Uzbekistan Business & Economy - The Times Of Central Asia

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Gazprom Eyes Central Asia Amid European Sanctions

Facing a shortfall in European gas exports due to Western sanctions, Gazprom anticipates it will sell 34 billion cubic meters of unexported gas to Central Asia, according to recent reports. "In light of the ongoing changes in the global energy market, Gazprom remains committed to ensuring a reliable gas supply to Russian consumers and bolstering export capabilities. A key focus for the company in this regard has been fostering collaboration with Kazakhstan, Uzbekistan, and Kyrgyzstan," Gazprom stated in a press release. The company confirmed a drop in gas exports to Europe of 34 billion cubic meters in the first eleven months of 2023, marking levels not seen since 1996. An earlier announcement by the Ministry of Energy of Uzbekistan unveiled a 15-year gas purchase agreement with Gazprom, extending the deal to include Kazakhstan, which involves a new pipeline construction. In October, reports indicated the commencement of Russian gas deliveries to Uzbekistan through Kazakhstan. However, the specifics of this arrangement have not been disclosed to date. Alexey Miller, Gazprom's chief, outlined plans to expand the Central Asia gas pipeline system in November, highlighting memoranda signed with Uzbekistan, Kazakhstan, and Kyrgyzstan, and expressing optimism that the project will rejuvenate this pipeline network. During the Soviet era, gas from the region was transported to Russia via the Central Asia–Center gas pipeline. After the USSR's dissolution, the pipeline ceased operations and deteriorated, requiring substantial refurbishment to enable gas supplies from Russia to Central Asia. Miller noted the completion of the initial repair stage of the Central Asia-Center gas pipeline, facilitating gas delivery to Uzbekistan via Kazakhstan. Earlier this year, Tashkent inked a two-year gas supply contract with Gazprom amounting to approximately 2.8 billion cubic meters annually. Despite these developments, details regarding the pricing of the purchased gas remain undisclosed. Which according to Uzbekistan's Energy Minister, Zhurabek Mirzamakhmudov, is “in alignment with national interests and market dynamics.”

Uzbekistan Uzbekistan Business & Economy Uzbekistan Justice

Group-IB Opens First Digital Crime Resistance Center in Central Asia

TASHKENT - On December 26th, Group-IB, a leading force in cybersecurity technology combating digital crime, revealed the inauguration of its pioneering Digital Crime Resistance Center (DCRC) in Central Asia. Located in Tashkent, this state-of-the-art facility marks Group-IB’s expansion strategy, aimed at proactively confronting cyber threats worldwide, notably those originating from Russian-speaking hacker communities. Choosing Tashkent for their newest DCRC underlines Group-IB’s recognition of Uzbekistan’s economic significance and its potential to emerge as a global cybersecurity hub. The memorandum signed between the Central Bank of Uzbekistan and Group-IB in August 2023 further emphasizes the collaboration to counter cyberattacks and elevate cybersecurity measures. Group-IB plans to fortify its engagement with Uzbekistan’s higher education sector, emphasizing investment in the country's youth and its tech industry. Dmitry Volkov, CEO of Group-IB, highlighted, “Selecting Tashkent, Uzbekistan as the site for our fifth Digital Crime Resistance Center globally is a strategic move to heighten our understanding of Russian-speaking threat actors. Cybercrime knows no borders, necessitating a comprehensive approach. By establishing a DCRC in Tashkent, Group-IB aims to elevate cybersecurity standards not only in Uzbekistan but across the broader Central Asian region.”

Uzbekistan Uzbekistan Business & Economy Business & Economy Features

Uzbekistan’s Economy Resilient to Global Challenges, Says IMF

According to the IMF in analysis posted on their website, Uzbekistan’s economy has demonstrated remarkable resilience to recent global challenges. Following geopolitical shocks, the economy saw an influx of migrants and a large increase in remittances in 2022, boosting domestic demand. This, coupled with higher external demand, led to real GDP growth of 5.7% in 2022, the head of an International Monetary Fund staff team said in a statement following their visit to Uzbekistan earlier this month. While remittances have fallen this year to the trend prevailing prior to Russia’s war in Ukraine, a sizable fiscal expansion, and high wage and export growth are expected to sustain real GDP growth at 5.7% in 2023. Strong imports and declining remittances will contribute to a higher external current account deficit this year. International reserves are expected to remain ample at eight-and-a-half months of prospective imports. By the end of 2023, the 12-month inflation rate is projected to decline by more than 3% compared to the same period last year, to 9%, helped by a value-added tax rate cut, and lower international food and energy prices. The IMF says the outlook for 2024 remains positive, and while risks remain, growth is projected to remain above 5%. “Preserving macro-financial stability and continuing structural reforms are key to bolstering resilience and sustaining robust economic growth amidst the challenging current global context,” the statement said. Accelerating World Trade Organization negotiations and cooperating with neighboring countries to improve transport routes will reduce transportation costs and open new markets for Uzbekistan’s products, the IMF statement concludes.

