Crisis-hit Turkmenistan entirely scraps free gas, water and power

Crisis-hit Turkmenistan entirely scraps free gas, water and power
Baking bread in Bai Bazaar, Dashoguz, northern Turkmenistan. Officials have introduced passport-based bread rationing amid the country's deteriorating economic situation. / David Stanley.
By bne IntelliNews September 27, 2018

The remnants of Turkmenistan’s three-decades-old free and discounted gas, electricity and water programme for its population are to be eliminated following the signing of an austerity decree by Turkmen President Gurbanguly Berdymukhammedov.

The remote and tightly controlled Central Asian nation—which according to some reports has slipped further into an economic crisis this year, with the introduction of passport-based bread rationing one indication of its severe difficulties—has been slowly winding down the programme, decreasing the amount of subsidised utilities available per household. The decree appears to put a complete stop to the subsidies.

The move is the latest radical measure introduced by the Turkmen government to rescue the country’s budget. For several years it has been hit by over-reliance on dwindling natural gas exports—Russia stopped buying gas from Turkmenistan in 2016, leaving China as the only major customer—and Berdymukhammedov’s dubious spending habits. The Turkmen economy is undoubtedly crisis-ridden and hard-currency-strapped.

Measures undertaken by the government include completely suspending Visa cards; making contributions to Turkmenistan’s pension fund by business owners mandatory from 1 January; and even imposing more fines on car owners and Turkmen fortune tellers, whose occult services are popular in Turkmenistan.

The official reason for the latest decision was cited as the “further development of free market relations in Turkmenistan’s economy”.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Russia for first time overtakes Turkmenistan in gas exports to China

Russia in February for the first time overtook Turkmenistan on a monthly basis to become the largest pipeline supplier of natural gas to China, according to General Administration of Customs of China ... more

Tashkent announces plan for Uzbekistan-Turkmenistan free trade zone

An Uzbekistan-Turkmenistan free trade zone (FTZ) is to be established in Shovot district of Uzbekistan's northwestern Khorezm region, Trend reported on February 29. According to a presidential ... more

Trade between China and four of five “Stans” expands at rapid rate in 2023

Trade between China and the countries of Central Asia expanded at a rapid rate in 2023, with the exception of Turkmenistan, according to data published by China’s customs agency, or GACC. ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    8 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. Europe unlikely to tackle Russian LNG imports anytime soon
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    26 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss