It was not too long ago that Gazprom, the state-controlled energy conglomerate, was one of the Kremlin’s most potent geopolitical weapons. But those days now seem like a distant memory: Gazprom is a financial shadow of its former self.
Energy-poor Turkey stands to benefit from Moscow’s surprise decision to drop the $45-billion South Stream natural gas pipeline project, analysts say. At the same time, it raises questions about whether Turkey will become a pawn in the broader energy contest between Russia and the EU.
It has been a chastening few months for gas-rich Turkmenistan. Two long-standing energy buyers have indicated they will stop purchasing the country’s natural gas, potentially leaving Ashgabat dependent on Chinese demand.
The steep decline in global oil prices is stoking angst in Kazakhstan. Experts and officials alike say the government has ample resources to grapple with fiscal surprises. The real question is whether the political will exists for the government to take necessary measures.
It appears Turkmenistan is about to lose its second-best customer for natural gas, Iran.
Iranian Oil Minister Bijan Namdar Zanganeh said on August 11 that his country no longer needed gas from Turkmenistan. Zanganeh went so far as to say, "Iran is importing Turkmen gas just because it is important to promote political and economic relations with Turkmenistan."
Early this year, Tajikistan’s largest industrial enterprise sent home about a fifth of its workforce and cut wages by 30 percent for the rest. According to its own figures, the state-owned aluminum plant, Talco, lost over $40 million last year and hasn’t turned a profit since 2010.