Uzbekistan Business & Economy - The Times Of Central Asia

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Energy Security

Central Asia’s Fuel Squeeze Becomes a Winter Energy Security Problem

Central Asia’s fuel squeeze is moving from filling stations into winter planning. Governments are now tracking gasoline and diesel, gas pipelines, coal deliveries, power imports, jet fuel, and emergency repair crews. Seasonal fuel and power stress is familiar across the region, but the current pressure - tied to Russia, the main supplier for several regional fuel flows - has arrived early. Russia’s own fuel crisis has sharpened the risk. Ukrainian drone attacks and repair work have cut refinery output, while export limits have pushed more Russian supplies back into the domestic market. Reuters reported queues, regional restrictions, and gasoline above 100 roubles a liter at some independent stations. President Vladimir Putin acknowledged the strain on June 28. “You are well aware that problems for drivers and for businesses persist,” he said, adding that “the harvest depends on” keeping seasonal fuel schedules for farms. For Central Asia, Russian shortages travel through contracts, rail slots, import prices, and public nerves. Kyrgyzstan is among the most exposed. The country consumes about two million tons of fuels and lubricants each year, and almost 95% comes from Russia, according to Deputy Energy Minister Nasipbek Kerimov. “Due to the lack of adequate oil and gas production, we remain a country dependent on imports,” Kerimov said. Bishkek has asked Russia, Kazakhstan, Belarus, Azerbaijan, Uzbekistan, and Turkmenistan for help securing supplies. That dependence is now impacting households, farmers, and small transport firms. The cabinet has capped pump prices and set a subsidy mechanism through September 30. Kerimov said importers were seeing offers at several prices, but promised that “there should be no shortage on the domestic market.” Oil traders put AI-92 stocks at 30 to 45 days, while diesel remained available for harvest work. Kyrgyzstan is trying to buy time through domestic refining. The modernized Junda refinery in the Chuy Region has been pressed to raise gasoline output to 24,000 tons a month soon, then 50,000 tons a month by the end of 2026, with finished products directed to the domestic market. Those gains would help, but Russian supply still sets the pace. Uzbekistan has the Bukhara and Fergana oil refineries, the Altyaryk unit of the Fergana refinery, and the Uzbekistan GTL complex, but demand has still moved faster than domestic supply. In January-April 2026, gasoline imports reached 568,700 tons, worth $327.1 million, more than double the same period in 2025. Local refineries produced 417,500 tons over those four months. A shift away from AI-80 gasoline has also pushed drivers toward AI-92 and AI-95. The pressure reached the exchange in late June. AI-92 gasoline climbed to a record 13.919 million soums per ton on June 29, about $1,160, after an 11.8% rise since the start of the month. Jet fuel has become an issue, too. Uzbekistan Airways reduced some Russia flight frequencies in June, citing aviation fuel shortages and higher costs. Tashkent is now preparing for winter in concrete volumes. On July 6, President Shavkat Mirziyoyev reviewed measures for the 2026-2027 autumn-winter season. The plan includes replacing 53.7...

New Air Route

Direct Flights Between Tashkent and Lake Issyk-Kul Launched

Kyrgyzstan’s state-owned Asman Airlines will launch a seasonal direct service between Tashkent and Lake Issyk-Kul on July 8, expanding transport links between Kyrgyzstan and Uzbekistan during the peak summer tourism season. The route is being introduced in partnership with Uzbek tour operator Malva Tour and is intended to make travel to Kyrgyzstan’s largest resort area more convenient for visitors from Uzbekistan. Flights will operate once a week, every Wednesday, arriving at Issyk-Kul International Airport in the village of Tamchy on the lake’s northern shore. The journey will take approximately one hour and 20 minutes. Round-trip fares start at $160, according to Asman Airlines. Lake Issyk-Kul, one of Central Asia’s most popular summer destinations, attracts visitors from across the region with its mountain scenery, beaches, and resort infrastructure. The new route is expected to strengthen tourism ties between the neighboring countries by reducing travel time and improving direct access to the lake. Uzbekistan remains Kyrgyzstan’s largest source of international visitors, accounting for more than 40% of all inbound foreign tourists each year. Visa-free travel, close geographic proximity, and relatively affordable holiday costs have made Kyrgyzstan a popular destination for Uzbek travelers. The launch of the new route reflects broader efforts by Central Asian countries to improve regional connectivity and capitalize on growing cross-border tourism as travel demand continues to recover.

