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Introduction: Putting the spotlight on Turkmenistan

Article by Adam Hug

July 12, 2019

Introduction: Putting the spotlight on Turkmenistan

Turkmenistan is a country often overlooked and one that has often courted its own isolation. When international attention is paid the focus tends to be either on the size of its bountiful gas reserves, the sixth largest in the world, or on the eccentricities and excesses of its leadership. This research seeks to shine a spotlight into a country that despite the former, and in no small part because of the latter, finds itself in the middle of a sustained economic crisis that has seen hyper-inflation in the lives of ordinary people and widespread food shortages. This economic crisis has in turn led to the regime’s repression of its people becoming ever tighter. Turkmenistan has always been a country that takes the standard tropes of authoritarian rule in Central Asia and takes them to extremes, turning it ‘up to 11’ when it comes to the scale and scope of its abuses. However its current woes have seen the personality cult of its leadership and the intrusion into the lives of its citizens both rise to new heights as the regime seeks to maintain control of the situation. This publication examines the country’s recent history, political structures, economic performance and international relations to try to understand how Turkmenistan reached this point and discusses what can be done to improve the situation.

A brief history of Turkmenistan

The area covered by modern day Turkmenistan has historically been inhabited by tribes of pastoral nomads, notionally falling under the influence of the Seljuk Empire, the Mongol Khanates of Khiva and Bukhara and the Russian Empire before their incorporation into the Soviet Union. The largest group is the Teke, including the Mary Teke and the Ahal Teke subgroups, the latter which had dominated political life before and after the Soviet Union and to which current President Gurbanguly Berdimuhamedov is a member and former President Saparmurat Niyazov was affiliated, alongside the majority of senior officials.[1] The others include the Yomut (with historic links to fishing and modern linkages in the oil and gas sector), Ersari, Chowdur and Saryk. Under the Soviet Union Turkmenistan was established as a Soviet Socialist Republic in 1925 and attempts were made not only to share power more widely amongst the existing clan structures but to build a sense of shared Turkmen identity. This was met with limited success and was an identity to be subsumed within the larger Soviet identity. Demands for local control had been on the rise as the Union of Soviet Socialist Republics (USSR) unravelled, for example with the Supreme Soviet of Turkmenistan claiming the sovereignty of its laws over those of the USSR in 1990, but its identity remained relatively inchoate.[2]  The Agzybirlik (unity) movement of local intellectuals helped spark a revival in the Turkmen language and in the promotion of tribal cultural practices, before being banned as a potential source of political competition.[3]

So the structural challenges facing President Niyazov, who was elected as the chairman of the Supreme Soviet of the Turkmenistan in January 1990 and declared as President of Turkmenistan in October 1991 before formally achieving recognised independence that December, was the same as those facing many of the other leaders of the newly independent Soviet successor states, keeping the country together and independent from domination by its larger neighbours. These strategic challenges remain central to the present day, to some extent providing the method to the madness of the leadership cults that have helped define Turkmenistan.

Niyazov had been one of the least reforming members of the final pre-independence Soviet leadership, backing the coup against Gorbachev and initially resistant to calls for independence. However once independence came he took to the task of not only building a new state but of trying to create a shared national history and national identity, inextricably weaving it around his own personality and presenting himself as the embodiment of those national ideals. He drew inspiration from the legacy of Mustafa Kemal Ataturk, whose honorary surname means ‘Father of the Turks’, in shaping the identity of Turkic peoples, and in 1993 would give himself the honorific he is most widely remembered by, Turkmenbashi (‘Head of the Turkmen’).

The Ruhnama (‘the book of soul’), written by Niyazov in two volumes released in 2001 and 2004, which would be seen as totemic of the excesses of his rule, was at its origin a collection of Turkmen history and folklore that aimed, at least in part, to provide a previously non-existent national story.[4] The publication of course was used to glorify Niyazov and his family and to outline what could be loosely described as his thoughts on politics and morality. During his leadership knowledge of the contents and even the ability to recite passages was a standard part of the curriculum and a requirement for passing exams, even for obtaining a driving licence or joining the civil service. These requirements were only phased out gradually after his death.[5] Between 2002 and 2008 the stories from the Ruhnama were used as names for months of the year, including directly naming January as ‘Türkmenbaşy’ and September ‘Ruhnama’.  A giant mechanical monument of the book was built in Ashgabat that opens at 8pm each night with a light display and a reading of a passage of its content.[6] The idiosyncratic attachment to Turkmen folklore was also on display in the US $50 million Turkmenbashi’s Land of Fairy Tales theme park in Ashgabat.

Other grandiose projects include the US $75 million golden Arch of Neutrality, a tripod topped by a golden statue of Niyazov that rotated to constantly face the sun, originally in the centre of Ashgabat. Other than glorifying Niyazov the arch sought to celebrate Turkmenistan’s loudly declared international neutrality, uniquely endorsed by the United Nations (UN) General Assembly in 1995, and aimed to demonstrate to its larger neighbours, Iran and Uzbekistan as well as to Russia and the West, that it posed no threat to their interests and therefore should be left alone. The arch was moved to a new location away from the Presidential Palace in 2010 but is still standing.[7]

At a more direct human level under Niyazov ballet, opera and gold teeth were banned, alongside beards for the young and a prohibition of smoking in public places, an anti-smoking campaign that has been intensified under his successor.

The extent of the bizarre behaviour was so extreme that there was, and is, a tenancy to believe anything and often overlook its purpose and the more prosaic problems. A 2004 story about an ‘ice palace’ provides an illustrative example where a number of international sources heard President Niyazov announce that he wanted to build a ‘palace of ice’ that could house a 1,000 people and assumed he was proposing building a giant igloo.[8] The reality, a €135 million 10,000 seater Winter Sports Complex and ice rink, may not necessarily be the best use of public money in a country with such challenges and clearly speaks to a desire to deliver large, ‘statement’ public projects, but it is in keeping with authoritarian practice elsewhere in the region. [9] Under both of Turkmenistan’s Presidents such grand projects are often underused or empty despite the significant economic and social cost, such as from the home demolition programmes discussed below. In a closed society it is simple to project and maintain an image that even, if it does not persuade the entire population, makes the regime’s rule seem all encompassing and inevitable.

Upon taking office in 2006 at Niyazov’s death President Gurbanguly Berdimuhamedov’s initially maintained key elements of Niyazov’s personality cult whilst gradually toning them down or side-lining them. This was not however to make space in a meaningful sense for liberalisation but to provide room to develop his own personality cult.

At time of writing President Gurbanguly Berdimuhamedov’s public behaviour is becoming increasingly erratic and as widely mocked internationally as his predecessor. Stunts aiming to show the vitality of the President have ranged from videos of a solo gym session with Berdimuhamedov to the internationally mocked footage of him weightlifting a solid gold bar at a cabinet meeting. These displays dovetail in with the campaign to eradicate smoking by 2025, and other efforts aimed to make healthiness a mandatory part of Turkmen culture.[10] A focus on horses and horsemanship is both a strong reference to Turkmenistan’s nomadic heritage and a personal obsession of the President, who is regularly portrayed riding and preforming ‘feats of skill’ atop a horse, as now immortalised by a large gold and marble statue of him in Ashgabat.[11] The bizarre musical performances, sometimes featuring his grandson, lack an equivalent rationale although one of his more recent efforts was about his favourite horse.[12] The President’s public escapades are all set to the backdrop of furious clapping from whichever group of people has the misfortune of being forced to watch on. Like his predecessor he has collected self-bestowed honorifics, from the ‘people’s horse breeder’ to the more regularly used ‘Arkadag’ (the protector).

Though their outlandishness may provide a distraction, both externally and to some extent internally, the personality cults of Turkmenistan’s leaders highlight how the regime operates and what it means for those living and working in Turkmenistan.[13] Erratic behaviour atop a highly centralised political power structure that dominates the economic, social and political life of the country, creates a paranoid approach to governing. This structure, where the whim and caprice of the leader leads to overreactions and excesses by the cabinet and government functionaries, fearful of finding themselves on the wrong side of the leadership, has obvious repercussions for the lives of Turkmenistan’s citizens and presents huge risks for those seeking to invest in the country. So despite the perception of stability and regimented order, bureaucratic chaos swirls under the surface, buffeted by an increasingly bleak economic picture to which there are no easy answers.

An economy in crisis

Turkmenistan’s economy is reliant on gas with total proved reserves of 19.5 trillion cubic metres or 9.9 per cent of total world reserves.[14] It also has a smaller amount of oil, though at 10.6 million tons per year this only marginally exceeds domestic consumption (7.1million tons per year). Based on internationally comparable statistics it is also the world’s 9th largest cotton producer.[15] The economy is heavily centralised and state dominated. Its performance is so weak as not to be listed in the World Bank’s 189 country ‘Doing Business’ rankings, a metric often touted by other authoritarian regimes as a sign of their effectiveness.[16] The European Bank for Reconstruction and Development (EBRD) describes it as being the ‘least competitive economy among the EBRD’s countries of operations’ and argues that a ‘heavy state presence dominates economic decision-making’ and that ‘corporate governance is hampered by a lack of managerial independence even in private firms’.[17]

Currently Turkmenistan is in the grip of its worst economic crisis since the immediate post-independence period, driven in part by low gas prices, the suspension of gas exports to Russia between 2016 and 2019 (when they have notionally been reinstated) and poor harvests.[18] The headline GDP growth figures and other metrics do not convey the scale of the challenge. As the UK’s Department of International Trade dryly puts it ‘no reliable economic data are published in Turkmenistan. Most sources cite figures which the government releases to the international financial institutions. These do not always square with observation on the ground.’[19]

For example the World Bank recorded growth of 6.2 per cent in 2018 and projects a slight decline to 5.6 per cent in 2019 and 5.1 per cent in 2020.[20] The Asian Development Bank forecast a slightly higher 6 and 5.8 per cent for 2019 and 2020.[21] However these notional growth figures are not enough to overcome even the official rate of inflation based on official statistics which is running at 9.4 per cent in 2018 and is projected to be 9 per cent and 8.2 per cent for 2019 and 2020 respectively. However given the combination of the lack of credible official statistics, currency pressures (as discussed below) and an enormous black market many experts, such as Professor Steven Hanke of the Cato Institute, placed the real rate of inflation as experienced by consumers outside of the tightly rationed state sector as being as high as 294 per cent as of June 2018.[22]

At the heart of this inflation crunch is the collapse in the real exchange rate of the manat, Turkmenistan’s currency. While the manat’s official exchange rate has remained pegged at 3.5 manat to the dollar in the summer of 2018 the unofficial exchange rate, through which citizens of Turkmenistan can meaningfully access dollars, fell from 10 manat to the dollar at the start of 2018 to 29 manat to the dollar by June 2018.[23] As of spring 2019 the black market rate was still hovering at around five times the official rate (18 manat to the dollar) according to the EBRD.[24] Inflation and product scarcity has been driven by the dramatic reduction in gas revenue and the hard currency that it had previously brought into Turkmenistan’s import reliant domestic economy, as well as the poor domestic harvests discussed below. The resulting currency controls and shortage of physical cash in circulation have seen the amount of money that Turkmen citizens can take out of their bank accounts or receive via money transfer significantly reduced, with limits of between 400-700 manats.[25] Access to hard currency is more limited to outlets such as the State Bank for Foreign Economic Activity. Those Turkmen able to travel abroad (or to send their bank cards abroad) face retractions in withdrawing money from their bank accounts but when they are able to do so there is a significant money making opportunity by being able to obtain dollars or other international currencies at the official state rate and being able to convert these currencies back home into manats at the black market rate.[26]Attempts to regain control of the domestic currency situation by moving transactions to a Turkmenistan only debit card system have had limited success.

The currency and inflation crises have hit sectors particularly reliant on imported components. For example the chief executive of Coca Cola Turkmenistan is believed to have committed suicide due to financial problems caused by the bottler facing raw material shortages and black market price spikes, which was making Coca Cola unaffordable for most Turkmen.[27]

The government resources are highly strained. One of the casualties of economic crisis has been the provision of previously free electricity, water and natural gas that were phased out by the start of 2019.[28] Furthermore in January 2019 President Berdimuhamedov announced the privatisation of much of the state run transportation system, though it is unclear if it will be open to international investment.[29] Irrespective of the nature of ownership clearly reform of the sector is needed as for example in February 2019 the European Aviation Safety Agency withdrew permission for the state run Turkmenistan Airlines to fly within the EU for safety reasons, leaving thousands of travellers stranded.[30]

Foreign investment risk and corruption

The current economic environment combines with deep and longstanding structural problems to create an environment for foreign direct investment (FDI) that is fraught with risk. For example the lack of available funds and hard currency feed into a major problem of underpayment and non-payment. This has been a major problem for international investors with the Turkmen government and its business subsidiaries prioritising payments on the basis of political connections (including corruption) and strategic importance, leaving some debts for work completed unpaid for years. For example Turkish construction company, the Cakiroglu Grup,[31] suspended operations in Turkmenistan in the summer 2018 due to non-payment of several million dollars, owed to it for up to five years.

Where businesses have had success in Turkmenistan it has tended to be firms that are not making significant capital investment in the country, those that are not reliant on sustained market stability and access to it to obtain a return, or where their services are essential for the government to extract their own revenue.[32] For example the farming equipment manufacturer, John Deere, has had a long-standing relationship with Turkmenistan, with a current phased deal due to export 1350 combine harvesters, tractors and ploughs.

The official regulatory environment has a degree of stability on paper due in part to the founding laws in many sectors mostly unchanged since the immediate post-Soviet period. These are for the most part poorly drafted but their lack of revision (or reform) does provide some perverse reassurance in an uncertain environment. However the system remains reliant on working with government officials both officially and through informal channels (both legal and illegal) to get things done. It is at this level where the Berdimuhamedov regime’s practice of regularly and repeatedly reprimanding, side-lining and shuffling officials, from senior ministers to junior functionaries, in order to blame them for the governmental failings creates a fundamental instability of interlocutors. For most firms this just creates instability, political risk and further adds to the opportunities for corruption. However some argue that this gives some larger investors greater ability to shape the agenda of joint project boards as the internationals partners have the understanding of issues that incoming officials can often defer to. As Eimear O’Casey’s article in this collection argues there is also the de facto requirement for international investors in Turkmenistan to be members of the ‘Union of Industrialists and Entrepreneurs’ to contend with.[33] The union is run by the President’s long-time friend Alexander Dadayev. [34]

Unsurprisingly for a system reliant on official fiat, corruption is an endemic feature of Turkmenistan’s economic life, with Transparency International ranking it 161st out 180 countries surveyed.[35] Relatives of the ruling family have been seen to benefit from state expenditure. For example, despite the current economic crisis at least US $2.3 billion is being spent on a ‘Turkmen Autobahn’, an 8 lane motorway between Ashgabat and Turkmenabat that is being funnelled through a consortium of four companies, two of which are mostly unknown and of the other two one is being run by the President’s brother-in-law and his nephew and the other by a former Construction minister. The joint venture firm is being supported by Austrian technical advisers Vienna Consulting Engineers (VCE) ZT GmbH.[36]

As the UK Government puts it, in Turkmenistan ‘the law does not adequately protect contracts, and can be changed by decree or ignored with impunity by vested interests. Both domestic and foreign businesses can be forced out of the market for specious, or undisclosed, reasons.’[37] Turkmenistan’s legal system is extremely inexperienced in dealing with matters of commercial law, not that their lack of capacity would be the primary issue when trying to take on politically connected or state affiliated defendants. It has been argued that were international companies more willing to attempt to try the cases through the Turkmen legal system this would be an important capacity building exercise and may create openings for political pressure to unblock cases. Few international investors have been willing to act as a training exercise for the Turkmen legal system, instead preferring opportunities for international arbitration to seek redress when they believe their rights have been abused. The World Banks’ International Center for the Settlement of Arbitration Disputes (ICSID) is where many of the larger disputes are litigated, with five cases currently pending.[38] If Turkmenistan is serious about trying to attract increased FDI in the absence of robust domestic mechanisms it will need to show investors that it is complying with the provisions of bilateral investment treaties and other international frameworks such as the 2010 EU-Turkmenistan Interim Agreement on trade and trade related matters and the US-Central Asia Trade and Investment Framework Agreement (TIFA).[39]

Despite the UK listing the country as a country of concern in its human rights report, detailing the deep structural challenges in its trade advice and the self-evident economic chaos, one of its main points of ongoing diplomatic and political interaction in Turkmenistan is through the Turkmenistan United Kingdom Trade and Industry Council (TUKTIC), established by the British Embassy in Ashgabat and the Government of Turkmenistan in 2010.[40] TUKTIC receives sponsorship from British firms interested in the Turkmen market such as Shell, BP, Buried Hill, De La Rue, Aggreko, JCB, Petrofac and Rolls Royce, with organisational support from the Mayfair based Strategy International and Business Expertise International who run the Central Asia and Transcaucasus Business Information Group (CATBIG).[41] TUKTIC works closely with Baroness Nicholson who serves as the UK Prime Minister’s Trade Envoy to Turkmenistan.[42] Warm words of praise for the regime including praise for Ashgabat’s marble buildings, and only tangential comments about the importance of human rights frame the nature of the relationship.[43]

The EBRD is currently finalising its country strategy for Turkmenistan covering the period 2019-2024, a strategy described as ‘engaged but calibrated’.[44] Its involvement so far has wholly been in Turkmenistan’s private sector with loans to what it classes as small and medium-sized enterprises (SMEs) such as breweries Berk and Yager, Turkmenistan’s Coca Cola bottling company, the TOPAK paper company and PVC window manufacturer Turkmen Penjire.[45] Human Rights Watch, Transparency International and the International Partnership for Human Rights (IPHR) have argued that the EBRD should adopt the European Parliament’s proposed benchmarks on human rights in Turkmenistan and not expand lending to the public sector until there is clear progress against them, a conditional approach that this author would endorse.[46] At present the EBRD is considering a conditional expansion to support municipalities, a risk given the extent of forced labour amongst local government workers, with possible long-term expansion into transport and energy projects. Question marks remain even over existing support to the local private sector which needs to be set in the context of the deeply corrupt and politically beholden nature of large swathes of the Turkmen private sector.

Record harvests or wide spread hunger?

The common Turkmen story of authoritarian self-promotion, imaginary statistics and barely discussed chaos come together in the regular announcement of record crop yields. The 2018 harvest figures were dutifully announced by cabinet Deputy Chairman Esenmyrat Orazgeldiev who reported that Turkmenistan had harvested some 1.099 million tons of cotton, more than the target figure of 1.050 million tons. However, opposition websites have claimed the records from the Agriculture and Water Resources Ministry, showed the real amount collected as being less than half that at 450,000 tons,[47]while the International Cotton Advisory Committee puts the 2018 cotton production figure at 300,000 tons.[48] These lower figures tally much more closely with the patterns relating to forced labour discussed below. Similarly it is believed that the wheat harvest had failed by only achieving a yield of 538,000 tons (rather than the 1.6 million target) of which 30 per cent was unfit for consumption.[49] Given the lack of external verification it is difficult to know for sure the real situation but given the widespread reports of rising food prices, rationing, drought, salt penetration into arable land and salt storms it seems plausible.[50]

The reduction in domestic production combined with imports being hard to come by and the currency crisis mean that staple food products are no longer subsidised, as set out above, but have also been subject to supply shortages. Lines to receive bread have been reported since the autumn of 2017 as well as increased rationing since the spring of 2018. As of a recent report, state run stores have been limiting flour sales to 50 kilogram per family per month. [51]

The prodigious black market has seen food bypass the state run stores where prices are nominally regulated, but instead be sold at significant mark ups. For example chicken legs at almost double the official price led to rioting in the summer of 2018.[52] Official vendors have taken to requiring passports or other identity documents to prevent people from taking multiple rations. [53] Despite this the President has announced that the recent generous harvest has enabled Turkmenistan to become an exporter of wheat. Neither of the two most relevant UN agencies, the World Food Programme and the Food and Agriculture Organisation, have a presence on the ground in the country to provide independent verification or assistance.

Trapped?

As Bruce Pannier’s essay points out the food shortages are believed to have led to further restrictions on internal movement, with those from the regions finding it difficult to visit Ashgabat since October 2018 and those trying to bring food out of the city being penalised. This builds on pre-existing restrictions that make it difficult for citizens of the regions to change their residency to allow them to live in Ashgabat. Further efforts to stem population inflow have included Presidential decrees urging Ashgabat officials to choose existing Ashgabat residents for employment rather than those currently residing outside the city.[54]

Turkmens are not only being restricted in their internal movement but face challenges when leaving. Despite exit visas being ostensibly removed in 2004, citizens of Turkmenistan often find it difficult to get out of the country. The substantial Migration Service blacklist that had targeted regime critics has grown to encompass other groups trying to leave as the economy has worsened.[55] In 2018 it was widely reported that potential economic migrants, particularly from outlying regions such as Dashoguz and Lebap, that are particularly struggling, were being prevented from boarding planes.[56] A particular focus had been placed on stopping those trying to exit to Turkey and Dubai where there are communities of Turkmen migrant workers, leading to an expansion of migrants heading to Uzbekistan and Kazakhstan and a growth in people smuggling on the border with Uzbekistan.[57] Where workers have gone abroad the regime is putting pressure on their families in order to demand their return.[58] These restrictions provide a significant opportunity for bribery by the migration service with reports from RFE/RL that the going rate for bribes to make it past passport control had risen from the old rate of US $200 to an extortionate rate of 60,000-70,000 manat ($3300-$3800 at the black market rate).[59]

For a long time Turkmen students have faced significant restrictions in studying abroad. In 2009 restrictions were placed on attending the American University of Central Asia (AUCA) in Bishkek (Kyrgyzstan), KIMEP in Almaty (Kazakhastan) and then on attending the American University of Bulgaria.[60] This restriction was itself a concession after earlier attempts to impose a blanket ban on attendance to all foreign ‘private universities’, a term covering everything from elite US institutions to placements like AUCA. This was a move impacting around 150 students at AUCA and many others beyond,  particularly from ethnic minority groups, who had been able to study abroad in large part due to international funding grants and scholarships. The restrictive climate towards international study has continued ever since and in April 2019 the Government of Turkmenistan published a list of international universities (and courses) whose degrees would be recognised from September 2019. The list excludes many universities where students from Turkmenistan are currently studying including no institution from Tajikistan leaving the estimated 4,000 students based there in limbo.[61] No university in Western Europe or the United States is listed, though there is a somewhat nebulous exception stated that qualification from the ‘Top 1,000’ most respected universities in the world will, as an exception, be recognized, though without any clarity as to how these institutions would be identified. Given the limited nature of Turkmenistan’s domestic education system, replete with rote learning and a narrow focus on official texts (including the pronouncements of their leaders), this approach limit’s the country’s pool of highly skilled workers essential for improving its productive capacity. It also ignores the experiences of neighbouring Azerbaijan and Kazakhstan who have both used internationally trained young workers to enhance their bureaucracies and internationally focused businesses without undermining the authoritarian character of those states.

How many citizens have actually been able to permanently leave Turkmenistan is the subject of much debate and uncertainty. Recent claims, which need to be treated with some caution, have been as high as almost two million, around a third of the official population figures, not including short-term labour migrants.[62] There certainly are risks for family members who remain in Turkmenistan with pressure placed upon them to encourage migrant relatives to return to the country, an atmosphere that militates against the further development of an open-remittance system, something that would be helpful for the economy but embarrassing for the regime. At present the official figures suggest that less than 1 per cent of GDP is sourced from remittances, though the reality is likely to be higher.[63] Of course if the Turkmen diaspora was to come out of the shadows more there might also be opportunities for mobilising dissent that the regime would find unwelcome.

Home Demolition

Turkmenistan is not alone in conducting home demolition as part of delivering major vanity projects[64], however it has been seen to do so on a massive scale, brutally (with residents sometimes given only hours’ notice of eviction) and often for no apparent purpose. In 2015 Amnesty International documented the displacement of up to 50,000 people in Ashgabat.[65] One of the main drivers for demolition of neighbourhoods and the related construction boom was the Asian Indoor and Martial Arts Games (AIMAG) 2017, whose Olympic village was believed to have cost US $5 billion to build, along with a US $2.3 billion new international airport and the related construction and beautification works. [66] A common thread is the lack of support given to those displaced by these schemes, even in situations where their land title and other legal rights were clear, again drawing attention to the lack of effective property rights and rule of law.

Forced Labour

Turkmenistan remains reliant on the widespread use of forced labour to bring in its cotton harvests. At the heart of the process is the continuation of the Soviet-era practice of Subbotnik work (‘Saturday’ work) where civil servants and other government linked professions such as doctors, dentists, teachers, students and military personnel are required to pick cotton under threat of dismissal, salary reductions, or other penalty. For example the 2016 cotton harvest was believed to involve about 49,000 teachers. [67]The luckier workers are bussed in and out from local fields in a day. Others, often from lower status jobs or sectors such as the postal service or energy companies, may be required to be posted over night or for longer stretches in squalid makeshift accommodation in more remote farms. Those on higher salaries are able to pay people to pick cotton on their behalf. 

As a practice it is both ubiquitous and a source of official embarrassment. One farcical example recently saw such workers asked to hide for several hours ahead of the arrival of the President’s motorcade. [68] Not only is the practice immoral and the source of significant disruption to the lives of Turkmenistan’s citizens, but clearly requiring large swathes of public sector workers to undertake arduous manual labour leaves institutions either closed or understaffed, and with exhausted workers, undermining bureaucratic efficiency.

At the heart of the problem is a rigid and centralised national harvest quota system that springs from the mouth of the president down to regional governors and local officials, whom do their best to deliver, irrespective of how ridiculous the quota figure is. The local quota is then parcelled up amongst schools, hospitals and other public institutions, whose staff are then given their own personal quotas (such as 50 kilogram per person per day).

Local administrators face losing their jobs if they fail to deliver and farmers face the threat of land being taken away if quotas are not met. So perversely the poor harvest in 2017 saw an increase in forced labour due to the pressure on local farmers and administrators to show they were doing all they could to meet their unreachable quotas despite ever diminishing returns from labour.

Child labour is notionally prohibited but children may end up working the fields alongside their parents during school holidays and other times when childcare is not available or where they are under pressure to meet their quotas. There have been isolated reports the local administrators have required school children to participate in a coordinated fashion during school holidays.[69]

Groups such as Anti-Slavery International, the Cotton Campaign and the Responsible Sourcing Network through their Turkmen Cotton Pledge and Investor Statement have been increasing awareness of the forced labour problem in Turkmenistan’s cotton industry.[70] While the pressure has yet to have the transformative change that similar action is seen to have had in Uzbekistan their work is increasing pressure on companies that might seek to use cotton from Turkmenistan, such as the US $300 million exported to Turkey each year.[71] In May 2018 US Customs and Border protection officials announced that they would be formally banning the import of goods made with or containing cotton from Turkmenistan.[72]

There have been a number of announcements about efforts to increase mechanisation in Turkmenistan’s agricultural sector, not least in the announcement of the purchase of hundreds of mechanised cotton harvesters from John Deere mentioned above. However there have been limited signs so far that this equipment has been deployed in significant enough numbers to alter Turkmenistan’s approach to forced labour. [73]

Unlike in Uzbekistan the International Labour Organisation (ILO) has yet to establish a presence on the ground in Turkmenistan. While there is understandable concern that without guarantees on freedom to operate such a presence could be used as a fig leaf or propaganda tool but if an ILO office was able to provide a proper mapping and monitoring of forced labour in the country then it would have potentially important transformative effect. Negotiations have been underway for several years but seem focused around a less ambitious agenda of monitoring more general compliance with the ‘Decent Work and Economic Growth’ Sustainable Development Goal.

