Bilateral Trade - The Times Of Central Asia

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Strategic Cooperation Between Turkey and Turkmenistan Gains Momentum

Turkey and Turkmenistan have accelerated their cooperation in recent years, advancing economic, energy, and diplomatic initiatives that underscore their shared cultural and strategic interests. Their deepening of bilateral ties reflects and expresses both broader regional dynamics and shifts in global energy geopolitics. As The Times of Central Asia reports, the two countries signed a natural gas supply agreement in February 2025 that reinforces Turkey’s ambitions as a regional energy hub while providing Turkmenistan with a new export avenue. Turkmenistan will begin supplying 1.3 billion cubic meters per year (bcm/y) of natural gas to Turkey on March 1 through a swap agreement. Turkmenistan will send gas to Iran for consumption in the northeast of the country, in return for which Iran will transfer an equivalent amount to Turkey. Various press commentaries and diplomatic declarations touting the “export of Turkmen gas to Turkey” are therefore to be regarded skeptically as political grandstanding, even if such an assessment may be supported from a technical standpoint of how the industry calculates flows. Trade and investment relations between Turkey and Turkmenistan have recently seen steady growth, underpinned by Turkish business engagement in Turkmenistan’s infrastructure and construction sectors. Over 600 Turkish companies are active in Turkmenistan, and Turkish direct investment has surpassed $500 million. Turkish contractors have executed projects worth over $50 billion in Turkmenistan since its independence. In this context, the eighth meeting of the bilateral Intergovernmental Commission on Economic Cooperation took place in Ankara on February 25. Following the meeting, a large-scale protocol was signed, including 87 points and covering cooperation over a wide range of issues - areas such as trade and investment, energy, transport and logistics, scientific cooperation, agriculture, and healthcare. The bilateral trade turnover between the two countries reached $2.2 billion in 2024, and Turkey aims to more than double this level to $5 billion. However, reaching that target hinges on further liberalization of Turkmenistan’s economic policies and the expansion of investment-friendly regulations, both of which could be challenging. The two sides also discussed how to integrate Turkmenistan into the Trans-Caspian International Transport Route (TITR, “Middle Corridor”) as well as possible cooperation in the field of transport and logistics toward that end. Ankara has successfully positioned itself as a strategic economic partner, but Ashgabat’s tightly controlled economy presents structural barriers that may slow the desired growth. Ankara’s engagement with Ashgabat thus reflects its broader efforts to enhance connectivity across Central Asia. Turkey’s push to integrate Turkmenistan into the TITR aligns with its own ambition to position itself as a logistical bridge between Asia and Europe, complementing its Middle Corridor strategy, which seeks to create an alternative trade route bypassing Russia. However, Turkmenistan’s rigid economic model and cautious foreign policy limit the pace of integration. Practical challenges include regulatory misalignment, infrastructure bottlenecks, and geopolitical sensitivities. Turkey’s Vice-President, Cevdet Yilmaz, affirmed his country’s intention that Turkmen gas and electricity should reach European markets through Turkey. Turkish state-owned companies such as TPAO and BOTAŞ will also seek to develop hydrocarbon fields in Turkmenistan and...

