The country maintains one of the most restrictive trade and investment environments in Central Asia, with state dominance, non-tariff restrictions, and regulatory opacity acting as primary obstacles. Slow, bureaucratic customs procedures seriously inhibit trade. When the basis of the consignment is a contract but not a paid invoice, Turkmenistan requires that export and import contracts be registered at the State Commodity and Raw Materials Exchange (SCRME). The contract registration procedure at SCRME includes a justification of prices. The procedure applies not only to contracts signed at SCRME, but also to contracts signed between third parties. The contract’s feasibility is also scrutinized by the Supreme Chamber of Control. All import contracts must be registered before goods are delivered to Turkmenistan. Contract registration is a cumbersome process, involving approval from various agencies and ministries. 

Investment projects, including civil construction projects, are required to be registered at the Ministry of Finance and Economy. Turkmenistan is a Party to the 1995 Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID), and in May 2022 has acceded to both the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (also commonly known as the “New York Convention”) and the United Nations Convention on Contracts for the International Sale of Goods (the “CISG”). 

The commercial law enforcement system includes the Arbitration Court of Turkmenistan which tries 13 categories of disputes, both pre-contractual and post-contractual, including taxation, legal foundations, and bankruptcy issues. We urge U.S. companies to include an international arbitration clause in their contracts, as political considerations still influence local courts. Several foreign companies have pursued international arbitration against the Turkmen government through the World Bank’s International Center for Settlement of Investment Disputes and the Arbitration Institute of the Stockholm Chamber of Commerce. Turkmenistan’s restrictive visa regime and taxation policy are also difficult issues for companies to overcome.

Currency convertibility and financial barriers further complicate trade. The Turkmen manat is non-convertible, and all transactions must be processed through state banks, making it difficult for U.S. firms to repatriate profits or operate on open-market terms. Customs clearance is frequently cited as slow and non-transparent, requiring extensive paperwork and often the use of local agents.

Finally, the unpredictable policy environment in Turkmenistan increases business risk. Sudden regulatory changes, such as import bans or shifts in licensing rules, are not uncommon and can disrupt long-term planning for exporters. Public procurement practices also lack transparency, with tenders often favoring local or long-established foreign partners.