Human rights

The country is ranked 119th out of 129 countries in the Bertelsmann Transformation Index[74] and 204th out of 210 in Freedom House’s Freedom in the World Index.[75] The Foreign and Commonwealth Office’s (FCO) most recent Human Rights and Democracy Report listed Turkmenistan as one of its Human Rights Priority Countries and summaries its key concerns as ‘the continuing allegations of torture and poor prison conditions, a lack of freedom of opinion and expression (including access to information), limited freedom of religion or belief, significant gender discrimination, and a failure to protect the rights of LGBT people.’[76] Turkmenistan has historically been the worst performing country in the human rights blackspot that is Central Asia. 

Unsurprisingly the Organization for Security and Cooperation in Europe’s Office for Democratic Institutions and Human Rights (OSCE ODIHR) report on the 2018 Parliamentary elections stated that Turkmenistan ‘lacked important prerequisites of a genuinely democratic electoral process. The political environment is only nominally pluralist and does not offer voters political alternatives. Exercise of fundamental freedoms is severely curtailed, inhibiting free expression of the voters’ will. Despite measures to demonstrate transparency, the integrity of elections was not ensured, leaving veracity of results in doubt’.[77]

47 of the deputies in the 125 Mejlis were elected from the President’s Democratic Party of Turkmenistan with the remainder been elected on behalf of Parties representing large stakeholder groups:  the Organisation of Trade Unions of Turkmenistan with 33 deputies, the Women’s Union of Turkmenistan with 16, The Party of Industrialists and Entrepreneurs 14 deputies, the Magtymguly Youth Organisation with eight deputies and seven other ‘citizens’ representative who are all fully loyal to the President. 

Turkmenistan’s prison system can be a black hole for those imprisoned on long sentences, with family and friends unable to contact loved ones for many years. The Prove They Are Alive campaign argues that hundreds of people have been victims of enforced or involuntary disappearances within the Turkmen prison system with a list of 121 specific named cases. Of these named cases there has either been no verifiable information about their whereabouts and condition since trial or for some since arrest; no contact with or information provided to their family; and/or no access to legal representation, external medical experts and international monitoring organizations.[78] The group have also documented prison beatings and other forms of torture amid unsanitary and inhuman conditions in the prison system.[79]

Gulgeldy Annaniyazov was initially arrested in 1995 over a peaceful protest, served four years of a 15 year sentence but fled to Kazakhstan in 2002 after years of surveillance and harassment. Under pressure from the Turkmen authorities he was arrested under claims of traveling on a false passport but was able to obtain asylum in Norway in 2002 after international pressure. After unfortunately misreading the political climate in the wake of Turkmenbashi’s death he returned to Ashgabat in 2008, was promptly arrested and then disappeared without any contact until 2015, when in a report to the UN Human Rights Council Government officials stated that he was serving an 11 year sentence for illegal border crossing and holding false documents. However shortly before his notional release date this year his sentence was extended by a further five years. [80]

Turkmenistan’s security services are active in trying to suppress protest by exiled activists. Akmukhammet Baikhanov was attacked the street in Moscow in what was seen to be a failed abduction attempt shortly after the publication of a report about his experiences in the notorious Ovadan Depe jail.[81] The Central Asian Political Exiles (CAPE) database has identified 40 well known activists at risk,[82] while we know pressure is placed on the relatives of those not even involved in politics to encourage their return.

Turkmenistan has only recently appointed a human rights ombudsman. Embarrassingly significant sections of the ombudsman Yazdursun Gurbannazarova’s first report were borrowed from a Master’s thesis about the ombudsman of Kazakhstan.[83] The content of her work so far unsurprisingly contains mostly reports of relatively uncontroversial issues, such as direct requests for assistance in housing issues, overturning court decisions and the migration service rather than the more challenging human rights abuses.[84]

Turkmenistan’s women face increasing enforcement of rules requiring them to wear traditional national clothing, a long embroidered dress. This is particularly being enforced amongst public sector workers who have also faced instructions not to dye their hair, wear nail varnish, or use eyelash and nail extensions. They also face periodic efforts to prevent them from driving or from buying and smoking cigarettes. The rules managing personal behaviour fluctuate depending on the whims of the leadership and how they are interpreted by functionaries at any given time.[85]

The LGBTI community in Turkmenistan remains heavily repressed by the state. Consensual sex between men remains criminalised and subject to a two year prison sentence.[86] It remains one of the eight countries in the world where ‘law enforcement officials, working in tandem with medical personnel subject men and transgender women who are arrested on homosexuality-related charges to forced anal examinations, with the purported objective of finding “proof” of homosexual conduct’.[87] The legal situation provides a significant bribery and extortion opportunity for law enforcement officials and LGBTI people are at risk of assault, including ‘honour’ based violence from family members and their local communities.

Freedom of Media and Speech

For a long period Turkmenistan has been amongst the most repressive states for journalists, alongside North Korea and Eritrea. However in 2019 Turkmenistan found itself at the coveted bottom spot as the lowest ranked country in the Reporters without Borders (RSF) World Press Freedom rankings. Freedom House’s Freedom and the Media 2019 report concurs by placing Turkmenistan in its worst ranked group of countries.[88] RSF note that over the last three to four years the situation has deteriorated with further crackdowns on journalists and efforts to limit access to media.

Nominally as part of the wide ranging efforts at ‘beautification’ outlined above there has been major crackdown on satellite dishes, which were banned in Turkmenistan in 2015.[89] Satellite is the main point of access to Radio Free Europe/Radio Liberty’s (RFE/RL) Turkmen service ‘Radio Azatlyk’, the most widely accessed source of independent news on the country, and it is no surprise that as the economic situation on the ground has deteriorated the Government is intensifying its efforts to block access to independent news. Satellite dish removal is particularly important in the context of Turkmenistan’s persistently low internet penetration rate, believed to be less than 20 per cent. [90]

Turkmenistan is believed to be using German technology, from Rohde &Schwarz who have an office in Ashgabat, to flag and block websites and spyware and to monitor phone and internet use.[91] It is also believed to be able to identify users that are deploying a Virtual Private Network (VPN) to avoid censorship and are targeting them for reprisals. The scope of sites and apps that are blocked at any one time is evolving but RFE/RL and news sites run by Turkmen exiles such as Turkmen News and[92] Chronicles of Turkmenistan remain heavily restricted, while encrypted messaging apps such as Signal and WhatsApp are currently blocked.[93]

For those brave enough to work on the ground as journalists for, or activists who collaborate with, RFE/RL or the exile websites the human cost can be steep. Saparmamed Nepeskuliev, a freelance contributor to RFE/RL has recently completed a three year prison term for drugs charges that were denounced as politically motivated by the UN and the international community. [94] Nepeskuliev was accused of possession of tramadol, banned in Turkmenistan, something he claims was planted in his hotel when working a story. He was held for weeks without contact with the outside world prior to his conviction. Former RFE/RL affiliated freelancer Soltan Achilova, who now works for the Chronicles of Turkmenistan, has been given a travel ban that bars her from leaving the country, while in the past she has been assaulted and harassed by the security forces numerous times, including recently in both 2016 and 2018.[95]Gaspar Matalaev, an activist who provided photographs documenting child labour in the cotton harvest to Alternative News of Turkmenistan (the forerunner to Turkmen News), is currently serving a three-year sentence in a labour camp on bogus fraud charges.[96] Further back RFE/RL contributor Ogulsapar Muradova died in custody in 2006, with the UN Human Rights Committee finding the Government responsible for her death in a 2018 ruling.[97] 

Civil Society

The UK FCO’s 2017 Human Rights and Democracy Report bluntly noted that ‘in Turkmenistan, independent human rights NGOs were unable to operate’.[98]As Turkmenistan transitioned directly from Soviet to local authoritarians so there was limited space for independent civil society to gain a foothold in the 1990s and the subsequent regime consolidation has limited the space for government critical civil society action to a few very brave activists. For example, with the Government conducting mass extermination of stray dogs and cats, notably around the Asian Indoor Games in 2017, animal rights activist Galina Kucherenko[99] was arrested and detained for her activism. Similarly one of the few independent civil society activists who works openly in Turkmenistan Natalya Shabunts, also faced harassment for her work in attempting to stem the dog cull, having previously been under house arrest and constant surveillance for her activities.[100]

This is not to say there are no civil society organisations at all, as with many other authoritarian states there is a limited space available for those addressing sport and cultural, and in a more tightly defined way, women’s and environmental issues, provided that any activity does not challenge the structures of power in Turkmenistan. Large centrally organised groups such as the Magtymguly Youth Organisation, the Women’s Union of Turkmenistan and the National Centre of Trade Unions of Turkmenistan remain major organising blocks in the civic space and partners for international donors. As set out above they also provide the frameworks for the ‘alternative’ political parties recently elected to the Mejlis.[101] The national Red Crescent Society of Turkmenistan is a major provider of healthcare services in the country and its executive director is Gulnabat Dovletova, a sister of the President. [102]

The legal environment for NGOs remains restrictive with registration with the Ministry of Justice required and with penalties for unregistered groups. Any organisation seeking to operate nationally must have 400 members in order to receive registration. Foreign funding also needs to be documented with the Ministry of Justice. Notice of holding a large event requires formal permission that must be given no earlier than 15 days before such an event and no later than 10 days creating significant risks and restrictions on free assembly. [103]

There have been some limited collaborations between Turkmenistan’s official civil society and state institutions with international organisations. Examples include the UN Development Programme (UNDP) on environmental issues,[104] and with the UN Educational, Scientific and Cultural Organization (UNESCO) and University College London (UCL) over the archaeological excavation and preservation of the ancient city of Merv.[105]International donors USAID and the German development agency GIZ also are active on the ground. The OSCE’s presence is limited to a ‘centre’ in Ashgabat involved primarily security matters such as the training of border patrol agents under the leadership of Ambassador Natalya Drozd from Belarus.

Freedom of Religion

As with many other Central Asian states religion is tightly regulated through a centralised state controlled Turkmenistan Muslim Religious Board (Muftiate). In Turkmenistan it is taken to even greater extremes with regards to interference in personal religious life. The official religious institutions did not publicly announce the start of Ramadan and there was no coverage about it on state media. There have been a number of reports that people have felt unable to observe the fast or meet for Iftar meals due to the risk of being perceived as extremist, with city curfews that can prevent people being away from home after 11pm and a general government aversion to groups of people congregating causing problems around breaking the fast.[106] There have even been reports of police attempting to intimidate and block worshipers from attending Mosques.

The use of anti-extremism legislation and language has been used to arrest and imprison non-violent religious groups such as five followers of Turkish Cleric Said Nursi who were jailed for 12 years in the summer of 2018.[107] Despite the country’s widely publicised neutrality there is compulsory military service of two years for men aged between 18-27 and with no mechanism of alternative service there has been regular jailing of conscientious objectors, with 12 objecting Jehovah’s Witnesses in Seydi Labour camp as of June 2019.[108] The fallout from the 2016 attempted coup in Turkey has seen pressure in Turkmenistan increase on the Gulen movement, including over 100 members and school teachers arrested with some sentenced to long-periods in prison.[109] The 2016 law on religion required all religious groups to re-register with the authorities, which was used to close down a number of groups, and it imposed a restriction on registration for groups with fewer than 50 members.[110]

Younger men face potential police harassment and fines if those under 40 are found to have a beard[111], something that has its roots in a 2004 decree by former President Niyazov but is used primarily today to limit outward signs of religious piety.[112] The conservative cultural practices in relation to women and LGBTI rights noted above are as much rooted in the regime’s conception of traditional Turkmen culture than the specifically in Islam, devotion to which could potentially undermine a citizen’s ability to prioritise support for the President’s personality cult.

The regional dimension and gas politics

For years, Turkmenistan’s enormous gas reserves and strategic location made it an important part of discussions around a potential Trans-Caspian pipeline that would connect Central Asian gas resources directly to the EU’s Southern Gas Corridor, without using Russian networks. This would spark periodic western interest in Turkmen gas as a silver bullet for Europe’s energy security woes but the project has been stalled for a generation. Often talked about but never appearing it is the Godot of international projects. Historically the sticking points have been opposition from Russia and Iran that centred on disputes over ownership of the Caspian seafloor that in part acted as a cover for their fears over competition and the diversion of gas away from their own pipeline networks and markets. After 25 years of wrangling the five littoral states surrounding the Caspian signed the Convention on the Legal Status of the Caspian Sea in 2018, which while not resolving all potential legal issues does provided a framework that could allow the construction of such a pipeline.[113] However this has finally taken place at a time where the European energy security situation is rapidly changing due to the expansion of Liquefied Natural Gas (LNG) terminals which when combined with the related weak gas prices makes it widely seen as an uneconomic project to deliver.

The gas fields that would provide any Trans-Caspian route are predominantly in the east of Turkmenistan and the export focus for these fields has been eastward rather than westward through two main routes: the Chinese built and very real Central Asia–China pipeline network; and the as yet illusory Turkmenistan–Afghanistan–Pakistan–India pipeline (TAPI).

China has been Turkmenistan’s primary, and at times only, gas export market for the last ten years. Chinese demand for natural gas, oil and other resources has placed Turkmenistan as an important part of Beijing’s Belt and Road strategy that seeks to further develop economic ties, improve infrastructure and increase political influence in the wider region. As the result of a push for cleaner burning fuel Chinese gas demand is growing rapidly, by 30-40 billion cubic metres (BCM) per year, something which should be good news for its largest gas supplier Turkmenistan. However China is rapidly expanding its access to LNG and the Asian LNG market is experiencing a major supply glut, with spot prices falling by 60 per cent since the summer of 2018 making it more competitive against land based suppliers, giving Beijing more options.[114] It means that while China may well have increased demand for gas, this does not translate to a need to pay more for it. Indeed reports suggest that it has been able to persuade its Turkmen counterparts to lower their prices in 2017 although all details of the deal remain secret.[115] In the first quarter of 2019 analysts have suggested there may have been a significant (26 per cent) spike in exports,[116] after a previously depressed supply in 2018.[117]

However, at least in the short-to-medium term, sales of gas to China are not seen as a major source of revenue due to a significant portion of the sales believed to be servicing and paying down debts Turkmenistan owes China, including for the development of the Galkynysh Gas Field (formerly South Yolotan) and the infrastructure that connected it to Chinese gas markets.[118] The Chinese building the infrastructure themselves and sending Turkmenistan the bill at least ensured that the project was delivered swiftly and efficiently. Other projects seen as helpful to the development of China’s Belt and Road strategy, including new port facilities at Turkmenbashi, are believed to have been funded by Chinese investment. Not all of the loan amounts given have been made public but as Dr Luca Anceschi’s essay suggests the figures are believed to be around or above US $10 billion.

Like its spiritual cousin the Trans-Caspian TAPI remains mostly on the drawing board, game changing in theory but far from being put into practice. If ever completed the project could be transformative for Turkmenistan, Afghanistan and South Asia as a whole. It could provide access to markets for 33 BCM of Turkmen gas per year, it could enable Pakistan to resolve its gas shortages, provide opportunities for gasification in Herat and other Afghan cities along the route (as well as much needed transit fees) and provide opportunities to further diversify India’s growing gas market. The Government of Turkmenistan has made a series of confusing and contradictory claims about progress on the sections within its territory. In February 2018 the CEO of the Turkmen consortium working on the project announced that work in Turkmenistan had been completed, yet later that year announcements were made of more deliveries of materials, notably 35 km of pipeline, needed to complete the building works.[119] In April 2019 a contract for further 214km of piping was announced, while a Turkmen State News Agency story about the success of the gas sector in Turkmenistan noted that work on the Turkmen sections of TAPI were under construction.[120] Progress reports for the Afghan section of the project are just as vague, with little sign that significant progress is being made. Helpfully for the security of project on the Afghan side, though yet another area of concern from a human rights perspective, Turkmenistan has long cultivated a working relationship with the Taliban, as evidenced by them forcing up to 150 Afghan Army Soldiers, who had fled over the boarder after losing a confrontation with Taliban, back into Taliban custody and it is believed for many to their deaths.[121]

Unhelpfully for Turkmenistan Pakistan appears to be seeking to reduce the proposed gas sale price before taking any action to build pipeline on its territory, potentially stalling notional plans to break ground in October 2019 and completion by the end of 2020.[122] India too has been attempting to renegotiate the price structure which was set in 2013 between the four participating states at 55 per cent of the current oil price plus transit fees.[123] India also may need to further expand its LNG options to give a diversity of supply options before it allows itself to become reliant on a route coming from Pakistan.

At present Turkmenistan is the project manager and notionally committed to providing 85 per cent of the project’s equity, investment capital it self-evidently lacks.[124] The Islamic Development Bank has provided US $700 million loan but this is far from enough to enable project completion, with potential UAE or Saudi financial backing and an experienced project manager perhaps required to turn it from pipedream into reality.[125]

With the Chinese export routes not providing significant cash in hand and TAPI far from complete the government of Turkmenistan has been searching around for other options to diversify its export routes. As of April 2019 it was announced that gas supplies to Russia had resumed, albeit with very little detail.[126] It subsequently transpired that an initial short-term deal was in place for 1.2 BCM of gas, ahead of a more substantial five year deal that would restore supplies of 5.5 BCM per year going to Russia announced in July 2019. This amount, while helpful to the desperate Turkmen economy, pales in comparison to the 40 BCM that it used to supply before the first round of tensions in 2009 over a gas explosion, or even the 10-11 BCM it exported between 2011 and 2015 before the dispute over prices that led to the 2016-19 export freeze.[127] Most analysts believe that the restoration of Russian gas supply is first and foremost ‘political gas’, a supply Gazprom doesn’t really need but which helps to bring Turkmenistan back into closer alignment with Russia in return for hard currency that Turkmenistan desperately needs. While the details of the deal remain confidential, given the current sale price for Gazprom gas to its neighbours and on European Markets it is likely that the unit price Turkmenistan is getting will be well below the levels it received in the 2000s, not least when factoring in Turkmenistan’s weak bargaining position. [128]

US engagement with Turkmenistan is limited compared to that of some of its neighbours due to relatively few US players in the Turkmen energy sector and Turkmenistan’s wider military and diplomatic posture of neutrality. However President Trump has publically urged progress on the Tran-Caspian Pipeline, while its incoming Ambassador to Ashgabat has identified border security, particularly with Afghanistan and Iran, as being on the US agenda. [129]

Strong relations between Turkmenistan and the UAE have seen Dragon Oil, owned by the Emirates National Oil Company, become one of the more successful players in the Turkmen energy market. As mentioned above Dubai has been a focus for Turkmen migrant workers and the close relations enable Ashgabat to put pressure on migrants to return.

The EU’s engagement in Turkmenistan has been seen as relatively limited, but is likely to expand as it has recently opened a delegation in Ashgabat to give it a full diplomatic presence in the country. The newly updated EU-Turkmenistan Partnership and Cooperation Agreement (PCA) is pending ratification by the European Parliament. The relationship is also framed by the new EU-Central Asia strategy, with a better than expected focus on human rights but unambitious on trade.[130] The new EU Special Representative to the region in Peter Burian is also well-respected.[131]

The European Parliament is importantly seeking to set a series of concrete human rights benchmarks as its condition for the ratification of the EU-Turkmenistan PCA.[132] The EU has conducted 11rounds of its standard format human rights dialogues with Turkmenistan, such as in March 2019. However no public mention about the economic or human rights crisis was made by EU High Representative, Federica Mogherini, at the opening of the new EU Delegation in Ashgabat, though she was more forthcoming at the subsequent EU-Central Asia summit in Bishkek.[133]The EU has been undertaking education initiatives and is running a joint project aimed at supporting SME’s in partnership with the EBRD.[134]

What our authors say

Bruce Pannier argues that it is clear Turkmenistan’s economy has been in sharp decline for more than four years, but the full extent of the country’s economic problems remains unknown. Turkmenistan’s government claims the country continues to prosper. Authorities regularly tout growth and continue to spend lavishly on vanity projects – white marble hotels and government buildings, even a golf course. Independent verification of such claims is impossible as Turkmen authorities severely restrict the entry of foreigners into the country. But Turkmenistan’s people have found ways of telling to people outside the country, the story of the situation inside Turkmenistan. Their tale is one of chronic shortages of basic goods, rationing, lines outside stores and banks, cuts in benefits, and rising prices.

Eimear O’Casey examines the challenges facing businesses in the country.  She outlines the entrenched nepotism, cronyism, lack of recourse to justice and increasing reputational concerns that define the investment environment. She cites examples of the formal and informal obstacles that have faced foreign businesses as they seek to navigate the country’s opaque and restrictive regulatory climate, and argues that increasing pressure on the economy in recent years, rather than encouraging liberalisation or reform, has only reinforced these barriers.

Dr Luca Anceschi explores the nexus between Turkmenistan’s foreign economic relations and the country’s national gas industry, which represents the core sector of the Turkmen economy as a whole. The rentier logic of economic development promoted by the regimes that led Turkmenistan since the collapse of the USSR entrenched a relationship of dependency on natural resources that, at international level, translated into a dependency on energy export infrastructure, and pipelines more in particular. This brief article looks at four pipelines—some already existing, some nothing more than a project—to describe the precarious economic juncture at which Turkmenistan has found itself since the commercialisation of its gas ties with the People’s Republic of China.


Photo by David Lundberg, published under Creative Commons with no changes made.

[1]According to the 2008 US State department cables released by WikiLeaks at the time 26 of 31 top Government of Turkmenistan officials are descended from the Ahal  Teke tribe see WikiLeaks, Turkmenistan: Ahal Teke Tribe Dominates Government, January 2008, https://wikileaks.org/plusd/cables/08ASHGABAT55_a.html

[2] Facts and Details, Turkmenistan Becomes Independent, http://factsanddetails.com/central-asia/Turkmenistan/sub8_7a/entry-4803.html and David Roger Smith, Edward Allworth, Denis Sinor, Viktor Borisovich Zhmuida and Gavin R.G. Hambly, Turkmenistan, Encyclopaedia Britannica,  https://www.britannica.com/place/Turkmenistan#ref342789

[3] Something that similar groups in Armenia, Azerbaijan and elsewhere would become.

[4] Suparamat Niyozov, Ruhnama, 2001-2004  http://intersci.ss.uci.edu/wiki/eBooks/Asia/BOOKS/Ruhnama%20Niyozov.pdf

[5] Atlas Obscura, Giant Ruhnama, https://www.atlasobscura.com/places/giant-ruhnama

[6] See Louis Lafferty, Ruhnama Statue Opening-Turkmenistan, YouTube, December 2011,  https://www.youtube.com/watch?v=h1WhLZp_ocg also read Chronicles of Turkmenistan, Turkmenistan Is Finally Putting the ‘Ruhnama’ Behind Them, August 2014, https://en.hronikatm.com/2014/08/turkmenistan-is-finally-putting-the-ruhnama-behind-them/

[7] Richard Orange, Turkmenistan rebuilds giant rotating golden statue, Daily Telegraph, May 2011,  https://www.telegraph.co.uk/news/worldnews/asia/turkmenistan/8533427/Turkmenistan-rebuilds-giant-rotating-golden-statue.html

[8] Monica Whitlock, Turkmen leader orders ice palace, August 2004, http://news.bbc.co.uk/1/hi/world/asia-pacific/3554626.stm [Plans for an accompanying ski resort have been put on hold due to economic conditions]

[9] Turkmenistan.ru, Winter sports Center to be built in Ashgabat, August 2009, http://www.turkmenistan.ru/ru/node/26521

[10] Chronicles of Turkmenistan, Turkmenistan still experiences a shortage of cigarettes, January 2017, https://en.hronikatm.com/2017/01/turkmenistan-still-experiences-a-shortage-of-cigarettes/; BBC News, Turkmenistan: The regime that throws cigarettes on bonfires, December 2016,  https://www.bbc.co.uk/news/magazine-38266078 and Bruce Pannier, The Perils Of Smoking Cigarettes In Turkmenistan, RFE/RL, May 2016,  https://www.rferl.org/a/qishloq-ovozi-turkmenistan-smoking-crackdown/27728410.html

[11] Shaun Walker, A horse, a horse … Turkmenistan president honours himself with statue, The Guardian, May 2015, https://www.theguardian.com/world/2015/may/25/horse-turkmenistan-president-statute-berdymukhamedov

[12] ITV, Turkmenistan president all singing and dancing in bizarre video ‘dedicated to his horse’, April 2019, https://www.itv.com/news/2019-04-30/turkmenistan-president-gurbanguly-berdymukhamedov-singing-grandson-horse/ https://www.youtube.com/watch?v=JsNioEnxeNs

[13] Most citizens are not thoroughly inured to the excesses of their leaders

[14] BP, Statistical Review of World Energy 2019, https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

[15] Statistica, Cotton production by country worldwide in 2017/2018 (in 1,000 metric tons),  https://www.statista.com/statistics/263055/cotton-production-worldwide-by-top-countries/

[16] World Bank Group, Doing Business 2019: Training for Reform, October 2018, https://www.worldbank.org/en/region/eca/brief/doing-business

[17] EBRD, Turkmenistan Country Strategy 2019-2024,   https://www.ebrd-consultations.com/assets/Country-Strategies/Turkmenistan/67961d1592/turkmenistan-strategy-2019.pdf

[18]Bruce Pannier, Is Turkmenistan Being Pulled Into Russia’s Orbit?, RFE/RL, January 2019, https://www.rferl.org/a/iqshloq-ovozi-turkmenistan-pulled-into-russia-s-orbit/29713898.html

[19] UK Government, Overseas Business Risk – Turkmenistan, June 2019,   https://www.gov.uk/government/publications/overseas-business-risk-turkmenistan/overseas-business-risk-turkmenistan

[20] World Bank Group, Europe and Central Asia Economic Update, Spring 2019 : Financial Inclusion, April 2019,  https://openknowledge.worldbank.org/handle/10986/31501

[21]Turkmenistan: Rebuilding bridges, April  2019, https://eurasianet.org/turkmenistan-rebuilding-bridges and https://www.adb.org/sites/default/files/publication/492711/ado2019.pdf

[22] Kanat Shaku, Bread sellers demand passports as Turkmenistan’s economic crisis goes from bad to worse, BNE News, June 2018, https://www.intellinews.com/index.php/bread-sellers-demand-passports-as-turkmenistan-s-economic-crisis-goes-from-bad-to-worse-143613/

[23] Ibid.

