Uzbekistan - The Times Of Central Asia

Viewing results 25 - 30 of 2189

Middle Corridor

Uzbekistan Seeks More Freight Capacity Through Kazakhstan’s Caspian Ports

Kazakhstan and Uzbekistan have instructed their national railway companies to draw up a plan to increase Uzbek freight shipments through the ports of Aktau and Kuryk, expanding Tashkent’s access to markets across the Caspian Sea. Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, discussed the plan during a July 23 visit to the Aktau International Sea Trade Port. The volume of Uzbek freight handled through Aktau and Kuryk increased by more than 60% in 2025, according to the Kazakh government. “Our task is to provide cargo from Central Asian countries with fast and reliable access to the markets of the Caucasus, Turkey, and Europe,” Bektenov said. Aktau and Kuryk are the main Kazakh ports on the Trans-Caspian International Transport Route, commonly known as the Middle Corridor. The rail-and-sea route links China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey. For Uzbekistan, one of the world’s two double-landlocked countries, the Kazakh ports provide access to the western section of the corridor. Freight is carried by rail to the Caspian coast before being transferred to ships bound for Azerbaijan. The two governments did not say how much additional freight they expect to carry or when the railway companies must complete their plan. Further growth will depend on tariffs, the availability of railcars and vessels, border procedures, and the capacity of railway lines serving the ports. The combined infrastructure capacity of Aktau and Kuryk is about 22 million metric tons a year, according to Yelzhas Otynshiyev, chairman of Kazakhstan Temir Zholy, the state railway company. Aktau alone can handle as much as 12 million tons annually and operates throughout the year. Container transit through the Kazakh ports on the Middle Corridor increased 3.8-fold between 2022 and 2025, the government said. The first phase of a container hub with annual capacity of 140,000 twenty-foot equivalent units has opened at Aktau. A second phase, due in 2027-2028, is expected to lift capacity to 240,000 TEUs. Kazakhstan has also ordered six container vessels. Four are due for delivery in 2027 and two more in 2028. The additional ships are intended to reduce dependence on the limited pool of vessels operating on the Caspian Sea. Capacity constraints remain at the ports and on the rail network. Falling Caspian Sea levels have made it harder for fully loaded vessels to enter some harbors and increased the need for dredging. Kazakhstan completed dredging at Kuryk in 2025 and plans to finish similar work at Aktau by the end of 2026. The World Bank lists port capacity, rail access, and delays at the Kazakhstan-Uzbekistan border among the main bottlenecks affecting the Middle Corridor. Some freight operators use longer routes because existing border crossings and rail links cannot handle demand efficiently. The bank has also called for additional berths and modern cargo-handling equipment at Aktau as the Caspian becomes shallower. Kazakhstan is upgrading the Shalkar-Beineu and Beineu-Mangystau railway sections that carry traffic to Aktau and Kuryk. In February 2026, the World Bank approved an $846...

Labor Migration

Lukashenko Tells Uzbek Workers Seeking Higher Pay to Consider Russia

Belarusian President Alexander Lukashenko has said Uzbek citizens coming to Belarus should not expect to earn several thousand dollars, suggesting that those seeking significantly higher salaries would be better off working in Russia instead. His remarks come as Belarus expands labor recruitment from Uzbekistan following complaints from some Uzbek workers about low wages. Speaking during a nationwide government meeting on July 21, Lukashenko returned to the issue of recruiting workers from Uzbekistan following recent agreements between the two countries to expand labor cooperation. Earlier this month, he invited Uzbek citizens to move to Belarus with their families, saying the country was ready to provide jobs as well as access to healthcare and education. Following those agreements, more than 250 residents of Uzbekistan’s Andijan Region traveled to Belarus to take temporary jobs in agriculture and livestock farming. However, shortly after arriving, some workers publicly complained about wages and working conditions. In videos circulated online, they said they had been offered monthly salaries of around $500, adding that they could earn similar incomes without leaving Uzbekistan. Addressing the issue, Lukashenko said labor cooperation was driven not only by Belarus’ need for workers but also by plans to expand agricultural trade between the two countries. “The President of Uzbekistan asked not only about employing people but, first of all, about supplying meat and milk,” Lukashenko said. “They do not have enough land and they lack water resources. We have enough land and enough water. We can produce meat and milk.” According to Lukashenko, Uzbek workers would help increase agricultural production, enabling Belarus to export more food products to Uzbekistan. “If your people from Uzbekistan come through our system which is fully under control; we will employ them in Belarus as our own people,” he said. “Not only so they can earn money and receive a good salary, but to produce meat and milk. We will then sell that meat and milk on their markets. That is where the wages come from.” The Belarusian leader nevertheless acknowledged that some workers might have different financial expectations. “If someone wants to come to Belarus to earn huge money,several thousand dollars, it is better to go to Russia,” Lukashenko said. “There they can work in the oil industry or other sectors and receive very high salaries.” He said Belarus was offering stable employment in agriculture rather than exceptionally high wages. “The higher the productivity and the more goods they produce, the higher their salaries will be,” he said. Lukashenko also said foreign workers would receive the same access to healthcare and education as Belarusian citizens, while emphasizing that regional authorities should recruit migrant workers only where there was genuine demand. Concluding the meeting, he called on officials to focus on the harvest campaign and meeting export commitments, urging regional authorities and law enforcement agencies to assist farmers during the agricultural season rather than acting solely as inspectors. The Times of Central Asia previously reported that labor migration patterns across Central Asia are gradually becoming more diversified as...

