli’ is derived from the historic route that Afghanistan’s lapis lazuli and other semiprecious stones were exported along, over 2,000 years ago, to the Caucasus, Russia, the Balkans, Europe, and North Africa.


President of Turkmenistan Gurbanguly Berdimuhamedov received Turkish Minister of Foreign Affairs Mevlut Chavusoglu.


The commitment of the Turkish side to the traditionally friendly relations with Turkmenistan, which are successfully developing across their spectrum, was reaffirmed.


Berdimuhamedov noted with satisfaction the constructive, progressive nature of the interstate dialogue. Turkmenistan and Turkey, the head of state said, are linked by fruitful diverse cooperation that meets both mutual interests and well-being goals in the regional and global dimension.


During the meeting, the head of state and his guest exchanged views on the prospects for the Turkmen-Turkish partnership in the context of the reached bilateral agreements and realizing the existing solid potential in various fields. Among the priority areas of cooperation were the trade and economic sphere, energy, the transport and communications sector, etc.


The Turkish Foreign Minister also expressed deep gratitude to President Gurbanguly Berdimuhamedov for the support provided to representatives of Turkish business, who show great interest in further strengthening mutually beneficial relations with Turkmenistan, where a favorable investment climate has been created and large infrastructure projects and major reform programs are being implemented.


An integral and important component of interstate relations is the humanitarian sphere, which is also due to the historical, cultural and spiritual community that unites the peoples of the two countries. In this area, a wealth of experience of joint work has been accumulated and there are favorable opportunities for building up fruitful cooperation in the area of education and science, culture and art, as well as sports and tourism.


Along with this, it was emphasized that Turkmenistan and Turkey effectively cooperate in the format of authoritative regional and international organizations, demonstrating the coincidence or similarity of positions on topical issues of our time, primarily relating to ensuring global peace and security and achieving the Sustainable Development Goals. In this regard, the Turkmen leader and his guest also spoke in favor of continuing the practice of regular contacts between the foreign affairs agencies.


At the end of the meeting, President of Turkmenistan Gurbanguly Berdimuhamedov and the Minister of Foreign Affairs of the Republic of Turkey Mevlut Chavushoglu expressed confidence that the long-term interstate partnership, relying on the inviolable bonds of friendship and the continued goodwill of the parties, will continue to develop dynamically, filled with new concrete content.


Afghanistan, Turkey, Turkmenistan, Azerbaijan and Georgia signed an agreement on the creation of the Lapis Lazuli transport corridor which is set to connect the five countries on November 15, 2017.


The trans-regional corridor will encompass mainly railways and highways, which will connect the city of Torghundi in the Afghan province of Herat with the port of Turkmenbashi on the shore of the Caspian Sea via Ashgabat.


From Turkmenbashi, goods will be able to travel further by ferry to Baku, where they would be placed on train cars and continue westward to Europe across the South Caucasus via the newly launched Baku-Tbilisi-Kars railway. Further, the corridor will pass through Tbilisi to Ankara with branches to Poti and Batumi, and, then, from Ankara to Istanbul.


Consultations on the creation of the transport corridor began back in 2012. The initiative seeks to improve transport infrastructure and procedures (including for road, rail, and sea), increase exports, and expand the economic opportunities of citizens in countries benefiting from this new transport corridor.


Barriers to regional trade and transit and transaction costs will be reduced, in part, through a new Custom Integration Procedure and, between Afghanistan and Turkmenistan, a new Cross-Border Transport Agreement. Its projected impact is considerable not only because most of the needed infrastructure is already in place, but also because most of the investment required will focus on improving policy and governance.


The name ‘Lapis Lazuli’ is derived from the historic route that Afghanistan’s lapis lazuli and other semiprecious stones were exported along, over 2,000 years ago, to the Caucasus, Russia, the Balkans, Europe, and North Africa.
 

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A meeting with a delegation led by director of the office for promotion of international projects of the Japanese Ministry of Economy, Trade and Industry Takashi Yoshioka was held in the Turkmen Foreign Ministry, Trend reports citing the Turkmen Foreign Ministry.


The sides drew attention to the strategic partnership and expressed interest in its development in the political, trade, economic and cultural spheres. The cooperation in the transport sector was also stressed.


The Turkmen delegation has recently held several business meetings in Tokyo with president of the Japan International Cooperation Agency (JICA) Shinichi Kitaoka. JICA has expressed interest in cooperation on social projects.


The Turkmen side proposed Japan to consider the possibility of participating in the project of modernization of the Turkmen railways.


Turkmenistan intends to purchase modern locomotives.


The Kazakhstan-Turkmenistan-Iran railway, which was commissioned in 2014, may give a powerful impetus to the development of the Caspian region.
 

