Iran–Turkmenistan relations

Iran-Turkmenistan relations

Iran	Turkmenistan

Iran and Turkmenistan have had relations since Turkmenistan's independence from the Soviet Union in 1991. Iran was the first nation to recognize Turkmenistan as an independent nation.[1] Since then, the two countries have enjoyed good relations and have cooperated in economic, infrastructure, and energy sectors.

The Caspian Sea territorial boundaries is a cause of tension between the two. Iran's Islamic theocracy and Turkmenistan's secular dictatorship as a form of government also has prevented the development of a closer friendship.

Trade

Tehran has the largest volume of trade exchange with Turkmenistan after Russia. The Tajan-Mashhad-Sarakhs railroad, the $139 million Korpeje-Kurt Kui gas pipeline in western Turkmenistan and the $167 million Dousti ('Friendship' in Persian) Dam in the south of the country were built through a joint venture. Balkanabad-Aliabad power transfer line and several other projects such as the program of fiber-optic communications development, construction of bunkers and other objects in Merve and a refinery in Turkmenbashi, construction of liquefied gas terminals, highways are instances of growing bilateral relations. In 2009 about 100 industrial projects have been built or are being built in Turkmenistan with Iranian help.

Annual trade turnover decreased to $1.2 billion in 2009 from $3.2 billion in 2008 mostly because of decrease in the price of oil and gas. Turkmenistan’s exports to Iran increased by 42 percent during January–September 2007. Turkmenistan’s main exports to Iran were natural gas, oil and petrochemical products, as well as textiles. Turkmenistan sold 8 billion cubic meters of gas to Iran in 2010 from 5.8 bcm in 2005. Turkmenistan normally supplies 5 percent of Iran’s gas demand. Both countries inaugurated Dauletabad–Sarakhs–Khangiran pipeline in 2010 to raise natural gas supplies to Iran to 20 billion cubic meters a year.