Uzbekistan - The Times Of Central Asia

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С5+1

Opinion: C5+1 in Samarkand: What Uzbekistan Expects and What Washington Wants

U.S. Secretary of State Marco Rubio has arrived in Uzbekistan with a delegation representing more than 200 American companies. He is attending a C5+1 ministerial meeting with the foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The agenda includes regional connectivity, energy security, trade, private investment, and economic modernization. The visit brings the format back to its birthplace. The first C5+1 ministerial meeting was held in Samarkand on November 1, 2015, with then-Secretary of State John Kerry. The November 6, 2025, summit in Washington gave the relationship a substantial commercial dimension. Uzbekistan and the United States announced economic agreements and trade contracts worth approximately $34.5 billion. President Donald Trump also said Uzbekistan intended to purchase and invest more than $100 billion in the United States over the following decade. Samarkand is now hosting a ministerial meeting accompanied by a large business delegation. The immediate question is how much of the previously announced portfolio has moved toward financing and implementation. In late September, Uzbekistan's Minister of Investment, Industry, and Trade, Laziz Kudratov, valued the project portfolio with the United States at $35 billion, with approximately $7 billion already completed. On that accounting, about $28 billion remains. In my assessment, the strongest overlap between American and Uzbek interests lies in processing critical minerals inside Uzbekistan, using American financing and technology to serve international supply chains. Washington wants alternative sources of strategic materials. Tashkent wants investment in industrial production rather than simply exporting raw materials. Their positions are less closely aligned on technology and relations with Iran. Uzbekistan seeks access to American artificial intelligence infrastructure while maintaining cooperation with China. It also regards Iran as an important transit partner. Washington's approach to sensitive technologies and sanctions could complicate both ambitions. Another Uzbek priority is ending the application of the Jackson–Vanik Amendment to Uzbekistan, a U.S. trade-law provision dating from 1974 that continues to affect the legal framework for bilateral commerce. Rubio can support its repeal, but Congress must make the decision. Investment Deals The C5+1 format has become more commercially focused. At the Washington summit, the U.S. Department of Commerce organized a dedicated venue for business agreements and announced more than $25 billion in commercial deals involving the five Central Asian countries. Since the Washington summit, Uzbekistan has developed additional channels for economic cooperation with the United States. A bilateral Business and Investment Council has brought together officials and business representatives. Cooperation has also expanded into critical minerals, energy, infrastructure, and advanced manufacturing. In June 2026, Uzbekistan's Ministry of Investment, Industry, and Trade, its Fund for Reconstruction and Development, the U.S. International Development Finance Corporation (DFC), and the Export-Import Bank of the United States (EXIM) announced a joint investment platform. Uzbekistan has also adopted a critical minerals development program for 2026–2030, covering 120 projects valued at $4.2 billion. The first stage includes 12 projects worth $166 million, with plans to produce high-purity selenium, tellurium, and rhenium. These plans reflect Tashkent's industrial priorities. Uzbekistan wants foreign partners to help build processing facilities and...

