• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.09694 0.62%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
08 May 2025

Viewing results 1 - 6 of 552

After Securing Ukraine Agreement, U.S. Eyes Central Asia for Rare Earths

After months of negotiations, the United States and Ukraine have finally signed an agreement to co-finance the development of Ukraine’s mineral resources, hydrocarbons, and infrastructure. According to The National Interest, the U.S. will not assume ownership of Ukraine’s assets; instead, profits will be directed into a joint investment fund, with full reinvestment in Ukraine. Ukraine’s First Deputy Prime Minister Yulia Svyrydenko described the deal as a mutually beneficial partnership. U.S. Treasury Secretary Scott Bessent hailed it as a “historic economic partnership,” underscoring America’s enduring commitment to a “free and prosperous Ukraine.” Since his return to office in January, President Donald Trump has prioritized securing access to rare earth minerals. This move is part of a broader U.S. strategy to reduce reliance on China, which currently dominates the sector with control over approximately two-thirds of global production. By contrast, the United States accounts for only about 12%. While Ukraine possesses 22 of the 50 minerals identified as critical by the U.S. government, it holds just around 5% of global reserves. As a result, Washington is looking beyond Ukraine and Central Asia has emerged as a strategic alternative. Reports from the Caspian Policy Center and the International Tax and Investment Center highlight the region’s significant rare earth potential. The countries of Central Asia have already taken steps toward deeper cooperation. In 2024, the United States and Uzbekistan signed a Memorandum of Understanding to enhance collaboration on critical minerals. However, competition for access remains stiff. China maintains robust trade links across the region, and Russia continues to wield considerable economic influence. Nonetheless, regional dynamics are shifting. In recent years, Central Asian states have increasingly sought to diversify their partnerships, reducing dependence on Moscow and Beijing. They have moved to deepen ties with the United States, the United Kingdom, and the European Union. In September 2023, then-President Joe Biden met with Central Asian leaders to discuss regional cooperation, including rare earth supply chains. This was followed by the June 2024 meeting of the U.S.-Central Asia Trade and Investment Framework Council, where both parties emphasized the need for increased trade and integration. Like Ukraine, Central Asian nations stand to gain from U.S. investment, particularly in energy infrastructure and broader economic development. If implemented effectively, rare earth revenues could be retained within the region, supporting long-term local growth. For the United States, enhanced access to Central Asian resources represents a step toward greater energy security and reduced strategic vulnerability. While China and Russia maintain structural advantages, Washington now has a meaningful opportunity to deepen its presence in Central Asia and forge enduring partnerships.

Chinese Firms to Build 500 MW Solar Power Plant in Uzbekistan’s Jizzakh Region

A major solar power project is set to launch in the Forish district of Uzbekistan’s Jizzakh region, following a presidential decree issued earlier this month. The project entails the construction of a 500-megawatt solar photovoltaic (PV) plant along with supporting power transmission infrastructure. According to the decree, the initiative aims to ensure a stable energy supply for both the population and key sectors of the economy, reduce dependence on natural gas in electricity generation, and increase the share of renewables in Uzbekistan’s energy mix. To carry out the project, China Electrical Equipment International Co. Ltd. and China Huadian Overseas Co. Ltd. have formed a joint venture, Huadian Jizzakh Solar Power LLC. The companies will design, finance, construct, and operate the facility. Total direct investment is projected at 2.08 billion yuan (approximately $290 million). Under a 25-year guaranteed purchase agreement, Uzbekistan’s state electricity buyer, Uzenergosotish JSC, will buy the generated electricity. For the construction site, the government has allocated 991.1 hectares of pastureland in Forish, which will be reclassified from agricultural to industrial use. This announcement follows a wave of green energy initiatives signed during the inaugural Samarkand International Climate Forum in April 2025. Among them was an agreement with China’s Liquip International to build another solar facility in the same region. As previously reported by The Times of Central Asia, Chinese investment in Jizzakh continues to grow. In June 2024, President Shavkat Mirziyoyev inaugurated a Technopark in the Zaamin district, where Chinese firms are financing 30 projects valued at $1.2 billion. The development is expected to generate over 5,000 jobs.

Uzbekistan Wins Arbitration Case Against Turkish Textile Company

On October 10, 2024, the International Centre for Settlement of Investment Disputes (ICSID) announced its decision in the case between Turkish company Bursel Tekstil Sanayi ve Dış Ticaret A.Ş. and Uzbekistan. According to Uzbekistan’s Ministry of Justice, the tribunal rejected all claims made by Bursel Tekstil. The dispute began in July 2017, when Bursel Tekstil accused the Uzbek government of breaching promises related to cotton pricing and tax policies, actions the company claimed had led to its bankruptcy. Bursel Tekstil sought approximately $700 million in compensation. However, the tribunal ruled in favor of Uzbekistan and ordered Bursel Tekstil to cover the country's legal costs. Bursel Tekstil had invested in Uzbekistan’s textile industry in the early 2000s, helping to build a textile plant in Tashkent with funding from the OPEC Fund for International Development and the European Bank for Reconstruction and Development. By 2011, the company operated three factories in Uzbekistan. Uzbekistan was represented in the arbitration by the Ministry of Justice and the American law firm White & Case. Under ICSID rules, the tribunal’s decision is final and binding. Previously, The Times of Central Asia reported on another ICSID decision in May 2024, ordering the return of four resorts in Kyrgyzstan to Uzbekistan. In that case, Uzbekistan successfully argued that Kyrgyzstan had violated a 1992 agreement among former Soviet Union countries, which stipulates that property belonging to one country but located on the territory of another remains the property of the original owner.

