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M360 Eurasia Opens in Tashkent with Emphasis on Digital Growth

The GSMA M360 Eurasia conference officially opened on May 21 in Tashkent, marking the event’s first ever appearance in Uzbekistan. The gathering brought together telecommunications leaders, digital experts, and policymakers to explore how mobile technologies can fuel economic development and enhance quality of life across Eurasia. A key highlight of the opening day was the launch of the GSMA Mobile Economy Eurasia 2025 report. According to the findings, mobile services and technologies contributed $220 billion to the Eurasian economy in 2024, equivalent to 7.7% of the region’s GDP. That figure is projected to rise to $270 billion by 2030, comprising 8.3% of GDP. GSMA Director General Vivek Badrinath addressed the opening ceremony, underscoring the economic impact of connectivity. “Connectivity is a powerful engine of economic growth and a catalyst for transforming businesses and public services across the region,” he said. Badrinath emphasized that mobile technologies are already driving efficiency across Eurasia and will play an even greater role in the years ahead. Bridging the Digital Divide The first day’s sessions focused on mobile internet expansion, 5G deployment, and the application of artificial intelligence (AI) in daily life. Speakers presented data and personal stories illustrating both achievements and obstacles. A recurring theme was the disparity between mobile coverage and actual usage. While mobile internet now reaches two-thirds of the population (164 million people), approximately 80 million individuals still do not use it, despite living in areas with available access. The gap, experts noted, stems from issues such as affordability, digital literacy, and lack of awareness. John Giusti, GSMA’s Chief Regulatory Officer, stressed the urgency of inclusive digital policies. “How do we ensure digital transformation benefits everyone? We cannot afford to leave anyone behind,” he said. Giusti praised Uzbekistan’s Digital 2030 strategy as a model, citing the rapid expansion of 5G to all regional centers, enhanced internet bandwidth, and improved governance. Uzbekistan has led the region in progressive spectrum policy, being the first to allocate the 700 MHz band for broadband and to distribute parts of the C-band at no cost, steps that accelerated the country’s 5G rollout. “Forward-looking policies like these enhance service quality and contribute to economic growth,” Giusti added. Digital Reform in Uzbekistan Sherzod Shermatov, Uzbekistan’s Minister of Digital Technologies, outlined the country’s transformation. “In 2017, internet access was limited, expensive, and unavailable in many areas. Today, every school, hospital, and remote village has internet access,” he said. “Our focus is not just on availability, but also on affordability and quality.” Shermatov detailed the government’s efforts to digitize public services, support IT businesses through tax incentives, and upskill the workforce. “We are creating an environment where digital businesses can thrive,” he said, adding that the number of tech companies per million people has more than tripled since 2017. The minister also highlighted new services for persons with disabilities and the expansion of digital public services, reinforcing the country’s commitment to inclusive digital development. Showcasing Innovation A standout feature of the conference was the GSMA Foundry demo pod, which showcased...

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World Bank Approves $100 Million to Modernize Uzbekistan’s Power Grid

The World Bank has approved a $100 million credit to support the modernization of Uzbekistan’s electricity distribution system and facilitate the integration of renewable energy sources. Uzbekistan’s Regional Electric Power Networks (REPN) will contribute an additional $50 million to the initiative, marking the country’s first use of the World Bank’s Program-for-Results (PforR) financing model. Uzbekistan’s aging power distribution infrastructure poses serious challenges. Over 50% of the network is more than 30 years old and suffers from significant inefficiencies. As of 2024, technical issues contribute to the loss of approximately 13% of electricity, resulting in frequent outages across the country. The government has set a target of installing 25 gigawatts of renewable energy capacity by 2030. However, experts warn that without immediate upgrades to the national grid, Uzbekistan’s infrastructure will be unable to accommodate this expansion. In addition to technical improvements, the government is working to reduce commercial losses and enhance the financial viability of the electricity sector to attract private investment. Tatiana Proskuryakova, World Bank Country Director for Central Asia, highlighted the scale of the challenge. “The total investment needed is about $3 billion. We hope other development partners and private investors will join us in supporting REPN in this crucial effort,” she said. The combined $150 million from the World Bank and REPN will be deployed over the next five years to upgrade and expand infrastructure, particularly in regions such as Karakalpakstan and Surkhandarya. Planned improvements include: Construction or modernization of 6,000 kilometers of power lines Installation of 1,200 transformers Connection of 150,000 smart meters Deployment of 4,000 data concentrators to improve automation The program also aims to enhance REPN’s operational and financial management. It includes the development of advanced planning methodologies, strengthened financial oversight, and support for corporate governance reforms. By 2029, the initiative is expected to increase customer satisfaction, reduce annual CO₂ emissions by up to 450,000 tons, and raise the proportion of women in technical and leadership roles from 9% to 14%. Earlier this year, the World Bank also approved $153 million in support of a project aimed at reforestation and combating land degradation in Uzbekistan, as part of a broader regional climate resilience program.

