Русский
Russia and Turkmenistan’s bilateral trade has surged this year, increasing by 73% in the first half of 2024, surpassing US$700 million, according to the Russian Ministry of Economic Development.
Deputy Minister of Economic Development of Russia Dmitry Volvach stated that “Last year, trade between Turkmenistan and Russia grew by 13%, and in the first half of this year has risen by 73% totalling more than US$700 million. The range of mutual trade is expanding, and the share of high-value-added goods is increasing.”
Volvach noted the importance of strengthening relations between Russia and Turkmenistan and noted significant events that have fostered bilateral cooperation, stating “The historic declaration agreed by our leaders in June 2022 to deepen our strategic alliance supports bilateral relations. A Russian-Turkmen business roundtable during Russian Prime Minister Mikhail Mishustin’s January 2023 visit to Ashgabat was significant. The 600-person Russian forum included roundtable discussions and business council meetings. It opened up investment and trade between our countries considerably.”
Turkmenistan is beginning to benefit from the International North-South Transport Corridor (INSTC) which sees Russian exports from ports in and near Astrakhan on the Caspian Sea flow south. One of those destinations is the Turkmenbashi Port, which then connects to Turkmenistan’s rail network and which also has connectivity links to Uzbekistan.
Russian companies have been involved in developing the new Arkadag smart city. Major Russian exports to Turkmenistan has included construction materials as well as engineered products for the countries energy industry, and include machinery, equipment and vehicles, food products and agricultural raw materials, chemicals metals and various products made from them, wood and pulp and paper products, and mineral products.
Turkmenistan exports textiles (cotton) and footwear, food products and agricultural raw materials, products of the chemical industry, machinery, equipment, and vehicles, vegetables and certain edible roots and tubers. Turkmenistan has significantly expanded its product range in recent years and is now turning from a single-product exporter of hydrocarbons into a multi-vector trade partner. For Turkmenistan trade with Russia is critical because it guarantees growth in exports of cotton, textile and agroindustrial products, and chemical products to Russia.
Turkmenistan, in turn, is interested in cooperation with Russia in the fields of the pharmaceutical industry (vaccines), shipbuilding (construction of sea vessels for the Caspian flotilla), machine tool and automotive industries (deliveries of KAMAZ and GAZ trucks), and high-tech products (telecommunications equipment, etc.) and exploration. Overall, the Russia-Turkmenistan trade balance has not yet reached full capacity, with the increasing INSTC connectivity helping the two countries to expand their trade portfolio and volumes.
Further Reading
Direct Rail Freight Service Launched From Ulyanovsk to Turkmenistan onto Iran & Pakistan
