Turkmenistan Business & Economy - The Times Of Central Asia

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Unpacking the Effects of Trump’s Tariffs on Central Asia

Trade analysts across Central Asia generally agree that the immediate impact of the United States' tariff policy on the export dynamics of their nations will likely be minimal, as observed in past experiences, except for Kazakhstan. However, there is a palpable concern regarding potential unforeseen consequences arising from a broader global trade conflict. Notably, the timing of the Trump administration's announcement regarding global tariffs on imports coincides with a period when Central Asian countries are actively working to enhance their regional trade relationships. This new tariff policy raises significant doubts about the authenticity of recent U.S. efforts to promote increased trade and investment in the region. The mixed signals coming from Washington may lead Central Asian leaders to re-evaluate their current trade partnerships, especially as they consider the benefits of strengthening ties with China and Russia against the attractiveness of expanding commerce with the United States. Similarly, the European Union may find an opportunity to improve its position, while India could leverage the Chabahar route (a multi-modal transportation route connecting India, Iran, Afghanistan, and potentially Central Asia and Europe). It is worth noting that the market is primarily situated in Asia, and this alternative could have adverse long-term effects on the United States. Kazakhstan, acknowledged as the United States’ largest trading partner in Central Asia, is poised to face significant repercussions from introducing new tariffs set at 27%. In 2024, trade relations between the U.S. and Kazakhstan reached an impressive total of $3.4 billion, with $1.1 billion in U.S. exports to Kazakhstan and $2.3 billion in imports from Kazakhstan to the U.S. However, a statement from the Kazakh Trade Ministry indicates that exports to the U.S. primarily consist of crude oil, uranium, silver, and other raw materials, all exempt from these tariffs. In 2024, Kazakhstan exported only $95.2 million worth of goods, which will now incur surcharges – a relatively modest figure compared to the country’s overall foreign trade turnover of $141.4 billion. Trade analysts suggest that Kazakhstan has little cause for concern, viewing this situation more as a psychological impact than a serious economic threat. Resource-driven Central Asian economies, such as Kazakhstan, may even find enhanced opportunities in the expanding Asian market. Trade dynamics in Central Asia reveal a complex landscape, especially concerning the United States. In 2024, Uzbekistan managed to export a modest $42.4 million worth of goods to the US, a small fraction considering its total foreign trade turnover, which reached an impressive $66 billion for that year. This stark contrast highlights the limited engagement of Uzbekistan in the American market. With its total trade turnover of $16 billion in 2024, Kyrgyzstan similarly struggled with exports to the US, which amounted to merely $16.7 million. This reflects a broader trend where Central Asian economies exhibit low volume exports to the US, suggesting significant barriers or challenges in establishing a foothold in this lucrative market. Tajikistan's economic performance presented an even more sobering picture. Recording a total trade turnover of $8.9 billion, the country achieved only $4.6 million...