IT Industry

IT Park Uzbekistan Named Asia-Pacific’s Best Knowledge Zone

IT Park Uzbekistan won the Knowledge Zone of the Year – Asia-Pacific category at the Global Free Zones of the Year Awards 2026, organized by fDi Intelligence, a publication of the Financial Times Group. The awards assess economic zones on their ability to attract businesses and investment. The publication considered 16 knowledge zones worldwide, with Dubai Silicon Oasis in the United Arab Emirates winning the global title. According to Uzbekistan's Ministry of Digital Technologies, IT Park has more than 4,100 resident companies, including over 1,200 with foreign participation. Together, they employ more than 56,000 people. More than 1,100 companies export services to 102 countries, while IT Park companies exported $392.5 million in services in the first half of 2026, an increase of $90.3 million compared with the same period last year. IT Park statistics for the first half of 2026 show that North America was the largest export market for its resident companies, accounting for 54% of exports. Commonwealth of Independent States countries and other markets accounted for 22%, the European Union and the United Kingdom for 16%, and the Middle East and North Africa for 8%. In 2017, the export network covered just eight countries. The government has also invested in technology training. According to official figures, 1.7 million young people have participated in the One Million Uzbek Coders program, while 1.3 million have taken part in Five Million AI Leaders, an initiative focused on artificial intelligence (AI). More than 18 billion Uzbek soums (approximately $1.5 million) have been allocated to reimburse expenses for international information technology certification and training, benefiting 4,926 young professionals. Another 3.17 billion soums (approximately $263,000) was provided to educational institutions through the IT Talents program for training graduates who secured jobs with companies exporting digital services. In late 2025, the government launched the AI initiative, which provides free online courses. Universities are also establishing AI laboratories, with 20 currently operating. Other initiatives support young people and women in technology, including the ICT4Girls programming competition and startup incubators. Based on its Global Startup Ecosystem Index 2026, StartupBlink named Uzbekistan Country of the Year and identified it as the world's fastest-growing startup ecosystem. Its score in the ranking increased by 227.3% over the previous year, reflecting improvements in measures such as startup activity and the business environment rather than growth in employment or revenue. The country climbed 31 places over two years to rank 79th globally, while Tashkent placed 229th among cities. Analytics platform Dealroom estimated the combined value of the country's venture-backed startups at $4.3 billion. What remains unclear is how many participants in the government's training programs go on to find work in the technology sector. The 56,000 people employed by IT Park companies represent only part of the industry, while the training initiatives cover different levels of education and skills. The ministry's announcement offers no overall figures on participants' subsequent employment or earnings, making it difficult to assess the impact of these large-scale programs.

C5+1

Uzbekistan Signs Space Accords as Rubio Opens Samarkand Talks

Uzbekistan joined the U.S.-led Artemis Accords on October 19 as Secretary of State Marco Rubio held talks in Samarkand. The signing accompanied the first Enhanced Strategic Partnership Dialogue between the two countries, with critical minerals among the priorities. Foreign Minister Bakhtiyor Saidov announced the signing after bilateral talks with Rubio. He said Uzbekistan had become the 77th country to join the framework for peaceful space exploration. Saidov said accession would support closer cooperation with NASA and other participating space agencies. He identified training for Uzbek specialists and access to space technologies as potential benefits. Established in 2020, the Artemis Accords set out principles for civilian space exploration. Signatories commit to peaceful operations and greater transparency, including sharing scientific data. The framework also addresses interference between missions and the preservation of historic sites in space. NASA describes the accords as nonbinding principles. Posting on X, Rubio confirmed he had met all five Central Asian foreign ministers during the C5+1 gathering. He said cooperation would expand commercial opportunities and strengthen regional security. American businesses also joined the visit as Washington seeks deeper economic ties across Central Asia. The visit follows the November 2025 White House summit, where Trump hosted all five Central Asian presidents. That meeting gave the partnership a stronger commercial focus, with aircraft orders and minerals projects featuring prominently. Samarkand brings ministers and businesses together to advance that agenda. The strategic dialogue focused on implementing agreements reached by the countries’ leaders and expanding economic cooperation. Saidov said the discussions covered energy and advanced technologies, alongside critical minerals. Education and security cooperation were also on the agenda. Rubio said separately that the talks addressed infrastructure and space cooperation, as well as engagement through C5+1, which brings together the United States and Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. In a separate meeting with Kazakh Foreign Minister Mukhtar Tileuberdi, Rubio reaffirmed plans to expand economic and security cooperation. He thanked Kazakhstan for supporting “President Trump’s peace initiatives, including the Abraham Accords.” Speaking to reporters in Samarkand, Rubio said nearly 300 American businesses were represented, and that agreements potentially worth billions of dollars were under discussion. He presented the visit as the start of deeper U.S. economic engagement with Central Asia. “I think we’ll have some concrete deals to announce,” he said, according to Euronews. A final list of agreements and their value had not been circulated at the time of those remarks. Rubio identified critical minerals as a priority, arguing that concentrated supplies created risks for countries dependent on them. "This is not about coming here to say, stop talking to somebody else or stop working with some other country," he said. Days earlier, at the October 15 summit of the Conference on Interaction and Confidence Building Measures in Asia in Baku, Kazakhstan’s President Kassym-Jomart Tokayev proposed a transport strategy spanning several international initiatives. His proposal included China’s Belt and Road and the planned Trump Route for International Peace and Prosperity (TRIPP) through Armenia. It illustrated the region’s pursuit of transport links involving...

