Uzbekistan Features - The Times Of Central Asia

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U.S. Sanctions Former Uzbek Officials in Orphan Abuse Case

The United States has imposed sanctions on three former officials in Uzbekistan’s government who were involved in human trafficking as well as physical and sexual violence toward orphan children. The three people, who carried out the crimes during their tenure as government employees, are now ineligible for entry into the United States and any property or entities in the U.S. that they own are “blocked” in line with the sanctions, the U.S. Department of the Treasury said Monday. American citizens are also barred from doing any transactions related to the blocked assets, it said. The sanctioned individuals were identified as Yulduz Khudaiberganova, who was director of a state-run orphanage in Urgench, in Khorezm region, at the time of the abuses; Anvar Kuryazov, who was head of the Khorezm regional justice department; and Aybek Masharipov, who was head of the district emergency department. “For at least 10 months, Khudaiberganova forced at least three underage girls to engage in sexual acts with at least six different men in exchange for funds and goods,” said the Treasury statement, which was released on the International Day for the Abolition of Slavery. “Khudaiberganova used various coercive tactics to ensure the girls’ compliance, including physical beatings, threats, starvation, and isolation from their peers. Both Masharipov and Kuryazov demanded sexual access to orphans in compensation for ‘gifts’ they provided to the orphanage. Kuryazov and Masharipov repeatedly visited the orphanage in order to prey upon the young girls,” it said. Uzbek media have previously reported on the case, saying a district court in Khorezm sentenced Khudaiberganova to five and a half years in prison, while the two men were given one and a half years of partial house arrest that barred them from leaving their homes from 10 p.m. to 6 a.m. The sentences were handed down in 2022 but an appeals court took up the case in 2023 after Nemolchi.uz, a non-governmental group that campaigns against gender-based violence, publicized the light sentences, causing a public outcry. Kuryazov and Masharipov were subsequently sentenced to three years in prison. “This was the most severe punishment given the legislation in force at the time of the crime,” Nemolchi.uz said on Telegram after the U.S. sanctions announcement. The group has pushed for tougher laws in Uzbekistan to shield children from sexual abuse, and the government has taken steps to strengthen protections.

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Russian MP Blames Central Asians for Ruble Depreciation

Mikhail Matveyev, a member of Russia’s State Duma, has attributed the depreciation of the Russian ruble in part to remittances by labor migrants from Central Asia and the Caucasus. In a statement on his Telegram channel, Matveyev argued that millions of migrants working in Russia transfer their earnings abroad, removing significant sums from the Russian economy. According to him, these remittances fuel demand for foreign currencies, such as the dollar, thereby weakening the ruble. Citing statistics, Matveyev claimed that in 2023, labor migrants sent $5.7 billion from Russia to Tajikistan - nearly half of Tajikistan’s GDP. Kyrgyzstan received remittances equal to about one-third of its GDP, while Uzbekistan received over $14.5 billion, accounting for 12-15% of its GDP. Other significant recipients included Georgia (over $2 billion), Armenia (over $3 billion), and Kazakhstan. Matveyev also criticized some of these countries for their stance on Western sanctions against Russia. He noted that several countries in the Eurasia region have joined sanctions targeting Russian banks and refuse to process transactions using the Russian Mir payment system. This, he said, forces migrants to withdraw cash dollars from Russia to transfer home, exacerbating the pressure on the ruble exchange rate. The MP’s remarks came amid a sharp drop in the ruble’s value against the dollar last week. For more than 30 years, millions of Central Asian citizens have migrated to Russia for work. However, recent trends indicate an increase in return migration, driven by Russia’s deteriorating economic conditions, stricter immigration rules, worsening attitudes toward Central Asian workers, and attempts by Russian authorities to recruit immigrants - both with and without Russian citizenship - for military service in Ukraine.

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Russian Journalist Pivovarov Detained After Filming Cotton Fields in Karakalpakstan

Alexey Pivovarov, a Russian journalist and YouTuber, was detained in Nukus, the capital of the autonomous Uzbek republic of Karakalpakstan. He was questioned by authorities along with the photography team for his project, Redaktsiya (Editorial), and Feride Makhsetova, a journalist from the local news portal Hook. Their arrest was initially reported by Hook. The journalists were detained "for an interview", supposedly following a complaint by an unidentified citizen. Authorities confiscated the visual material collected by the team, who, according to Pivovarov on his Telegram channel, had been filming in one of the region's cotton fields. The Karakalpakstan branch of the Agency for Information and Mass Communications claimed that the detentions occurred because the journalists were not accredited by the Ministry of Foreign Affairs. Later, Pivovarov, Makhsetova, and their team were released by the Nukus Department of Internal Affairs. They subsequently traveled to Tashkent without the materials they had filmed in Karakalpakstan. The Russian Embassy in Uzbekistan addressed the incident, stating that it had contacted Uzbekistan’s Ministry of Foreign Affairs and would provide support to the Russian citizens involved. In a message on his Telegram channel, Pivovarov described the officials in Nukus as “friendly and polite.”

