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of June 15, 1995 No. 50-1

About country associations

(as amended on on August 7, 1996)

According to the Presidential decree of Turkmenistan "About creation of country associations" of June 15, 1995 based on defunct kolkhozes, sovkhozes, intereconomic and other agricultural enterprises agricultural production structures of new type - country associations are created.

This Law determines economic, legal and social basis of the organization and activities of country associations.


Article 1. Country consolidation

Country consolidation is the independent business entity who is the legal entity, created on voluntary basis from among persons, directly busy in the agricultural industry, according to the procedure, established by this Law and other legal acts of Turkmenistan.

Country associations can be created and act on the basis state, cooperative, mixed (integrated) and other patterns of ownership.

Article 2. Tasks of country consolidation

The main objectives of country consolidation are:

- production, conversion, procurement and realization of agricultural products;

- accomplishment of the state order on main types of products on contractual basis;

- expanded reproduction on the basis of rational use of the earth assigned to it and other natural resources;

- development and strengthening own production and material and technical resources, implementation of the latest technologies, effective use of the entered objects for conversion of agricultural raw materials and production on its basis of finished goods;

- improvement of working conditions and life, social security and material welfare of rural population;

- development of social infrastructure in the rural zone.

Article 3. Membership in collective of country consolidation

The full age citizens who are directly participating in productive activity of consolidation can be members of collective of country consolidation.

Membership in collective of country consolidation is voluntary and evolves from the submitted application.

The workers of health care, education, trade, service industry and other spheres who are not participating in agricultural production are not members of collective of country consolidation. Their employment relationships arise and are performed on the basis of employment contracts (contracts) with relevant organs of the local executive authority and self-government.

Members of collective of country consolidation have the right to conduct own peasant economy on contractual basis.

In case of the termination of membership in country consolidation the parcels of land on the virgin and other not used lands can be will at provided to the former members according to the legislation of Turkmenistan.

Article 4. Legislation on country consolidation

The relations connected with creation and activities of country consolidation are regulated by this Law, Standard regulations on country consolidation developed and approved by the Cabinet of Ministers of Turkmenistan, and also other acts of the legislation of Turkmenistan.


Article 5. Economic basis of activities

The economic basis of activities of country consolidation is constituted:

- the earth transferred by the state to use;

- fixed assets and other property;

- money and other financial assets;

- products made as a result of economic activity;

- the gained income;

- other material values acquired on the bases which are not forbidden by the law.

The earth, fixed assets and other property transferred by the state to country consolidation belongs to it respectively on right to use and complete economic maintaining and are indivisible.

The material values acquired by country consolidation at the expense of own means the gained income, and also products, being at the command associations, are its property.

Country consolidation in process of expansion of reproduction and increase in profit has repurchase right of the lands provided to it in long-term use.

Article 6. Financial basis of activities and credit relations

Financial resources of country consolidation are created for the income account, received from all types of activity, the credits, loans, investments and other receipts which are not forbidden by the legislation of Turkmenistan.

In the sphere of financial credit relations country consolidation independently uses the financial resources belonging to it and provides timely accomplishment of obligations by calculations.

Payments in the budget, and also contributions to off-budget funds are performed according to the legislation of Turkmenistan.

Article 7. Prices and pricing

Products made by country consolidation according to the state order are implemented on the state purchase prices established by the Cabinet of Ministers of Turkmenistan.

The list of the types of products realized on the state purchase prices is determined by the Cabinet of Ministers of Turkmenistan.

Products, being at the command country consolidation after accomplishment of the state order and other obligations, are implemented by consolidation independently on contract prices.

Article 8. Organization of economic activity of country consolidation

Country consolidation independently chooses the direction of the activities and plans it according to the state order for purchase of the main agricultural products taking into account requirements of health care system, education and other special needs, and also the prospects of own development.

The state order is created by the Cabinet of Ministers of Turkmenistan. For accomplishment of the state order of the ministry and department will organize ensuring country associations with the equipment, fertilizers, water resources, other necessary means on paid basis.

Country consolidation has the right to provide to members of consolidation the earth and other resources in lease on conditions and according to the procedure, stipulated by the legislation Turkmenistan.

Economic relations of production of country merging with the state, cooperative and other organizations, and also citizens are performed on contractual basis.

Country consolidation provides profitable functioning of production. In case of unprofitable activities, and also in the absence of opportunities of return of borrowed funds country consolidation can be announced by insolvent (bankrupt), and is liquidated by the act of the President of Turkmenistan.


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