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Ashgabat hosts Putin as bilateral trade and joint projects expand

Economy Materials 11 December 2025 15:08 (UTC +04:00)
Ashgabat hosts Putin as bilateral trade and joint projects expand
Fuad Namazov
Fuad Namazov
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BAKU, Azerbaijan, December 11. Preparations are under way in the Turkmen capital for a rare high-level gathering as the country marks the 30th anniversary of its policy of permanent neutrality. On Friday morning, Ashgabat began receiving an influx of foreign delegations ahead of the anniversary event scheduled for December 12.

Russian President Vladimir Putin is expected to arrive in the Turkmen capital later in the day. According to organizers, leaders of Türkiye, Iran, and several other states have also been invited to take part in the celebrations. Their presence is turning Ashgabat into a temporary diplomatic center, where discussions may extend beyond the official program.

While the main focus of the events is the commemoration of Turkmenistan’s long-standing neutral status, the gathering is likely to offer opportunities for broader exchanges on regional logistics, trade corridors, and issues of geopolitical cooperation.

The ties between the two countries stand for a long-term partnership. Annual trade turnover between Russia and Turkmenistan currently exceeds $1.6 billion. In 2025, the dynamics have shown a marked increase, with growth in the first quarter alone reaching 21.4%, while for the first half of the year, trade volumes rose by more than 30% year-on-year. At this pace, Russian and Turkmen officials estimate that total turnover could exceed $2.5 billion by the end of the year.

This upward trend is supported by the expanding scope of bilateral cooperation. Russian companies are making waves in Turkmenistan, dipping their toes not just in the usual waters such as metallurgy, mechanical engineering, and deliveries of machinery and equipment, but also in transport and logistics projects, construction, agriculture, and digital and telecommunications initiatives. As of today, around 40 business entities with Russian capital are registered in Turkmenistan. These include representative offices and branches of companies such as Gazprom, KAMAZ, Vozrozhdenie, Tatneft, and others. In addition, 342 investment projects involving Russian companies have been registered, with a total value of $3.5 billion, while in 2022 Russian Railways (RZD) and the Turkmen agency “Turkmendemiryollary” signed a cooperation program for 2023-2025 that envisions extensive collaboration, including RZD’s support in training specialists, digitalizing production processes, enhancing logistics for the development of transport corridors, including international ones, and assisting with the electrification of Turkmenistan’s railways.

In October 2025, several key documents were signed in Ashgabat, including a protocol of the intergovernmental commission, agreements between the commodity and raw materials exchanges of the two countries, and a package of customs cooperation documents aimed at simplifying trade procedures and expanding economic exchanges.

In the sphere of international and regional diplomacy, Turkmenistan and Russia continue to coordinate within several key structures. Ashgabat participates in the Commonwealth of Independent States (CIS), as well as in various Caspian and regional consultative formats focusing on security, transport, logistics, and sustainable development. Agenda items include the exchange of expertise and coordination of positions at international forums.

Even though there have been ups and downs in bilateral relations since Turkmenistan’s independence—including gas disputes, shifts in export routes, and attempts by Ashgabat to diversify its energy supplies, particularly toward China, where Turkmen gas exports reached $7.03 billion in the first 10 months of 2025—the current phase is marked by rising trade, expanding contacts, and an increase in joint projects. These trends indicate that both sides see tangible benefits in strengthening their partnership.

President Putin’s visit to Turkmenistan could provide an opportunity to consolidate these efforts. Owing to its neutral status and geographical position, Ashgabat is not just a cog in the wheel of regional transport; it also acts as a melting pot for discussions among Russia and its neighboring states—including Türkiye and Iran—on joint initiatives in logistics, transport, trade, and regional security. Particularly given the mutual interest in increasing freight turnover between Russia and Iran along the North–South corridor, which is already estimated at 15 to 23 million tons, including the Azerbaijani and Central Asian segments. In this context, Turkmenistan is emerging not only as a partner but also as an active mediator and coordinator of regional interests.

The visit could open a can of worms, leading to new agreements just in the nick of time before winter sets in, all while the global geopolitical landscape is shifting. These could encompass expanded deliveries of Russian machinery, equipment, and technologies; joint transport and logistics projects; cooperation in digital development, science, and education; and possibly cultural and humanitarian exchanges.

Overall, Russian-Turkmen relations currently rest on a solid practical foundation. Trade is picking up, cooperation is expanding, and political will is coming through. Putin’s visit represents not only a ceremonial gesture but also an opportunity to give bilateral cooperation a more systematic and institutional form that is mutually beneficial on the international stage.

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