[24] EBRD, Turkmenistan Country Strategy 2019-2024,  https://www.ebrd-consultations.com/assets/Country-Strategies/Turkmenistan/67961d1592/turkmenistan-strategy-2019.pdf

[25] Turkmen News, Turkmenistan: Customers Pay Bribes to Withdraw Cash, February 2019, https://en.turkmen.news/news/turkmenistan-customers-pay-bribes-to-withdraw-cash/

[26] Turkmen News, Turkmenistan: In the conditions of economic crisis, people are fighting for their money, June 2019,  https://turkmen.news/news/valyutnyy-krizis-turkmenistan/

[27] Eurasianet, Turkmenistan: Suicide of Coca-Cola executive casts more gloom, February 2019, https://eurasianet.org/turkmenistan-suicide-of-coca-cola-executive-casts-more-gloom  

[28] RFE/RL, Turkmenistan Cuts Last Vestiges Of Program For Free Utilities, September 2018, https://www.rferl.org/a/turkmenistan-cuts-last-vestiges-of-program-for-free-utilities/29511308.html

[29] Turkmenistan: More Cuts and Bad Business, The Diplomat, February 2019,  https://thediplomat.com/2019/02/turkmenistan-more-cuts-and-bad-business/

[30] BBC News, Banned Turkmenistan Airlines leaves thousands stranded, February 2019, https://www.bbc.co.uk/news/business-47115732

[31] Turkmenistan: More Cuts and Bad Business, The Diplomat, February 2019,  https://thediplomat.com/2019/02/turkmenistan-more-cuts-and-bad-business/

[32] An example of this latter case would be the oil and gas services company Petrofac has had an extended presence in the country

[33] CIS Legislation, LAW OF TURKMENISTAN About the Union of Industrialists and Entrepreneurs of Turkmenistan, May 2011, http://cis-legislation.com/document.fwx?rgn=43515

[34] WikiLeaks, TURKMENISTAN: LOCAL BUSINESS COUNCIL MEETING TOOK PLACE, January 2009,  https://wikileaks.org/plusd/cables/09ASHGABAT110_a.html

[35] Transparency International, Turkmenistan, https://www.transparency.org/country/TKM

[36] Turkmen News, Turkmen President’s Brother-in-Law Involved in Construction of $2.3bn Expressway, July 2019,  https://en.turkmen.news/news/turkmen-president-s-brother-in-law-involved-in-construction-of-2-3bn-expressway/ and Chronicles of Turkmenistan, Turkmenistan’s Union of Industrialists and Entrepreneurs, which received a $3 billion government loan for the construction of motorway, seeks additional investments in Austria, September 2018,  https://en.hronikatm.com/2018/09/turkmenistans-union-of-industrialists-and-entrepreneurs-which-received-a-3-billion-government-loan-for-the-construction-of-motorway-seeks-additional-investments-in-austria/

[37] UK Government, Overseas Business Risk – Turkmenistan, June 2019,  https://www.gov.uk/government/publications/overseas-business-risk-turkmenistan/overseas-business-risk-turkmenistan

[38] Catherine Putz, Turkmenistan Faces 2 New Arbitration Cases, October 2018, https://thediplomat.com/2018/10/turkmenistan-faces-2-new-arbitration-cases/

[39] UNCTAD, Investment Policy Hub – Turkmenistan, https://investmentpolicy.unctad.org/country-navigator/223/turkmenistan

[40] UK Government, Turkmenistan United Kingdom Trade and Industry Council in Ashgabat, April 2019, https://www.gov.uk/government/news/turkmenistan-united-kingdom-trade-and-industry-council-in-ashgabat

[41] Strategy International, Turkmenistan-UK Trade & Industry Council (TUKTIC),  January 2018, https://www.strategyinternational.co.uk/programme/2018/1/22/9g7ea13aggryxpmnhnxlnw97o5q5u3

[42] UK Government, Trade Envoys, https://www.gov.uk/government/groups/trade-envoys

[43] Abassador Thorda Abbott-Watt, Britian and Turkmenistan, August 2018, http://www.ocamagazine.com/britain-and-turkmenistan

[44] EBRD, Turkmenistan Country Strategy 2019-2024,  https://www.ebrd-consultations.com/assets/Country-Strategies/Turkmenistan/67961d1592/turkmenistan-strategy-2019.pdf

[45] Svitlana  Pyrkalo, EBRD loan supports Turkmen brewer Berk’s move into snacks, September 2016,  https://www.ebrd.com/news/2016/ebrd-loan-supports-turkmen-brewer-berks-move-into-snacks.html; Svitlana  Pyrkalo, EBRD funds first private mill for production of recycled cardboard in Turkmenistan, July 2013, https://www.ebrd.com/news/2013/ebrd-funds-first-private-mill-for-production-of-recycled-cardboard-in-turkmenistan.html; Svitlana  Pyrkalo. EBRD finances first PVC profile maker in Turkmenistan, January 2017, https://www.ebrd.com/news/2017/ebrd-finances-first-pvc-profile-maker-in-turkmenistan.html

[46] IPHR, Joint Letter: Turkmenistan Country Strategy Review by the EBRD, June 2019,  https://www.iphronline.org/joint-letter-turkmenistan-country-strategy-review-by-the-ebrd.html  

[47] Bruce Pannier, Turkmenistan’s Unreal Harvest, February 2019, RFE/RL, https://www.rferl.org/a/turkmenistan-s-unreal-harvest-wheat-cotton/29772430.html

[48] International Cotton Advisory Campaign, Cotton this month, January 2019,  https://www.icac.org/Content/PublicationsPdf%20Files/4b1e0c03_e012_4e94_abf2_e1afd5404b2d/cotton-this-month-e1_18.pdf.pdf

[49] Bruce Pannier, Turkmenistan’s Unreal Harvest, February 2019, RFE/RL, https://www.rferl.org/a/turkmenistan-s-unreal-harvest-wheat-cotton/29772430.html

[50] Alternative News of Turkmenistan, As grain harvest ends in Turkmenistan, media are silent about harvest victory, July 2018, https://habartm.org/archives/9318 and Alternative News of Turkmenistan, Once fertile Dashoguz turns into Turkmenistan’s salty wasteland, April 2018, https://habartm.org/archives/8956

[51] RFE/RL, Turkmen Leader Hails ‘Generous’ Harvests Despite Food Shortages, May 2019, https://www.rferl.org/a/turkmen-leader-hails-generous-harvests-despite-food-shortages/29947575.html

[52] Alternative News of Turkmenistan, Security services quell a riot in a Turkmen market, July 2018, https://habartm.org/archives/9324

[53] Kanat Shaku, Bread sellers demand passports as Turkmenistan’s economic crisis goes from bad to worse, BNE News, June 2018, https://www.intellinews.com/index.php/bread-sellers-demand-passports-as-turkmenistan-s-economic-crisis-goes-from-bad-to-worse-143613/

[54] Alternative News of Turkmenistan, Apartheid “in Ashgabat.” President-approved document discriminates residents of regions, February 2018, https://habartm.org/archives/4564

[55] Eurasianet, Turkmenistan protests too much as citizens are halted from leaving country, April 2019, https://eurasianet.org/turkmenistan-protests-too-much-as-citizens-are-halted-from-leaving-country

[56] Pete Baumgartner, Turkmenistan Clips Wings Of Citizens Fleeing Economic Woes, April 2018, https://www.rferl.org/a/turkmenistan-clips-wings-of-citizens-fleeing-economic-woes/29170508.html

[57] RFE/RL, Turkmenistanis now go to Uzbekistan and Kazakhstan to earn money, April 2018, https://rus.azathabar.com/a/29142683.html

[58] RFE/RL, Turkmen authorities discuss measures to bring Turkmen migrant women home, March 2018, https://rus.azathabar.com/a/29124851.html

[59] RFE/RL, At Ashgabat airport, passengers are removed from flights, “assistance” is more expensive to leave, March 2019, https://rus.azathabar.com/a/29833886.html

[60] Eurasianet, Turkmenistan: Students Slapped with Five-Year Travel Ban, November 2009, https://eurasianet.org/turkmenistan-students-slapped-with-five-year-travel-ban and Rebecca Stonawski, (Not) Leaving Turkmenistan? A Survey of Students from Turkmenistan at the American University of Central Asia, April 2012, https://journals.sagepub.com/doi/pdf/10.2304/power.2012.4.2.196

[61] Pete Baumgartner, ‘Killing Hope’: Turkmenistan’s List Of ‘Accepted’ Universities Deals (Another) Blow To Students, Radio Free Europe/Radio Liberty (RFE/RL), April 2019, https://www.rferl.org/a/killing-hope-turkmenistan-s-list-of-accepted-universities-deals-(another)-blow-to-students/29901588.html

[62] Farangis Najibullah, Escape From Turkmenistan: Almost 2 Million Have Fled, But The President Looks The Other Way, June 2019, https://www.rferl.org/a/escape-from-turkmenistan-almost-2-million-have-fled-but-the-president-won-t-hear-of-it/29987972.html

[63] The World Bank lists it as 0.0%, https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS, but other sources also suggest lower than 1% Federal Reserve Bank of St. Louis, Remittance Inflows to GDP for Turkmenistan, https://fred.stlouisfed.org/series/DDOI11TMA156NWDB and Turkmenistan-Migrant Remittance, https://countryeconomy.com/demography/migration/remittance/turkmenistan

[64] Azerbaijan for example -see Adam Hug (ed.),  Spotlight on Azerbaijan, May 2012, https://fpc.org.uk/publications/spotlight-on-azerbaijan/

[65] Amnesty International, Turkmenistan: Satellite images reveal how mass forced evictions blight upcoming Asian Games, October 2015, https://www.amnesty.org/en/latest/news/2015/10/turkmenistan-satellite-images-reveal-how-mass-forced-evictions-blight-upcoming-asian-games/

[66] Human Rights Watch, Turkmenistan: Hosting Asian Games Amid Widespread Repression, July 2017, https://www.hrw.org/news/2017/06/07/turkmenistan-hosting-asian-games-amid-widespread-repression

[67] Anti-Slavery International, Turkmen cotton and the risk of forced labour in global supply chains,  April 2019, https://www.antislavery.org/wp-content/uploads/2019/04/Turkmenistan-Turkey-report.pdf

[68] Fergana News, Subbotnik participants in Turkmenistan were forced to hide from the president, May 2019, http://fergana.agency/news/107520/

[69] Solidarity Centre, Children, Pregnant Teachers Forced to Pick Turkmenistan’s Cotton, February 2018,  https://www.freedomunited.org/news/children-teachers-turkmenistan-cotton/

[70] Responsible Sourcing Network, Turkmen Cotton Investor Statement, June 2019, https://www.sourcingnetwork.org/turkmen-investor-statement

[71] Anti-Slavery International, Forced Labour Tainted Cotton: from Turkmenistan via Turkey,  April 2019, www.antislavery.org/forced-labour-tainted-cotton-from-turkmenistan-via-turkey/

[72] Responsible Sourcing Network, U.S. Customs Halts Imports of Forced Labor Cotton and Cotton Goods from Turkmenistan, May 2018,  https://www.sourcingnetwork.org/press-release-turkmenistan-imports

[73] Alternative News of Turkmenistan, Cotton pickers struggle with low pay, poor crop in southern Turkmenistan, November 2018, https://habartm.org/archives/9737

[74] Bertelsmann Stiftung Transformation Index, BTI 2018- Turkmenistan Country Report, https://www.bti-project.org/en/reports/country-reports/detail/itc/TKM/

[75] Freedom House, Freedom in the World Index 2018, https://freedomhouse.org/report/freedom-world-2018-table-country-scores

[76] FCO, Human Rights and Democracy: the 2018 Foreign and Commonwealth Office report, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/806851/human-rights-democracy-2018-foreign-and-commonwealth-office-report.pdf

[77] OSCE, Turkmenistan Parliamentary Elections, 25 MARCH 2018 ODIHR Election Assessment Mission Final Report, https://www.osce.org/odihr/elections/382915?download=true

[78] Prove They Are Alive, The Disappeared List, http://provetheyarealive.org/the-disappeared/

[79] Prove They Are Alive, Ovadan Depe Medieval Torture in modern Turkmenistan, http://provetheyarealive.org/ovadan-depe-medieval-torture-in-modern-turkmenistan/

[80] Rachel Denber, End A Dissident’s Ordeal in Turkmenistan, Human Rights Watch, May 2019, https://www.hrw.org/news/2019/05/13/end-dissidents-ordeal-turkmenistan

[81] Exeter Central Asian Studies Network, Central Asian Political Exiles (CAPE) database- Bayhanov, Akmukhammet,  https://excas.net/exile/bayhanov-akmukhammet/ and The Borgen Project, The realities behind human rights in Turkmenistan, July 2017,  https://borgenproject.org/human-rights-in-turkmenistan/   

[82] Exeter Central Asian Studies Network, Central Asian Political Exiles (CAPE) database, https://excas.net/exiles/

[83] Eurasianet, Turkmenistan: What’s left of rights?, June 2018, https://eurasianet.org/turkmenistan-whats-left-of-rights and Alternative News of Turkmenistan, The Turkmen Ombudsman submitted her first report. Half of the document – plagiarism, June 2018, https://habartm.org/archives/9222

[84] Turkmen News, Housing, Court Rulings — Main Targets of Public Complaint, Turkmen Ombudswoman’s Report Shows, July 2019, https://en.turkmen.news/news/turkmen-ombudswoman-2018-report/

[85] Amnesty International, Turkmenistan- Submission to the United Nations Committee on the Elimination of Discrimination Against Women, July 2018, https://www.amnesty.org/en/documents/eur61/8474/2018/en/ and Turkmenistan still experiences a shortage of cigarettes, Chronicles of Turkmenistan, January 2017, Turkmenistan still experiences a shortage of cigarettes, https://en.hronikatm.com/2017/01/turkmenistan-still-experiences-a-shortage-of-cigarettes/

[86] Amnesty International Public Statement, Amnesty International urges  Turkmenistan to resolve all enforced disappearances and end criminalization of same sex relations, September 2019, https://www.amnesty.org/download/Documents/EUR6191262018ENGLISH.pdf

[87] Human Rights Watch, Dignity Debased- Forced Anal Examinations in Homosexuality Prosecutions, July 2016, https://www.hrw.org/report/2016/07/12/dignity-debased/forced-anal-examinations-homosexuality-prosecutions

[88] Sarah Repucci, Freedom and the Media: A Downward Spiral, 2019,  https://freedomhouse.org/report/freedom-media/freedom-media-2019

[89] Chris Forrester, Satellite dishes banned in Turkmenistan, April 2015, https://advanced-television.com/2015/04/22/satellite-dishes-banned-in-turkmenistan/

[90] Freedom House had listed it at 15% in 2017 according to the Freedom of the Press 2017, https://freedomhouse.org/report/freedom-press/2017/turkmenistan while others put the figure at 18% in 2018 according to a  We are Social/Hootsuite, Digital 2018, https://www.slideshare.net/DataReportal/digital-2018-turkmenistan-january-2018 and a similar figure for 2016 from the CIA World Factbook-Turkmenistan, https://www.cia.gov/library/publications/the-world-factbook/geos/tx.html

[91] RFE/RL, German Tech Firm’s Turkmen Ties Trigger Surveillance Concerns, February 2019, https://www.rferl.org/a/german-tech-firm-s-turkmen-ties-trigger-surveillance-concerns/29759911.html and Human Rights Watch, Turkmenistan: Report of Inquiry to German Cybersecurity Firm, June 2018, https://www.hrw.org/news/2018/06/25/turkmenistan-report-inquiry-german-cybersecurity-firm

[92] Who are supporting the FPC with this project.

[93] Committee to Protect Journalists, Turkmenistan journalist Soltan Achilova barred from traveling abroad, March 2019, https://cpj.org/2019/03/turkmenistan-journalist-soltan-achilova-barred-fro.php

[94] RFE/RL,  Jailed, Harassed RFE/RL Correspondent Leaves Turkmenistan, March 2019, https://www.rferl.org/a/jailed-harassed-rfe-rl-correspondent-leaves-turkmenistan/29839464.html    

[95] RSF, Turkmenistan bans journalist Soltan Achilova from travelling abroad, March 2019, https://rsf.org/en/news/turkmenistan-bans-journalist-soltan-achilova-travelling-abroad and RFE/RL, RFE/RL Correspondent Forcibly Detained In Turkmenistan, May 2018, https://www.rferl.org/a/rferl-correspondent-achilova-detained-brutalized-security-forces-turkmenistan/29220474.html

[96] Gaspar Matalaev is a relative of the editor of Turkmen News, the FPC’s partner for this project. Joanna Ewart-James, Gaspar Matalaev: serving time for reporting on forced labour in Turkmenistan’s cotton fields, Independent, February 2018,  https://www.independent.co.uk/voices/campaigns/voicesindanger/serving-time-for-reporting-on-forced-labour-in-cotton-fields-a8194961.html

[97] Human Rights Watch, Turkmenistan: UN Blames Government for Activist’s Death, August 2018, https://www.hrw.org/news/2018/08/09/turkmenistan-un-blames-government-activists-death

[98] FCO, Human Rights and Democracy: the 2017 Foreign and Commonwealth Office report, October 2018, https://www.gov.uk/government/publications/human-rights-and-democracy-report-2017/human-rights-and-democracy-the-2017-foreign-and-commonwealth-office-report

[99] RFE/RL, Jailed Turkmen Animal Rights Activist Visited By Daughter After Days Held Incommunicado, December 2017, https://www.rferl.org/a/turkmenistan-kucherenko-animal-rights-activist-arrested/28912076.html

[100] Eurasianet, Has Turkmenistan Learned to Love Dogs? (Hint: No), August 2017, https://eurasianet.org/has-turkmenistan-learned-to-love-dogs-hint-no and Institute for War and Peace Reporting, Rights Activists Say World Must Act on Turkmenistan Abuses, March 2011,  https://iwpr.net/global-voices/rights-activists-say-world-must-act-turkmenistan-abuses

[101] Turkmenistan, Results of the elections to the National Parliament, December 2013, http://www.turkmenistan.gov.tm/_eng/?id=3069

[102] Chronicles of Turkmenistan, Turkmen Red Crescent to be funded by residents, February 2017, https://en.hronikatm.com/2017/02/turkmen-red-crescent-to-be-funded-by-residents/ and Red Crescent Society of Turkmenistan, https://www.ifrc.org/en/what-we-do/where-we-work/europe/red-crescent-society-of-turkmenistan/

[103] The International Center for Not for Profit Law, Civic Freedom Monitor: Turkmenistan, July 2018,  http://www.icnl.org/research/monitor/turkmenistan.html

[104] UNDP, Turkmenistan, http://www.tm.undp.org/content/turkmenistan/en/home.html

[105] UCL, Ancient Merv Project, https://www.ucl.ac.uk/archaeology/research/ancient-merv-project

[106] Forum 18, TURKMENISTAN: In Ramadan, Muslims fear “extremism” accusations, May 2019, http://www.forum18.org/archive.php?article_id=2481

[107] Felix Corley, TURKMENISTAN: Appeals against 12-year jail terms fail, July 2018, http://www.forum18.org/archive.php?article_id=2399

[108] CIA, World Factbook- Turkmenistan, https://www.cia.gov/library/publications/the-world-factbook/geos/tx.html and Felix Corley, TURKMENISTAN: Second 2019 conscientious objector jailing, Forum 18,  June 2019,  http://www.forum18.org/archive.php?article_id=2483

[109] Naz Nazar, The tragic echoes of Turkey’s anti-Gülen campaign in Turkmenistan, Open Democracy, April 2018,  https://www.opendemocracy.net/en/odr/anti-gulen-campaign-in-turkmenistan/

[110] Felix Corley, TURKMENISTAN: Appeals against 12-year jail terms fail, July 2018,  http://www.forum18.org/archive.php?article_id=2399

[111] The Chronicles of Turkmenistan, Turkmenistan re-launches the anti-beard campaign, January 2019, https://en.hronikatm.com/2019/01/turkmenistan-re-launches-the-anti-beard-campaign/

[112] Monica Whitlock, Young Turkmen face beard ban, BBC News, February 2004, http://news.bbc.co.uk/1/hi/world/asia-pacific/3486776.stm

[113] Freshfields Bruckhaus Deringer, Legal Status of the Caspian Sea: New Opportunities and New Challenges, November 2018, http://knowledge.freshfields.com/en/Global/r/3848/the_new_convention_on_the_legal_status_of_the_caspian_sea and Robert Cutler, Third time lucky for Trans-Caspian Gas Pipeline?, Petrolium Economist, June 2019, https://www.petroleum-economist.com/articles/politics-economics/europe-eurasia/2019/third-time-lucky-for-trans-caspian-gas-pipeline

[114] Chen Aizhu and Henning Gloystein, China gas demand to surge in 2019, but maybe not enough to sop up LNG glut, Reuters, April 2019, https://uk.reuters.com/article/us-china-gas-beijinggas/china-gas-demand-to-surge-in-2019-but-maybe-not-enough-to-sop-up-lng-glut-idUKKCN1RK0BW

[115] Chen Aizhu and Henning Gloystein, China gas demand to surge in 2019, but maybe not enough to sop up LNG glut, Reuters, April 2019, https://uk.reuters.com/article/us-china-gas-beijinggas/china-gas-demand-to-surge-in-2019-but-maybe-not-enough-to-sop-up-lng-glut-idUKKCN1RK0BW

[116] Sam Bhutia, Twitter traffic- Turkmenistan’s Goods Exports to China, May 2019,   https://twitter.com/sam_bhutia/status/1130819093286641664/photo/1

[117] Expert views on the reason for this vary from unexpectedly reduced Chinese demand given the rise of LNG and capacity/supply problems, notably in November 2018- for the latter see Chu Daye and Zhang Hongpei, Natural gas supply shortage from Turkmenistan driving up prices in China amounts to ‘hype’: NDRC, Global Times, January 2019, http://www.globaltimes.cn/content/1135213.shtml. It is possible that both factors were in play. 

[118] Eurasianet, China Figures Reveal Cheapness of Turkmenistan Gas, October 2016, https://eurasianet.org/china-figures-reveal-cheapness-turkmenistan-gas

[119] Bruce Pannier, Analysis: TAPI And Other Turkmen Tales, December 2018, RFE/RL  https://www.rferl.org/a/tapi-turkmen-tales-pipeline-qishloq-ovozi-pannier/29632356.html and Bruce Pannier, Another Turkmen Pipe Mystery, RFE/RL, April 2019,  https://www.rferl.org/a/qishloq-ovozi-tapi-turkmen-pipe-mystery/29862029.html

[120] State News Agency of Turkmenistan, Turkmenistan is actively developing new forms of international energy business, February 2019,  http://www.turkmenistan.gov.tm/?id=18454

[121] Najim Rahim and Rod Nordland, Taliban Capture About 150 Afghan Soldiers After Chase Into Turkmenistan, New York Times, March 2019,  https://www.nytimes.com/2019/03/17/world/asia/afghanistan-soldiers-taliban-turkmenistan.html

[122] Khalid Mustafa, Pakistan links TAPI work initiation with gas price review, The News, June 2019, https://www.thenews.com.pk/print/481480-pakistan-links-tapi-work-initiation-with-gas-price-review

[123] The Economic Times, India seeks re-negotiation in gas price from TAPI pipeline, August 2018, https://economictimes.indiatimes.com/industry/energy/oil-gas/india-seeks-revision-in-gas-price-from-tapi-pipeline/articleshow/65497724.cms?from=mdr

[124] Business Recorder, Equity in TAPI: proposal approved by ECC, December 2015,  https://fp.brecorder.com/2015/12/201512191257147/

[125] Alex Forbes, Turkmenistan sees light at the end of the tunnel, June 2019, https://www.petroleum-economist.com/articles/upstream/exploration-production/2019/turkmenistan-sees-light-at-the-end-of-the-tunnel

[126] NEBIT-GAZ, Turkmenistan resumed natural gas supplies to Russia, April 2019, http://www.oilgas.gov.tm/blog/2653/turkmenistan-vozobnovil-postavki-prirodnogo-gaza-v-rossiyu

[127] RFE/RL, Gazprom Reaches Five-Year Gas Deal With Turkmenistan, July 2019, https://www.rferl.org/a/gazprom-reaches-five-year-gas-deal-with-turkmenistan/30035528.html

[128] A discussion between Dr Luca Anceschi, Bruce Pannier, political analyst Sam Butia and energy analyst Laurent Ruseckas, https://twitter.com/anceschistan/status/1144606148273852417?s=11

[129] Dr Victoria Clement, What Are US Interests in Turkmenistan?, The Diplomat, June 2016, https://thediplomat.com/2019/06/what-are-us-interests-in-turkmenistan/

[130] Sam Bhutia, The EU’s new Central Asia strategy: What does it mean for trade?, Eurasianet, June 2019, https://eurasianet.org/the-eus-new-central-asia-strategy-what-does-it-mean-for-trade

[131] EEAS, Joint Communication on the EU and Central Asia: New opportunities for a stronger partnership, May 2019, https://eeas.europa.eu/headquarters/headquarters-homepage/62411/joint-communication-eu-and-central-asia-new-opportunities-stronger-partnership_en

[132] IPHR, The EU adopts important benchmarks, as repression continues in Turkmenistan, May 2019, https://www.iphronline.org/the-eu-adopts-important-benchmarks-as-repression-continues-in-turkmenistan.html and the European Parliament resolution of 12 March 2019 on the draft Council and Commission decision on the conclusion by the EU and the European Atomic Energy Community of the Partnership and Cooperation Agreement establishing a Partnership between the European Communities and their Member States, of the one part, and Turkmenistan, of the other part (12183/1/2011 – C8-0059/2015 – 1998/0031R(NLE)), http://www.europarl.europa.eu/doceo/document/TA-8-2019-0146_EN.html?redirect

[133] European External Action Service, Mogherini Full Intervention, July 2019, https://twitter.com/eu_eeas/status/1147545602391248897

[134] EU Project: Support to the Education Sector in Turkmenistan, https://education-turkmenistan.eu/

Footnotes
    Related Articles

    Food lines in a land of marble

    Article by Bruce Pannier

    Food lines in a land of marble

    On June 5th 2019 in Turkmenistan’s capital Ashgabat, dozens of people lined up outside a state store where they heard there was sugar for sale.[1] Four years ago, there were no lines outside state stores. Now there are lines for almost everything, and it is worse outside the capital.

    The folly of depending on exports of natural gas for revenues is evident now in Turkmenistan, though it has not stopped the government from its profligate spending on projects that seem to be of little, if any, value to the people of the country. The people of Turkmenistan increasingly bear the burden of trying to keep the regime of President Gurbanguly Berdimuhamedov financially afloat, awhile they live through the worst period in Turkmenistan’s nearly 28 years as an independent country. Alongside the decreases in the standards of living, Turkmenistan’s people face increases in restrictions.

    The price of natural gas in 2014 averaged about US $350 per 1,000 cubic metres. By 2016, the price was closer to US $200. Turkmenistan’s system is opaque and such figures, which the state provides, are often suspect. It is believed between 70 and 80 per cent of Turkmenistan’s revenue comes from the sale of natural gas. Turkmenistan lost Russia as a customer at the start of 2016, and Iran as a customer at the start of 2017, leaving China as the only country currently purchasing any large volumes of Turkmen gas.

    Toward the end of 2016, information started leaking out of Turkmenistan, suggesting shortages of basic food items in some areas of the country. In September 2016, in the northern Dashoguz Province there was a shortage of flour. Of nine districts in the province, only one (Gorogly district) had flour and that was at the flour mill.[2] More than one million people live in Dashoguz Province, some residing 200 kilometres from the Gorogly district. One Dashoguz resident said the line outside the flour plant was “so long it can take three to five days. People sleep in front of the mill“.[3] There was a limit of one 50-kilogram sack of flour per family, but the price at the mill was about 50 manat (a bit more than US $14) while the other option, flour from neighbouring Kazakhstan, cost 190 manat (more than US $50). By December, there were reports many state stores in Dashoguz were short of sugar and cooking oil. People wishing to purchase such items often had to put their names on waiting lists, and the wait could be as long as four to five weeks.[4]

    In December 2017, high quality flour had practically disappeared from many parts of Turkmenistan. In Ashgabat, and in the Mary and Lebap provinces, the price had reportedly risen from 50 manat per sack of flour to 100 manat.[5] In February 2018, people seeking to purchase bread in Dashoguz were reportedly required to prove they had paid their gas and electric bills.[6] By the end of that month flour was being rationed to one five-kilogram sack per customer in Dashoguz. In Mary Province flour was limited to one sack (still 50 kilograms) per family and it had to be pre-ordered.[7] Even in Ashgabat, there was a limit of one one-kilogram bag of flour and a half kilogram of sugar per customer. It had previously been five kilograms of flour and one kilogram of sugar per customer.[8] In November 2018, the Hronika Turkmenistana website posted a video, said to be filmed in Ashgabat, showing people waiting for a bread truck to arrive at the local state store and being limited to no more than two loaves of bread (the flat bread that Turkmen call ‘chorek’).[9] Despite a report from a television channel in Kazakhstan that said Turkmenistan had imported some 100,000 tons of grain from Kazakhstan.[10]

    Goods such as sugar, flour, and cooking oil are available at private stores and at bazaars, but the price can be anywhere from three to 10 times what it would be at a state store, so many people chose to wait. There were reports in October 2018 that people from the regions were coming to Ashgabat hoping to buy bread, flour, and cooking oil and that police were stopping and inspecting cars with license plates from the regions looking for food. Those caught taking food out of Ashgabat were fined.[11]  It became increasingly difficult to enter Ashgabat. By February 2019, vehicles from the regions were forced to halt anywhere from five to 25 kilometres outside Ashgabat’s city limits.[12]

    Money, actual cash, is in short supply in Turkmenistan. The government attempted to make Turkmenistan a cashless country by issuing bank cards to citizens and directly depositing salaries, pensions, and other social benefit payments into bank accounts. But many stores still do not have the necessary machines to accept card payments. Bazaars certainly are not set up for accepting bank cards. So, people take money out of automated teller machines (ATMs). These ATMs are not regularly stocked with cash, especially in the regions. When an ATM is replenished, word quickly spreads and lines form, everybody hoping the machine will still have cash when their turn comes to make a withdrawal. Security forces and police often watch lines outsides banks now since scuffles have broken out in lines and, on occasions, people have complained loudly about the government and the president.[13] Even when there is money, there are limits as to the amount of cash that can be withdrawn. Exchange bureaus in Turkmenistan stopped selling hard foreign currency in January 2016.[14] The rate of the manat on the black market at that time was between 4 to 4.2 manat to US $1. The official rate was and remains 3.5 manat to U.S. $1, but as of the start of June 2019, the black market rate is between 18.5 to 19 manat to US $1.

