The Hydrocarbon-rich countries, Turkmenistan and Kazakhstan, are heading towards a close economic relationship with India. The Vice President Hamid Ansari stated that India has capacities, Turkmenistan and Kazakhstan capabilities and energy is the “prime factor”.

Signs show that Turkmen leader Gurbanguly Berdymukhamedov will eventually export some of Turkmenistan’s natural gas by way of the planned trans-Caspian pipeline. He invited energy companies from around the world to help develop Turkmenistan’s massive reserves of gas, saying international firms can propose “interesting initiatives that meet foreign requirements.” He is now advocating an “open door” policy.

Turkmenistan is making efforts to attract new investors, predominantly in the oil and gas industry. For the last two decades, under the former President Saparmurat Niyazov rule, Turkmenistan was practically detached from the outside world as a result of isolationist polices. The current president, Kurbanguly Berdymukhamedov, is showing willingness to join the international community.

Gazporom will begin buying gas from Uzbekistan, Kazakhstan, and Turkmenistan at European tariffs as of 2009 in accordance with a decision made by senior executives of Gazprom, Kazmunaigaz, Uzbekneftegaz, and Turkmengaz. Gazprom buys 55-60 billion cubic meters of gas from Central Asian countries mostly at the prices already set. East European Gas Analysis Director Mikhail Korchemkin claims that Central Asian gas will cost Gazprom about USD 8 billion this year.

Turkmenistan has pledged 500 tons of oil to Tajikistan in order to alleviate the heating crisis. The retail value of 500 tons of oil is nearly USD 385,000. Turkmenistan also sent a relief caravan to Afghanistan with 500 tons of diesel oil, 1000 tons of wheat flour and 900 tons of garments and blankets.

Turkmenistan will charge Russia nearly 50 percent more for its gas and accelerate construction on the Caspian Sea pipeline. The new deal between Russia and Turkmenistan is predicted to push up prices for the Ukraine, who in the past has had gas disputes with Russia. Gazprom, the state run export monopoly, will see the Turkmen gas price rise from the current USD100 per 1,000 cubic meters to USD130 in 2008 and eventually to USD150 by the end of 2008.

Dragon Oil Plc, a Dubai based oil producer, will invest USD600 million in Turkmenistan oil. Hussain Sultan, Chairman and CEO of Dragon, has said, “We plan to invest more than $600 million next year and produce about two million tonnes of oil.” Dragon’s main interests lie in the Caspian Sea.

ONGC, an Indian explorer of oil and natural gas, and Mittal Energy Ltd., have acquired in their joint venture a 30 percent exploration block in Turkmenistan. Maersk Oil, of Denmark, holds a 36 percent participating interest, and Wintershall, of Germany, has 34 percent. The Mittal-ONGC joint venture currently owns four oil and gas properties, including two deepwater exploration blocks in Nigeria and one producing in Syria.

Turkmenistan, formerly one of the most isolated states, will begin opening up. Saparmurat Niyazov’s death ended his rule and new leader, Kurbanguly Berdymukhamedov, has already moved to encourage foreign investment, lift both economic and social restrictions and liberalize the economy. MTS, a Russian telecom company, has plans to start offering its service in Turkmenistan. Turkmentelekom, currently the countries only internet provider, blocks numerous sites and only a few people use the service. MTS is planning on providing mobile internet service for Turkmen customers as soon as November

With two large economies eager to purchase its energy on either side, Turkmenistan is attempting to break Russia's control over its energy exports. With its massive amounts of natural gas reserves, Turkmenistan is becoming impossible to ignore. Turkmenistan is now trading on a larger market, with a pipeline deal to China; however, it must maintain its close ties with Russia. Gurbanguly Berdymukhammedov, Turkmen President, is open about seeking different exports routes, and along with foreign governments, considering four pipelines that omit Russia. While the old president made investments unstable, Berdymukhammedov is proving to be a more reliable and encouraging leader. While Russia currently recieves most of Turkmenistan gas exports, China is making the move to take Russia's spot as it already signed a contract with Turkmenistan to receive 30 billion cubic meters by the year 2010 through a pipeline expected to be operational by 2009.