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turkmenistan  

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TURKMENISTAN


 

 

Key Economic Data 
 
  2003 2002 2001 Ranking(2003)
GDP
Millions of US $ 6,010 7,672 4,000 110
         
GNI per capita
 US $ 1,120 1,200 950 131
Ranking is given out of 208 nations - (data from the World Bank)

Books on Turkmenistan

REPUBLICAN REFERENCE

Area (sq.km) 
488,100 

Population 
4,863,169 

Principal 
ethnic groups 
Turkmens 77%
Uzbeks 9.2%
Russians 6.7%

Capital 
Ashkhabad 

Currency 
Turkman Manat

President 
Saparmurat Niyazov


Update No: 305 - (30/05/06)

The Mao of Central Asia
The Turkmen have a president, Saparmurat Niyazov, who is not quite sane. Indeed he shows every sign of megalomania, much as did Mao on the rather larger stage of China. He bears out the dictum of Lord Acton, the English historian of the late nineteenth century, who made the immortal remark: "Power corrupts and absolute power corrupts absolutely." 
Niyazov acquired his power by being formerly the communist boss of the country. This is true of other Central Asian leaders, who have not become megalamaniacs. But their countries are more sophisticated culturally. When the republics abutting on the Ferghana Valley, Uzbekistan, Tajikistan, Kazakstan and Kyrgyzstan, were ruled by Tamurlaine, Turkmenistan was a desert inhabited by nomads. Seven or eight tribes of nomadic origin still comprise the population. The difficulty of keeping notoriously unruly nomads together is the reason Niyazov gives himself for the extraordinary cult of his personality.
For that it certainly is. He has re-incarnated himself as a religious luminary, much as Mao did with his 'Little Red Book.' This involves a new tome to replace the Koran and the Bible, which gives his mother a key role, after whom bread, the month of April and the ministry of justice are now named. She saved Niyazov's life in an earthquake in Ashkabad in 1948, which event is now commemorated by a gigantic statue. Many a Turkman must wish she had been less alert in her protection of her son .
The calendar has been changed into one of eight months of 45 days or so each. The dictator's self awarded title, Turkmenbashi,"Father of the Turkmen", is now used to designate towns across the desert republic, as well as public buildings and the airport. His photograph is everywhere, including in school classrooms, where the children sing an oath of loyalty to him every morning. In his capital, there is a prominent building towering above which is a larger than life-size golden statue of him, on a mechanism that turns 180 degrees between dawn and sunset, so he is always being faced by the sun. 
He has lost an ambassador or two who have sought asylum abroad, as with the envoy to Turkey a year or two ago. But it is unlikely that, short of another successful attempt on his life, he will lose power soon. He has, indeed, been declared president for life by the tame parliament. 

Disadvantageous deal with Russia
He made a frightful mess of his policy towards Russia and the West. He ruined the chances of obtaining a new gas pipeline across the Caspian Sea to Western markets by his ham-fisted, ever changing negotiating tactics. The representatives of the majors got totally fed up by him and put prudence before their pockets - or maybe not!
Niyazov was then obliged to do a deal in April, 2003 with the one country across which Turkmen gas can be exported to market, Russia, because they own the pipeline! 
Russia needs Turkmenistan's gas acutely because it can plug gaps in delivery that plague Gazprom, the Kremlin-controlled natural gas monopoly. Gazprom maintains export commitments to European markets, leaving it short of supply for domestic consumers. Niyazov has claimed that Turkmenistan has 22.5 trillion cubic meters, which would make it the third-largest potential natural gas source on earth.
Whatever its real resources, its current exports go almost exclusively to former Soviet states via Russian pipelines. While Russia needs transit fees, it also needs a healthy Gazprom. For this reason, Russian executives have consistently courted Niyazov. 
On April 10, 2003 Niyazov travelled to Moscow and signed a framework agreement on gas cooperation with President Vladimir Putin as well as a 25-year contract on gas supplies to Russia with Russian natural gas monopoly Gazprom. Niyazov pledged to supply up 100 billion cubic meters of gas to Russia annually from 2010 onward or 2 trillion cubic meters in 25 years. Russia would pay Turkmenistan US$44 per thousand cubic meters, 50 per cent in barter and 50 per cent in cash. This would be twice the price Gazprom pays domestic suppliers, according to published reports. Niyazov claimed that the deal would bring Turkmenistan US$200 billion and US$300 billion to Russia. 
At the time the presidents signed the deal, the only foreign company of any size working Turkmenistan's sector of the Caspian shelf was Dubai-based Dragon Oil. Turkmenistan has also signed development deals with Malaysia's Petronas and Denmark's Maersk Oil. Now, though, Ukraine may be fashioning a deal much like the one Russia wants - potentially slowing present deals and jacking up prices. 
On December 4, Niyazov and Naftogaz Ukrainy head Yury Boiko, met in Ashgabat to discuss a 25-year gas supply agreement. Under a current five-year contract, according to Interfax, the Ukraine outfit receives upwards of 150 billion cubic meters at the price Russia agreed to in April. However, Boiko may be interested in crowding out the Kremlin. He has reportedly visited Ashgabat many times in the past. The original deal he discussed with Niyazov reportedly involved 3-4 trillion cubic meters of gas, guaranteed until 2032. 
Russia and Ukraine could eventually clash over these agreements, since the two countries' gas companies cannot feasibly work on the same sector at the same time and the pipeline out of Turkmenistan is Russian controlled. Gazprom's framework agreement with Turkmenneftegaz implies the Russian company's nearly exclusive rights to purchase all Turkmen gas for the next 20 years. Gazprom has already committed to buy at least 60 billion cubic meters in 2007 and between 70 and 80 billion annually for 20 years from 2009. If these numbers materialize while Ukraine gets the volume it apparently expects, Turkmenistan's monopoly would have to produce around 100 billion cubic meters of gas annually by 2007 and 125-140 billion by 2009. The Moscow newspaper Kommersant and others have analysed Turkmenistan's supply and called such numbers unrealistic. 
New gas pipeline to China
But a new prospect is opening up, to export to China via a new pipeline, built with the help of Chinese finance. 
The problem is that the proposed route lies across Afghanistan, which is not exactly the ideal venue for a pipeline. It is not difficult to see the possibilities for extortion, theft or sabotage. Unless conditions improve remarkably in Afghanistan the project is likely to remain a non-starter, but it could materialise in the longer term.

