Will Turkmenistan be the EU’s new major energy partner in Central Asia?
Turkmen Foreign Minister Rashid Meredov recently said that “many Europeans will pass through Turkmenistan this year.” This prediction is based on a recent diplomatic visit by the minister to Brussels and Rome, where meetings were held with key figures from the European Union. The goal is to strengthen bilateral cooperation, especially in the crucial energy sector. With these agreements both the EU and Turkmenistan seek to completely free themselves from dependence on Russia.
Developments in the partnership between the EU and Turkmenistan
In Brussels, Meredov met with important representatives of the European institutions, including the vice-presidents of the Commission Valdis Dombrovskis and Margaritis Schinas, the European Commissioner for International Partnerships Jutta Urpilainen, and Simon Mordue, chief foreign policy advisor to the President of the European Council.
The result of these meetings was the signing, on March 18, of a protocol to the Partnership and Cooperation Agreement between Turkmenistan and the EU. This is a significant step forward that lays the foundation for a future framework agreement on energy cooperation, which is crucial for the development of long-term natural gas supplies.
However, attention is also paid to other aspects such as Turkmenistan's development of hydrogen energy, reduction of methane emissions and processing of natural gas for wider commercialisation. Aspects where collaboration with European expertise is considered crucial by Turkmenistan.
Prospects for investments and legal disputes
During a roundtable on partnerships between the Turkmen and EU private sectors, Grégory Lecomte, head of the Central Asia unit at the Organization for Economic Co-operation and Development, highlighted the progress made from Turkmenistan in simplifying access to information regarding the legislative framework for foreign investments. However, a critical issue remains: the judicial system. In fact, foreign companies have limited protection in the event of contractual disputes in the country. A possible solution, which emerged from the recommendations, could be that of a tool for alternative dispute resolution on the model of the court of the Astana International Financial Center in Kazakhstan.
Human rights and restrictions during Ramadan
The United States Commission on International Religious Freedom has denounced violations of religious freedom rights in Turkmenistan, especially for those who “deviate from the state's preferred interpretation of Islam” during the holy month of Ramadan. Authorities have adopted contradictory measures, with children being forced to drink and eat in some areas and state-mandated fasting in others. In the end the fact is that Islam is strongly imposed by the state, but only a certain vision of the Mohammedan religion, the one that the government wants. In short, there is no getting around the problem, and this could be a problem for the establishment of relations between the EU and Turkmenistan.
Logistics collaboration and the port of Turkmenbashi
During the visit to Italy, Meredov met with Italian Deputy Prime Minister Matteo Salvini, who also holds the infrastructure and transport portfolio. The result was a memorandum of cooperation between the port of Turkmenbashi and that of Naples. This agreement is part of the EU strategy for the development of the Middle Corridor, the route that connects Europe to China through the countries of Central Asia. The port of Turkmenbashi, although modern, still works at reduced capacity and aims to increase its role within this goods interchange network. There is also the not-so-subtle problem that the Turkmen port is on the Caspian Sea, an inland sea.
Domestic issues: cotton and the Arkadag project
Despite water scarcity, exacerbated by Afghan irrigation projects on the Amu Darya River, Turkmenistan has expanded the area devoted to cotton cultivation this year. This indicates that the latest harvest did not achieve the desired objectives. The difficulties impact the industry, resulting in layoffs and financial problems.
Meanwhile, former president Gurbanguly Berdymukhamedov, National Leader and de facto co-president, remains focused on his personal urban planning project: the new city of Arkadag, inaugurated in 2023 and still completely uninhabited.
In conclusion, Turkmenistan's rapprochement with the EU represents an opportunity for ambassadors. Europe can contribute to modernizing the country's economy, opening up to new energy sources, while Turkmenistan aspires to become a strategic logistical-commercial hub. However, some problems related to personal and religious freedoms will need to be overcome, but we are sure that the European authorities, if interested, will find a way to avoid the problem.
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The article Will Turkmenistan be the EU's new major energy partner in Central Asia? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-turkmenistan-sara-il-nuovo-grande-partner-energetico-della-ue-in-asia-centrale/ on Sun, 31 Mar 2024 05:15:20 +0000.