Political and Economic Situation


Turkmenistan is known for its stability both internally and externally, thanks to its adherence to the principle of complete neutrality that it obtained by the voting of all Member States of the United Nations in 1995. Neutrality has allowed it to consolidate internal political stability and security, and strengthen bilateral relations and cooperation especially with its neighboring countries as well as the rest of the countries of the world.

The Turkmen economy has witnessed a significant improvement over the past few years, with its exports of gas and oil to China, Russia, Iran and Azerbaijan, as well as exports of industrial materials, agricultural products, textiles and electric power. Turkmenistan has large reserves of natural resources especially natural gas, and it ranks fourth on the list of countries according to natural gas reserves.

Oil, gas and related industries, or the use of electricity produces for export, continue to be the main source of Turkmen income. Turkmenistan has made plans to diversify its natural gas exports.

Turkmenistan has also shown interest in developing plans to take advantage of its geographical location by linking itself to transportation and railways, in order to make it a hub between Central Asia and other countries in the region, especially Iran that is located in the Arabian Gulf.

Over the past two years, the government has also developed and supported the performance of the private sector, especially in terms of encouraging investment in various fields such as industry and agriculture, to increase production and stop dependence on imported agricultural products from abroad.

To cope with the global economic crisis due to low oil and gas prices, Turkmenistan has also implemented a number of measures to strengthen the economy and financial system, improve performance and encourage investment.