Business & Economy Turkmenistan Turkmenistan Business & Economy

Turkmenistan Bets on Dairy Industry and Coffee Business

Turkmenistan is ramping up its investments in the food processing sector, with two prominent companies announcing major expansions in the dairy and coffee industries. The developments were unveiled during an exhibition marking the 17th anniversary of the Union of Industrialists and Entrepreneurs of Turkmenistan. Erkin Agro Launches Dairy Expansion with European Cattle Erkin Agro, a member of the Union, announced plans to construct a large-scale milk processing plant and associated livestock farms. Deputy Director General Begench Chariev shared the news at the exhibition. The company is finalizing its business plan and preparing to procure dairy cattle from Europe. Representatives will soon travel to Germany, Hungary, and the Netherlands to negotiate with suppliers. The initial phase involves importing 300 to 400 cows, with a total of 2,000 head planned. The first shipment is expected by the end of spring, with a second to follow in the fall. The project emphasizes environmental sustainability. Erkin Agro is adopting organic farming practices and minimizing the use of chemicals, including fertilizers and pesticides. These efforts aim to ensure not only high-quality dairy products but also ecologically responsible livestock operations. NesilCoffee Ventures into Freeze-Dried Coffee Meanwhile, entrepreneur Tedjenmurat Bayramdurdyev, owner of NesilCoffee, announced the company’s entry into premium coffee production with the launch of a freeze-dried coffee line. The announcement was made during the same exhibition, according to Business Turkmenistan. Freeze-dried coffee, considered a high-end product, is made through lyophilization, a process in which frozen coffee is vacuum-dried to preserve its flavor, aroma, and nutrients. This method distinguishes it from standard instant coffee, which is produced via spray drying. The new production facility is located in Ak-Bugday etrap, Ahal province. Outfitted with Italian and German equipment, the plant sources coffee beans from Europe, Colombia, Guatemala, Ethiopia, and Tanzania. NesilCoffee manages its own Arabica–Robusta blend ratios and monitors quality through an in-house laboratory. Currently, the company produces five varieties of whole-bean coffee (Espresso, Intenso, Classic, La Crema, Special) and four types of instant coffee (Caramel Latte, Vanilla Latte, Coffee Latte, and Cappuccino). The production process adheres to ISO 9001, ISO 22000, and Halal standards. The facility has an annual production capacity of 4,000 tons, with plans to scale up to 10,000 tons. Growing Food Industry Since launching one of Central Asia’s largest coffee plants in 2024, NesilCoffee has secured a leading position in the domestic market and is now pursuing export opportunities. These developments reflect a broader national strategy to diversify and strengthen Turkmenistan’s food sector. With investments in livestock and high-quality food processing, companies like Erkin Agro and NesilCoffee are positioning Turkmen business for sustainable, internationally competitive growth.

Business & Economy Turkmenistan Turkmenistan Business & Economy Turkmenistan Features

Turkmenistan to Supply Gas to Turkey Through Swap Deal Starting March 1

Turkmenistan will begin supplying 1.3 billion cubic meters of natural gas to Turkey on March 1 through a swap agreement, according to Oğuzhan Akyener, President of the Turkish Center for Research on Energy Strategies and Policies (TESPAM). Akyener discussed the deal in an interview with News.Az on February 24. Under the agreement, Turkmenistan will send gas to Iran, which will then transfer an equivalent amount to Turkey. Iran will consume Turkmen gas in its northeastern regions, freeing up its own supply for Turkey. Akyener noted that other potential routes for transporting Turkmen gas were considered but faced infrastructure and logistical challenges: Via Azerbaijan: This would require new pipelines from Turkmenistan to Baku and an expansion of the South Caucasus Pipeline (SCPx). Via Russia: The Western Line (Batı Hattı), which could have been used, is not operational. Through Turkey's TurkStream or Blue Stream pipelines: These remain possible alternatives, provided there is available capacity. Turkey aims to position itself as a major energy hub, Akyener explained. The country has significantly expanded its gas infrastructure, diversified its supply sources, and introduced regulations to allow the re-export of imported gas. According to TESPAM, with the right investments, Turkey could increase gas imports from: Turkmenistan – up to 65 billion cubic meters Azerbaijan – 15 billion cubic meters Kazakhstan – 10 billion cubic meters Uzbekistan – 15 billion cubic meters Iraq – 58 billion cubic meters Eastern Mediterranean – 25 billion cubic meters These developments could boost Turkey’s annual gas trade capacity to 300 billion cubic meters, further solidifying its role in global energy markets. Despite holding some of the world’s largest natural gas reserves, Turkmenistan exports only about 40 billion cubic meters of gas per year, with 35-36 billion cubic meters going to China. However, Turkmenistan faces economic risks due to China’s control over pricing, leading it to seek new buyers and diversify exports. Turkmenistan is exploring options to supply gas to Europe, following Azerbaijan’s model to gain European political support. However, alternative export routes face significant challenges. One such route is the TAPI Pipeline (Turkmenistan-Afghanistan-Pakistan-India), a long-planned project that has been delayed due to political and security issues. Ongoing conflicts between Afghanistan and Pakistan, along with tensions between Pakistan and India, have stalled progress. Additionally, China has been accused of using its influence to prevent the pipeline’s completion. Given these obstacles, Akyener believes Turkey remains the most realistic and viable export destination for Turkmenistan’s gas. Strengthening energy cooperation between the two nations could deepen economic and political ties among Turkic-speaking countries and further integrate them into the global energy market.

