Russia, Turkmenistan to eye agreement on industrial cooperation

By Azernews

By Kamila Aliyeva

Russian Prime Minister Dmitry Medvedev has tasked the country’s industry and trade ministry to hold talks with Turkmenistan and after reaching agreements to sign a contract on industrial co-operation, Trend reported.

The purpose of the agreement is to create a mutually beneficial competitive environment in the industrial production of the two states’ markets.

Russia and Turkmenistan plan to co-operate in this area and implement joint programs and projects, enhance the competitiveness of enterprises of the two countries and facilitate the development of industrial cooperation.

Earlier the Turkmen government adopted a state program for production of import-substituting goods in Turkmenistan and capacity increase in export. Within the framework of this program it was planned to carry out more than 110 projects aimed at the development of the chemical industry, mechanical engineering, agriculture, construction, light, food and other industries, the domestic pharmaceutical industry.

The enterprises that are to produce a wide range of construction, chemical, household and other products made from local raw materials will be built.

Gas supply was one of the strategic areas of partnership between Turkmenistan and Russia until recently.  But in 2016, Russia - a traditional buyer - has stopped the purchase of Turkmen gas.

According to BP, Turkmenistan’s recoverable reserves are estimated at 17.5 trillion cubic meters of gas or nine percent of total global reserves, which puts Turkmenistan on the fourth position in this field and currently, the country has the ability to export it to China and Iran.

In 2015 bilateral trade volume between two countries decreased by 21% to $0.97 billion compared to $1.23 billion in 2014.