Turkmenistan Business & Economy - The Times Of Central Asia

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Textile Industry

Turkmenistan Showcases Textile Industry as Labor Concerns Linger

Textile executives from Asia and Europe will gather this week at an event in Turkmenistan, which says it is aligning its textile industry with international standards despite continuing concerns about labor conditions during the annual cotton harvest. More than 30 Turkmen firms are registered to participate in the TurkmenTextile Expo in Ashgabat on June 4-6, according to event organizers. More than 40 companies from China, Turkey, and Italy are also listed as Turkmenistan seeks to upgrade an industry that is critical to the national economy. Discussion topics include brand strategies, the new textile technology for deriving fibers from algae, and the role of traditional textiles in contemporary art and fashion in Central Asia. There will be a fashion show and a presentation about the Eurasian Council for Craft & Design, a platform that was launched this year to promote regional designers and artisans. Katharina Schaus, the German founder of a consultancy called it fits – Organic Textile Partner, will speak about international trends in sustainable cotton production and textile certification. Another speaker, Carola Deiners, will address “responsible sourcing and the expectations of international buyers.” There have long been international concerns and calls for boycotts because of the reported mobilization of public employees and the use of forced labor, including children, in the annual cotton harvest in Turkmenistan. While the government has promised to improve working conditions and has collaborated with international inspectors, critics point to periodic state denials of the problem and an alleged gap between labor rules and their implementation. This year, the International Labour Organization, or ILO, said in a report on the 2025 harvest in Turkmenistan that there had been some progress on working conditions, particularly remuneration, but that some contractual protections and safety and health measures were still lacking. The report said there was still public employee involvement in the harvest and reported recruitment through workplace or administrative channels, as well as the perception of negative consequences for refusal to work in cotton. There was “a clear increase in children’s presence in cotton fields compared to 2024, despite strengthened legal prohibitions,” according to the report. Turkmenistan, meanwhile, has said it is increasing investment in spinning, weaving, knitwear, sewing production, and other aspects of its textile industry. Part of that effort has included the introduction of new production technologies from top textile companies in Japan and Europe. While there is a strong focus on exports, Turkmenistan’s Ministry of Textile Industry launched an online store called Dokma as part of a plan to digitalize the domestic economy. Through Dokma, state media reported last year, “customers can order hundreds of types of textile and leather footwear products — from enterprises within the ministry’s system as well as from private producers.”

Trade Corridors

Opinion: Eurasia’s New Corridors Are More Than a Transit Race

Across Eurasia, new transport corridors are usually described as instruments of rivalry: routes to bypass Russia, ports to outflank competitors, or rail links to shift influence between regions. The conflict around Iran, the rivalry between India and Pakistan, instability in the Afghanistan-Pakistan zone, crises in the Middle East, sanctions, competition over transport routes, and growing struggles for transit influence all reinforce the image of a continent divided by political contradictions. Increasingly, this is the lens through which Eurasia is viewed. The development of transport routes and connectivity is now often explained through the logic of rivalry. Some corridors are described as alternatives to others. Certain ports are positioned against competing ports. Routes are increasingly perceived as tools of competition, circumvention, or geopolitical influence. The continent can also be viewed differently. Alongside political crises, another reality is visible: the continent continues to connect itself through new routes and networks. Railways, ports, energy grids, dry ports, container corridors, digital cables, and trade chains are gradually linking spaces that only recently were seen as separate regions. In many ways, Eurasia has always been a space of movement, exchange, and connectivity. The Silk Road Was a Network, Not a Single Route A recent article by News Central Asia made a simple but important observation: the Silk Road functioned because it belonged to everyone. This idea contains one of the central lessons of Eurasian history. The Silk Road was never a single road. It was not one unified highway built according to a master plan or controlled by a single center. For centuries, the continent was connected by a vast network of caravan routes, maritime pathways, mountain passes, cities, and trade hubs through which goods, people, knowledge, and ideas circulated. Some routes gained importance while others temporarily declined. States, empires, and commercial centers changed. New pathways emerged. Yet the network itself endured. The strength of the Silk Road lay not in one route, but in the multiplicity of connections. When one corridor became unsafe, trade shifted elsewhere. When political conditions changed, commerce adapted to a new geography. The continental network remained flexible and multilayered. This offers an important lesson for today’s Eurasian space as well. Many modern transport corridors did not emerge from nothing. In many respects, they follow historical logic. Railways have replaced caravan paths, dry ports have succeeded old trade hubs, and container routes continue along directions in which goods moved for centuries. Corridors and the Logic of Rivalry Today, most transport and economic corridors are interpreted as competing projects. Nearly every new route is framed through confrontation, alternatives, or attempts to bypass another direction. The Middle Corridor is often described as an alternative to northern routes. The International North-South Transport Corridor is presented as a separate geo-economic axis. Trans-Afghan projects are portrayed as competitors to other links between Central and South Asia. Chabahar and Gwadar are depicted as rival ports. Even the South Caucasus transport hub is increasingly viewed through the prism of struggles over control of routes and flows. Yet historically,...

