Belarus and Turkmenistan Economic Cooperation

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April 22, 2016 18:09

The official visit of Turkmenistan President Gurbanguly Berdimuhamedov to Belarus on 27-28 April aims at expanding  economic, investment  and trade cooperation  between the two countries. Belarus and Turkmenistan intend to fulfill several joint industrial and infrastructure investment  projects with the introduction of modern technology.

At present, there are 15 operating enterprises with the participation of Belarusian capital in Turkmenistan. Thirteen investment projects with Belarus’ share in the total amount of $ 1.123 billion are registered there. The major investment project is the construction of Garlyk mining and processing plant for the production of potash fertilizer  with a capacity of 1.4 million tons per year. In January 2010, JSC \"Belgorkhimprom\"   and  \"Turkmenkhimiya” concern signed a turnkey  construction contract with the assistance of Belarusian specialists.

The launch of the plant is scheduled  for January 2015. The Process Plant Complex includes a mine, a processing plant and supporting structures. The plant has a 50–year supply of raw materials. Potassium chloride produced at the plant will fully  meet the needs of Turkmenistan, and will be exported to other countries.

In the course of the visit, the parties discussed possibilities for Belarus’ participation in the construction of plants for large-panel earthquake-proof  housing and for precast concrete products, as well as plants for the production of heat-insulating materials, light metal, ceramic tiles. The sides agreed to continue developing  projects in other fields, including banking.

This year, within the frameworks of joint investment projects, Turkmenistan has significantly increased its purchases of Belarusian goods. According to Mr. Berdymukhammedov, in the first quarter of 2012, foreign trade between Belarus and Turkmenistan  is projected at  $ 320 million.

Turkmenistan imports agricultural, road, construction and utility equipment, machinery, equipment, building materials, food, and medicines.

In April 2012, the Ministry of Public Services of Turkmenistan signed  contracts for the purchase of  1,989 units of vehicles  produced by  “MAZ” and  173 units of “Amkodor”  special equipment . Belarus will continue supplying tower cranes and elevators to Turkmenistan.

For reference.  According to the National Statistical Committee of the Republic of Belarus, in January-February 2012 the volume of foreign trade between Belarus and Turkmenistan increased by 60.9%,  compared to the same period of the previous year,  and amounted to $ 25.792 million. Exports of Belarusian goods to Turkmenistan  also rose by 65.4% to $ 25.294 million.

According to the International Monetary Fund, in 2012, Turkmenistan’s GDP growth rate was 7%. In absolute terms, the GDP of Turkmenistan in 2012 is estimated at $ 29.93 billion (current prices). Per capita GDP, calculated by purchasing power parity (PPP), in 2012 will amount to 8,367 thousand dollars. The inflation in the country is expected to decline to 7% this year. The population of Turkmenistan will grow in 2012 to 5.614 million people.

Forecasted oil exports for Turkmenistan: in 2010 - $ 8.617 billion,   in 2011 - $ 14.782 billion,  in 2012 - $ 15.919 billion ,  in 2013 - $ 16.782 billion,  in 2014 -  $ 17.095 billion,  in 2015 - $ 17.7 billion,  in 2016 - $ 17.896 billion , and in 2017 - $ 18.181 billion. 2010 data is what has been reported Figures for 2011  are estimated. Figures for 2012-2017 are the  IMF forecast.

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