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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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Despite Ceasefire India-Pakistan Conflict Sends Ripples Through Central Asia

Despite a recent ceasefire agreement between India and Pakistan, renewed hostilities remain a looming threat. The latest clashes between the two nuclear-armed neighbors have direct and potentially lasting repercussions for Central Asia’s political stability and economic development. Ceasefire Amid Escalation Armed conflict erupted on May 7, when New Delhi launched “Operation Sindoor,” targeting what it described as terrorist infrastructure within Pakistan. The move followed a deadly terrorist attack on April 22 in Pahalgam, Jammu and Kashmir, which killed 26 people. India accused Pakistan of complicity, a charge Islamabad rejected, condemning the airstrikes as an “act of war.” Full-scale hostilities ensued for several days, raising alarms across the broader region. By May 11, a ceasefire was brokered, though both sides warned that fighting could resume if provoked. Given the eight-decade-long volatility along their shared border, the risk of future escalations remains significant. Whilst Pakistan credited the U.S. for facilitating the ceasefire, specifically highlighting Senator Rubio and what it described as direct intervention by President Trump, India maintained that the agreement was a result of direct communication between the Directors General of Military Operations (DGMOs). In a formal televised address, Foreign Secretary Vikram Misri emphasized that the ceasefire was a "bilateral" decision reached via military hotlines, omitting any mention of Trump or Rubio. “Both sides agreed to cease all firing and military actions on land,” Misri stated firmly, reiterating India’s stance that no third party played a role in its interactions with Pakistan. Disruption to Tourism Flows One immediate economic impact of the conflict has been felt in Central Asia’s tourism sector. In recent years, Kazakhstan, especially Almaty, has become an increasingly popular destination for Indian travelers, aided by a visa-free regime that permits 14-day stays. The country also hosts large numbers of Indian and Pakistani students, along with medical tourists and business travelers. Many Indian visitors rely on budget carriers such as IndiGo, which previously operated routes from Delhi to Almaty and Tashkent using airspace over Pakistan. The closure of this airspace led to increased costs and logistical complications. IndiGo suspended flights to both cities on April 27 and 28, respectively. Should hostilities resume, these suspensions could be extended, potentially setting back Central Asia’s still-fragile tourism recovery. Infrastructure and Trade at Risk The geopolitical instability also jeopardizes key infrastructure projects and trade routes. Kazakhstan and Uzbekistan have both enhanced connectivity with Pakistan through distinct strategies, with Kazakhstan integrating into multilateral frameworks like the Middle Corridor and QTTA, and Uzbekistan focusing on tactical bilateral projects such as the Termez–Karachi transport corridor and Trans-Afghan Railway. Both countries aim to reduce their reliance on Russian-controlled routes while leveraging Pakistan’s ports to boost regional trade. Political analyst Zhanat Momynkulov warns that the conflict could disrupt supply chains and raise the cost of goods across South and Central Asia. The rerouting of flights due to Pakistani airspace closures is already affecting logistics and regional connectivity. Kazakhstan, a central player in both the Shanghai Cooperation Organization and the Belt and Road Initiative (BRI), is particularly vulnerable. Projects...

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Bulgarian Spy Ring Sentenced: Questions Linger Over Possible Unprosecuted Crimes and Future Threats

On March 7, 2025, six Bulgarian nationals living in the UK were convicted under the Official Secrets Act 1911 for espionage and the Identity Documents Act 2010 for possessing false identity documents. Following an investigation by the Metropolitan Police Counter Terrorism Command, the Crown Prosecution Service secured sentencing on May 12. Prosecutor Alison Morgan KC argued that lengthy sentences were justified for several defendants, stating that their actions had put lives at risk and compromised national security. Ultimately, Orlin Roussev (47) received ten years and eight months, Biser Dzhambazov (44) ten years and two months, Ivan Stoyanov (33) five years and three weeks, Katrin Ivanova (33) nine years and eight months, Vanya Gaberova (30) six years and eight months, and Tihomir Ivanchev (39) eight years. While these sentences address their espionage activities, concerns remain over additional fraudulent schemes undertaken by the group. Central to their operations was their use of stolen identities to create companies and bank accounts designed to implicate victims in criminal activities and tarnish their reputations. During the investigation and subsequent raids in early 2023, law enforcement seized as stated in court documents “91 bank and other financial institution cards in 17 different names; 75 passport or identity documents, including those in 55 names other than those legitimately used”. The investigation revealed that the spy ring was allegedly organized at a higher level by fugitive Jan Marsalek who reportedly held a diplomatic passport from Uzbekistan. The spy ring was mercenary in nature, serving a private and public sector clientele to target individuals, organizations, and governments from the UK, Russia, Kazakhstan, the U.S., and Europe with a blend of espionage and fraudulent schemes. A recent report by The Telegraph reveals that Marsalek’s network of spies was far larger than this group of six, with a spy network extending to the UK, U.S., Germany, Austria, Israel, Italy, Switzerland, France, Croatia, Hong Kong, and Turkey. The Bulgarian spy ring’s activities can be traced back as far back as 2015, with Roussev reportedly in contact with Marsalek during this period. By 2016, Roussev, Dzhambazov, and Ivanova were seen participating in a Brexit-related event at the UK Parliament, part of their apparent effort to gain deeper access to information and influential networks. During the three-month-long trial, jurors examined messages and transactions dating back to 2019. While the case primarily focused on espionage, it is possible that broader charges, as well as those extending further back in time, were not fully addressed in court. The sentencing of the Bulgarian spy ring marks a significant step in addressing espionage activities in the UK, but it leaves critical questions unanswered about the full extent of their crimes. Beyond espionage, the group readily achieved identity theft, document forgery, and disinformation campaigns designed to frame individuals, manipulate public opinion, and exploit geopolitical tensions. Their calculated efforts to harm Bellingcat’s investigative journalist Christo Grozev and implicate innocent individuals in fraudulent schemes highlight the broader dangers posed by such operations. The use of front companies like Truth on the...