Middle Corridor

Can Caspian Cargo Fleets Meet Middle Corridor Demands?

Construction of infrastructure along the Middle Corridor, also called the Trans-Caspian International Trade Route, to ship goods between China and Europe is progressing at a frantic pace. When Russia launched its full-scale invasion of Ukraine in late February 2022, it inadvertently gave a new impetus to the development of a trade network through Central Asia and the South Caucasus that had been slowly taking shape since the end of the 1990s. One of the most formidable challenges along the Middle Corridor is boosting maritime cargo across the Caspian Sea. Steps are being made, including some significant recent moves, but the capacity of shipping east-to-west over the Caspian Sea faces challenges in meeting the ever-growing demand for commercial vessels. By Leaps and Bounds In 2022, the volume of cargo through the Middle Corridor was some 1.5 million tons, more than twice the amount transported in 2021. In 2023, it topped 2.7 million tons, in 2024 was about 4.5 million tons, and in 2025 it was expected to be approximately 5.2 million tons. Turkish President Recep Tayyip Erdogan visited Kazakhstan on May 13-14, where his host, President Kassym-Jomart Tokayev, said the figure could reach 10 million tons “in the near future,” and are predictions it could happen as soon as 2027. The roads, railways, and port facilities along the Middle Corridor are expanding rapidly. However, according to a report from Azerbaijan’s Trend news agency in mid-May, the Azerbaijani Caspian Shipping Company (ASCO) says that since 2013, only “a total of 35 new vessels have been commissioned.” The Merchant Fleets of Kazakhstan and Turkmenistan On the eastern side of the Caspian Sea, Kazakhstan and Turkmenistan have been working to increase their maritime shipping. Both countries invested heavily in upgrading their Caspian ports, in Kazakhstan’s case at Aktau and Kuryk, and for Turkmenistan at Turkmenbashi City. Since the end of April, both countries have moved to boost their potential to ship cargo across the Caspian. Kazakhstan’s state railway company, Kazakhstan Temir Zholy (KTZ), announced on April 30 that it would build its own maritime fleet starting with six new vessels, each with a deadweight of up to 9,900 tons and able to carry up to 537 twenty-foot equivalent units (TEU). Once completed, those six cargo ships will join the two dry cargo and three container vessels in the Caspian Sea operated by Kazakhstan’s state maritime shipping company Kazmortransflot. The three container ships – Berkut, Sunkar, and Barys – all started operation in 2019, have a deadweight of 5,200 tons, and can each carry up to 350 TEU. The two dry cargo ships, the Beket Ata and Turkestan, have a deadweight of 5,467 tons and can carry 4,182 tons. On May 12, the dry cargo ship Gadamly arrived at the Baku International Sea Port. The Gadamly is Turkmenistan’s first dry cargo vessel and is able to carry up to 240 TEU. A second cargo vessel, Manzil, should be launched before the end of this year. Arif Aghayev, the deputy chairman of Azerbaijan Railways, said at...

Food Security

Turkmenistan Pushes for Food Security with International Help

As Turkmenistan works to modernize food production, representatives from dozens of foreign companies were in the country this week for meetings on the agricultural and food industries as well as the packaging of goods. The Agro Pack Turkmenistan-2026 event reflected the Central Asian country’s efforts to turn the corner on reported food shortages, import dependence and high prices over many years – and evolve as an exporter. The impact of climate change on farming yields, along with recent shipping disruptions and higher fuel and transport costs linked to the Iran war, pose challenges to many regions working to maintain a stable supply. The Food and Agriculture Organization, a U.N. agency dedicated to food security, signed a deal to open an office in Turkmenistan in January as the country stepped up its campaign to improve production and quality with international help. Visiting Turkmenistan at the time, FAO Director-General Qu Dongyu said it was the last country in the region without “representation” of the U.N. agency and that a “turning point” had arrived. “In Turkmenistan, traditional agriculture has its limits,” Qu said. “But through innovation and modern technology, you can unleash the biggest potential of your land in this region.” During his visit, Qu said he had spoken to President Serdar Berdimuhamedov for one hour – far longer than he had expected. This week, Berdimuhamedov said in a message to participants in the May 12-14 Agro Pack conference that the state was coordinating with foreign companies to introduce “high technologies and innovative initiatives into large investment projects.” In addition, the president said, state-backed private Turkmen producers are making progress in “farming, livestock farming, the development of poultry complexes, greenhouse farms, meat and milk processing, the production of confectionery, fruit juices, juices and processed vegetables and melons.” The conference was held at Turkmenistan’s Chamber of Commerce and Industry in Ashgabat and drew diplomats and business executives from Pakistan, Azerbaijan, Türkiye, China, and other countries. Azerbaijani companies participated in the exhibition, according to Azerbaijan’s embassy. One was Gözel Seeds, which has seed breeding operations in Spain, Türkiye, Azerbaijan, and Uzbekistan. In another development, Kirill Zaitov, director of the Russian company AgroExport, said at the conference that there are plans to increase wheat flour supplies to Turkmenistan to 400 tons per day. Currently, the company exports 6,000 tons of products to Turkmenistan every month, according to the Business Turkmenistan website. Reports of food problems, including in Turkmenistan’s military, have persisted until recently. However, Turkmenistan reported a successful spring sowing campaign for potatoes and other crops that aims to increase domestic supply and reduce the need for imports.

