Uzbekistan Business & Economy - The Times Of Central Asia

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Nuclear Power

Lukashenko Says Belarus Ready to Help Uzbekistan Build Nuclear Power Plant

Belarus is ready to assist Uzbekistan in building a nuclear power plant and training specialists for the country’s emerging nuclear energy sector, President Alexander Lukashenko said during a meeting with Uzbekistan’s ambassador to Belarus, Rakhmatulla Nazarov. According to the Belarusian president’s press service, the discussion took place on March 9 in Minsk and covered a wide range of issues ahead of a planned visit by Uzbekistan’s President Shavkat Mirziyoyev to Belarus. Lukashenko said relations between the two countries were developing steadily and that the upcoming visit could mark an important stage in expanding bilateral cooperation. “My very good friend Shavkat Miromonovich [Mirziyoyev] and I have much to discuss,” Lukashenko said at the beginning of the meeting. “By the time of his visit, we will update our agenda and develop plans for the near and medium term.” The Belarusian leader noted that both countries are working toward increasing bilateral trade to $2 billion in the coming years. He said such a target was realistic because the two economies complement rather than compete with each other. “Everything we know how to produce, from agriculture to machine building, is needed by the densely populated Uzbek state,” Lukashenko said, according to Belarusian media. Among the areas of potential cooperation, Lukashenko highlighted agriculture, industrial production, and nuclear energy. He said Belarus was prepared to share technologies, provide training, and support joint projects. “We know about your interest in our specialists in building a nuclear power plant,” Lukashenko said during the meeting. “We acquired these competencies thanks to cooperation with Russia. If it suits you, come at any time. Your representatives can meet with our specialists, and we will facilitate the construction of your nuclear power station.” Belarus has gained experience in nuclear energy through its cooperation with Russia on the Astravets nuclear power plant, which began operating in recent years. Lukashenko said Belarusian specialists currently work with Russian partners on nuclear projects in several countries. He emphasized that cooperation in nuclear energy and other sectors would be mutually beneficial, noting the size of Uzbekistan’s market and its rapidly growing economy. Lukashenko also praised Uzbekistan’s recent development efforts. “We see how Uzbekistan is drawing experience and expertise from around the world,” he said, adding that Belarus is ready to contribute to training specialists and developing technology in different sectors. The Belarusian president also said his country remains open to Uzbek workers seeking employment in Belarus, noting that migrant workers are offered access to education and social services on equal terms with local residents. In August last year, officials from Uzbekistan’s Uzatom Atomic Energy Agency met with Belarusian Energy Minister Denis Moroz in Minsk to discuss potential collaboration in nuclear infrastructure development, specialist training, and radioactive waste management. During those talks, Belarus expressed readiness to share its experience as Uzbekistan develops its national nuclear energy program.

Crypto Stocks

Wallet in Telegram Launches Crypto Stocks Pilot for 27 Million Users in Uzbekistan