World Bank

World Bank Approves $20 Million Project to Boost Cross-Border Water Cooperation in Central Asia

The World Bank has announced a $20 million grant to strengthen transboundary water cooperation in Central Asia. The project is intended to improve management of the Amu Darya and Syr Darya basins as climate change, ageing infrastructure, and rising demand increase pressure on shared water resources. The funding, approved by the World Bank’s Board of Executive Directors, will support the Central Asia Water Efficiency Cooperation Project (CAWEC). It will be implemented by the Executive Committee of the International Fund for Saving the Aral Sea (EC IFAS). EC IFAS’s current procurement notice identifies Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan as the participating states. According to the World Bank, limited cooperation over shared water and energy resources costs the region more than $4.5 billion a year. The bank says fragmented reservoir operations, weak data sharing, and ageing infrastructure prevent countries from capturing gains that better regional coordination could provide. The project will strengthen regional institutions, modernize water accounting and information systems, and improve data sharing. By 2031, EC IFAS is expected to prepare feasibility studies, technical documents, and environmental assessments for up to six transboundary water infrastructure projects involving at least two countries. The $20 million grant will not finance the construction of those projects. The preparatory work is intended to help governments attract further investment for irrigation modernization, water conservation and storage, and coordinated management of shared rivers. It will also support digital systems and equipment for the Amu Darya and Syr Darya basins. Up to 100 staff members from regional water organizations will receive training. The World Bank estimates that around 40 million people will benefit directly or indirectly from improved regional water management. The International Fund for Saving the Aral Sea was established in 1993 by Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan to coordinate responses to the environmental and economic consequences of the Aral Sea disaster. The project concerns the Aral Sea basin’s two principal river systems. The Amu Darya is formed by headwaters rising mainly in the Pamirs and Hindu Kush and flows through or along Afghanistan, Tajikistan, Uzbekistan, and Turkmenistan. The Syr Darya is fed by Tien Shan headwaters and crosses Kyrgyzstan, Uzbekistan, Tajikistan, and Kazakhstan. Both rivers historically fed the Aral Sea. The grant arrives amid severe regional water stress. Central Asian governments agreed 2026 allocations from the Amu Darya and Syr Darya in November 2025, but low reservoir levels and reduced inflows continue to threaten irrigation and energy production. Kazakhstan is pursuing a parallel effort to restore the North Aral Sea, the section of the former inland sea fed by the Syr Darya. In a ministry statement, Water Resources and Irrigation Minister Nurzhan Nurzhigitov said an additional 1.2 billion cubic meters of water should be directed to the North Aral by the end of 2026. According to the ministry, 1.4 billion cubic meters have been delivered since October 1, 2025. The North Aral now contains 23.5 billion cubic meters of water, while salinity has fallen by about 10% from a year earlier. Fishermen caught 4,200 metric...