Uzbekistan and Russia Advance Trans-Afghan Railway Project to Pakistan

Uzbekistan and Russia have taken a significant step toward the practical implementation of the long-envisioned Trans-Afghan railway project, which aims to connect Central Asia to Pakistan via Afghanistan. The transport ministries of both countries, along with Russian Railways and the Uzbek national railway company, Uzbekistan Temir Yollari, have signed documents formalizing the start of the project’s development phase. According to Russia’s Ministry of Transport, the two countries will jointly develop a feasibility study in 2025, assessing freight traffic forecasts and economic viability. Two potential routes have been proposed: Route 1: Mazar-e-Sharif - Herat - Dilaram - Kandahar (Afghanistan) - Chaman (Pakistan) Route 2: Termez (Uzbekistan) - Naibabad (Afghanistan) - Logar (Afghanistan) - Harlachi (Pakistan) Further discussions involving Pakistan Railways and an Afghan delegation are scheduled for the Russia-Islamic World Forum in the Russian city of Kazan on May 15-16. Uzbekistan, which already maintains a direct rail connection to Afghanistan, continues to position itself as a logistics hub for trade between Russia, Central Asia, South Asia, and beyond. In January 2025, Tashkent extended its contract with the Taliban-led government in Afghanistan to operate and maintain the Hairaton to Mazar-e-Sharif railway -- a vital segment of the broader China-Kyrgyzstan-Uzbekistan-Afghanistan corridor. The corridor’s significance is expected to grow upon completion of the China–Kyrgyzstan–Uzbekistan railway. Currently, Central Asia’s rail links to China are limited to routes transiting Kazakhstan. In a major development on April 17, Russia’s Supreme Court lifted its 2003 ban on the Taliban, having until then designated the group a terrorist organization. The decision, formally allowing Russian state institutions to engage with the Taliban, opens the door to deeper trade and infrastructure cooperation. Russian Deputy Prime Minister Alexei Overchuk stated that this policy shift will facilitate the promotion of Russian exports and the realization of Afghanistan’s transport and logistics potential. Uzbekistan has pursued a consistent policy of engagement with Afghanistan, emphasizing economic cooperation over isolation. In October 2024, Abdul Ghafar Terawi began his tenure as the head of the Taliban-led Afghan diplomatic mission in Tashkent. Speaking at the 79th session of the UN General Assembly in September 2024, Uzbek Foreign Minister Bakhtiyor Saidov reaffirmed Uzbekistan’s commitment to regional stability. “Afghanistan is an integral part of Central Asia,” Saidov told the Assembly. “Addressing the Afghan issue is essential for ensuring sustainable development across the region”. He praised Uzbekistan’s role in implementing the Trans-Afghan railway, which he said would offer landlocked Central Asian economies access to international ports. “This will positively impact the economic development of the entire region,” Saidov noted.

Uzbekistan Attracts Over $8.7 Billion in Foreign Investment in First Quarter of 2025

Uzbekistan attracted more than $8.7 billion in foreign investment during the first quarter of 2025, marking a nearly 20% increase compared to the same period last year, according to President Shavkat Mirziyoyev's press service. The investment influx is being channeled into strategic sectors such as energy, metallurgy, chemicals, pharmaceuticals, transport, agriculture, water management, and public services. The government is placing particular emphasis on generating added value and creating new employment opportunities. By the end of the first half of the year, total foreign investment is projected to exceed $18 billion. For all of 2025, Uzbekistan aims to attract $42 billion in foreign investment and carry out 81 large-scale projects along with more than 8,000 small and medium-sized initiatives. In support of these goals, Mirziyoyev recently signed a decree aimed at bolstering production, exports, and entrepreneurship. Starting June 1, 2025, foreign nationals and stateless persons will be eligible to obtain a five-year residence permit by paying $200,000. An additional fee of $100,000 will apply for each accompanying family member, including spouses, children, and parents.

Uzbekistan to Establish Free Trade Zones Near Kyrgyz Border

Uzbekistan is preparing to establish new trade and industrial zones near its border with Kyrgyzstan, President Shavkat Mirziyoyev announced during a government meeting on April 16. The Andijan region currently exports approximately $200 million in goods to Kyrgyzstan each year. To boost trade further, Mirziyoyev proposed the development of industrial zones in Kurgan-Tepe and Khojaabad, modeled after similar projects on the Afghan border. He directed officials to engage with local businesses and select one of the two sites to begin detailed planning. Addressing Border Bottlenecks Concerns were raised during the meeting over logistical challenges at the “Dostlik” checkpoint in Khojaabad. Residents and freight operators have expressed frustration with persistent delays. Railway Project to Transform Regional Trade Mirziyoyev also highlighted the strategic importance of the planned Uzbekistan-Kyrgyzstan-China railway. Once completed, the railway is expected to reduce shipping times by up to a week and shorten the overall route by 1,000 kilometers. Cargo volumes could increase tenfold, he noted. The agreement to build the railway was signed on June 6, 2024, in Beijing. The 523-kilometer route will connect Kashgar in China to Andijan in Uzbekistan, passing through Kyrgyz cities including Torugart and Jalal-Abad. The project includes the construction of modern logistics hubs, warehouses, and terminals, and is intended to significantly strengthen transport links between Central and East Asia.