Energy Transportation Leads Turkmenistan-Kazakhstan Talks

Ashgabat, 11 September 2007 (nCa) --- The presidents of Turkmenistan and Kazakhstan discussed a wide range of topics Tuesday in Ashgabat but the dominant theme was transit and transportation of energy resources.

President Nursultan Nazarbaev of Kazakhstan, who is on official visit to Turkmenistan, said that Allah has not been stingy in blessing Turkmenistan and Kazakhstan with energy resources. These resources must be sold at best possible prices to bring benefits to the people, he said.

Nazarbaev said that the energy resources must be exported in all four directions of the compass including the present route through Russia. He supported the shipping of oil and gas to China and to Persian Gulf through Iran. He did not exclude the possibility of using the Trans-Caspian export route, adding that Kazakhstan was already exporting oil through tankers to Baku. President Berdymuhamedov concurred with Nazarbaev.

The sides hinted that the deal on the Caspian coastal pipeline, involving trilateral arrangements between Turkmenistan, Kazakhstan and Russia could be formalized this month.

It was evident during the tête-à-tête, the expanded talks and the press conference that both Kazakhstan and Turkmenistan have reached full understanding on cooperation in transit and transportation of all kinds of goods, above all energy resources.

The Tuesday meeting, that gave the journalists the opportunity to pose some questions when both the presidents moved to the marble hall of the presidential palace, smelled of big money that will come from wheels and pipes running across the North-South trade and transportation corridor – a futuristic vision that would integrate predominant areas of economic activity of Iran, Turkmenistan, Kazakhstan and Russia.

While Turkmenistan and Kazakhstan are ready to send their energy resources in any possible direction, they are quickly identifying the areas where their proximity to Caspian can pay huge dividends.

Turkmenistan has announced a 16-kilometers long tourist zone along its Caspian coast that is expected to attract investment and tourists from all over the globe. Kazakhstan has matched the deal by announcing US $ 70 billion package to transform Aktau – its port at Caspian – into a tailor-made showcase of what petro dollars can do to a fishing village.

Railway link is an important part of the North-South corridor and it is expected that Turkmenistan and Kazakhstan will sign a deal for railway link between Uzen (Kazakhstan) and Kyzylkaya (Turkmenistan) before Nazarbaev leaves Ashgabat Wednesday afternoon.

The remaining part of the rail link that will connect Iran with Turkmenistan is expected to enter the stage of formal contract at the sidelines of the forthcoming Caspian summit in October this year in Tehran.

The Turkmenbashy-Aktau-Beneu-Astrakhan railway line will come into service by 2012.

Each country will build the railway line on its territory from its own resources but the expert groups will consult regularly with each other.

The Tuesday meeting saw the signing of three documents: 1. MoU on cooperation between the municipalities of Ashgabat and Astana; 2. Cooperation between the ministries of health on sanitary-epidemiological issues; and 3. Joint communiqué signed by the presidents of both the countries.

Kazakhstan said that it was ready to open representative and branch offices of its banks and business houses in Turkmenistan. Turkmenistan, in turn, said that it would consider the possibilities of investing in Kazakhstan.

Berdymuhamedov thanked Nazarbaev for his support of the idea of establishing UN regional centre for preventive diplomacy in Ashgabat and said that Turkmenistan backs the proposal to establish regional information centre for struggle against narco-traffic with headquarters in Astana.

It is possible that Turkmenistan will import some wheat flour from Kazakhstan and Kazakhstan will buy some cotton from Turkmenistan.

Turkmenistan-Kazakhstan joint business forum will hold its meeting on Wednesday.

Here is the unofficial translation of the joint communiqué

The official visit of the president of Kazakhstan, Nursultan Nazarbaev, to Turkmenistan took place on 11-12 September 2007 at the invitation of the president of Turkmenistan, Gurbanguly Berdymuhamedov

During the negotiations, held in the atmosphere of complete mutual understanding and friendship, the heads of state carried out exchange of opinion on a wide range of questions related to Turkmenistan-Kazakhstan relations, and urgent international and regional problems, representing mutual interest.

