Uzbekistan Weekly: Uzbekistan moves to free-float som, counters Kremlin provocation, deepens BRICS ties

January 8, 2026 to January 14, 2026

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

1. Central Bank Advances Free-Floating Som as IMF Advisor Urges Clearer Intervention Framework

Uzbekistan’s central bank deepened exchange-rate liberalization in 2025 by widening market participation, expanding market-maker spreads and allowing two-way som movements; the currency appreciated 6.8% vs. the dollar this year amid stronger exports, remittances and FDI, while higher short-term volatility is being framed as a sign of a more responsive market. Deputy Chairman Nodirbek Ochilov said the bank is acting as a price taker, increasing transparency through daily auction disclosures and an FX Market Review, preparing onshore hedging tools and strengthening market infrastructure. IMF advisor Simon Gray welcomed the reforms but urged clearer communication on intervention logic — notably around gold purchases and sterilization — and warned about the transition costs of replacing cheaper foreign-currency debt with more expensive domestic borrowing.

Separately, the central bank has launched formal research into a central bank digital currency, moving the “digital som” from discussion to a study phase with preliminary decisions expected early 2026 and a CBDC roadmap due by April 2026 under a state-backed 2025–26 program. Ochilov and Chairman Timur Ishmetov said both retail and wholesale models will be assessed, with international input (including technical exchanges with the Swiss National Bank) and stakeholder consultation planned; potential use cases include retail payments, interbank settlement and cross-border transactions.

Local Coverage: gazeta.uz

From daily brief: 2026-01-14

2. Kremlin TV Host Urges ‘Special Military Operation’ in Central Asia as Uzbek Figures Demand Firm Response

Russian state TV host Vladimir Solovyov on [date unspecified] urged Moscow to consider Ukraine‑style “special military operations” in its self‑defined “near abroad,” explicitly naming Armenia and Central Asia and arguing Russia should prioritize those regions over places like Syria or Venezuela, even dismissing international law if national security is invoked. The remarks sparked immediate backlash across Uzbekistan’s public sphere (anhor.uz, gazeta.uz, Qalampir, Kun.uz), with civil society and political leaders calling for coordinated diplomatic countermeasures — including protest notes and persona non grata designations — and warning the statements risk damaging bilateral ties.

Prominent responses included Bobur Bekmurodov, chair of the Yuksalish Movement, who said such provocations would turn neighbors into enemies and vowed a “firm, united response” to threats, and Alisher Qodirov, leader of Milliy Tiklanish, who argued the comments contradict strategic partnership and stressed the region could mount a serious collective response to aggression. The episode underscores rising sensitivity in Central Asia to public rhetoric from Moscow and increases pressure on regional governments to issue unified, measured diplomatic reactions.

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

From daily brief: 2026-01-13

3. July Policy Roundup: AI Plans Presented, BRICS Partnership Secured, and Azerbaijan State Visit Caps Active Month

In July Uzbekistan pursued an intensive policy agenda across technology, diplomacy, governance and economic management. President Shavkat Mirziyoyev reviewed plans for digital technologies, artificial intelligence and telecommunications and assessed Paris Olympic/Paralympic preparations; domestically Tashkent issued a decree to improve state management efficiency, transferred 28 regional executive powers to local councils, expanded satellite-data use in agriculture, and tightened budget discipline and public employment rules. The country also registered “Samarkand Paper” as a geographical indication and climbed 19 places in the Sustainable Development Global Index, signaling measurable gains in competitiveness and governance.

On the international front, a 2–4 July state visit to Azerbaijan produced decisions at the second High Intergovernmental Council and a foundation-laying ceremony for an “Uzbekistan” park in Baku; Uzbekistan also participated in the ECO Summit in Khankendi and held talks with Pakistan’s Prime Minister Shehbaz Sharif. Tashkent secured BRICS partnership status, appointed its first ambassador to Serbia, and signed a trilateral boundary agreement with Afghanistan and Pakistan—moves that broaden Uzbekistan’s regional integration and diplomatic footprint while supporting economic and security cooperation.