Central Asia Uzbekistan Turkmenistan Tajikistan Tajikistan Business Economy Turkmenistan Business & Economy Kyrgyzstan Business & Economy Uzbekistan Business & Economy Kazakhstan Kyrgyzstan Business & Economy Kazakhstan Business & Economy

Central Asia Receives Half of Eurasian Investments from China, Turkey, Iran, and Gulf States

The Eurasian Development Bank (EDB) has released a new study analyzing mutual direct investment (MDI) flows across the Eurasian region. The report examines investment trends between 13 Eurasian countries - Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan - and external partners, including China, Turkey, Iran, and the Gulf states, from 2016 to the first half of 2024. Key Findings on Investment Trends According to the EDB, total MDI stock in the region reached $90.4 billion by mid-2024, reflecting a 6.4% increase from 2023. China remains the largest investor in the Eurasian region, holding an MDI stock of $58.6 billion at the end of H1 2024, accounting for 64.8% of the total. Other major investors include: Turkey - $12.3 billion (13.6%) United Arab Emirates (UAE) - $12.2 billion (13.5%) Iran - $3.2 billion (3.5%) Saudi Arabia - $2.3 billion (2.5%) Qatar - $1.6 billion (1.8%) Among these, Iran showed the highest investment growth, doubling its investments since 2016, with 90% directed toward Azerbaijan. Turkey demonstrated broad sectoral diversification, while Saudi Arabia and Qatar emerged as new investors, making their first investments in 2021 and 2024, respectively. Investment Distribution in Eurasia The largest investment recipients in the Eurasian region include: Russia - $23.5 billion (26%) Turkmenistan - $17.5 billion (12.5%) Kazakhstan - $15.5 billion (11.1%) Mongolia - $10.3 billion (7.4%) Uzbekistan - $8.8 billion (6.3%) Central Asia received 51% of all investments from China, Turkey, Iran, and the Gulf states, totaling $46.2 billion, an increase of 25% since 2022. Outbound Investment from Eurasia The report also highlights outbound investments from the Eurasian region, which totaled $49.4 billion, doubling since 2016. Turkey received 80% of these investments, with a significant portion originating from Russia. Sectoral Trends: Energy, Manufacturing, and Greenfield Investments China continues to expand its investments in energy and manufacturing, although its traditional focus on extractive industries has declined. As of mid-2024, Chinese investment in mining and resource extraction stood at $36.2 billion, comprising 61.7% of its total investments in Eurasia. Other notable sectoral trends include: Energy sector - Chinese investment grew 2.1-fold in 18 months to $4.1 billion, with 85% directed toward Uzbekistan. Manufacturing sector - Investment increased 8% to $11.8 billion, with most projects concentrated in Central Asia. The Gulf states are also expanding their investments in the region: The UAE invested $12.2 billion, with 90% of its projects in Central Asia. Saudi Arabia increased investments from $300 million in 2021 to $2.3 billion in 2024, primarily in Uzbekistan’s power sector. Qatar made its first major investment in Kazakhstan in 2024, committing $1.6 billion to the telecom sector. Rise of Greenfield Investments Greenfield projects - new businesses and infrastructure developments - remain the dominant form of MDI, totaling $57 billion, nearly double the 2016 level. These projects now account for 63% of total investments, driven by the economic growth of Central Asia and increasing investor interest in energy, manufacturing, and extractive industries.

