Turkmenistan Business & Economy - The Times Of Central Asia

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Middle Corridor

Azerbaijan–Kazakhstan Ties Could Reorient Central Asian Integration

The five Central Asian presidents met with Azerbaijan’s Ilham Aliyev in Avaza on October 8 for the Consultative Meeting of the Heads of State of Central Asia and the Republic of Azerbaijan. Azerbaijan’s participation brings a principal outlet for Central Asian trade into the six governments’ economic deliberations. Within their consultative format, the states can coordinate industrial projects with the transport services through which regional producers reach foreign markets. If Azerbaijan and Kazakhstan connect cross-Caspian transport more closely to industrial cooperation, the corridor could become an organizing axis for regional integration. The Case for Trans-Caspian Integration Closer Azerbaijan–Kazakhstan cooperation would make cross-Caspian transport more dependable if trains reach Kazakhstani ports in time for Caspian sailings and cargo arriving at Azerbaijani terminals connects with onward services through Georgia. A 2023 assessment by the International Bank for Reconstruction and Development (IBRD), also called the World Bank, identified trade among Kazakhstan, Azerbaijan, Georgia, and Europe as a driver of corridor demand, giving regional exporters a place alongside China–Europe transit traffic. Onward connections from the China–Kyrgyzstan–Uzbekistan (CKU) railway now under construction could run through Turkmenistan and across the Caspian to Azerbaijan, providing an alternative to routes through Iran. Conflict involving Iran strengthens Azerbaijan’s position as the more dependable western outlet for Europe-bound exports. Greater predictability could offset the cost of a Caspian crossing by reducing the stocks firms must hold against delays and the losses caused by interrupted deliveries. Extending the operating coordination developed with Kazakhstan to these southern connections could make Azerbaijan commercially preferable for Central Asian exporters serving European markets. Kazakhstan and Azerbaijan occupy the principal positions in this prospective reorientation. Together, they represent approximately one-third of the six countries’ population but account for more than three-fifths of their nominal GDP. Yet bilateral merchandise trade amounted to only $470.7 million in 2025. Their combined economic weight is thus disproportionate to the commerce presently linking them. The infrastructure and institutions connecting industrial investment to markets across the Caspian could give the two countries a basis for organizing wider regional integration, provided firms sustain commercial relationships through those connections. The Bilateral Basis for Regional Integration Export commitments depend on the cost and timing of the complete transport service. At Avaza, Kazakhstan’s President Kassym-Jomart Tokayev attached “particular importance” to developing the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. His Azerbaijani counterpart, Ilham Aliyev, advocated joint investment, manufacturing, and entry into foreign markets. For firms undertaking joint production, the commercial viability of Aliyev’s proposal would depend on transport coordinated from departure to delivery. Kazakhstan is developing the Middle Corridor along with the eastern branch of the International North–South Transport Corridor, which links Russia and Iran through Kazakhstan and Turkmenistan. At Avaza, Turkmenistan’s President Serdar Berdimuhamedov supported the development of North–South corridors in addition to East–West routes. Tokayev also highlighted the continuing importance to Kazakhstan of the North–South route in cooperation with Russia. Kazakhstan’s multi-vector approach thus extends to transport infrastructure: the Middle Corridor strengthens westward access without displacing the commercial connections maintained...

Regional Trade

Central Asia and Azerbaijan Discuss Trade Expansion at Turkmenistan Summit

The leaders of Central Asia and Azerbaijan met in Turkmenistan on October 8, with expanding trade between their countries high on the agenda. Kazakhstan's President Kassym-Jomart Tokayev called for trade among the six countries to rise to at least $20 billion, up from approximately $13 billion in 2025. The eighth Consultative Meeting of the Heads of State of Central Asia and Azerbaijan was held in the resort of Avaza, with Azerbaijan participating as a full member of the grouping for the first time. According to Tokayev, trade between the six countries accounted for just 8% of their combined trade turnover last year. He proposed that governments develop a joint action plan to increase that share. Other leaders put forward proposals for closer economic ties. Uzbekistan's President Shavkat Mirziyoyev called for greater cooperation in manufacturing and a Central Asia-Azerbaijan Business Forum in 2027, while Kyrgyzstan's President Sadyr Japarov proposed creating a shared e-commerce platform to make regional products more accessible. One problem is the insufficient integration of national markets. Even where countries share a border, trade is hampered by logistical constraints and differences in business operating conditions. Tokayev proposed bringing existing and planned cross-border trade and logistics complexes and industrial centers into a single network. The idea is to enable businesses from different countries to sell finished products to one another and produce them jointly. However, Kazakhstan's major transport projects are not designed solely for its neighbors. Astana is investing in railways and highways to increase freight transit between China, Central Asia, and Europe. The projects include the Moyynty–Kyzylzhar, Darbaza–Maktaaral, and Bakhty–Ayagoz railway lines, as well as the Aral–Caspian highway project. The Middle Corridor holds a particularly important place in these plans, running from China through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia to Europe. It allows freight to bypass Russian territory and is viewed as an alternative to traditional northern routes. Kazakhstan is now proposing to explore linking the Middle Corridor with the Trump Route for International Peace and Prosperity (TRIPP), a transport project through Armenia intended to connect mainland Azerbaijan with Nakhchivan. Plans for the route were outlined during talks in Washington in August 2025, and Armenia and the United States signed a framework agreement in June 2026. The route is to remain under Armenian sovereignty and jurisdiction. Astana has already established a technical group to assess its potential participation in TRIPP. For now, Tokayev is proposing that the integration of the two transport initiatives be discussed only at the expert level. At the Avaza summit, Turkmen President Serdar Berdimuhamedov emphasized the importance of developing North–South transport corridors alongside East–West routes. Turkmenistan also supports the eastern branch of the International North–South Transport Corridor, which connects Russia with Iran through Kazakhstan and Turkmenistan. However, an increase in freight traffic through Central Asia does not in itself mean that trade among its countries will grow. For that to happen, local producers need access to neighboring markets. The summit also addressed cooperation over shared water resources, with Tokayev proposing a regional framework...

