Uzbekistan - The Times Of Central Asia

Viewing results 1 - 6 of 1391

New Uzbekistan

Opinion: The Reform Paradox for Uzbekistan: Global Capital, Political Control

In mid-May, Uzbekistan is preparing to take a major step onto the global financial stage – one that reflects its broader, decade-long push to open its economy to international investors. The country's National Investment Fund (UzNIF), a $2.4 billion vehicle holding minority stakes in 13 strategic state-owned enterprises, is preparing to list 30% of its capital on the London and Tashkent stock exchanges — the first time such a state-backed investment vehicle is being listed on international equity markets. For President Shavkat Mirziyoyev, the move signals that Uzbekistan wants to be seen as an investable, reforming, and globally connected state. But the planned listing also captures the central paradox of Uzbekistan's current trajectory: the country is opening economically while remaining politically closed. Foreign investors are being invited in. State assets are being partially exposed to market discipline. Capital markets are being developed. Yet the political system remains tightly managed, with limited opposition, weak institutional pluralism, and few independent channels for releasing social pressure. That is why Uzbekistan's stability should not be read only as a strength. It should also be read as a system test: can controlled modernization keep producing legitimacy without creating political mechanisms for absorbing the expectations it generates? Mirziyoyev as a Controlled Modernizer Shavkat Mirziyoyev’s political style is not that of a frontline strongman constantly mobilizing society against enemies. His approach is administrative, developmental, and transactional: reform from above, personnel control, investment attraction, infrastructure, market opening, and the redistribution of economic flows. In this sense, Mirziyoyev is best understood not as a liberal reformer in the Western sense, but as a controlled modernizer. The reform agenda is real. Uzbekistan has moved to attract foreign capital, open selected state assets, improve its business image, and position itself as a more predictable investment destination. The UzNIF listing fits this broader effort: it is designed to deepen capital markets, signal openness to international investors, and show that the state is willing to place parts of its economic architecture under market scrutiny. But the political architecture remains tightly managed. Freedom House continues to rate Uzbekistan as "Not Free" — 12 points out of 100 in its 2026 report — citing the concentration of power in the executive branch, the absence of a genuine parliamentary opposition, and severe restrictions on independent journalists and human rights defenders. This is the central tension: Uzbekistan is reforming economically, but not politically. [caption id="attachment_48249" align="aligncenter" width="2560"] Tashkent has opened up to investment over the past decade. Image: Joe Luc Barnes[/caption] Growth as Legitimacy For now, the model works because growth provides legitimacy. The World Bank expects Uzbekistan's economy to grow by around 6.4% in 2026, following 7.7% growth in 2025 – supported by domestic demand, private consumption, and continued investment. Public debt remains comparatively moderate at around 28% of GDP, and the country benefits from the perception that it is one of the more dynamic economies in the region. This gives the ruling system room to maneuver. The reform narrative allows the leadership to present itself as forward-looking without opening the...

Energy cooperation

Kazakhstan Plans More Oil, Gas Cooperation with Uzbekistan, Minister Says

Kazakhstan is looking to deepen energy cooperation with Uzbekistan, with several joint projects already moving into the implementation stage, Energy Minister Yerlan Akkenzhenov said on the sidelines of the RES 2026 regional environmental summit in Astana, according to BAQ.KZ. “Exchange of experience and mutual assistance help us solve practical tasks,” Akkenzhenov said. “We are actively cooperating with our partners not only in the energy sector, but across all areas of the economy.” The minister noted that discussions with Uzbekistan cover a number of large-scale initiatives, particularly in petrochemicals and oil refining. “We have many joint projects with Uzbekistan. A recent presidential visit included discussions on numerous initiatives, including the development of the petrochemical industry and the expansion of oil processing,” he said. Cooperation is also expanding in energy transit and supply. Akkenzhenov said the two countries are working closely on the transit of Russian gas to Uzbekistan, as well as supplies of Russian oil. “We are also considering the possibility of exporting Kazakh products, including crude oil and petroleum products, to Uzbekistan,” he added. According to him, several of these initiatives have already reached the implementation stage. “Many projects are already in practical phases. Overall, we have built very close cooperation with our Uzbek partners,” he said. Last year, Kazakhstan’s Energy Ministry confirmed that a six-month ban on fuel exports remained in force, halting gasoline shipments to neighboring countries, including Uzbekistan. At the same time, international developments may affect regional supply routes. According to Reuters, Russia plans to halt the transit of Kazakh oil to Germany via the Druzhba pipeline starting May 1. The decision is expected to impact deliveries to the PCK refinery in Schwedt, a key supplier for Berlin and Brandenburg. Despite these changes, German officials have said alternative supply routes will be used and that fuel availability will not be affected.

