AGP Executive Report

Nuclear Power Rollout: Uzbekistan has officially started construction of its first nuclear power plant, with Mirziyoyev and Putin authorizing the first power unit at the Farish site in Jizzakh; the milestone includes first concrete for an SMR unit and is framed as an IAEA-supervised, standards-based project led by Rosatom. Aviation & Carbon Markets: IATA warned of a crippling backlog of 18,000 undelivered aircraft and projected airline profits could halve in 2026 as jet fuel costs surge; at the same time, IATA highlighted Uzbekistan as a top supplier of CORSIA-eligible aviation carbon credits. Construction Reform: From 1 July, Uzbekistan will simplify construction services via “one application, one payment” for utility connections and unify architectural/urban planning assignments; a risk scoring system for developers is also out for public comment. Finance for Industry: Uzbekistan’s factoring market grew 75% in Q1 2026 to 2.3 trillion soums, showing banks dominating and businesses leaning on working-capital tools. Tech & Investment Links: A Hong Kong delegation visited IT Park Uzbekistan to explore fintech and digital cooperation, while Uzbekistan also lined up major industry forums with India and South Korea and discussed SCO industrial collaboration.

Nuclear Power Rollout: Uzbekistan has started construction of its first civilian nuclear power plant, with Mirziyoyev and Putin launching the first unit via video link; the project is pegged at about $9.5bn and will follow IAEA standards. Housing & Construction Safety: A new decree bans structural and layout changes in multi-family buildings older than 50 years, while pushing contractors to fix defects during warranty periods and face penalties that can hurt their ratings. Inflation Watch: Uzbekistan’s annual consumer inflation eased to 5.5% in May (from 7% in April), with food broadly flat and services/non-food goods rising modestly. Digital Trade Boost: Wildberries sales of Uzbek goods are set to jump 50% in 2026, with turnover forecast to top $2bn, as e-commerce helps small manufacturers scale across Eurasia. Regional Security: Uzbekistan is among SCO partners discussing cooperation on illegal immigration, narcotics control, and counter-terror efforts linked to Afghanistan. Bilateral Business Push: Cyprus’ FM Kombos pledged to deepen trade, investment, transport and logistics ties with Uzbekistan after meetings in Tashkent.

Nuclear Power Push: Uzbekistan has officially started construction of its first civilian nuclear power plant, with a launch order jointly issued by President Shavkat Mirziyoyev and Russia’s Vladimir Putin via video link; the project is budgeted at about $9.5bn and is expected to generate roughly 17bn kWh annually (Jizzakh region), built to IAEA standards. Housing Safety Rules: Mirziyoyev signed new regulations banning structural and layout changes inside multi-family apartment buildings older than 50 years, while shifting warranty-era defect responsibility back to contractors for newer projects. Inflation Watch: Uzbekistan’s annual consumer inflation slowed to 5.5% in May 2026 (from 8.7% a year earlier), with food prices flat and services/non-food goods edging up. Digital Trade Growth: Wildberries sales of Uzbek-made goods are projected to rise 50% in 2026 to over $2bn, driven by easier cross-border access for small manufacturers. Consumer Market: Meat prices and local transport costs continued to creep up despite easing overall inflation.

Nuclear Power Rollout: Uzbekistan has officially started construction of its first integrated nuclear power plant in the Jizzakh region, with the project cost set at about US$9.5 billion and an expected output of roughly 17 billion kWh per year (up to 15% of national demand), while the IAEA says it will support the project at every stage. Energy & Industry Policy: Uzbekistan also highlighted renewables momentum, with solar and wind plants preventing 2.6 million tons of emissions in Jan–May 2026, alongside broader moves like energy-efficiency mandates for public buildings. Digital Markets: Uzbekistan’s competition regulator gave preliminary approval for Tapuz Limited’s planned acquisition of OLX Classifieds, but only under conditions aimed at protecting competition and limiting data and platform influence. Transport & Urban Mobility: The Cabinet extended a zero recycling fee for imported buses (including electric and trolleybuses) until end-2027 and introduced a new exit-based fare payment system for certain bus routes. Regional Connectivity: At the Termez Dialogue, Uzbekistan discussed advancing Afghanistan-linked transit plans, including feasibility work for a strategic rail route.

