ARMENIAN-TURKMEN COOPERATION TO DEVELOP STABLY

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ARMENIAN-TURKMEN COOPERATION TO DEVELOP STABLY

 

INTERVIEW OF TURKMENISTAN'S AMBASSADOR PLENIPOTENTIARY AND EXTRAORDINARY TO ARMENIA TOILY KURBANOV

 

Toily Kurbanov was born in 1971. He graduated from the Russian Economic Academy. Since 1993, he has been working at different posts of Turkmenistan's Vnesheconombank (Foreign Economy Bank). In 1997, he was appointed to the post of Turkmenistan's Minister for Economic Relations. In 1998, Kurbanov became the Chairman of the State Tourist Corporation. Toily Kurbanov became Turkmenistan's Ambassador Plenipotentiary and Extraordinary to Armenia in February, 2000.

 

- Mr. Ambassador, official visit of Armenia's President to Turkmenistan will be held soon. What issues will be discussed during the meeting between Saparmurad Niyazov and Robert Kocharian?

 

- The planned visit has been postponed two times. Once it was postponed by the request of the Armenian side because of the October 27 tragical events and in February, 2000, it was postponed under the request of the Turkmen side as the Turkmen President was undergoing a medical check-up. Presently the terms of the visit are being discussed by foreign political departments of our countries.

 

It is important that both the Armenian and the Turkmen side understand the significance and usefulness of the visit. During the visit, issues connected with the necessity to increase the volumes of

trade balance between the countries, to improve the economic relations, both at the level of enterprises and export-import structure will be discussed. We are going to discuss several initiatives of Armenia's Ministries and departments. That will initiate trade and integration processes.

 

- Is Armenia's debt for Turkmenistan's gas an obstacle for the development of mutually beneficial economic cooperation of ourcountries? Is the issue on the reorganizing of the debt at the agenda?

 

- Armenia's debt is not a problem or a factor limiting the both sides' motivation for the development of our trade-economic relations. Armenia's receiving credits by postponing the terms of payments for the gas supply, evidences that the factor of debts is rather active in the history of the bilateral relations. Although Armenia was in a bad economic situation at the first half of 90s , it has shown itself as a reliable partner. Presently Armenia's debt is making $16 mln. This debt has been registered as the Government's direct debtor liability and the state budget is the source for the

debt repayment. That is why there is no necessity for working out any additional schemes.

 

- What were the reasons for the decrease of the Armenia-Turkmenistan trade balance volume from $195 mln down to $7 mln, observed for the last 5 years?

 

- It took place because of the problems connected with the transit of the Turkmen gas via the territory of the neighbor states, because of those problems the supplies of the Turkmen gas became limited. But speaking about a long-term perspective, sooner or later we are to diversify the export's trade structure both in Armenia and Turkmenistan. And there is a great potential. For example,

Turkmenistan has obtained an additional level of diversification in different spheres of industry as well as in the energy sphere. Opportunities for the generation and export of the electric power

have increased. We have started to exploit new industrial productions on natural gas liquefying and exporting. That increases the mobility of the energy resources.

 

 

For the last 3-4 years, a stable growth of the GDP making 8-14% is observed in Turkmenistan, that brings to the increase of the internal demand and creates perspectives for the Armenian goods' placement at the Turkmen consumer market. However, it is necessary to raise the legislative base of the Turkmen-Armenian economic relations from the structural of interstate agreements up to civilized forms of direct agreement relations.

 

- Please, tel about the projected interstate agreement in the sphere of industry and energy.

 

- As I know, the agreement is at the stage of elaboration. The cooperation between the energy enterprises of Turkmenistan and Armenia will be possible in the future. It is especially actual in

the sphere of the energy supply and consuming as well as in the sphere of the Turkmen natural gas sale. There are different ways for the cooperation - it is possible to trade by direct relations between

the producers and consumers or use the services of mediator companies, which have already shown themselves as reliable partners for the sale of gas at the CIS states. All these issues are discussed

by our specialists. The main thing is that both Turkmenistan and Armenia have business interest and this means that the document will be signed.

 

- Armenia is receiving the Russian gas, using the services of the ITERA international corporation. Is it more expedient to use the Turkmen gas instead of the Russian one and what is the difference in the conditions of the supply?

 

- ITERA company has recommended itself as a reliable company for the supply of the gas to CIS states, successfully solving the problem of the solvent demand not only in Armenia, but in other CIS states. For the last 5-6 years, the gas market has developed and there will not be much difference in the price scheme.

 

- How would You estimate Armenia's intention to join the main Transcaspian gas pipeline by a separate branch?

 

- The negotiations on the Transcaspian project have progressed much for the half a year. After the adoption of the Istanbul declaration consultations between producers, consumers, transit countries are being held. Main obstacles for the implementation of the project will be overcome and an agreement base will be formed soon. After that the project will get financial funds.

 

The idea on using producing capacities of the Transcaspian gas pipeline for satisfying the gas demand in Armenia is rather interesting. However, no serious negotiations have been held on

these issues. We know that the Armenian side is making calculations on the project. We think, that after the calculations have been made, and the feasibility study has been prepared, Turkmenistan's gas producers, including both national company and foreign companies, will discuss the proposals.

 

- Official Ashgabad has stated that the possibility for the gas sale to Russia and Iran are considered as an alternative to the Transcaspian gas pipeline. Armenia is interested in the Iranian direction as there is a real project for the construction of Iran-Armenia gas pipeline. What are perspectives for the Iranian direction?

 

- You know, the position of Turkmenistan foresaw the variety of the natural gas export lines. This approach will be realized sooner or later. Projects on pipelines are usually capital-intensive and that

is why their expediency lies in the feasibility study - whether the project will bring profit to producers, consumers and transit states. We are elaborating the project on transportation of the Turkmen gas to Turkey via the territory of Iran. The feasibility study has been completed and it proves that the project is economically profitable, taking into account the characteristics of the Turkish markets, Southern European markets and the dynamic of gas consumption volumes

growth.

 

- According to the Armenian experts, the most rational variant of the route is the one passing via the territory of Armenia. Are You aware of this point of view?

 

- We have been informed on it. However, no alternative to the Transcaspian gas pipeline has been introduced officially. We are not to forget about the high political risk factor.