Prices soar in Turkmenistan as Iran war continues

Prices are rising sharply in Turkmenistan after the war disrupted imports from neighbouring Iran, a major supplier of fruit, vegetables, construction materials and cigarettes. Retailers and consumers warn the shortages are already driving up costs.

Collateral damage

Prices have doubled in Turkmenistan’s capital, Ashgabat, according to market data and business owners.

Aman, a construction materials dealer in Ashgabat, told Reuters: “Stocks are rapidly depleting, and new shipments are not arriving. The outlook is paralysed and uncertain. We are currently selling Iranian goods at a higher price — 50–70% higher.”

Potatoes, cucumbers and fruit have doubled in price at Ashgabat bazaars as of Thursday, according to local market data. The Turkmen capital lies about 30 km (19 miles) from the Iranian border.

Economic uncertainty

Iran and Turkmenistan have a reciprocal trading relationship, with Turkmenistan - which has the world’s fourth-largest gas reserves - exporting electricity to Iran’s north-eastern provinces. In the past, it has also supplied some of its vast natural gas reserves to Turkey and Azerbaijan through gas-swap agreements with Iran.

Turkmen authorities have said the conflict in the Middle East is “regrettable.”

Turkmenistan has long adhered to strict neutrality in international affairs. However, its former president and “National Leader”, Gurbanguly Berdymukhamedov, congratulated Mojtaba Khamenei on his selection as Iran’s new supreme leader, according to state media.

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Turkmenistan Iran conflict Iran Middle East conflict warns of price hikes Gurbanguly Berdimuhamedov afford cost of living