Transit Trade

Pakistan and Uzbekistan Turn to China for Transit Trade Amid Regional Security Risks

Pakistan and Uzbekistan have agreed in principle to reroute some of their bilateral transit trade through China. The move follows worsening security that closed traditional routes through Afghanistan and disrupted alternatives through Iran, according to Pakistan Today. The two governments are expected to formalize the decision by signing amendments to the Pakistan-Uzbekistan Transit Trade Agreement during the visit of Uzbekistan’s deputy prime minister to Pakistan on July 21. Under the revised agreement, the China corridor will become an official transit route, allowing cargo to travel through Pakistan’s Sost Dry Port, cross western China, and continue into Central Asia. “The protocol is aimed at expanding transit options and ensuring uninterrupted movement of goods between the two countries despite evolving regional security challenges,” a Pakistani official familiar with the negotiations told Pakistan Today on condition of anonymity. The arrangement will provide Pakistan with an additional route to Central Asian markets while allowing Uzbekistan to maintain access to Pakistani seaports despite growing instability across the region. The decision marks a significant shift in regional trade planning. For years, the shortest and most commercially attractive route between Pakistan and Uzbekistan passed through Afghanistan. That corridor was also expected to become part of the planned Uzbekistan-Afghanistan-Pakistan railway linking Central Asia with ports on the Arabian Sea. Those plans have largely stalled following the sharp deterioration in relations between Islamabad and Kabul. Pakistan closed its main border crossings, including Torkham and Chaman, after cross-border clashes in October 2025. Trade through the crossings has remained suspended amid continuing security tensions and disagreements over militant groups operating from Afghan territory. The disruption has affected not only transit cargo but also Pakistan’s direct exports to Afghanistan, traditionally an important market because of its limited domestic manufacturing base. Pakistani companies supply cooking oil, cement, soap, pharmaceuticals, aluminum cans, food products, and other consumer and construction goods to Afghanistan. Business groups cited by Pakistan Today estimated earlier this year that the prolonged border closure was costing Pakistani exporters around $177 million every month, while warning that customers in Afghanistan and Central Asia could permanently shift to suppliers using other regional transport routes. Pakistan initially sought to compensate by expanding transport links through Iran. In April, Islamabad operationalized new transit corridors through both Iran and China, including an Iranian route connecting Pakistani ports with Central Asian markets while bypassing Afghanistan. However, renewed military confrontation between Iran and the United States has raised fresh concerns about that option. Continuing attacks on infrastructure and commercial shipping around the Strait of Hormuz have increased freight costs, insurance premiums, and energy-related risks, reducing the corridor’s reliability. Routing trade through China would allow both countries to bypass security problems affecting routes through Afghanistan and Iran. It would also advance Pakistan’s long-term plan to extend the China-Pakistan Economic Corridor toward Central Asia. The new route, however, is expected to come with trade-offs. Transporting goods through China will involve longer distances, additional border procedures, higher handling costs, and extended transit times. As a result, the corridor is expected to...

Allied Biofuels

Allied Biofuels Details Export Routes for Planned $6.1 Billion Uzbekistan SAF Project

Allied Biofuels has disclosed planned export routes that would carry sustainable aviation fuel from its proposed facility in Uzbekistan to customers in Europe and the United Arab Emirates via rail and sea corridors crossing Kazakhstan, the Caspian Sea, the Black Sea, and the Suez Canal. The routes are set out in a logistics agreement with Latvia-based Pro Logistic Services that was signed during the 5th Tashkent International Investment Forum in June and announced on July 20. It covers the future transport of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF), rather than immediate exports. The production facility has not yet been built, and Allied Biofuels has said commercial fuel supplies are expected to begin in 2030. Under the agreement, Pro Logistic Services will design and implement a multimodal transport network covering dedicated rail tank cars, port handling, freight forwarding, and marine shipping. The company would coordinate delivery from the project site in Uzbekistan to customers in Europe, the UAE, and other markets. The logistics partnership forms part of Allied Biofuels’ planned $6.08 billion renewable energy and sustainable fuel project in Uzbekistan’s Khorezm region. The development is backed by a project implementation agreement with the regional authorities and has received special economic zone status under a presidential decree. The planned complex would combine biomass processing, refining, green hydrogen, and power-to-liquid technologies. Allied Biofuels says it would produce about 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. A proposed 4.45-gigawatt renewable energy system, supported by battery storage and hydrogen infrastructure, would supply the project. In June, Allied Biofuels signed an engineering agreement with Sinopec Engineering Group covering front-end and detailed design, systems integration, and cost development. The logistics program is expected to proceed alongside engineering, production planning, financing, and negotiations with potential fuel buyers. Uzbekistan Airports and Allied Biofuels also signed a memorandum of understanding in May on future SAF and e-SAF supplies. The May announcement said cooperation would begin in 2030. Allied Biofuels’ latest statement describes the memorandum as binding and says it covers annual purchases of 117,000 tonnes. For shipments to the UAE, fuel would travel by rail from Miskin Station through the Trans-Caspian International Transport Route. The proposed journey would cross Kazakhstan and the Caspian Sea before reaching the Georgian Black Sea ports of Poti or Batumi. The cargo would then be transferred to tankers and shipped through the Black Sea, the Mediterranean, and the Suez Canal to Fujairah and other UAE ports. European exports would use a separate corridor. Fuel would travel by rail from Miskin Station to the Port of Riga in Latvia, before continuing by sea to Hamburg and other European ports. The plan reflects Uzbekistan’s wider effort to improve rail links and secure more reliable access to distant seaports. Pro Logistic Services says it has direct forwarding agreements with the national railway operators of Uzbekistan, Kazakhstan, Latvia, Turkmenistan, and Lithuania. Headquartered in Riga, the company operates more than 4,000 freight wagons and maintains a presence in...

