...

Turkmenistan, Mongolia gearing up to bridge gap between China and Caspian region

Economy Materials 5 June 2025 20:00 (UTC +04:00)
Turkmenistan, Mongolia gearing up to bridge gap between China and Caspian region
Aygun Baliyarli
Aygun Baliyarli
Read more

TASHKENT, Uzbekistan, June 5. The strategic partnership between Turkmenistan and Mongolia has ascended to a noteworthy peak, marked by esteemed state visits: Mongolian President Ukhnaagiin Khürelsükh graced Turkmenistan on October 12, 2024, and was followed by Turkmen leader Serdar Berdimuhamedow’s journey to Mongolia on June 1-2, 2025.

These were the first meetings at such a high level since the two countries shook hands and crossed the bridge of diplomatic relations on April 23, 1992. During the meetings, a bundle of crucial papers was signed to pave the way for cooperation and bolster the partnership.

For Turkmenistan, it was a tall order to rope Mongolia into the Revival of the Great Silk Road initiative. In this grand scheme, Turkmenistan is pulling out all the stops to champion the creation of an East-West transport corridor that links Central Asian nations with the Caspian region, the Caucasus, Europe, and East Asia.

While Mongolia, sitting pretty between Russia and China, is seen as a potential golden key in this intricate chain of transit links. Its involvement can really open doors for route connectivity, giving Turkmenistan the chance to spread its wings with export routes for its energy resources — natural gas and petroleum products — while also broadening the horizons for food and industrial goods supplies.

Moreover, for Mongolia, this is a golden opportunity to get its foot in the door of the Caspian Sea ports, which is particularly crucial for a landlocked nation. Mongolia’s reliance on coal, copper, and other mineral exports to China—over 90 percent of its foreign trade—along with its dependence on fuel and lubricant imports from Russia, is seen at home as a ticking time bomb for national security.

Conventions pertaining to transnational roadway and aerial conveyance, executed in June 2025, could catalyze novel prospects for the initiation of logistical corridors. Consequently, Mongolia will secure a pivotal alternative to its reliance on China, whereas Turkmenistan will bolster its status as a strategic transit nexus linking Central Asia, the Caucasus, and East Asia.

A pivotal phase of the negotiations encompassed the deliberation on economic synergies and energy collaboration between Turkmenistan and Mongolia.

On that account, Turkmenistan articulated its preparedness to evaluate the potential integration of Mongolia into the logistics of energy carrier distribution towards the eastern markets.

Mongolia possesses substantial deposits of coal and rare earth elements; however, it encounters a pressing demand for externally sourced petroleum products. The nation is characterized by constrained hydrocarbon reserves and an absence of indigenous refining infrastructure, culminating in approximately 90 percent of its petroleum derivatives being sourced from Russia.

Turkmenistan, in turn, is strategically focused on optimizing and diversifying its export conduits for hydrocarbons and electrical energy. The establishment of collaborative energy initiatives and the facilitation of transnational fuel logistics may unlock novel avenues for bilateral engagement.

Furthermore, the executives underscored the criticality of amplifying bilateral trade throughput. Mongolia possesses substantial capacity for the exportation of wool, cashmere, leather, and various meat and meat-derived products. Memoranda of understanding regarding synergistic collaboration in agronomy, veterinary sciences, and livestock management were identified as pivotal sectors for enhancement in bilateral commerce.

Nevertheless, it is imperative to acknowledge that the prevailing trade throughput between the two nations is markedly deficient: in the fiscal year 2024, Turkmenistan's inbound procurement from Mongolia was a mere $10,000, whereas Mongolia's outbound shipments to Turkmenistan were virtually negligible. This signifies substantial capacity for expansion and the imperative to amplify collaborative initiatives to surmount prevailing obstacles.

In the realm of geopolitics, both nations adhere to analogous doctrines — eschewing military coalitions, upholding mutual sovereignty, and refraining from intruding in domestic matters of one another. This methodology facilitates the sustenance of equilibrium in diplomatic relations, mitigating the influence exerted by dominant geopolitical entities. Mongolia places significant emphasis on Turkmenistan's non-alignment and concurrently endeavors to cultivate a foreign policy that is both equilibrated and autonomous.

In the forthcoming timeline, Mongolia and Turkmenistan are poised to initiate a bilateral intergovernmental commission aimed at enhancing economic collaboration. It will facilitate the oversight of the execution of the accords established and provide support in the formulation of collaborative initiatives. The conceptualization of establishing a commission was deliberated in 2015 during the diplomatic engagement of Turkmen Foreign Minister Rashid Meredov's visit to Mongolia. During that period, the parties reached a consensus on the imperative for synergistic collaboration across the domains of commerce, cultural exchange, educational initiatives, and humanitarian efforts. Currently, nations are revisiting this concept to foster enhanced and more enduring engagement while operationalizing all ratified accords.

In this manner, the partnership between Turkmenistan and Mongolia paves the way for a world of possibilities for both nations. For Mongolia, it will be a step in the right direction to lessen its reliance on China and Russia, open the floodgates to seaports, and broaden its energy horizons. For Turkmenistan, it's a golden opportunity to boost exports and solidify its standing as a key transit hub.

Tags:
Latest

Latest