Environment Turkmenistan Turkmenistan International Affairs Turkmenistan Business & Economy Turkmenistan Environment

High Methane Emissions May Hinder Turkmenistan’s Gas Exports to Europe

High methane emissions could pose a significant obstacle to Turkmenistan’s entry into the European gas market, according to an updated report by the U.S. Department of Energy, published on February 6. The main findings of the study were summarized by Eurasia Review on February 19. The report, which examines oil and gas production in the Caspian region, notes that four countries, Azerbaijan, Kazakhstan, Turkmenistan, and Uzbekistan, account for 3% of global energy production. Turkmenistan’s Gas Reserves and Export Ambitions According to the report, Turkmenistan ranks fifth worldwide in natural gas reserves, estimated at 400 trillion cubic feet in 2025. In 2023, the country set a record by producing 3.0 trillion cubic feet of dry natural gas, the highest level since official statistics began in 1992. Currently, Turkmenistan’s primary gas exports are directed to China, but Ashgabat is seeking to expand its market reach, including potential supply routes through Afghanistan. However, the U.S. Department of Energy warns that excessive methane emissions from Turkmenistan’s fields could complicate access to the European market via the Trans-Caspian pipeline. In terms of oil reserves, Turkmenistan holds a relatively modest 600 million barrels, with an average daily production of 275,000 barrels in 2024. Diversification Efforts and New Export Deals Meanwhile, Turkmenistan is taking steps to diversify its export destinations. Gas supplies to Turkey are set to begin on March 1. During a phone call on February 10, Chairman of the Halk Maslahaty Gurbanguly Berdimuhamedov informed Iranian President Masoud Pezeshkian that an agreement had been reached to transit gas through Iran under a swap supply arrangement with Turkish energy company BOTAŞ. Efforts to Reduce Methane Emissions Turkmenistan has also been actively engaging in international initiatives to curb methane emissions. On December 1, 2023, the country joined the Global Methane Pledge (GMP), an initiative aimed at reducing greenhouse gas emissions. In November 2024, Bloomberg reported that the state-owned Turkmengaz plans to hire specialists to measure methane emissions more accurately and is preparing a tender for emission monitoring. That same month, the U.S. Environmental Defense Fund (EDF) released satellite data showing that methane leakage from oil and gas fields in Turkmenistan, the U.S., and Venezuela is significantly higher than official ground-based measurements suggest.

International Affairs Turkmenistan International Affairs Turkmenistan Turkmenistan Business & Economy

Turkmenistan and Euronews Explore Media Collaboration to Boost International Outreach

Turkmenistan's Ambassador to Belgium, Sapar Palvanov, met with the Chairman of the Board of Directors of Euronews, Pedro Vargas David, to discuss prospects for media cooperation. During the meeting, Palvanov outlined Turkmenistan's strategic priorities in media diplomacy, highlighting its active engagement in the international information space. Particular attention was given to the upcoming 30th anniversary of Turkmenistan's neutrality and the International Year of Peace and Trust, declared by the United Nations. He also emphasized Turkmenistan's role in promoting regional stability and strengthening relations with the European Union. Vargas David presented Euronews as one of Europe's leading media platforms, reaching more than 1.2 billion people and broadcasting in 19 languages. He noted that the Euronews website and mobile application attract a monthly audience of 29 million unique users. The Euronews chairman also announced plans to visit Turkmenistan to meet with representatives of local media and government agencies. He reaffirmed Euronews' commitment to neutral and objective coverage of events in Central Asia. The two sides discussed potential areas of collaboration, including promoting Turkmenistan’s tourism sector and cultural heritage on the international stage, as well as increasing coverage of key events in the country. They also explored the possibility of integrating Turkmenistan into existing Euronews programming to enhance information exchange. Euronews is a European 24-hour news channel that provides video reports on global events with multilingual audio commentary. Founded on January 1, 1993, the channel broadcasts in 13 languages, including English, French, German, Spanish, and Italian. Its content is available via cable, satellite, and terrestrial television in 150 countries across Europe, Africa, Asia, Australia, North and South America, and the Middle East.