The following news reports come from Turkmenistan.ru, a slick internet news site covering that Central Asian nation. However, in addition to the news covered in these two reports, it should also be noted that Senior Vice-Foreign Minister Ichiro Aisawa visited Turkmenistan in January of this year in order to build bilateral relations.

Turkmenistan-Japan Committee on Economic Cooperation to Meet in December 2005
(September 27, 2005)

This was agreed on Monday at a meeting between Turkmen President Saparmurat Niyazov and visiting Ashgabat chief corporate advisor of Japan's Itochu Corporation, co-chairman of the Turkmen-Japanese committee on economic cooperation, Minoru Murofushi.

As the Ashgabat correspondent of Turkmenistan.ru reports referring to the president’s press service, the sides discussed priority issues of the Turkmen-Japanese cooperation which, in both sides’ view, has great prospects.

In this connection, Saparmurat Niyazov emphasized the need to expand cooperation in the oil and gas sector inviting a potential partner to participate in modernization of the republic’s largest eastern oil refinery, the Seyidi refinery, and exploration of oil fields on the Caspian shelf. The Japanese guest expressed keen interest in effective cooperation in this sphere.

It was decided during the meeting that Turkmenistan-Japan Committee on Economic Cooperation would meet in December this year in Japan. Guichnazar Tachnazarov, deputy prime minister of Turkmenistan responsible for oil and gas sector, was appointed co-chairman of this committee from the Turkmen side, the president said.

As Minoru Murofushi said at the meeting with the head of state, the government and business circles of Japan were keen to establish close and mutually beneficial contacts with the Turkmen partners because of huge economic potential of Turkmenistan, flexible investment and tax policy and internal political stability.

Minoru Murofushi, former president of Itochu Corporation, has been permanent co-chairman of the Turkmen-Japan Committee since 1994. The committee boasts implementation of a number of projects in oil and gas, textile, transportation, healthcare and melioration sectors. In fact, Japanese companies participated in the construction of a textile complex in Ashgabat totaling over US $ 100 mln, a polypropylene plant (US $ 400 mln), a unit on oil refining and catalytic cracking (US $ 139 mln), the modernization of railway transport which was financed by the Japanese government (Yen 4034 mln).

In the end of the meeting with the Japanese businessman Saparmurat Niyazov signed a resolution initiating a contract between the Turkmen Ministry of Water Management and Itochu Corporation for the delivery of special equipment worth US $ 5 mln.

“Itochu Corporation” to Supply Road Construction Equipment Worth US $29 mln to Turkmenistan
(September 29, 2005)

The world famous Japanese “Itochu Corporation” will supply road construction equipment totaling some US $ 29 mln to Turkmenistan within a year. Turkmen president Saparmurat Niyazov signed a decree to this effect yesterday. Turkmenneftegazstroy state concern will sign a contract with the Japanese company for the supply of 104 units of equipment and spare parts for them.

As the Ashgabat correspondent of Turkmenistan.ru reports, the State fund for development of oil and gas industry and mineral resources is to finance the contract from the resources of Turkmenneft and Turkmengaz state concerns accumulated as a result of sale of crude oil, natural gas and their products (equal shares) with a grace period of one year since the date of shipment of road construction equipment through a letter of credit in the Turkmen state bank of foreign economic activity.

Equipment should reach Turkmenistan from May to October 2006.