Uzbekistan Features - The Times Of Central Asia

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Regional Cooperation

Central Asia and Azerbaijan: What the Region’s Leaders Agreed at Issyk-Kul

The Kyrgyz resort town of Cholpon-Ata, on the shores of Lake Issyk-Kul, briefly became Central Asia’s political capital as it hosted a series of high-level meetings, including bilateral talks between the presidents of Kyrgyzstan and Uzbekistan, the state visit of Azerbaijani President Ilham Aliyev, and the informal Consultative Meeting of the Heads of State of Central Asia and Azerbaijan. Only a few years ago, such a format would have seemed unlikely. Today, however, regional leaders are discussing joint railway projects, energy security, transport corridors, investment, and foreign-policy coordination rather than managing old disputes. The agreements reached in Cholpon-Ata suggest that the consultative format is gradually evolving from a platform for political dialogue into a mechanism for practical regional cooperation. From Conflict to Alliance Ahead of the informal multilateral meeting, Kyrgyz President Sadyr Japarov and Uzbek President Shavkat Mirziyoyev held bilateral talks that set the tone for the broader regional meeting. Relations between the two countries now stand in sharp contrast to the situation sixteen years ago. Following the ethnic violence in southern Kyrgyzstan in June 2010, relations between Bishkek and Tashkent entered one of their most difficult periods since independence. The agenda between the two neighbors has since changed dramatically. Speaking in Cholpon-Ata, Mirziyoyev said relations between Uzbekistan and Kyrgyzstan had reached “a historic peak.” Bilateral trade has increased almost tenfold in recent years, reaching $1.2 billion last year. The two countries now have around 450 joint ventures, operate a joint Development Fund to support cooperative projects, and have established 15 air routes and five bus services linking their cities. Mirziyoyev described the China-Kyrgyzstan-Uzbekistan railway as one of the most important joint initiatives between the two countries, arguing that the project would reshape transport links across Eurasia. “This railway will fundamentally change the geopolitical landscape. Those who understand what it took to make this happen know what a major achievement it is,” Mirziyoyev said. The talks concluded with the signing of a Treaty on Allied Relations between Kyrgyzstan and Uzbekistan. The two sides also exchanged several bilateral documents, including agreements covering sections of their common border and the joint use of the Chashma spring. A Broader Regional Agenda While the Japarov-Mirziyoyev talks focused primarily on bilateral relations, the informal Consultative Meeting of the Heads of State of Central Asia and Azerbaijan broadened the discussion to regional integration, transport connectivity, energy security, and foreign-policy coordination. Opening the meeting, Kyrgyz President Sadyr Japarov said one of the clearest results of closer regional cooperation had been the Central Asian countries’ growing support for one another on the international stage. As an example, he cited the region’s joint support for Kyrgyzstan’s successful bid for a non-permanent seat on the United Nations Security Council for the 2027-2028 term. Japarov also revived the idea of introducing a single tourist visa for foreign visitors traveling across Central Asia, proposing that the region’s foreign ministries intensify consultations on the initiative. Azerbaijan’s participation as a full member gave the meeting additional significance. Baku joined the consultative format as a...