Nuclear Power Push: Uzbekistan officially started construction of its first nuclear power plant in Jizzakh, with Mirziyoyev and Putin ordering work to begin via video link; the integrated project is pegged at a US$9.5bn base cost and combines two VVER-1000 units with two RITM-200N small modular reactors, while the IAEA pledged support at every stage and issued a construction license for the RITM-200N unit. Energy & Industry: The Ministry of Energy said solar and wind plants prevented 2.6m tons of emissions and generated 4.66bn kWh in Jan–May; Uzbekistan also reported inflation easing to 5.5% in May. Transport Policy: The Cabinet extended a zero recycling fee for imported buses, electric buses and trolleybuses until end-2027 and rolled out a new exit-based fare payment system from Sept 2026 with contactless and mobile options. Digital & Competition: Uzbekistan’s regulator gave preliminary approval for Tapuz Limited’s planned OLX acquisition, but imposed conditions to prevent dominance abuses; Uzbekistan also signed an AI-based deal with Italy to modernize environmental impact assessments. Regional Business Links: Ferghana officials eye new chemical projects after a Chirchiq technopark visit, while Ferghana and Germany expanded vocational education cooperation. Diplomacy & Trade: Mirziyoyev told SPIEF that Uzbekistan-Russia trade has topped US$13bn and proposed deeper industrial, digital and logistics integration; Belgium announced it will open an embassy in Tashkent. Security & Crime: U.S. prosecutors charged Uzbek-born suspects in a US$4.5m cargo theft ring involving freight fraud and illegal distribution.

Nuclear Power Rollout: Russia and Uzbekistan officially kicked off construction of Uzbekistan’s first nuclear power plant, with Putin and Mirziyoyev launching the first reactor unit and the project using Rosatom’s RITM–200N design under IAEA supervision. Energy & Grid Reliability: A technical fault at Tashkent’s thermal power plant triggered a temporary blackout across five districts and briefly disrupted metro lines before power was fully restored. Trade Flows: Uzbekistan’s foreign trade hit $26.3bn in Q1 2026, with imports rising sharply on machinery and industrial inputs even as exports fell. Logistics Investment: Oman’s Asyad Group agreed to acquire controlling stakes in key Uzbek logistics platforms, aiming to link Omani ports with Central Asian rail/road and warehousing. Agriculture Value Chains: ICBA and Uzbekistan’s innovation agency launched a Farmers’ Accelerator program in Karakalpakstan to help farmers commercialize crop value chains. Regional Diplomacy: Uzbekistan and Kyrgyzstan reaffirmed strategic partnership after Kyrgyzstan’s UN Security Council election; leaders also discussed cooperation across transport, energy, and culture. Mobility Tech: Kyivstar’s Uklon signed to acquire Ukraine’s E-wings to expand its electric scooter micromobility offering. Environment & Health: Uzbekistan hosted GEF-related discussions, while One Health progress in Central Asia was reviewed with the World Bank and regional health, agriculture, and environment ministries.

Nuclear Energy Push: IAEA chief Rafael Grossi met Uzbekistan officials in Tashkent, reaffirming support as construction of the Jizzakh nuclear power plant kicks off—plus Mirziyoyev heads to St. Petersburg to help launch the first reactor and discuss trade and investment. Logistics Deal: Oman’s Asyad Group closed a controlling-stake acquisition in Uzbekistan logistics platforms (Universal Logistics Services and Highway Logistics Center), aiming to move more cargo across China–Europe–Middle East corridors. Green Food & Land: At GEF-8 in Samarkand, Mirziyoyev backed regenerative, wheat-focused landscape transformation and lifecycle chemical management, while youth leaders urged agriculture as a serious investment path for sustainable food systems. Aquaculture Upgrade: Uzbekistan and South Korea launched a new phase of aquaculture cooperation, with Jeju partners sharing marine farming, feed, and disease-control know-how. Industrial Policy: Tashkent introduced stricter environmental and safety rules for construction sites, and Uzbekistan plans to launch production of at least 100 homecare chemical brands. Energy Reliability: A technical fault at Tashkent TPS caused a brief blackout and metro disruptions, with power restored within hours. Finance Access: Uzbekistan’s microfinance sector doubled lending to 12.2 trillion soums in Q1 2026. Regional Connectivity: Afghanistan and Uzbekistan used the Termez Dialogue to push transit and trade cooperation, including removing barriers.

