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Bilateral Relations

Uzbekistan and United States Leaders Discuss Expanding Strategic Partnership

According to the office of President Shavkat Mirziyoyev, the Uzbek and U.S. presidents held a telephone conversation on Friday, focusing on ways to deepen their countries’ strategic partnership across economic, security, and cultural fields. The details of the call were provided by the Uzbek president’s office. Strengthening Economic Ties The presidential office reported that both leaders emphasized opportunities to expand trade and investment. Bilateral trade grew by 15% in 2024, and the two sides signaled interest in building on that momentum. Prospective projects span civil aviation, mineral resources, energy, agriculture, digital technologies, finance, and education. Later this month, meetings are expected between Uzbek representatives and leading U.S. companies to explore long-term cooperation. Security and Regional Cooperation According to the statement, security issues also featured prominently in the conversation. The two presidents noted ongoing joint work against terrorism, extremism, and illegal migration. They also exchanged views on regional cooperation in Central Asia, highlighting the role of the “C5+1” dialogue format that brings together the United States and five Central Asian countries. Cultural and Humanitarian Exchanges The Uzbek president’s office noted that the discussion touched on expanding cultural and educational links. Branches of U.S. universities are operating in Tashkent, providing new opportunities for academic exchange. Looking ahead, the leaders noted with satisfaction that Uzbekistan’s national football team will participate for the first time in the 2026 World Cup, which the United States will be the main host of. A Growing Partnership Since Mirziyoyev assumed the presidency in 2016, Uzbekistan has pursued a more open foreign policy and a program of internal reforms aimed at modernizing the economy and improving governance. These changes have created new opportunities for cooperation with Washington. The United States, for its part, has supported regional initiatives through the C5+1 framework, while also seeking closer ties with Tashkent in areas such as counterterrorism, economic development, and education. American universities and companies have increased their presence in Uzbekistan, and cultural exchanges have expanded steadily in recent years. Next Steps The president’s office stated that President Mirziyoyev invited President Trump to pay an official visit to Uzbekistan. Both leaders agreed to maintain high-level contacts and continue advancing joint projects and programs. According to the Uzbek president’s office, the conversation was held in a constructive and friendly atmosphere, underscoring a shared interest in further strengthening Uzbek-American relations.

Finance

Kyrgyzstan Enacts Code to Boost Financing for Female Entrepreneurs

Kyrgyzstan has officially enacted the Code on Financing Women Entrepreneurs, a regulatory framework aimed at expanding women’s access to financial products from banks and microfinance institutions. The National Bank of the Kyrgyz Republic (NBKR) will oversee the implementation of the Code, which it regards as a milestone in institutional support for women’s entrepreneurship. Speaking at the launch ceremony, NBKR Chairman Melis Turgunbaev emphasized the crucial role of women in the country’s economy, particularly within the small and medium-sized business sector. “The launch of the Code, backed by the recent legislative recognition of the concept of ‘women’s entrepreneurship,’ creates a solid institutional foundation for mobilizing financial sector resources and directing them toward the development of this strategically important segment of the economy,” Turgunbaev said. The legal definition of women’s entrepreneurship was introduced into Kyrgyz legislation only last year. Lawmakers noted that female entrepreneurs often face structural challenges, such as balancing business activities with domestic responsibilities and limited access to property assets that can serve as loan collateral. According to the Ministry of Economy and Commerce, the typical Kyrgyz female entrepreneur is between 40 and 50 years old, has a secondary education, runs a small or medium-sized enterprise, often individually and began her business career before turning 30. The new Code modifies financial regulations to simplify access to credit for women. Key provisions include expanded opportunities for unsecured lending and the removal of a previous requirement for financial institutions to set aside 1% of the loan amount for potential losses when lending to women. The NBKR believes these changes will make financing for women both strategically and commercially attractive across the banking sector. “Our actions are not just advocacy, they are about building sustainable market mechanisms,” said Turgunbaev. “The National Bank is establishing economically sound conditions that incentivize the entire financial sector to support women entrepreneurs.” According to the NBKR, the Code applies specifically to enterprises in which women own at least 51% of the capital and make up at least 51% of the workforce. Financial institutions are encouraged to offer more accessible, long-term loans to qualifying women-led businesses on preferential terms. However, The Times of Central Asia has learned that the Code currently lacks a dedicated mechanism to support women facing loan repayment difficulties. Nonetheless, the regulator clarified that this does not restrict banks from granting relief measures. “The NBKR will not prevent commercial banks from offering concessions to women entrepreneurs with overdue loans under programs focused on financing women-led businesses,” a spokesperson said. The National Bank plans to coordinate the Code’s rollout and ongoing refinement, emphasizing that support for women entrepreneurs is viewed as a long-term institutional priority.

