OREANDA-NEWS. December 02, 2011. Prime Minister Andrus Ansip is on his first high-level bilateral visit to Turkmenistan to develop political and economic relations with the rapidly growing, high-potential Central Asian country.

At a meeting with President Gurbanguly Berdimuhamedov, who is the acting head of government, and Foreign Minister Rashid Meredov, in the capacity of deputy prime minister, it was noted that potential for economic cooperation exists in several areas, but above all in shipbuilding and port construction, transit, e-government, tourism and aviation. It was decided at the meeting with the president to form an intergovernmental committee in order to develop cooperation.

“Turkmenistan is a country with very great potential, where tremendous natural gas reserves were discovered only recently,” said Ansip. On the basis of the investigations conducted in recent years, the country, which has 5 million inhabitants, could boast the second largest gas reserves in the world, from which Russia, China and the Europe Union are looking to benefit. “European Commission President Barroso and energy commissioner Oettinger paid a visit to Turkmenistan this year on the issue,” said the Estonian head of government, and affirmed that the European Union was interested in a gas pipeline running between Turkmenistan and the European Union, which would substantially increase Europe’s energy security.

The European Union has decided to open in Turkmenistan a regional office for its special envoy to Central Asia. Estonia’s first ambassador to Turkmenistan, Jaan Hein, presented his credentials this month.

The European Union is Turkmenistan’s third-most-important trading partner after Turkey and China and the second export partner. Turkmenistan’s primary export articles are gas, crude oil and petroleum. President Berdimuhamedov said the country plans to start processing gas and that it needs foreign partners for this purpose. Turkmenistan, whose economy grew 9.2 percent last year, has clearly indicated that it wants closer economic and trade relations with the European Union and, more narrowly, with Estonia, and to attract foreign investments.

Economic relations between Estonia and Turkmenistan and mutual investments are currently modest. To promote economic cooperation, Estonian Prime Minister Andrus Ansip and Deputy Chairman of the Turkmen Cabinet of Ministers Annamuhamed Gochiyev signed an agreement on avoidance of double taxation which will create favourable conditions for investments between the countries and freedom of movement of people, goods and services. The agreement will also help prevent discrimination against Estonian and Turkmen citizens, residents and companies by establishing rules on equal treatment. In addition, a cooperation agreement was signed by the heads of the Estonian and Turkmen chambers of commerce and industry Mait Palts and Palivan Taganov.

To develop economic relations, Prime Minister Ansip was accompanied by a business delegation, made up of 13 business leaders from eight companies, among others from the Port of Tallinn, CF&S Estonia, Eesti Energia and Defendec. At today’s business seminar, which drew about 100 Turkmen entrepreneurs, the countries’ respective economic environments were profiled and contacts were established.

Analysts forecast that Turkmenistan will quadruple its export volume within the next ten years. At the moment, Turkmenistan’s main transit corridor for oil and petroleum products runs via the Black Sea. If the country’s oil exports continue to increase, the Baltic Sea will undoubtedly be attractive for Turkmenistan as the capacities of the Black Sea’s terminals and the potential throughput of the pipelines is limited and growing capacity will require major investments. Prime Minister Ansip said Estonian business people are interested in Turkmenistan’s oil transit and affirmed that Estonia would be able to offer transit service for oil cargoes arriving by rail. At the meeting, Turkmenistan’s Deputy Prime Minister Meredov, to whom Ansip tendered an invitation, expressed clear intent to engage in transit-related cooperation with the Port of Tallinn. The Turkmen transport and communications minister, trade minister and energy minister were among the ministers participating at the meeting.

Besides transit, the leaders consider e-governance a potential field for cooperation, as one of Turkmenistan’s priorities is the transition to e-governance and Estonia can bring know-how to the table in this area. Turkmenistan, which currently has few Internet users, wants to establish a unified document management system for central and local governments. Ansip introduced the various Estonian online solutions to his Turkmen colleague and confirmed that Estonian companies are prepared to develop e-services in Turkmenistan as well. “For instance, Lithuania visited Turkmenistan earlier and they are already engaged in developing local e-governance,” said Ansip after the meeting.

Aviation is also seen as a possibility for cooperation, as Estonian Air is interested in new destinations in Southeast Asia. Already now, planes from Estonia to India or Thailand make refuelling stops in Turkmenistan. Common interests can also be found in higher education and in cooperation in the field of culture and medicine.

In addition, Ansip also met speaker of the Turkmen parliament Akja Nurberdieva. The head of the Riigikogu’s Estonian-Turkmenistan friendship group, Kalev Lillo, also took part in the meeting.
In recent years, the Estonian Prime Minister has paid one annual visit to a Central Asian country – last year it was Uzbekistan, in 2009, Kazakhstan; this year, Turkmenistan.