Islamic Finance

Uzbekistan Establishes Islamic Finance Council as New Banking Law Takes Effect

The Central Bank of Uzbekistan has established an Islamic Finance Council to coordinate the work of banks, microfinance organizations, the Deposit Guarantee Agency and other institutions operating under Islamic financial principles. The council was created weeks after Uzbekistan’s new Islamic banking law took effect on June 29. It will prepare national standards, issue regulatory and supervisory recommendations, advise financial institutions and represent the Central Bank in its work with international standard-setters. Building an Islamic Finance Framework Islamic finance prohibits interest and generally requires financing to be linked to assets, trade, leasing or risk-sharing. Common structures include murabaha, in which a bank buys and resells an asset at an agreed markup, and ijara, which operates broadly like leasing. Sharia Specialists Form Council Majority The council has five members: four specialists from the Fatwa Center under the Muslim Board of Uzbekistan and one financial-sector expert. Saidjamol Masayitov, a chief specialist at the Fatwa Center, will chair the council. Muhammadyubkhon Khomidov, also a chief specialist at the center, will serve as deputy chairman. The other members are Fatwa Center specialists Hikmatilla Toshtemirov and Abdullatif Tursunov, along with Akhrorjon Sadullayev, managing partner of Orient Audit Group. Sadullayev has more than 20 years of experience in banking, finance and auditing. The council is intended to combine Sharia expertise with financial regulation. It will report annually to the Central Bank’s board. From Legislation to Implementation Uzbekistan has been developing an Islamic finance framework for several years. Legislation adopted in 2022 allowed microfinance organizations to provide services based on Islamic principles, while detailed regulations introduced in 2024 covered instruments including mudaraba, murabaha, musharaka, ijara and salam. The Central Bank is also preparing a national Islamic finance roadmap for 2026-2030 with assistance from the Islamic Financial Services Board. The work covers banking, capital markets, insurance, professional training and the wider legislative framework. Law No. O’RQ-1126, signed on March 27, established a dual banking model. Stand-alone Islamic banks can operate alongside Islamic “windows” within conventional commercial banks. The law also created a special licensing system and defined permitted Islamic financial operations. Uzbekistan had previously planned to introduce its first Islamic finance services through a commercial bank in 2027, with at least three banks expected to offer them by 2030. Licensing Rules Approved The Central Bank has now amended its licensing regulations for Islamic banks and Islamic windows. The changes were registered by the Ministry of Justice on July 17 and took effect upon official publication. Applicants must submit Sharia-compliance policies, information about their institution-level Islamic finance council, evidence of dedicated internal oversight and audit systems, and a three-year business plan. Existing conventional banks will require a separate license to open an Islamic window. Council candidates must receive Central Bank approval and meet education and professional-experience requirements. At least one member must hold a certificate from the Accounting and Auditing Organization for Islamic Financial Institutions, or AAOIFI. Certification will become mandatory for all council members from July 1, 2027. Adopting International Standards The Central Bank joined AAOIFI as a regulatory...