EU and Turkmenistan Forge New Strategic Partnership

One of the key players in this gas-rich region is Turkmenistan. This country has the potential to become a major gas exporter to Europe. This is precisely why interactions between the EU and Turkmenistan are growing, especially in Brussels, the heart of the European Union.

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Central Asia is gaining growing attention from European countries, especially in the wake of the energy crisis sparked by the Russia-Ukraine war. Since 2022, European nations have been working to diversify their energy partnerships, with Central Asian countries becoming key players in these efforts, The Caspian Post reports citing Eurasia Review.

One of the key players in this gas-rich region is Turkmenistan. This country has the potential to become a major gas exporter to Europe. This is precisely why interactions between the EU and Turkmenistan are growing, especially in Brussels, the heart of the European Union. The EU frequently meets with Turkmen representatives, including the ambassador, to strengthen cooperation in the energy sector.

This Central Asian country has the potential to supply large volumes of gas in all directions in the coming years. The South Yolotan gas field, believed to be the second-largest in the world, boasts reserves of 21 trillion cubic meters.

According to Ibrayeva et al. (2018:152), Turkmenistan is the only Central Asian source capable of exporting significant amounts of gas to Europe. Furthermore, the International Energy Agency (IEA) projects that the region will become a major gas exporter, with total production rising from 143 billion cubic meters in 2009 to 265 billion cubic meters by 2035 (Gas Trade Flows in Europe, 2010; Teleuyev et al., 2017).

Source: British Petroleum, 2012. Statistical Review of World energy

Turkmenistan: A Strategic Energy Partner for the European Union

Turkmenistan pursues a multi-sector diplomacy strategy, with the European Union being one of its many partners. In the coming years, this Central Asian nation is poised to supply significant quantities of gas in various directions. The South Yolotan gas field, with estimated reserves of 21 trillion cubic meters, is regarded as the second-largest gas field in the world.

Revenue from gas exports constitutes a significant portion of Turkmenistan’s national budget, prompting Ashgabat to seek diverse energy partners while bypassing Russian territories. Since its independence, Turkmenistan has worked to reduce its reliance on Moscow’s energy policies, initially exporting gas to Iran and subsequently to China. The government remains proactive in diversifying its partnerships.

Ambassador Palvanov presented NE Global with various examples of the growing cooperation between his country and the EU, starting with trade, connectivity and energy.

Speaking about the level of bilateral cooperation this year, the Ambassador wished to highlight the recent visit of Rashid Meredov, Minister of Foreign Affairs of Turkmenistan to Brussels and his meetings with EU leaders, as well as a round table with the participation of European businesses and various institutions. These interactions led to the launch of a working group on energy in April and increased interest of European businesses and investments in the Turkmen market.

According to Sapar Palvanov: Turkmenistan and Europe have significant potential for cooperation in many key areas, such as sectors from energy to transport and regional security. Turkmenistan is actively working on diversifying its energy policy. That is why Turkmenistan wants to intensify its exchanges with Europe on the topic of green economy (Grandesso, F. 2024, June 4). 

A Strategic Energy Partner for the EU

On May 26, 2008, Andris Piebalgs, then European Commissioner for Energy, signed a Memorandum of Understanding in Turkmenistan in the presence of the country’s then-President, Gurbanguly Berdymukhamedov. The agreement aimed to strengthen mutual cooperation in the energy sector.

“Turkmenistan can be an attractive destination for EU investments in the development of new oil and gas fields, while the EU offers an appealing consumer market for Turkmen energy products. Today’s agreement clearly demonstrates the mutual benefits of a constructive and mutually beneficial energy relationship,” said Mr. Piebalgs.

EU-Turkmenistan: Multilevel Cooperation

Under its Central Asia strategy, the EU collaborates with Turkmenistan across various fields, including education, environmental protection, and economic development. The EU’s Central Asia Strategy of June 2019 and the accompanying Council Conclusions provide a comprehensive framework for regional engagement.

Bilateral relations between the EU and Turkmenistan are governed by the Interim Trade Agreement, which came into effect in August 2010. The European External Action Service (EEAS) highlights the EU’s intention to deepen its dialogue and cooperation with Turkmenistan.

Interparliamentary relations are conducted through EU-Turkmenistan Inter-Parliamentary Meetings, the latest of which (7th) was held in Brussels on November 14, 2024.

Neutrality as a Tool for Regional Stability

The Status of Permanent Neutrality as a Regional Stabilizer

Turkmenistan’s status of permanent neutrality has significantly contributed to its role in promoting regional stability and combating shared threats such as terrorism, drug trafficking, violent extremism, and transnational organized crime. On December 12, 1995, the United Nations General Assembly officially recognized this neutrality through a resolution.

This status has enabled Turkmenistan to maintain positive relations with major powers, becoming a cornerstone of its foreign policy. It allows the country to navigate complex international dynamics with a degree of independence.

Cooperation in Sustainable Development

The Turkmen government, fully aware of the urgency of climate action, is committed to advancing environmental and climate initiatives in collaboration with the European Union. For example, the EU launched the 2024-2028 Political Dialogue and Climate Action initiative for a greener Turkmenistan following a meeting in Ashgabat.

In his opening remarks, Borislav Dimitrov, Program Director at the EU Delegation to Turkmenistan, highlighted the Turkmen government’s dedication to climate agendas. He expressed confidence that this mutually beneficial project would foster dialogue and establish a strategic partnership.

The European Union is committed to supporting Turkmenistan’s transition to a sustainable, green economy while simultaneously improving its business environment. This commitment is reflected in the EU-Turkmenistan Interim Agreement on trade and trade-related matters, which has been in effect since August 2010. This agreement lays the groundwork for the anticipated ratification of the Partnership and Cooperation Agreement (PCA) by the European Parliament.

Climate Commitments

Turkmenistan recognizes the importance of the global climate agenda and has implemented measures at national, regional, and international levels, as noted by the Green Central Asia initiative, launched by Germany in 2020. Internationally, Turkmenistan has ratified key climate-related conventions, supported the Paris Agreement, and committed through its Nationally Determined Contribution (NDC) to reducing greenhouse gas (GHG) emissions by 20% by 2030, compared to 2010 levels under a Business-as-Usual (BAU) scenario.

The Ambassador said that Turkmenistan and the European Union aim to attract advanced European technologies to Turkmenistan to diversify and modernize their economy.

During an interview for neglobal.eu, Turkmen Ambassador Sapar Palvanov stressed that Turkmenistan considers the EU Green Deal as an important and commendable initiative that is in line with their commitment to sustainable development and environmental protection. He said that his government recognizes the importance of the transition to green energy and is actively investing in renewable energy projects, especially hydrogen and solar energy (Grandesso, F. (2024, June 4). Interview: EU and Turkmenistan are getting closer. Retrieved from https://www.neglobal.eu/interview-eu-and-turkmenistan-are-getting-closer/)

Conclusion

In July 2019, the European Union established a full-fledged delegation in Turkmenistan, signaling mutual strategic interest in enhancing relations. Since then, the number of business and official delegations visiting Turkmenistan has grown significantly, reflecting the strengthening ties between the two.

In summary, energy relations between the European Union and Turkmenistan have intensified over the past decade. Amid the Russo-European “energy chess game,” the EU has recognized Turkmenistan as a strategic partner for developing economic relations. Since the Russia-Ukraine war, Turkmenistan has emerged as a potentially decisive player in supplying gas to the EU.