Iranian business enters Turkmenistan

By Victoria Panfilova, an observer of Nezavisimaya Gazeta, exclusively for Vestnik Kavkaza

Iranian President Hassan Rouhani concluded his visit to Ashkhabad on Wednesday by signing a package of documents in the spheres of transportation, agriculture, electricity and cooperation between the border regions of Turkmenistan and Iran. The leaders of the two states agreed to increase the trade turnover to $60 billion a year.

The Iranian president paid a two-day visit to Turkmenistan and noted at a meeting with his Turkmen counterpart Gurbanguly Berdimuhamedov that Tehran and Ashkhabad continue developing close relations within the framework of fruitful cooperation, starting from the period that Turkmenistan gained independence. Experts note that bilateral relations are developed according to economic rationality, almost ignoring political differences. Andrey Kazantsev, the director of the MGIMO Analysis Center, told Vestnik Kavkaza that the countries have a long border, a long history, religious and civilization similarities. The territory of modern Turkmenistan used to be a part of the Persian Gulf. The capital of Persian-speaking Parthia, Nisa, was located near modern Ashkhabad.

Rouhani said at negotiations with the Turkmen leader that both states should use all their opportunities to expand bilateral ties. The talks were concluded by the signing of 17 agreements on development of relations in the economic, cultural, political, legal and science sectors. In Rouhani’s words, the documents stimulate further development of relations and benefit the whole region.

Moreover, the president of Iran spoke about the plans of Tehran to intensify cooperation in the energy sector, which started in the early 1990s. In 1998, the Korpeje-Kordkuy gas pipeline (it is 200km long and has a capacity of 10 billion cubic meters of gas a year) was built. The second line of the pipeline was put into commission soon after the launch, it has a capacity of 8 billion cubic meters of gas a year. The pipeline project was financed by Iran. The Iranian corridor allowed Turkmenistan to enter the gas market bypassing the post-Soviet space, reducing its dependence on Russia.

In Rouhani’s words, Iran wants to continue importing gas from Turkmenistan, increase purchases of electricity, intensify cooperation in transportation, engineering, agriculture and the petroleum industry. The Kazakhstan-Turkmenistan-Iran railway, opened within the framework of the North-South project in December 2014, will help achieve the goals.

The construction of the railway started in 2009. The Kazakhstani section (120km) was completed in 2012, it was connected to the Turkmen section Kyzylgaya-Bereket in 2013. The Iranian section Bereket-Gorgan was opened on December 3, 2014. The railway connects the three countries, China and Russia because its lines are interconnected in Central Asia. It is the second railway connecting Turkmenistan and Iran. The first railway connecting them is Tejen-Serakhs-Mashhad, it was opened in May 1996. The railway is the shortest route from Turkmenistan to the Middle East Region.

Tensions in Afghanistan are a common problem for Iran and Turkmenistan. Armed incidents continue on the Turkmen-Afghan border. “Iran and Turkmenistan are interested, like all neighbours of Afghanistan, in creating stability and peace. It is important for Iran because the main flow of drugs to Europe – the so-called western route – goes through the territory of the country. In this direction, Iran spends huge sums, intercepting about 30% of the drugs flowing through the territory. It is a serious indicator,” said Andrey Kazantsev.

Another problem for Iran, according to Kazantsev, is the Shia Hazara people. “It is an Afghan minority the Taliban had been actively fighting against, which has Iran’s support due to religious circumstances. That is why Iran is interested in creating effective mechanisms of cooperation with all neighbours of Afghanistan and preventing further destabilization along the perimeter of its borders, as well as in Turkmenistan,” said Kazantsev. In his words, Tehran pursues a special line in relations with post-Soviet states, as western experts admit when they avoid criticizing Iranian authorities. Tehran has always been committed to peaceful settlement of conflicts in the republics of the former USSR.

The expert believes that Rouhani, a moderate politician, would continue the course. In particular, he will not focus on Ashkhabad’s plans to supply Europe with gas, Tehran itself wants that role. However, if Turkmenistan shows excessive persistence in supplying Europe with gas, Rouhani may remind about the position of Iran: Tehran is steadfast against construction of any pipelines under the Caspian Sea before splitting it into national sectors of the five Caspian states.

Tehran offers Ashkhabad an alternative route to deliver natural gas through Iranian gas pipelines running through the territory of Turkey. The Turkmen side has not rejected the variant, neither has it given a positive response.