Uzbekistan Weekly: Uzbekistan deepens EU ties, overhauls power market, advances Trans-Caspian plan

October 17, 2025 to October 23, 2025

This week's top 10 stories from Uzbekistan, selected from our daily intelligence briefs.

1. Expanded EU Partnership Deal Recasts Trade, Investment and Governance Framework

Uzbekistan and the European Union will sign an Enhanced Partnership and Cooperation Agreement (EPCA) during President Shavkat Mirziyoyev’s official visit to Brussels on 23–24 October 2025, replacing the 1999/1996 framework and formalizing a shift from principle-based ties to operational cooperation across trade, investment and governance. The EPCA prioritizes reducing technical barriers, simplifying customs, liberalizing services, strengthening investor and IP protections, and aligning with WTO norms; it also extends GSP+–linked benefits through end‑2027 and complements existing EU support including a €76 million 2021–2024 program and the EU Global Gateway initiative.

Beyond economic measures, the deal broadens cooperation into foreign policy, security, data protection, migration management and anti‑corruption, and is intended to mobilize European capital and expertise for Uzbekistan’s reform and diversification agenda. Mirziyoyev will meet European Council President António Costa, European Commission President Ursula von der Leyen and Belgian leadership, and engage European companies and banks on projects in energy, transport connectivity, digital innovation, critical raw materials and finance—signaling deeper EU–Central Asia regulatory and investment integration consistent with parallel agreements with Kazakhstan and Kyrgyzstan.

Local Coverage: uzdaily.uz, gazeta.uz, kun.uz, uza.uz, qalampir.uz, anhor.uz

From daily briefs: 2025-10-18, 2025-10-23, 2025-10-24

2. Power Market Overhaul Sets Stage for RAB Tariffs, Single Buyer Model and Private Operators by 2035

Boston Consulting Group’s Igor Alekseyev outlined a decade-long overhaul of the power sector anchored by a 2035 master plan adopted in March 2025 that envisions structural, regulatory and investment shifts to meet a projected rise in electricity demand from 68 TWh in 2024 to 123 TWh by 2035 (5.5% CAGR). Key reforms already underway include the 2019 unbundling of generation, transmission and distribution, creation of a single-buyer “Uzenergosotish” in 2023, and establishment of a new market regulator expected to approve cost-reflective and RAB-based tariffs for transmission and distribution to guarantee returns and attract capital.

The plan anticipates ~34 GW of new generation capacity, more than 9,000 km of high‑voltage lines and 30+ substations, and major digitalization to integrate renewables and support electrification in industry, households, transport and data centers. Alekseyev warns these changes are “both a sign of economic progress and a stress test,” requiring new business models, technical skills and private-sector participation—setting the stage for private operators under a single-buyer model by 2035.

Local Coverage: gazeta.uz

From daily brief: 2025-10-24

3. EU Plans Coordinating Body for Trans-Caspian Corridor, Project to Debut in Tashkent

EU, South Caucasus and Central Asian foreign ministers met in Luxembourg to advance an interregional agenda linking the EU to Central Asia via Türkiye and the South Caucasus, with a focus on strengthening the Trans‑Caspian International Transport Corridor. Priorities set out include expanding high‑speed internet and digital trade, accelerating renewable energy and grid connectivity, and harmonizing and digitizing customs to ease cross‑border trade. The European Commission will propose a coordinating mechanism to unite governments, international financial institutions and investors; the proposal will be unveiled at the Trans‑Caspian Corridor Investors and Connectivity Forum in Tashkent on November 27.

Officials framed the initiative as strategic supply‑route diversification after Russia became largely unavailable for overland Asia–EU trade following the Ukraine war. Enlargement Commissioner Marta Kos emphasized the need for alternatives to pre‑war routes, and Uzbekistan’s Foreign Minister Bakhtiyor Saidov said Tashkent will prioritise expanding logistics links and deepening partnerships to promote stability and sustainable growth. The move signals a coordinated push by the EU and regional partners to mobilise public and private capital and streamline cross‑border facilitation for Eurasian connectivity.