Central Asia Uzbekistan Uzbekistan Business & Economy Business & Economy Uzbekistan Life & Culture Uzbekistan Local Politics

Government to Support Projects of Young Investors and Entrepreneurs

On December 25th, Deputy Minister of Investment, Industry and Trade, Khurram Teshabayev took part in a dialogue between the Ministry and young Uzbek investors and entrepreneurs, the Ministry’s official website reported. The event gathered senior officials of the ministry and more than 500 representatives of the younger generation - successful investors and business people from all regions of the country, in online and offline formats. Opening the meeting, Teshabayev emphasized the importance of involving young people in entrepreneurial and investment activities, saying that a number of opportunities have been created in Uzbekistan to realize the potential of young people, including within the framework of the “Uzbekistan-2030 Strategy”. Today, the task of providing comprehensive support to young entrepreneurs and investors has been elevated to the level of state policy, the Deputy Minister said. Youth industrial-entrepreneurial zones with preferential treatment for manufacturers have been created, a fund to support young entrepreneurs has been established, which provides assistance in the implementation of investment projects and entrepreneurial initiatives, covering the production of products and the provision of services, startup projects and scientific research. Young entrepreneurs can receive support both by obtaining an infrastructurally developed territory for organizing production facilities, and in the form of financial assistance for the implementation of projects for the production of import-substituting products that are in high demand in foreign markets. To date, the Fund for Support of Young Entrepreneurs has allocated funds for the implementation of about 700 youth projects, with about 150 of them located in Youth Industrial Zones.

Environment Uzbekistan Uzbekistan Business & Economy Business & Economy Uzbekistan Life & Culture

Natural Gas Production in Uzbekistan Down by 4.5 Billion Cubic Meters in 2023

According to Uzbekistan’s Statistics Agency, over the eleven months of 2023 to December, Uzbekistan reduced natural gas production by more than 4.5 billion cubic meters compared to the same period last year. From January-November, 42.7 billion cubic meters of gas was produced, compared to 47.3 billion cubic meters in 2022. Official statistics also recorded a decrease in the country’s oil production by 12,000 tons from January-November. In recent years, Uzbekistan’s natural gas industry has experienced problems due to the depletion of reserves at existing fields. This year, Uzbekistan started importing natural gas from Russia through Kazakhstan. A government meeting chaired by President Shavkat Mirziyoyev earlier this month focused on maintaining natural gas production volumes at existing fields and discovering new reserves. The meeting considered ways of transitioning to geological drilling at a depth of 6-7 kilometers using advanced technologies. It was stated at the meeting that in recent years, the depth of geological exploration has been increased from 2-3 kilometers to 4-5 kilometers. In 2024, it is planned to carry out seismic work on an area of 3.5 thousand square kilometers and drill new exploration wells.

Uzbekistan Environment Uzbekistan Uzbekistan Business & Economy

Chinese Company to Produce, Install Charging Stations for Electric Vehicles in Uzbekistan

Uzbekistan and China will jointly produce charging stations for electric vehicles, said the Uzbek Ministry of Energy. During its visit to China last week, a delegation of the Uzbek Research Institute of Renewable Energy Sources and the Henan Suda company discussed the implementation of a project for the production of electric charging stations and the exchange of the necessary technologies. As a result, they signed an agreement on cooperation in the field of infrastructure for electric transport. Henan Suda is a Chinese electric vehicle manufacturer based in the Henan Province. According to the agreement, by 2033 it is planned to install more than 70 centralized and 50,000 non-centralized charging stations throughout Uzbekistan. They will provide energy to over 700,000 electric vehicles. According to a presidential decree issued a year ago, Uzbekistan plans to install 2,500 charging stations for electric vehicles across the country by the end of 2024. Their presence will become mandatory for all new gas stations, business centers, hotels, shopping and entertainment centers.