Gulnara Karimova

Swiss Court Fines Lombard Odier $3.7 Million in Karimova Money-Laundering Case

Switzerland’s Federal Criminal Court has fined Geneva-based private bank Lombard Odier 3 million Swiss francs, or about $3.68 million, after finding that it failed to take adequate organizational measures to prevent money laundering in a case linked to Gulnara Karimova, the eldest daughter of Uzbekistan’s late President Islam Karimov. The court also dismissed criminal proceedings against Karimova without ruling on the allegations against her. The ruling was delivered on July 27 in Bellinzona, following a trial that began in April. Swiss prosecutors had accused Karimova of accepting bribes and leading a criminal organization known as “The Office,” which allegedly channeled hundreds of millions of dollars through Swiss bank accounts between 2005 and 2013. Lombard Odier and one of its former account managers were accused of helping conceal assets derived from the group’s activities. The former employee was found guilty of aggravated money laundering. The court concluded that the bank had failed to take “all reasonable and necessary organizational measures” to prevent the offense. The former account manager, identified only as “C.,” received a fully suspended 24-month prison sentence. The court also ordered the confiscation in Switzerland of more than 400 million Swiss francs in assets originating from the money-laundering offense or controlled by “The Office.” In a statement, Lombard Odier said the case began after it voluntarily reported suspicious transactions to the Swiss authorities in 2012. It maintained that robust anti-money-laundering controls were in place and said it would appeal. The first-instance judgment is not final. The court dismissed the proceedings against Karimova on procedural grounds. The judges concluded that there was no realistic prospect of her release from prison in Uzbekistan or extradition to Switzerland before the limitation period expired. The court did not rule on the allegations against her. Proceedings were also dismissed against another defendant, identified only as “B.,” who lives in Russia and could not travel to Switzerland through no fault of his own. The sentences imposed on Lombard Odier and its former employee were reduced because of the time elapsed since the offenses in 2011 and 2012. Charges covering events before July 27, 2011, were dismissed as time-barred. Karimova, now 54, has consistently denied wrongdoing. She has been imprisoned in Uzbekistan since March 2019, when she was moved from house arrest after the authorities said she had breached its conditions. She is serving a 13-year sentence for offenses including organizing a criminal group, extortion, and embezzlement. The Swiss investigation began in 2012 and concerns conduct dating back more than two decades. In May 2025, the Federal Criminal Court joined the proceedings against Karimova and Lombard Odier. The wider international investigation has involved assets across several jurisdictions. Assets associated with Karimova in Switzerland, France, and the United States have previously been estimated at nearly $1.4 billion. The case has also led to efforts to return confiscated assets to Uzbekistan. In February 2025, Uzbekistan and Switzerland signed an agreement covering approximately $182 million confiscated by the Swiss authorities. The funds are to be transferred through the Uzbekistan...

Caspian Sea

As Two Wars Reach the Caspian, Central Asia’s Middle Corridor Holds

On July 25, two wars met in waters that Central Asian governments had tried to keep apart. Ukraine reported successful long-range strikes in the Caspian Sea. President Volodymyr Zelenskyy said the targets included vessels involved in carrying military cargo from Iran and a warship. Tehran said an Iranian commercial vessel had been struck, killing one sailor and injuring another, and accused Kyiv of trying to widen the war. It remains unclear whether the vessel identified by Iran was among the targets described by Zelenskyy. Diplomacy produced a limited off-ramp. On July 28, Ukrainian Foreign Minister Andrii Sybiha told his Iranian counterpart, Abbas Araqchi, that the strike on the Iranian ship was unintended. Both governments said they wanted to avoid further escalation. The call reduced the immediate risk of retaliation, but it did not remove the new danger. The Caspian is now one of the places where Russia’s war against Ukraine and the war involving Iran, Israel, and the United States intersect. Central Asia is exposed through the infrastructure and trade routes linking them. A “Sea of Peace” Under Pressure Turkmenistan responded to the incident with unusually direct language. Its Foreign Ministry called attacks on vessels in the Caspian “inadmissible” and described the waterway as a “sea of peace, harmony and good-neighborliness.” Ashgabat did not name Ukraine or endorse Iran’s account. Its restraint was characteristic, but the public criticism was unusual. Turkmenistan’s permanent neutrality normally produces guarded statements during external conflicts. The intervention showed that Ashgabat viewed the attack as a challenge to the regional order. Turkmenistan faces Iran across a 1,148-kilometer land border and the southern Caspian. Turkmenbashi port is also central to its plans for a larger role in Eurasian trade. The principle is set out in the Convention on the Legal Status of the Caspian Sea, signed in Aktau in 2018. Its text calls for the peaceful use of the sea, prohibits the use or threat of force, and bars armed forces belonging to non-Caspian states. The convention has not entered into force because Iran has not ratified it. Its provisions were designed to govern relations among the five littoral states. They do not address a long-range strike carried out by a non-littoral state. But modern drones can cross distances that once provided strategic shelter. A landlocked sea can no longer be assumed to sit beyond the reach of surrounding wars. The Iran-Russia Link Ukraine has clear military reasons to look toward the Caspian. Iran has supplied Russia with drone technology used against Ukrainian cities and infrastructure. The sea also provides a direct commercial route between Iranian ports and Russia’s Volga region. Kyiv now treats vessels on that route carrying military cargo as part of Russia’s military logistics. Iran described the vessel struck on July 25 as civilian. The dispute over the ship’s cargo is central because commercial and military supply chains can overlap. A vessel may be civilian by flag and registration while carrying goods that Ukraine considers part of Russia’s war effort. That uncertainty reaches beyond...

