Minister offers roadmap to boost Tehran-Ashgabat trade to $3b by 2028
Turkmenistan determined to expand gas ties with Iran
Iran’s Minister of Roads and Urban Development, Farzaneh Sadegh, proposed drafting a three-year cooperation roadmap to increase trade between Tehran and Ashgabat to $3 billion by 2028, while Turkmenistan’s Foreign Minister Rashid Meredov emphasized the need to strengthen bilateral gas collaboration.
Speaking at the 18th session of the Iran-Turkmenistan Joint Economic Cooperation Commission on Monday, Sadegh stated, “Last year (began on March 20, 2024), bilateral trade reached $600 million, reflecting growth compared to the previous year.”
“Cooperation with Turkmenistan is a priority in the Islamic Republic of Iran’s policies. The presence of high-ranking officials from both nations, the establishment of joint commissions, and working committees demonstrate the shared resolve to achieve mutual goals,” she emphasized.
Referring to the 17th Joint Cooperation Meeting held in Ashgabat on November 17-18, 2023, Sadegh noted, “Since then, bilateral agreements have been diligently pursued, and their implementation remains satisfactory.”
“Between the 17th Commission session and today, we reached a strategic agreement in transport and transit, setting a target of 20 million tons of goods transiting through both countries by 2028,” she added.
However, Turkmenistan’s deputy prime minister and foreign minister, addressing the $460.99 million trade volume between Tehran and Ashgabat in the past year, said, “This figure is unsatisfactory for two friendly, brotherly nations. We must explore solutions to enhance relations.”
“Bilateral trade has grown by just 1% compared to 2003, despite aiming for $5 billion a decade ago — a target we once achieved,” Meredov noted.
He urged, “We must define new pathways and mechanisms to develop bilateral ties, resolving existing border trade issues.”
Detailing the breakdown, the Iranian minister said, “The allocation for each transport mode is as follows: 6 million tons via rail, 7 million tons via road, 2.5 million tons via combined transport, and 500,000 tons via maritime. Sustaining this trajectory until 2028 will unlock new horizons for both nations’ regional transit roles.”
Rail cooperation
On rail cooperation, Sadegh said, “The agreement to exchange 400 railcars daily at the Sarakhs border and 100 at the Incheh Borun border marks a critical milestone. Efforts by both nations’ railway authorities are underway to operationalize this goal.”
Regarding customs collaboration, she stated, “Both sides have taken effective measures, including six-monthly meetings between customs chiefs and the signing of a Joint Action Plan to deepen customs cooperation starting in 2024.”
Expanding gas ties
Speaking at the same session, Meredov declared, “We are committed to expanding gas cooperation with Iran. Pursuing long-term gas exports to Iran and transiting Turkmen gas via Iran to third countries are among our priorities.”
“We possess all necessary capacities and resources to advance gas exports to Iran. Several issues are under review, and we hope to finalize measures to strengthen these exports,” he stressed.
On petrochemical collaboration, Meredov said, “the two sides, over the past 15 years, have achieved strong cooperation in petrochemicals and gas-to-petrochemicals. We stand ready to exchange expertise in this field.”
“Iranians possess valuable expertise in the petrochemical and gas-to-petrochemical sectors. Iranian companies, like those from other countries such as Japan and South Korea, can operate in this field in Turkmenistan,” he said.
Meredov further outlined plans, “We aim to produce fertilizers, establish synthetic gasoline plants, and other projects in Turkmenistan, initially through cooperation with Iran, to boost our industrial capacity.”
During his address at the Tehran Dialogue Forum, the Turkmen foreign minister also stated that his country supports the full implementation of projects such as a highway from Ashgabat to the Iranian border.
“We support the comprehensive implementation of projects like a highway from Ashgabat to the Iranian border. At the same time, it is essential to coordinate efforts among Turkmenistan, Pakistan, and other regional countries to establish a regional transportation network extending beyond Central Asia to the East, West, and South,” he added.