Uzbekistan Features - The Times Of Central Asia

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Middle Corridor

Daines’s Tour Signals an Emerging U.S. Caspian Corridor Strategy

Senator Steve Daines’s July 7–9 visit to Azerbaijan, Kazakhstan, and Turkmenistan brought three bilateral relationships into a single, compressed Caspian itinerary. In Baku, he met President Ilham Aliyev and senior economic and foreign-policy officials; in Astana, President Kassym-Jomart Tokayev and representatives of government and business; and in Ashgabat, President Serdar Berdimuhamedov, Foreign Minister Rashid Meredov, and Gurbanguly Berdimuhamedov. Although official accounts treated each stop separately, the sequence suggests a regional pattern whose significance exceeds any single announcement. Daines had already supplied the clearest public articulation of the governing logic in his June 11 speech to the Caspian Policy Center’s Trans-Caspian Forum. There he joined Central Asia and the South Caucasus in a discussion about westward connectivity, investment, and supply-chain diversification. Daines identified critical minerals, energy, telecommunications, and physical and digital infrastructure as fields for public and private investment, while calling for TRIPP, a Caspian gas interconnector, and a continuous route from Central Asia to Western markets that avoids Russia and Iran. Together, these sectors give the proposed route both commercial and strategic content, though not the form of a single named program. Read against the June speech, Daines’s itinerary marks an emerging corridor-centered effort aligned with the Trump administration’s broader Caspian engagement, even without a formal declaration of purpose. Azerbaijan Anchors the Corridor’s Western Connections Baku gives the corridor logic its strongest institutional and bilateral footing. Aliyev and Daines discussed Azerbaijan’s geopolitical role, regional peace, and TRIPP’s importance for transport connectivity. Separate meetings with Foreign Minister Jeyhun Bayramov and Economy Minister Mikayil Jabbarov extended the agenda to economic cooperation. With SOCAR President Rovshan Najaf, Jabbarov and Daines took up the Middle Corridor, energy, transport, digital development, and critical-mineral extraction and processing. Across the meetings, political, commercial, and technical portfolios converged around Azerbaijan’s place at the corridor’s western Caspian egress. The U.S.–Azerbaijan Strategic Partnership Charter, signed in February, places the Middle Corridor alongside energy, trade, transit, digital connectivity, and critical-mineral movement. It identifies Azerbaijan as an energy, transport, trade, and logistics hub for the Caspian region. Working groups regularize cooperation on trade, energy, connectivity, digital development, and security. The charter also calls for project lists and implementation roadmaps within three months of signing and for meetings at least once a year. In June, the first Azerbaijan-U.S. Economic Dialogue began translating that direction into an operational agenda. Government, financial institutions, and private-sector participants met on regional connectivity and transit, energy security, investment, artificial intelligence, and digital infrastructure. The agenda connected the Middle Corridor and TRIPP with logistics, the Southern Gas Corridor, critical mineral supply chains, transport and energy investment, and the Alat Free Economic Zone. Closing documents covered digital infrastructure, technology transfer, and industrial solutions. The workstreams are clear, but the consolidated project portfolio and its financing have yet to take public form. Azerbaijan’s role also rests on physical infrastructure already in use. The established Middle Corridor crosses Kazakhstan and the Caspian before passing through Azerbaijan and Georgia, then onward toward Türkiye or Europe via the Black Sea. At Alat, 70 kilometers...

