Uzbekistan - The Times Of Central Asia

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Sustainable Aviation Fuel

Uzbekistan Airports Signs Sustainable Aviation Fuel Deal Tied to $6 Billion Biofuel Project

Uzbekistan Airports and Allied Biofuels FE LLC have signed a memorandum of understanding on the supply of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF) in Uzbekistan. The agreement outlines plans for cooperation on the supply of cleaner aviation fuel beginning in 2030. The move is part of Uzbekistan’s broader effort to position itself as a regional hub for sustainable aviation and low-carbon transport infrastructure. Under the memorandum, the two sides will work together to develop supply chains and infrastructure for SAF and e-SAF, which are intended to help reduce aviation emissions. Allied Biofuels is developing what it describes as Central Asia’s first integrated large-scale biorefinery. Once fully operational, the facility is expected to produce around 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. The project, estimated at $6.1 billion, is among the largest clean energy infrastructure initiatives announced in the region. According to the company, the refinery will operate using a 4.45-gigawatt renewable energy system supported by battery storage and green hydrogen production infrastructure. U.S.-based Plug Power has been selected as the preferred supplier of electrolyzer technology for the project. Javlonbek Umarkhodjaev, chairman of the board of Uzbekistan Airports JSC, said the partnership represents an important step toward modernizing the country’s aviation sector and exploring sustainable fuel alternatives. Alfred Benedict, general director of Allied Biofuels, described the memorandum as a major milestone for the company and said the cooperation could support the future development of cleaner air transport across Central Asia. Allied Biofuels said the project continues to receive support from Uzbekistan’s Ministry of Investment and Foreign Trade and the country’s Investment Promotion Agency. The memorandum follows an earlier announcement reported by The Times of Central Asia in April, when Uzbekistan signed a binding implementation agreement for the same $6.08 billion biofuel project in the Khorezm Region. The agreement was concluded in Perth, Australia, between Khorezm regional authorities and Allied Biofuels.

Middle Corridor

Opinion: A New Southern Gate – How the EU-Armenia Summit Unlocks a Critical Branch for the Middle Corridor

For the first time in its history, the European Union held a full summit with Armenia. The meeting, which took place in Yerevan on 4–5 May 2026, was not merely a diplomatic milestone for Armenia. It also sent a signal to governments thousands of kilometers away in Central Asia that the trade route linking Asia to Europe through the South Caucasus is becoming more real, and more politically backed, than ever before. The centerpiece of the summit saw the signing of a “Connectivity Partnership” between Brussels and Yerevan. The European Commission President, Ursula von der Leyen, described Armenia as "uniquely positioned" to connect Europe with the South Caucasus and Central Asia. Under the EU's Global Gateway program, investments in Armenia are expected to reach €2.5 billion. A further €3 billion is earmarked specifically for the Middle Corridor – the trade route that runs from China across Central Asia, over the Caspian Sea, through the South Caucasus, and into Europe. “We will support your integration into key transport networks like the Trans-Caspian Corridor. It is a route that is also of strategic importance for Europe, given the growing flows of trade between our two regions,” von der Leyen stated. A Route That Is Already Moving Fast The Middle Corridor, formally known as the Trans-Caspian International Transport Route (TITR), has grown at a pace that few predicted. Cargo volumes rose 70 percent in the first nine months of 2024 alone, reaching 3.4 million tons. By the end of that year, the total had climbed to 4.1 million tons – up from just 350,000 tons in 2021. The World Bank projects that the route could handle up to 11 million tonnes a year by 2030. It's important to maintain some perspective. These numbers are small fry when compared to the billions of tons of trade that moves between Europe and Asia by sea. However, the Middle Corridor does offer important diversification, particularly given the spillover effects of wars in the Middle East and piracy in the Red Sea. [caption id="attachment_48602" align="aligncenter" width="1274"] Image: Trans Caspian International Transport Route and it’s southern part, China-Kyrgyzstan-Uzbekistan Railway project. Source: middlecorridor.com[/caption] Where Uzbekistan Stands For Uzbekistan, the Middle Corridor is both an opportunity and a work in progress. In January 2025, President Mirziyoyev signed a decree to upgrade road and rail connectivity, and in September 2024, Tashkent co-founded the Eurasian Transport Route Association alongside Austria, Azerbaijan, China, Kyrgyzstan, Tajikistan, and Turkey. In December 2024, Uzbekistan sent its first block train all the way to Brazil – through Turkmenistan, Azerbaijan, and the Georgian port of Poti – proving the route is operationally viable. But costs remain a challenge. Shipping a 40-foot container via the Middle Corridor currently costs between $3,500 and $4,500, compared to $2,800–$3,200 on the Northern Corridor through Russia. Europe, meanwhile, accounts for only around 3 percent of Uzbekistan's exports and 13 percent of its imports — a share that Tashkent wants to grow significantly. The China–Kyrgyzstan–Uzbekistan (CKU) railway — a $8 billion, 573-kilometre project whose...