A new digital investment service allowing users to trade tokenized U.S. stocks directly within Telegram has been launched in Uzbekistan as part of a pilot program overseen by the country’s National Agency for Prospective Projects. On March 5, a new “Crypto Stocks” section was introduced within the Wallet feature in Telegram, giving users access to more than 60 tokenized shares and exchange-traded funds (ETFs). The one-month pilot program began in March 2026 and is being implemented with support from Asterium, described as Uzbekistan’s largest cryptocurrency exchange. The service allows users to buy, sell, store, and transfer tokenized versions of shares in major U.S. companies such as Apple, Tesla, Netflix, and Amazon, as well as ETFs tracking the broader U.S. market, including funds linked to the S&P 500 index. These assets can be sent directly to other Telegram users within the app without requiring them to open accounts on traditional brokerage platforms. According to the developers, the system is designed to make global investment tools easier to access for everyday users. Investments can start from as little as $1, allowing users to purchase fractional shares rather than full stocks. According to Global Findex 2025 data cited in the release, more than 60% of Uzbekistan’s population now has an account with a bank or other financial institution. However, barriers such as limited funds, the distance to bank branches, and the cost of financial services continue to prevent many people from accessing traditional financial products. Andrew Rogozov, founder and CEO of The Open Platform and Wallet in Telegram, said the new service aims to make global financial markets accessible through familiar digital platforms. “By bringing tokenized equities into Telegram, we’re giving millions of people their first opportunity to participate in global financial markets directly where they communicate and use digital services,” he said. Diyorbek Mukhammedov, Wallet’s regional director in Uzbekistan, said the initiative responds to growing interest in investing while addressing the complexity that often discourages new investors. Integrating the service into Telegram, he said, helps make financial tools more understandable and accessible. The system operates through integration with the xStocks platform and a partnership with the Kraken cryptocurrency exchange. Tokenized assets are issued by Backed and are designed to maintain one-to-one backing with underlying U.S. stocks and ETFs. Trading on the platform is available 24 hours a day on weekdays. Wallet in Telegram, backed by The Open Platform, reports more than 150 million registered users globally. The service became available in Uzbekistan in December 2025 after receiving a license from the National Agency for Prospective Projects.

Middle East

Middle East Conflict May Slow Growth, but Gold and Oil Dynamics Could Cushion Impact

The escalating conflict in the Middle East could weigh on Uzbekistan’s economic growth if it persists, though higher gold prices and oil-driven gains in key partner economies may soften the impact, according to Uzbek economist Mirkomil Kholboyev. Kholboyev shared his analysis on his Telegram channel, examining both the direct and indirect channels through which the crisis could affect Central Asia’s largest economy. “Several days of geopolitical tensions in the Middle East have already turned into open military confrontation,” he wrote. “It is still difficult to say how long this situation will last. If it is short-term and the previous status quo is restored, the impact on our economy will likely be limited and temporary. But if the war continues for a longer period, the consequences could be more significant.” Direct trade exposure appears limited. According to data from Uzbekistan’s national statistics portal, the country exported $157 million worth of goods to Iran in 2025, accounting for just 0.5% of total exports. Imports from Iran totaled $421 million, or 0.9% of overall imports. Trade with Israel was even smaller, with exports of $33 million and imports of $22 million. “Even a complete halt in trade with these countries would not significantly affect total exports,” Kholboyev wrote, though he noted that export and import growth could slow. Iran also plays a role as a transit hub. Its ports are part of broader regional logistics networks, including the Central Asia-India corridor via Chabahar and the International North-South Transport Corridor (INSTC). According to a regional analytical report, Uzbekistan accounts for 5.5% of total traffic along this route, compared with 61.1% for Kazakhstan and 29.4% for Turkmenistan. Kholboyev pointed out that while some of Uzbekistan’s trade passes through Iranian ports, the country is less dependent on them than other Central Asian countries. Still, he cautioned that prolonged fighting would inevitably disrupt both direct trade and transit flows. “I do not have precise data on how much of our total foreign trade passes specifically through Iranian ports,” he wrote. “That makes it difficult to assess the full effect. But if the war continues, both direct trade and transit through Iran will suffer serious damage.” Even if trade with the wider region, including Iran and other countries affected by hostilities, were to stop entirely, Kholboyev estimates the impact would remain moderate. The region accounts for about 2.4% of Uzbekistan’s exports and 1.5% of imports. A complete halt could slow export growth by roughly 3% and imports by about 2.5%, reducing overall GDP growth by around 0.6 percentage points. A 50% reduction in trade with the region would shave an estimated 0.2-0.3 percentage points off GDP growth. Energy markets represent a more significant risk channel. As trading resumed after the latest escalation, global oil prices rose by about 9%, driven by concerns over potential disruptions in the Strait of Hormuz, through which roughly one-fifth of global oil consumption passes. “If tensions escalate further and oil flows are restricted, or if prices continue rising amid uncertainty, this could slow...

