BAKU, Azerbaijan, November 1. Turkmenistan is pulling out all the stops to carve out its niche as a vital economic player in Central Asia, solidifying its standing as a go-to partner for Germany and the European Union. With a treasure trove of natural gas reserves, the country is casting its net wide for diversification and modernization, turning it into a magnet for long-term investments in energy, chemicals, agriculture, and transport sectors.
The recent “Turkmenistan Economic Days in Germany,” held in Frankfurt am Main, served as an important indicator of deepening partnerships. The forum, which brought together over 50 leading German companies—including Deutsche Bank AG, Commerzbank AG, Siemens Energy, CLAAS GmbH, John Deere International GmbH, and BASF—and 51 Turkmen companies, confirmed a shift from trade relations to large-scale technological and financial collaboration.
Turkmenistan’s cooperation with German financial institutions and industrial guarantors demonstrates a significant level of commitment. The aggregate capital deployment for collaborative initiatives underwritten by Deutsche Bank, Commerzbank, and Euler Hermes is projected to approximate $700 million. The capital allocation is strategically channeled into pivotal infrastructure, healthcare, and industrial initiatives, serving as collateral for German export activities while mitigating investment exposure risks.
Moreover, Siemens Energy Global GmbH & Co. KG is on the verge of putting pen to paper on a contract with Turkmenistan’s state company Turkmengaz, ringing in at a hefty $108 million. The agreement focuses on modernizing the gas transportation system through the repair of compressors and power turbines.
From 2020 through 2025, another German company, BASF SE, delivered chemical reagents worth over $25 million. The Turkmen side has articulated a keen interest in formalizing a direct, long-term contractual agreement aimed at streamlining logistics and enhancing supply chain efficiencies.
In an interview with Trend, Vladimir Nikitenko, Regional Director of the Eastern Committee of German Business, noted that Turkmenistan’s high GDP per capita, supported by abundant natural gas reserves, enables the government to invest in deep industrial modernization using advanced, often German, technologies.
“Digitalization and sustainable infrastructure are also becoming key drivers of a new phase in German-Turkmen cooperation. Turkmenistan is modernizing its energy, water management, and logistics sectors—precisely areas where German companies have strong technological advantages. This includes smart grids, automation, water efficiency improvements, and wastewater treatment,” he emphasized.
This seals the deal that the appetite for German engineering and digital know-how is here to stay and part of the big picture. The growth of digital and green infrastructure is set to be the name of the game for collaboration in the years ahead.
“As Turkmenistan expands its connectivity through new transport and trade corridors linking Central Asia with Europe, digital infrastructure and green technologies will become the most dynamic drivers of bilateral cooperation,” he added.
Even though the state sector holds the reins, the blossoming of Turkmenistan’s private economy is throwing open the doors for German Mittelstand companies, especially in the realms of textiles, agricultural trade, and logistics along the Middle Corridor.
“German Mittelstand companies traditionally supply Turkmen partners with machinery, industrial equipment, and production technologies, often through local distributors. This model minimizes bureaucratic barriers while simultaneously building trust and sustainable cooperation,” Nikitenko explained.
The Eastern Committee of German Business (OA) is all in on this endeavor, putting pen to paper on a cooperation roadmap in 2023 that spans eight sectors, from energy to healthcare and textiles.
Cooperation between Turkmenistan and Germany is a whole new ball game, reaching far beyond the usual trade routes. The Frankfurt forum, attended by over 200 investment-focused participants, demonstrated that German businesses see Turkmenistan as a long-term, technologically promising market and a platform for joint innovation. Underpinned by a robust $700 million in fiscal assurances and significant technological accords, including Siemens Energy’s $108 million pact, this collaboration enhances economic interlinkages between Europe and Central Asia.
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