Uzbekistan Business & Economy - The Times Of Central Asia

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Telecommunications

Uzbekistan to Sell Mobiuz in Bid to Attract Foreign Investment

Uzbekistan is aiming to raise $300 million through the sale of its mobile operator Universal Mobile Systems LLC, better known as Mobiuz, according to a report by Bloomberg. The planned sale forms part of President Shavkat Mirziyoyev’s broader push to reduce state ownership and attract foreign investment into key sectors of the economy. Sources familiar with the matter said the government would support a buyer who is willing to merge Mobiuz with other local telecom companies. Investors from Qatar, Saudi Arabia, Azerbaijan, and Europe have already expressed preliminary interest. A formal tender for 100% of Mobiuz was launched in June, with interested parties required to submit letters of intent by August 1. Rothschild & Co. is acting as the primary financial advisor for the deal. The State Assets Management Agency of Uzbekistan declined to comment on the sale. Part of a Broader Privatization Drive The Mobiuz sale is a key component of Uzbekistan’s ambitious privatization program, which aims to generate at least 10 trillion soums (approximately $786 million) in revenue this year. The government plans to divest stakes in 29 major companies across industries such as telecommunications and energy by the end of 2026. As of the end of 2024, Uzbekistan had 35.6 million mobile subscribers. Mobiuz accounted for roughly 20.9% of the market, according to BMI, a division of Fitch Solutions. The operator’s main competitors include state-owned Uztelecom JSC, which had a brand valuation of $241 million last year, as well as Coscom LLC and Unitel LLC, the latter of which is owned by Dubai-based Veon Ltd. In 2024, Mobiuz reported $164 million in revenue and an EBITDA of $41 million, according to figures from the State Assets Management Agency. Strategic Investment Opportunity Veon declined to confirm whether it plans to participate in the tender but said it “regularly reviews organic and inorganic growth opportunities” and considers Uzbekistan a key market in which it is “pursuing an ambitious growth strategy and expanding our digital portfolio.” The Uzbek government hopes the sale will bring in fresh capital and modern expertise to support the development of the country's rapidly expanding telecom sector. Officials also expect that increased competition will lead to improved services for consumers.

Civil Aviation

Central Asia Charts New Course as Russian Aviation Falters

Sanctions against Russia may intensify if U.S. President Donald Trump escalates pressure on the Kremlin and Vladimir Putin. But even without additional measures, several sectors of Russia’s economy are already buckling under strain. Among the most vulnerable is civil aviation, now grappling with “fleet cannibalization”, a practice born of scarcity and isolation. In this context, alarmist claims from Russian aviation analysts that Central Asian airlines might soon replace Russian carriers not only on international routes but potentially within Russia itself are being reassessed. So, what is actually happening and why? Squeezing Russia Out One of the most overlooked aviation developments of 2024 was the announcement at the Central Asian Aviation Summit in Astana that regional countries were forming their own civil aviation regulatory body. As Amir Akhmetov, senior advisor to the director of the Aviation Administration of Kazakhstan, put it: “In the changing geopolitical environment of the republics of Central Asia and the South Caucasus, together with like-minded countries, they are creating their own regional civil aviation organization, the Eurasian Civil Aviation Conference (EACAC).” This initiative, first proposed by Astana in 2023, includes Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan, as well as Armenia, Azerbaijan, Georgia, Moldova, and Mongolia. Although initially scheduled for 2025, the first EACAC meeting took place in Almaty in November 2024. Russian observers have taken note. The publication Versiya, which had predicted Russia’s marginalization in the Central Asian aviation market as early as 2016, commented on the development in stark terms: “It is hard not to notice that this is truly a momentous event in the field of civil aviation regulation within the EAEU member states, aimed precisely at pushing Russia out of the process… which, after the formation of the announced structure, will de facto exist and be managed under direct Anglo-American influence.” However alarmist the tone, the underlying concern is not unfounded. Russia’s aviation sector is increasingly isolated and dependent. By December 2024, it was confirmed that a new aircraft maintenance hub would be built in Aktau, one of Kazakhstan’s four major aviation centers. The project, spearheaded by Turkish Technic, YDA, and ASFAT, will serve civil and military aircraft from Kazakhstan, Russia, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan. According to then-Minister of Transport Marat Karabayev, “The center will serve 411 civil aircraft... As a result of the project, the airport’s cargo handling capacity will increase to 200,000 tons per year, with an annual turnover of 520 billion tenge ($996.7 million).” Aviation in Central Asia: A Regional Snapshot In Kazakhstan, liberalization and competition have allowed the civil aviation sector to flourish. National carrier Air Astana operates hubs in Almaty and Astana and is widely considered among the best airlines in the post-Soviet space. Its low-cost subsidiary, FlyArystan, has grown rapidly, fueled by a strong Airbus fleet, now over 60 aircraft, with new A320 and A321 deliveries annually. Private airline SCAT flies across the former USSR and Asia, while Qazaq Air, now rebranded as Vietjet Qazaqstan, entered into a strategic partnership in 2025 with Vietnam’s Sovico Group, owner...