Iran

Iran Volatility Tests Central Asia’s Overland Corridors

The current escalation around Iran holds the potential for transforming the long-term geopolitical configuration of Eurasia, including Central Asia. In the short and medium term, aside from the security and safety of its citizens, Central Asia's main concern is economic, because it puts stress on overland rail and trucking routes that cross Iranian territory. Central Asian exporters do not ship through the Gulf, so for now the key issue is whether an Iran-crossing land route remains reliable enough, and financeable enough, to serve as a routine outlet for trade. The Iran transit option differs from trans-Caspian reliance on ports and rail interfaces around the Caspian Sea, transiting to onward rail across the South Caucasus and into Europe. The Iran option offers a continuous land arc from Central Asian railheads and road networks into Iran, then onward to Türkiye and connected European rail networks, with the additional possibility of reaching Iran’s southern ports for Indian Ocean-facing trade. Each route has its own chokepoints, paperwork burdens, and exposure to risk premiums. Rail is efficient for bulk and container flows when schedules and documentation are stable. Trucking provides flexibility, short-notice capacity, and last-mile options, but it is more sensitive to security conditions and border clearance delays. Technical capacity at the Iran–Turkmenistan crossings is key. Recent reports of discussions in Sarakhs describe efforts to expand the use of a specialized rail logistics process whereby entire wheel assemblies are replaced on railcars to transition between different track gauges. There is also a need to address customs constraints at Sarakhs and Incheh Borun. Against that operational background, Kazakhstan has signaled diplomatic attention to Gulf partners and Jordan. President Kassym-Jomart Tokayev has sent messages of support to leaders of the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, and Kuwait, followed by a similar message to Jordan, and a phone call with Qatar’s emir. The language emphasized solidarity and diplomacy and, in commercial terms, reads as partner-management. It reassures major investors and energy-market counterparts that Kazakhstan is engaged, attentive, and positioning itself for stability rather than escalation. The trans-Iran rail foundation is over a decade old. On December 3, 2014, the presidents of Kazakhstan, Turkmenistan, and Iran inaugurated the 928-kilometer Uzen–Bereket–Gorgan railway, characterized by RFE/RL (which gave the length as 935 kilometers) as the shortest railway connecting the three states. The International Union of Railways similarly notes the inauguration of the Gorgan–Inche Boroun link on that date as part of the corridor connecting Iran to Turkmenistan and Kazakhstan. Recent reporting suggests renewed efforts to operationalize the Iran option as a westbound channel. Uzbekistan, in cooperation with Türkiye, launched freight rail services along the Uzbekistan–Turkmenistan–Iran–Türkiye route in 2022. The Organization of Turkic States described a December 2022 event in Tashkent as the first freight train organized from Türkiye to Uzbekistan, which anchors the same basic idea: make westbound rail via Iran more regular and more visible to logistics markets. The point is not that Iran becomes the sole answer, but that Central Asian exporters and transit states have been...

Demographics

Central Asia’s Population Could Reach 96 Million by 2040, Raising Infrastructure Pressures

Central Asia’s population could grow to 96 million by 2040, a trend expected to stimulate economic expansion while placing significant strain on infrastructure, energy systems, and water resources across the region, according to Russia’s state news agency TASS. In an interview with TASS, Nikolai Podguzov, Chairman of the Management Board of the Eurasian Development Bank (EDB), said demographic growth would be one of the defining factors shaping Central Asia’s long-term development. “By 2040, according to our estimates, the population of Central Asia may reach 96 million. This should become a driver of economic growth, but at the same time such numbers will create enormous pressure on infrastructure,” he said. As previously reported by The Times of Central Asia, Central Asia’s population exceeded 84 million in 2025, continuing a rapid upward trend after surpassing 80 million in 2024. Projections indicate that the population could exceed 100 million by 2050, underscoring the scale of demographic and economic transformation facing the region in the coming decades. Podguzov added that the region would require significant progress in energy efficiency, modern transport systems, and water management to ensure sustainable development. He described Central Asia as one of the regions of the world most vulnerable to climate change. According to EDB forecasts, water shortages are expected to intensify, with an annual deficit potentially reaching between 5 and 12 cubic kilometers by 2028. A substantial portion of water resources is already lost due to outdated irrigation and distribution systems. Podguzov said the bank is financing projects to modernize irrigation networks, introduce water-saving technologies, and implement digital water accounting mechanisms across the region. To address these challenges, the EDB has proposed a Eurasian Transport Framework, a network of transport corridors aimed at lowering logistics costs and accelerating trade flows. While existing routes predominantly run east to west, Podguzov emphasized the growing importance of north-south connections, including the potential Trans-Afghan corridor, which could provide access to markets in South Asia and the Persian Gulf. The bank projects that the combined economies of Central Asia’s five countries will reach approximately $600 billion in 2026, positioning the region among the fastest-growing globally. However, Podguzov stressed that demographic expansion, transport development, and water security are closely interconnected challenges that require coordinated policy responses.