Global Business Services

GBSF 2026 Highlights Uzbekistan’s Push for Global Business Services and AI

More than 450 participants from business and government, representing over 45 countries, gathered in Tashkent on July 24–25 for the Global Business Services Forum 2026. The event centered on Uzbekistan’s effort to become a regional center for global business services and business process outsourcing (BPO), with artificial intelligence (AI) also a major focus. Organizers described it as Central Asia’s largest international forum devoted to global business services and the digital economy. The forum follows May’s Global Tech Weekend in Tashkent, which brought more than 2,500 technology and investment professionals to the capital. Opening the forum, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov said recent reforms had improved conditions for international technology companies considering investment or expansion in the country. Shermatov said companies could draw on qualified specialists and modern digital infrastructure while reaching a fast-growing regional market. He also invited international firms to invest and develop long-term partnerships. Azamat Karamatov, CEO of IT Park Uzbekistan, said the organization now has more than 3,800 resident companies, including over 1,000 international businesses. Exports of technology services have surpassed $1 billion. He said IT Park gives foreign companies a route into Uzbekistan’s technology sector while helping develop local talent. Sessions examined AI and talent development. Other discussions covered international investment and outsourcing. Speakers also outlined tax incentives and support available to foreign companies entering the Uzbek market. The Soft Landing program and Zero Risk initiative are among the available schemes. Key Account Management services provide additional assistance. One speaker was Arseny Kucheryuk, an expert at Antal Uzbekistan, part of the British recruitment company Antal International. He drew on the firm’s recruitment work and salary surveys to describe changes in the labor market. Kucheryuk, who moved to Uzbekistan nearly five years ago, said employers once struggled to find highly qualified candidates. The market has since become more balanced, although strong candidates can still receive several offers within weeks. He said companies seeking experienced professionals often need to offer salaries well above candidates’ current income. Antal research found that more than 60% of candidates expect an increase of at least 20% when changing jobs. Kucheryuk added that pay alone does not determine retention. Career prospects and management quality also influence whether skilled staff remain with an employer. He said workplace culture is especially important when addressing religion or family. Speaking to The Times of Central Asia after his presentation, Kucheryuk said foreign investment was creating career opportunities in Tashkent and elsewhere in Uzbekistan. He attributed Uzbekistan’s appeal to cooperation between the government and private sector, which he said helps international companies enter the market and supports local businesses. Kucheryuk advised foreign investors to understand local business culture before entering the market. Although companies may bring senior executives from abroad, he said operational roles requiring knowledge of local law and business practice should generally be filled in Uzbekistan. Iyad Hafez, CEO and managing partner of Staff Arabia, said his first visit to Uzbekistan exceeded expectations. “I’m positively surprised,” he told The Times of Central Asia. “Very...

Opinion

Uzbekistan’s Heritage Did Not Stop With the Silk Road

When people think of Uzbekistan’s architectural heritage, the images are familiar: the turquoise domes of Samarkand, the madrasas of Bukhara, Khiva’s walled city, and the monuments of Shakhrisabz. But Uzbekistan’s history did not stop with the Silk Road. At its 48th session in July, UNESCO inscribed “Tashkent Modernist Architecture. Modernity and Tradition in Central Asia” on the World Heritage List. The new site brings together ten buildings and urban complexes constructed between the 1960s and the early 1990s, during the period in which Tashkent was dramatically rebuilt following the 1966 earthquake. The inscription deserves to be celebrated. More importantly, it expands the definition of what Uzbek heritage can be. [caption id="attachment_52926" align="aligncenter" width="1774"] Kosmonavtlar Metro Station, Tashkent; photo: Mathieu Lemoine[/caption] These buildings do not belong to the world of caravanserais and Timurid courts. They represent another layer of the country’s history: the ambitious and highly creative transformation of Soviet-era Tashkent. For decades, Central Asian heritage has often been viewed through a chronological hierarchy. The older a monument, the easier it is to recognize as heritage. Timurid architecture is obviously precious. A concrete building from the 1970s can appear more expendable. Tashkent shows why that distinction is too simple. UNESCO notes that the architecture developed after the earthquake combined industrialized construction and seismic engineering with local climatic, cultural and material conditions. The result was not simply Soviet modernism transplanted to Central Asia, but a distinct architectural language adapted to Tashkent. This broader understanding of heritage comes at an important moment. Uzbekistan is modernizing rapidly. Its cities are growing, tourism is expanding, infrastructure is improving and redevelopment is transforming urban space. Much of this change is necessary and welcome. Historic neighborhoods cannot be expected to function as open-air museums. Residents need reliable drinking water, sewage systems, heating, electricity, internet access, waste collection, accessibility, safe streets and comfortable housing. A leaking pipe is not “authenticity.” The more difficult question is how modernization takes place. [caption id="attachment_52925" align="aligncenter" width="1774"] Tashkent Modernist State Museum of History; photo: Mathieu Lemoine[/caption] Uzbekistan has already experienced how delicate that balance can be. In Shakhrisabz, large-scale redevelopment substantially altered the historic urban fabric. The historic center was placed on UNESCO’s List of World Heritage in Danger in 2016 and remains there today. The experience offers an important lesson: preserving monuments is not necessarily the same as preserving a city. A city can retain its most famous madrasa, mosque or mausoleum while losing part of its heritage if the streets, neighborhoods, businesses and communities surrounding them disappear. The pressure is not only architectural. As tourism grows and historic centers become more desirable, economic incentives change. Houses can become hotels and restaurants. Businesses serving residents can give way to businesses serving visitors. Traditional workshops can struggle with higher costs. Redevelopment can create pressure on residents to relocate. Bukhara illustrates why this is important. Its identity rests not only on monumental architecture but on a living economy of craftsmanship. Gold embroidery, ceramics, jewelry, woodwork and other trades remain sources of employment as well as cultural identity....

