Private companies in Turkmenistan have significant price advantages over their foreign counterparts.
This was stated in an exclusive interview with Trend by Eric Livny, head of the European Bank for Reconstruction and Development (EBRD) in Turkmenistan.
He noted that thanks to government subsidies, energy, water and land are available at very low prices or even free of charge. ‘The cost of electricity for Turkmen companies is about $0.36 per 100 kWh.’ Petrol also costs only 7 US cents. Regarding labour costs, Livny noted that the monthly salary of workers in Turkmen factories ranges from $100 to $250.
He emphasised that such conditions contributed to the rapid growth of import substitution-oriented industries, which soon shifted their focus to exports. ‘Most companies were created to replace imports, but due to the limited domestic market, they quickly began to focus on exports,’ Livny noted. Competitive industries include plastic packaging, greenhouse agriculture and construction materials.