    Unemployment is high. Turkmen authorities have never released figures for unemployment, but it is estimated 60 to 70 per cent of the eligible workforce is unemployed or underemployed. The last four years have seen layoffs in almost every sector of the country, from state employees to workers in the key gas and oil industry.

    Turkmen authorities have gradually tightened restrictions for those wishing to fly out of Turkmenistan. In April 2018, there were reports authorities at the Ashgabat airport, the only airport in Turkmenistan with international flights, were preventing people under 30 years of age from boarding international flights.[15] By late June 2018, the age restriction had reportedly increased to people under 40.[16]

    Women’s rights have diminished since 2016. In October 2016, women were forbidden from buying cigarettes. This restriction was eased into force in Turkmenbashi City so only women with notes from doctors saying they were addicted to tobacco could purchase cigarettes.[17] In May 2018, a dress code was introduced for non-Turkmen women in Ashgabat, obligating them to wear traditional long Turkmen dresses. Later a ban on miniskirts was introduced.[18] In February 2019, there were reports police in Ashgabat were confiscating drivers’ licenses from women.[19] And in June 2019, there was a report authorities were refusing to renew the expired drivers’ licenses of women.[20]

    Students studying abroad are required to return to Turkmenistan during school breaks. Also, when they are studying abroad students from Turkmenistan have limited access to funding from home. In July 2017, parents back in Turkmenistan were limited to sending only 1,050 manat (US $300 at the official rate) per month through Western Union.[21] Some Turkmen students in Belarus, Russia, Turkey, Kazakhstan, and Tajikistan were forced to withdraw from universities because they did not receive money in time to pay tuition.[22]

    Allotments of water, gas, and electricity that the government has provided for free to the population since shortly after independence, were reduced starting in 2017, then totally canceled at the start of 2019. Residents were expected to pay for the installation of metres to measure their household usage of gas and water. The cost of sending children to kindergarten has also increased. In October 2017, the cost of kindergarten in Dashoguz increased from eight to 80 manat per month, with increases across Turkmenistan.[23] A group of outraged mothers went to the city administration building to complain, an act that just a few years ago would have been unthinkable. The special police unit OMON was called to the scene. The deputy head of municipal education came out and told the women he could not do anything for them, and recommended they take their concerns to the mayor’s office, which they did. Later the same day, the deputy education head was arrested and charged with calling for an overthrow of the government.[24]

    To listen to Berdimuhamedov and state media, one would get the impression Turkmenistan was a paradise, the envy of countries around the world. Despite a deepening economic crisis with the accompanying shortages affecting the country’s people so much, Turkmen authorities continued spending money on projects of questionable benefit.

    In December 2010, Turkmenistan was chosen to host the 2017 Asian Indoor Martial Arts Games (AIMAG). When Turkmenistan was selected as the AIMAG host, the country was exporting gas to Russia, Iran, and had just completed two (of four planned) gas pipelines to China. Gas prices were rising on global markets. By 2015, gas was half the 2010 price. Authorities had approved construction of a US $2.3 billion airport outside Ashgabat for AIMAG. The cost of construction for the AIMAG facilities, including a circular five-kilometre monorail system, was estimated at more than US $5 billion. As gas revenues fell, the government started garnishing workers’ wages as ‘voluntary donations’ for AIMAG.[25] Non-residents of Ashgabat, many of whom had been there to help build the AIMAG facilities, were chased from Ashgabat before the games opened on September 17th, 2017. Thousands of citizens were organised as volunteers to help with AIMAG or as spectators to keep event halls full so that media coverage, especially foreign media, showed images of packed stadiums and indoor gyms.

    20 days after AIMAG ended, Turkmenistan’s first golf course opened in Ashgabat, despite the fact few in Turkmenistan know anything about the game, and Turkmenistan is nearly 90 per cent covered by desert, so water is scarce. In May 2018, the Caspian port in Turkmenbashi City reopened after US $1.5 billion in renovation and modernization work. In July 2018, Turkmen authorities announced the completion of a 170-hectare artificial island in the shape of a crescent off Turkmenistan’s Caspian coast.[26]

    When state media is not boasting about these achievements, it often covers President Berdimuhamedov’s exploits. Berdimuhamedov claims to have authored more than 40 books on topics ranging from tea to the native Akhal Teke horse, as well as books such as ‘Arkadag’s Doctrine. The basis for health and inspiration.’ State television shows Berdimuhamedov riding bicycles, horses, lifting weights, playing guitar or piano, singing songs, etc., sometimes with his grandsons. Among state television’s recent favourites are clips showing the president twisting and turning expensive automobiles around racetracks and in the desert, or dressing in military fatigues to participate in military drills, and sometimes demonstrating how to fire weapons and throw knives.[27]

    Small wonder some of Turkmenistan’s citizens have chosen to leave the country. According to a recent report, some 1.9 million people, more than one-third of Turkmenistan’s population, might have already left in the last decade.[28] It is difficult to know if this is true. Turkmenistan never released the results of its last census in 2009. But it is known that many thousands of Turkmenistan’s citizens have left for Turkey, Cyprus, Russia, and other countries looking for work and they have not returned to Turkmenistan.


    [1] Radio Azatlyk, В Ашхабаде продолжается дефицит продуктов, сохраняются очереди за сахаром (The deficit of products continues in Ashgabat, the lines for sugar are still there), Radio Free Europe/Radio Liberty, June 2019, https://rus.azathabar.com/a/29982598.html

    [2] Qishloq Ovozi, Turkmenistan’s Reality: Unpaid Wages And Shortages Of Food, RFE/RL, September 2016, https://www.rferl.org/a/turkmenistan-reality-unpaid-wages-food-shortages/28016347.html

    [3] Ibid.

    [4] Qishloq Ovozi, On The Waiting List For Sugar, Cooking Oil In Turkmenistan, RFE/RL, December 2016, https://www.rferl.org/a/qishloq-ovozi-waiting-list-for-sugar-cooking-oil/28154447.html

    [5] Radio Azatlyk, В Туркменистане наблюдается дефицит муки (Turkmenistan is witnessing a flour shortage), RFE/RL, December 2017, https://rus.azattyq.org/a/28894201.html

    [6] Radio Azatlyk, В Туркменистане для покупки муки требуют справку об отсутствии задолжности за газ и электричество (To purchase bread in Turkmenistan one must bring a form showing they have no debts for gas and electricity), RFE/RL, February 2018, https://rus.azathabar.com/a/29043406.html

    [7] Radio Azatlyk, В Дашогузе на одного взрослого члена семьи можно купить 5 килограмм муки, а в Мары нужно отстоять долгую очередь (In Dashoguz one adult family member can purchase 5 kilogram of flour, and in Mary one must wait in long lines), RFE/RL, February 2018, https://rus.azathabar.com/a/29063701.html

    [8] Туркменистан: Продовольственный кризис добрался до столицы (Food crisis reaches the capital), Turkmen.news (formerly the Alternative News of Turkmenistan), March 2018, https://habartm.org/archives/8729

    [9] В Ашхабаде по-прежнему наблюдаются очереди за хлебом (As previously, there are queues in Ashgabat for bread), Hronika Turkmenistana, November 2018, https://www.hronikatm.com/2018/11/v-ashhabade-po-prezhnemu-nablyudayutsya-ocheredi-za-hlebom/

    [10] Казахстан отправил на экспорт более 5 млн тонн зерна (Kazakhstan exported more than 5 million tonnes of grain), Khabar 24 TV, September 2018, https://24.kz/ru/news/economyc/item/264623-kazakhstan-otpravil-na-eksport-bolee-5-mln-tonn-zerna

    [11] Полицейские штрафуют водителей за вывоз продуктов из Ашхабада в регионы (Police are fining drivers for taking food from Ashgabat to the regions), Hronika Turkmenistana, October 2018, https://www.hronikatm.com/2018/10/politseyskie-shtrafuyut-voditeley-za-vyivoz-produktov-iz-ashhabada-v-regionyi/

    [12] В Ашхабад по-прежнему не пропускают машины из регионов (They are still not allowing vehicles from regions into Ashgabat), Hronika Turkmenistana, February 2019, https://www.hronikatm.com/2019/02/ashhabad-po-prezhnemu-zakryt-dlya-inogorodnego-transporta/

    [13] Qishloq Ovozi, The Sights And Sounds Of Discontent In Turkmenistan, RFE/RL, October 2018, https://www.rferl.org/a/the-sights-and-sounds-of-discontent-in-turkmenistan/29555377.html

    [14] Olzhas Auyezov, Turkmenistan exchange bureaus stop selling foreign currency, Reuters, January 2016, https://www.reuters.com/article/turkmenistan-forex/turkmenistan-exchange-bureaus-stop-selling-foreign-currency-idUSL8N14W2XY20160112

    [15] В Туркменистане с международных рейсов снимают молодых людей (Young people are being taken off international flights in Turkmenistan), Hronika Turkmenistana, April 2018, https://www.hronikatm.com/2018/04/v-turkmenistane-s-mezhdunarodnyih-reysov-snimayut-molodyih-lyudey/

    [16] Radio Azatlyk, Из Туркменистана не выпускают граждан моложе 40 лет (They are not allowing people under 40 to leave Turkmenistan), RFE/RL, June 2018, https://rus.azathabar.com/a/29323179.html

    [17] Туркменбаши: Женщинам продают сигареты по справке из наркологии (Turkmenbashi: Cigarettes are sold to women if they have a note from narcology), Alternative News of Turkmenistan, January 2017, https://habartm.org/archives/6282

    [18] Radio Azatlyk, В Ашхабаде от женщин не туркменской национальности требуют носить длинные платья. (In Ashgabat women who are not of Turkmen nationality are required to wear long dresses), RFE/RL, May 2018, https://rus.azathabar.com/a/29261043.html

    [19] Radio Azatlyk, Ашхабадская полиция отбирает водительские права у женщин (Ashgabat police confiscating drivers’ licenses from women), RFE/RL, February 2019, https://rus.azathabar.com/a/29776458.html

    [20] Radio Azatlyk, В Туркменистане женщинам не продлевают водительские удостоверения (They are not prolonging drivers’ licenses for women), RFE/RL, June 2019, https://rus.azathabar.com/a/29978517.html

    [21] В Туркменистане выстраиваются очереди из желающих перевести деньги за рубеж (In Turkmenistan lines are forming for those wishing to send money abroad), Hronika Turkmenistana, July 2017, http://www.chrono-tm.org/2017/07/v-turkmenistane-vyistraivayutsya-ogromnyie-ocheredi-iz-zhelayushhih-perevesti-dengi-za-rubezh-2/

    [22] Azatlyk, Родители студентов, отчисленных из-за неуплаты по вине туркменских банков, не могут вернуть свои деньги (Parents of students who were expelled for not paying tuition because of Turkmen banks cannot get their money back), RFE/RL, July 2018, https://rus.azathabar.com/a/29360779.html

    [23] Radio Azatlyk, В Дашогузе 10-кратное увеличение оплаты детсада вызвало стихийную акцию протеста. (A 10-time increase in the cost for kindergarten sparks spontaneous action), RFE/RL, October 2017, https://rus.azathabar.com/a/28791955.html

    [24] Radio Azatlyk, После протеста против повышения оплаты детского сада чиновника в Дашогузе обвиняют в «призыве к восстанию против власти» (After the protest against the increase in fees for kindergarten, an official is charged with “calling for the overthrow of the government”), RFE/RL, October 2017, https://rus.azathabar.com/a/28802325.html

    [25] Qishloq Ovozi, Milking Turkmenistan’s People To Pay For The Games, RFE/RL, March 2017, https://www.rferl.org/a/qishloq-ovozi-milking-turkmen-people-pay-for-games/28403657.html

    [26] Turkmenistan creates artificial island near Caspian coast, Trend,  July 2018, https://www.azernews.az/region/134953.html

    [27] Президент Туркменистана принял участие в военных учениях (The president of Turkmenistan took part in military exercises), Hronika Turkmenistana, August 2017, https://www.youtube.com/watch?v=OtLxYyf8K8I

    [28] Radio Azatlyk, Источник: За 10 лет из Туркменистана выехало почти 1,9 миллиона человек (Source: During the last 10 years almost 1.9 million people have left Turkmenistan), RFE/RL, May 2019, https://rus.azathabar.com/a/29969698.html

    Footnotes
      Related Articles

      A complex and opaque destination for investment

      Article by Eimear O'Casey

      A complex and opaque destination for investment

      Turkmenistan is a complex and opaque destination for investment. The business climate is characterised by structural economic problems and general economic mismanagement, with the prioritisation of vanity projects over core investment and a near-total absence of checks and balances on presidential decision-making. This facilitates endemic corruption and the influence of opaque but powerful vested interests over all aspects of the economy and business environment.

      All talk

      Turkmenistan’s economy has undergone few structural reforms since independence from the Soviet Union in the early 1990s. It retains key hallmarks of the post-Soviet economy, remaining overwhelmingly dependent on the oil and gas sector for growth. The Turkmenistan authorities regularly express their desire to drive economic growth and diversification through foreign investment. Since the economic slowdown began in late 2014, President Gurbanguly Berdimuhamedov has courted multiple countries, especially a number of Middle East and Gulf states, with offers of economic co-operation.

      However, such statements can mostly and fairly be assessed as hollow platitudes. The vast majority of the economy remains firmly in the hands of either the state, or those of opaque companies that are largely understood to trace their beneficial ownership back to prominent politically connected figures. While there is almost never a paper trail to confirm such links, investigative journalists, and due diligence enquiries into Turkmenistani entities, routinely find indications among human sources close to the relevant sectors of companies’ beneficial ownership tracing back to prominent individuals, often in the president’s family.[1] There is a distinct lack of will at the highest political level to facilitate foreign investment in an indiscriminate manner, given the competition that this is perceived to pose to the carefully controlled division of state assets and economic sectors among a select few people close to the political centre.

      This aversion to opening up the economy is evidenced by the fact that the period since the downturn that began in late 2014 has been accompanied by no improvement in the multitude of informal barriers to existing and new investment activity. The major structural impediments to a transparent, fair and competitive business environment remain firmly in place.

      Protectionist instincts

      There are relatively few formal barriers to foreign investment activity. However, those that exist markedly affect the country’s most prominent and attractive sector for overseas investment activity, oil and gas. Turkmenistan’s long-standing policy of granting only service contracts to foreign companies for major onshore gas projects is the main example of this approach. More commercially attractive production-sharing agreements (PSAs) are almost always granted only for offshore field development. The only company to have secured an onshore PSA for a major gas field (in 2007) is the state-owned Chinese company China National Petroleum Corporation (CNPC). Two European companies have PSAs for onshore oil fields, but these are minor reserves in the country’s west and represent an anomaly in the broader policy of not granting such contracts.

      The authorities have made no move whatsoever towards relaxing these restrictions in the past few years, despite the fact that it is probably the most obvious way to drive fresh investment and counter the lost revenue from the economic slowdown and loss of key gas export contracts (with the loss of Russia and Iran as customers) since 2015. Instead, the authorities when facing increasing pressure on budget revenues and macro-economic stability show a tendency towards reinforcing protectionist instincts.

      Vested interests and informal requirements create risks for investors

      The handful of laws that set out the terms under which foreign companies can enter into joint ventures with the state are relatively clear and well drafted. However, the top-down nature of decision-making means that legislation generally is enacted without consultation or any formal parliamentary oversight. Its enforcement is highly irregular, and a range of informal practices trump legal provisions.

      Perhaps the best example of this is the enormous informal power understood to be wielded by an opaque body known as the Union of Industrialists and Entrepreneurs (UIE). Lawyers in the country firmly attest to the absence of any legal requirement for prospective investors to be members of – or to liaise with – the UIE to secure investment in the country, and a review of the law confirms no such requirement.

      However, sources on the ground and information from foreign businesses who have approached the Turkmenistan market strongly suggests that membership of the UIE and co-ordination of prospective investment activities with its chair, the influential local businessman Alexander Dadayev, is seen as a de facto requirement in order to gain access to certain contracts or state loans, especially any state tenders. This arrangement allows Dadayev, who is understood to be close to the government and president, to control which foreign entities gain access to the economy, and to exclude them where the authorities wish to reward locally connected companies with contracts or commercial opportunities.

      Corruption

      Both high-level and low-level corruption are pervasive and endemic. They are likely to touch domestic and foreign business alike. The scale of the perceived extent of bribery and graft is captured in Transparency International’s (TI) Corruption Perceptions Index. Turkmenistan is consistently among the worst performing nations surveyed by TI globally, and the worst performing of all the former Soviet states. It has scored between 18 and 20 points since 2015, where 100 points signifies a ‘very clean’ country and 1 a ‘very corrupt’ one. Ranked against 179 other countries in 2018, Turkmenistan came 161st (where first is the country perceived to be the least corrupt).[2] These consistently poor scores highlight the entrenched nature of both high-level and low-level corruption over many years.

      What does this mean for business activity? At the higher level, family ties and political loyalty are the main factors that determine the awarding of contracts. Traditionally privilege and access to commercial opportunities extended to a group of people around the president, appointed to cabinet and other senior state positions, most of whom are not direct relatives of the president. In recent years there are growing indications that Berdimuhamedov’s family are now increasingly in control of many key sectors, and that the elite circle enjoying dividends from the country’s industry is narrowing.[3] In such a climate, foreign businesses without their own nepotistic ties to prominent figures face little chance of securing a contract, regardless of their objective value to the economy or ability to service a requirement.

      At a lower level, companies are likely to find that officials – even up to ministerial level – expect bribes or favours (such as employing their relatives) in return for progress with administrative decisions or the issuing of licences.

      The government made much of a new anti-corruption campaign in 2017 and 2018. However, this served primarily as a smoke screen for politically motivated prosecutions. Corruption among senior officials is likely to be overlooked; those high-profile corruption-related investigations and dismissals that do take place are likely to target individuals who have fallen out of favour with the president. The president’s dismissal in 2017 of the Prosecutor General on corruption charges, alongside public reprimands of the Minister of Interior and other officials on charges of failing to investigate and punish bribe solicitation, are examples of this. Radio Free Europe/Radio Liberty’s Turkmen service reported that anonymous sources had informed it that those individuals had been targeted because the president was frustrated with their failure to attract funds for the Asian Indoor and Martial Arts Games (AIMAG), being hosted in the capital, Ashgabat, later that year. The same sources reported that a number of local businesses people were also arrested after failing to pay informal contributions to the government towards the games.[4] Lower-level officials are prosecuted largely at random, probably by regional officials eager to please the president.

      There is limited prospect of these challenges receding in the next year. Persistent economic difficulties increase the government’s willingness to employ improper tactics to raise budget revenues. Furthermore, endemic corruption is bound up in the highly centralised and authoritarian political system which relies on graft and nepotism. Without some liberalisation of the political environment – of which there is no sign – meaningful efforts to tackle corruption are highly unlikely.

      Restrictions on currency flows

      The economic slowdown has increased the prevalence of capital controls, as the authorities seek to control the movement of currency – both foreign and domestic – in and out the country amid cash flow shortages. These shortages reflect a combination of a reduction in foreign currency revenue linked to the loss of a number of important gas export contracts, and general mismanagement of the banking sector. The restrictions directly affect investors seeking to repatriate profits or move capital. Progressively more onerous capital controls have been introduced since 2015. There is a limit on the amount of US dollars that can be purchased each month and a waiting list system for foreign-currency transactions. There are ongoing restrictions on obtaining Western Union wire transfers. In 2017 and 2018, there were reports of limits on the volume of foreign currency that businesses could convert. The authorities’ failure to communicate or acknowledge publicly any of these restrictions exacerbates the difficulties they pose to business operations.

      Lack of contract sanctity

      There is a persistent, high threat of contract repudiation by the government in dealings with foreign companies. For telecoms companies, for example, this has manifested in the government suspending licences, increasing the state’s share of profits, or simply shutting down infrastructure.[5] A number of Turkish companies have also seen their assets shut down or expropriated in recent years, even while in possession of necessary licences, and without any due process or compensation.

      An associated risk is non-payment, driven by the same systemic and economic problems. There are numerous reported examples of this risk. For example, a Turkish construction company in October 2018 filed a claim with the International Centre for Settlement of Investment Disputes (ICSID) following the authorities’ failure to pay for residential and school building work that the company had performed, while a German company the same month filed a claim over the lack of payment for the construction of grain elevators.[6] International law firm CIS Debt Recovery Solutions in December 2017 told an independent Turkmenistan news outlet that Turkmenistan’s state-owned oil and gas sector was defaulting on its debt, including on US $8.5 million owed to one client for equipment supplied three years earlier.[7]

      Lack of recourse to domestic justice

      A lack of recourse to justice within Turkmenistan compounds these problems. The judiciary does not uphold contract sanctity. Judges are subject to pressure and direction from the executive, and are likely to rule in favour of the government rather than a foreign entity in almost all instances. Furthermore, limited understanding of commercial law undermines their ability to properly judge a commercial dispute.

      Personnel turnover

      Strong personal relationships with influential officials are all but essential in order to engage in business activity in Turkmenistan. However, forming such relationships is significantly complicated by the high degree of turnover in personnel. The president regularly uses government ministries, ministers and agencies as scapegoats for setbacks in the economy or in specific sectors. This tactic typically involves a ministry undergoing a large reshuffle. Rather than improving performance at the ministry in question or driving accountability, personnel changes of this kind serve primarily to deflect attention from the president for the industry’s poor performance. Where ministers are being used as scapegoats, they are typically simply moved into less prominent positions. Only in the rare cases where they have launched a challenge to the president in some form are they likely to be removed entirely from the senior political and public administration scene.

      Furthermore, identifying the relevant department or official responsible for an industry or regulatory regime, obtaining information and maintaining regular contact are all labour-intensive tasks. Government officials are unlikely to provide transparent or consistent reasons for decisions. Officials are frequently reshuffled, and there is little sense of continuity of office; a new minister is liable to scrap deals signed by a predecessor, if only to obtain bribes for replacements. Furthermore, many officials do not have the requisite training, and delays are as likely to arise from incompetence and paralysis in the decision-making process as from corruption.

      Rising reputational concerns

      Pervasive human rights abuses and the lack of any genuine democratic competition create considerable reputational threats that businesses engaging in Turkmenistan should bear in mind.

      Berdimuhamedov’s personality cult, state-funded vanity projects and the country’s poor human rights record have gained more international attention since 2015. The US $7.3 billion Asian and Indoor Martial Arts Games hosted in Ashgabat in September 2017, though intended as a positive advert for the country, increased international awareness and scrutiny of the restrictive political environment and the president’s flamboyant, eccentric behaviour.

      There are also sector-specific threats linked to child labour. The cotton industry is a particular source of reputational threat. The Cotton Campaign, which brings together business associations, companies and NGO groups, has long contended that all cotton production in Turkmenistan involves forced labour. Specifically, cotton farmers must meet state-dictated production quotas under threat of penalty, while state employees are forced to harvest the crop. The Responsible Sourcing Network NGO in June 2018 launched a campaign to encourage an organised boycott of Turkmenistani cotton, similar to a boycott in place against cotton from neighbouring Uzbekistan.[8] 66 companies had signed up to the boycott as of May 2019. Turkmenistan’s cotton is likely to be in the spotlight increasingly over the next two years as Western governments’ attention to supply chain risk continues to grow.

      Conclusion

      In sum, Turkmenistan presents a challenging environment for international businesses. Most of these challenges directly stem from the highly controlled political environment and the predominance of informal approaches to regulation and economic decision-making, features of the landscape that show little sign of lessening in the years ahead.


      Photo by Kalpak Travel, published under Creative Commons with no changes made.

      [1] Freedom House’s 2017 and 2018 Nations in Transit reports on Turkmenistan summarise findings by investigative journalists at the Vienna-based Chronicles of Turkmenistan and Turkmen Yurt TV news outlets that the president’s family controls various sectors of the economy. His nephews, for example, are cited as controlling financial operations, a shopping mall, and Turkmen telecom, the monopoly communications provider, Freedom House, https://freedomhouse.org/report/nations-transit/2018/turkmenistan; https://freedomhouse.org/report/nations-transit/2017/turkmenistan

      [2] Transparency International, Corruption Perceptions Index 2018, https://www.transparency.org/cpi2018

      [3] Ibid.

      [4] Radio Azatlyk, Генпрокурор Халлыев был уволен за невыполнение указа президента собрать деньги на Азиаду (Prosecutor General Khallyev was dismissed for failure to comply with the presidential decree to raise money for the Asian Games), RFE/RL, May 2017, https://rus.azathabar.com/a/prosecutor-fired-for-not-collecting-money-for-Asian-games/28478272.html

      [5] Ad hoc notice by MTS telecoms, July 2018, http://ir.mts.ru/default.aspx?SectionId=5cc5ecae-6c48-4521-a1ad-480e593e4835&LanguageId=1&PressReleaseId=fcc76523-67c3-4438-a430-1a28dc390d44

      [6] SECE İnşaat ve Ticaret A.Ş. v. Turkmenistan (ICSID Case No. ARB/18/34), International Centre for Settlement of Investment Disputes (ICSID), October 2018, https://icsid.worldbank.org/en/Pages/cases/casedetail.aspx?CaseNo=ARB%2f18%2f34; Dirk Herzig as Insolvency Administrator over the Assets of Unionmatex Industrieanlagen GmbH v. Turkmenistan (ICSID Case No. ARB/18/35), ICSID, October 2018, https://icsid.worldbank.org/en/Pages/cases/casedetail.aspx?CaseNo=ARB%2f18%2f35

      [7] Alternative News of Turkmenistan, “В связи с временными трудностями”. ГК “Туркменнефть” 4 года не выплачивает долг в $8,5 млн (“Due to temporary difficulties.” GC “Turkmenneft” 4 years does not pay the debt of $8.5 million), November 2017, https://habartm.org/archives/8016

      [8] Responsible Sourcing Network, The Problem with Turkmen Cotton, May 2019, https://www.sourcingnetwork.org/turkmen-cotton-pledge

      Footnotes
        Related Articles

        A tale of four pipelines: The international politics of Turkmen natural gas

        Article by Dr Luca Anceschi

        A tale of four pipelines: The international politics of Turkmen natural gas

        On 23rd February 2018, the leaders of Turkmenistan and Afghanistan, alongside top government representatives from Pakistan and India, gathered in Herat to inaugurate the Afghan sector of the Turkmenistan-Afghanistan-Pakistan-India [TAPI] natural gas pipeline.[1] This large-scale infrastructure project, to be powered exclusively by Turkmenistan’s reserves, pursued the establishment and eventual integration of a substantive natural gas market connecting partners across the Central/South Asia divide.[2] The advancement of construction works in the pipeline’s Turkmen sector, announced with propagandistic pomp by Turkmenistan’s official media, represented the event that led members from the four governments to meet in Herat to celebrate the opening of a new phase for this project.[3]

        TAPI offers a very telling microcosm to analyse Turkmenistan’s idiosyncratic external relations and their uneasy relationship with the energy policy pursued by the regime headed by Gurbanguly Berdimuhamedov. To date, there is no confirmation that the works in the pipeline’s Turkmen sector have actually started, and no photographic evidence of their advancement can be found; more widely, there is no definitive information on the consortium’s financial viability and profit structure. TAPI is nevertheless presented as a top foreign policy priority by the Turkmen government, which persistently argues about the project’s centrality vis-à-vis Turkmenistan’s energy policy framework.[4] As the Turkmen economy continues to be dominated by the gas sector—which accounted in 2014 for 35 per cent of Turkmenistan’s GDP, 90 per cent of total exports, and 80 per cent of fiscal revenues—the promotion of Turkmenistan’s energy policy agenda has to be seen as a vital component in the viability of the Turkmen economy at large.[5] The virtual nature of TAPI’s progress, in this sense, points to the crystallisation of a fundamental inconsistency within the mechanisms whereby the Turkmen regime endeavours to translate its statements into actual policy.