The presidents have expressed deep satisfaction at the current state of relations between Turkmenistan and Kazakhstan, have confirmed readiness for further cooperation in various areas on the basis of equality, and have determined particular directions of bilateral relations. The heads of state have noted that strong friendly relations exist between Turkmenistan and Kazakhstan and the level of cooperation in political, economic and cultural-humanitarian spheres is rising steadily.

By discussing the questions of trade-economic relations, the presidents have noted the importance of interaction in this sphere and have expressed aspiration to strengthen economic partnership on the basis of equality and mutual benefit, and have also expressed the need for maximum use of potential opportunities of the two countries.

The presidents have emphasized the importance of cooperation in the fields of fuel and energy complex and transportation of energy resources.

The presidents ascertained the presence of solid legal base for cooperation between Turkmenistan and Kazakhstan and noted the expediency for its perfection. The heads of state have expressed the necessity for further joint work for preparation of projects of bilateral international contracts.

The heads of state have confirmed mutual interest in deepening the relations in the fields of culture, arts, tourism, sports and activization of contacts in other spheres. In this context Turkmenistan and Kazakhstan express the dedication to preserve and strengthen spiritual and humanitarian relations between the people of two countries.

Concerning international questions, the heads of state have emphasized the mutual aspiration of TurkmenistanKazakhstan to promote strengthening of peace and stability and establishment of a climate of trust and mutual understanding at regional and international level. and

The presidents informed each other on socio-economic processes taking place in both the countries and have exchanged opinions concerning cooperation on various international problems in the framework of CIS.

It was underlined that the agreements achieved in Turkmenistan and in Astana in May are important factors for stabilization of conditions in the region and offer wide prospects for strengthening all-round relations, decision of economic problems, and increase the well being of the people of Turkmenistan and Kazakhstan.

During the negotiations particular ways and directions for cooperation between the two countries in priority areas were determined.

Turkmenistan and Kazakhstan attach special importance to strengthening the role of the United Nations in decision of global and strategic questions of international security and steady development, achievement and realization of the objectives and problems, as defined in the UN charter, and also other documents of the UN. In this context the heads of state have noted with satisfaction the importance of opening the UN regional centre for preventive diplomacy in Ashgabat.

The presidents have noted the necessity of further development of cooperation in struggle against terrorism, illegal movement of narcotics and psychotropic substances and precursors and other threats to international security.

The heads of paid attention to the questions related to the Caspian sea and have emphasized that the development and conclusion of the convention about the legal status of Caspian is a prime and urgent problems for all the littoral states. Turkmenistan and Kazakhstan consider that the prompt determination of the legal status of Caspian sea will allow creation of favourable conditions for effective and rational development of its hydrocarbon and biological resources, protection and preservation of the unique eco system of Caspian.

The presidents acknowledged expedient realization of consultation on bilateral questions and also on multilateral problems representing mutual interest. The bilateral consultation will be carried out at various levels including the meetings of the heads of state of the two countries, heads of ministries and departments and visits of official delegations.

The presidents have expressed confidence that the Turkmen-Kazakh relations, bsed on historical connections, are on a high level and fully correspond to the spirit of friendship and good neighbourliness, adequately answering the fundamental interests of the people of Turkmenistan and Kazakhstan.

By expressing satisfaction at the results of the visit the parties have noted that the constructive and fruitful negotiations will contribute hugely to development and strengthening of friendship and wide cooperation between the people of the two countries. The visit ha brought Turkmenistan and Kazakhstan closer together and has deepened mutual understanding and trust of the two people.

The president of Kazakhstan has expressed sincere gratitude to the president and people of Turkmenistan for warm welcome and hospitality accorded him and his delegation.

The president of Turkmenistan, Gurbanguly Berdymuhamedov

The president of Kazakhstan, Nursultan Nazarbaev

Ashgabat, 11 September 2007 /// nCa