Local Coverage: gazeta.uz

From daily brief: 2025-10-23

4. EBRD, Mining Ministry Discuss New Investment and Regulatory Steps for Uzbekistan’s Extractives

Uzbekistan’s Deputy Minister of Mining and Geology U. Yusupov met with European Bank for Reconstruction and Development Managing Director Jean-Marc Peterschmitt in Tashkent to review joint projects and next steps for attracting capital into the country’s extractives sector. They highlighted the positive reception of the revised Subsoil Law, which entered into force last year, and agreed that drafting the necessary by‑laws to operationalize the reforms is a near‑term priority.

EBRD officials reiterated that channeling investment into mining, including in Uzbekistan, remains a core bank focus; for international investors, the combination of a modernized legal framework and multilateral backing is expected to generate a more structured pipeline of opportunities and improve project bankability and risk assessment.

Local Coverage: uzdaily.uz

From daily brief: 2025-10-17

5. Riyadh Deals Add $4B in New Projects, Expanding Bilateral Investment Portfolio to $30B

Uzbekistan and Saudi Arabia signed 10 new agreements at the 7th Intergovernmental Commission and 6th Business Council meetings in Tashkent, launching roughly $4 billion in projects across energy and renewables, tourism, transport and logistics, IT, and infrastructure. Officials say the bilateral project portfolio now totals about $30 billion (with $27.2 billion already underway across 56 projects), and trade reached $142.4 million in 2024. Key deals include ACWA Power’s InterHealth PPP healthcare agreement (finalization planned in Samarkand on Nov. 18), Riyadh Cables’ 500 kV ultra-high-voltage cable localization, SAF production for the new $2.5 billion Tashkent international airport with Vision Invest and Air Products, a grid-scale BESS in Parkent, and a new Samarkand thermal plant and 200 MW gas-engine plant with Pemco.

The investments are structured as direct foreign investment rather than state-guaranteed loans, signaling stronger private Saudi capital engagement and higher risk appetite; Uzbekistan’s Investment Minister Laziz Kudratov framed this as a vote of confidence. Co-chaired by Deputy PM Jamshid Khodjayev and Saudi Investment Minister Khalid Al-Falih, the visit—backed by messages from King Salman and Crown Prince Mohammed bin Salman—underscores convergence between Saudi Vision 2030 and Uzbekistan’s New Uzbekistan 2030 on diversification and energy transition. Presidents and ministers emphasized a supportive investment climate as Uzbekistan seeks rapid execution across power, digitalization, and industrial localization.

Local Coverage: gazeta.uz, uza.uz, uzdaily.uz

From daily briefs: 2025-10-17, 2025-10-18, 2025-10-21

6. Tashkent Airport’s Cargo Terminal Revalidates RA3 Status for EU and UK, Easing Direct Air Freight

Tashkent International Airport’s cargo terminal has revalidated its RA3 (Regulated Agent Third Country) status for both the EU and the UK, securing registrations UZ/RA3/00001-01 and UK/RA3/00001-01 in the official EU RA3 database. The independent accredited audit—recognizing the Uzbekistan Airports aviation security department’s standards—confirms the facility’s eligibility to prepare cargo and mail for direct air transport to EU and UK markets; the designation is valid through August 2028.

The RA3 revalidation precedes UzCargo’s planned move to a modern terminal in spring 2025 and is expected to accelerate deliveries, streamline logistics chains and lower time and cost for freight partners. For international shippers and carriers, the decision strengthens Tashkent’s role as a Central Asian aviation hub and expands direct export and transit options to Europe.

Local Coverage: uzdaily.uz

From daily brief: 2025-10-22

7. Tashkent Advances Energy Cooperation with China’s Dongfang Electric and Sinosure

Uzbekistan’s Ministry of Investment, Industry and Trade has advanced energy cooperation with China’s Dongfang Electric International Corporation and state insurer Sinosure in talks led by Deputy Minister Ilzat Kasimov. The discussions focused on financing, insurance and technical collaboration to accelerate power infrastructure projects, with Dongfang — a full‑cycle engineering and EPC contractor — positioned to support design and construction of generation and transmission assets and Sinosure to underwrite political and commercial risks to mobilize export and project finance.

The parties agreed to strengthen financial‑technical ties and pursue construction of new power transmission lines, signalling a pipeline of bankable renewable and grid expansion projects that pair EPC delivery with export credit insurance. For international investors and lenders, the arrangement could improve project bankability, reduce risk exposure and enhance Uzbekistan’s electricity supply reliability; specific timelines, project sizes and financing amounts were not disclosed.