Electricity

Tajikistan to Supply Rogun Hydropower to Uzbekistan at 3.4 Cents per kWh

Tajikistan and Uzbekistan have agreed to a new phase of energy cooperation that will see electricity from Tajikistan’s Rogun Hydropower Plant (HPP) exported to Uzbekistan at an initial price of 3.4 US cents per kilowatt-hour, according to Tajikistan’s Ministry of Justice legal information portal. The price, which includes a zero-rated VAT, will increase by 1% annually starting in the second year of supply. Deliveries are scheduled primarily during periods of planned shortages in Uzbekistan’s energy system and will follow an approved schedule coordinated by the countries’ respective system operators. The volume and technical details of the supply arrangement will be formalized in a separate electricity purchase agreement between Rogun HPP and Uzbekistan’s Uzenergosotish company. Electricity will be transmitted via interstate power lines, supplementing ongoing exports from Tajikistan’s national utility Barki Tojik. Regional Energy Integration The Rogun HPP, a key component of Tajikistan’s long-term energy strategy, is also drawing interest from Kazakhstan, which recently announced its intent to purchase electricity from the plant. The price for Kazakhstan is likewise set at $0.034 per kWh, excluding VAT, and subject to an additional transit fee based on seller-incurred costs. Payments are to be made within 35 days of each delivery period. During the plant's current construction phase, electricity exports will occur only during the vegetation season (April 1 to September 30). Once Rogun reaches full operational capacity, deliveries will expand to year-round. Agreement Terms and Project Outlook The bilateral agreement will enter into force once both governments complete their domestic legal procedures and confirm implementation via diplomatic channels. The initial agreement term is 20 years, with automatic 10-year extensions, unless one party opts out by notifying the other at least six months prior to expiration. Tajikistan has exported electricity to Uzbekistan every summer since 2018, strengthening energy ties in a region historically marked by infrastructure fragmentation. Upon completion, Rogun HPP will be the largest hydropower facility in Central Asia, with an installed capacity of 3,780 megawatts (MW) and estimated annual output of 14.4 billion kWh. Currently, two of the plant’s six turbines are operating at partial capacity, having come online in 2018 and 2019. Full commissioning of the sixth unit is expected by 2029. In 2024, Rogun generated 1.22 billion kWh, contributing 5.5% of Tajikistan’s total electricity production, according to the Ministry of Energy.

Energy Deficit

Central Asia Faces Growing Energy Deficit

Central Asia is heading toward a serious energy crunch. According to the Logistan.info portal, regional demand for imported natural gas is expected to reach 25 billion cubic meters annually by 2030. This looming shortfall is driven by rapid population growth, around one million people per year, industrial expansion, declining domestic production, and the deteriorating state of aging infrastructure. Recent accidents in Bishkek, Tashkent, Dushanbe, and Ekibastuz illustrate the scale and urgency of the problem. Kazakhstan: Rising Output, Falling Exports Kazakhstan produced 59.2 billion cubic meters of gas in 2024, representing a 6.4% increase from the previous year. However, nearly half of this was reinjected into oil reservoirs to sustain production. Only 29 billion cubic meters were available for domestic consumption. Soaring internal demand has already led to a sharp decline in exports to China, which fell 40% to 8.7 billion cubic meters. Uzbekistan: From Exporter to Importer Uzbekistan's situation is even more precarious. In 2024, the country produced 44.6 billion cubic meters of gas and 713,400 tons of oil, figures that are in decline, dropping 4.5% and 8.5% respectively. To cover the shortfall, Tashkent has turned to Russia and Turkmenistan, purchasing $1.7 billion worth of gas. Uzbekneftegaz expects to produce just 26.5 billion cubic meters of commercial gas in 2025, far short of projected domestic needs. Kyrgyzstan, Tajikistan, and Turkmenistan Kyrgyzstan and Tajikistan produce virtually no hydrocarbons and rely entirely on imports of these resources. Meanwhile, demand continues to grow in tandem with their populations, and domestic energy generation falls short of even basic consumption needs. Turkmenistan remains the region’s top gas exporter, sending 41.3 billion cubic meters abroad in 2024. However, Ashgabat’s ability to increase exports is limited by its own growing domestic consumption, binding long-term contracts with China, and a lack of large-scale infrastructure development. Investment, Delays, and Structural Challenges While Central Asian governments have announced plans for new hydroelectric plants, combined heat and power stations, and nuclear power facilities, tangible progress remains slow. Kazakhstan, Kyrgyzstan, and Uzbekistan have yet to break ground on any of their proposed nuclear power projects. Key obstacles include a shortage of qualified personnel, water scarcity, environmental concerns, and, above all, insufficient funding. Without substantial foreign investment, modernization efforts are likely to stall. To ease financial pressures, countries in the region have begun raising gas and electricity tariffs. These price hikes aim to offset upgrade costs but have provoked public backlash and fueled inflation. In Uzbekistan, for instance, inflation accelerated to 15% in May 2025, with energy prices cited as the primary driver. The Russian Option Forecasts for regional gas imports remain imprecise, but analysts estimate the need could rise to 20-25 billion cubic meters annually by 2030. Russia appears poised to become the main supplier, though details of supply agreements, including pricing, volumes, and terms, have not been disclosed. Central Asian governments are attempting to keep cooperation with Moscow strictly within the economic sphere, wary of entangling political dependencies. As a result, the region faces a dual challenge: securing energy stability through...