Air Pollution

Air Pollution in Central Asia: Why Winter Smog Persists in Almaty, Bishkek, and Tashkent

Almaty is investing 325.9 billion tenge (about $720 million) in converting a coal-fired power plant to natural gas, but the plant will continue burning coal for several more years. Bishkek is restricting certain types of coal while maintaining supplies of permitted fuel for winter. Tashkent reported lower pollution over much of the year, though early October brought a sharp increase in harmful particles. Across these three Central Asian cities, winter smog remains a problem as the heating season begins. According to World Bank estimates, concentrations of fine particulate matter, known as PM2.5, in major Central Asian cities frequently exceed World Health Organization (WHO) guidelines by six to twelve times, particularly in winter. PM2.5 particles can penetrate deep into the lungs and increase the risk of respiratory and cardiovascular diseases. During colder months, emissions from heating and transportation accumulate near the ground. When winds are weak and temperature inversions occur, polluted air can remain trapped over a city for several days. Almaty: Gas Conversion, Coal Remains Almaty's heating season began on October 9, with schools and hospitals connected first, followed by residential buildings on October 10. By then, the modernization of CHP-2, the city's largest coal-fired heating plant and one of its biggest sources of industrial emissions, had yet to be completed. According to project estimates, converting the plant to natural gas should reduce annual emissions of harmful substances from 37,300 tons to 2,700 tons. However, those reductions will not be achieved immediately after the new equipment begins operating. Environmental assessment documents cited by Kursiv indicate that coal-fired boilers and turbines will continue operating alongside gas-fired units in 2027–2029 during commissioning and periods of peak winter demand. The documents also envisage keeping coal-fired equipment in operation into the 2030s to safeguard energy supplies in case of gas shortages. Vehicle exhaust is another major problem for Almaty. In April, the city introduced a pilot low-emission zone (LEZ) in its center. Until the end of the year, the zone is operating without entry fees, fines, or traffic restrictions. Separately, citywide emissions checks have been underway since the beginning of 2026. By late August, inspectors had tested 5,496 vehicles and found 1,301 exceeding emissions limits, nearly a quarter of those checked. Violations detected during citywide inspections can result in penalties. Bishkek: Coal Restrictions, but No Easy Alternative In Bishkek, the main cause of winter smog is heating in private homes. Residential heating accounts for approximately 29% of air pollution, transportation for 27%, and dust for 21%. Combined emissions from the main thermal power plant and smaller boiler houses account for 11%, according to international research cited by the city administration. In October 2025, the municipal authorities imposed restrictions on the sale, storage, and use of fine coal in Bishkek. They also stepped up inspections targeting waste burning and began converting some boiler houses to cleaner fuels. On October 1, 2026, the mayor's office announced plans to maintain adequate supplies of coal meeting quality standards at fuel depots across the city. For many private residents,...