Asian Development Bank

ADB Annual Meeting in Samarkand Unveils Major Energy, Climate, and Development Initiatives

The Asian Development Bank’s (ADB) 59th Annual Meeting concluded in the historic Uzbek city of Samarkand after four days of discussions focused on energy connectivity, climate financing, and economic resilience across Asia and the Pacific. Held from May 3 to 6, the gathering brought together government officials, development institutions, economists, and private sector representatives at a time of growing geopolitical and economic uncertainty. It marked the second time Uzbekistan has hosted the ADB Annual Meeting, following the 43rd edition in Tashkent in 2010. A central announcement at the meeting was the unveiling of a broader $70 billion regional infrastructure program aimed at accelerating energy and digital connectivity across Asia and the Pacific. The initiative is structured around two major pillars: a $50 billion Pan-Asia Power Grid Initiative focused on cross-border electricity systems, and a $20 billion digital connectivity component aimed at strengthening broadband and data infrastructure across the region. Together, these programmes are intended to reduce energy costs, improve reliability, and deepen regional economic integration. The Pan-Asia Power Grid Initiative (PAGI) In his address to delegates, ADB President Masato Kanda noted that PAGI seeks to support more interconnected and resilient infrastructure systems. "To survive and thrive in this new era, we must build deeply connected and resilient systems," he said, adding that stronger regional grids and digital networks can help countries manage rising energy demand whilst also accelerating the transition to cleaner power sources. The initiative seeks to integrate around 20 gigawatts of renewable energy capacity and the develop enough transmission infrastructure to expand electricity access for up to 200 million people. ADB officials said the bank would use its role as a regional convener to bring together governments, regulators, and private investors to overcome barriers that often slow regional infrastructure projects. The bank pointed to earlier success stories, including the Bangladesh-India power grid interconnection and the Monsoon Wind Power Project in Laos, as examples of cross-border cooperation supported through blended finance mechanisms. [caption id="attachment_37211" align="aligncenter" width="1536"] Image: TCA, Stephen M. Bland[/caption] Climate and Food Security Concerns Climate and environmental financing also featured prominently during the Samarkand meetings. On May 5, the ADB announced that the German government had joined the bank’s Nature Solutions Finance Hub with €5.5 million ($6.5 million) in grant co-financing, some of which has been earmarked for sorely needed watershed rehabilitation in Uzbekistan. The discussions also reflected growing concern over global food security and supply chain vulnerabilities linked to the ongoing war in Iran. Qingfeng Zhang, Senior Director of ADB’s Agriculture, Food, Nature, and Rural Development Sector Office, warned that disruptions around the Strait of Hormuz were increasing the cost of everything from energy to insurance, freight to fertilizer – placing additional pressure on food systems across Asia and the Pacific, including Central Asia. Unlike the shock caused by Russia’s invasion of Ukraine, which directly disrupted grain and fertilizer exports, Zhang said the current crisis was affecting agriculture primarily through higher operating and transportation costs. The Strait of Hormuz handles roughly one-quarter of global seaborne oil...

Toktogul Reservoir

Kazakhstan, Kyrgyzstan, Uzbekistan Agree on Toktogul Water Releases

Energy and water ministers from Kazakhstan, Kyrgyzstan, and Uzbekistan signed a trilateral protocol in Tashkent on May 7 establishing agreed water release volumes and schedules from the Toktogul Reservoir for the next two months. The Toktogul Reservoir plays a central role in maintaining water and energy stability across Central Asia. The Toktogul Hydropower Plant, located on the Naryn River, the main tributary of the Syr Darya, is Kyrgyzstan’s largest power station and supplies around 40% of the country’s electricity. The reservoir serves a dual purpose: generating electricity for Kyrgyzstan while regulating water flows essential for downstream agriculture in Kazakhstan and Uzbekistan. During winter, Kyrgyzstan typically increases electricity generation to meet heating demand, often lowering reservoir levels and reducing the amount of water available for irrigation during the following spring and summer. According to Kazakhstan’s Energy Ministry, the newly signed protocol removes uncertainty for farmers in southern Kazakhstan at the start of the agricultural season and allows both Kazakh and Uzbek farmers to begin irrigation activities on schedule. To ensure stable water supplies throughout the remainder of the growing season, the three countries agreed to continue coordination in stages. The next ministerial meeting is scheduled for mid-June in Bishkek, where officials plan to finalize water release schedules for the critical summer months of July, August, and September. The agreement highlights the continued functioning of the region’s interstate water-energy exchange mechanism. Coordination over summer irrigation flows was preceded by extensive cooperation during the winter season. From September 2025 to April 2026, Kazakhstan supplied more than 1.5 billion kilowatt-hours of electricity to Kyrgyzstan, helping the upstream country reduce winter water releases for heating and preserve additional reserves in the Toktogul Reservoir for summer irrigation needs in Kazakhstan and Uzbekistan. According to Kyrgyzstan’s Deputy Energy Minister Altynbek Rysbekov, the Toktogul Reservoir held 7 billion cubic meters of water on April 1, 2026, down from 9.14 billion cubic meters on January 1 after the winter heating season. The reservoir’s so-called “dead water level,” the threshold below which turbines can no longer operate, stands at 6.5 billion cubic meters.