Azerbaijan

Aliyev Sees Azerbaijan and Central Asia’s Interests Converging

The Shusha Global Media Forum, an annual gathering held in Azerbaijan’s Karabakh region and conceived as a platform for journalists and media representatives from dozens of countries across Europe and beyond, including the United States, acquired broader regional significance last year because of its consequences for several Russian participants. Last year’s forum attracted widespread attention in Russia after two prominent Russian participants faced repercussions at home. Mikhail Gusman, then first deputy director general of the state news agency TASS, was dismissed shortly after attending the event and praising Azerbaijan, although no official reason was given. The following month, pro-Kremlin political analyst Sergei Markov was designated a “foreign agent” after facing criticism for his favorable comments about Azerbaijan. It was therefore unsurprising that this year’s forum attracted close attention from media outlets around the world. Beyond the forum’s Russia-related significance, Azerbaijan’s President Ilham Aliyev’s remarks pointed to a broader regional shift. Azerbaijan increasingly sees its political and economic interests converging with those of Central Asia, particularly through the Middle Corridor, cross-Caspian energy links, and infrastructure cooperation. According to official figures, approximately 160 journalists, experts, and public officials from 53 countries attended the event. The forum brought together representatives of around 30 international news agencies, more than 60 leading media organizations, and roughly 10 international organizations and companies. Former TASS executive Mikhail Gusman attended the fourth Shusha Global Media Forum and highlighted its growing international profile. “There are very few, if any, media platforms in the world that bring together representatives of media organizations from every region to exchange views and engage in dialogue. That is precisely why the importance of this forum cannot be overstated,” he said. As in previous years, President Aliyev opened the forum and spent nearly three hours answering questions from journalists representing a wide range of countries. Given the latest deterioration in relations between Baku and Moscow, many observers were watching to see whether questions would prompt unusually sharp comments about Russia. The organizers did not shy away from potentially sensitive questions. Ukrainian journalist Dmytro Gordon, who has been designated an extremist in Russia, was once again invited to the forum and made full use of the opportunity. Gordon noted Ukrainian drone and missile strikes deep inside Russia before asking Aliyev what counsel he would offer Ukraine and President Vladimir Putin. “What advice would you give Putin today, when, in my view, he no longer has any good options left?” Gordon asked. Aliyev avoided an overtly confrontational response, stating that Ukraine should “never agree to occupation” and that the war “must be stopped—and stopped immediately.” Aliyev’s exchange with journalists and analysts from Europe and the United States painted a clear picture of Azerbaijan’s worldview and the role it sees for itself internationally. That perspective remains heavily shaped by the three-decade conflict between Baku and Yerevan over Karabakh. According to Aliyev, the United States, France, and Russia all sought to preserve the status quo during that period. He described those decades as a “time of war,” arguing that...

Strategic Partnership

Uzbekistan and Belarus Establish Strategic Partnership in Minsk

Uzbekistan and Belarus have established a strategic partnership following President Shavkat Mirziyoyev's official visit to Minsk, where the two governments signed a broad package of economic, labor, scientific, and cultural agreements. According to the Uzbek presidential press service, Mirziyoyev visited Minsk on July 8-9 at the invitation of Belarusian President Alexander Lukashenko. He was welcomed with an official ceremony at the Palace of Independence before the two leaders held both one-on-one and expanded talks with their delegations. The visit marked a notable milestone in a relationship that has expanded steadily in recent years. Diplomatic relations between Uzbekistan and Belarus were established on January 21, 1993, but Uzbekistan opened its first embassy in Minsk only in March 2018. Before that, the Uzbek Embassy in Russia also covered Belarus. The relationship is developing while Belarus remains under extensive European Union sanctions over human rights abuses and its support for Russia's war against Ukraine. Speaking after the talks, Mirziyoyev said the visit had become “a historic event in the development of Uzbek-Belarusian relations.” He said the newly signed declaration “marks the beginning of a new chapter in strengthening interstate cooperation” and demonstrates both countries’ commitment to long-term partnership. The leaders highlighted the rapid growth in economic ties. According to the Uzbek side, bilateral trade has nearly tripled over the past five years and approached $1 billion by the end of 2025, while trade during the first months of 2026 rose by another 30%. Official figures differ according to methodology. The Uzbek side said bilateral trade approached $1 billion in 2025, while Belarusian trade figures put goods trade at almost $855 million and services at $207.9 million. Belarusian state news agency BelTA also said around 230 enterprises with Belarusian capital are registered in Uzbekistan and that Belarus had a positive trade balance of more than $517 million. Both presidents said the target of $2 billion in annual trade is achievable by 2030. To support that goal, the two governments adopted a 2026-2030 action plan covering trade, economic, social, and humanitarian cooperation. The plan includes measures to expand collaboration in agriculture, mechanical engineering, pharmaceuticals, electrical engineering, microelectronics, textiles, furniture production, and other manufacturing sectors. One of the most significant areas discussed was nuclear energy. The Uzbek presidential press service said the parties agreed to draw on Belarusian experience in the construction of Uzbekistan’s first nuclear power plant and related infrastructure. Belarus operates the Russian-financed Ostrovets plant, whose two VVER-1200 units were built by Atomstroyexport. Uzbekistan’s own project is being developed with Russia’s Rosatom and is planned to combine two VVER-1000 reactors with two smaller RITM-200N units. Political analyst Mukhtor Nazirov said the declaration represented a qualitative change and could create opportunities for investment, technology transfer, and industrial cooperation. He described nuclear cooperation as “one of the most important components of the strategic partnership,” arguing that it required a particularly high level of trust. Labor migration also emerged as a major theme. During the talks, Lukashenko invited Uzbek citizens, especially families, to move to Belarus to...