Afghanistan

Opinion: The Southern Dimension of the Middle Corridor – Afghanistan’s Role in Eurasia’s New Logistics Landscape

Afghanistan’s integration into the Trans-Caspian International Transport Route (TITR) is extending beyond local logistics and evolving into one of Eurasia’s key geo-economic projects. Amid the global transformation of supply chains, Central Asia has an opportunity to move beyond its role as a transit periphery and become an active participant in shaping new economic corridors, creating a full-fledged “southern dimension” of Eurasian connectivity. Two Routes: Strategic and Operational Two main directions for Afghanistan’s integration into the Eurasian transport system are currently under discussion, each reflecting a distinct development logic: strategic and pragmatic. The “Eastern Branch” (Termez-Mazar-i-Sharif-Kabul-Peshawar) is traditionally viewed as the primary trans-Afghan route. Its key advantage is direct access to the ports of Karachi and Gwadar, providing the shortest connection between Central Asia and the Indian Ocean. At the same time, geography makes the project highly complex. The route passes through the central and eastern regions of Afghanistan, including the Hindu Kush mountain range, where long tunnels and bridges would be required. This would sharply increase construction and maintenance costs, extend implementation timelines, and heighten security and infrastructure risks. According to available estimates, the project could cost around $5 billion and handle 15-20 million tons of cargo annually. However, the lengthy investment cycle and dependence on political stability mean implementation remains a long-term prospect. The “Western Branch” (Turgundi-Herat-Kandahar-Spin Boldak) represents an alternative logistics corridor based on more favorable geography. Western Afghanistan is characterized by predominantly flat, semi-arid terrain, reducing the need for complex engineering structures and allowing the project to be implemented in phases. This significantly lowers capital costs, shortens construction timelines, and reduces infrastructure risks. The western route’s initial capacity is estimated at 7-10 million tons of cargo annually, making it the more realistic option for medium-term planning. An additional advantage is its geo-economic flexibility. Via Herat, the route could be integrated not only southward through Pakistan, but also westward through Iran, providing access to Persian Gulf ports. This would transform it into a multi-directional corridor capable of serving several logistics flows simultaneously. The Eastern Branch, therefore, remains the strategic option offering the shortest route to the ocean but requiring substantial investment and time. The Western Branch, meanwhile, presents a more pragmatic solution: faster to implement and more flexible from a geo-economic standpoint. The Role of Turkmenistan and Kazakhstan in the “Western Maneuver” The implementation of the western trans-Afghan corridor depends on close coordination between two key regional players, Kazakhstan and Turkmenistan, which form the northern foundation of the future route by providing access to the Caspian Sea and, beyond it, global markets. Astana and Ashgabat are effectively creating a new geo-economic framework that could transform Central Asia from an isolated region into a strategic crossroads linking the Caspian Sea with the Indian Ocean. In 2026, Kazakhstan moved toward deeper institutionalization of the initiative, making the route through Herat and Kandahar a government priority. Astana’s strategy is multifaceted. In addition to establishing a permanent interdepartmental commission, Kazakhstan is actively seeking to attract international operators such as the Emirati AD...

Shipbuilding

Turkmenistan Launches First Locally Built Dry Cargo Vessel

Turkmenistan has launched its first dry cargo vessel built at the Balkan Shipbuilding and Repair Yard. According to the state news agency TDH, the new ship has been named Gadamly. The vessel is designed to transport dry cargo and has a carrying capacity of 6,100 tons. It can also transport up to 240 20-ton containers. The project was implemented jointly by local specialists and the South Korean company Koryo Shipbuilding Industry Technology. During the launch ceremony, the company’s head, Choi Young Wook, presented the shipyard with international certificates recognizing its engineering development and construction quality standards. Additional certification confirming compliance with international standards, including environmental requirements, was awarded by the French company Bureau Veritas Marine & Offshore. State media coverage of the event focused on the project’s industrial significance as well as the traditional customs associated with launching a new vessel. According to TDH, respected elder women scattered white flour over the ship as part of the traditional blessing ritual “ak zat alnyňa ýagşy,” while an aladja, a traditional protective talisman, was tied to the ship’s wheel. A festive sadaka, or charitable offering for people in need, was also held. Turkmenistan has announced plans to continue cooperation in shipbuilding. President Serdar Berdimuhamedov said another cargo vessel, Menzil, is expected to enter service in the near future. Opened in 2018, the Balkan Shipbuilding and Repair Yard is part of the Turkmenbashi International Seaport complex. The Turkmen government reportedly invested around $1.5 billion in the port project. The shipyard is designed to build four to six vessels annually.