Russia, Turkmenistan Trade Doubles In H1 2020. From Little Acorns…
Op/Ed by Chris Devonshire-Ellis
Russia / Turkmenistan bilateral trade doubled in H1 2020, compared to the same period in 2019 and amounted to US$87 million, the Russian Ministry of Agriculture has stated. The amounts may appear small but are significant in confirming the impact that increasing infrastructure development is having on Turkmen trade. The country has been essentially closed since the break up of the Soviet Union, and ranks 87th globally in terms of national GDP.
Turkmenistan has significant gas reserves however and a large textiles industry. It also maintains a healthy trade balance – exporting about US$18 billion of products per annum and importing US$14 billion. New infrastructure is being put in place however, and the country is part of the Caspian Sea grouping of Azerbaijan, Iran, Kazakhstan and Russia. Turkmenistan’s new Port of Turkmenbashi is partially responsible for the trade increase.
The Caspian Sea itself is developing as a trade hub between Central Asia and Europe, which we discussed in the recent article Caspian Developing As Maritime & Haulage Hub Between Europe And Asia and Turkmenistan is very much part of this.
Russia’s Ministry of Foreign Affairs has said that the two countries are preparing to sign a contract on a program of economic cooperation for 2020-2022. “The parties are systematically working to increase the volume and expand the range of agricultural products and food to the markets of both countries.” the Ministry stated. “The program will determine priority areas of cooperation in energy, transport, construction, and agriculture.” This year, about 30 agreements were signed between the countries to develop trade and economic cooperation. We can expect to see Turkmenistan make similar progress with its Caspian neighbors and with China, it’s largest trade partner with a whopping 70% of Turkmenistan’s foreign trade. There are direct flights between Ashgabat and Urumqi. Iran, Italy and Afghanistan are also important bilateral partners with Turkmenistan.
Related Reading
- The Man from Ashgabat – Xinjiang’s Key to Central Asia
- Azerbaijan & Turkmenistan Seek To Develop Trade Ties & Transport Corridors
- First Caspian Economic Forum May Help Bring Turkmenistan Into The Belt & Road Initiative
About Us
During these uncertain times and with sanctions in place, our firm helps Russian companies relocate to Asia. We also provide financial and sanctions compliance services to foreign companies operating in Russia. Additionally, we offer market research and advisory services to foreign exporters interested in doing business in Russia as the economy looks to replace Western-sourced products. For assistance please email russia@dezshira.com or visit www.dezshira.com