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A meeting with an Indian delegation consisting of heads and representatives of about 30 pharmaceutical companies was held at the Union of Industrialists and Entrepreneurs of Turkmenistan.


The Union of Industrialists and Entrepreneurs of Turkmenistan was represented by the heads of enterprises dealing with the purchase and sale of medicines.


The delegation held a presentation of the medicines produced by Indian companies.


The sides discussed the possibility of expanding the partnership and establishing direct contacts with Turkmen entrepreneurs.


Turkmenistan has been cooperating with India for a long time on pharmaceutics, in particular, Ajanta Pharma has created an enterprise in Ashgabat that produces more than 80 types of medicines.

According to plans, in the coming years, local pharmaceutics must meet most of the country's needs.


Experts say this market and its infrastructure may develop through the private capital.
 

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From a geographical, energy, logistic and transport, trade and even political point of view, Turkmenistan should be seriously considered in the context of the initiative to revive the new Silk Way, the official website of the oil and gas complex of Turkmenistan.


There are three important events that occurred in Turkmenistan in 2017-2018, which allow Turkmenistan to become a valuable participant in the new Silk Road and an attractive investment, trading and business partner for European and Swiss companies. Among them are the opening of the modernized International Sea Port in Turkmenbashi in May 2018, the adoption of the law of Turkmenistan on free economic zones in October 2017 and the signing of the Convention on the Legal Status of the Caspian Sea on August 12, 2018.


Taking into account these events, new prospects are opening up for Swiss business in Turkmenistan.


The international sea port in Turkmenbashi, one of the largest in the Caspian Sea, claims to become an important link between Europe, the Middle East, the Black Sea region, South and Southeast Asia. It is intended to intensify the development of trade not only from Turkmenistan but also from landlocked neighboring countries - Uzbekistan, Kyrgyzstan, Tajikistan and Afghanistan.


The Turkmenbashi port acquired a number of new facilities, including a shipyard, a ferry and passenger terminal, a container terminal, a general cargo terminal, a bulk cargo terminal, and a polypropylene terminal.


The Law on Free Economic Zones (FEZ), signed on October 10, 2017, by the President of Turkmenistan, opens the way to creating safe, transparent and competitive legal, tax and business conditions for attracting foreign companies and investors to Turkmenistan.


It is a fact that the Caspian Treaty eliminates legal barriers to the construction of the Trans-Caspian gas pipeline from Turkmenistan to Azerbaijan.


Officially, bilateral relations between Turkmenistan and the Swiss Confederation date back to May 8, 1992, when the Protocol on the Establishment of Diplomatic Relations was signed. The Embassy of Turkmenistan operates in Switzerland, as well as the Permanent Mission at the UN Office in Geneva.


Turkmenistan and Switzerland are building their foreign policy with regards to their continued commitment to the principles of permanent neutrality. At the same time, both countries are adapting their neutrality to new international conditions, actively speaking in support of the interested political dialogue, which does not accept any violent measures or any kind of aggression.
 

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I've noticed with Turkmenistan, most of their economic revival relies within the oil/gas industry, and supplying electricity. are they looking at diversifying a bit in other sectors such as tourism, agriculture etc.? I mean relying only on 2 industries in order to strengthen their economy is not the most brilliant move.
 

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I've noticed with Turkmenistan, most of their economic revival relies within the oil/gas industry, and supplying electricity. are they looking at diversifying a bit in other sectors such as tourism, agriculture etc.? I mean relying only on 2 industries in order to strengthen their economy is not the most brilliant move.
I do agree with you on the fact, them relying on their petrol industry and electricity sector for economic growth is quite ignorant however they have multiple other projects in the works which will help revive their economy, strengthen exports

  1. the Trans-Caspian pipeline: which will be jointly constructed by Turkmenistan and Azerbaijan, with some help from EU countries. the pipeline with link up with the SGC pipeline, and Turkmen oil will also be able to supply petrol to countries such as Hungary, Austria etc.
  2. the Lapis Lazuli route: which create some 5,500 new jobs for the economic trade route, which help somewhat bolster Turkmenistan's exports to Afghanistan, Pakistan, Turkey and the rest of Europe.
  3. TAPI Pipeline: which will export Turkmen and Russian gas to Afghanistan, Pakistan and India. along with the oil exports, Turkmenistan is hoping that TAPI allows them to export other goods to the said countries.
  4. Agriculture: not nearly as big or strong as the 3, however because of some food shortages in Turkmenistan, they have signed multiple agricultural deals with Switzerland, Turkey and a few other places in order to bring up food production which will increase exports as well.
 
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