New Tashkent Airport

Uzbekistan Signs Contract for New Tashkent Airport, Construction to Run Through 2030

On June 17, 2026, on the sidelines of the 5th Tashkent International Investment Forum, Uzbekistan Airports and a consortium of investors led by Saudi Arabia’s Vision Invest signed a public-private partnership agreement to build and operate a new international airport in the Tashkent region. The project began with a ceremonial groundbreaking in October 2025, attended by President Shavkat Mirziyoyev. The June agreement is a practical next step: the project now has a signed contract, defined investor shares, and an approved construction schedule. The international consortium will handle construction and operation of the airport. Vision Invest holds 45%. Japan’s Sojitz Corporation holds 30%, and South Korea’s Incheon International Airport Corporation holds 15%. The remaining 10% belongs to state-owned Uzbekistan Airports. Under the agreement, the private partner will manage the airport for 35 years, until around 2065. The private investors are responsible for the passenger terminal and forecourt area. The state remains responsible for building and operating the airfield infrastructure, including runways and taxiways. Construction was formally authorized by Presidential Resolution No. 353, dated November 25, 2025. The new airport will be located in the Urtachirchik and Kuyichirchik districts of the Tashkent region, on a 1,310-hectare site. The first phase includes two 4-kilometer runways and a 208,000-square-meter passenger terminal. It also includes 98 aircraft parking stands, a fuel complex, and a modern air traffic control tower. Construction is scheduled from 2026 to 2030, with commissioning planned for late 2030. At full capacity, the airport will be able to handle up to 20 million passengers and process 129,000 tons of cargo per year. It will support up to 30 takeoffs and landings per hour and accommodate 62 aircraft at once. In the longer term, the terminal will be four times larger than Tashkent’s current airport and able to serve up to 46 million passengers a year. It will be supported by more than 40 jet bridges and 160 aircraft stands. The project is driven by passenger growth that the current airport can no longer accommodate. Over the past eight years, passenger traffic in Tashkent has tripled to 9 million a year and is expected to reach 24 million by 2040. The existing airport is designed for just 11 million passengers and sits within city limits, making expansion impossible. The current airport is projected to reach full capacity by 2029, after which it is expected to close once the new facility opens. The new airport will form part of a larger transport hub. The complex will connect directly to the Tashkent-Samarkand toll highway and to routes serving Andijan and Bostanliq. A dedicated high-speed rail station will be built on site, and shuttle services will link Tashkent with the new location. The first phase is estimated at $2.5 billion and is expected to attract about $3 billion in foreign direct investment. The airport has also been presented as the first in Central Asia built according to “green” construction principles. Preparatory work before the signing included environmental and social impact assessments in line with the requirements...

Fuel Shortage

Uzbekistan Faces Fuel Shortage Pressure as Imports Rise

Central Asia is facing a new wave of tension in the market for fuels and lubricants. Shortages of gasoline, diesel fuel, and jet fuel have affected the entire region to varying degrees, but the situation is developing differently in each country. For Kyrgyzstan and Tajikistan, the problem is one of direct import dependence. Kazakhstan and Uzbekistan, which have their own production and refining capacity, are in a more stable position. However, rapidly growing domestic demand is increasingly tying them to imports. The Times of Central Asia previously reported that Kazakhstan is tightening domestic controls, building up reserves ahead of refinery maintenance, and considering fuel imports from China to protect its own market. Kyrgyzstan, meanwhile, has appealed to Azerbaijan, Belarus, Kazakhstan, Russia, Turkmenistan, and Uzbekistan for help in securing fuel supplies, as shortages inside Russia are placing additional pressure on the local fuel market. Uzbekistan’s refining system includes the Bukhara and Fergana oil refineries, the Altyaryk unit of the Fergana refinery, and the modern Uzbekistan GTL complex, which produces synthetic liquid fuels from natural gas. The system produces gasoline, diesel, jet fuel, oils, naphtha, bitumen, and liquefied gas. From January through May 2026, Uzbekistan imported 642 million liters of gasoline worth $373 million. Import volume was 84% higher than in the same period last year, while import value rose by 85%. Imports now cover nearly half of domestic demand. Domestic gasoline production during the five-month period totaled 502,200 tons, equivalent to about 670 million to 678 million liters. Output has declined in recent years, falling from 1.33 million tons in 2023 to 1.2 million tons in 2025. The pressure has also reached the domestic fuel exchange. In late June, AI-92 gasoline prices in Uzbekistan hit a record high, with one ton selling for 13.919 million soums. Since the start of June, prices have risen by about 11% to 12%. The steepest increase came in the first 10 days of the month. Supply on the exchange then fell sharply, from up to 7,700 tons in the first half of June to 1,600 to 2,400 tons in the second half. The price rise has already begun to affect retail fuel costs, especially in Tashkent. One reason for the imbalance was Uzbekistan’s phased reduction of AI-80 gasoline under an environmental reform. In May, Odil Temirov, deputy chairman of Uzbekneftegaz’s board for refining, said the Bukhara Oil Refinery would begin switching from AI-80 to AI-91 and AI-92 in November and December, with a full phase-out of AI-80 from the start of 2025. He said AI-80 accounted for 85% of output at the refinery, while AI-92 made up the remaining 15%, and that this ratio would begin to change in November. Demand quickly shifted toward AI-92 and AI-95, but domestic production has not yet adapted to the new consumption pattern. Additional pressure came from events in Russia, which remains one of the key suppliers of gasoline, refinery feedstock, and aviation fuel. Reduced output at Russian refineries, caused by repairs and the aftermath of attacks on energy...