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Uzbekistan Completes Key Step in WTO Accession with China Agreement

Uzbekistan has successfully concluded bilateral negotiations with China regarding its accession to the World Trade Organization (WTO). Azizbek Urunov, Special Representative of the President for the WTO, announced this milestone in a LinkedIn post. “[It was a] very short but productive visit to Beijing! Yesterday, we completed bilateral negotiations on Uzbekistan’s accession to the WTO with the People’s Republic of China,” Urunov wrote. He expressed gratitude to China’s Ministry of Commerce, Deputy Minister Li Fei, Director Li Defeng, and their teams for their cooperation. “[It is] very important at [the] year-end to finish negotiations with the two biggest global trade players – the United States and China. Twenty-two countries are there, a few left!” The Times of Central Asia reported that this achievement follows Uzbekistan’s recent finalization of WTO accession negotiations with the United States, Uzbekistan’s WTO accession is a cornerstone of the country’s ongoing economic reforms, which aim to integrate its economy into the global trade system. Johanna Hill, WTO Deputy Director-General, praised Uzbekistan’s progress: “Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform in the strategic region of Central Asia, with WTO accession very high on the government’s agenda.” Hill referenced a WTO report indicating that countries implementing market reforms during WTO accession experience growth rates 1.5% higher than those without such reforms. With negotiations with major economies like the United States and China now complete, Uzbekistan is edging closer to its goal of WTO membership, a move poised to boost its global trade prospects and economic development.

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Uzbekistan’s Financial Data Now Available on Bloomberg Terminal

Market data from the Uzbek Republican Currency Exchange (UZCE) is now accessible on the Bloomberg Terminal, marking a significant step toward integrating Uzbekistan’s financial market into the global economy. Bloomberg users can now analyze real-time pricing and indicators for Uzbekistan’s currency, money markets, state securities, and derivatives. Expanding Accessibility The UZCE, which includes 35 local commercial banks, six brokerage firms, and one foreign custodian bank, serves as Uzbekistan’s primary platform for liquidity. It offers trading in approximately 20 instruments across various market segments. In 2023, the UZCE reported a total trading volume of $81 billion. By making this data available on Bloomberg, Uzbekistan aims to attract foreign investors by providing them with the tools to understand its financial market and assess trends more effectively. This transparency simplifies risk assessment and enhances decision-making for global market participants. Strengthening Market Confidence Rashid Usmanov, Director General of the Central Bank of Uzbekistan, highlighted the impact of this partnership, stating: “This partnership with Bloomberg will help participants in global markets to get up-to-date and accurate information from the UZCE in different segments of the exchange, thereby more effectively managing their assets. Increasing transparency and openness of data will strengthen market confidence and ensure an increase in liquidity.” The Central Bank of Uzbekistan’s market data is available via Bloomberg’s data license and the “B-PIPE” channel, providing real-time market information. This collaboration enhances the global visibility of Uzbekistan’s financial sector, positioning the country as a more attractive destination for international investment.

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Uzbekistan Targets $200 Billion GDP by 2030 with Transport Reforms

On November 26, President Shavkat Mirziyoyev outlined transformative plans for Uzbekistan’s state-owned railway and aviation sectors, setting an ambitious goal to increase the country’s GDP to $200 billion by 2030. Significant changes are already being implemented to enhance efficiency and convenience. In the railway sector, six independent enterprises have been created under “Uzbekistan Railways.” The company added 1,200 new freight cars, halving domestic freight transportation times. The digitalization of operations has streamlined processes, cutting the ordering stage for freight cars from seven days to three and reducing processing time from 72 hours to just 12 hours. Around Tashkent, train traffic has increased by 30%, and for the first time, the previously unprofitable enterprise posted a profit of 30 billion UZS ($2.3 million) this year. In the aviation sector, Uzbekistan Airways has seen flights increase by 25%, with domestic flights surging 2.5 times. The airline now holds a 20% share of international transport in Central Asia, and annual passenger traffic is projected to exceed 6 million. “Uzbekistan Airports” has also expanded services for planes, cargo, and passengers. Greater private sector involvement in airport management has yielded notable results, with 44 airlines currently operating in Uzbekistan. Cargo transportation through airports is expected to grow by 22% this year. “The economy and trade relations in our country are developing year after year. The population’s income and the tourism potential of the regions are also increasing. By 2030, we have set a goal to increase the volume of our gross domestic product to $200 billion. Therefore, we should pay special attention to the transport arteries,” Mirziyoyev said. To support these developments, a new version of the Law “On Railway Transport” has been signed, replacing the 25-year-old legislation. The updated law aims to attract private companies and investments to further develop infrastructure and accelerate industry growth.