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Tashkent International Investment Forum

Rail Reform and Regional Corridors Put Uzbekistan at the Center of Central Asia’s Logistics Map

At the Tashkent International Investment Forum, officials and transport executives discussed railway reform and new corridor projects, with private investment as a main point. World Bank Senior Transport Specialist Mansur Bustoni described rail as “essential” for Uzbekistan, which depends on land routes for access to seaports and export markets. The World Bank wants to help turn Uzbekistan Railways from a state monopoly into “a commercial bankable enterprise,” he told the forum. Uzbekistan Railways has about 4,700 route kilometers, according to Bustoni. The system carries around 60 million tons of freight and 15 million passengers a year and contributes about 8% of GDP. Much of that freight is linked to exports. The World Bank is supporting 44 activities across seven reform programs. Bustoni listed legal separation inside Uzbekistan Railways, financial reform, operational efficiency, and investment planning among the main areas. Each activity has been ranked by priority, he added. Tariff reform was one of Bustoni’s main topics. He called the proposed change “not a price hike.” The aim is to replace ad hoc increases with rules-based pricing. Cost-reflective tariffs would give the railway company more predictable revenue and reduce state cross-subsidies. Bustoni also cited capital-market plans. Uzbekistan’s infrastructure company is part of the National Investment Fund of the Republic of Uzbekistan (UzNIF), which he described as a $2.4 billion fund managed by Franklin Templeton, with a planned dual listing in London and Tashkent. The railway sector recorded a roughly $188 million net loss in 2023, reached break-even in 2024, and is expected to post a positive $138 million result in 2025, he added. [caption id="attachment_50833" align="aligncenter" width="2560"] Image: TCA[/caption] Transport Corridor Europe-Caucasus-Asia (TRACECA) Secretary General Jasurbek Choriyev linked corridor development to Uzbekistan’s national priorities. He cited double-digit growth in passenger air traffic over five years and 15 million tourists last year, attributing the figures to national data and analysts at Airports Council International and the World Bank. Uzbekistan’s aircraft fleet has expanded to more than 100 planes from about 40 to 50 in recent years. A target of 188 aircraft by 2030 could be reached earlier, Choriyev noted. Uzbek airlines are also carrying more freight on the China-Europe route, driven in part by e-commerce. Choriyev described rail as the backbone of national connectivity, carrying about 90% of internal and external traffic. He pointed to the China-Kyrgyzstan-Uzbekistan-Iran railway and gave 2030 as the expected completion date, with 2028 or 2029 possible. He also cited the Trans-Afghan corridor as a route to Pakistan. About 52% of Uzbekistan’s rail network is electrified, with a target of 70% by 2030. Innokenty Ivanov, a principal consultant at Freshfields, said Uzbekistan’s railway reform is creating legal routes for private investment through market mechanisms and public-private partnerships. The reform covers the reorganization of Uzbekistan Railways as a holding company and a legal framework for private investment and independent operation. Ivanov compared the process with Germany, where railway reform led to long-term contracts between the government and the infrastructure company. Financing tied to measurable targets gives investors more certainty...

Connectivity

EU Launches Platform to Mobilize Up to €2 Billion for Europe–Central Asia Connectivity