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CONSTRUCTION

Niyazov examines new construction projects


The vice-president of French Bouygues company, Aldo Carbonaro, and Bouygues projects director, Charles Santer, presented Turkmen President, Sapamurat Niyazov on April 13th with two versions of the People's Council Palace construction project in the foothills of Kopetdag and a project of construction of the administrative building of the Turkmen president's administration tailored into the single palace complex, Turkmenistan.ru reported.
After evaluating the mock-ups and drawings, Niyazov made corrections related to the architectural design of future buildings and their planning and inner layout. Commenting on the People's Council Palace, Niyazov stressed that maximum comfort should be created there for work and stay of people. This project provides for construction of big and small halls with the capacity of 4000 people and 500 people respectively. Regarding the project of the administrative building of Niyazov's administration, Niyazov noted that it should be an integral part of the palace complex situated in the central square of Ashgabat. The head of state made a number of constructive proposals to the projects' designers concerning the layout of inner rooms and storages fitted with latest equipment. Besides, the building will have a hall for 150 people and staff rooms. At the end of the meeting, Niyazov invited Bouygues company to participate in the international tender on construction of another modern stadium in Ashgabat.

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CREDIT RATINGS

Russian firm upgrades Mary power plant in Turkmenistan 

Russian Syloviye machiny put into operation an upgraded power unit with a capacity of 200 mega watt at the Mary power station, situated in south-east of Turkmenistan, reported Turkmenistan.ru. 
Syloviye machiny and the ministry of energy and industry of Turkmenistan signed a contract in December 2004 to modernise one of eight turbines at Mary power station. The project was worth US$13.3 million. Following the agreement, Syloviye machiny upgraded the turbine's high pressure, inter-mediate and low pressure cylinders.

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ENERGY

Turkmen-Chinese gas pipeline to become new Silk Road 

Construction of a Turkmen-Chinese gas pipeline will have symbolic meaning, Turkmen President, Saparmurat Niyazov, said. "The Turkmen-Chinese pipeline will become a modern version of the Great Silk Road, which has connected our countries since ancient times," Niyazov said at a cabinet session, commenting on his recent official visit to China. Six bilateral documents signed during the visit are major agreements, which will allow the Turkmen economy to grow by 40 percent, Niyazov said. "All strategic economic sectors- oil and gas, rail and communications - will be engaged in bilateral cooperation," he said. The government session has paid special attention to the construction of the gas pipeline from the right bank of the Amu Darya River to China. The Turkmen-Chinese agreement provides for annual gas supplies of 30 billion cubic metres during a 30-year period beginning in 2009.The sides agreed to carry out joint exploration and development of all fields and territories of the Amu Darya's right bank on the basis of a production-sharing agreement. It was noted that Turkmenistan produced 18.75 billion cubic metres of natural gas in January-March, one percent more than in the same period last year, the National Statistics and Information Institute said.
Turkmenistan produced 18.75 billion cubic metres of natural gas in January-March, one percent more than in the same period last year, said the National Statistics and Information Institute. Gas exports fell two per cent to 12.6 bcm, almost all of which was exported to Russia's Gazprom. Turkmenistan also produced 2.01 million tonnes of oil, including oil condensate, a 13 per cent year-on-year drop. Throughput at the Turkmenbashi Oil Refinery Complex and the Seidin Oil Refinery in the first three months of the year amounted to 1.49 million tonnes of oil, down 12 per cent year-on-year. Production of lubricating oil in January-March this year amounted to 17,370 tonnes (up 20 per cent). Production of liquefied hydrocarbon gasses fell 12 per cent to 88,200 tonnes, polypropylene - 17,690 (down 28 per cent), diesel - 396,300 tonnes (down 16 per cent), and gasoline - 351,500 tonnes (down 17 per cent).

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