Digitalization

The Next Steps for Central Asian Finance: Interview with Azerbaijani Fintech Leader Dr. Fuad Karimov

This week The Times of Central Asia will be attending the CAMCA Regional Forum, which this year is being held in Ulaanbaatar, Mongolia. The CAMCA network is a collection of professionals and policymakers dedicated to sharing ideas, knowledge and inspiration to accelerate the development of the Eurasia region; its name stands for Central Asia, Mongolia, the Caucasus and Afghanistan. Ahead of the Forum, The Times of Central Asia spoke with Dr. Fuad Karimov, Regional Managing Director of the payment software company Xsolla, about what the CAMCA program means for the Eurasian finance industry, and how Azerbaijan can work more closely with Central Asia. TCA: What condition do you feel fintech spaces are currently in, particularly in the Eurasia region? FK: Fintech [financial technology] across the CAMCA region is accelerating. Countries like Kazakhstan and Uzbekistan have made significant progress in regulation and adoption. In Azerbaijan, key drivers include state-led digitalization and innovative companies like PashaPay and Birbank, which are transforming consumer payment behavior. Cross-border transfers, mobile banking, and contactless solutions are increasingly common across the region. In what areas do you think CAMCA initiatives can help them improve? CAMCA can create platforms to harmonize financial regulations, facilitate cross-border fintech testing, and promote knowledge exchange. It can also help reduce friction in currency conversion. Regional collaboration can attract investors from the West and Asia. Priorities should include cybersecurity, financial literacy, AI in finance, and coordinated exploration of digital currency pilots like e-Manat, e-Tenge, and e-Soum. You're moderating a session on harnessing fintech in CAMCA markets. What topics do you expect to touch upon, and who are you looking forward to hearing from? We’ll cover the rise of digital national currencies (CBDCs), crypto regulation, exchange rate risk, and the impact of AI on lending, compliance, and fraud prevention. I’m especially looking forward to hearing from fintech leaders in the CAMCA region — each representing diverse policy environments and innovation models. Where do you see opportunities for Central Asia to work more closely with Azerbaijan? There’s strong potential in co-developing cross-border payment systems, digital identity frameworks, and startup accelerators. Azerbaijan can share experience in building public-private fintech partnerships, while Central Asia offers scale and growing demand. Aligning exchange rate mechanisms, regulatory approaches, and education systems will enhance regional integration. The CAMCA platform is an ideal space to turn these synergies into actionable policy and investment opportunities.

Nuclear power

Opinion: In Kazakhstan’s Nuclear Race, Financial Muscle Will Decide the Winner

The most closely watched development in Kazakhstan this June is the decision over which foreign company will be awarded the contract to build the country’s first nuclear power plant. According to earlier announcements, the Kazakh Atomic Energy Agency is expected to make its decision by the end of the month. Bidders from South Korea, France, Russia, and China remain in contention, although recent expert commentary suggests that earlier assumptions favoring Russia’s Rosatom may no longer hold. Competing Interests Beneath the Surface In Kazakhstan, there appears to be an internal struggle between two strategic camps with opposing visions for the project’s future. Each faction has its own backers, deeply embedded in the country’s nuclear ambitions. One group, primarily composed of financial officials and economic policymakers, is advocating for the least expensive option. Their preferred bidder is China's China National Nuclear Corporation (CNNC), which is offering the lowest project cost, backed by Chinese bank financing. This group is influenced not only by CNNC’s competitive pricing but also by China’s broader economic leverage over Kazakhstan. The second group consists of nuclear professionals, scientists, engineers, and technicians, who prioritize reliability and operational familiarity. Their preference leans toward Rosatom, given Russia’s historical involvement and established presence in Kazakhstan’s nuclear sector. This technical camp is widely viewed as a de facto ally of the Kremlin, as Rosatom’s participation would extend Moscow’s long-term strategic influence in Central Asia. Given the 50-60-year operational lifespan of such reactors, this influence would be enduring. Though this tension remains speculative, patterns observed over the past decade suggest a real and ongoing tug-of-war. No Thermal Power, No Nuclear Power? At the end of May, media in Kazakhstan reported that Russia might not fulfill its commitments under a 2023 memorandum signed during President Vladimir Putin’s visit to Astana. The agreement with President Kassym-Jomart Tokayev concerned the construction of three coal-fired thermal power plants (TPPs) in Kokshetau, Semey, and Ust-Kamenogorsk, with Russian energy giant Inter RAO designated as the turnkey builder. The total cost was estimated at $2.8 billion. However, in April 2024, First Deputy Prime Minister Roman Sklyar acknowledged financial hurdles. While design and preliminary work continue, difficulties remain in subsidizing equipment interest rates. Sklyar noted that a change in investor may be considered, and the situation could be resolved within a month. Oil and gas expert Olzhas Baidildinov has speculated that the nuclear power plant project may be bundled with the thermal plants as a “social burden”, a condition that CNNC might accept more readily than Rosatom. “If CNNC is chosen to build the nuclear power plant, the thermal plants could follow as part of the package,” Baidildinov suggested via his Telegram channel. Sergey Agafonov, head of the Kazakhstan Association of Energy Supply Organizations, also sees the nuclear and thermal plant projects as interconnected, particularly with regard to financing. Debunking the Price Myth The technical community has responded swiftly to growing narratives about CNNC's supposedly unbeatable offer to construct the nuclear plant for $5.5 billion, a claim spread via Chinese sources. Nuclear...