        This short essay intends to unveil some of the idiosyncrasies that regulate the foreign policy/energy policy nexus in Turkmenistan, arguing that Berdimuhamedov’s perpetuation of rentier economics in Turkmenistan has constrained foreign policy-making to the goal of merely achieving security of energy demand.[6] Turkmen diplomacy became in this sense instrumental to the identification, construction and opening of export routes, with energy infrastructure development emerging as the central international concern of the Turkmen state. The placement of energy policy at the epicentre of the survival agenda of the elites in Ashgabat instigated in turn two destabilising mechanisms, which will be investigated in conjunction here: the enhancement of Turkmenistan’s international isolation on the one hand, and the progressive increase of energy insecurity across the Turkmen territory on the other.

        From Gazprom to CNPC: Turkmenistan’s gas trade between two monopolies                                

        Protracted infrastructural dependency on the centre of the Union of Soviet Socialist Republics (USSR) represented one of the most draining economic legacies that the Soviet dissolution bequeathed to independent Turkmenistan. Independence transformed intra-Union trade into a matter of international affairs: while it presented on the one hand Turkmenistan with a revenue bonanza through the adjustment of Soviet commodity prices to international standards, it continued on the other to enforce Russia’s transit monopoly over the commercialisation of Turkmen gas.[7] Throughout the long presidency of Saparmurat A. Niyazov, who ruled from independence until his sudden death in December 2006, Turkmen gas trade was predominantly conducted through the Central Asia-Centre pipeline, built in the Soviet era to integrate Central Asian gas reserves into the pipeline network of the Ukraine SSR and, most importantly, the Russian Soviet Federative Socialist Republic (RSFSR). The opening of two short pipelines connecting Turkmen fields with Iran—regulated by a wider gas-swap deal—could dilute only in part Gazprom’s control over the terms of Turkmenistan’s gas trade.[8] As part of policies seeking to establish and maintain a relationship of controlled political and economic disentanglement from Russia, the reduction of this transit monopoly represented a key objective pursued by Turkmen diplomacy after the adoption, in December 1995, of a UN-recognised neutral foreign policy course.[9] At domestic level, however, the Niyazov regime ignored the entrenchment of a further dependency, namely that which predicated Turkmenistan’s economy viability on the availability of natural gas revenues. Throughout the 1990s and until the death of Turkmenistan’s first president, the regime in Ashgabat failed to introduce any meaningful reform to domestic production structures, cementing even further the rentier nature of Turkmenistan’s post-Soviet economy.

        The early Berdimuhamedov era saw the operationalisation of a major natural gas pipeline connecting the Bagtyýarlyk contract area in eastern Turkmenistan with the Xinjiang Uygur Autonomous Region in western China, and then onto the Chinese gas pipeline network. There are two immediate features that identify the completion of this pipeline—entered into line in December 2009—as an important watershed in the development of Eurasian gas trade. To begin with, the Central Asia-China pipeline has to be seen as the first large-scale infrastructural project completed in the post-Soviet era that challenged Gazprom’s monopoly over the transit of Eurasian gas.[10] Secondly, its ownership structure, in which China National Petroleum Company (CNPC) acquired upstream stakes in the Bagtyýarlyk contract area, innovated on the Turkmen energy practice inasmuch as it allowed, for the first time since independence, the participation of a foreign energy company in the development of Turkmenistan’s onshore gas reserves.[11]

        In the medium-term, however, the entry into line of this pipeline substituted Turkmenistan’s over-reliance on Russian gas purchases with an even more damaging dependency framework, wherein gas trade with China rose to become the single most important entry in the whole Turkmen stage budget. Gazprom’s withdrawal from the Central Asian gas market—underpinned by ongoing price disputes with local partners and, most importantly, the rise of China as a key customer for the Russian company—and the periodic instability that characterised its energy ties with Iran, left China as Turkmenistan’s de facto only gas customer. The consistently monopsonistic nature of Turkmenistan’s natural gas trade is captured graphically by the following figure, which illustrates the transition from nearly total dependency on Russian purchases (87.2 per cent of overall quotas traded in 2009) to reliance on energy commerce with China, which amounted to a staggering 94.6 per cent of total gas traded by Turkmenistan in 2018.[12]

        The unsustainability of the commercial outlook evidenced in the figure becomes even more apparent when considering the legislative framework regulating Sino-Turkmen gas trade. As part of the produce-or-pay agreement finalised in the late 2000s, Turkmenistan was committed to direct to China increasingly substantive gas quotas at heavily discounted prices, in order to repay the US$10 billion debt it contracted during the construction works of the Central Asia-China pipeline.[13] The figure suggests that gas trade with China increased ten times in absolute size between 2010 and 2018, while total volumes of gas exported by Turkmenistan decreased rather significantly throughout the same timeframe. In this context, Turkmenistan economic viability became the function of its trade with China.

        The logic of debt repayment, as a consequence, pushed the Turkmen economy on the brink of collapse, as confirmed by media reports of periodic eruption of food insecurity across the Turkmen territory, the continuous restructure of the Turkmen public sector and, most importantly, the termination of the generous system of state subsidies in place since the Niyazov era.[14]

        A combination of short-term (allow onshore exploration rights to foreign companies) or longer-term (economic diversification away from hydrocarbons) measures is required to alter Turkmenistan’s current economic predicament. However, the Berdimuhamedov regime is refusing to even consider these alternatives: Turkmenistan’s crisis can in this sense be addressed through unimaginative solutions, which all connect to one economic mantra: selling more gas through more export routes.

        TCGP and TAPI: The future of Turkmenistan’s gas exports between myth and reality                           

        As the Berdimuhamedov regime proved to be impervious to the logic of economic opening intrinsic to globalisation and, most notably, continued to manage in absolutely not transparent fashion its revenues flows—the Turkmen government has not established a sovereign wealth fund to administer the capital derived from energy exports—the rudimentary version of rentier economics crystallised in Turkmenistan proved essential to ensure regime stability at a time of economic crisis.[15]

        There is therefore very limited prospect for a concerted abandonment of rentier economic strategies in Turkmenistan; the construction of new pipelines has to be regarded in this sense as an inevitable development to ensure Turkmenistan’s economic survival in the short run. At the time of writing, the Berdimuhamedov regime has reportedly committed to explore two possible routes to expand the export options available to the Turkmen natural gas industry: either connecting Turkmenistan with Western markets through the construction of a trans-Caspian pipeline or, alternatively, reaching out to customers located in the Indian subcontinent through the operationalisation of the TAPI pipeline project.

        Despite its size and expected export capacity, TAPI remains a virtual pipeline, the relevance of which seems to be exclusively linked to its discursive importance rather than to the effective contribution it can make to trans-regional energy trade.[16] Notwithstanding its limited financial resources and marginal experience in the management of mega-projects, Türkmengaz—Turkmenistan’s natural gas state concern—emerged in 2015 as the leader of the consortium established to deliver TAPI.[17] Türkmengaz’s limited input into project delivery has so far impeded the identification of financial backers for the very expensive pipeline and, most notably, resulted in a series of logistic blunders associated with the completion of the Turkmen sector of the pipeline project.[18]

        The finalisation of the Convention on the Legal Status of the Caspian Sea in August 2018 injected new life in a series of infrastructure projects intending to export natural gas extracted in Turkmenistan to European markets. Robert Cutler correctly remarked that the current iteration of the Trans-Caspian Gas Pipeline (TCGP) project seems to be somewhat more feasible than its predecessor.[19] The current consortium has recognised that this pipeline—the financial suitability of which does however remain elusive to say the least—will not be producer-built due to Turkmenistan’s refusal to offer production-sharing  agreements’ (PSA) rights to onshore developments and that the TCGP demand structure needs to be re-modulated through the identification of two access points for Turkmen gas. The new legislative environment set up by the 2018 Convention reduced some of the obstacles that so far obstructed the advancement of cooperation between Turkmenistan and Azerbaijan vis-à-vis the construction of a trans-Caspian pipeline.[20] At the same time, however, the convention subjected the ultimate advancement of any shared project to any environmental concern expressed by the other Caspian states.[21] The Russian Federation, in this sense, may continue to have a final say over trans-Caspian gas transit.

        As the preservation of Turkmen authoritarianism continues to be predicated upon the persistence of rentier economics, the state’s economic foreign policy will continue to be linked, at least in the immediate future, with the identification of new export routes for Turkmen gas. Reconciling the foreign policy priorities of a regime that has so far thrived on isolationism with the economic imperatives of an autarkic state poorly integrated with the global economy has to be in this sense as the most daunting challenge faced by Gurbanguly Berdimuhamedov and his associates.  


        Photo by Peretz Partensky, published under Creative Commons with no changes made.

        [1] Bruce Pannier, Afghan TAPI Construction Kicks Off, But Pipeline Questions Still Unresolved, Qishloq Ovozi Blog, RFE/RL, February 2018, https://www.rferl.org/a/qishloq-ovozi-tapi-pipeine-afghanistan-launch/29059433.html

        [2] For a comprehensive look at size, location, and exportability of Turkmenistan’s gas reserves—currently regarded as the fourth largest in the world—see: Marika Karagianni, Turkmenistan looks to gas expansion, Petroleum Economist, February 2019, https://www.petroleum-economist.com/articles/politics-economics/middle-east/2019/turkmenistan-looks-to-gas-expansion

        [3] See, for instance, the report on the TAPI Steering Committee meeting held in Mary (Turkmenistan) in early 2018, in which the participant congratulated Turkmenistan in the advancement of the construction works in its own sector, V Mary sostoyalos’ zasedanie Rukovodyashchego Komiteta po proekty gazoprovoda TAPI, Turkmenistan Segodnya, February 2018, http://tdh.gov.tm/news/articles.aspx&article11441&cat14

        [4] See for instance, Turkmenistan uchastok TAPI postroyat za dva goda (Turkmen section TAPI will be built in 2 years), Türkmenistanyň Nebitgaz, November 2015, http://www.oilgas.gov.tm/blog/40/

        [5] World Bank, Turkmenistan Partnership Program Snapshot, April 2015, http://documents.worldbank.org/curated/en/904321485161087742/World-Bank-Group-Turkmenistan-partnership-program-snapshot

        [6] In Hossein Mahdavy’s classic definition, rentier economies ‘receive on a regular basis substantial amounts of external rents […] paid by foreign governments, concerns or individuals’ (Patterns and Problems of Economic Development in Rentier States: The Case of Iran. In: Cook, M.A. (ed.) Studies in the Economic History of the Middle East. London: Routledge 1970, p. 428). In addition to the externality of the rent, it is the modality of its domestic use that characterises this typology of economic structure. Hazem Beblawi identifies the government and its ancillary institutions of a rentier state as the principal recipient of the external rent (‘The Rentier State in the Arab World’. Arab Studies Quarterly 9 (4) 1987: 385). While no currently existing state presents all the features included in scholarly description of the rentier model, post-Soviet Turkmenistan represents a particularly relevant case of post-Soviet rentierism. Its economic development has been shaped by a visibly rentier logic, heavily dependent on the rent generated by natural gas controlled kleptocratically by the regime in Ashgabat and featuring at the same time an over-inflated public sector and, until a few years ago, an extensive system of subsidies for the larger population.

        [7] Tarr, David G. 1994. The terms-of-trade effects of moving to world prices on countries of the Former Soviet Union’. Journal of Comparative Economics 18 (1): 1-24.

        [8] Brill Olcott, Martha. 2006. International gas trade in Central Asia: Turkmenistan, Iran, Russia and Afghanistan. In Victor, David G., Jaffe, Amy M. and Hayes, Mark H. (eds.): Natural Gas and Geopolitics from 1970 to 2040. Cambridge: Cambridge University Press, pp. 202-33.

        [9] Anceschi, Luca. 2009. Turkmenistan’ Foreign Policy. Positive Neutrality and the Consolidation of the Turkmen Regime. Abingdon: Routledge.

        [10] For more on Russia-Turkmen energy relations, see: Øverland, Indra. 2009. Natural Gas and Russia–Turkmenistan Relations. Russian Analytical Digest, 56.

        [11] Emirati energy company Dragon Oil has long explored, under PSA conditions, numerous gas fields, part of the Cheleken contract area, in the Turkmen sector of the Caspian Sea.

        [12] Data for the 2006-2016 series replicate those illustrated in my 2017 Central Asian Survey article (see footnote 17 below). Data for 2017 and 2018 are taken from the 67th and 68th editions of the BP Statistical Review of World Energy, respectively published in 2018 and 2019.

        [13] Kuchins, Andrew, Mankoff, Jeffrey and Backes, Oliver, 2015. Central Asia in a Reconnecting Eurasia – Turkmenistan’s Evolving Foreign Economic and Security Interest. Washington, DC: CSIS Report, p. 13.

        [14] Ryskeldi Satke, Understanding Turkmenistan’s Food Shortages, The Diplomat, December 2018, https://thediplomat.com/2018/12/understanding-turkmenistans-food-shortages/; Turkmenistan: Economy, Finance Ministries Merged to Save Money, Eurasianet, October 2017,  https://eurasianet.org/turkmenistan-economy-finance-ministries-merged-to-save-money; Turkmenistan combines transport ministries, Railway Gazette, February 2019, https://www.railwaygazette.com/news/news/asia/single-view/view/turkmenistan-combines-transport-ministries.html; Turkmenistan Cuts Last Vestiges of Program for Free Utilities, RFE/RL, September 2018, https://www.rferl.org/a/turkmenistan-cuts-last-vestiges-of-program-for-free-utilities/29511308.html

        [15] An interesting discussion of current modalities of rentier economic development is presented in: Gray, Matthew. 2011. A Theory of “Late Rentierism”in the Arab States of the Gulf. Center for International and Regional Studies Occasional Paper 7, Georgetown University School of Foreign Service.

        [16] The TAPI pipeline—with an estimated total cost of US$ 10 billion— is expected to carry annually no fewer than 33 billion cubic meters (bcm) of natural gas over a 1078 km route. All of the project’s gas is to be supplied by the Galkynysh field (south-east Turkmenistan), with a distribution of volumes traded determined as follows: Afghanistan will buy 0.5–1.5 bcm per year, while India and Pakistan will each receive annual volumes of 14–16 bcm; Anceschi, Luca. 2017. Turkmenistan and the virtual politics of Eurasian energy: the case of the TAPI pipeline project. Central Asian Survey 36 (4): 409-29.

        [17] Micha’el Tanchum, Turkmenistan Pushes Ahead on TAPI Pipeline, The Diplomat, September 2015, https://thediplomat.com/2015/09/turkmenistan-pushes-ahead-on-tapi-pipeline/

        [18] Bruce Pannier, Analysis: TAPI and other Turkmen Tales, Qishloq Ovozi Blog, RFE/RL, December 2018, https://www.rferl.org/a/tapi-turkmen-tales-pipeline-qishloq-ovozi-pannier/29632356.html

        [19] Robert Cutler, Third time lucky for Trans-Caspian Gas Pipeline?, Petroleum Economist, June 2019, https://www.petroleum-economist.com/articles/politics-economics/europe-eurasia/2019/third-time-lucky-for-trans-caspian-gas-pipeline

        [20] For the document’s full text, see: Convention on the Legal Status of the Caspian Sea http://en.kremlin.ru/supplement/5328

        [21] Anceschi, Luca. 2019. Caspian Energy in the Aftermath of the 2018 Convention: The View from Kazakhstan and Turkmenistan. Russian Analytical Digest, N° 235.

        Footnotes
          Related Articles

          Conclusions and recommendations

          Article by Adam Hug

          Conclusions and recommendations

          This report has shown Turkmenistan to be a country teetering on the edge of catastrophe. An obsession with appearance that speaks to a need for public display and regimented control, masking and managing a regime under enormous pressure as years of economic turmoil place unprecedented strain on a rigid but potentially brittle political structure. Hunger and hyper-inflation are being managed by further increasing the scale of human rights abuse and the level of intrusion into people’s lives.

          Investors may be initially attracted to Turkmenistan due to its enormous gas wealth but as the EBRD, the UK Department of International Trade and many others have noted it has huge structural challenges. It is to some extent a ‘Potemkin economy’, with marble facades, respectable GDP figures and a tightly regulated state shops, masking a huge and chaotic black market economy. Potential investors face a range of risks including: the political whims of the President, leading to arbitrary behaviour by a sclerotic bureaucracy whose rotating cast of officials live in fear of displeasing the leader; a high risk of non-payment for goods or services rendered; endemic corruption; insecurity of legal title or contracts; the lack of rule of law and independent judiciary; and reputational risks from being associated with severe human rights abuses and the use of forced labour. At the very least this should give investors cause to pause and, even if they are unwilling to rethink their investment, it should be seen as a necessity to carry out thorough due diligence into any local partners in Turkmenistan to reduce exposure to expropriation and corruption risks. While the international community itself has been slow to implement necessary transparency initiatives, such as the EU’s Fourth Anti-Money Laundering Directive or the UK’s Beneficial Ownership Register, if Turkmenistan is serious about wanting to attract international investment it should take steps to create clarity about the ownership of its domestic firms to improve the investment environment. In the absence of effective domestic remedies Turkmenistan will need to demonstrate it is complying with the provisions of the bilateral and international investment treaties it is a signatory to.

          Turkmenistan’s relative isolation and economic reliance on China and Russia have led some to despair over the lack of influence and leverage that can be brought to bear with the regime to improve the human rights situation. While this position clearly sets some limits on the scope of international influence it must not be a reason not to try to achieve change, not least given that the current economic turmoil means that Turkmenistan is looking for international sources of revenue more than ever before, creating new opportunities for engagement on a ‘more for more’ and ‘less for less’ basis. As a number of civil society organisations have argued the new European Parliament human rights benchmarks provide a helpful basis on which to measure and test engagement with Turkmenistan.[1] As this research has set out Turkmenistan’s human rights challenges are multitude but there are clear areas to focus on, including forced labour, ‘disappeared’ activists in the prison system, prison conditions in general and restrictions on independent journalists and human rights activists. Turkmenistan needs to do more to facilitate access by UN Special Rapporteurs and other UN mechanisms, the most recent of which was in 2009, and to enable representatives of international NGOs to obtain visas to visit the country. It needs to do more to show that it is complying with its UN treaty obligations on human rights.[2]

          International engagement with Turkmenistan’s carefully curated NGOs, education and health institutions can have a place but it must not be misconstrued or spun as an example of increased openness or progress. It is a transaction that may help provide a tangible benefit to a group of people in Turkmenistan but it is unlikely to be a tool to diffuse democratic values or encourage systemic reform. There remains a case, except in areas that deliver directly to the welfare of the people of Turkmenistan, for reconsidering projects pending (or making them conditional on) improvements in human rights and/or refocusing funding to other countries in the wider region that are making progress. The international community should avoid engagement for engagement’s sake as while contact can make minor differences to individual behaviour around the margins it can seek to normalise authoritarian practice rather than achieving long-term systemic change. To use an analogy, even though glaciers can bring down mountains that doesn’t mean that they are the most efficient means of doing so or that they are the most effective use of water. So without tangible improvements in current behaviour by the government, the international community should re-evaluate its existing interactions with Turkmenistan.

          For example the UK needs to consider the appropriateness of its most high profile engagements with one of the most authoritarian regimes on earth being overwhelmingly trade focused. It should look again at the suitability of designating Turkmenistan one of the 56 countries to which it has a formal trade envoy. It could examine whether the Turkmenistan-UK Trade & Industry Council (TUKTIC) should still be a country priority given both the human rights and economic situation in the country, the risks posed to investors and the limits such a business first approach creates for the UK’s ability to push for real reforms alongside European and other international colleagues.

          In part, beyond the remit of this publication, there is a strong case that the EBRD should refocus its lending to the countries in the region that are at least trying to abide by the criteria set out in Article 1 of the bank’s founding charter, which calls on it to only work with ‘Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics’.[3] If this is to mean anything  there has to be a clear demonstration of the difference between how Turkmenistan is treated and those who are at least taking some steps towards democracy. The current revision of the EBRD’s country strategy provides an opportunity to achieve this differentiation. As with other organisations the EBRD should apply the EU Parliament benchmarks to its approach to engagement with Turkmenistan. It should resist plans to expand its lending to certain areas of the public sector, given the state of repression and the ubiquity of forced labour amongst public sector and state enterprise workers.

          The forced labour situation in the cotton sector needs sustained pressure and independent monitoring. If a robust mandate can be agreed between the ILO and Turkmenistan then the ILO establishing a presence on the ground in Turkmenistan should be supported in order to map and monitor the scale of forced labour and to take action to prevent it. Establishing a strongly mandated ILO presence should be one of the primary requirements for international community engagement with Turkmenistan.

          One area for potential additional engagement with Turkmenistan that should not undermine the objectives set out above would be in the provision of or access to food, in the relatively unlikely scenario that the regime was able to admit that there was a problem. There may be scope for additional support by the UN’s World Food Programme and the Food and Agriculture Organization, as well as other international assistance, to prevent the spread of hunger and malnutrition in the country.

          While the range of potential issues to address is vast there are a number of specific recommendations that can be made to assist in urgently improving the situation in Turkmenistan.

          Recommendations to the Government of Turkmenistan:

          • Notify all families about the condition of their imprisoned loved ones and allow visitor access
          • Free political prisoners and jailed journalists
          • Improve prison conditions and end the use of torture in the detention system
          • End forced labour in the cotton harvest and allow independent monitoring
          • Allow visa access by UN Special Rapporteurs and other UN mandate holders, as well as representatives of international NGOs
          • Take steps to improve transparency around company ownership
          • Enhance judicial independence in the criminal and commercial sector, while honouring its international treaty obligations  

          Recommendations to the international community:

          • Ensure the EU adopts and applies the European Parliament human rights benchmarks for Turkmenistan
          • Require the EBRD’s lending to Turkmenistan to reflect the need to improve human rights and avoid expansion to the public sector in the absence of genuine reforms
          • Push for an ILO presence in Turkmenistan with a strong mandate to tackle forced labour
          • Reconsider international trade promotion efforts to Turkmenistan, such as the UK’s TUKTIC trade missions
          • Support access to asylum and other forms of exile for activists and their families fleeing persecution by Turkmenistan’s regime

          Photo by Peretz Partensky, published under Creative Commons with no changes made.

          [1] IPHR, The EU adopts important benchmarks, as repression continues in Turkmenistan, May 2019, https://www.iphronline.org/the-eu-adopts-important-benchmarks-as-repression-continues-in-turkmenistan.html. and the European Parliament resolution of 12 March 2019 on the draft Council and Commission decision on the conclusion by the European Union and the European Atomic Energy Community of the Partnership and Cooperation Agreement establishing a Partnership between the European Communities and their Member States, of the one part, and Turkmenistan, of the other part (12183/1/2011 – C8-0059/2015 – 1998/0031R(NLE)), http://www.europarl.europa.eu/doceo/document/TA-8-2019-0146_EN.html?redirect

          [2] UN Human Rights, Turkmenistan,  https://www.ohchr.org/EN/Countries/ENACARegion/Pages/TMIndex.aspx; It has ratified 13 UN treaties and optional protocols as set out here at the UN Treaty Database https://tbinternet.ohchr.org/_layouts/15/TreatyBodyExternal/Treaty.aspx?CountryID=180&Lang=EN

          [3] EBRD, Political Aspects of the Mandate of the European Bank for Reconstruction and Development,  https://www.ebrd.com/downloads/about/aspects.pdf

          Footnotes
            Related Articles

            How realpolitik and the predictability of the West’s weaknesses helps autocrats legitimise their foreign policies

            Article by Dr Leila Alieva

            June 5, 2019

            How realpolitik and the predictability of the West’s weaknesses helps autocrats legitimise their foreign policies

            With democracy and liberalism in decline, and pro-active autocrats dominating the international community, the resilience of the political models based on democratic principles, human rights and freedoms is increasingly being tested. The external threats posed by powers like Russia, coupled with domestic political trends of xenophobia and illiberalism manifesting in growing far right movements, are threatening democratic institutions and values, such as freedom of expression.  Instead of being met with unity these challenges are faced with fractious responses from the Euro-Atlantic states, with Brexit being a prime example of this fault lined response. These responses are leading many democratic sceptics and passive conformists with autocratic regimes to justify their positions by asking: if, in this current international landscape, there is a difference between Russia and the Western powers when it comes to their foreign policies? Between the recent foreign policy actions of Europe and the United States (US) and the news shared about them, ‘true’ and ‘fake’, on the digital informational space, including social networks, how can the Euro-Atlantic states preserve their democratic political models? And, whilst doing so, also delegitimise autocrats’ foreign policies?

            In our more interrelated, globalised and ‘transparent’ world, people are better informed, or better misinformed, and they can judge on issues which were previously hidden. This is particularly evident about the foreign policies adopted by different states. Wherein domestic policies can still be strongly influenced by ‘fake news’ and autocratic regimes internal propaganda mechanisms, states’ foreign policies are more open to scrutiny. A higher level of public observation reveals the domination of realpolitik to a wider audience. A term created by Ludwig von Rochau, ‘realpolitik’ is deemed to be ‘the law of power [that] governs the world of states just as the law of gravity governs the physical world’. [1]

            The logic behind realpolitik is that foreign policies are driven by the interests or pragmatism of the state, or a group of states and alliances, rather than idealistic, value-driven considerations. However, at this stage of global interconnectedness the values and interests of a state, or group of states, are not easily separated and the survival of states’ democratic political systems and identities are increasing linked to how they conduct themselves in relation to other states. The contemporary threats to states, and/or a group of states, range from traditional hard power threats to the soft power ones of autocratic states, such as ‘fake news’, propaganda, corruption, etc. The latter threats require even greater attention, as they may be less tangible, but are in no way less aggressive in nature. And most importantly – the autocrats can and do promote them pro-actively.

            Despite the risks to democratic states’ systems there is a prevalence of realpolitik today, which aids autocrats in justifying their adjustments’ not to the liberal order and formal international law, but to the rules of the powerful and self-interest. Putin sees this dynamic clearly. He does not believe in the ‘value-driven’ policies promulgated by the Western states, but views the world in purely realpolitik terms.

            As he perceives it, Putin is ‘copying’ the West by getting involved in various geographic areas; to either establish Russia’s military presence, help incumbent regimes, use secessionist conflicts to preserve Russia’s influence, establish its peacekeeping forces or border troops, or dragging states, where possible, into the Russia-led regional organisations.  

            In this venture he tries to drag the West into ‘power’ competitions for influence on his own terms and in his understanding. The involvement of the established democracies in such cases would also look natural – for example, the small states in Russia’s underbelly cannot protect themselves and need external assistance. Putin knew, for instance, that once he was in Ukraine, he would get the West’s attention and he would get NATO advancements in response. By creating a vicious circle of increasing Western involvement in a competition governed by the ‘rules of the powerful’, it gives him greater legitimisation of his own policies. Since the annexation of Crimea, all international crisis ridden areas like Syria or Venezuela have served his justification of realpolitik, while at the same time increasing his domestic grip on power. Moreover, the annexation of Crimea increased sensitivities in the Baltic States, especially in their reactions to Russia’s war games, Zapad, in 2017, which led to them urging NATO’s unity in response.