Galkynysh Gas Field

Turkmenistan Expands Galkynysh Gas Field With $5.1 Billion Fourth Phase

Turkmenistan has renewed its focus on the $5.1 billion fourth phase of the Galkynysh gas field, with Gurbanguly Berdimuhamedov telling the Halk Maslahaty on September 23 that the expansion would increase gas production and boost the country’s export capacity. The CNPC-built project, launched in April, is expected to add ten billion cubic meters of commercial gas capacity a year. The fourth phase involves drilling production wells and building a commercial gas treatment facility. CNPC is also responsible for gas gathering and treatment systems, pipelines, and related infrastructure. Although CNPC is building the project, Turkmenistan is financing the expansion itself. In March, state-owned Türkmengaz was authorized to sign a turnkey design-and-construction contract with CNPC Amudarya Petroleum Company Ltd. Work on the fourth phase officially began on April 17. Galkynysh, in southeastern Turkmenistan, is one of the world’s largest gas fields and is central to Ashgabat’s plans to expand gas exports. China remains the main buyer of Turkmen gas, with supplies flowing through the Central Asia-China gas pipeline via Uzbekistan and Kazakhstan. Beijing imports around 30 billion cubic meters of Turkmen gas annually, so the planned additional capacity at Galkynysh would be roughly one-third of current annual supplies to China. Turkmenistan has not said how the additional ten billion cubic meters will be divided between domestic use and exports, or which export routes would carry any additional volumes. One potential outlet is TAPI, the planned Turkmenistan-Afghanistan-Pakistan-India pipeline, with a design capacity of 33 billion cubic meters per year. Construction of the 153-kilometer section from the Turkmen border toward Herat began in September 2024. By mid-September 2026, 122.3 kilometers of pipe had been welded and laid in Herat Province. As previously reported by The Times of Central Asia, construction of TAPI is advancing in Herat, while Turkmenistan is exploring supplying gas to the local Afghan market before the full pipeline reaches Pakistan and India. No timetable has been announced for extending the route beyond Herat.

Digital Policy

Central Asia Common Digital Space Proposed at Astana Roundtable

Experts and business representatives from across Central Asia have proposed mutual recognition of electronic documents to make cross-border business easier. Their draft agreement also calls for closer alignment of rules on data and artificial intelligence. The draft Agreement on Cooperation among Central Asian States in Digital Policy and Artificial Intelligence Governance was presented at a regional roundtable in Astana on September 28. The business-led proposal aims to connect the region’s five digital markets, serving more than 80 million people. The initiative is being developed within B5+1, a business cooperation platform linking the United States and the five Central Asian states and designed as a private sector counterpart to the diplomatic C5+1 format. E-commerce and information technology are among its priority areas. Over the past year, the regional IT & AI working group has held consultations with entrepreneurs, industry associations, and experts. In the previous cycle, consultations involved business communities representing more than 60 companies and organizations from Central Asia and the United States, including Meta, Mastercard, and Google. Under the draft, the five countries would retain their own regulations while making their digital systems and laws more compatible. It covers electronic document management, digital identification, personal data protection, cybersecurity, and AI regulation. The proposals would allow electronic documents, electronic signatures, and digital identification tools to be recognized across borders. This could reduce administrative barriers for companies expanding into neighboring markets. “Our task is not to create another layer of regulation. We need to build digital bridges between the countries of Central Asia. If electronic documents, digital identification, data rules, and approaches to AI are mutually compatible, it will become significantly easier for technology companies to scale across the entire region,” said Aziza Shuzheeva, Chair of the Board of the TechnoWomen non-profit organization. A draft Code of Ethics for the Responsible Use of Artificial Intelligence in Central Asia was also presented in Astana. The document is advisory and sets out common ethical principles for the use of AI across the five countries. Its authors propose that decisions significantly affecting a person’s rights and interests should not be left solely to algorithms. Practices identified as unacceptable include harmful manipulation, exploitation of the vulnerabilities of children and other groups, discrimination, unlawful use of personal data, and the creation of synthetic content for fraud or other harmful purposes. Another priority is the development of language resources and datasets for Kazakh, Kyrgyz, Uzbek, Tajik, and Turkmen. The aim is to improve the ability of AI systems to work with the region’s languages. Similar forms of digital integration are already being developed elsewhere. In the European Union, the European Digital Identity framework is designed to allow digital identity wallets to be used across borders to access public and private services. ASEAN, meanwhile, concluded negotiations at the end of May 2026 on its Digital Economy Framework Agreement, or DEFA, covering digital trade, data, cybersecurity, AI, and other areas of regional digital integration. The proposals also overlap with efforts to digitize transport and trade. On September 28, the...

