Iran, Turkmenistan strengthen energy, transportation ties with new agreements

Iran and Turkmenistan have signed four memoranda of understanding (MoUs) to enhance cooperation in energy and transportation, capitalizing on their strategic regional positions.

29 August 2024
ID : 55691
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Iran and Turkmenistan have signed four memoranda of understanding (MoUs) to enhance cooperation in energy and transportation, capitalizing on their strategic regional positions.

Iranian President Masoud Pezeshkian (R) and Turkmenistan’s National Leader Gurbanguly Berdimuhamedow shake hands before a meeting in the Iranian capital Tehran on August 28, 2024.

Iran and Turkmenistan have signed four memoranda of understanding (MoUs) to enhance cooperation in energy and transportation, capitalizing on their strategic regional positions.

The agreements were signed during a visit by Turkmenistan’s National Leader, Gurbanguly Berdimuhamedow, to Tehran on Wednesday.

This visit marks the first by a foreign leader since Iranian President Masoud Pezeshkian's cabinet took office last week.

President Pezeshkian hailed the MoUs as "strategic," highlighting a key agreement between the National Iranian Gas Company (NIGC) and Turkmenistan's state gas company, Türkmengaz. The agreement is expected to establish Iran as a regional gas transfer hub. The two countries have previously collaborated on gas swaps to Azerbaijan and Iraq, and the new MoU is anticipated to further solidify this partnership, though specific details have not been disclosed.

In addition to energy, the two nations agreed on a roadmap for expanding transportation cooperation. Talks to finalize a comprehensive transportation agreement are set to begin next month, led by an intergovernmental committee chaired by Iran’s transportation minister.

The MoUs also include a sisterhood agreement between the Caspian Sea ports of Amirabad in Iran and Turkmenbashi in Turkmenistan, enhanced customs cooperation, and a political cooperation agreement between the foreign ministries of both countries.

The agreements build on previous discussions between the two nations' private sectors. On April 28, 2024, a meeting in Tehran between Samad Hassanzadeh, President of the Iran Chamber of Commerce (ICCIMA), and his Turkmen counterpart, Mergen Gurdov, emphasized the importance of establishing a preferential trade system to boost bilateral trade, which currently stands at $450 million. Both sides highlighted the untapped potential in sectors like tourism, technology, and agriculture, and expressed a commitment to easing trade barriers, including visa requirements, to foster closer economic ties.

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