Digital Services Tax

Uzbekistan Collects $5 Million From Foreign Digital Companies in First Quarter

Foreign technology and digital service companies paid 65.7 billion Uzbek som ($5.1 million) in taxes in Uzbekistan during the first quarter of 2026, according to the country’s State Tax Committee. The figure represents an 81% increase compared to the same period in 2025, when foreign digital firms paid 36.2 billion som ($2.98 million) in taxes. The total value of electronic services provided by foreign companies in Uzbekistan also rose sharply, from 306.6 billion som ($25.2 million) in the first three months of 2025 to 552 billion som ($45.4 million) this year. The State Tax Committee said 89 foreign companies providing electronic services are currently registered as taxpayers in Uzbekistan. Among the largest taxpayers in the first quarter were Apple, which paid 16.1 billion som ($1.32 million) in taxes, followed by Google at 14.9 billion som ($1.23 million) and Meta at 13.9 billion som ($1.14 million). Other major contributors included Valve Corporation, which paid 8 billion som ($658,000), OpenAI with 2.5 billion som ($206,000), and Anthropic with 1.5 billion som ($123,000). Gaming and entertainment platforms also appeared among the top taxpayers. Midasbuy paid 1.3 billion som ($107,000), while TikTok, Booking.com, and Netflix collectively contributed more than 2 billion som ($165,000). Under Uzbek law, foreign legal entities providing electronic services must submit tax reports and pay taxes no later than the 20th day of the month following each reporting quarter. Previously, Kazakhstan reported that foreign digital platforms transferred nearly $18 million to the state budget in January 2026 alone through its digital services tax, commonly referred to as the “Google tax.” According to Kazakhstan’s State Revenue Committee, 120 foreign companies have registered as taxpayers there since the tax was introduced in 2022, generating a total of about $277.5 million in revenue.

Victory Day

No Tanks on Red Square as Moscow’s Victory Day Pull Fades in Central Asia

Russia’s Victory Day parade on May 9 is set to be more restrained this year, with tanks, armored vehicles, and missile systems absent from Red Square for the first time in nearly two decades. The Russian Defense Ministry cited the “current operational situation,” while the Kremlin blamed what it called Ukrainian “terrorist activity.” Russia also reported drone attacks aimed at Moscow in the days before the ceremony, and security around President Vladimir Putin has been tightened. The reduced scale of the parade carries a resonance beyond Russia. Victory Day remains one of the most emotionally charged dates in the post-Soviet calendar, including in Central Asia, where families still remember relatives who fought, died, or labored during World War II. But across the region, the holiday has increasingly been placed inside national calendars rather than left as part of Russia’s political script. The contrast with last year is sharp. In 2025, Moscow marked the 80th anniversary of Nazi Germany’s defeat with its largest Victory Day parade since the start of Russia’s full-scale invasion of Ukraine. Chinese troops marched on Red Square, Xi Jinping sat beside Putin, and foreign leaders attended from across Asia, Africa, Latin America, and the former Soviet space. Tanks, rocket launchers, missile systems, drones, and other military hardware rolled through the square. This year’s guest list is more limited. The Kremlin’s initial list of foreign delegations included leaders and senior figures from Belarus, Laos, Malaysia, Slovakia, the breakaway republics of Abkhazia and South Ossetia, and representatives from Bosnia and Herzegovina’s Republika Srpska. Attendance has also been hard to read. Earlier reports said Kazakhstan’s Kassym-Jomart Tokayev and Kyrgyzstan’s Sadyr Japarov were expected in Moscow, while the Kremlin’s initial published list of foreign guests did not include any Central Asian presidents. On May 8, however, Kazakh and Uzbek media reported that Tokayev and Uzbekistan’s Shavkat Mirziyoyev were traveling to Moscow for Victory Day events. The late confirmations complicate the picture, but they do not restore the full regional show of unity seen in the last two years, when all five Central Asian presidents were present at the Moscow parade. It does suggest, however, that Moscow’s political ownership of the date is less automatic than it once was. Victory Day, which commemorates the Soviet defeat of Nazi Germany in what Russia calls the Great Patriotic War, has long been one of the main rituals of modern Russian power. It draws large television audiences, fills public space with military symbolism, and presents the Kremlin as the guardian of a sacred national memory. The holiday speaks of sacrifice and family loss, but also of nationalism and state control over history. Putin has used that language repeatedly. On May 9, 2024, after appearing on Red Square in snowfall, he said Russia was going through a “difficult, milestone period,” and warned: “We will not allow anyone to threaten us. Our strategic forces are always in combat readiness.” In 2025, he used the 80th anniversary parade to link Soviet wartime memory to Russia’s current war, saying...