Local Coverage: uzdaily.uz

From daily brief: 2025-10-21

8. Growth Outlook Raised to 7% for 2025 as Central Bank Signals Stronger Policy Transmission and Softer Inflation

Uzbekistan raised its growth outlook at Franklin Templeton’s Investor Day in Tashkent, with Deputy Prime Minister and Economy and Finance Minister Jamshid Qo‘chqorov upgrading 2024 growth to about 7% and projecting 7% GDP expansion for 2025, with per‑capita GDP surpassing $3,500. Qo‘chqorov said the consolidated budget deficit will be contained at 3% of GDP by year‑end and public debt risks remain low per IMF assessments. Inflation eased to 8% in September and is targeted to stay near that level in 2024 and fall below 7% in 2025.

Central Bank Governor Timur Ishmetov signalled stronger monetary transmission—introducing seven‑day bills, fixed‑rate repos and replacing deposit auctions—while aiming to keep inflation near 8% in 2025 en route to a 5% target. He highlighted narrower current account gaps (3.5–4% of GDP), record $55 billion reserves and ~7% year‑to‑date som appreciation. Multilateral forecasts are mixed but upbeat: the IMF raised its 2025 growth forecast to 6.8% (from 6.5%) with inflation seen at 9.1% in 2025, while the World Bank projects 6.2% growth in 2025; authorities are pursuing FSAP‑driven reforms, Basel III by end‑2028 and IFRS adoption by 2027.

Local Coverage: gazeta.uz

From daily briefs: 2025-10-17, 2025-10-24

9. Credit Rating Target Set to BBB+ by 2030 with Privatization of 29 State Firms on Track

Uzbekistan has set a target to achieve an investment‑grade sovereign rating of BBB+ by 2030 while completing the privatization of 29 major state-owned enterprises, Deputy Prime Minister and Economy and Finance Minister Jamshid Qo‘chqorov announced at a Franklin Templeton‑organized Investor Day in Tashkent. The announcement follows S&P’s upgrade of the country’s outlook to positive after raising Uzbekistan from BB‑ to BB+ in June 2025, a move officials cite as validation of structural reforms. Sixteen large state firms already carry international ratings (mostly BB) and several have ESG scores.

The state plans IPOs or SPOs for 12 major companies over the next three years, targeting dual listings in Tashkent and London with up to 75% free float to attract institutional capital. Corporate governance reforms are being implemented—independent directors must occupy 25% of boards and IFRS‑based reporting will shift to semiannual disclosures—measures intended to bolster investor confidence and support the BBB+ objective by 2030.

Local Coverage: gazeta.uz

From daily brief: 2025-10-24

10. Dushanbe Summits Elevate Regional Cooperation with Uzbek-Led Initiatives

President Shavkat Mirziyoyev’s October 9–10 working visit to Tajikistan advanced Uzbek-led regional integration by hosting the “Central Asia–Russia” summit and the CIS Heads of State Council, positioning Tashkent as a pragmatic driver of multilateral cooperation. Bilateral talks with President Emomali Rahmon emphasized rising trade, cargo flows and increased flight frequencies, underpinning a durable cross‑border economic base; Uzbekistan proposed institutional upgrades including a deputy‑prime‑minister–level Coordinating Council and a Joint Action Plan through 2027 to formalize cooperation.

Concrete sectoral initiatives unveiled during the summits target industrial and transport linkages—an industrial engineering hub in Bukhara, an “agroexpress” corridor, new info‑logistics centers—and strategic partnerships in nuclear energy and AI. Security measures prioritize coordinated counterterrorism, anti‑extremism and cyber‑defense efforts and a unified Central Asian approach to Afghanistan. Collectively, the agenda aims to deepen regional supply chains, bolster energy security and human capital amid shifting geopolitical pressures, reinforcing Uzbekistan’s role as a conduit between Central Asia and Russia.

Local Coverage: uza.uz

From daily brief: 2025-10-23

About This Weekly Digest

The stories above represent the most significant developments from Uzbekistan this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Uzbekistan's leading news sources to provide comprehensive situational awareness for international decision-makers.