Islamic Finance

Uzbekistan Establishes Islamic Finance Council as New Banking Law Takes Effect

The Central Bank of Uzbekistan has established an Islamic Finance Council to coordinate the work of banks, microfinance organizations, the Deposit Guarantee Agency and other institutions operating under Islamic financial principles. The council was created weeks after Uzbekistan’s new Islamic banking law took effect on June 29. It will prepare national standards, issue regulatory and supervisory recommendations, advise financial institutions and represent the Central Bank in its work with international standard-setters. Building an Islamic Finance Framework Islamic finance prohibits interest and generally requires financing to be linked to assets, trade, leasing or risk-sharing. Common structures include murabaha, in which a bank buys and resells an asset at an agreed markup, and ijara, which operates broadly like leasing. Sharia Specialists Form Council Majority The council has five members: four specialists from the Fatwa Center under the Muslim Board of Uzbekistan and one financial-sector expert. Saidjamol Masayitov, a chief specialist at the Fatwa Center, will chair the council. Muhammadyubkhon Khomidov, also a chief specialist at the center, will serve as deputy chairman. The other members are Fatwa Center specialists Hikmatilla Toshtemirov and Abdullatif Tursunov, along with Akhrorjon Sadullayev, managing partner of Orient Audit Group. Sadullayev has more than 20 years of experience in banking, finance and auditing. The council is intended to combine Sharia expertise with financial regulation. It will report annually to the Central Bank’s board. From Legislation to Implementation Uzbekistan has been developing an Islamic finance framework for several years. Legislation adopted in 2022 allowed microfinance organizations to provide services based on Islamic principles, while detailed regulations introduced in 2024 covered instruments including mudaraba, murabaha, musharaka, ijara and salam. The Central Bank is also preparing a national Islamic finance roadmap for 2026-2030 with assistance from the Islamic Financial Services Board. The work covers banking, capital markets, insurance, professional training and the wider legislative framework. Law No. O’RQ-1126, signed on March 27, established a dual banking model. Stand-alone Islamic banks can operate alongside Islamic “windows” within conventional commercial banks. The law also created a special licensing system and defined permitted Islamic financial operations. Uzbekistan had previously planned to introduce its first Islamic finance services through a commercial bank in 2027, with at least three banks expected to offer them by 2030. Licensing Rules Approved The Central Bank has now amended its licensing regulations for Islamic banks and Islamic windows. The changes were registered by the Ministry of Justice on July 17 and took effect upon official publication. Applicants must submit Sharia-compliance policies, information about their institution-level Islamic finance council, evidence of dedicated internal oversight and audit systems, and a three-year business plan. Existing conventional banks will require a separate license to open an Islamic window. Council candidates must receive Central Bank approval and meet education and professional-experience requirements. At least one member must hold a certificate from the Accounting and Auditing Organization for Islamic Financial Institutions, or AAOIFI. Certification will become mandatory for all council members from July 1, 2027. Adopting International Standards The Central Bank joined AAOIFI as a regulatory...