            The West’s engagement with Putin gives him yet another argument to those who sees no difference between the two’s foreign policy agendas; these agendas being defined as cynical neo-colonialist policies that act in accordance to the idea of divisions of spheres of influence. In the case of Crimea, it was Putin’s argument that the US, not the people, made the coup d’états in Ukraine that overturned the state’s corrupt leader which ‘legitimised’ his own involvement in Donetsk, or annexation of Crimea. This perception of the West’s realpolitik – with or without a foundation – was perfectly described by Hill in his recent publication, reviewed by Thomas De Waal. [2]

            The former secretary general of NATO, Rasmussen last year stated that not granting MAP to Georgia and Ukraine in 2008 was a mistake. [3] In fact, the hesitance of the Western organisations and states to respond positively to the expressed interest of the small states near Russia has been often driven by the same logic – ‘we respect the sphere of influence of Russia and do not want to irritate it by getting too close’. This was the case with the European Neighbourhood Policy, and then later with the Eastern Partnership (EaP) program, where the perspective of membership has never been stated in the European Union (EU) documents. At the 10th anniversary of the EaP the uneven result thus was noted. While the partnership and association agreements were signed with four of the six states, the most impressive achievements so far where in the area of trade and people-to-people contacts, leaving the areas of deep and substantial reforms behind. This led to the missed opportunities for the West and emboldened the behaviour of Russia in the region.

            But the West can turn a ‘military victory’ by Putin into a moral defeat, by behaving contrary to his expectations – depriving him of status and attention, and offering the societies a way to reach a better political model. This may express itself in addressing the structural obstacles to reform within the EaP states, such as the Soviet institutional legacies, weakness of post-colonial institutions, political economy of rentier states, lack of sense of interdependency blocking development of common strategy, and tactics in countering external threats and conducting domestic reforms; thus contributing to building of their resilience to the threats.

            On the other hand, as Arjun Appadurai stresses, there is a tension between the logic of the ‘state’ and the ‘globalised world’. [4] Indeed, there are clearly processes, which can be contained within, and by, the state, and at the same time those which transcend borders.

            The reactive policies and responses to the international challenges deprive democratic states of the capacity to project their own qualitatively different ‘power’. Diplomatically, the West loses opportunities to outsmart the autocrats, by being dragged into the hard power competitions and races for influence. In fact, the unity of Europe and the US in application of sanctions against Russia in the face of the Ukrainian conflict, is already outsmarting the autocrats, who are anticipating their capacity to split the West due to its pragmatism, vested interests and realpolitik. The political and moral effects of unity and consistency of the Euro-Atlantic community in reaction to Russia’s policy in Ukraine is in fact even more important than the economic ones, as it sends the signal that Putin miscalculated. Yet, the recent tweets by Trump that “getting along with Russia is a good thing” might undermine the perception of consistency. [5] The unity demonstrated in the case of Ukraine can, and should, still be achieved in other cases to show the autocrats the ‘red lines’ when breaking the norms.

            Autocrats do not get confused by the complexities of international relations, as in their dealings with external actors they rely on structural predictability of behaviour and the priorities of the politicians, which they learnt quickly. They rely on peculiarities of pragmatism, which they utilise as weakness, when cracking the unity in the Western position and foreign policies by offering lucrative interests.

            Most importantly, being dragged into power competitions, particularly in the field of hard power, in various geographic areas with autocrats at this stage of international relations undermines democratic states positions and values. By trying to replace ‘patrons’, and ‘recognising legitimate sphere of interests/or influence of Russia’ the established democracies devalue the sense of independence and the interdependency of those states under threat, diminishing their sense of responsibility in sorting out relations in the region through cooperation and boosting their own power. 

            So the demand and the peculiarity of this stage of international relations would require not making Russia arm itself in competition, but rather ‘disarm’, both figuratively and literally. By offering unusual solutions and unexpected responses by Western powers this can be achieved, such as through unity of action, encouraging greater normative behaviour, and depriving the ‘winner’ of the rewards in getting its share of influence and control in contested parts of the world through the use of hard power. Another potential solution is to help Russia identify its possible value added contribution in helping the states to consolidate their independence rather than establish and enforce its influence over them.

            These solutions and approaches require a serious reconsideration of the nature and substance of power, and the ways in which to recognise it in the system of international relations in the contemporary world. In a reconsidered world order, one would see the smaller states as equal to the big states, where their will and voice is equally respected in practice, and their power is not in the size of territory or military forces but in their capacity to be creative and develop effective and environmentally sound technologies, or to develop high culture and comfortable conditions for human lives. In the current world order, the small states can boost their power vis-à-vis the ambitions of, and non-compliance with, the liberal order powers via various measures – either by joining the existing unions or creating regional alliances to counteract the attempts of regional powers to dominate their sovereignty. But at the same time this world order is where the political trends are not contained within the national borders, and become a universal competition between – illiberalism and liberalism, xenophobic and exclusion versus open-mindedness and inclusion, authoritarian versus democratic, kleptocracy versus transparency.

            What can the West do? The most reliable way is to restore its role as a normative power, or be more consistent and clear in its value-driven policies. As the Belarussian opposition leader in exile Andrei Sannikov recently noted in a Facebook post before the presidential elections in Ukraine: “By inviting both Ukrainian presidential candidates to Paris, Macron stressed an importance of the election itself, rather than the specific candidate, thus teaching a lesson to Russia.” [6]

            It is important not to justify the ‘predictability’ of the West’s behaviour by compromising on this goal for the sake of pragmatic interests, but rather demonstrate integrity, unity and consistency. Listed are various suggestions to demonstrate thus:

            • The West’s policies should be pro-active rather than reactive, as it happened with opening the doors for Eastern and Central Europe along with Baltic republics in the post-cold war period through EU and NATO enlargement. While not suggesting the membership option for the other former Soviet Union (FSU) states was a missed chance, the early direct support for civil society in Georgia, Ukraine and various other states of the FSU has prepared a foundation for future reforms.   
            • The substance of these policies should be an alternative to the autocrats’ policies – contrary to autocrats intimidating – supporting and strengthening the state’s independent decision-making by supporting the institutions rather than particular forces. In areas torn by conflict, such as the South Caucasus, where the Nagorno-Karabakh (NK) conflict is the major dividing one in the region, promoting a sense of interdependency through awareness of individual responsibility for creating a safe and friendly environment, and respect for international norms should be encouraged. The geopolitical agendas, such as energy resources, should not influence the integrity of assessment of standards of democracy in rentier and oil rich states.
            • Normative certainty should be brought to the ‘grey’ areas, such as those dominated by secessionist conflicts, where international law is being violated, but no consequences are followed or enforced. By avoiding an immediate imposition of sanctions against the violators of the international borders, regardless of who they are, in both the NK and Georgian conflicts the West did not act as the normative power. Moreover in case of the NK conflict, one of the participants of the conflict, Russia, was awarded the co-chairman’s position in the mediating process, not with immediate sanctions for violating Georgia’s borders. Similarly, the Minsk Process is characterised by normative uncertainty, leaving the sides to negotiate according to their perceived bargaining powers.
            • Support for regional organisations, initiated by the states themselves. One such example was GUAM, Georgia, Ukraine, Azerbaijan and Moldova for Democracy and Economic Development, which had an appealing concept at the core of it – the development of norms of relations between the states, but which did not get the deserved attention and recognition of the West.
            • The West needs to use more actively the attractive power of its democratic model, which has a universal nature and can appeal to people’s hearts and minds, including those under the rule of autocrats. The power of links was proved in the case of Ukraine and Armenia, where communication with the West through visa liberalisation and Diasporas fuelled the motivation to conduct changes in these states.
            • Western powers need to be united in application of all measures enforcing international law and responsible behaviour. This may be achieved regionally through greater inclusion of the European neighbours into the debates related to European affairs and its future, as they will bring external perspectives on the consequences of a weaker and disunited Europe, which is currently visibly lacking in the ongoing debates about the future of Europe and (liberal) democracy.

            Dr Leila Alieva is a Senior Common Room member of St. Antony’s College at Oxford University, where she previously was an academic visitor and a fellow of Council for At-Risk Academics (CARA)/Scholars Rescue Fund (SRF). In 2018 she was a research fellow at the Institute Fur Kulturwissenschaften (IFK) in Vienna, Austria. Until 2014 she was founder and President of the independent policy research/ think tank the Center for National and International Studies in Baku. Since late 80s her research focus was on conflict analysis and resolution, as well as area studies – Azerbaijan, Caucasus, Former Soviet Union; Russia, as well as energy security, democratization and civil society in the oil rich states, regional and EU and NATO integration. She has been a resident research associate at a range of different institutions including the Russia and Eurasia Center at Uppsala University, the NATO Defense College (NDC) and the National Endowment for Democracy.

            Photo by Patrick Gruban, published under Creative Commons with no changes made.

            [1] William Hooke, Living on the Real World: the ultimate realpolitik, Living on the Real World, December 2016, https://www.livingontherealworld.org/living-on-the-real-world-the-ultimate-realpolitik/

            [2] Thomas De Waal, Book Review: No Place for Russia – What would it take to make Russia more comfortable with its neighbours, the EU, and NATO?, Carnegie Europe, January 2019, https://carnegieeurope.eu/strategiceurope/78229

            [3] First Channel News, Anders Fogh Rasmussen: NATO sent @the wrong signal@ to Vladimir Putin by not granting Georgia and Ukraine Map in 2008, First Channel, November 2018,https://1tv.ge/en/news/anders-fogh-rasmussen-nato-sent-wrong-signal-vladimir-putin-not-granting-georgia-ukraine-map-2008/

            [4] Appadurai, A. 1990. Disjuncture and Difference in the Global Cultural Economy. Theory, Culture & Society7(2), 295-310

            [5] Donald J. Trump, Twitter thread of May 3rd 2019, https://twitter.com/realDonaldTrump/status/1124359594418032640  

            [6] Andrei Sannikov, Facebook status of April 12th 2019, https://www.facebook.com/photo.php?fbid=2465489470182711&set=pcb.2465489730182685&type=3&__tn__=HH-R&eid=ARDyAmq9TEBMPLzihLplKtRSEkd2b0RjWYdxRyTFULGXFiL-MigvgM74QxfTX5rMJpOude_Wwznl-Pix

            Footnotes
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              International Affairs in the Disinformation Age

              Article by Amil Khan

              May 31, 2019

              International Affairs in the Disinformation Age

              In April 2017, I was sitting in an office with Syrian rights activists watching, in real time, as the Syrian regime and Russia manipulated a second US president.

              The current discussion about disinformation is focused very firmly on Trump’s election and the Brexit referendum. As critical as both issues are to the future of international stability, the emotion vested in both topics obscures rather than illuminates the impact disinformation has on the way influence is being wielded on the global stage.

              Somewhere between the United States (US)-led invasion of Iraq and the Arab uprisings against dictatorial rule, something fundamental in the way global audiences receive and react to information changed. Political insurgents had long been watching, waiting for a chance to challenge the established power of their enemies. Ayman al-Zawahiri, Al Qaeda’s number two at the time, famously declared in the early years of the 21st century that “more than half of this battle is taking place in the battlefield of the media”. [1] As a Middle East reporter, I saw the effort the group put into trying to circumvent traditional media and reach its intended audiences directly. 

              Russia had also been watching. From 2013 to 2017, I worked with Syrian activists hoping to remove the corrupt and abusive regime in Damascus. My time working on Syria was bookended by highly sophisticated disinformation campaigns that melded diplomatic, media and military activity in order to achieve real-world outcomes. Examining the techniques used by Russia (and adopted by other actors since) raises questions about the measures policy makers are hoping will return us to a simpler era.

              The two most sophisticated Russian disinformation operations I observed came in response to the Damascus regime’s use of chemical weapons against civilians. Russia’s efforts in both cases is not surprising when you consider that the Kremlin’s investment in the Assad regime was most seriously threatened – not by the military or political efforts of its adversaries – but by international blowback to its ally’s use of poison gas.

              Between 2013 and 2017, Russia had hugely developed its techniques in line with changes in the global media environment. Earlier efforts focused on manipulating established media outlets, or at least leaning on their credibility, while the later campaign largely bypassed established media in favour of fringe outlets and social media networks. In both cases, however, the underlying strategic approach displayed a keen understanding that Western decision makers will ultimately be constrained by popular opinion; while the implementation plan recognised that Western media systems can be gamed or bypassed.

              On the morning of the 21st August 2013, I was told by distraught Syrian colleagues that the regime had used poison gas on sleeping civilians in an area besieged by government forces and the Lebanese militia, Hezbollah. The Syrian opposition, advised by individuals, such as myself, with backgrounds in journalism or political lobbying, called on locals to send through videos showing proof of the regime’s actions, which were forwarded on to journalists covering the story. The Kremlin was quick to establish an alternative depiction of events. Russian Foreign Minister Sergei Lavrov told journalists the rebels had used the weapons on their own families in the hope of provoking a Western military response. [2] Russia’s effort seemed doomed to failure. Responding to the weight of facts emerging from the ground, most media outlets concluded the regime was guilty. A Western military response seemed inevitable.

              When I first noticed photos and comments purporting to be from ordinary Americans calling on their government not to come to the “aid of Al Qaeda in Syria”, I wasn’t unduly concerned. [3] However, the posts seemed to become more numerous as the United Kingdom’s (UK’s) House of Commons geared up for a vote on military action against the regime. On the morning of the vote, journalists, political analysts and even political figures started mentioning they had heard that respected US news agency Associated Press (AP) was reporting that the rebels were actually responsible. In several public statements, Lavrov coolly questioned the Western focus on military action when the “evidence is not something revolutionary. It’s available on the internet”. [4]

              It was days after the government of David Cameron lost the Commons vote and the Obama administration climbed down from the threat of military action that we were able to understand what was happening. AP had not found that the rebels were responsible for killing their own sleeping children. Instead, a little-known outlet called Mint Press operating from the US with assistance from a supporter of the regime had printed an article from a stringer who had travelled to Syria and repeated claims he had heard whilst there. As an Arabic speaker, he asked a friend – who also sometimes freelanced for the AP – to help with copy editing. Mint Press very prominently played up the tenuous connection, and other outlets, online trolls and regime supporters obscured the issue further until social media Chinese whispers transformed a rumour into a popularly-believed ‘fact’.

              Of course, it’s not possible to determine what part any specific manipulative technique played in the final outcome of the situation. What is clear, however, is that the Kremlin had realised winning the battle for popular perceptions meant winning wars. It was also clear that Russia had been able to game Western news media through a very sophisticated understanding of how stringers work, how to pitch to editors and the way information moves between outlets – morphing slightly as it does so according to the editorial policy of individual websites, newspapers and channels. For context, it is important to understand that Russia had developed and successfully exploited an intimate understanding of the weaknesses of free media – of which it has little domestic experience of itself.

              The second time Russia needed to bail out the Syrian regime from the possibility of direct and catastrophic Western military intervention, the White House had a new occupant and the news environment looked radically different. Russia’s experience seeding narratives and moving them between different information eco-systems was put to good use.

              On the morning of the 4th April 2017, Syrian social media networks exploded with harrowing photos and videos of men, women and children choking to death as they convulsed on the ground. Western journalists raced to uncover what had happened, much as they did four years previously. Similarly, Syrian activists raced to find them footage and eye witnesses in the hope they would be able to prove beyond doubt what was happening on the ground. Activists expected to have to counter spurious claims on news media. However, the Russian playbook had evolved. It now didn’t need traditional media.

              On the afternoon of the day of the attack, Al Masdar News (AMN), an English-language outlet run by the Syrian regime, published an article that presented several arguments that suggested claims the regime carried out the attack were false. The arguments used techniques such as ‘foreknowledging’, to misrepresent time stamps on social media posts as ‘proof’ timelines did not add up, as well as claiming various online comments by a collection of unrelated actors ‘proved’ the mainstream narrative was false. Ordinarily, such an article would be lost amongst the cacophony of online argument. However, the initial article was not meant to achieve the desired impact itself. It was merely a seed.

              The next day, the AMN article was reprinted, quoted heavily or copied without attribution across a number of conspiracy-orientated ‘news’ sites such as Global Research, 21st Century Wire and Russophile’s Blog. Amongst the sites that used information from the AMN article without attribution was the infamous InfoWars. By the time the alternative narrative had reached the Alex Jones-fronted outlet, it had developed into an anti-Soros conspiracy.

              InfoWars is itself highly influential in the US right-wing news eco-system. Data analysis based on link sharing in 2016 shows it is more often quoted in US right-wing networks than the Washington Post and NBC News are in centrist or left-wing circles. However, InfoWars was not the ultimate aim. Rather the outlet was a gateway into far more pervasive and influential networks – the right-wing US social-media sphere. InfoWars and Alex Jones himself (or someone running his account) tweeted the article. [5] The article was then picked up and amplified by bots – automated Twitter accounts – using a shared hashtag. Many retweeted the article hundreds of times in a two-day period. The final step of the strategy involved high-profile right-wing figures – the American equivalents of UK’s Katie Hopkins – retweeting the article, but also – crucially – repeating the arguments and talking points during their many appearances on traditional media platforms. Ultimately, the idea that a huge conspiracy involving Al Qaeda, George Soros and Western governments acting in unison became a plausible counter argument and was treated with equal weight to facts being checked by international organisations and trustworthy news organisations.

              The impact of the campaign can be gauged by the fact that Donald Trump’s instinctive reaction to punish the Syrian regime through airstrikes led to members of his own base protesting outside the White House and threatening to withdraw their support on right-wing media platforms. [6]

              The difference in tactics used in 2013 and 2017 shows that the ongoing rise of socially distributed and consumed news and the fall in influence of traditional news outlets has made it easier to influence events by manipulating the information key audiences consume. In 2013, it was still felt necessary to lean on AP’s credibility, to engage a real-life journalist and persuade him of the merits of publishing an incredulous story. In 2017, bots and pliable news outlets were enough. There was no need to risk engaging established organisations or to work around their editorial policies. There was also little need to deploy expensive Facebook advertising of the sort examined in recent inquiries in the UK and US.

              Like other sorts of arms races, these techniques are being closely watched by other actors. Recent tension between Gulf countries and Iran has resulted in an explosion of fake accounts and coordinated hashtag promotion in Arabic. [7] Facebook also recently closed down ‘inauthentic’ accounts it said were being used by India and Pakistan in their own political tussles. [8]

              Disinformation works because it fits within the grain of a new reality. Two key underlying factors in its success are the increased relative importance of mass groups of individuals, and the need to understand the world through the lens of those individuals. Recognising both these factors is vital for any organisation wishing to have any sort of influence. So far, we have seen malign actors recognise these factors and put them to use. The question for those working to lift living standards, increase the remit of international human rights, and achieve other positive outcomes is how to ethically and morally adapt their methods to the same new reality.

              Amil Khan, an associate fellow at Chatham House, is a former Reuters journalist and government adviser. He now runs Valent Projects, an agency focused on the challenge posed by the new information environment.

              Photo by Randall Munroe, published under Creative Commons with no changes made.

              [1] David Esnor, Al Qaeda letter called ‘chilling’ – Al-Zawahiri to al-Zarqawi: Prepare for U.S. to leave Iraq soon, CNN World, October 2005, http://edition.cnn.com/2005/WORLD/meast/10/11/alqaeda.letter/

              [2] William Echols, Lavrov Sounds False Alarm Over ‘Staged’ Syria Strikes, Polygraph, September 2018, https://www.polygraph.info/a/lavrov-syria-chemical-weapons-warning/29513470.html

              [3] Paul Szoldra, Some US Troops Appear To Be Posting Photos In Protest of Syrian Intervention, Business Insider, September 2013, https://www.businessinsider.com/troops-protest-syria-military-strike-2013-9?r=US&IR=T

              [4] Ibid.

              [5] Alex Jones’ twitter account has been suspended so his archive of tweets is no longer live on the platform. However, reference to his tweets from the time are recorded on other sites. Joshua Gillin, Conspiracy claims that Syrian gas attacks was false flag’ are unproven, Politifact, April 2017, https://www.politifact.com/truth-o-meter/article/2017/apr/07/unproven-online-theories-doubting-syrian-gas-attac/

              [6] Maxwell Tani, Some of Trump’s more hardline online supporters are slamming him over striking Syria, Business Insider, April 2017, https://www.businessinsider.com.au/trump-syria-srike-media-supporters-split-2017-4

              [7] Marc Jones and Alexei Abrahams, A plague of Twitter bots is roiling the Middle East, The Washington Post, June 2018, https://www.washingtonpost.com/news/monkey-cage/wp/2018/06/05/fighting-the-weaponization-of-social-media-in-the-middle-east/?utm_term=.928397c5e364

              [8] Aditya Kalra and Saad Sayeed, Facebook deletes accounts linked to India’s Congress party, Pakistan military, Reuters, April 2019, https://www.reuters.com/article/facebook-accounts-india/facebook-deletes-accounts-linked-to-indias-congress-party-pakistan-military-idUSKCN1RD1R2

              Footnotes
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                The Strategic Role of the Fezzan Region for European Security

                Article by Paolo Zucconi

                May 30, 2019

                The Strategic Role of the Fezzan Region for European Security

                The Fezzan is a strategic southwestern region of Libya. Its stability is vital for Europe’s security and that of the wider Mediterranean area. The region is home to two of the most important oil fields of North Africa and is a hub for human smuggling and organised crime, whose networks extend to Mali, Niger, Chad and southern Europe. While most of the international community’s attention is on the current conflict between Tripoli’s militias and the Libyan National Army (LNA), the Fezzan region’s role in the wider geopolitics is underestimated. It is often represented as a zone of systemic insecurity, far and disconnected from the political issues in northern Libya. Its importance, however, is crucial for national stabilisation and regional security in Sahel as Fezzan has become a key hub for transnational migrant smuggling networks, as well as oil, weapons, drug and gold trafficking across Africa and the Middle East.

                A Precarious Social and Economic Condition

                Since the 2011 revolution, the Fezzan region has suffered from a lack of central authorities with the capability to impose order and develop licit economies. Tribal fights have impeded the development of any state authority and, until last January when the LNA occupied the region peacefully, militias based in Tripolitania and Cirenaica had been unable to take control over the area. Members of Al-Qaeda in the Islamic Maghreb (AQIM) and Daesh have exploited the increasing lawlessness to develop their strongholds and logistical hubs in southern Libya.

                Post-2011 revolution, security issues which have affected the northern parts of the country have involved the South as well. Institutional weakness, lack of municipal governance and few sources for local economic growth are some of the South’s most pressing challenges. There are also ethnic-based conflicts which involve identity, authenticity and citizenship. These conflicts are due in part to the legacy of Qaddafi’s divide-and-rule policies, as well as tribal rivalries. Qaddafi cynically manipulated the ‘right to citizenship’ to garner the support of southern tribes like the Tebu, one of the most important tribes in Libya, which has suffered systematic marginalisation as a non-Arab community. In particular, Qaddafi promised the Tebu full citizenship in exchange for service in his security forces, but he never kept the promise. Since 2014, the tribe has been attempting to reclaim citizenship. [1]

                Combined with significant structural economic issues and the collapse of the institutional order, this legacy of conflict between the southern tribes in Libya has proven to be a key driver of conflict. Furthermore, the rivalries fostered by Qaddafi have made these tribes adverse to any central authority, especially one based in Tripoli.

                The Role of Sabha and Ubari

                Despite the localised conflicts and social tensions in many parts of the South, two main cities have developed to play key roles in the region. This is in part due to their capabilities to draw in social and political actors from across the wider region. These cities are: Sabha and Ubari. Both places are ethnically and tribally diverse, and both are affected by the lack of a centralised governance, especially when it comes to security and justice. The local economies of these two cities are mostly based on smuggling routes and oil fields.

                Sabha is a strategically very important city, not only because it is the provincial capital of the South but also because it is a historic hub in North-South supply routes. Post-2011 revolution it plays a huge role in migrant smuggling. The city also represents the emblem of porosity of the southern border. It is a hub of black market labour in which Sahelian migrants stay before moving northward. Migrants work as day labourers in impoverished neighbourhoods like Ghurda, where they are accommodated by the dozens into single room, trying to save 30 dinars to be able to move northward; migrants from other regions and countries cannot avoid forced labour or prostitution. Once they can move to the next step of their journey, they are packed into cargo trucks; facing violent abuse, sexual assault and abandonment; ‘If you faint or fall off, they leave you. The drivers beat us with long wooden sticks.’ [2, 3]

                Ubari is another strategic city located near the Algerian-Nigerien border and has major oil fields. Most of the population are Arabised Africans, the so-called ‘Ahali’, who descend from sub-Saharan slaves. The Tuareg are the second largest group while the Tebu are a minority. The revolution’s aftermath devastated the local economy. Local competition over power, assets, and alternative livelihoods emerged, increasing discontent among the town’s impoverished and disenfranchised communities and cross-border smuggling increased.

                When it comes to border control with Niger and Chad, this has always been problematic. Qaddafi could not exercise full control over the area because he wanted to secure the tribes’ support. To gain the support this meant letting lucrative smuggling routes flourish and for the governance of the city to be held by the local tribes. As the money generated from licit economies was not enough to provide sufficient local income, illicit trade from and to Niger and Chad became a structural feature of the Ubari’s socioeconomic framework just like in other parts of the region. The South’s security actors are often involved in these illicit trade routes, and other attempts to fight it often fail because of a lack of equipment and trained personnel. This situation has created two types of smuggling. One related to arms, narcotics and militants, which are sometimes intercepted, and fuel, subsidised food, cigarettes and illegal migrants, which pass through by paying a fee.

                The international community is incapable to implement strategies for countering organised crime and smuggling in South Libya because local municipalities share power with informal security providers and criminalised power structures.

                Overall the international community continues to underestimate the Fezzan. Efforts for stabilisation are focused on North Libya where most of the urbanisation and economic activities are. However, without stabilising the Fezzan, no peace process can fully take place. Factions competing for national control (the Government of National Accord and the Libyan National Army) are supported by militias and tribes, some more than others, involved in smuggling. Drugs, weapons, oil and human trafficking operations come from Niger and Chad, and due to porous borders enter South Libya, and have established strategic hubs in Sabha and Ubari. This represents a profitable business for the major Libyan local actors and they are not willing to change that. Breaking the nexus between organised crime and instability must be a priority for the international community. Otherwise no peace plan can be successful.

                The international community should support more common dialogue in the region. It is crucial to avoid a Somalisation of Libya, which could bring about long-term violence. Although the Fezzan has very complex tribal dynamics usually impeding foreign efforts for stabilisation, the Italian government and the Italian Sant’Egidio community have started a mediation dialogue with local tribes to find local solutions to the main problems. [4] This initiative is hard to implement but necessary and the international community should support it rather than diverging on how to deal with Libya. If local actors are given the opportunity to negotiate to find solutions to their own problems, this could be the first step for local reconciliation. However, the dialogue needs to be structured so that past tribal conflicts are not obstacles and so they can also be focused on redistribution of oil revenues.

                Tribes, who control routes and hubs for smuggling, are unlikely to agree to fight profitable criminal activities and to develop licit economies, unless there is an equally profitable source of income. Redistribution of oil revenues could be this source of income, and be the economic foundation for reconciliation, the development of licit economies and the restoration of public basic services. In order to reduce corruption, redistribution should be supervised by international financial institutions. Currently, oil revenues go from the National Oil Company to the Central Bank of Libya, instead of being redistributed across local municipalities and this enables dirty money to be the main source of income.