Migrant Workers

Uzbekistan Officials Intervene Over Wage Delays for Migrant Workers in Russia

Uzbek diplomats and migration officials have intervened to resolve wage disputes affecting dozens of Uzbek citizens working in Russia’s Tyumen region, according to a report by Dunyo Information Agency. Representatives of Uzbekistan’s Consulate General in Yekaterinburg, together with officials from the Migration Agency, traveled to the city of Tobolsk, where they met with more than 100 Uzbek citizens working temporarily for local companies. The delegation organized an on-site reception, providing legal and consular assistance and clarifying issues related to passport processing and compliance with migration laws. During the meetings, officials also warned workers about the risks of engaging with illegal or extremist groups and reminded them that joining private military companies could lead to criminal liability. A key issue raised during the visit was delayed wage payments. Authorities found that a subcontractor had failed to pay salaries for February and March to 26 Uzbek workers. Following negotiations involving the main contractor and the employer, the companies acknowledged the debt and agreed to settle it. As a result, approximately 2 million rubles (about $24,945) in wages have been accrued and are expected to be transferred to the workers’ bank accounts in the coming days. In addition, the employers committed to repaying outstanding wages to around 80 other Uzbek citizens who had previously left the company without receiving full payment. Officials also inspected living and working conditions and held discussions with employers aimed at preventing similar cases in the future. According to Dunyo, Uzbekistan’s government considers the protection of its citizens abroad and ensuring fair pay for their work a priority. Such outreach visits and rapid interventions are seen as an important tool for strengthening legal protections for Uzbek migrant workers in Russia and addressing their concerns directly on the ground. As previously reported by The Times of Central Asia, Russia expressed its readiness to facilitate the transfer of more than 3,000 Uzbek prisoners to serve their sentences in Uzbekistan, although the process remains constrained by legal limitations.

TCA Interviews

Uzbekistan’s Ambassador to Kazakhstan on Regional Integration and a Shifting Global Order

Amid shifting regional dynamics and an evolving global order, Uzbekistan has emerged as one of Central Asia’s most proactive diplomatic and economic actors. Since 2016, Tashkent has pursued an ambitious reform agenda at home while expanding cooperation with its neighbors and major global powers. In a wide-ranging interview with TCA, His Excellency Bakhtiyor Ibragimov, Ambassador Extraordinary and Plenipotentiary of the Republic of Uzbekistan to Kazakhstan, discusses regional integration, strategic partnerships, Afghanistan, China, and the future of economic diplomacy in Central Asia. TCA: Mr. Ambassador, Uzbekistan has demonstrated significant economic progress in recent years. What do you see as the key drivers behind this success? Ambassador Ibragimov: First of all, welcome to the Embassy of the Republic of Uzbekistan in Astana. We are familiar with your publication. We read it often, follow it, and analyze it. I would start with President Shavkat Mirziyoyev taking office at the end of 2016. It is no secret that until 2016, the Republic of Uzbekistan, despite its potential, was a fairly closed country. Our president always asks us, his representatives abroad, to speak openly about this. You cannot rewrite history or hide it. Relations with our neighbors were, frankly, at a very low level, and with some, there were no relations at all. The end of 2016 was a turning point, when reforms were not only declared but implemented and are now yielding results. One of President Mirziyoyev’s first foreign-policy priorities was normalization, and I want to emphasize this: normalization and then improving relations with neighbors. There is a saying in Uzbekistan: "If your neighbor is doing well, then you will also do well." Today, nearly a decade later, we can see that this policy is yielding results. Please note: this is not my personal assessment, but the assessment of international experts who recognize that the President has managed to achieve what once seemed impossible. I am speaking about regional integration with our neighbors. For example, a key issue for Central Asia is water. Many analysts warn that competition for water resources could, in the future, become a potential source of conflict. Two main rivers feed the region. Unfortunately, due to climate change, water volumes are not increasing year by year, while consumption is rising. We have managed to resolve almost all issues to date. In particular, based on the level of accumulation in the autumn-winter period in the upper reaches of the Amu Darya and Syr Darya rivers, and taking into account irrigation needs during the growing season, our water specialists jointly agree on and ensure the necessary water discharge within an agreed time frame. Uzbekistan, as you know, is located in the very center of Central Asia, bordering all Central Asian states, as well as Afghanistan. Today, border issues have largely been resolved. The final chord was struck on March 31, 2025, when the leaders of Uzbekistan, Tajikistan, and Kyrgyzstan signed an agreement on the border junction point, confirming the point of convergence of the three countries’ state borders. It should also be...