Tourism Development

Tashkent Tourism Infrastructure to Be Upgraded After 3 Million Visitors

Nearly three million foreign tourists have visited Tashkent since the start of the year, prompting authorities to plan a series of practical upgrades aimed at making the Uzbek capital easier to navigate on foot. The measures, discussed at a July 4 government meeting on Tashkent’s development, include free digital tourist maps, more public toilets, and an increase in waste bins across the city. According to official figures cited at the meeting, close to three million foreign visitors have travelled to Tashkent so far this year. Officials said many tourists explore Tashkent on foot. Authorities now plan to install free tourist maps at transportation points across the city, with walking routes also available for download to mobile phones. The plans point to a growing challenge for Tashkent: the city is receiving more visitors, but still lacks some of the basic infrastructure expected in a major tourist destination. Navigation, public sanitation, and waste collection are increasingly part of the tourism offer, particularly for visitors exploring the city independently rather than through organized tours. The shortage of public toilets was identified as a particular problem in areas popular with pedestrians and tourists. Officials have been told to prepare a dedicated program within one month, with land plots to be auctioned this year for the construction of 15 to 20 modern public toilets in each district of the capital. The initiative builds on earlier attempts to modernize public sanitation in Tashkent. In 2023, the city opened Uzbekistan’s first automated public toilet on Lokomotiv Street in the Mirabad district. According to Gazeta.uz, the facility operates around the clock, includes shower facilities, is accessible for people with disabilities, and has a vending kiosk selling hygiene products and diapers in the women’s section. Authorities have also allocated 80-100 square meter plots through electronic auctions to more than 150 private businesses for the installation of additional modern public sanitation facilities. Waste collection is another part of the program. Authorities plan to increase the number of bins on streets, especially around tourist zones, a relatively small intervention but one that can have an immediate effect on how visitors experience the city. The focus on sanitation also reflects broader environmental and public-health challenges. In Yale University’s 2024 Environmental Performance Index, Uzbekistan ranked 107th out of 180 countries, with an overall score of 42.6. The country ranked 67th for unsafe sanitation and 43rd for unsafe drinking water, while its controlled solid waste score was listed at zero, highlighting continued weaknesses in waste management and urban services.

Central Asian Migrants

Russia Still Dominates Uzbek Remittances Despite Falling Share

Remittances to Uzbekistan continued to rise in the first quarter of 2026, even as Russia’s share of migrant transfers declined, according to a new labor market review by the Central Bank of Uzbekistan. Uzbek migrant workers sent home $3.8 billion in the first three months of the year, up 13% from the same period in 2025. Russia remained by far the largest source of those transfers, accounting for 72.4% of the total, but its share fell from 77.6% a year earlier. More than 1.63 million Uzbek citizens traveled abroad in the first quarter of 2026, an increase of 11.6% compared with the same period last year, according to the Central Bank. The figure covers outbound travel by Uzbek citizens, rather than labor migration alone, but it points to continued growth in population mobility. Air travel also expanded sharply during the first three months of the year, with 2.25 million passengers transported by air, up 32% year-on-year. Russia remained the main destination for Uzbek labor migrants, although the number of citizens working there under the country’s patent system declined. A work patent is the permit used by many visa-free foreign nationals, including Uzbeks, to work legally in Russia, with workers making regular tax-style payments to maintain the document. According to the Central Bank, 1.34 million Uzbek citizens were working in Russia under work patents in the first quarter, down 8.8% from the previous quarter and 1.8% compared with the same period in 2025. The bank said the decline reflected seasonal factors as well as changing conditions in external labor markets. Those "changing conditions" include a weaker ruble and tighter migration enforcement in Russia, where the price of a work patent has also risen. In Moscow, for example, the monthly payment required to maintain a migrant work patent increased from 8,900 rubles (about $120) to 10,000 rubles (about $135) from January 2026. There has also been a gradual opening of alternative destinations for Uzbek workers. Citing Turkey’s migration authority, the Central Bank said the number of Uzbek citizens in Turkey holding official residence or migration permits reached nearly 70,000 in the first quarter, up 14% year-on-year. The number of Uzbek nationals residing in South Korea also continued to grow, reaching 99,600. Meanwhile, Kazakhstan’s share of remittances rose from 3.1% to 4.1%, Europe’s increased from 2.3% to 3.3%, and South Korea’s rose from 3.5% to 4.1%. The combined share of other countries climbed from 13.6% to 16.2%. The figures suggest that Uzbek labor migration is becoming more geographically varied, but Russia remains dominant. Its 72.4% share of remittances is still more than 17 times the share of Kazakhstan or South Korea, and almost 22 times Europe’s share. The latest figures build on a broader trend identified by the Central Bank last year. As The Times of Central Asia previously reported, Uzbek migrant workers sent home $4.8 billion in the second quarter of 2025, up 21.4% year-on-year. At the time, the Central Bank linked the increase to stable exchange rates in host countries, rising wages, and continued economic activity, while noting particularly strong growth...