Green Energy

Uzbekistan, Azerbaijan, and Kazakhstan Launch Joint Venture for Green Energy Corridor

Energy companies from Uzbekistan, Azerbaijan, and Kazakhstan have launched a joint venture to support the development of the Caspian Green Energy Corridor, according to the press service of National Electric Networks of Uzbekistan. The new company, “Green Corridor Alliance,” was officially established on July 1 in Baku. It brings together three national power operators: Azerbaijan’s Azerenerji, Kazakhstan’s KEGOC, and Uzbekistan’s National Electric Networks. The joint venture is expected to play a pivotal role in exporting green electricity to Europe while bolstering long-term energy security across the region. Officials have highlighted the corridor’s strategic importance in advancing sustainability goals. “This initiative is important for our energy security and green growth,” the Uzbek side stated. As previously reported by The Times of Central Asia, the Caspian Green Energy Corridor is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). In April, the three countries signed a Memorandum of Understanding with both institutions in Baku to initiate a feasibility study. The corridor aims to enhance cross-border electricity trade and promote renewable energy use throughout Central Asia and the Caspian region. The long-term objective is to integrate the power grids of Uzbekistan, Kazakhstan, and Azerbaijan, creating a streamlined route for clean energy exports to Europe. The agreement builds on a strategic partnership formalized by the presidents of the three countries during the COP-29 climate summit held in Baku in November 2024.

Gold

Uzbekistan’s Gold Exports Surge 55% in Early 2025, Reaching $6.49 Billion

Uzbekistan’s gold exports surged in the first five months of 2025, reaching $6.49 billion, a 54.8% increase compared to the same period in 2024, according to the National Statistics Committee. Gold now accounts for nearly 44% of the country’s total export revenues, up from $2.66 billion and 37.1% during the same period last year. The rise in gold exports reflects a combination of high global prices, hovering near record highs of around $3,000 per ounce and strong international demand for bullion. Analysts note that much of the growth occurred after February, contributing to a sharp uptick in trade revenue. A Strategic Export Commodity Uzbekistan remains one of the world’s top gold producers, largely due to massive operations such as the Muruntau mine, which in 2021 produced approximately 85,000 kg of gold. According to the World Gold Council, Uzbekistan produced 119.6 tonnes of gold in 2023, ranking tenth globally. Gold plays a pivotal role in Uzbekistan’s economy, generating significant export earnings and bolstering foreign currency reserves. It remains a central pillar of the country’s trade strategy and monetary policy. Record Foreign Reserves With the rise in gold exports, Uzbekistan’s international reserves have reached an all-time high. As of late May 2025, reserves stood at $49.66 billion, up from about $37.4 billion in mid-2024. Much of this increase is attributed to gold: the Central Bank of Uzbekistan’s holdings grew both in volume and value, with the rise in gold prices adding over $1.8 billion in recent months. In January 2025, Uzbekistan even became the world’s top official-sector gold buyer, a move aimed at strengthening its reserve position. In 2023, the country earned $8.15 billion from gold exports, nearly double the previous year’s figure, despite some sales from national reserves. These trends underscore gold’s growing importance as both a trade driver and a stabilizing force for Uzbekistan’s economic and financial position.