Local Coverage: uza.uz

From daily brief: 2026-01-08

4. President Unveils Overhaul of Vocational Education and Labor-Market Architecture

President Shavkat Mirziyoyev has launched a major overhaul of Uzbekistan’s vocational education and labor-market architecture as a 2025 priority, citing automation, digitalization and AI and forecasting that within five years 30% of jobs will be fully automated and 50% will require new skills. The plan redirects post‑grade‑9 students into upgraded technical colleges, commits to renovating at least 100 colleges annually from 2026, and mandates adoption of German, Swiss, UK, Chinese and Korean curricula in 100 institutions each year; dual training will be expanded with incentives including preferential loans up to 5 billion soums for seven years, 1% social tax relief extensions, entrepreneurship bonus points and stipends for 100,000 technical students from 2026 with merit top‑ups.

To finance the reforms Mirziyoyev approved a fund (decision published on Lex.uz, 30 December 2025) initially capitalized with 2 trillion soums from the State Social Protection Fund plus up to 50% of balances from 55 extra‑budgetary funds, and additional transfers (10–20%) from specified agencies. Partnerships include placing Jizzakh Polytechnic under Hungary’s Óbuda University and creating a STEM university with Japan’s University of Tsukuba; nursing will align with Pearson standards. A planned digital ecosystem will link graduates to vacancies, while regional revenue measures and governance efficiencies are expected to generate an additional 5 trillion soums for district development.

Local Coverage: gazeta.uz, anhor.uz

From daily briefs: 2026-01-08, 2026-01-09

5. Central Asia–China Format Formalizes Secretariat as Uzbekistan Ratifies Statute

Uzbekistan has ratified the statute establishing the Secretariat for the Central Asia–China cooperation format, a step formalized by President Shavkat Mirziyoyev (date not specified in the report). The law defines the Secretariat’s mandate, core functions and working procedures to coordinate political dialogue, trade and investment, transport connectivity, energy cooperation, and education and cultural exchanges among Central Asian states and China, providing a standing platform to coordinate commitments, support project execution and monitor implementation.

For Uzbekistan, ratification is expected to deepen its role in regional integration, accelerate infrastructure and transport-logistics development, and help operationalize new trade corridors to boost cross-border flows. More broadly, the move consolidates the format’s operational capacity and signals a transition to a more structured, institutionalized phase of multilateral cooperation between Central Asia and China, with implications for regional governance, project delivery and economic connectivity.

Local Coverage: kun.uz, uzdaily.uz

From daily brief: 2026-01-14

6. Green Hydrogen Pilot Launches in Chirchiq with ACWA Power Investment

Uzbekistan’s Ministry of Investment, Industry and Trade has announced the launch of the first phase of a green hydrogen pilot in Chirchiq, led by Saudi developer ACWA Power with an $88 million investment. The phase targets production of 3,000 tonnes of green hydrogen annually beginning in 2025, has created 40 jobs, and follows President Shavkat Mirziyoyev’s November 2023 directive to pilot green hydrogen in Tashkent region.

A planned second phase would scale output toward green hydrogen–based ammonia of up to 500,000 tonnes per year and build a wind power portfolio of up to 2.4 GW, positioning Uzbekistan to decarbonize fertilizer and industrial processes and expand renewable capacity. The project signals a strategic move to integrate low‑carbon hydrogen into the country’s energy mix, attract foreign capital, and enhance energy resilience for industrial consumers.

Local Coverage: uzdaily.uz

From daily brief: 2026-01-11

7. Targeted Support Lifts Export Activity, Expands Access to US and EU Markets

Targeted government support in 2024 helped overcome export barriers for businesses and expanded access to U.S. and EU markets. Authorities reviewed operations at more than 46,000 companies, provided practical assistance on meeting international standards and leveraging GSP+ preferences, and as a result 1,614 firms exported goods worth $17 billion—with shipments to the United States and Europe totaling $78.2 million and overall volumes to those markets rising 39% year‑on‑year.

Case studies illustrate the approach: Basalt Engineering Corp secured international accreditation to sell construction products to the US, Europe and CIS; BETLIS TEXTIL used GSP+ benefits to enter EU textile markets; and SIRDARYO MEGA LUKS obtained ISO certification to broaden regional sales. The findings point to strengthened quality infrastructure, standardization, and targeted firm‑level support as the key drivers of accelerated export growth and improved market diversification.