Qosh Tepa canal Afghanistan Taliban Bilateral Relations Bilateral Trade

Uzbekistan Sees Opportunities in Afghanistan

Uzbekistan’s business relations with neighboring Afghanistan are booming. In 2024, Uzbek-Afghan trade came to some $1.1 billion, and more than $1 billion of that was Uzbek exports to Afghanistan. It seems after the February 22-23 visit of Taliban acting Deputy Prime Minister for Economic Affairs Abdul Ghani Baradar to Uzbekistan, that figure is likely to continue climbing. Baradar met with Uzbek Prime Minister Abdullo Aripov and Deputy Prime Minister Jamshid Khojayev to discuss trade and investment, which is essentially the basis of Uzbekistan’s relations with Taliban-ruled Afghanistan. The immediate results of these talks were modest, but projects due to start in the near future offer substantial profits for both Uzbekistan and Afghanistan. Uzbekistan agreed to lift restrictions on imports of Afghan agricultural goods, which facilitated another agreement establishing a free economic zone in Uzbekistan’s border area that would have factories for processing pine nuts and cotton from Afghanistan. Agricultural goods are the bulk of Afghanistan’s exports to Uzbekistan, which is not surprising since more than 40 years of war have prevented Afghanistan from building many plants and factories for producing finished goods. A report from November 2024 said in the first ten months of the year, Uzbekistan’s exports to Afghanistan came to some $855.9 million, while Afghan exports to Uzbekistan amounted to only some $28.3 million. Power On Uzbekistan is the leading exporter of electricity to Afghanistan, supplying nearly 60% of Afghanistan’s electricity imports, and that amount could increase soon. Baradar’s delegation discussed progress on the 500 kV transmission line from Uzbekistan’s Surkhan region to Dashti-Alvan, near the Baghlan provincial capital Pul-e-Khumri, which will increase Uzbekistan’s electricity exports to Afghanistan by some 70%. Construction of the 260-kilometer transmission line started in 2018 and has been repeatedly delayed. Baradar said Uzbek officials agreed to cut the cost of building the transmission line from $252 million to $222 million. Turkmenistan is also considering building a 500 kV transmission line to Dashti-Alvan. Uzbek Deputy Prime Minister Khojayev and Baradar reviewed progress at Afghanistan’s Toti-Mardan gas field, just south of the border with Turkmenistan, which is believed to contain vast reserves of natural gas. In November 2024, Uzbekistan signed a ten-year contract to develop the gas field, pledging to invest $100 million in the project each year. According to reports about Baradar’s recent visit, drilling at the site is expected to begin soon. Prime Minister Aripov said Uzbek investors were already preparing to start construction of a cement plant in Afghanistan’s Samangan Province. Taliban officials have been offering Uzbek companies opportunities in Afghanistan’s mining sector for months. The Taliban acting minister of mines and petroleum, Hidayatullah Badri, was part of Baradar’s delegation and he met with Uzbek officials to discuss cooperation in developing Afghanistan’s mineral resources. The Afghan delegation again proposed Uzbek participation in developing mining sites, but there was no word in reports on any agreements. Aripov mentioned Uzbekistan was interested in exploration and extraction of oil and gas, both of which Uzbekistan needs for domestic consumption, but did not mention mining....

Oil Supply Energy cooperation Economic Cooperation Crude Oil Bilateral Trade

Kazakhstan and Hungary Reach Preliminary Deal on Oil Supply via Druzhba Pipeline

Kazakhstan and Hungary have reached a preliminary agreement on the supply of Kazakh crude oil to Hungary via the Druzhba (Friendship) oil pipeline system through Russia. According to Kazakhstan’s Ministry of Energy, the agreement was reached during a meeting in Astana on February 17 between Kazakhstan’s Minister of Energy Almasadam Satkaliyev and Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó. The two sides agreed to conduct test oil shipments in 2025. Kazakhstan already supplies oil to Germany through the Druzhba pipeline. The ministers also discussed cooperation between Kazakhstan’s national oil and gas company, KazMunayGas, and Hungary’s MOL Group in developing the Rozhkovskoye gas condensate field in western Kazakhstan. MOL Group has invested $200 million in the development of this major field and has previously expressed interest in processing Kazakh oil at Hungarian refineries. On the same day in Astana, Szijjártó held talks with Kazakhstan’s Deputy Prime Minister and Minister of Foreign Affairs Murat Nurtleu. The foreign ministers reviewed trade and economic relations, noting that bilateral trade turnover increased by 4.4% last year, reaching nearly $200 million. Both sides agreed to take additional measures to achieve the goal set by their leaders, to expand trade to $1 billion, according to Kazakhstan’s Foreign Ministry. Key topics of discussion included: The opening of Hungarian bank branches in Kazakhstan The construction of a multimodal cargo terminal in Budapest Expanding exports of Kazakh uranium and critical minerals The ministers also highlighted plans to launch a direct air connection between Shymkent, Kazakhstan’s third-largest city, and Budapest in May 2025. The new route is expected to further strengthen economic and cultural ties between the two nations. Since 2005, Hungarian direct investments in Kazakhstan have exceeded $370 million, reflecting the deepening economic partnership between the two countries.

