Turkmenistan's declaration of "permanent neutrality" was formally recognized by the United Nations in 1995. Former President Niyazov stated that the neutrality would prevent Turkmenistan from participating in multi-national defense organizations, but allows military assistance. Its neutral foreign policy has an important place in the country's constitution. Although the Government of Turkmenistan claims to favour trade with and export to the United States and Turkey, it has significant commercial relationships with Russia and Iran and a growing cross-border trade with Afghanistan. The Government of Turkmenistan often appears to be trying to use the conflicting interests of these regional powers as a means to extract concessions from the others, especially on energy issues.
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Caspian Sea boundaries are not yet determined with Kazakhstan, Azerbaijan and Iran. Turkmenistan has no common land or Caspian Sea border with Russia. Turkmenistan and Uzbekistan have a dispute over water-sharing. Also, Narcotics from Afghanistan pass through the country on their way to Russian and European markets. Issues between Russia, Kazakhstan and Azerbaijan were settled in 2003. Problems remain also between Iran and Azerbaijan.
Following the death of President Saparmurat Niyazov in December 2006, there has been much speculation and uncertainty regarding the fate of Turkmenistan's natural resources. Turkmenistan is rich in natural gas, and currently sells most of its gas to Russia and Ukraine. However, the recent change of regime has raised questions that perhaps in a new political climate the People's Republic of China, India, Iran and the United States could start to play a more prominent role.
Turkmenistan is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.[1]
Turkmenistan is a member of the United Nations, the International Monetary Fund, the World Bank, the Economic Cooperation Organization, the Organization for Security and Cooperation in Europe, the Organisation of Islamic Cooperation, the Islamic Development Bank, the Commonwealth of Independent States, Asian Development Bank, European Bank for Reconstruction and Development, and the Food and Agriculture Organization.
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. Trade between the two nations surpasses one billion dollars and Iranians are the second-largest buyers of Turkmen commodities, mainly natural gas. 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.
The Caspian Sea territorial boundaries is a cause of tension between the two. Iran's Islamic theocracy and Turkmenistan's secular dictatorship also prevent the development of a closer friendship.
Recently, Russian-Turkmenistan relations have revolved around Russia's efforts to secure natural gas export deals from Turkmenistan. Russia is competing with China, the European Union, India and the United States for access to Turkmenistan's rich supply of hydrocarbons.[6] The two countries often lock horns over price negotiations for gas exports to Russia.[7][8] Turkmen president Gurbanguly Berdimuhamedow has agreed to help supply and expand the Russian-backed Pricaspiysky pipeline, however no action has yet occurred towards this goal.[9]
The United States and Turkmenistan continue to disagree about the latter country's path toward democratic and economic reform. The United States has publicly advocated industrial privatization, market liberalization, and fiscal reform, as well as legal and regulatory reforms to open up the economy to foreign trade and investment, as the best way to achieve prosperity and true independence and sovereignty. The U.S. Embassy, USAID, and the Peace Corps are located in Ashgabat, Turkmenistan.
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