Turkmenistan shows active dynamics of cooperation with Russia

Expert Valentin Trapeznikov noted that this is evidenced by the increase in foreign trade turnover between the countries in 2021.

Observer of the economy of Turkmenistan Valentin Trapeznikov in an interview to CentralAsia.news highlighted the significant intensification of trade and economic cooperation between Turkmenistan and the Russian Federation.  

Fuel and energy complex

The qualitative expansion of the Turkmen-Russian cooperation is evidenced by the data of foreign trade. In particular, in 2021, the foreign trade turnover between the two countries increased significantly. For example, for 8 months of this year the volume of exports of Turkmen products to the Russian Federation amounted to almost 680 million US dollars, and showed an increase of 92% compared to the previous year. This is the second largest figure after China. Turkmenistan has a positive trade balance with the Russian Federation, amounting to more than 270 million US dollars.

The structure of Turkmenistan’s exports to Russia has been qualitatively diversified in recent years.

The most significant export volumes fall on the fuel and energy complex. First of all, the supply of Turkmen natural gas to the Russian Federation within the framework of the five-year contract concluded with Gazprom in 2019. The annual volume of supplies is 5.5 billion cubic meters.

Oil and gas processing products are an important export item. In particular, aviation kerosene, motor gasoline, liquefied gas, calcined petroleum coke, hydrotreated diesel fuel, and fuel oil are supplied to the regions of the Russian Federation. The supply of polyethylene purchased by the Russian business corps has increased significantly.

The volumes of transit of Turkmen oil through Russia amounted to more than 1.5 million tons in January-October 2021. According to this indicator, Turkmenistan ranks second after Kazakhstan.

Turkmen «expansion» into the Russian market

Textile products are traditionally included in the range of export supplies. Thus, according to the information of the State Customs Service of the Russian Federation, representatives of Russian companies regularly purchase cotton yarn, denim, carpets and other industry products. 

The development of the production of building materials significantly expands the export potential of Turkmenistan. Thus, sheet glass, Portland cement and other products are supplied to Russia.

The development of greenhouse complexes has given a significant impetus to external supplies of agro-industrial products. For example, in 8 months of 2021, Turkmenistan doubled the export of greenhouse tomatoes to Russia, bringing its volume to 32 thousand tons. This provided Turkmenistan with the 4th position in the ranking of the largest suppliers of greenhouse tomatoes in the Russian Federation. According to foreign analysts, the Turkmen «expansion» into the Russian market has become a real sensation and domestic tomatoes are actively competing with the products of other countries.

Almost 200 Russian companies in Turkmenistan

The bulk of Russian exports are machinery, equipment and vehicles, chemical products, food products and agricultural raw materials, metals and metal products, timber and pulp and paper products, as well as mineral products.

About two hundred Russian companies are intensively developing the Turkmen market, and also participate in the implementation of many socio-economic programs of our state. 

Considering the colossal oil and gas potential of Turkmenistan, this sector of the economy shows active Turkmen-Russian interaction. 

For example, since 2011 the Russian company TATNEFT has  been successfully implementing a service contract aimed at increasing oil production in Turkmenistan. This has already made it possible to produce more than 280 thousand tons of oil.  In December 2020, cooperation with this company was extended until 2028. Expansion of the scale of the project, according to forecasts, will make it possible to produce additional 770 thousand tons of oil.

New opportunities for cooperation are opened with the Memorandum of Understanding between the Governments of Turkmenistan and Azerbaijan on joint exploration and development of the Dostluk field. In this aspect, the meetings of the President of Turkmenistan Gurbanguly Berdimuhamedov with the head of the Russian PJSC Lukoil Vagit Alekperov were important. They have discussed the development of hydrocarbon resources of the Caspian region with the participation of the company.   

Russian companies Rosneft and Gazprom are also interested in the development of Turkmen oil and gas fields.

Partnership in the transport sector is the «backbone» of relations

Bilateral cooperation in the transport sector is actively developing. Thus, Russian companies KAMAZ OJSC, UAZ OJSC, GAZ Group Management Company, ChTZ-Uraltrak LLC and others are supplying automotive equipment, road-building machines and industrial tractors to the Turkmen market. 

During the period of bilateral cooperation, KAMAZ delivered over 11 thousand vehicles of more than 70 modifications to Turkmenistan. Training and service centers of the company have been established in Ashgabat and regional capitals. During 2021, KAMAZ plans to supply another 463 units of vehicles to Turkmenistan, and in 2022 it is going to start its production in our country.

OJSC GAZ Group supplies light commercial vehicles, buses, cars, special equipment and spare parts.

Since 2009, six oil tankers Sumbar, Hazar, Jeyhun, Etrek, Alaja, Kenar have been built at the Russian Krasnoye Sormovo Shipyard in the Nizhny Novgorod region.

In October this year, passenger and freight diesel locomotives manufactured by the Russian JSC Transmashholding were delivered to Turkmenistan. Kazan Helicopter Plant delivers ambulance helicopters to our country.

Russian entities in the construction market

Serious projects are implemented by Russian companies in the construction of various infrastructure facilities. For example, the Russian Joint Stock Company «Vozrozhdenie» has been participating in large-scale government projects for the development of road transport infrastructure for 12 years. 

This year, the company built a road, main square and parade square in front of the new state tribune of Turkmenistan. Next year, it will complete the construction of a mudflow protection system for the Turkmen capital. Now about 1,500 citizens of our country and only 30 Russians work at the facilities built by the company. The management of the company highly appreciates the qualifications of Turkmen specialists, as well as the quality of the used domestic building materials.    

Russian companies invest in various sectors of the economy of our country. For example, work  to overhaul and modernize the facilities of the production association «Maryazot» with the attraction of investments from a number of Russian joint stock companies is underway.

The scale of bilateral cooperation can be seen within the videoconference of the Turkmen-Russian economic forum on cooperation in production and investment held in October this year. The forum was attended by representatives of ministries, government organizations, banking and financial structures, Chambers of Commerce and Industry, large companies in the field of trade, industry, construction, information technology, mechanical engineering, logistics from more than 50 regions and cities of Russia.

Turkmenistan was represented by the heads and specialists of ministries and departments, the Chamber of Commerce and Industry, the Union of Industrialists and Entrepreneurs, enterprises and companies producing import-substituting and export-oriented products.

23 11 2021, 09:47
Photo source: CentralAsia.news

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