The European Commission launched a Connectivity Agenda Platform on June 23, 2026, and concluded statements of intent with international financial institutions expected to mobilize up to €2 billion ($2.3 billion) for transport, border-crossing and trade-facilitation projects across the Black Sea region and the South Caucasus. The initiative was unveiled at a high-level ministerial meeting in Brussels, hosted by European Commissioner for Enlargement Marta Kos, Commissioner for International Partnerships Jozef Síkela, and Commissioner for Sustainable Transport Apostolos Tzitzikostas. The meeting brought together transport ministers and senior officials from EU member states, as well as representatives from Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Türkiye, Ukraine, and Uzbekistan, alongside international lenders, to advance connectivity projects under the EU’s Global Gateway strategy. The new platform is designed to coordinate investments and policy actions across transport, energy, digital connectivity, and trade. Participants also agreed to improve the operational efficiency of the Trans-Caspian Transport Corridor, a wider framework that includes the Trans-Caspian International Transport Route, or TITR, also known as the Middle Corridor. The route links China and Europe through Central Asia and the South Caucasus, offering an alternative to transport routes crossing Russia. The European Commission said the expected financing would support transport infrastructure, border-crossing modernization, and trade-facilitation projects aimed at improving freight movement across the corridor. “The Trans-Caspian Transport Corridor is becoming a vital bridge between Europe and Asia,” Síkela said, adding that the investments would help make the route faster, more reliable, and better integrated. Tzitzikostas said stronger transport links were critical for economic competitiveness and regional resilience. The platform’s launch came during Kazakh President Kassym-Jomart Tokayev’s official visit to Brussels, where he met with European Council President António Costa and European Commission President Ursula von der Leyen. In an EU–Kazakhstan joint statement, the leaders reaffirmed the strategic importance of the Trans-Caspian corridor and pledged deeper cooperation under the EU’s Global Gateway strategy. They also highlighted the EU’s role as Kazakhstan’s largest trade and investment partner and agreed to deepen cooperation in critical minerals, energy, transport, digitalization, and emerging technologies. Speaking at the Kazakhstan-EU roundtable in Brussels, Tokayev said Kazakhstan was investing heavily in infrastructure to position itself as a regional logistics hub connecting Europe, Central Asia, China, the Caucasus, and the Middle East. According to Tokayev, cargo volumes along the Middle Corridor have risen fivefold over the past six years, from 0.8 million tons to 4.1 million tons annually, with Kazakhstan targeting a capacity of 10 million tons. He said Kazakhstan has invested more than $35 billion in transport and logistics infrastructure over the past 15 years, with the Caspian ports of Aktau and Kuryk serving as major transit gateways. Tokayev also welcomed logistics agreements worth nearly $1 billion signed on June 23 by the Development Bank of Kazakhstan: one with the European Investment Bank, and a separate agreement with a banking syndicate including Commerzbank, JPMorgan Chase, and Standard Chartered, backed by guarantees from the Multilateral Investment Guarantee Agency (MIGA). A day earlier, Kazakhstan and European partners announced four transport-related agreements worth...

World Cup 2026

World Cup: Ronaldo Makes History as Portugal Rout Uzbekistan 5-0

The Group K match between Uzbekistan and Portugal in Houston turned into a record-breaking night for Cristiano Ronaldo, as the European side coasted to a 5-0 victory. Portugal and Uzbekistan had both made unconvincing starts to the tournament. Uzbekistan, playing at the World Cup finals for the first time, lost 3-1 to Colombia. Portugal, meanwhile, dominated their match against DR Congo but failed to hold on to their lead and drew 1-1. They were in no mood to drop more points against the World Cup debutants. Before the match, Portugal head coach Roberto Martinez made it clear that he did not regard his team’s opening result as a setback. “After the draw with DR Congo, nothing changed for us: there are three matches in the group stage, and the first one is part of the process,” the Portugal coach said. Uzbekistan head coach Fabio Cannavaro, for his part, said his players would try to minimize the mistakes that led to their defeat against Colombia. “Our only way to achieve a positive result is through tactics, discipline, and hard work on the pitch,” Cannavaro said. In practice, however, Cannavaro’s tactics did not work, and it was a case of “Houston, we have a problem” as Portugal pinned their opponents back from the kick-off. It took only six minutes for Ronaldo to score the first goal against Uzbekistan, finishing a cross into the penalty area. With that goal, Ronaldo became the second-oldest goalscorer in World Cup history, behind Cameroon’s Roger Milla, who scored his final World Cup goal at the age of 42. The Portugal captain, 41, became the first player to score at six World Cups and moved past Eusebio as Portugal’s all-time leading World Cup scorer. Ten minutes later, Portugal doubled their lead with a cleverly worked free kick. At first, it looked as though Ronaldo was taking an age to prepare to shoot, but Nuno Mendes instead struck the ball, catching Uzbekistan goalkeeper Abduvohid Nematov by surprise. After that, Uzbekistan became slightly more active in attack. Midway through the first half, Azizjon Ganiev tried his luck from long range, sending the ball into the top corner of Portugal’s goal. But Uzbekistan’s celebrations did not last long: after a VAR review, the referee disallowed the goal for a foul by Abbosbek Fayzullaev on João Cancelo in the build-up. Portugal then quickly took the game beyond Uzbekistan’s reach, and near the end of the first half Bruno Fernandes delivered a precise pass to Ronaldo, who was left unmarked in the penalty area and calmly shot into the bottom corner. Portugal eased the pace slightly in the second half but still managed to score twice more. Portugal’s fourth came on the hour, when a Bruno Fernandes corner was diverted in for an Abduvohid Nematov own goal. Late in the match, substitute Rafael Leao picked up a loose ball near the edge of the penalty area and, without hesitation, struck a powerful and accurate shot into the top corner to make it 5-0....

