On September 11, 2007, Kazakhstan’s President Nursultan Nazarbaev, along with a large Kazakh delegation, came to Ashgabat on a two-day official visit.  Having discussed a wide range of bilateral issues, the sides appear to have reached new perspectives to intensify Turkmen-Kazakh partnership in the energy sector and trade cooperation.

The relations between Turkmenistan and neighboring Kazakhstan have been growing steadily but rather fruitfully, given Berdimuhamedov’s relatively short period of term as Head of State. On May 12, the presidents of Russia, Kazakhstan and Turkmenistan met in the port city of Turkmenbashi to open up a new trans-Caspian gas pipeline to Russia via Kazakhstan.  On May 28-29, following this trilateral summit, President Berdimuhamedov visited his counterpart in the Kazakh capital of Astana, and signed a long-term agreement on expanding cooperation in trade, economy, science and culture. In particular, several mega-projects of building new railway, highway and air connections were agreed upon at the summit. This last visit to Ashgabat marked Nazarbaev’s fourth visit to Turkmenistan within eight months, and gave a further impulse for the realization of earlier agreements and mutual commitments.

Speaking on strengthening bilateral cooperation, President Berdimuhamedov invited Kazakh companies to participate in large-scale and long-term national business projects in Turkmenistan.  Particularly, the Turkmen president said the Turkmen side would expect more Kazakh ventures in the Avaza national tourism zone on the Caspian Sea coast. Currently, nine firms with Kazakh capital are officially registered to be operating in Turkmenistan, and this number is expected to rise as the Turkmen side agreed to provide the favorable conditions necessary to carry out work both in the tourism sector as well as in the oil and gas sectors.  It is noteworthy that the president has earlier simplified visa regulations, created a preferential tariff system, and pledged to invest one billion dollars in developing the Avaza tourist zone.

According to the national project designed by a special committee, the Avaza zone on the Caspian coast is expected to be the main hub for tourists as well as the major business center of Turkmenistan, surpassing the capital city Ashgabat in certain respects. Within this context, Gurbanguly Berdimuhamedov also vowed to build a major international airport and a giant cargo and passenger port as well.

For his part, President Nazarbaev expressed the view that Turkmen companies in the textile industry, the second major sector of Turkmen economy, could also participate in projects in the Shymkent free economic zone of Kazakhstan.

Amidst the talks on major projects, special emphasis was put on expanding trade relations between the two neighboring countries in the region. President Nazarbayev confirmed that the Kazakh Kazmortransport Company was working on a new ferry service project between the port cities of Turkmenbashi and Aqtau. In addition to existing trade routes between the two countries, this new ferry service is expected to enhance the trade capacities of both countries, and open up new markets for Turkmen agricultural goods. As was reported in official sources, Kazakhstan is seriously considering opportunities to import cotton from Turkmenistan. According to official statistics, if the trade turnover between Turkmenistan and Kazakhstan made up US$38.3 million in 2006, it reached US$31 million only in the first half of 2007.

Developing stable relations with Kazakhstan plays into the best interests of Turkmenistan. Since the announcement of major projects, Kazakhstan is going to be a main transit territory for Turkmen blue fuel.  In addition to all the Turkmen pipelines that go to Russia, Kazakhstan has pledged to build the part of the Turkmenistan-China gas pipeline that is to cross Kazakhstan’s territory. As was discussed at the summit, the Development Bank of Kazakhstan is considering sponsoring major bilateral projects. Moreover, as President Nazarbayev told representatives of the media outlets, Kazakh banks will soon open their branches in Turkmenistan as well.

All in all, President Nazarbayev’s consecutive visits to Turkmenistan seem to have opened new perspectives for both sides to develop tourism, expand trade relations and carry out earlier agreements. Considering Turkmenistan’s relations with Kazakhstan prior to Berdimukamedov’s administration, today’s intensive bilateral cooperation is an indication of a sharp break from the past.