Afghanistan Coal Bilateral Trade Economic Cooperation

Uzbekistan to Import Afghan Coal in $4.5 Million Trade Deal

Uzbekistan has agreed to import coal from Afghanistan as part of efforts to balance bilateral trade, Tasnim News Agency reported. During a meeting in Kabul, an Uzbek delegation expressed its readiness to purchase Afghan coal, resulting in the signing of trade agreements worth $4.5 million between private companies from both countries. The discussions also covered trade privileges, plans to construct a cement plant in Afghanistan’s Samangan region, and the organization of joint exhibitions. In May 2024, Uzbekistan’s Transport Minister, Ilhom Mahkamov, led a delegation to Afghanistan, where he met with Foreign Minister Amir Khan Muttaqi. During the talks, both sides agreed that a technical team would visit Kabul to finalize the purchase of over one million tons of coal. Meanwhile, in July 2023, the Kyrgyz government raised the price of coal exported to Uzbekistan by 37%. According to the National Statistics Committee of Kyrgyzstan, from January to May 2024, Kyrgyzstan exported 302,000 tons of coal to Uzbekistan for $12.7 million—1,000 tons less than the same period in 2023, when 303,000 tons were sold for $9.2 million. Kyrgyz coal suppliers have not commented on the price increase. This week, business representatives from Uzbekistan and Afghanistan signed a $4.5 million trade agreement. Afghanistan’s Ministry of Industry and Trade announced the deal, stating that it was signed by private sector representatives from both countries.

Economic Cooperation Bilateral Trade Bilateral Relations Parliament

Kazakhstan’s Parliament Approves Regulations for the Central Asia International Industrial Cooperation Center with Uzbekistan

On February 5, the Mazhilis, the lower house of Kazakhstan’s parliament, approved an agreement between the governments of Kazakhstan and Uzbekistan on regulations for the Central Asia International Center for Industrial Cooperation. According to Kazakhstan’s Ministry of Trade and Integration, the industrial center will be built along the border of the two countries, near the Gulistan checkpoint in Uzbekistan and the Atameken checkpoint in Kazakhstan. The complex will include: Industrial production facilities Warehouses Transport infrastructure The center aims to: Accelerate cargo transportation Reduce logistics costs Streamline supply chains Lower product costs for consumers Enhance industrial cooperation between Kazakhstan and Uzbekistan as part of the North-South corridor Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, informed parliament that the industrial center will cover 100 hectares, with 50 hectares on each country’s side. Part of the center will receive regional industrial zone status. Construction is expected to be completed by the fourth quarter of 2026, with an official opening planned for the first half of 2027. Uzbekistan is one of Kazakhstan’s largest economic and trading partners, and both countries aim to increase bilateral trade to $10 billion annually in the medium term.

Afghanistan Investment Projects Economic Cooperation Trade Bilateral Trade

Uzbekistan and Afghanistan Sign $4.5M Trade Deal as Economic Ties Grow

Business representatives from Uzbekistan and Afghanistan have signed a $4.5 million trade agreement, Tasnim News reported on February 3. Afghanistan’s Ministry of Industry and Trade announced the deal, stating that it was signed by private sector representatives from both countries. Afghanistan is Uzbekistan’s fifth-largest export market. Over the past five years, trade between the two countries has grown by nearly 1.5 times, reaching $866 million in 2023. Currently, 550 Afghan-invested enterprises operate in Uzbekistan, 443 of which are fully Afghan-owned. Joint projects are ongoing in food production, construction materials, agriculture, tourism, and textiles. Beyond trade agreements, both countries are discussing broader economic cooperation. In August 2024, an Uzbek delegation led by Prime Minister Abdulla Aripov visited Afghanistan. During the meetings, both sides emphasized their goal of increasing trade turnover to $1 billion in 2024, with a long-term target of $3 billion. Officials stressed the need to tap into new economic opportunities on a mutually beneficial basis. As previously reported by The Times of Central Asia, in October 2024, Afghanistan’s Ministry of Mines and Oil signed a 10-year contract with an Uzbek company for gas exploration and production in the Tuti Maidan gas field in Jawzjan province. The project is expected to bring in about $1 billion in investment to the region’s gas sector.