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Uzbekistan and EU Discuss €12 Billion in New Projects

On May 13 in Tashkent, President Shavkat Mirziyoyev met with Eduards Stiprais, the European Union’s Special Representative for Central Asia, according to the presidential press service, with the two sides reviewing the outcomes of the first Central Asia-European Union Summit, held in Samarkand in April, and discussing ways to implement its decisions. Expanding Strategic Cooperation The talks focused on strengthening both bilateral and regional partnerships, with particular attention to advancing investment and technical cooperation initiatives valued at €12 billion. The parties also exchanged views on key regional developments and discussed plans for upcoming joint events. Economic ties between Uzbekistan and the EU have accelerated in recent years. Since 2020, trade between the two has doubled to more than €6 billion, while Uzbek exports to the EU have quadrupled. Over a thousand joint ventures have been launched, and the value of European investment projects in Uzbekistan now exceeds €30 billion. To attract more European investors, Uzbekistan has undertaken reforms to improve its business environment. In 2024 alone, trade with EU countries reached $6.4 billion, and more than a thousand European firms are currently operating in the country. Geopolitical Undercurrents During a separate visit to Uzbekistan in April, Russian Foreign Minister Sergey Lavrov criticized the EU’s growing presence in the region. He accused the EU of using development projects to expand geopolitical influence, particularly in sensitive areas such as customs and border management. “We are categorically against politicizing cooperation processes and introducing ideological elements associated with Western attempts to dominate,” Lavrov stated, whilst emphasizing that Russia respects the sovereignty of its neighbors and will refrain from interfering in their internal affairs. A Strategic Pivot Uzbekistan’s growing ties with the EU reflect a strategic pivot to diversify its economic partnerships and reduce dependence on traditional allies like Russia and China. This move aligns with the region’s broader efforts to balance relations with global powers while fostering local development. The EU’s €12 billion investment and technical cooperation initiatives signal a deeper commitment to Central Asia, enabling countries like Uzbekistan to modernize industries, improve infrastructure, and enhance trade networks. This shift not only boosts Uzbekistan’s economic growth but also creates new opportunities for regional integration by connecting Central Asia with European markets through preferential trade agreements and enhanced supply chains. However, the deepening EU-Uzbekistan partnership does not come without challenges in the region’s geopolitical landscape. Russia, historically a dominant influence in Central Asia, views the EU’s expanded presence as a potential threat to its sphere of influence. Likewise, China, which has established extensive connectivity projects under the Belt and Road Initiative, may perceive Uzbekistan's alignment with the EU as a cautious step towards reducing reliance on Beijing-led projects. This strategic recalibration creates a more competitive environment, with Uzbekistan leveraging its geographical position to attract diverse investments while carefully navigating tensions between rival powers. By maintaining a delicate balance, Uzbekistan could emerge as an economic and diplomatic bridge linking Europe, Central Asia, and East Asia.

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Russia Launches Production of Reactor Equipment for Uzbek Nuclear Project

Russia’s state nuclear corporation Rosatom has begun manufacturing reactor equipment for Uzbekistan’s first small nuclear power plant, marking a significant step in bilateral energy cooperation. The announcement was made during Energy Week in Tashkent, which runs from May 13 to 15, according to TASS. Rosatom’s facility in Saint Petersburg has completed the first steel casting for the RITM-200N reactor unit, weighing 205 tons. The company noted that this casting marks the initial phase of reactor assembly. Project Overview The nuclear power plant will be built in Uzbekistan’s Jizzakh region under a contract signed on May 27, 2024. It will comprise six small modular reactors (SMRs), each with a capacity of 55 megawatts, for a combined output of 330 megawatts. Atomstroyexport, a Rosatom subsidiary, is the main contractor, with participation from several Uzbek construction firms. The RITM-200N reactor is derived from Russia’s naval reactor technology and has been adapted for stationary, land-based use. Rosatom describes it as compact and efficient, with a design that enables accelerated construction timelines, qualities seen as key to addressing modern energy challenges. Strategic Importance Rosatom CEO Alexey Likhachev confirmed that all legal and contractual matters between Russia and Uzbekistan have been finalized. He added that construction could begin within a year, or potentially even sooner. Azim Akhmadkhodjaev, head of Uzbekistan’s Atomic Energy Agency, emphasized the strategic significance of nuclear energy in reducing dependence on imported fossil fuels. He also outlined national plans to increase the share of renewable energy in Uzbekistan’s energy mix from 16% to 54% by 2030. Energy analysts say that combining nuclear and renewable sources will help Uzbekistan meet its growing electricity needs while mitigating environmental impact.

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Uzbekistan to Chair ADB Board, Host 2026 Annual Meeting in Samarkand

Uzbekistan is poised to assume a greater leadership role within the Asian Development Bank (ADB) following key announcements at the institution’s 58th Annual Meeting of the Board of Governors, held on May 6-7 in Milan, Italy. Uzbekistan’s delegation, led by Deputy Prime Minister Jamshid Khodjaev, participated in the high-level event. According to the Ministry of Investments, Industry and Trade of Uzbekistan, the meeting concluded with the formal announcement that Uzbekistan will chair the ADB Board of Governors for the 2025-2026 term. Khodjaev was confirmed as the board’s next chair, a move widely seen as a reflection of the growing trust and confidence of international financial institutions in Uzbekistan’s reform trajectory. Additionally, it was agreed that Samarkand will host the ADB’s 59th Annual Meeting in May 2026. During the Milan meeting, the parties also signed an ambitious cooperation program outlining 23 new projects valued at $3.6 billion, to be implemented over the next two years. These initiatives will target strategic sectors such as education, drinking water supply, transport, and technical assistance. The announcement builds on an existing track record of cooperation. Recent projects include a $125 million ADB loan aimed at modernizing Uzbekistan’s water systems. This initiative encompasses the installation of smart water meters, mapping of water infrastructure, modernization of customer service centers, and training for utility staff, all intended to enhance national water security and service efficiency. Uzbekistan’s expanding partnership with the ADB is expected to accelerate its social and economic development objectives, particularly as the country continues to pursue wide-ranging reforms and infrastructure upgrades.

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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.