Niyazov was quoted as saying that a new energy agreement with Turkey will be signed during a summit of Turcophone states to be held in April 2001. The long-planned summit of Caspian littoral states on the legal status of the Caspian Sea should take place in Turkmenistan in 2001. Russia, Azerbaijan and Kazakhstan, however, advocate dividing only the seabed and leaving the surface and waters in common use, while Azerbaijan opposes any modification of the existing median line dividing the Azerbaijan and Turkmen sectors. Turkmenistan's economy is based on the production of raw materials, principally oil, gas and cotton. In spite of enormous oil, gas and other mineral resources, the country has so far not been able to halt in 1998 a most dramatic recession.
Economic data are totally unreliable.
These factors have combined to lower the standard of living of a population that has already suffered significant falls in income. Chronic structural problems remain, although banks have been consolidated in an attempt to improve the fiscal sector. In October 2000 President Niyazov ruled out privatisation of the oil and gas sectors within the next 10-15 years. These would, he said, remain a key component of the country's economy and contribute funds to the social sector. Reserve levels and export earnings have fallen, whereas foreign liabilities have risen sharply.