Local Coverage: uza.uz

From daily brief: 2026-01-10

8. Regulatory and Market Shakeout Pushes Multiple Brands Out of Uzbekistan in 2025

In 2025 Uzbekistan saw a notable regulatory and market-driven consolidation as multiple international and regional brands curtailed operations or exited outright. Authorities blocked e-commerce platform Temu’s website under a 2018 Cabinet resolution amid alleged breaches of registration, tax and fiscal integration rules (apps remain intermittently accessible). The Central Bank revoked Eurasian Bank’s licence on August 27 for failing to meet minimum capital and other legal requirements. In aviation, low-cost carrier Wizz Air suspended Abu Dhabi routes — including services to Tashkent and Samarkand — from September 1, citing engine issues, constrained airspace and weak economics.

Commercial closures and insolvencies compounded the shakeout: retailer Humans MCHJ was declared bankrupt in October with court-ordered collections exceeding 429 billion soums; Ocean Basket shut its Tashkent outlet from November 1, citing strategy and market conditions; and Kazakhstan’s Magnum wound down six Tashkent stores after abandoning earlier expansion plans. Collectively these moves signal tighter regulatory enforcement, liquidity and compliance pressures in Uzbekistan’s financial and retail sectors and rising operational risks for foreign entrants.

Local Coverage: anhor.uz

From daily brief: 2026-01-08

9. Revised ‘Uzbekistan–2030’ Strategy Moves to Public Consultation with New Digital Accountability Tools

Uzbekistan has opened its revised “Uzbekistan–2030” strategy for nationwide public consultation, proposing stronger targets, digitized accountability and a sharper policy focus to manage market volatility, supply‑chain disruption, energy transition and rapid population growth (projected 41 million by 2030). Officials tout recent gains—poverty down from 11% to 6.8%, GDP up from $107.5bn to $140bn, foreign investment from $17.1bn to $42bn, and unemployment from 6.8% to 4.9%—and plan a new dashboard linking performance indicators to the annual consolidated budget plus a “MyStrategy‑2030” mobile app to let citizens monitor reforms and submit proposals.

Key shifts include raising the 2030 GDP ambition from $160bn to $240bn (Legislative Chamber member Otabek Musurmonov said reforms could reach the prior $160bn target as early as 2026), and prioritizing the digital economy, AI, cybersecurity, housing, jobs and services. The update emphasizes measurable targets, clear institutional responsibility, disclosed funding and full digitization of monitoring to improve transparency and execution—moves that increase both potential upside and execution risk, requiring sustained macro‑fiscal discipline and structural reform momentum.

Local Coverage: uza.uz

From daily briefs: 2026-01-10, 2026-01-11, 2026-01-14

10. Customs Reforms to Ease Clearance and Payment Terms for Traders Starting 2026

Uzbekistan will overhaul its customs procedures under a presidential decree announced this month to digitize control and clearance, simplify fees and collateral, and speed border processing with the goal of boosting external trade. Key measures taking effect in 2026 include allowing pre-arrival declarations and release for free circulation at border posts from March 1, 2026 (with a 20% reduction in the related customs fee and an interest-free 14-day deferred payment window), and permitting deferral or installment payment of duties for up to 120 days from April 1, 2026, with lower collateral for low‑risk operators. From January 1, 2026, certain conformity‑assessment constraints will be abolished to ease certification.

Authorities aim to double at‑the‑border export/import clearances, raise deferred‑payment releases by 1.5× and expand the authorized economic operator (AEO) program to more than 200 firms. Targets include increasing automatic declaration processing from 19% to 30%, halving declaration times, and improving inspection effectiveness from 12% to 17%. Officials and entrepreneurs have already identified operational issues for follow‑up; policymakers expect the reforms to reduce logistics costs, enhance competitiveness in the consumer market and lower financial burdens on traders.

Local Coverage: uza.uz

From daily briefs: 2026-01-09, 2026-01-10

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.