                Porous Border Control

                According to Frederic Wehrey, the Fezzan region is characterised by key border-control deficiencies stemming from a lack of municipal governance capacity. But there are no particular capacity building initiatives in place to face this problem. It is too dangerous and logistically difficult to deploy capacity building missions in the Fezzan. What the international community should do is to implement common dialogue among tribes (including discussions on the redistribution of oil revenue) along with capacity building initiatives in Chad and Niger, where there is a safer and securer environment, and where important transnational criminal hubs are located. France and Italy have started missions in those countries (i.e. MISIN) to train local security forces, but the effectiveness of these missions is debated among experts. Training security forces and developing border police forces can be a good start in fighting criminal networks and break the nexus between criminality and instability. However, the presence of further elements of instability (i.e. terrorism, climate change) have a deep impact on efforts for stabilisation in Sahel.

                The city of Ghat is a key example of border control deficiency. Ghat’s local leadership controls the Libyan border from Algeria to Niger. After the closure of the Algerian border, Ghat became isolated with no supply chains and got involved in clashes with neighbouring city Ubari. The leader of a local border armed group, Katiba 411, declared that ‘he was forced to patrol a 230-kilometre stretch of border with Algeria with just 230 men.’ [5] Since the Algerian border closed, smuggling has moved to the Nigerien border and into Gatrun, exploiting a Tebu-controlled route. Ghat’s leaders have often and unsuccessfully requested the support of the Government of National Accord and the EU for direct assistance in reinstating Algerian cross-border trade routes for Libya’s border towns. “We asked the Europeans to pressure Algeria to open the border to relieve our suffering” a municipal council member referred, criticising the fact that the Tuareg, living in the area, did not have access to medical care and basic goods coming from Algeria. [6] However, the EU did not intervene on this.

                The situation in Ghat is just one example amongst many. As long as local institutions and neighbouring governments, with the support of regional and international actors, will not face illicit trafficking properly black economies will remain the most important source of local income, and any law enforcement, technical and bureaucratic improvements will probably fail.

                The Government of Niger has begun to work on the issue and has introduced ‘more stringent document control, vehicle search and seizure’, along with repressive measures ‘for those caught smuggling, resulting in a net decrease in migration out flow’. [7] Although these actions are a step forward in the right direction, it is not enough.

                The smuggling routes and the struggle for resources are part of deeper socioeconomic issues. [8] Recently, the EU has started to address some of these problems in the Fezzan and across the border with Chad, providing funds to local councils to build migrant detention centres for the councils to manage the flow of migration. However, many mayors rejected the plan because it does not address the key and structural features of migrant flows and smuggling (i.e. the absence of a licit local economy). Moreover, due to the lack of strong governance and supervision, human rights violations by local militias and managers of such facilities could easily take place.

                The role of the EU in addressing security and insurgency issues in the Fezzan is limited due to internal divisions among the EU member states in dealing with the Libyan conflict. Italy supports Al-Sarraj’s government in Tripoli, while France supports Haftar’s Libyan National Army in Benghazi. As the two most important EU member states in the Mediterranean diverge, it is difficult for the EU to act as a bloc and find a common approach to stabilise Libya.

                The European Union Border Assistance Mission in Libya (EUBAM Libya), a civilian mission under the Common Security and Defence Policy, is aimed at supporting the Tripoli-based authorities disrupting organised criminal networks, like human trafficking, drug and oil smuggling, and terrorism. One of the task is developing the security of the country’s borders. However, EUBAM presence in the Fezzan is very limited, if it even exists. Also, due to fragmentation of power and the lack of inclusive military command structure, national police and armed forces are no longer operational since the 2011 revolution. Diverse armed actors have become integral to security arrangements, mostly informal, and have basically acquired the legitimate status as local authorities need protection. This has affected the effectiveness of the EU integrated border management assistance mission in Libya.

                Conclusion

                Despite the recent LNA occupation of the region, and ongoing ceasefire arrangements between groups once at war, Fezzan remains affected by social, economic, political and security issues.

                Regional and international actors support diverging and opposing sides (Italy, the UN, Qatar and Turkey support Al-Sarraj, while France, Saudi Arabia, Egypt and Russia support Haftar). All of them have different and competing interests. For example, the main French oil company Total competes with the main Italian oil company ENI to gain control over key oil fields in Libya. Since 2017, Saudi Arabia and Qatar have no diplomatic relations after the embargo against Qatar by Saudi Arabia, Bahrain, Egypt, and the United Arab Emirates. Riyadh and Doha are financing two opposing sides in the Libyan conflict. These diverging interests intersect with very complex local dynamics and impede the international community from adopting a common strategy to solve the conflict As a consequence, the fight against criminal networks is minimal and restoring the circulation of clean money remains a distant long-term objective. Informal economies have spread across southern Libya and, just like in other regions, it affects efforts for stabilisation. As the local economies mostly consist of smuggling and trafficking, tribes and militias in the region will remain involved because it is a lucrative market.

                Although a national peace and capacity building program aimed at restoring basic services and security forces to fight criminalised power structures would be necessary, there are not the conditions on-the-ground to implement such a program. Italy has tried to promote dialogue between the southern tribes but this is not enough. The recent LNA occupation of the Fezzan and the current fight to occupy Tripoli have changed the political landscape, a common approach that takes this into account, as well as the complex context in the Fezzan, needs to be adopted by the international community.

                Paolo Zucconi is a Research Fellow at the Global Center for Security Studies in Brussels. He is an independent geopolitical analyst and contributor for The Journal of International Security (Intersec), Global Security Review, and Geopolitical Monitor. He writes for journals and reviews based in the UK, USA, Canada, Australia and Italy on topics related to the MENA region’s security and geopolitical affairs.

                Photo by Franzfoto, published under Creative Commons with no changes made.

                [1] Ben Lamma M. 2017. ‘The Tribal Structure in Libya: Factor for fragmentation or cohesion?’. Observatoire du Monde Arabo-Musulman et du Sahel.

                [2] F. Wehrey. 2017. ‘Insecurity and Governance Challenges in Shouthern Libya’. Carnegie Endowement for International Peace: Washington D.C.

                [3] Ibid.

                [4] Comunità di Sant’Egidio. 2016. ‘Libia, Accordo a Sant’Egidio fra le Tribù del Sud per la Pacificazione dela città di Sebha’. Sant’Egidio Website News.

                [5] Ibid.

                [6] Ibid.

                [7] International Organization for Migration. 2016. ‘Migration Crisis Operational Framework 2017-2019’. Libya Country Office.

                [8] I. Kohl. 2015. ‘Terminal Sahara: Sub-Saharan Migrants and Tuareg Stuck in the Desert’. Stichproben: Vienna Journal of African Studies 28, no. 15, 55–81 

                Footnotes
                  Related Articles

                  Far from a pro-Russian dove, Volodymyr Zelensky enters office a Russia hawk

                  Article by Lincoln Pigman

                  May 20, 2019

                  Far from a pro-Russian dove, Volodymyr Zelensky enters office a Russia hawk

                  With his inauguration today, the presidency of Volodymyr Zelensky is upon us. Zelensky, a political outsider who ran on an explicitly anti-establishment platform and ousted incumbent President Petro Poroshenko in a second round of voting that saw Zelensky receive nearly three-quarters of the national vote, has been inaugurated and is likely to set about making major policy and personnel changes upon assuming control of the Bankova. That certainty has the showman’s critics concerned, not least because of its implications for the country’s Russia policy.

                  After all, Zelensky’s detractors spent the final weeks of the presidential race charging that he was at best too weak and inexperienced to stand up to Russia and its president, Vladimir Putin, and at worst on the same page as Putin on key issues and possibly in the pocket of the Kremlin. Poroshenko and his allies redirected their attacks toward Zelensky following the elimination of former Prime Minister Yulia Tymoshenko in the first round of voting, distributing anti-Zelensky campaign materials that warned of a Russian ‘revanche’ in the event of a Zelensky victory and depicted the April 21st vote as ‘a decisive choice’ between Putin and Poroshenko. [1, 2] Poroshenko personally declared that Zelensky’s election would turn Ukraine into a Russian colony and threaten ‘the existence of the state’, while his ministers reportedly rushed to ‘safeguard NATO and Euro-Atlantic integration’ lest Zelensky attempt to turn back the clock if elected. [3, 4, 5]

                  Zelensky has sought to defy his opponents’ claims by taking a hawkish turn and adopting a highly confrontational stance toward Russia. Having initially emphasised the necessity of direct talks with Putin, Zelensky challenged Poroshenko and his much-vaunted national security credentials from the right when the two candidates debated each other in Kiev’s Olympic Stadium on April 19th. [6] He charged Poroshenko with mismanaging the war effort and failing to bring the conflict to an end in his five years in office, and assailed him for being too friendly with Moscow where a more dovish candidate might have called for diplomacy and engagement with Russia and possibly even the separatist authorities – options backed by 75 percent and 55.4 percent of Ukrainians, respectively. [7]

                  Zelensky scrutinised and questioned Poroshenko’s interactions with Putin and implied that it was Poroshenko’s business ties to Russia, rather than Zelensky’s, that presented a liability. This, at a time when many Russian political analysts welcomed a Poroshenko defeat on the grounds that the incumbent president was impossible for the Kremlin to negotiate with. [8] Zelensky was also the first candidate to mention Putin in the debate, and Poroshenko – widely seen and sometimes derided as the war candidate to Zelensky’s peace candidate – found himself having to assert his toughness on Russia. Finally, Zelensky made sure to repeatedly praise Ukraine’s military, and while he caught flak from the military for referring to Russian-backed separatists as ‘rebels’ during the debate, voters appeared to meet Poroshenko’s repeated references to Zelensky’s alleged draft-dodging with indifference. [9] All in all, the Zelensky of the second round of voting looked nothing like the dove described by his detractors, and voters took notice.

                  Zelensky faced his first test as a statesman – and a Russia hawk – well before taking the reins of Ukraine’s foreign policy. Soon after his electoral triumph, the Kremlin, which declined to congratulate Zelensky, declared that it would be simplifying access to Russian citizenship for citizens of Eastern Ukraine’s two separatist republics. In comments to the Guardian, an adviser to Kremlin official Vladislav Surkov said that the announcement had been postponed until after the April 21st vote so as to not give Poroshenko ammunition. [10] Moscow then doubled down, openly contemplating extending its controversial offer to all Ukrainian citizens. [11] In response, Zelensky targeted Moscow where it hurts: regime security. In a Facebook post written in Russian as well as Ukrainian, Zelensky, who commands considerably more good will among Russians than his predecessor, attacked the Kremlin’s domestic legitimacy, sarcastically listing the advantages of Russian citizenship: ‘the right to be arrested for peaceful protest’ and ‘the right to not have free and competitive elections’, like the one he had just won. [12]

                  He added that his administration would offer all post-Soviet dissidents, not just Russians, asylum and even citizenship. Whether or not Zelensky ultimately delivers on that promise, his talk of Ukraine’s ‘mission to serve as an example of democracy for post-Soviet countries’ and ‘provide protection, asylum, and Ukrainian citizenship to all those who are prepared to fight for freedom’ and ‘battle side by side with us for our freedom and yours’ surely captured the attention of the region’s authoritarians, both inside and beyond the Kremlin. To be sure, Ukraine granted asylum and citizenship to some Russian dissidents under Poroshenko, who made one of his final acts as president the granting of citizenship to the exiled Russian lawmaker Ilya Ponomarev. [13] Still, his promotion of a particular vision of Ukrainian national identity at home limited Kiev’s soft power reach in Russia. That is likely to change under Zelensky, especially if what is effectively a democracy promotion effort continues upon his inauguration.

                  In this endeavour, Zelensky is certain to benefit from the fact that he appears to favour a vision of Ukrainian national identity that is markedly more inclusive than that of his predecessor and which seems to eschew the memory and other culture wars that escalated on Poroshenko’s watch. ‘When we name so many streets [and] bridges by the same name, this is not quite right’, Zelensky recently said in reference to Stepan Bandera, adding that the reverence of some Ukrainians for the nationalist leader and World War II partisan ‘is a normal and cool thing’. [14] Zelensky’s balanced approach to questions of history and identity was on full display when he celebrated Victory Day by sharing a photo of himself with two UPA and Red Army veterans, locked in a symbolic handshake. [15] Similarly, Zelensky, who has declined to unambiguously align himself with the Kiev Patriarchate’s Ukrainian Orthodox Church as Poroshenko did after its establishment last December, recently met with the heads of Ukraine’s rival Orthodox churches and arranged for Ukraine’s religious leaders to send a joint ‘message of peace’ to the residents of Crimea and Eastern Ukraine. [16, 17]

                  Indeed, Zelensky and his advisers have signalled that some of the most divisive cultural issues pressed by Poroshenko and his allies should be put to the side in favour of more pressing – and tangible – problems like corruption. [18] That could mute at least some of the internal differences on which Moscow has capitalised in its efforts to discredit Kiev. Zelensky has also proposed targeting the hearts and minds of those living under separatist rule and ensuring that they ‘understan[d] that they are Ukrainians’ through ‘an information war’ involving the creation of an internationally broadcast Russian-language television channel. [19] That would constitute a marked departure from the Poroshenko administration’s failure to undertake ‘a serious outreach effort to those caught behind LNR and DNR lines, to make them feel that they would be fully welcomed back as citizens of Ukraine once Ukrainian sovereignty was restored’, as former US ambassador to Ukraine Steven Pifer described it in 2017. [20]

                  It is possible that internal and external pressures will cause Zelensky to change course on Russia upon entering office. Zelensky must capture the Rada in upcoming parliamentary elections while dealing with the continuing challenge from Poroshenko, who has said he will run in Ukraine’s 2024 presidential election; meanwhile, the actions of Russia and Ukraine’s Western partners will shape how he navigates Kiev’s confrontation with Moscow. In any case, Zelensky is unlikely to take a sharp turn for the dovish, with his hawkish turn since the March 31st vote a far cry from the nightmare scenario that Zelensky sceptics painted on the campaign trail and reason enough to rethink Zelensky and his emerging Russia policy.

                  Photo by The Presidential Administration of Ukraine, published under Creative Commons with no changes made.

                  [1] Obozrevatel, ‘In Kiev, the police detained a guy for leaflets against Zelensky: the net is seething’, April 2019 https://www.obozrevatel.com/kiyany/crime/v-kieve-politsiya-zaderzhala-parnya-za-listovki-protiv-zelenskogo-set-kipit.htm.

                  [2] Christopher Miller, ‘Ukrainian President Petro Poroshenko’s new campaign posters for the second-round runoff election suggest it’s a choice between the incumbent and … Putin. “April 21 – a decisive choice”’, Twitter, April 2019, https://twitter.com/ChristopherJM/status/1115659308983881728.

                  [3] Simon Ostrovsky, ‘Poroshenko speaking on Maidan, at perhaps his last rally there as president, warns supporters that a Zelensky presidency would mean Ukraine being a colony of Russia’, Twitter, April 2019, https://twitter.com/SimonOstrovsky/status/1119207843863744512.

                  [4] Michael Colborne, ‘OK. In an interview, Poroshenko says that his defeat in the elections April 21 would carry “extreme risks” and would be “a threat to the existence of the state.”’, Twitter, April 2019, https://twitter.com/ColborneMichael/status/1116019112948457473.

                  [5] Jack Laurenson, ‘Deputy prime minister: Cabinet moving to safeguard NATO and Euro-Atlantic integration’, Kyiv Post, April 2019, https://www.kyivpost.com/ukraine-politics/deputy-prime-minister-cabinet-moving-to-safeguard-nato-and-euro-atlantic-integration.html.

                  [6] Bermet Talant, ‘Zelenskiy reveals plans to end war with Russia, fight corruption’, Kyiv Post, April 2019, https://www.kyivpost.com/ukraine-politics/zelenskiy-reveals-plans-to-end-war-with-russia-fight-corruption.html.

                  [7] Sociological Group ‘Rating’, ‘Ukraine today: challenges and prospects’, May 2019, http://ratinggroup.ua/ru/research/ukraine/ukraina_segodnya_vyzovy_i_perspektivy.html.

                  [8] Svetlana Bocharova, Elena Mukhametshina, and Varvara Podrugina, ‘Whose victory in Ukraine’s presidential election would Russia benefit from? The opinions of political scientists’, Vedomosti, March 2019, https://www.vedomosti.ru/politics/articles/2019/03/29/797676-prezidenta-ukraini-vigodna-rossii.

                  [9] General Staff of the Ukrainian Armed Forces‏, ‘«We do not have «rebels». We have Russian aggression» – reminder of the President of Ukraine – Supreme Commander-in-Chief of the Armed Forces of Ukraine. The Armed Forces of Ukraine will not forget and will not forgive about that. Never!!!’, Twitter, April 2019, https://twitter.com/GeneralStaffUA/status/1119343936261193728.

                  [10] Andrew Roth, ‘Russia tests Ukraine’s new president with passports for breakaway regions’, The Guardian, April 2019, https://www.theguardian.com/world/2019/apr/24/russia-passports-ukrainians-breakaway-regions-decree-ukraine.

                  [11] The Moscow Times, ‘Putin says Russians and Ukrainians would benefit from shared citizenship’, April 2019, https://www.themoscowtimes.com/2019/04/29/putin-says-russians-and-ukrainians-would-benefit-from-shared-citizenship-a65424.

                  [12] Volodymyr Zelensky, Facebook post, April 2019,https://www.facebook.com/story.php?story_fbid=2236347569948940&id=100007211555008.

                  [13] Ilya Ponomarev, ‘Нарешті, це трапилось! Сьогодні, чинний президент України – Петро Порошенко, в останній робочий день своєї каденції, підписав указ про надання мені українського громадянства, згідно державного інтересу. Я сказав… https://www.facebook.com/iponomarev/posts/10157301964690802 …’, Twitter, May 2019, https://twitter.com/iponomarev/status/1129376237355524096.

                  [14] Sam Sokol, ‘With two Jews in the country’s top jobs, what is next for Ukraine?’, The Jewish Chronicle, April 2019, https://www.thejc.com/comment/analysis/with-two-jews-in-the-country-s-top-jobs-what-is-next-for-ukraine-zelensky-groysman-poroshenko-1.483338.

                  [15] Yaroslav Trofimov, ‘Ukrainian President-elect Zelensky uses quite an image for his Victory Day message: a Soviet WWII veteran whose only grandson was killed by the Russians in Donbas and a former clandestine member of the Ukrainian Insurgent Armey that was targeting Soviet troops in the 1940s.’, Twitter, May 2019,https://twitter.com/yarotrof/status/1126207425642672134.

                  [16] Fabrice Deprez, ‘President-elect Zelensky met with the head of the former Kyiv Patriarchate, the leader of the newly founded Ukrainian orthodox Church but also with the head of the Moscow Patriarchate. Another indication Zelensky is looking to distance himself from Poroshenko’s governing style’, Twitter, May 2019, https://twitter.com/fabrice_deprez/status/1123509794562818048.

                  [17] Volodymyr Zelensky, Facebook post, May 2019, https://www.facebook.com/zelenskiy95/videos/vb.100007211555008/2246423268941370.

                  [18] Unian, ‘Advisor to Zelensky names president-elect’s priorities for first 100 days in office’, May 2019, https://www.unian.info/politics/10545822-advisor-to-zelensky-names-president-elect-s-priorities-for-first-100-days-in-office.html.

                  [19] Interfax Ukraine, ‘Zelensky suggests waging information “war” for Donbas, launching special intl Russian-language channel’, March 2019, https://en.interfax.com.ua/news/general/574963.html.

                  [20] Steven Pifer, ‘Deepening division in Donbas’, Brookings Institution, May 2017, https://www.brookings.edu/blog/order-from-chaos/2017/05/02/deepening-division-in-donbas/.

                  Footnotes
                    Related Articles

                    FPC Briefing: Exploiting an idyll – US, Indian and Japanese efforts to counterbalance China in Sri Lanka

                    Article by Sarosh Bana

                    May 17, 2019

                    FPC Briefing: Exploiting an idyll – US, Indian and Japanese efforts to counterbalance China in Sri Lanka

                    The grisly terror onslaught against Sri Lanka on Easter Sunday that took 253 lives could well have been avoided if a deeply divided government had not failed to act on intelligence provided by the United States (US) and India. [1]

                    Tragically for this idyllic island nation, the political rift has also made it vulnerable to external influences. The terror strikes were perpetrated against the backdrop of superpower rivalry where the Indo-Pacific powers of the US, India and Japan are striving to counterbalance the overarching dominance that China has gained over the island and the region. The three partner countries have been increasingly concerned by China’s enlarging presence in the maritime proximity to India and its new-found access to a crucial commercial and military waterway that has deepened its influence in the Indian Ocean Region (IOR).

                    The series of eight coordinated suicide bomb blasts by radical Islamists tragically brought the spectre of strife and unrest back to Sri Lanka that was to have celebrated a decade of peace on 18 May. That day in 2009 had marked the end of the 26-year civil war by the separatist Liberation Tigers of Tamil Eelam (LTTE) that is estimated to have taken a toll of over 100,000 civilians and 50,000 fighters. [2]

                    The Easter Sunday attacks could well have been the route to derail this path to peace and to bring ethnic strife back to centre-stage in this ‘Emerald Isle of Asia’, also known as the Land of Spices and Tea. Already, fearing further attacks, the government has declared a state of emergency that empowers the police and military to detain and interrogate suspects without court orders. Armed pickets have been deployed outside churches, mosques, hotels and other public spaces, suspects have been rounded up and radical literature and explosive material seized in a series of raids as Sri Lankans hunker down to a looming period of uncertainty.

                    US and Indian intelligence agencies had repeatedly warned Colombo about weapons, explosives and detonators being stockpiled, with moves afoot to target churches and even the Indian High Commission. Among the 39 foreign tourists from at least 12 countries who perished in the blasts in three churches and three luxury hotels were 11 Indians and four Americans, as also one Japanese and one Chinese. [3]

                    This grievous lapse in acting on credible intelligence inputs betrays the political divide in Sri Lanka. The 25,330 square mile teardrop-shaped country of 22 million was plunged into turmoil last October when President Maithripala Sirisena ousted his former political ally and sitting Prime Minister Ranil Wickremesinghe “because of his arrogance”, and replaced him with his rival-turned-friend and ex-President Mahinda Rajapaksa. The consequent power struggle virtually shut the government down. Sirisena discounted two confidence votes Wickremesinghe won in Parliament, acquiescing only seven weeks later when the Supreme Court rebuked him and sought Wickremesinghe’s reinstatement.

                    However, in a message fraught with grim forebodings, Sirisena said there was no change in his “personal position” that he would not work with Wickremesinghe even if all 225 Parliament members backed him. Thus, a divided government overlooked the warnings on the Easter offensive, with both the President and Prime Minister astonishingly and separately informing their countrymen that they were not privy to the incoming intelligence. 

                     The fallout between Wickremesinghe and Rajapaksa has also reflected menacingly on national developments where the former has been disposed towards India, while Rajapaksa has toed the Chinese line.

                    Strategically-located Sri Lanka lies off the southeastern tip of India just across the 33-mile wide Palk Strait. Its vantage location accords it strategic access to the Indian Ocean, which is the third largest ocean on earth, after the Pacific and Atlantic, and which covers a fifth of the total ocean area of the planet, drawing its boundaries with Asia to its north, Africa to its west, Australia to its east and Southern Ocean (or Antarctic or Austral Ocean) to its south.

                    Together, the Indian and Pacific Oceans cover two-thirds of the earth’s total water surface, and an increasingly assertive China’s economic and military rise has been having a profound impact on the balance of power in this maritime region.

                    While the US has provided some $2 billion in total assistance to Sri Lanka in areas such as agriculture, energy and natural resources, education, healthcare and humanitarian activities, Chinese companies completed infrastructure projects there worth $15 billion by the end of 2017. [4, 5] As part of its Bay of Bengal Initiative, the US has also granted $39 million to Sri Lanka to support maritime security, freedom of navigation, and maritime domain awareness. [6]

                    In 2016, China overtook India as Sri Lanka’s largest trading partner, with its $4.43 billion worth of bilateral trade surpassing India-Sri Lanka’s $4.37 billion, according to one study. [7] Both India and China enjoy vast trade surpluses with Sri Lanka, but the US has a gross deficit. The study notes that the US is Sri Lanka’s foremost export destination, accounting for a quarter of all its exports in the 2012-16 period, and India, the third largest destination with a 5.6 percent share. China was, however, only the 10th largest destination, with a 1.8 percent share. Moreover, while China finances its projects in Sri Lanka largely through repayable loans, India’s financial aid to Sri Lanka is normally in a ratio of 70 percent loans to 30 percent outright grants. Japan too had a three-fourth trade surplus with Sri Lanka in their bilateral trade worth $1 billion in 2016.

                    Beijing’s strategic outreach into the IOR and its claims of sovereignty over almost the entire South China and East China seas have unsettled the Indo-Pacific littoral. This has not been lost on the US, which had historically been the security guarantor for this expanse and beyond. But while Washington is keen on retaining, and reclaiming, its presence across the critical sea lanes, it now finds worth in forging regional partnerships in this pursuit with other like-minded countries like India and Japan in an effort to cut down costs and delegate responsibility.

                    A critical question that arises is whether this policy shift in American strategy has actually been a policy drift and has fallen behind China’s sharply focused overseas infrastructure investment and lending program called the Belt and Road Initiative (BRI, previously, One Belt One Road, or OBOR) that was kick started in 2013. BRI, also known as the maritime silk route, is a $1 trillion sequence of infrastructure projects spanning 70 countries. [8]

                    Though Beijing insists the BRI is largely a commercial rather than a military initiative, naval basing appears very much part of an unspoken agenda. Releasing the National Security Strategy last December, US President Donald Trump described a new era of “great power competition” where “foreign nations” have begun to “reassert their influence regionally and globally” and contest “[America’s] geopolitical advantages and trying to change the international order in their favor.” He, however, revealed the US’s new approach to China that is grounded in fairness, reciprocity, and respect for sovereignty.

                    China has lavished generous loans on many countries as part of the BRI enterprise, only to assume control over the infrastructure created by it by way of compensation in case of defaults on repayments. Speaking on his administration’s policy towards China at the Hudson Institute in October 2018, US Vice President Mike Pence blamed Beijing for using “debt diplomacy” to expand its influence, leaving opaque the terms of its loans so that benefits flow overwhelmingly to it. [9] “Just ask Sri Lanka, which took on massive debt to let Chinese state companies build a port with questionable commercial value,” he noted. “Two years ago, that country could no longer afford its payments – so Beijing pressured Sri Lanka to deliver the new port directly into Chinese hands. It may soon become a forward military base for China’s growing blue-water navy.”

                    When Sri Lanka defaulted on its $1.12 billion deal with China to develop its southern seaport of Hambantota, Beijing deemed it more opportune to take over the port it created rather than relax the repayment norms that Colombo pleaded for. [10] Consequently, in December 2017, Colombo handed over the port to Beijing on a 99-year lease. [11] Though China insists it has solely commercial interest in Hambantota, Sri Lankan authorities reportedly indicated that intelligence and strategic possibilities of the port’s location had been part of the negotiations. Indeed, within weeks of Sri Lanka’s announcement in June 2018 that it would be shifting its southern naval headquarters to Hambantota port, Beijing declared it would be donating a frigate to the Sri Lankan Navy. [12] The People’s Liberation Army (PLA) is also creating facilities at the Sri Lanka Military Academy, the country’s premier army training establishment.

