Caspian Business Journal

Turkmenistan’s Commodity Exchange: Who, What and How

For Sale

The following description of the exchange and the procedures for becoming a broker on the Turkmenistan State Commodity and Raw Materials Exchange are provided by CBJ contributor and longtime author of the Turkmenistan Weekly Energy Review, Dowran Orazgylyjow. While oil and gas tend to receive all of the outside attention in Turkmenistan’s economy, there is another, much more dynamic, market functioning within Turkmenistan, which is attracting hundreds of businessman from around the globe. The Turkmenistan State Commodity and Raw Materials Exchange brings together both international and domestic buyers with finished products and raw materials produced by Turkmenistan’s various private and state held enterprises.  With a saturated home market in numerous consumer goods and domestically produced materials, there is an ample supply of goods up for sale on the Exchange with buyers from Dubai and Dehli to New York and London arriving for weekly tenders. In addition, many savvy Turkmen entrepreneurs participate in tenders to develop their own export trade channels throughout the region.

Introduction

The State Commodity and Raw Materials Exchange of Turkmenistan  was founded by the Decree of the President of Turkmenistan on July 29, 1994 and is a major economic institute of the country, carrying out a function of the state’s principal body to regulate export-import transactions. An organized mechanism of operation of the stock exchange has allowed it successfully to begin integrating into the international economic system.

Similar to other commodity exchanges in other countries, the spectrum of activity of the State Commodity and Raw Materials Exchange of Turkmenistan is wide ranging. It is a universal stock exchange, accepting and selling through tenders various commodities, with the exception of intellectual property, artwork and real estate.

According to a law of Turkmenistan “On Exchanges of Commodity and Raw Materials,” participants of the Exchange tenders can be enterprises and organizations of all forms of ownership. Citizens of Turkmenistan or other countries are allowed to participate in tenders by purchasing a broker spot or by concluding a service contract with existing brokers of the Exchange.

Apart from contracts involving payments in U.S. dollars, foreign participants of the exchange also have an opportunity to pay in the national currency of Turkmenistan, the manat, in closing a foreign trade contract.  This is done by putting proceeds from a sale of goods in the Turkmen market into a depositary account of one of Turkmenistan’s banks in manats. A depositary account gives a right to foreign participants of the Exchange to receive goods in Turkmenistan’s national currency.

An automated system of document circulation allows brokers at the stock exchange to supervise the passage of contracts and documents.  Trade of Turkmen goods in the world market still requires time and improvement of the country’s internal market, including an introduction of automation into all processes to meet modern standards.

At this juncture, domestic Turkmen goods are exported to more than 40 states throughout the world via exchange tenders, including Turkey, China, Russia, the United Arab Emirates, Iran, Germany, USA, Great Britain, Ukraine, and Switzerland. Basic articles of export include mineral oil, cotton fiber, domestic textile industry products (towels, terrycloth robes and sheets), and chemical products.

Recent Transactions on the Stock Exchange

The following list is partially taken from the Turkmenistan Weekly Energy Review and details recent transactions and the countries represented in bidding processes.

From the last week of May, 2010

The following transactions were concluded in the same time period in Turkmen manats:

The following numbered sections detail various processes and forms that are necessary to prepare to either register as a broker or a buyer on the Exchange.  Any individual can technically register to engage in trading activities on the Exchange.

I.          Registration Process: How

1. Write a reference letter to secure a broker spot on behalf of a company (free form);

2. After receiving a broker spot permission, fill out a form on a power of attorney for a broker and a registration card, complete with original seals and stamps;

3.  Pay for a broker spot $4.000 USD for a year;

4.  Submit documents with a company’s charter (a copy);

5.  A broker should provide a passport copy and a photo (3×4);

6. Fill out the “Committment” form, complete with the seals and signatures in original.

II.        Additional Form Samples

Доверенность

Настоящей доверенностью  организация (фирма) _________________________________   доверяет брокеру  представляющему фирму __________________________________________________________ в лице  (ФИО)______________________________________________  осуществлять сделки и заключать договора на Государственной товарно-сырьевой биржи Туркменистана.

Подпись брокера__________________________________________

Срок действия доверенности  один год.

Руководитель                                                         ФИО

III.

Регистрационная карта  брокерского места  за  №

Полное наименование организации (фирмы)_____________________________________________________________________________

Страна ____________________________________________________

___________________________________________________________

Город ______________________________

Адрес _____________________________________________________

Телефон ___________________________________________________

Банковские реквизиты:    ___________________________________

___________________________________________________________

Расчетный счет________________Код_________________________

Кор.счет___________________Налоговый код__________________

Руководитель                                                            Ф.И.О.

IV.

ОБЯЗАТЕЛЬСТВО

Полное наименование организации (фирмы)__________________

___________________________________________________________

Страна ____________________________________________________

В лице брокера №   __________

___________________________________________________________

(Ф.И.О.)

Компания ____________обязуется осуществлять свою деятельность в соответствии с правилами биржевых торгов, производить своевременную оплату годовых взносов и строгое соблюдение выполнения обязательств, по заключенным на торгах ГТСБТ сделкам.

Брокер_________________________________ представляющий

(Ф.И.О.)

вышеуказанную компанию, обязуется не представлять интересы другой компании на торгах ГТСБТ.

В случае не соблюдения или нарушения правил биржевой торговли,   брокер ________________________ не  может

(Ф.И.О.)

участвовать на торгах брокером от другой компании.

В случае нарушения и не выполнения условий по заключенным на торгах сделкам, компания обязуется исполнить решение, принятое  арбитражной комиссией ГТСБТ.

Руководитель

Компании                                                                            Ф.И.О.