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Samarkand Issues Safety Warnings after Gas Explosion Kills Seven in Home

The Uzbek city of Samarkand is intensifying a home safety campaign following the death of seven people in what authorities call “a flash of a gas-air mixture” in a house last week. Emergency officials in the Samarkand region have said an investigation is underway into the explosion in the city on the night of May 8-9. “The kinetic impact of the flash caused the collapse of the reinforced concrete structures of the house, damaging the 1st, 2nd, and 3rd floors and the basement. There was no fire,” the regional emergency situations department said on Telegram. It reported six deaths, and several media outlets in Uzbekistan later reported a seventh death. The victims were found under the rubble. Since the accident, regional emergency officials have issued appeals to residents to not install non-standard gas cylinders on gas stoves and gas appliances. They are also advising people to take other safety measures, including not connecting gas cylinders to equipment using rubber hoses that can’t operate under specific pressure; regularly checking for gas leaks by using soapy water on cylinder connections and valves; and ensuring that flammable items are at least 10 meters away from gas cylinders. Following those rules “will prevent accidents that could happen to you and your loved ones!” the emergency situations department warned. In a separate incident on May 7, two people were killed and one was injured in an explosion at a gas station in the Katakurgan district of Samarkand region. A fire broke out during the fueling of two diesel fuel storage tanks, according to reports on UzDaily.com and other Uzbek media. The reports attributed the information to the state Committee for Industrial, Radiation and Nuclear Safety.

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Victory Day in Central Asia: Honoring Sacrifice Amid Shifting Narratives

For the countries of Central Asia, Victory Day holds a deep significance. Although debates over the nature of the May 9 commemorations have intensified in recent years, the importance of the holiday remains unchallenged. A War That Touched Every Family Attitudes toward the celebration marking the defeat of Nazi Germany are largely shaped by each nation's level of participation in the war effort. Kazakhstan mobilized over 1.2 million people, nearly 20% of its pre-war population of 6.5 million. Of these, more than 600,000 perished at the front, with an additional 300,000 dying in the rear due to malnutrition, forced labor, and inadequate medical care. With a similar sized population, Uzbekistan sent approximately 1.95 million people to the front - or one in every three residents. Around 400,000 Uzbeks did not return home. Over 500 Kazakhstani and more than 300 Uzbekistani soldiers were awarded the title Hero of the Soviet Union. [caption id="attachment_31602" align="aligncenter" width="2560"] Eternal flame and Crying Mother Monument, Tashkent; image: TCA, Stephen M. Bland[/caption] Kyrgyzstan, home to just 1.5 million people at the time, sent over 363,000 to the front. Approximately 100,000 perished, and 73 received the Hero of the Soviet Union medal. Tajikistan mobilized more than 300,000 troops, with over 100,000 never returning. Fifty-five Tajiks received Hero of the Soviet Union honors. Turkmenistan, with a population of 1.3 million, sent around 200,000 soldiers and officers; 16 received Hero status. Central Asian soldiers played vital roles in major battles, including the defense of Moscow. They helped liberate territories across the Soviet Union and Eastern Europe. The region also contributed 20-30% of its horse population, then a central component of local economies, for military use. The war profoundly reshaped Central Asia. Thousands of Soviet enterprises were relocated to the region, fueling industrialization. Millions of refugees from Nazi-occupied zones found sanctuary in Central Asian republics. Many children were taken in by local families and raised as their own. Today, many in Central Asia feel that outsiders fail to grasp the weight of Victory Day. While countries like the UK, U.S., Italy, and France recorded wartime deaths of 380,000, 417,000, 479,000, and 665,000 respectively, the USSR suffered over 26 million losses. German losses are estimated at 8.4 million. Celebrating Amid Controversy Recent years have brought a shift in how Victory Day is perceived in Central Asia. Symbols such as the Guards ribbon, criticized for echoing imperial Russian motifs, have sparked debate. Some argue that the holiday reflects colonial oppression, as the peoples of Soviet Asia were conscripted into a foreign war. These debates have grown louder since Russia annexed Crimea in 2014, with some now viewing the May 9 celebrations as a tool of Russian influence in the region. Nonetheless, Central Asian leaders have rejected efforts to "cancel" Victory Day, reaffirming its deep personal and national resonance. Efforts to distinguish the celebration from Russian state narratives are evident. Many events now emphasize patriotism rather than Soviet nostalgia. On May 7, Kazakhstan held its first military parade in Astana in seven years,...