





Nationality: Turkmenistani.
Population (2005 est.): 4.9 million.
Population growth rate (2005 est.): 1.81%.
Health (2005 est.): Infant mortality rate--73.1/1,000. Life expectancy--61.3 years.

Type: Republic.
Constitution: May 18, 1992.

Economy (2005)
GDP (PPP - Purchasing Power Parity): $29.38 billion.
GDP per capita (PPP): $5,900.
GDP real growth rate (IMF estimate): 7%. Note: official government statistics show 20.7% growth, but these estimates are unreliable.
Inflation rate: 10%.
Agriculture: Products--cotton, grain, livestock.
Trade: Exports ($4.7 billion f.o.b.)--gas 47%; oil 34%; petrochemicals 15%; cotton 4%. Partners--Ukraine, Iran, Italy, Turkey, Russia, United States. Imports ($4.175 billion f.o.b.)--machinery and equipment 46%; chemicals 11%; food and live animals 5.3%. Partners--United States, Russia, U.A.E., Ukraine, Turkey, Germany.
Debt, external (2001 est.): $2.4 billion to $5 billion.







Following the end of the Cold War and the breakup of the Soviet Union, Turkmenistan declared its independence on October 27, 1991. Saparmurat Niyazov became the first president of the new republic and still remains the supreme decision-maker. On December 28, 1999, Niyazov's term was extended indefinitely by the Mejlis (parliament), which itself had taken office only a week earlier in flawed elections that included only candidates hand-picked by President Niyazov. Neither independent political activity nor opposition candidates are allowed in Turkmenistan. The Democratic Party of Turkmenistan (DPT) is the only legal political party. Political gatherings are illegal unless government sanctioned, and the citizens of Turkmenistan do not have the means to change their government democratically.



The population is 89% Sunni Muslim. The constitution provides for freedom of religion and does not establish a state religion; however, in practice, the government continues to monitor all forms of religious expression. Amendments to the law on religious organizations adopted in March 2004 reduced membership requirements from 500 to 5. All groups must register in order to gain legal status with the government. Until 2004 the only religions that were registered successfully were Sunni Islam and Russian Orthodox Christianity, which are controlled by the government; by January 2006, nine minority religious groups had registered. The government limits the activities of unregistered religious congregations by prohibiting them from gathering publicly, proselytizing, and disseminating religious materials.

A Soviet-style command economy greatly limits equality of opportunity. Industry and services are almost entirely provided by government or government-owned entities, while agriculture is dominated by a state order system. Women face discrimination, and their freedom is somewhat restricted due to traditional socio-religious norms. All citizens are required to carry internal passports, noting place of residence, and movement into and out of the country, as well as within its borders, is difficult. President Niyazov introduced a new migration law in late 2005 that suggested a reimposition of exit restrictions on Turkmen citizens. As of August 2006, the law was not fully implemented and its effect remained unclear.

Corruption continues to be pervasive. Power is concentrated in the president; the judiciary is wholly subservient to the regime, with all judges appointed for 5-year terms by the president without legislative review. The president routinely dismisses cabinet members and other government officials on charges of corruption and they are subsequently tried in secret trials and frequently imprisoned or sentenced to internal exile. These dismissals, however, are often politically motivated and have little impact on the culture of corruption.

Principal Government Officials
President--Saparmurat Niyazov
Foreign Minister--Rashit Meredov
Ambassador to the United States--Meret B. Orazov


Turkmenistan is an important supplier of raw materials, especially natural gas, petrochemicals and raw cotton. With the 2005 harvest of 700,000 tons, Turkmenistan is the second largest cotton producer in the former Soviet Union after Uzbekistan. However, the crop yield has been steadily declining since independence because of poor irrigation and management practices.


Despite its non-transparency about gas reserves, Turkmenistan remains the second largest gas producer in the former Soviet Union after Gazprom. Production figures have been consistently climbing since 1998 when Turkmenistan was virtually cut off from all outside markets by Russia. Turkmenistan's 2005 output was an estimated 63 billion cubic meters (bcm); the bulk of which (45.2 bcm) went to Ukraine, Russia and Iran.

Turkmenistan relies exclusively on Russia for its export routes as most of the pipeline network is laid on Russian territory. Russian control of the northward pipeline is a source of frequent gas price disputes with Russia. Turkmenistan managed to hike up its previous average price of $44 per 1,000 cubic meters at the end of 2005. It currently holds a contract with Gazprom to supply 30 bcm in 2006 at $65 per 1,000 cubic meters. Ukraine countered with a deal to supply 40 bcm at $50 per 1,000 cubic meters (cm) in the first half of 2006 and $60 per 1,000 cubic meters in the second half of 2006. It is unclear if Turkmenistan can fulfill these obligations. Turkmenistan also exports to Iran about 8 bcm a year.

Turkmenistan's 2005 oil production dropped to 9.5 million tons (about 1%) over that of 2004. Among other major exports are liquefied natural gas (LNG) and polypropylene.

With an authoritarian post-communist regime in power, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain inefficiencies in its economy. Privatization goals remain limited, with a substantial private share only in food processing, consumer trade and services. Despite the increased inflow of gas revenue, prospects in the near future are uncertain; widespread internal poverty, the burden of foreign debt, and the unwillingness of the government to adopt market-oriented reforms continue to offset gas-related gains. Turkmenistan's economic statistics are closely held secrets, and published GDP and other figures are subject to wide margins of error. Turkmenistan's unrealistic goal of "self-sufficiency" also artificially sustains the cultivation of inefficient crops, such as wheat and cotton. The 2005 UN Development Program (UNDP) Human Development Report places Turkmenistan in the category of "medium human development" although the unemployment rate may be as high as 70%. Turkmenistan has cooperated with the international community in transporting humanitarian aid to Afghanistan.

Turkmenistan's declaration of "permanent neutrality" was formally recognized by the United Nations in 1995. Although the Government of Turkmenistan favors high-profile purchases from the United States, it has significant commercial relationships with Turkey, Russia, and Iran, and increasingly with China. The government worked closely with the Taliban regime in Afghanistan until September 11, 2001, and until that time had a growing cross-border trade with the regime in Afghanistan.

Turkmenistan, Kazakhstan, Tajikistan, and Uzbekistan wrestle with sharing limited water resources and regional environmental degradation caused by the shrinking of the Aral Sea. Multilaterally accepted Caspian Sea seabed and maritime boundaries have not yet been established. Iran and Turkmenistan insist on dividing the Caspian Sea into five equal sectors while Azerbaijan, Kazakhstan, and Russia have generally agreed upon equidistant seabed boundaries.





Principal U.S. Officials
Charge d'Affaires ad interim--Jennifer L. Brush
Political-Economic Officer--Heather A. Troutman
Public Affairs Officer—Andrew B. Paul
Defense Attache- LTC James F. Zink
Consul of the United States of America - Elizabeth W. Webster
Management Officer--Molly A. Fayen
USAID Director— G. Ashley Moretz
Peace Corps Director-- William R. Myer




[This is a mobile copy of Turkmenistan (11/06)]

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