C5+1

U.S. Links Trusted Digital Infrastructure to Investment at C5+1 Conference

Stronger cybersecurity and trusted digital infrastructure could encourage greater U.S. investment in Central Asia, Mark Cameron said in Astana on September 29. Cameron, deputy assistant secretary in the State Department’s Bureau of South and Central Asian Affairs, was speaking at the C5+1 conference on artificial intelligence. He said data centers and trusted infrastructure would give American companies greater confidence to invest and expand their cooperation across the region. “The strongest house is built on the firmest foundation,” Cameron told reporters, linking cybersecurity to the development of advanced AI. Cameron said Washington sees private companies as central to the process, with government programs helping create conditions for investment and technological cooperation. “The United States has the deep belief that companies, given the opportunity, will find great solutions and new opportunities that many of us have never even considered before,” Cameron said. He said Washington has committed $5 million through CRDF Global for cybersecurity and digital-sector assistance. The support covers incident response, critical infrastructure protection, financial sector security, and cybersecurity policy. The C5+1 format brings together the United States and the five Central Asian countries. The conference comes ahead of Secretary of State Marco Rubio’s planned business delegation to Uzbekistan in mid-October, involving executives from more than 100 American companies alongside talks with the region’s foreign ministers. Kazakhstan Sets Out Its AI Development Model Kazakhstan’s vice minister of artificial intelligence and digital development, Bakhtiyar Mukhametkaliyev, described the development of an AI economy as a five-layer process. Energy comes first, followed by access to chips and graphics processing units (GPUs), information systems, high-quality data, and finally AI agents. Countries that attempt to deploy AI agents before building the infrastructure and data beneath them, Mukhametkaliyev said, are unlikely to realize their full economic value. He also framed data centers as a way for Kazakhstan to convert its energy and resource base into higher-value digital capacity. Mukhametkaliyev stressed that Kazakhstan does not intend to build its emerging AI ecosystem solely for the domestic market. He said the infrastructure should also help neighboring countries develop their AI industries and improve connectivity. He also pointed to drones, space technologies, startups, and workforce reskilling as areas where digitalization could create new markets and occupations. Kazakhstan’s ties with U.S. technology companies are also expanding. NVIDIA CEO Jensen Huang is scheduled to make his first visit to Kazakhstan on October 23, as the country develops data centers and NVIDIA-based computing infrastructure. Regional Plans for AI Development Kyrgyzstan focused on practical AI applications, human oversight, education, and local-language models. Niyazaly Bazarbaev, adviser to the minister of digital development and innovative technologies, said Kyrgyz and other Central Asian languages remain insufficiently represented in existing AI systems. He discussed work involving a Kyrgyz-language corpus of roughly five million words and efforts to prepare the school curriculum for an AI-driven economy. Tajikistan presented AI as a presidential priority. Hakim Ismoilzoda, first deputy director of the Agency for Innovation and Digital Technologies, highlighted Tajikistan’s initiatives at the United Nations on AI and its safe, secure,...

Investment Forum

Ashgabat Hosts Turkmenistan Investment Forum This Week

Turkmenistan’s government says it expects more than 800 participants from dozens of countries to attend an investment conference in Ashgabat this week. A diverse group of more than 100 speakers is expected to participate in the Turkmenistan Investment Forum on October 1–2, including Saudi Prince Mansour bin Mohammed Al Saud, Deputy Trade Minister Mahmut Gürcan of Turkey, and Economy Minister Gevorg Papoyan of Armenia. The forum is being organized by Turkmenistan’s finance and foreign ministries, in partnership with Turkmen Congress, a company that organizes international forums and other events. It aims to highlight the country as a place of untapped economic potential, endowed with “the world’s fourth-largest natural gas reserves, a steadily diversifying economy, and major infrastructure modernization underway,” according to conference organizers. Turkmenistan is seeking to expand its role as a transit point on the Middle Corridor, a trade network linking China and Central Asia to Europe via rail and marine infrastructure. Even so, foreign investors have long had concerns about tight government controls, opaque bureaucracy, and other challenges in the Central Asian country. Delegates to the forum at the Yyldyz Hotel in Turkmenistan’s capital will discuss diversification of export routes for oil and gas, development of the Trans-Caspian Transit Corridor, public-private partnerships, agriculture, and the efficient use of natural resources. Representatives from the World Bank, the Asian Development Bank, and other international institutions will participate.