Turkmenistan’s Foreign Economic Policy: Results of The Decade

Abstract

Turkmenistan’s foreign economic policy is based on the principles of neutrality in relation to any integration processes and bilateral cooperation. At the same time, the results of the last decade of Turkmenistan’s presence in foreign markets are limited to export supplies of energy resources (gas and oil). The Republic’s single-product exports are supported by growing financial dependence on the main gas importer, China, which significantly affects the level of economic dependence on one partner. The low level of diversification of Turkmenistan’s foreign economic cooperation is becoming a major factor for the growing instability of the national economic system and contradicts the basic principles of the Turkmen strategy of foreign policy neutrality. These contradictions determine the relevance of the study, which aims at a comprehensive assessment of the results of Turkmenistan’s economic policy and the potential for the development of Russian-Turkmen economic cooperation.

Cooperation with Russia remains the most promising direction for the development of foreign economic activity for Turkmenistan. In the current conditions of fierce competition in the regional gas and oil markets, the supply of the main export product – gas-to Russian partners (Gazprom PJSC) makes it possible to receive export revenue to the Republic’s budget, solve the problem of the growing deficit of state financial resources and support social programs.