Energy & Power Output: Uzbekistan generated 37.6842 billion kWh of electricity in Jan–May 2026, up 5.8% year-on-year, while May output rose 3.7% to 7.0157 billion kWh. Connectivity & Diplomacy: Tashkent hosted the second Termez Dialogue on Central and South Asia connectivity, framing it as a practical trust-building platform with four thematic tracks. Telecom Investment: The planned sale of state mobile operator MobiUz to a US-led consortium is being pitched as a Central Asia investment signal, with a promised extra $500m for infrastructure. Governance for Construction Transparency: A draft decree would expand open-data disclosure, including monthly reviews of construction pre-projects and projects and monthly permit/commissioning information. Real Estate Administration: New rules set procedures for technical inventory of real estate, including electronic cadastral files and an appeal route. Trade & Finance Links: Uzbekistan and Hong Kong agreed to expand cooperation across investment, finance, AI, and transport, including a push toward visa-free travel. Credit Outlook: Fitch upgraded Uzbekistan’s outlook to “positive,” citing reforms, fiscal improvement, and stronger reserves.

Credit & Reform: Fitch upgraded Uzbekistan’s outlook to positive, keeping the BB rating, citing structural reforms, tighter fiscal discipline, and rising reserves (to $66bn end-2025, projected $71bn in 2026). Construction Compliance: Tashkent rolled out stricter environmental and safety rules for about 1,700 active construction sites, including dust control, site “passports,” and real-time monitoring. Competition Watch: Uzbekistan’s competition authority opened cases over violations worth over 8bn soums, including coal and flour sold outside required exchange-based trading. Energy Transition: Renewable capacity hit 8 GW (about 30% of generation), with solar/wind at 5.6 GW and hydropower 2.4 GW. Private Investment: IFC committed up to $10m to Highland Central Asia Fund II to back SMEs across healthcare, logistics, food production and more. Food Security: CIMMYT and Uzbekistan launched the AWIC-UZ wheat innovation bridge phase to tackle rust, soil diseases and Fusarium risks. Trade & Logistics: Asyad completed a controlling-stake acquisition in Uzbekistan logistics assets to strengthen multimodal trade corridors. Tourism Push: World Bank talks focused on expanding Uzbekistan’s tourism infrastructure, while Rotana explored hotel expansion.

Nature4Health: Uzbekistan has entered the Nature4Health scoping phase (Phase II) as a country partner, aiming to strengthen One Health and primary pandemic prevention, with a focus on Karakalpakstan’s desertification, biodiversity loss and Aral Sea impacts. Creative Economy Push: President Mirziyoyev signed a decree creating the “Investments in Creativity” state fund with 200 billion soums annually, plus broad tax breaks for film, TV, theatres and cultural education, alongside targets to boost international competition participation and winners. Film Industry Overhaul: Uzbekistan is reforming film governance by abolishing Soviet-style censorship bodies and shifting script/project review to professional expert groups, with a goal of 5–10 festival-competitive films per year. Green Expo & CAREC Work: Eco Expo Central Asia 2026 opened in Samarkand, alongside the 8th GEF Assembly; CAREC delegates are promoting regional ecosystem restoration and water-land nexus initiatives. Energy & Infrastructure: Uzbekistan’s renewable sector gets fresh backing as Saudi Arabia and the UAE are named key investor-partners; meanwhile, ADB-supported road upgrades in Surkhandarya will reconstruct 111 km and improve links to Tashkent. Digital Logistics & Telecom: Uzbekistan and Finland discussed digital transport logistics and smart mobility data platforms, while Omnitele talks focused on broadband and 5G expansion.

