Turkmen-German economic cooperation prospects discussed in Berlin

15 February 2019 17:20 (UTC+04:00)

By Abdul Kerimkhanov

The Federal Republic of Germany considers one of the priorities of the foreign policy strategy to establish long-term full-scale cooperation with a dynamically developing Turkmenistan, confidently following the path of progressive reforms and transformations.

A Turkmen-German business forum was held in Berlin, where Turkmen delegation was among participants.

The current event is also aimed at further developing the traditional dialogue of friendship and mutually beneficial cooperation of Turkmenistan with European countries, strengthening the positions of its domestic industries in the foreign market, increasing their export, innovation and investment potential.

The Turkmen-German Business Forum brough together representatives of the German Foreign Ministry, federal ministries of economy and energy, agriculture and food of Germany, the German Society for International Cooperation, the East European Association for the Promotion of Entrepreneurship, the Representative Office of the German Economy in Central Asia, the Chamber of Commerce and Industry of Germany, academic circles of Germany and many companies engaged in various industries.

Among the areas of their specialization are banking, printing, biotechnology, production of electronic equipment, road-building and agricultural equipment, the oil and gas industry, mechanical engineering and aircraft building, logistics, etc. In total, 70 large companies participated in the Forum.

The ministries of agriculture and environmental protection, energy, finance and economics, the textile industry, health care and the medical industry, the Turkmengas and Turkmenkhimiya State Concerns, the State Bank for Foreign Economic Affairs, the Ahal velayat khyakimlik, the Turkmen Agricultural University, the International University oil and gas, the International Sea Port of Turkmenbashi, the Union of Industrialists and Entrepreneurs represented Turkmenistan at the Forum.

The sides made new proposals on the forum’s agenda for planning further trade and economic cooperation. The parties specified its directions and discussed the possibilities of more efficient use of mutual potential.

The forum provided a comprehensive assessment of the economic potential of Turkmenistan, characterized the structural reforms taking place in various sectors, presented the most significant indicators and prospects for their development, analyzed the current state of trade between Turkmenistan and Germany and agreed on measures to further increase its volume, taking into account the interests of the two countries.

Special attention was paid to building up the innovative component of the Turkmen economy, a favorable investment climate in the country and favorable conditions for the activities of foreign companies. As noted, important factors of investment attractiveness of Turkmenistan are political stability, the strengthening of the rule of law and the creation of a financial control system, the improvement of the banking sector and the insurance market.

Under the leadership of President Gurbanguly Berdimuhamedov, the government is improving the business environment in order to encourage investment, and a strategy has been developed and successfully implemented for the export-oriented industry development. GDP growth in Turkmenistan amounted to 6.2 percent at the end of 2018.

German companies also make a significant contribution to the implementation of long-term projects in Turkmenistan. Among them are the long-term and effective activities in Turkmenistan of such companies as ‘‘Siemens AG’’, ‘‘Claas Global Sales GmbH’’, ‘‘John Deere Walldorf GmbH & Co. KG", "Umax Trade GmbH", as well as several others. In addition to them, the forum allowed for a wider presentation of other German companies seeking to gain a foothold in the Turkmen market.

The first session was devoted to investment opportunities in the fuel and energy complex and the chemical industry of Turkmenistan. The strategy of President Gurbanguly Berdimuhamedov in this area is aimed at diversifying hydrocarbon supplies and is in favor of creating multi-vector routes for bringing Turkmen natural gas to foreign markets, including European ones.

Great opportunities are opening up for German companies producing equipment for the oil and gas industry such large projects implemented by Turkmenistan as the construction of the gas pipeline Turkmenistan-Afghanistan-Pakistan-India (TAPI), natural gas processing enterprises with a production of polyethylene, polypropylene, synthetic gasoline and other products.

All this is a big field for establishing cooperation with the global giants of the chemical industry.

Turkmenistan also leads with stakeholders a substantive discussion of cooperation issues in the electricity and electrical industries, including the implementation of international projects - the construction of power lines from Turkmenistan to Afghanistan and Pakistan.

Among the potentially capacious spheres that could interest the German business community is the development of the transport industry in Turkmenistan, to which Turkmen President attaches great importance.

The second session of the business forum was devoted to the creation of a modern, multimodal transport infrastructure, where special attention was paid to the formation of new logistics schemes taking into account the capabilities of the International Sea Port in the Turkmenbashi city.

An important area of bilateral relations is the agro-industrial complex and the further development of partnership in the supply of agricultural equipment to Turkmenistan and the training of engineering and technical personnel. This range of issues was considered at the session “Potentials for the Development of Cooperation in the Sphere of Agriculture and Food Industry”.

The economic strategy of Turkmenistan provides for a gradual increase in the share of privately owned enterprises in the gross domestic product. Therefore, a significant area of cooperation is the establishment of direct and close ties between the business communities of the two countries, the attraction of investments, the introduction of effective management methods and advanced management decisions.

As part of the business event, an exhibition of goods produced in Turkmenistan was organized. In addition, representatives of Turkmenistan and Germany held bilateral meetings on the margins of the forum.

The program of the business trip of the Turkmen delegation also included a series of negotiations and consultations in the state structures of Germany, visits to German companies and acquaintance with their innovative experience.

Diplomatic relations between Turkmenistan and Germany were established on March 6, 1992.


Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94 

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