Water Security

Opinion: The Amu Darya Stress Test – Uzbekistan, Turkmenistan, and the Politics of Agricultural Adaptation

Central Asia’s water crisis is usually discussed as a problem of rivers, reservoirs, and diplomacy. But in 2026, the Amu Darya is also becoming something else: a test of state adaptation. The river basin entered the irrigation season under acute pressure. According to data cited by Kabar, the flow of the Amu Darya stood at only 66.8% of its normal level as of February 11, compared with 101.8% a year earlier. The Times of Central Asia previously reported that the river’s flow could fall to around 65% of its historical norm, raising risks for food security and agriculture across downstream states. Meanwhile, Afghanistan’s Qosh-Tepa Canal is advancing. The canal, one of the Taliban government’s most ambitious infrastructure projects, is designed to divert water from the Amu Darya to irrigate large areas of northern Afghanistan. Carnegie Politika has estimated that, once fully operational by 2028, it could take up to 10 cubic kilometers of water annually from the river. For Uzbekistan and Turkmenistan, the implications are direct. Both rely heavily on Amu Darya water. Both inherited agricultural systems shaped by Soviet-era irrigation, cotton production, and centralized planning, and both are now facing a combination of climate stress, upstream extraction, and aging water infrastructure. Yet their responses are increasingly different. The emerging contrast is not simply between two agricultural policies; it is between two institutional logics: adaptation and control. Uzbekistan’s Adjustment Strategy Uzbekistan is one of the most exposed countries in the region. Its population is large, its agriculture remains water-intensive, and some of its most vulnerable regions, including Khorezm and Karakalpakstan, sit near the lower reaches of the Amu Darya. For decades, the old model relied on large-scale irrigation, cotton, rice, and the assumption that water would continue to move through the regional system much as it had before. That assumption is now weakening. Tashkent’s response remains costly and far from complete. Uzbekistan still faces serious water losses, degraded land, salinization, and uneven implementation of reform. But the direction of travel is visible: the state is trying to reduce exposure by changing crops, infrastructure, and diplomatic behavior. Rice is one example. Traditional flooded rice cultivation is extremely water-intensive, and water shortages have already pushed some Uzbek rice farmers away from traditional Amu Darya regions toward areas with more stable access to water. Uzbekistan has also begun experimenting with less water-intensive methods. In Karakalpakstan, UNDP has supported the introduction of upland rice, which can reduce water consumption by up to 40% compared with traditional rice cultivation. Separately, Uzbekistan has announced plans to expand resource-efficient rice cultivation, including drip irrigation and drought-resilient rice varieties. The state is no longer treating the old water-intensive model as untouchable. In 2026, Uzbekistan allocated significant public financing for water-saving technologies. Government-linked reporting has described plans to expand drip irrigation, sprinkler systems, and laser land leveling across hundreds of thousands of hectares, with a broader target of expanding water-saving technologies to 3.5 million hectares by 2028. Laser leveling may sound technical, but its use reflects a shift from simply demanding more...

Middle Corridor

Kazakhstan and European Partners Announce $462 Million Middle Corridor Agreements in Brussels