Finance

Binance to Assist Kyrgyzstan in Developing Blockchain Infrastructure and Crypto Assets

Kyrgyzstan’s National Investment Agency has signed a Memorandum of Cooperation with Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange by trading volume. According to the agency, Binance will assist Kyrgyzstan in several key areas, including the development of blockchain infrastructure and the creation of a national cryptocurrency reserve. The partnership will also focus on training young professionals, government employees, and specialists in blockchain technologies, virtual asset management, and cybersecurity. In addition, Binance will provide support in establishing a management system for virtual assets and blockchain technology in Kyrgyzstan source. While public interest in cryptocurrencies continues to grow in Kyrgyzstan, the market remains poorly regulated. Earlier this year, the Ministry of Economy and Commerce proposed legislation to create licensed crypto banks that would offer regulated banking services related to digital assets. The ministry stressed the need to integrate crypto assets into the national financial system, citing the rapid advancement of digital technology and the economic potential of legalizing cryptocurrency transactions. The introduction of crypto banks is expected to increase transaction volumes, boost tax revenues, and create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. In a separate move to stabilize the sector, Kyrgyzstan’s Cabinet of Ministers significantly raised the minimum authorized capital required for crypto exchanges, from 100 million KGS to 10 billion KGS, a hundredfold increase. The Ministry of Economy and Commerce, which initiated the reform, stated that the measure is designed to ensure the financial stability of crypto platforms, safeguard user interests, and foster a transparent and secure virtual assets market. Existing exchanges have until January 1, 2026, to comply with the new capital requirements.

Economy

Uzbekistan’s Foreign Debt Climbs to $64.1 Billion in 2024

Uzbekistan’s total external debt rose to $64.1 billion in 2024, accounting for 55.7% of the country’s gross domestic product (GDP), according to a new report from the Central Bank on the balance of payments, international investment position, and external debt. This marks an increase from 51.9% at the end of 2023. The country’s external debt includes both public and private liabilities, though many private-sector entities, particularly in banking and industry, are partially or wholly state-owned. The government controls approximately 65% of the banking sector and holds stakes in major enterprises such as UzAuto Motors and Uzbekneftegaz. These companies, along with state-owned banks like the National Bank of Uzbekistan (NBU) and Uzpromstroybank, have collectively issued billions in debt over recent years. Corporate (or private sector) external debt rose by $6.6 billion to $30.2 billion, equivalent to 26.2% of GDP. Government debt increased by $4.2 billion, reaching $33.9 billion, or 29.5% of GDP. Since 2016, Uzbekistan’s external debt has expanded 4.4 times, from $14.7 billion to $64.1 billion. Corporate debt has nearly quadrupled during that period, while government debt has grown by a factor of 5.2. Although the growth rate of public external debt has decelerated in recent years, corporate debt, primarily borrowed by state-owned banks and companies, continues to rise sharply. According to projections from the Ministry of Economy and Finance, Uzbekistan’s public debt is expected to reach $45.1 billion by the end of 2025, representing 36.7% of projected GDP. By the end of 2024, public debt is estimated to total $39.7 billion.