Russia is interested in developing cooperation with Turkmenistan and is ready to implement joint projects, supply various products, and expand areas of investment cooperation. This was stated by Dmitry Volvach, Deputy Minister of Economic Development of Russia, during the 9th meeting of the High-level Group on Trade and Investment Support within the framework of the Intergovernmental Turkmen-Russian Commission on Economic Cooperation.
The meeting, which took place in Moscow last week, explored how to strengthen trade and economic ties, including boosting mutual trade and pursuing joint ventures in industry, energy, construction, state land cadastre, and education.
Trade turnover between Turkmenistan and Russia is growing
According to the Ministry of Economic Development of Russia, in the period from January to October 2023, the mutual trade turnover between the two countries in physical terms increased by 8% to 535,000 tons with exports growth by 5.5% and imports – 21% up.
Supplies of food products and agricultural raw materials from Turkmenistan to Russia posted 33% growth while chemical and rubber products exported surged by 57%.
“The bilateral economic potential is still great, and there are good opportunities for expanding cooperation both in the oil and gas and financial fields, as well as in a number of industries, agriculture, transport and other sectors of the economy,” said Deputy Minister of Trade and Foreign Economic Relations of Turkmenistan Kerimberdi Kurbanov.
The Governments of Russia and Turkmenistan are developing an economic cooperation program
The meeting focused on finalizing the 2024-2026 economic cooperation program and exploring how Russian export support institutions can back trade and investment deals between Russian and Turkmen businesses.
Russian Investment in Turkmenistan’s Industries
Russian investment in Turkmenistan spans across various sectors, with a strong focus on infrastructure and industry. According to the Russian Ministry of Economic Development, a total of 36 projects involving Russian participation are currently underway, representing an investment of approximately 255 billion rubles ($2.87 billion).
Breakdown by Project Stage:
- Operational: 11 projects.
- Investment: 21 projects are in the initial stages of investment.
- Implementation: 10 projects are actively being implemented.
- Product Supply: An additional 15 projects, worth around 62 million rubles ($697,000), envisaged
- the supply of various products to Turkmenistan.
Sector Breakdown:
Infrastructure: 9 projects totaling 188.8 billion rubles ($2.12 billion).
Oil and Gas: 3 projects worth 24.6 billion rubles ($276.6 million).
Industry: 19 projects valued at 38 billion rubles ($427.3 million) and a separate contract worth 14 billion rubles ($157.4 million) for supply of 300,000 tons of high-grade metal blocks.
What projects are Russian companies set their sights on in Turkmenistan?
Russian companies are interested in participating in the following projects in Turkmenistan:
- Modernization, reconstruction and construction of energy facilities
- Shipbuilding
- Supplies of mining equipment and mainline freight three-section locomotives to Turkmenistan
- Reconstruction of the car repair plant in Gyzylarbat
- Implementation of future projects on modernization and electrification of railway lines in Turkmenistan.
Russia introduces Turkmenistan to the activities of the EAEU
As it was reported at the meeting, the Ministry of Economic Development of Russia is holding a series of introductory seminars in Turkmenistan on the functioning of the Eurasian Economic Union and its advantages.
At the moment, 14 online seminars on various aspects of the Eurasian economic integration have already been held.
Meeting of the Turkmen-Russian Commission for Economic Cooperation
At the end of the meeting, the participants discussed in detail the meeting of the Intergovernmental Russian-Turkmen Commission on Economic Cooperation, to take place in Ashgabat at the end of January 2024. ///nCa, 29 December 2023 (based on press release issued by the Ministry of Economic Development of Russia)