Kazakhstan and its European partners unveiled four transport deals worth a combined $462 million on June 22, giving President Kassym-Jomart Tokayev’s visit to Belgium a concrete outcome on Eurasian connectivity. The package was presented at the business conference “Strengthening EU-Kazakhstan Connectivity: Perspectives and Strategic Potential of the Middle Corridor.” The Trans-Caspian International Transport Route, also known as the Middle Corridor, is a multimodal transport corridor linking China and Europe through Central Asia and the South Caucasus, offering an alternative to routes that pass through Russia. The conference was organized by Kazakhstan Temir Zholy, Kazakhstan’s national railway operator, and brought together representatives of the European Commission, the European Parliament, international financial institutions, and major European transport and logistics companies, including DHL Global Forwarding, Alstom, DB Cargo, HHLA International, Rhenus Logistics, Hellmann Worldwide Logistics, Ahlers Logistics, and A.P. Moller-Maersk. The conference focused on strategic development priorities for the Middle Corridor, including increasing the capacity of the Trans-Caspian International Transport Route, modernizing railway, port, and terminal infrastructure, digitalizing logistics processes, and developing sustainable supply chains across Eurasia. The four documents, presented as a $462 million package, aim to strengthen transport connectivity between Europe and Asia and further develop the Trans-Caspian route. Kazakhstan’s Ministry of Transport and SITA, a global provider of information and telecommunications solutions for the aviation industry, signed a memorandum of cooperation on the digitalization of state airports, including biometric identification. National road operator QazAvtoZhol and the European Bank for Reconstruction and Development signed a loan agreement for the Aktobe-Ulgaisyn road project. The Aktobe-Ulgaisyn project covers a 234-kilometer section of the Western Europe-Western China corridor and is intended to improve regional and transit connectivity. KTZ Express, a subsidiary of Kazakhstan Temir Zholy, signed an agreement with Midia Marine Terminal for a joint project in Romania’s Port of Midia. The project aims to expand Black Sea route infrastructure and improve cargo handling efficiency. In addition, KTZ Express and A.P. Moller-Maersk agreed to cooperate on container shipping along the Trans-Caspian International Transport Route and to attract additional cargo volumes to the route. Speaking at the conference, Kazakhstan’s Deputy Foreign Minister Arman Issetov stressed that the route has evolved far beyond a traditional transit corridor and is increasingly becoming a major geo-economic project serving the interests of both Central Asia and Europe. He said that amid shifting global supply chains and growing demand for reliable and diversified transport routes, Kazakhstan continues to advocate for open, resilient, and mutually beneficial connectivity between East and West. Particular attention was given to the complementarity between the Trans-Caspian International Transport Route and the European Union’s Global Gateway initiative. Under this strategy, the Trans-Caspian corridor has become a priority for strengthening sustainable connectivity between Europe and Central Asia, with Kazakhstan playing a central role as a major Eurasian transport hub. At the Third National Workshop of the Trans-Caspian Transport Corridor Coordination Platform in Astana on June 3, EU Ambassador to Kazakhstan Aleška Simkić said: “Through our €30 million Trans-Caspian Transport support program and other projects, the European Union supports...

Nuclear Power

Central Asia’s Nuclear Push: Uzbekistan Starts Construction as Kazakhstan Plans at Least Three Plants

Uzbekistan has poured concrete for its first nuclear power plant, while Kazakhstan has signed a $16.5 billion agreement for a two-reactor facility near Lake Balkhash and approved a site for a second plant. Kazakhstan's long-term strategy calls for at least three nuclear power plants by 2050, with a fourth possible. Both governments are presenting nuclear power as a way to meet rapidly growing electricity demand and strengthen energy security. Yet the projects are advancing at different speeds and are reviving questions over water use, cross-border safety, financing, and long-term reliance on Russian technology and credit. Uzbekistan Moves Into Construction On June 4, 2026, Uzbek President Shavkat Mirziyoyev and Russian President Vladimir Putin launched construction by video link. Rafael Mariano Grossi, director general of the International Atomic Energy Agency, also took part. The first nuclear-grade concrete was poured overnight from June 4 to June 5 for the foundation slab of the first RITM-200N small modular reactor unit in the Forish district of the Jizzakh region. Uzatom subsequently classified the site as a nuclear power plant under construction. The facility is one plant with four planned reactor units: two large VVER-1000 units and two smaller RITM-200N units, each rated at 55 MW. Together, they would provide more than 2.1 GW of installed capacity. The present configuration is the latest version of a project that began with a 2017 peaceful-use agreement and a 2018 plan for two large reactors. In 2024, the focus shifted to six small reactors, before the design changed again in 2025 to the mixed large-and-small format now under construction. Uzbek and Russian projections put annual generation at about 17 billion kWh, or roughly 15% of future national demand. The current schedule envisages the first small unit reaching criticality in late 2029, with the large reactors expected to be commissioned in 2033 and 2035, although Uzatom has said final dates depend on outstanding contract arrangements. The project's stated base price is $9.5 billion, and Tashkent is seeking loans for most of the cost. Those financing terms, along with the final allocation of construction and operating risk, remain central to the project's viability. Water and Cross-Border Concerns The plant will stand near Lake Tuzkon in the Aydar-Arnasay lake system, about 40 kilometers from Kazakhstan's border. That proximity has made what is formally an Uzbek project a regional issue. Residents and environmental advocates in southern Kazakhstan have raised concerns about accident preparedness, radioactive waste, and possible pressure on already stressed water systems. Aiman Tleulesova, national coordinator of the Central Asian Regional Water Network, has argued that reactor cooling could require greater discharges into Lake Tuzkon and additional withdrawals linked to the Syr Darya system. In her assessment, that could intensify competition for irrigation water in Kazakhstan's Turkestan and Kyzylorda regions. These are concerns raised by specialists and campaigners, rather than established measurements of the completed plant's impact, but they require a quantified response because water scarcity is already a recurring regional problem. Uzbekistan held public hearings on the environmental impact assessment in...