Oil Licenses

Uzbekistan Confirms Cancellation of Saneg Oil Licenses

Uzbekistan has revoked some oil-field licenses held by Sanoat Energetika Guruhi (Saneg), a major Uzbek private oil and gas producer, after the company failed to develop deposits and meet licensing conditions. The move is another setback for the company, formerly known as Jizzakh Petroleum, following the collapse of its $100 million agreement to purchase the Fergana Oil Refinery. When the refinery sale was announced in 2022, Saneg was reported to account for approximately 80% of Uzbekistan's oil production and hold development rights to 103 oil and gas fields. Officials have not said how many licenses have been canceled, which fields are affected, or what impact the decision will have on the company's operations. Speaking at an October 8 press conference, Sohibjon Murodov, director of the State Assets Management Agency, said the affected deposits had not been developed and licensing conditions had not been met. He did not disclose when the licenses were canceled. The Ministry of Mining Industry and Geology is now preparing measures for the affected fields. Asked why Saneg had originally received development rights without competitive auctions, Murodov explained that under the previous system, the first applicant could obtain a license after paying the prescribed fees. Auctions for hydrocarbon licenses were introduced in 2023–2024. He stressed that the deposits themselves had remained state property. A Privatization Reversed The government transferred management of the Fergana refinery to Saneg, then operating as Jizzakh Petroleum, in 2020. In May 2022, it announced the $100 million sale, accompanied by a separate commitment to invest $380 million in modernization. The transaction was intended to address longstanding problems. Reporting at the time described shortages of raw materials and said the refinery had not undergone major modernization or reconstruction for two decades. Saneg's investment commitments covered improvements to fuel production and processing facilities. Despite the announced sale, the state still held 58.5% of the refinery in May 2026, while Saneg owned 41.5%. By June, the State Assets Management Agency was its sole owner, according to registry information reported by Interfax. Explaining the termination in October, Murodov said financial difficulties in the investor's other projects had prevented it from making purchase payments on time. The contract allowed termination if payments were three months overdue, he said. The agency consulted international legal advisers and notified Saneg before ending the agreement. Saneg had previously maintained that it had fulfilled its payment and investment obligations, according to Interfax's June report. However, the amount of the overdue payments remains unclear, as does how earlier payments and investments will be treated and how much modernization work was completed. State-Directed Debt Recovery The state had already intervened in January to address financial problems at Saneg, oilfield services company Eriell, and engineering contractor Enter Engineering. Uzbek reporting has linked all three businesses to businessman Bakhtiyor Fozilov. A January 22 government resolution recorded combined unpaid wages of approximately $131 million owed to 38,700 employees across the three companies, according to reporting by Spot in March. The government ordered the sale of non-core assets to...

Migrant School Fees

Russian Lawmakers Propose School Fees for Central Asian Migrants’ Children

Russia relies on millions of workers from Central Asia, but lawmakers want to charge some of their children, typically aged 15–17, for the final two years of public schooling. The move comes after tougher enrollment rules that have left thousands of migrant children struggling to attend Russian schools. The proposal, submitted to the government by deputies from the Liberal Democratic Party of Russia (LDPR) on October 14, would require foreign citizens and stateless people to pay for education in grades 10 and 11. LDPR leader Leonid Slutsky argued that migrant families should bear the costs of educating their children in Russian upper-secondary schools, allowing public funds to be redirected toward Russian students. The party claimed that more than 130,000 foreign children attend grades 10–11, costing the state over 37 billion rubles (about $440 million) annually. However, these figures contradict data from Russia's Ministry of Education analyzed by the data project Tochno, which found approximately 130,000 foreign pupils and another 3,000 stateless pupils enrolled across all school grades in 2025–26, with only 4% of foreign pupils attending grades 10–11. That would put the number of foreign pupils in the final two grades at roughly 5,200, casting doubt on the LDPR's estimated savings. Growing Pressure on Migrant Families The proposed fees follow a series of Russian restrictions that have already made it more difficult for Central Asian families to educate their children in Russia. Since April 2025, foreign children seeking admission to Russian schools have been required to demonstrate sufficient Russian-language proficiency and provide documentation establishing their legal residence. Enrollment among children from Uzbekistan, Tajikistan, and Kyrgyzstan fell by 27% in the 2025–26 school year, from approximately 122,000 to 89,000. In January 2026, Tajikistan's Minister of Education and Science Rahim Saidzoda reported that approximately 9,000 Tajik children had returned from Russia during 2025 following difficulties continuing their education there. Kyrgyzstan's membership in the Eurasian Economic Union (EAEU) raises a separate legal question. The EAEU treaty recognizes the right of migrant workers' children to receive education in the country where their parents work, subject to that country's legislation. However, it does not explicitly guarantee free tuition, leaving unclear whether children of workers from EAEU member states would qualify for exemptions. For migrant families, the immediate consequences would depend on the eventual tuition charges and exemptions. Some parents might choose vocational education for their children after grade nine, while others could leave them with relatives in their home countries rather than incur additional schooling expenses in Russia. Additional education costs could discourage migrant workers from bringing their families to Russia, even as the country continues to rely on Central Asian labor. Central Asia's Dependence on Remittances The proposed fees would affect families whose earnings are often vital to their home countries' economies. Tajikistan is the most dependent on remittances relative to the size of its economy, Kyrgyzstan relies particularly heavily on earnings from Russia, and Uzbekistan receives the largest remittance inflows in absolute terms. According to The Times of Central Asia's Central Asia Balance...