Turkmenistan is taking further steps to deepen its integration into the global economy by expanding strategic cooperation with leading international financial institutions. A key element of this policy is its long-term partnership with the European Bank for Reconstruction and Development (EBRD), which received fresh momentum following a visit to Ashgabat by EBRD President Odile Renaud-Basso.
The partnership, which began in 1992, has already produced tangible results. According to the newspaper ‘Turkmenistan’, the EBRD has financed more than 80 projects in the country, providing around €350 million in funding across sectors including energy, transport, logistics, agribusiness and finance.
Located at a strategic crossroads in Central Asia, Turkmenistan is also working to modernize its institutional environment and strengthen the legal framework for international investment.
New Strategy to 2032: Macroeconomic Stability and Green Investment
A key outcome of President Serdar Berdimuhamedov’s talks with the EBRD leadership was the signing of a package of strategic memoranda. One of the most significant is a Memorandum of Understanding between the Central Bank of Turkmenistan and the EBRD outlining key strategic priorities for the bank’s activities in Turkmenistan for 2027–2032.
While earlier cooperation focused largely on individual infrastructure projects and support for local businesses, the new framework takes a broader, more systemic approach. Its main priorities include:
- Improving competitiveness and the business environment: expanding long-term lending to the private sector through commercial banks and supporting the adoption of advanced international standards.
- Expanding trade and regional connectivity: helping Turkmen producers access European and global markets through international guarantees and letters of credit.
- Environmental and energy security: promoting resource-efficient technologies, preferential green financing and joint projects under the Global Methane Pledge.
Making the Private Sector More Competitive Globally
One of the central objectives of the 2027–2032 memorandum is to help Turkmenistan’s private sector and entrepreneurs become more competitive in international markets.
To support this goal, specialized credit lines will be established through commercial banks with EBRD assistance. Businesses will gain access to longer-term investment financing not only to expand their operations but also to acquire innovative technologies that can help them meet international production standards.
The memorandum also envisages using the EBRD’s international network and expertise to facilitate access to foreign markets, including through internationally recognized letters of credit and guarantees.
Strengthening the Banking Sector
A separate Memorandum of Understanding between the Central Bank of Turkmenistan and the EBRD focuses on strategic cooperation to strengthen the banking system, support export-oriented development and promote economic diversification.
The agreement provides for joint initiatives to support private-sector clients, reinforce the financial sector and expand both financial and non-financial assistance for small and medium-sized enterprises.
EBRD experts are expected to provide technical assistance and organize knowledge-sharing programmes aimed at improving the quality of digital banking services, upgrading payment systems and developing digital ecosystems for businesses.
International best practices in cybersecurity and data protection will also be introduced into the national banking system.
Transport and Green Development
Under the agreements, the EBRD and Turkmenistan will jointly assess opportunities to support investment in the Trans-Caspian Transport Corridor. The initiative is closely aligned with efforts by the European Union and Central Asian countries to strengthen resilient logistics links between Europe and Asia.
The signed documents also cover Ashgabat’s participation in the EBRD’s flagship Green Cities programme.
In addition, the two sides plan to work on implementation of the Global Methane Pledge, strengthening energy and water security, and further improving municipal services, including irrigation and water-supply systems.
Preferential green financing will be offered to help introduce energy-efficient technologies in industry, agriculture and construction. Projects that promote the efficient use of water and other natural resources will remain a priority.
Turkmenistan’s broader approach to economic diversification and the transition towards greener development is intended to create a more sustainable platform for both private and public investment.
The expanding cooperation between Ashgabat and the EBRD illustrates how pragmatic dialogue and gradual institutional reforms can strengthen economic potential not only within an individual country but also across the wider Eurasian region.///nCa, 27 August 2026