Why is this important
$2 billion represents a 3–4x increase from the current ~$500–700 million, strengthening trade ties with a geographically isolated neighbor. The Shovot–Dashoguz border trade zone is expected to simplify cross-border commerce for local residents and stimulate economic growth in Karakalpakstan. Energy cooperation includes joint development of gas fields, providing access to Turkmenistan’s resources, which rank 4th globally in proven gas reserves. The Turkmenbashi port will offer access to the Caspian Sea and transit routes toward Azerbaijan, Iran and Russia.
What happened
- Trade turnover up to $2 billion through assortment, free trade;
- Shovot-Dashoguz border trade zone, extending to Alat-Farab;
- Energy: large projects, joint development of deposits;
- Turkmenbashi Port, flights between the capitals;
- By the end of the year: Intergovernmental Commission, Business Council, roadmap.
Trade
- Target: $2 billion (currently ~$500-700 million) — 3-4 times growth.
- As: expansion of the range (Uzbek textiles, products, machinery; Turkmen gas, petroleum products, chemicals), free trade regime (duty reduction, simplification of customs).
Border trade zone
- Shovot-Dashoguz: launching a zone to simplify trade for residents of border regions of Karakalpakstan (Shovot) and Turkmenistan (Dashoguz) — duty-free, simplified customs.
- Al-Farabi: the spread of experience to other border regions — growth of trade, regions’ economies.
Energy
- Good results: gas and electricity imports from Turkmenistan to Uzbekistan.
- Major projects: joint development of gas fields at the border — Uzbekistan’s access to Turkmenistan’s resources (World 4th in reserves, 19.5 trillion cubic meters).
Turkmenbashi Port
- Development: Modernization of the port on the Caspian Sea for the transit of goods through Uzbekistan-Azerbaijan-Georgia-Turkey-Europe — an alternative route through Kazakhstan, Russia.
Air flights
- Renewal: Tashkent-Ashgabat direct flights — growth in tourism and business trips.
Until the end of the year
- Intergovernmental Commission: meeting for the implementation of agreements.
- Business Council: Meeting of Businesses of the Two Countries for Projects.
- Roadmap: a plan for the implementation of all agreements.
Context
- Turkmenistan: isolated country (authoritarian regime, closed economy), but rich in resources (19.5 trillion cubic meters of gas — 4th place in the world).
- Trade turnover $500-700 million: low for neighbors with a common border of 1800+ km. The target of $2 billion is 3-4 times growth.
- Border trade zone: will simplify trade for residents of Karakalpakstan, Dashoguz — will increase the economy of the regions.
- Energy: joint development of deposits will give Uzbekistan access to Turkmenistan’s gas — reducing dependence on imports from Russia.
- Turkmenbashi Port: access to the Caspian Sea for the transit of goods to Azerbaijan, Iran, Russia — an alternative to Kazakhstan.
