Uzbekistan-Turkmenistan: Regional proximity, mutual trust and outcomes of cooperation

Today, the process of mutual integration and sustainable development among the Central Asian republics has entered a new phase. Recent reforms and transformations in Uzbekistan are contributing not only to the development of the entire region but also to the strengthening of mutual trust between countries. These changes are increasingly having a tangible impact on the lives of the peoples living across the region.

In particular, bilateral cooperation between Uzbekistan and Turkmenistan has entered a new phase. Today, Turkmenistan is considered one of Uzbekistan’s key partners across multiple sectors, including trade and economic cooperation, transport and logistics, energy, and water resource management.

From 2017 to 2024, trade and economic relations between the two countries steadily expanded. As a result, Turkmenistan’s exports to Uzbekistan surged from $105.4 million in 2017 to $1.48 billion by the end of 2024, representing nearly a 14-fold increase. Uzbekistan’s exports to Turkmenistan also grew from $53.2 million in 2017 to $133.9 million in 2024. These figures reflect the consistent growth in bilateral trade volumes and the strengthening of economic ties between the two nations.

Turkmenistan’s exports to Uzbekistan are dominated by mineral fuels and petroleum products, which in 2024 accounted for 95.8% of total exports, representing nearly the entire export composition.

By contrast, Uzbekistan’s exports to Turkmenistan are relatively diversified, with industrial and chemical products taking the lead. Notably, fertilizers comprised 17.7% of Uzbekistan’s exports to Turkmenistan in 2024, emerging as a key item in bilateral trade.

Both countries still possess untapped potential to further enhance these trade figures. Leveraging international transport corridors through seaports to facilitate experimental shipments could significantly expand transport and logistics connections. Maintaining the positive momentum in bilateral trade and potentially doubling its volume in the coming years will require strategic utilization of transport and logistics capabilities, underscoring the importance of coordinated economic planning between Tashkent and Ashgabat.

To realize these strategic objectives, Uzbekistan and Turkmenistan implemented a free trade regime on February 25, 2025. Under this framework, customs duties on a wide range of goods produced in both countries have been abolished, trade restrictions removed, and bilateral trade procedures simplified, facilitating smoother commercial exchanges. Further advancing economic cooperation, a cross-border trade zone was inaugurated as a tangible outcome of the leaders’ meeting in Tashkent on November 17, 2025. This initiative links Shovot District in Uzbekistan’s Khorezm Region with Tashhovuz Province in Turkmenistan, creating new opportunities for border-area trade and enhancing connectivity between the two nations’ economies.

Looking ahead, transport and logistics stand out as one of the key economic drivers capable of giving a strong impetus to Uzbekistan–Turkmenistan relations. During high-level meetings, special attention has been given to creating favorable conditions for the effective use of transit potential, including the provision of mutual incentives and concessions for freight transportation.

Maximizing transit capacities will, in turn, support the active development of transport corridors along the “East–West” and “North–South” axes, leveraging facilities such as the Turkmenbashi Port, thereby facilitating mutually beneficial economic objectives.

In conclusion, the strengthening of bilateral cooperation, the emergence of new regional linkages, and the development and implementation of forward-looking projects will serve the long-term interests of the peoples of both Uzbekistan and Turkmenistan.

Nodirbek Rasulov

Institute for Macroeconomic and Regional Studies

Project Director, PhD (Economics), Associate Professor