Turkmenistan demonstrates steady growth in trade relations with Russia

12:4123.11.2021
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Turkmenistan demonstrates steady growth in trade relations with Russia

Economic observer for Turkmenistan Valentin Trapeznikov commented for CentralAsia.news on the development of trade and economic partnership between Turkmenistan and Russia.

Cooperation in the fuel and energy sector

This year, the Turkmen-Russian trade cooperation demonstrates stable growth. The volume of exports of Turkmen products to Russia increased by 92% compared to 2020 and amounted to almost 680 million US dollars. The trade surplus of Turkmenistan in trade with Russia is more than 270 million US dollars.

A significant part of the Turkmen-Russian trade turnover is occupied by the fuel and energy sector. In 2019, a five-year contract was signed with “Gazprom”; annual supplies of Turkmen gas to Russia amount to 5.5 billion cubic meters.

Also exported to Russia are products of processing hydrocarbon raw materials: aviation kerosene, petroleum coke, liquefied gas, gasoline, diesel fuel and fuel oil, polyethylene.

The volume of transit of Turkmen oil through Russia in ten months of 2021 amounted to more than 1.5 million tons, which puts Turkmenistan in second place after Kazakhstan.

Turkmen “expansion” to the Russian market

Traditionally, the volume of supplies of Turkmen textile products to Russia is large. Russian entrepreneurs regularly purchase cotton yarn, denim, and handmade carpets from Turkmenistan.

In addition, the export of sheet glass, Portland cement and other building materials to Russia has been established.

In recent years, the share of exports of fruits and vegetables to Russia from Turkmenistan has significantly increased. For 8 months of this year, Turkmenistan supplied 32 thousand tons of greenhouse tomatoes to Russia, thus making it fourth in the list of suppliers of these vegetables to the Russian Federation.

Russian business is represented in Turkmenistan by more than two hundred companies

Mainly, Russia supplies to Turkmenistan machinery, equipment, transport, chemical products, food, metal products, agricultural raw materials, pulp and paper products, timber. More than 200 Russian companies work in Turkmenistan, many of them take part in the implementation of a number of socio-economic programs in our country.

Since 2011, “Tatneft” has been implementing a contract in Turkmenistan to increase oil production. More than 280 thousand tons of “black gold” have already been mined. Last year, the contract with “Tatneft” was extended until 2028, which will make it possible to produce more than 770 thousand tons of oil.

The Memorandum of Understanding between the Governments of Turkmenistan and Azerbaijan on joint exploration and development of the “Dostluk” field also opens up new prospects for Turkmen-Russian cooperation. During the meeting of President of Turkmenistan Gurbanguly Berdimuhamedov with the head of “Lukoil” Vagit Alekperov, the prospects of developing oil fields in the Caspian Sea with the participation of “Lukoil” were discussed.

One of the key areas of partnership is the transport sector

Russia supplies to Turkmenistan road-building and agricultural machinery from OAO “KAMAZ”, OAO “UAZ”, MC “GAZ Group”, OOO “ChTZ-Uraltrak” and other manufacturers. Over the years of cooperation, “KAMAZ” has delivered over 11 thousand vehicles to Turkmenistan. “KAMAZ” service centers have been established in Ashgabat and the capitals of the velayats. Next year, “KAMAZ” plans to supply 463 units of vehicles to Turkmenistan, and in 2022 to begin production in our country.
OAO “GAZ Group” exports buses, cars, special equipment and spare parts for them. Since 2009, the “Krasnoye Sormovo” shipyard has built for Turkmenistan six oil tankers “Sumbar”, “Hazar”, “Jeyhun”, “Etrek”, “Alaja”, “Kenar”.

Russian business in the construction sector of Turkmenistan

The “Vozrozhdenie” joint-stock company has been taking part in the implementation of large-scale projects for the development of the road and transport infrastructure of Turkmenistan for 12 years. This year, the company built a road, main square and parade ground in front of the new state stand. It is planned to complete the construction of a mudflow protection system for Ashgabat.

Russian companies are taking part in the overhaul and modernization of the “Maryazot” production association.

In October 2021, a video conference was held on the development of Turkmen-Russian cooperation in the field of investment, with the participation of representatives of ministries and departments, banking and financial structures, Chambers of Commerce and Industry of both countries, representatives of large business and industrial enterprises from more than 50 Russian regions.

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