Water resources

Kyrgyz MP Questions Why Uzbekistan and Kazakhstan Don’t Pay for Irrigation Water

A long-standing debate over Kyrgyzstan’s water resources resurfaced this week after a member of parliament questioned why Uzbekistan and Kazakhstan do not compensate Kyrgyzstan for irrigation water sourced from its reservoirs, according to a report by Kaktus Media. Speaking at a February 9 meeting of the parliamentary committee on agrarian policy, water resources, ecology, and subsoil use, MP Umbetaly Kydyraliev raised concerns about growing water shortages caused by climate change and the lack of economic return from water exports to neighboring countries. “About 80% of the water in our reservoirs goes to Kazakhstan and Uzbekistan,” said Kydyraliev. “How are we resolving this issue with them?” Regional Cooperation vs. Compensation In response, Deputy Prime Minister and Minister of Water Resources, Agriculture, and Processing Industry Bakyt Torobaev explained that while Uzbekistan and Kazakhstan are not making direct payments for water, they are contributing to major regional infrastructure projects, most notably, the Kambar-Ata-1 hydropower plant. Torobaev emphasized that cooperation is based on mutual benefit rather than transactional agreements. He noted that both countries have expressed strong interest in ensuring reliable access to water and have supported the hydropower initiative accordingly. Kambar-Ata-1: Strategic Investment Kambar-Ata-1, originally launched during the Soviet era and later shelved, is poised to become one of Central Asia’s largest hydropower plants. Once completed, it is expected to surpass the output of the Toktogul hydropower station, currently Kyrgyzstan’s main source of electricity. The plant's projected cost is around $3.6 billion. Who Should Pay for Upkeep? Kydyraliev also cited other key reservoirs, including Kempir-Abad (jointly managed with Uzbekistan), Kirov, and Orto-Tokoy, which remain under Kyrgyzstan’s jurisdiction. Annual intergovernmental commissions determine how much water is released from these facilities, yet no financial compensation is received. “Does this mean Kyrgyzstan gains no economic benefit from maintaining these hydropower facilities?” he asked. “We have to repair them, stabilize water levels, and inspect dams. These are real costs. Other countries pay for water under international law.” Official Position: No Demands for Payment Deputy Energy Minister Nasipbek Kerimov noted that the issue is being jointly studied by energy and water specialists. Torobaev added that details of these discussions are confidential but confirmed that President Sadyr Japarov has instructed officials not to demand payments from neighboring states for infrastructure maintenance. Instead, Kyrgyzstan will shoulder those costs itself, with any external assistance remaining voluntary.

Kyrgyz-Uzbek border

Kyrgyzstan Seeks End to Extra Transit Fees for Its Citizens Crossing Uzbekistan

Kyrgyzstan has formally requested that Uzbekistan eliminate additional fees imposed on Kyrgyz citizens transiting through Uzbek territory, including charges for vehicle insurance and window tinting. The matter was raised during a session of the Jogorku Kenesh (parliament), where Deputy Foreign Minister Almaz Imangaziev confirmed that negotiations with Uzbek authorities are ongoing. According to Imangaziev, the request is currently under internal review in Uzbekistan. “When Kyrgyz citizens transit through Uzbekistan, mainly en route to the southern regions of our country, they are required to purchase car insurance and pay additional fees if their windows are tinted. On our side, no such requirement exists,” said lawmaker Dastan Bekeshev, who called on the Foreign Ministry to advocate for the removal of these rules. Imangaziev affirmed that Bishkek has already submitted a formal request to Tashkent. He added that if Uzbekistan fails to eliminate the fees, Kyrgyzstan may consider imposing reciprocal measures on Uzbek citizens transiting through Kyrgyz territory. The development comes amid broader regional concerns over trade and transit barriers. On January 17, Uzbek Deputy Prime Minister Jamshid Khodjaev addressed similar frustrations during a meeting in Tashkent with entrepreneurs, ambassadors, and government officials. He pointed to challenges faced by Uzbek exporters to Tajikistan, citing excessive procedures and additional customs fees that reportedly raise the price of Uzbek goods by approximately 15%, undermining their competitiveness. Khodjaev warned that unless such restrictions are lifted, Uzbekistan may introduce symmetrical measures in response.