Transport Infrastructure

Can Uzbekistan Challenge Kazakhstan as Leading Central Asia Logistics Hub?

Recent developments suggest that Uzbekistan is seeking to strengthen its position in regional logistics, potentially challenging Kazakhstan’s role as Central Asia’s principal transit hub. As geopolitical tensions increase, alternative transport routes are becoming increasingly important, and Central Asia stands out as a relatively stable region. Both Kazakhstan and Uzbekistan are investing heavily in expanding their transport infrastructure. The key question, however, is how practical and commercially viable these new projects will prove to be. Which country will ultimately be able to offer faster, cheaper, and more reliable transport corridors? Uzbekistan’s Plans In early July, Uzbekistan presented proposals for expanding its transport and logistics infrastructure, as officials sought to make greater use of what they described as the country’s underdeveloped transit potential. Officials noted that Uzbekistan occupies a strategic position connecting East and West. The country hosts approximately 4,000 kilometers (2,485 miles) of international transit corridors and has a railway network stretching 4,700 kilometers (2,920 miles). Modern logistics centers and “dry ports” are being developed in Tashkent, Navoi, and Namangan. Navoi Airport already serves as an important cargo hub on Eurasian air routes. Authorities believe that construction of the China-Kyrgyzstan-Uzbekistan railway, together with the proposed Trans-Afghan Railway, could further strengthen Uzbekistan’s position within both regional and international transport networks. Project planners argue that, once completed, these corridors will make Uzbekistan a key segment of the shortest overland route between the Pacific Ocean and Europe. They estimate that cargo transit times could be reduced to eight days, roughly three times faster than many traditional routes. That said, the statement provided no methodology or precise endpoints for the estimate; existing China-Europe rail services generally take considerably longer. Officials also say access to Pakistan’s ports of Karachi and Gwadar would provide Uzbekistan with a gateway to the Indian Ocean and a shorter route to South Asian markets with a combined population of around 2 billion people. Gwadar is not yet connected to Pakistan’s main railway network, however, meaning that substantial additional infrastructure would be required. Significant Shortcomings Uzbek officials estimate that annual trade between China and Europe amounts to approximately $800 billion, while cargo volumes total between 120 million and 150 million metric tons each year. The government estimates that attracting an additional 15-20 million tons of international transit cargo annually could generate $400-600 million in revenue, draw around $3 billion into logistics facilities, and create approximately 50,000 permanent jobs. The presidential administration also said this could add 1.5-2 percentage points to annual economic growth, given that Uzbekistan currently captures only 1-2% of China-Europe freight – it did not explain how either figure was calculated. Although transit cargo volumes reached 15.3 million tons in 2025, an increase of 54% compared with 2021, officials believe the country’s existing infrastructure could support significantly higher volumes. At present, however, many border crossings lack sufficient capacity to process international freight efficiently. Uzbekistan currently operates 27 logistics centers that meet international standards, with a combined handling capacity of 27.2 million tons. Yet only one of them qualifies as a...

Water Management

UN: Uzbekistan Makes Major Progress in Reducing Water Stress, but Challenges Remain

