Turkmenistan is identified as a challenging environment for foreign investments, according to a recent report from the US Department of State. The study underscores the high-risk nature of investing in the country, primarily due to comprehensive state control, widespread corruption, and inconsistent currency policies.
It has sparked concern among Turkmenistan’s government and affiliated business sectors. Key issues include the significant difference between the official and unofficial exchange rates. This disparity makes it difficult for investors to repatriate profits and convert local currency, which affects the reliability of economic data.
High-ranking officials have been actively discussing the findings, which they perceive as a significant critique. "This is a verdict," stated Serdar Aitakov, an expert on Central Asia. "Though a very belated one," he added, emphasizing the gravity of the assessment.
Despite Turkmenistan's position as the fourth largest holder of global gas reserves, it does not feature among the top ten gas producers. The discrepancy is attributed to the government's preference for financing projects independently, with operations and sales managed by state-owned enterprises.
International organizations such as the World Bank and the International Monetary Fund have expressed concerns about the accuracy of economic data from Turkmenistan. These concerns have been echoed by the United Nations Development Programme and the United Nations Population Fund, which faced delays in obtaining reliable census data.
There are concerns about the credibility of audits for Turkmenistan's gas reserves, particularly the Galkynysh fields. The British consulting firm Gafney, Cline & Associates, which annually updates these reserves, has only relied on data provided by Turkmen authorities without independent verification. "The loss of reputation by the Turkmen authorities is reaching critical limits," Aitakov observed. "Even long-held assertions of Turkmenistan's economic power are now being questioned."
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