                    Speaking at the Pathfinder Panel Discussion in Colombo in February, Acting Principal Deputy Assistant Secretary of State Thomas Vajda felt that transactions based on “naked commercial self-interest and hidden agendas that mortgage the future” undermine the long-term stability of the region. [13]

                    In Sri Lanka, China is expanding from Hambantota to the Colombo port as well. In the single largest ever Foreign Direct Investment (FDI) into Sri Lanka, China Harbor Engineering Company (CHEC), a subsidiary of state-owned China Communications Construction Company (CCCC), is creating the $1.4 billion Colombo International Financial City (CIFC) on 269 hectares or 660 acres of land reclaimed from the sea. [14]

                    This ‘city-within-the-city’ is expected to be a major financial hub rivalling Singapore and Dubai that will boost the economy and maritime trade of the island country. The project was launched in 2014 by Chinese President Xi Jinping and then Sri Lanka’s President Rajapaksa, its marine part, including construction of the breakwater, to be commissioned in June 2019. China is also investing $1 billion in constructing three 60-storey buildings at this site adjacent to the country’s main port of Colombo, the deepest container terminal in South Asia. [15]

                    India is particularly stressed by these developments in its vicinity, having had tumultuous encounters with China along its northern frontiers where both countries maintain high military vigil. When the current Wickremasinghe government came to power in January 2015, New Delhi managed to convince it to halt the project, but CCCC pressed for an agreement renewal and work resumed in August 2016, much to India’s chagrin.

                    Washington too is disquieted by these happenings, especially as the Hambantota issue came to a head in 2018 that happened to be the 70th anniversary year of US-Sri Lankan diplomatic relations. While unveiling additional financial help for the Indo-Pacific region late last year, Secretary of State Mike Pompeo said: “We’re convinced that American engagement in the Indo-Pacific benefits all the nations in that region. [16] We want it to be free, we want it to be open. We’re not looking for dominance. We’re looking for partnerships.”

                    Testifying at the February hearing of the Senate Armed Services Committee, Admiral Philip Davidson, commander of the US Indo-Pacific Command (USINDOPACOM), maintained that the transfer last year of an excess US Coast Guard cutter, along with additional platforms from Japan and India, have augmented the maritime domain awareness of the Sri Lankan Navy, which is a well-trained and professional force with the potential to contribute to multilateral maritime interoperability in the Indian Ocean. [17]

                    Terming Sri Lanka “a significant strategic opportunity in the Indian Ocean”, Davidson said that increasing the bilateral navy-to-navy engagement will be a USINDOPACOM focus in 2019. Indicating that the US’s other regional partners like India, Japan, France, Australia and New Zealand share a common aspiration for a free and open Indo-Pacific, he noted, “USINDOPACOM depends upon the collective capabilities of our allies and partners to address the challenges to a Free and Open Indo-Pacific.”

                    Home to half of the 20 fastest growing economies that account for over a third of global GDP, the Indo-Pacific will have unrivaled purchasing power when 65 percent of the world’s middle class will be inhabiting the region by 2030. [18] In 2017 and 2018 alone, American businesses invested $61 billion in more than 1,500 projects across the region, according to US Ambassador to Vietnam Daniel Kritenbrink. [19] “US total investment in the Indo-Pacific is now more than $1.4 trillion, which is more than that from China, Japan and South Korea combined,” he added. 

                    However, China’s grand strategy for the Indo-Pacific envisages its foray into the IOR through its ‘string of pearls’ blueprint. Alongside Hambantota and Colombo, the blueprint delineates a chain of ports through Sonadia, in Bangladesh, Kyaukpyu, in Myanmar, and Laamu Atoll, in the Maldives. The Sonadia deal was to be signed during Prime Minister Sheikh Hasina’s China visit in 2014, but was aborted on speculation that the initiative was blocked by India. However, it could be revived, with Hasina lauding China for being “a key-development partner” with Bangladesh’s 2017 purchase of two Chinese-made Type 035G Ming Class submarines worth $204 million that upgraded its navy into a “three-dimensional force.” [20]

                    To heighten its presence in the Bay of Bengal on India’s eastern seaboard, China concluded a $1.3 billion (initial phase) deal with Myanmar last November to develop a deep-sea port in Kyaukpyu in the western state of Rakhine. [21] Part of a special economic zone (SEZ), the port will lie across the Bay where India is developing a nuclear submarine base codenamed Project Varsha near the Eastern Naval Command at Visakhapatnam. The project was initially worth $7 billion, but was reduced appreciably following Myanmar’s fears of a debt-trap. [22]

                    As with Sri Lanka, where China friend Rajapaksa signed the Hambantota and other deals with Beijing before being succeeded by India friend Wickremesinghe, the Maldives was drawn to China under former President Abdulla Yameen, while Ibrahim Mohamed Solih, who succeeded him in November 2018, is inclined towards India. The Yameen government had in March 2018 admitted that China had expressed interest in building a port in Laamu Atoll to the south. It had also borrowed heavily from China to build bridges and housing as part of Beijing’s BRI initiative and reportedly even handed over some islands to China. [23]

                    A month after Solih assumed power, India, evidently anxious to forestall any Chinese naval bases on this Indian Ocean island territory 623 km or 388 miles off its southernmost tip of Kanyakumari, offered $1.4 billion aid to the Maldives to help it pay off its debt to China on condition that it distances itself from Beijing. [24] As part of its policy of ‘Neighborhood First’ to support the island country’s socio-economic development, New Delhi also sought stronger security ties with Male that would involve permanent deployment of Indian military personnel.

                    China, however, is hemming India in with another of its overseas ports, this time in Pakistan, India’s longstanding foe across the border with which it has gone to war four times, in 1947, 1965, 1971 and 1999. The Gwadar port it is building in Pakistan’s largest province of Baluchistan will link to Kashgar in China’s far western region of Xinjiang via the $46 billion China-Pakistan Economic Corridor (CPEC) that both the partners hail as the “great monument of Pakistan-China friendship” and which is now a flagship component of the BRI. [25] Gwadar will gain China a maritime gateway to the Arabian Sea on India’s west and on to the Indian Ocean, Persian Gulf and the gulfs of Oman and Aden.

                    India opposes the CPEC, as the project runs through Gilgit-Baltistan and Pakistan-occupied Kashmir (PoK) that are disputed by India. The CPEC incidentally obliges Pakistan to pay $40 billion to China over 20 years by way of debt repayments and dividends. [26] India has also snubbed China twice on the BRI issue, when it boycotted the BRI Forum meetings held in Beijing in 2017 and last April.  

                    Ironically, while China helps the Islamic Republic of Pakistan – which, with a population of over 200 million Muslims, designates Islam as its state religion and is also referred to as the ‘global center of political Islam’ – in Xinjiang, the Communist Party has imprisoned a million native Muslim Uyghurs in government camps. [27] Survivors recount being indoctrinated in these camps in an authoritarian effort to subjugate Uyghur culture and quash the Muslim faith in China.

                    China may prospectively use Gwadar, and Hambantota, as PLA Navy bases, in order to bolster its maritime profile in the Indo-Pacific. In August 2017, Pakistan announced the purchase from China of four modified Type 041 Yuan Class SSKs and technology transfer for the assembly of four more in the port city of Karachi, in a deal estimated at $5 billion. [28] The first four submarines were to be delivered by 2023, and the succeeding four, by 2028, this fleet designated to form the core of Pakistan’s offshore nuclear second-strike triad.

                    With regard to the Colombo port, New Delhi is anxious about Beijing’s influence over it. The port is considered vital for India, which lacks a transshipment port. Colombo fulfils that requirement, handling a staggering 48 percent of India’s international cargo. [29] The two other regional transshipment hubs for India fall far behind Colombo, with Singapore accounting for 22 percent and Malaysia’s Port Klang, 10 percent of India’s international cargo. [30, 31]

                    The US has hitherto sought to safeguard the Colombo port. Its Customs and Border Protection Agency, through its Container Security Initiative, has worked alongside the Sri Lankan Customs Central Intelligence Unit since 2005 to jointly target high-risk shipments destined for the US. The port also participates in the Department of Energy’s second line of defense Megaport Initiative that helps Sri Lanka detect radiological materials so as to prevent the spread of radiological weapons.

                    Sri Lanka has tried to compensate India for the Colombo and Hambantota ports coming under Chinese control by offering a controlling stake to the Airports Authority of India in Mattala Rajapaksa International Airport (MRIA), located 15 km from Hambantota. Opened in 2013, at a cost of $210 million and funded through high interest Chinese commercial loans, MRIA is Sri Lanka’s second international airport after Colombo’s Bandaranaike International Airport (BIA). [32] It is, however, running into losses owing to low demand for which it has been dubbed ‘the world’s emptiest airport’ and it is perhaps because of this that there has been no progress on the proposal with India. [33]

                    The Indian government has, however, extended financial assistance of over $45 million for upgrading Kankesanthurai harbour in the Jaffna district to a full-fledged commercial port towards Sri Lanka’s efforts to become a regional maritime hub. [34] The harbour and its berthing piers had been wrecked by the tsunami in 2004 and cyclone Nisha in 2008.

                    Also, in a stunning move that challenges China and smothers its hitherto single largest FDI into Sri Lanka (of the $1.4 billion Colombo financial city), India’s Accord Group recently signed a $3.8 billion deal with the Sultanate of Oman’s Ministry of Oil and Gas to build an oil refinery in Sri Lanka. [35] Ironically, the 585-acre facility will come up close to the Hambantota port from where it will be exporting the 9 million tonnes of refined products it will be producing annually upon its commissioning in 44 months. While the Chennai-based Accord Group will control 70 percent of the joint venture, the Omani ministry will hold the rest. However, Oman’s oil ministry subsequently denied its participation, leading Sri Lankan Board of Investment Director General Champika Malalgoda to reportedly affirm that the deal was “still going ahead”. [36]

                    Reacting to the media’s question on the proposed refinery, China’s Foreign Ministry spokesman Geng Shuang maintained that Beijing had an “open attitude” regarding India’s investments in the island nation. [37] “While we make our contribution to the development of Sri Lanka, China is not as narrow minded as you thought,” he added.

                    Colombo and New Delhi have also agreed to a 50-year lease agreement to jointly operate a strategic World War II-era oil facility in the Trincomalee harbour. It has been widely reported – but debunked officially – that the US, Japan and India are seeking to jointly develop Trincomalee port – which had been an Indian Ocean base for the Allied Forces – as a logistics hub for South Asia so as to counterbalance China’s presence in Hambantota and Colombo. [38] All three countries have sent ships to the Trincomalee harbor, in north-eastern Sri Lanka, on goodwill visits and India has stationed a naval officer there.

                    It will actually be a collaborative effort between Japan, India and Sri Lanka to expand this strategically-located port, at a cost between $90 million and $117 million. [39] Trincomalee is one of the three regional ports – the others being Dawei in Myanmar and Matarbari in Bangladesh – that Japan plans to develop, through yen loans, as part of Prime Minister Shinzo Abe’s ‘Free and Open Indo-Pacific Strategy’.

                    A Japanese Maritime Self-Defense Force destroyer was in the Trincomalee harbor when Japan’s Defense Minister Itsunori Onodera was visiting it, in what was the first such visit to Sri Lanka by a Japanese defense minister, and this was soon followed by USS Anchorage and embarked MEU. Sri Lanka’s navy also participated last August for the first time in Rim of the Pacific (RIMPAC), the world’s largest US Pacific Fleet-led international maritime warfare exercise, while Cooperation Afloat Readiness and Training (CARAT), which too is conducted by the US Pacific Fleet, was held at Trincomalee also for the first time in October 2017. [40, 41]

                    It has been reported that 450 naval vessels from 28 countries have called on Sri Lanka between 2008 and 2017, with Indian warships topping the list with 90 visits, followed by 65 from Japan and 30 from China. [42]

                    The US Navy has conducted three iterations aimed at promoting Sri Lanka as a regional hub for logistics and commerce. [43] Following two such initiatives at Colombo’s Bandaranaike airport and at Trincomalee last August, and at the airport last December, the US Navy performed the third such iteration for over a week last December at the Bandaranaike airport. Washington paid about $140,000 for the last cargo transfer. [44]

                    The iterations involve several US naval aircraft bringing in a variety of non-lethal supplies to the commercial airport. January saw the supplies being transferred between planes and then flown to the nuclear-powered supercarrier, USS John C. Stennis, at sea. These operations ensure that no cargo, military equipment or personnel remain in Sri Lanka after the completion of the cargo transfers.

                    A subsequent statement by the 7th Fleet maintained: “Taking advantage of a growing naval partnership with Sri Lanka, the Nimitz-class aircraft carrier USS John C. Stennis established a logistics hub in Sri Lanka to receive support, supplies and services at sea. [45] A C-2 Greyhound carrier onboard delivery aircraft accessed the hub’s strategic location before bringing supplies to John C. Stennis. Established on a temporary basis in the island nation, the hub provides logistics support to US Navy ships operating in the Indian Ocean.”

                    Lt. Bryan Ortiz, John C. Stennis’ stock control division officer, pointed out that the primary purpose of the operation was to provide mission-critical supplies and services to US Navy ships transiting through and operating in the Indian Ocean. “The secondary purpose is to demonstrate the US Navy’s ability to establish a temporary logistics hub ashore where no enduring US Navy logistics footprint exists,” he added.

                    In his testimony to the Senate Armed Services Committee, Admiral Davidson mentioned that USINDOPACOM would “regain the advantage” by positioning theater infrastructure that supported expeditionary capability that was agile and resilient and would serve as dynamic basing for the US maritime and air forces. [46]

                    Questions have been raised in Sri Lanka’s Parliament on the security impact of the use of the country’s commercial ports to conduct cargo transfers by the US military. An MP asked whether Colombo was contemplating signing a Status of Forces Agreement (SOFA) with Washington. [47] There were also references to the US’s $480 million grant assistance to Sri Lanka from the Millennium Challenge Corporation (MCC) for infrastructure development projects. [48] Both the US Embassy in Colombo and the Sri Lankan government have, however, specified that the two countries had not indicated any “interest, wish or desire to establish a base in Trincomalee, the Eastern Province, or any other part of Sri Lanka”. [49]

                    The developments in Sri Lanka and the littoral underscore the economic, political and strategic significance of the IOR that is traversed by major maritime trade routes that stretch from the Strait of Hormuz to the west to the Strait of Malacca in the east and freight a third of the world’s maritime cargo, two thirds of global oil and half the world’s container traffic. [50]

                    Over half the world’s oil and gas deposits are said to be located in this maritime expanse, which also accounts for all of India’s sea-borne trade, 80 percent of Japan’s oil supplies and 60 percent of China’s. [51] A US Naval War College-sponsored study cited IOR replacing the North Atlantic as the central artery of world commerce. [52] The region is also replete with nuclear-powered states, failed states, as well as those wracked by poverty, piracy, terrorism and fundamentalism.

                    Sri Lanka’s worth in this region is exemplified by Bethesda-based Small Wars Journal that cites its location as the most central maritime route between the Persian Gulf and Indonesia. [53] The country is additionally ideally positioned to access troubled spots throughout the IOR, as it can readily support operations in the Middle East, Afghanistan or South East Asia; evidenced by the Supreme Commander of Allied Forces in South Asia choosing Sri Lanka to locate his headquarters during World War II. The island nation, now weakened by terrorism and the unfortunate political divide, continues to sustain global interest, a victim of its own strategic allure.

                    Sarosh Bana is the Executive Editor of India’s oldest and most widely read national fortnightly on business, Business India, published out of Mumbai. He writes extensively on defense and security, policy, strategy, politics, foreign affairs, cyber security, space, energy, environment, food and agriculture, shipping and ports, and urban and rural development. He is also a frequent speaker on defense and security, foreign affairs and strategy, and his writings have been published in some of the leading publications, journals and think tanks across the world.

                    Photo by Dan Lundberg, published under Creative Commons with no changes made.

                    [1] BBC Asia, ‘Sri Lanka attacks: Death toll revised down by “about 100”’, BBC, April 2019, https://www.bbc.com/news/world-asia-48059328

                    [2] Sri Lankan Civil War, ‘Casualties of the Sri Lankan civil war’, Wikipedia, https://en.wikipedia.org/wiki/Sri_Lankan_Civil_War

                    [3] a. Press Trust of India, ‘Sri Lanka terror attacks: 11 Indians dead, Colombo confirms; number of deceased foreigners rises to 36’, Firstpost, April 2019,  https://www.firstpost.com/india/sri-lanka-terror-attacks-11-indians-dead-colombo-confirms-number-of-deceased-foreigners-rises-to-36-6517511.html; b. Lee Brown, ‘Four Americans confirmed dead in Sri Lanka terrorist attack’, New York Post, April 2019, https://nypost.com/2019/04/22/four-americans-confirmed-dead-in-sri-lanka-terrorist-attacks/; c. AP News, ‘The Latest: Japan confirms 1 fatality in Sri Lankan blasts, AP News, April 2019 https://www.apnews.com/fabb6b93861a46d1b7cef4983450ffb3

                    [4] Bureau of South and Central Asian Affairs, ‘U.S. Relations With Sri Lanka’, U.S. Department of State, January 2017, https://2009-2017.state.gov/r/pa/ei/bgn/5249.htm

                    [5] Shakthi De Silva, ‘Sri Lanka: Caught in an Indo-China “Great Game”?’, The Diplomat, February 2019, https://thediplomat.com/2019/02/sri-lanka-caught-in-an-indo-china-great-game/

                    [6] Heather Nauert, ‘Indo-Pacific Funding Announcement’, U.S. Embassy in Sri Lanka, August 2018, https://lk.usembassy.gov/indo-pacific-funding-announcement/

                    [7] P.K. Balachandran, ‘China Overtakes India as Sri Lanka’s Largest Trading Partner’, The Citizen, December 2017, https://www.thecitizen.in/index.php/en/NewsDetail/index/5/12511/China-Overtakes-India-as-Sri-Lankas-Largest-Trading-Partner

                    [8] Public Policy, ‘China’s Belt and Road Initiative: Why the Price is Too High’, Knowledge at Wharton, April 2019, https://knowledge.wharton.upenn.edu/article/chinas-belt-and-road-initiative-why-the-price-is-too-high/

                    [9] Vice President Mike Pence, ‘Vice President Mike Pence’s Remarks on the Administration’s Policy Towards China’, Hudson Institute, October 2018, https://www.hudson.org/events/1610-vice-president-mike-pence-s-remarks-on-the-administration-s-policy-towards-china102018

                    [10, 11] PTI, ‘China holds back Hambantota Port deal’s final tranche of $586 million to Sri Lanka’, The Economic Times, June 2018, https://economictimes.indiatimes.com/news/international/world-news/china-holds-back-hambantota-port-deals-final-tranche-of-585-million-to-sri-lanka/articleshow/64532449.cms

                    [12] Reuters, ‘Sri Lanka shift naval base to China-controlled port city’, Channel News Asia, July 2018, https://www.channelnewsasia.com/news/asia/sri-lanka-to-shift-naval-base-to-china-controlled-port-city-10492872

                    [13] Acting Principal Deputy Assistant Secretary State Thomas J. Vajda, ‘Opening Statement of Acting Principal Deputy Assistant Secretary of State Thomas J. Vajda at Pathfinder Panel Discussion’, U.S. Embassy in Sri Lanka, February 2019, https://lk.usembassy.gov/opening-statement-of-acting-principal-deputy-assistant-secretary-of-state-thomas-j-vajda-at-pathfinder-panel-discussion/

                    [14] P.K. Balachandran, ‘Call to probe Lanka’s trade with Singapore and UAE for black money transactions’, FT, December 2017, http://www.ft.lk/columns/Call-to-probe-Lanka-s-trade-with-Singapore-and-UAE-for-black-money-transactions/4-645300

                    [15] Daily News Sri Lanka, ‘China to invest & 1 billion in three 60-storey Port city buildings’, Daily News Sri Lanka, January 2018, http://www.dailynews.lk/2018/01/22/business/140557/china-invest-1-billion-three-60-storey-port-city-buildings

                    [16] PTI, ‘US looking for partnership not dominance in Indo-Pacific: Pompeo’, The Week, July 2018, https://www.theweek.in/news/biz-tech/2018/07/31/us-looking-for-partnership-not-dominance-in-indo-pacific-pompeo.html

                    [17] Admiral Philip S. Davidson, ‘Statement of Admiral Philip S. Davidson, U.S. Navy Commander, U.S. Indo-Pacific Command Before The Senate Armed Services Committee on U.S. Indo-Pacific Command Posture 12 February 2019’, Senate Armed Services Committee, February 2019, https://www.armed-services.senate.gov/imo/media/doc/Davidson_02-12-19.pdf

                    [18] Homi Kharas, ‘The Unprecedented Expansion of the Global Middle Class’, Global Econoy & Development Working Paper 100, February 2017, https://www.brookings.edu/wp-content/uploads/2017/02/global_20170228_global-middle-class.pdf

                    [19] Speakers at the Indo-Pacific Dialogue, ‘US ambassador wants “free and open” Asia’, Viet Nam News, December 2018, http://vietnamnews.vn/economy/481642/us-ambassador-wants-free-and-open-asia.html

                    [20] PTI, ‘Bangladeshi PM defends decision to buy two Chinese submarines’, The Tribune, July 2017 https://www.tribuneindia.com/news/world/bangladeshi-pm-defends-decision-to-buy-two-chinese-submarines/436039.html

                    [21] MAREX, ‘China and Myanmar Agree to $1.3 Billion Port Project’, The Maritime Executive, November 2018, https://www.maritime-executive.com/article/china-and-myanmar-agree-to-1-3-billion-port-project

                    [22] Sutirtho Patranobis, ‘Too close for comfort: China to build port in Myanmar, 3rd in India’s vicinity’, Hindustan Times, November 2018, https://www.hindustantimes.com/india-news/china-myanmar-ink-deal-for-port-on-bay-of-bengal-third-in-india-s-vicinity/story-Lbm4IwOMuqrNvXGv4ewuYJ.html

                    [23] Yuji Kuronuma, ‘India offers Maldives $1bn in loans to help repay China debt’, Nikkei Asian Review, November 2018,  https://asia.nikkei.com/Politics/International-relations/India-offers-Maldives-1bn-in-loans-to-help-repay-China-debt

                    [24] HT Correspondent, ‘Burdened by Chinese debt, Maldives gets $1.4bn aid from India’, Hindustan Times, December 2018, https://www.hindustantimes.com/india-news/burdened-by-chinese-debt-maldives-gets-1-4bn-aid-from-india/story-Pkj50rC9NPZJMUDpjQWkoI.html

                    [25] Rajat Pandit, ‘India expresses strong opposition to China Pakistan Economic Corridor, says challenges Indian sovereignty’, The Economic Times, July 2018, https://economictimes.indiatimes.com/news/defence/india-expresses-strong-opposition-to-china-pakistan-economic-corridor-says-challenges-indian-sovereignty/articleshow/57664537.cms

                    [26] Imtiaz Ahmad, ‘Pakistan to repay China $40 billion for CPEC projects: Report’, Hindustan Times, December 2018, https://www.hindustantimes.com/world-news/pakistan-to-repay-china-40-billion-for-cpec-projects-says-report/story-2NquR90EzRtyTj2DZ0l7GP.html

                    [27] Khaled A. Beydoun, ‘China holds one million Uighur Muslims in concentration camps’, Al Jazeera, September 2018, https://www.aljazeera.com/indepth/opinion/china-holds-million-uighur-muslims-concentration-camps-180912105738481.html

                    [28] Military, ‘Hangor New Submarines – Type 041 Yuan-class’, Global Security, October 2016, https://www.globalsecurity.org/military/world/pakistan/ss-new.htm

                    [29, 30, 31] M.K. Venu and Noor Mohammad, ‘Modi Wants India to be a Transshipment Hub. But can it Beat Sri Lanka and Singapore?’, The Wire International, June 2018, https://thewire.in/economy/modi-wants-india-to-be-a-trans-shipment-hub-but-can-it-beat-sri-lanka-and-singapore

                    [32, 33] Press Trust of India, ‘Sri Lanka reworking MoU to hand over world’s emptiest airport to India’, Business Standard, August 2018, https://www.business-standard.com/article/current-affairs/lanka-reworking-mou-to-hand-over-world-s-emptiest-airport-to-india-report-118080500478_1.html

                    [34] Business, ‘SL, India sign deal for $ 45 m financial assistance to develop Kankesanthurai Harbour’, FT Sri Lanka, January 2018, http://www.ft.lk/business/SL–India-sign-deal-for—45-m-financial-assistance-to-develop-Kankesanthurai-Harbour/34-647113

                    [35, 36] Nidhi Verma, ‘Oman denies it has agreed to invest in Sri Lanka oil refinery project’, Reuters, March 2019, https://in.reuters.com/article/sri-lanka-refinery-oman/oman-denies-it-has-agreed-to-invest-in-sri-lanka-oil-refinery-project-idINKCN1R11TK

                    [37] PTI, ‘China “not narrow minded” to oppose Indian investments in Lanka: Official’, The Economic Times, March 2019, https://m.economictimes.com/news/international/business/china-not-narrow-minded-to-oppose-indian-investments-in-lanka-official/articleshow/68510943.cms

                    [38] a. Nitin A. Gokhale, ‘With India’s Quiet Support, U.S., Japan Eye Trincomalee Foothold’, Strategic News International, January 2019, https://sniwire.com/neighbours/with-indias-quiet-support-u-s-japan-eye-trincomalee-foothold/; b. P.K. Balachandran, ‘US And Japan Look at Sri Lankan Port to Checkmate China’, The Citizen, August 2018, https://www.thecitizen.in/index.php/en/NewsDetail/index/5/14785/US-And-Japan-Look-at–Sri-Lankan-Port-To-Checkmate-China

                    [39] Neville Ladduwahetty, ‘Power rivalry in the Indian Ocean’, The Island, June 2018, http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=185557

                    [40, 41] ColomboPage News Desk, ‘USS Anchorage and 13th MEU Arrive in Sri Lanka’, ColomboPage, August 2018, http://www.colombopage.com/archive_18B/Aug24_1535114770CH.php

                    [42] Marwaan Macan-Markar, ‘China and US play the Great Game in South Asia’, Nikkei Asian Review, December 2018,  https://asia.nikkei.com/Politics/International-relations/China-and-US-play-the-Great-Game-in-South-Asia

                    [43, 44] Editor, ‘US Navy has bases in Lanka for non-lethal supplies and cargo transfers’, NewsIn Asia, January 2019, https://newsin.asia/us-navy-gets-bases-in-lanka-for-non-lethal-supplies-and-cargo-transfers/

                    [45] Grant G. Grady, ‘USS John c. Stennis Leverages Logistics Hub in Sri Lanka’, Commander, U.S. 7th Fleet, December 2018, https://www.c7f.navy.mil/Media/News/Display/Article/1706047/uss-john-c-stennis-leverages-logistics-hub-in-sri-lanka/

                    [46] Ibid.

                    [47] Ramesh Irugalbandara, ‘Details on secretive US-SL military agreement revealed’, News First, February 2019, https://www.newsfirst.lk/2019/02/22/details-on-secretive-us-sl-military-agreement-revealed/

                    [48] ColomboPage News Desk, Millennium Challenge Corporation approves $ 480 million grant to Sri Lanka to expand economic opportunities and reduce poverty’, ColomboPage, April 2019, http://www.colombopage.com/archive_19A/Apr26_1556286277CH.php

                    [49] FT Sri Lanka, ‘Government rejects reports of moves to set up US military base in Sri Lanka’, FT Sri Lanka, January 2019, http://www.ft.lk/front-page/Government-rejects-reports-of-moves-to-set-up-US–military-base-in-Sri-Lanka/44-671699

                    [50] PTI, ‘Countries in Indian Ocean responsible for its stability: Sushma Swaraj’, The Economic Times, July 2018, https://economictimes.indiatimes.com/news/defence/countries-in-indian-ocean-responsible-for-its-stabilitysushma-swaraj/articleshow/60311911.cms?from=mdr

                    [51, 53] David A. Anderson and Anton Wijeyesekera, ‘U.S. Naval Basing in Sri Lanka?’, Small Wars Journal, May 2011,https://smallwarsjournal.com/jrnl/art/us-naval-basing-in-sri-lanka [52] Keith Jones, ‘US moves to harness India to anti-China “pivot”’, World Socialist Web Site, March 2016, https://www.wsws.org/en/articles/2016/03/08/pers-m08.html

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