Uzbekistan has recorded one of the world’s fastest reductions in water stress in recent years, according to a new United Nations case study on the country’s water-management policies. The study points to efforts to conserve water, modernize irrigation, and expand regional cooperation. It also warns that Uzbekistan remains under pressure from climate change and rising water demand, while environmental damage linked to the Aral Sea disaster continues to affect the country. The study, prepared by UN-Water, examines how Uzbekistan managed to reduce water withdrawals while maintaining agricultural production and economic development. The report describes the country’s experience as particularly relevant for other water-stressed regions and countries seeking practical solutions to increasing pressure on freshwater resources. Water has long been one of Uzbekistan’s most strategic resources. Much of the country consists of arid and semi-arid landscapes, while agriculture remains heavily dependent on irrigation. The challenge has become even more urgent as climate change affects water availability across Central Asia. According to the UN report, Uzbekistan’s level of water stress increased steadily until 2017. Since then, the country has undertaken large-scale reforms aimed at reducing water consumption and introducing more efficient technologies. These efforts have produced measurable results. In 2017, Uzbekistan’s freshwater withdrawals reached 169% of its total renewable freshwater resources. By 2021, that figure had fallen to 122%. Although still above sustainable levels and considerably higher than the regional average of 69%, the reduction of 47 percentage points within four years represents one of the most significant improvements recorded globally under Sustainable Development Goal 6, which focuses on clean water and sanitation. Data cited by the report show that total freshwater withdrawals declined from 58.9 billion cubic meters in 2017 to 42.5 billion cubic meters in 2021. Most of the reduction came from agriculture, where irrigation withdrawals fell from 53.7 billion cubic meters to 38.5 billion cubic meters during the same period. The UN attributes much of this progress to strong political commitment. According to the report, water management has become a national priority supported at the highest levels of government. UN-Water notes that water-efficiency goals have been incorporated into several development programs. These include the 2017-2021 Action Strategy and the New Uzbekistan Development Strategy for 2022-2026. The goals also appear in the Uzbekistan-2030 strategy. Among the government’s targets are the introduction of water-saving technologies such as drip irrigation, sprinkler irrigation, and laser land leveling across all cultivated land by 2030. Authorities also aim to save up to 15 billion cubic meters of water annually, reduce irrigation losses by 25%, and fully digitize the management of 200,000 water intake points. The report identifies the expansion of water-saving technologies as one of the most important factors behind the country’s progress. Uzbekistan has combined financial incentives, soft loans, and subsidies with training programs for farmers and water specialists. According to UN-Water, this approach has helped reduce investment risks and encouraged wider adoption of modern irrigation systems. These measures are especially important because agriculture remains Uzbekistan’s largest water user. According to data from the...

Tax Policy

Uzbekistan Bank Data Plan Sparks Privacy and Tax Debate

A draft government resolution that would establish unified rules for information sharing between banks and tax authorities has triggered widespread public debate in Uzbekistan, with supporters describing it as a necessary step to combat the shadow economy while critics warn it could weaken constitutional protections for banking privacy. The proposal, published for public discussion by Uzbekistan’s State Tax Committee, aims to regulate how banks provide information to tax authorities. According to the committee, the document does not introduce new powers for tax officials or abolish bank secrecy. Instead, it seeks to define the procedures, deadlines, formats, and electronic methods for exchanging information already permitted under existing legislation. The proposal attracted significant attention after some media reports suggested it would allow tax authorities to gain broad access to citizens’ bank accounts and deposits. Responding to the growing discussion, the State Tax Committee issued a public explanation, arguing that these interpretations do not accurately reflect the draft’s content. “The draft does not grant tax authorities new powers, does not abolish bank secrecy, and does not provide free access to the bank accounts of citizens or businesses,” the committee said. It stressed that banks would continue to provide information only in cases established by law. The committee pointed to Article 134 of the Tax Code and the Law on Bank Secrecy, which already allow banks to share information related to taxation with state tax authorities under specific legal procedures. It also emphasized that any information received by tax authorities is itself protected as tax secrecy and cannot legally be disclosed or used for purposes other than tax administration. Officials further argued that similar information-sharing mechanisms exist in many countries, including members of the Organisation for Economic Co-operation and Development (OECD). Uzbekistan has also joined the Global Forum on Transparency and Exchange of Information for Tax Purposes, requiring the country to develop clear and transparent rules in this area. Despite these assurances, the proposal quickly became one of the country’s most discussed regulatory initiatives. One of the most controversial provisions concerns peer-to-peer (P2P) transfers. Under the draft, banks would report cases where an individual’s bank card or electronic wallet receives transfers totaling at least 500 times the base calculation amount during a calendar month from people other than close relatives. The measure is intended to identify cases where personal bank cards are allegedly being used for unregistered commercial activity. Economist Otabek Bakirov criticized the proposal, arguing that it contradicts constitutional guarantees protecting banking secrecy. Referring to Article 41 of Uzbekistan’s Constitution, he noted that the confidentiality of bank operations, deposits, and accounts is guaranteed by law. Bakirov also recalled that previous attempts to introduce similar monitoring of P2P transactions had been abandoned following constitutional reforms. “I hope this attempt will also fail,” he wrote, calling on parliament, the Central Bank, the Ministry of Justice, the Ministry of Economy and Finance, journalists, and the public not to remain silent during the discussion. Public comments submitted during the consultation have echoed many of these concerns. According...