Chinese Trade Influence To Grow

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We expect Russia to remain Turkmenistan's largest consumer of gas over the medium term following a decision by both state's leaders to resume gas flows in 2010. However, with the concurrent inauguration of the Central Asian-China gas pipeline, and further Chinese investment within the energy sector expected going forward, we anticipate China to rival Russia's economic importance to Turkmenistan over the long term. As such, we highlight the potential for increasing geopolitical risks going forward.