Middle Corridor

The World Bank Backs Kazakhstan’s Rail Shortcut

On February 19, 2026, the World Bank Board approved an $846 million IBRD guarantee to help the state-owned railway company Kazakhstan Temir Zholy (KTZ) mobilize $1.41 billion in long-term commercial financing. The financing is linked to a KTZ reform program under the umbrella “Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development)” initiative. The purpose is to expand rail connectivity and upgrade logistics on Kazakhstan’s segment of the Trans-Caspian International Transport Route (TITR, Middle Corridor). The Asian Infrastructure Investment Bank (AIIB) will add a $564 million co-guarantee that shifts the financing away from a classic sovereign-loan model and toward private credit backed by multilateral risk coverage. The Multilateral Investment Guarantee Agency (MIGA) presents this operation as part of a wider World Bank Group approach that pairs corridor capital expenditure with steps to strengthen the operator’s financial sustainability and commercial viability. The operation is structured as a two-part package. First, it finances a new 322.3-kilometer railway on a new segment between Mointy and Kyzylzhar in central Kazakhstan. This segment is meant to remove a major network detour, shorten the TITR route within Kazakhstan by 149 kilometers, ease congestion on heavily used sections, and support double-stack container operations. The line is planned with modern signaling and telecommunications, plus design provisions for later expansion and electrification. Second, it ties the construction to a reform program at KTZ, including tariff reform, exploration of alternative financing mechanisms, stronger financial and environmental management, and preparatory work for a potential initial public offering. The World Bank is structuring delivery through a Multi-Phase Programmatic Approach with the stated aim of tripling freight volumes and halving end-to-end transit times on Kazakhstan’s Middle Corridor segment by 2030. Why This Segment Matters for the Middle Corridor Inside Kazakhstan, the Mointy–Kyzylzhar line is a central connector in the Trans-Kazakhstan east–west trunk carrying traffic from the China-facing gateways at Dostyk and Khorgos toward the Caspian outlets at Aktau and Kuryk. Mointy itself is a pivotal junction where train paths, locomotives, and crews are redistributed across multiple directions; as a result, any congestion there propagates quickly into corridor-wide delays. In early 2025, President Kassym-Jomart Tokayev directed acceleration of the Trans-Kazakhstan corridor. KTZ says the expected benefits include decreased pressure on heavily used central segments, fewer locomotive changeovers at key junction points, and, on some routings, the potential to cut more than a day from transit time between the Chinese border and Aktau. The World Bank’s 2023 Middle Corridor study stressed that the corridor’s most durable growth driver is regional trade among the core corridor economies: China–Europe movements remain important, but they compete with multiple alternatives, above all maritime shipping. An infrastructure upgrade adds economic value only if it reduces variability at the handoff points where delays accumulate, including rail-to-port interfaces, Caspian coordination, and national borders. Relieving the domestic bottleneck in Kazakhstan is economically meaningful only insofar as it stabilizes arrival times to Caspian terminals, creates more room for dispatching, and helps logistics providers offer shippers more predictable end-to-end service along the TITR. The emphasis is...