Uzbekistan–Russia Energy Push: President Shavkat Mirziyoyev will visit Russia on 4–5 June for SPIEF, including a meeting with Vladimir Putin and participation in the launch of construction for Uzbekistan’s first integrated nuclear power plant. Renewables Investment: Uzbekistan’s Energy Minister says Saudi Arabia and the UAE have become key investor-partners in renewable energy projects, while Turkey’s early PPP support helped open the door for wider participation. Green Trade & Industry Events: Eco Expo Central Asia 2026 opened in Samarkand, alongside a biosafety initiative aligned with the Cartagena Protocol. Digital Transport & Telecom: Uzbekistan and Finland discussed digital transport logistics and real-time data platforms; Omnitele talks focused on broadband expansion and 5G rollout. Chemical & Packaging Manufacturing: Mirziyoyev reviewed BCG Group OZ in Chirchik and visited Kmita Polymers, both aimed at import substitution and export growth. SME Support: World Bank talks centered on SME financing, export readiness, and job creation coordination. Regional Connectivity: A seminar in Beijing reviewed the China–Kyrgyzstan–Uzbekistan railway project’s management and cross-border standards. Business & Agriculture Exports: Ferghana opened a trade house in Kuala Lumpur to boost regional fruit and consumer goods sales.

Culture & Creative Economy: President Mirziyoyev unveiled a broad support package for Uzbekistan’s culture and arts sector, including VAT and multiple tax exemptions for private theatres, film and children’s content producers, and arts education, plus state reimbursement of up to 20% of concert/event costs from July 1 and a voucher scheme for 500,000 public servants and students, extending to 100,000 low-income families and children with disabilities. Energy Reliability: Uzbekistan’s Ministry of Energy says power outages are being tackled through both grid upgrades and more rational electricity use; meanwhile, Tashkent saw temporary disruptions after a fault and transformer fire at the 110 kV Vystavochnaya substation, with restoration work underway. Trade & Investment Links: Qatar and Uzbekistan chambers met in Tashkent to activate their Joint Business Council and expand private-sector cooperation, including halal industry opportunities. Regional Connectivity: Uzbekistan will host the 2nd Termez Dialogue on connectivity June 4–6, focusing on regional connectivity, security, climate change, and cooperation with Afghanistan. Oil & Gas Project Push: Uzbekneftegaz and BP discussed accelerating the Ustyurt project roadmap through 2029, including potential drilling start by end-2027 and plans for digital seismic analysis. Agribusiness Exports: Ferghana region’s first air shipments of apricots and peaches reached Malaysia, alongside cherries, under new trade arrangements. Governance & Compliance: Andijan authorities uncovered a major tax cashback fraud scheme using fake invoices and shell firms, with UZS 35.1 billion embezzled from the state budget.

Culture & Creative Economy: Uzbekistan will expand tax incentives for culture and arts groups, including VAT, profit, turnover, land, property and personal income tax exemptions, plus state reimbursement of up to 20% of regional concert/event costs from 1 July and free vouchers for 500,000 people. Film Industry Overhaul: The government will reform film governance by ending several state bodies, changing state-order financing rules (up to 30% for promotion/advertising), exempting foreign film producers from taxes, and boosting incentives for state-commissioned film revenues. Power Reliability in Tashkent: Electricity is being restored after faults at the Vystavochnaya 110/10/6 kV substation, with temporary outages reported in Shaykhantahur and Almazar; separate reports also cite a transformer fire causing a brief outage. Telecom Expansion: Uzbekistan’s digital technologies ministry is in talks with Finnish Omnitele on broadband and large-scale 5G deployment. Oil & Gas Project Timing: Uzbekneftegaz and BP discussed accelerating the Ustyurt project roadmap through 2029, including a potential drilling start by end-2027. Agri-Exports to Asia: Ferghana region secured Malaysia and Japan market momentum, including first air shipments of apricots and peaches to Malaysia and new Japan deals for IT and agricultural supply. Business Climate Snapshot: Active enterprises near 581,000, with trade leading by number of entities and industry and construction also showing strong activity. Energy Transition Push: Uzbekistan is expanding green energy integration as battery storage capacity reaches 1,545 MW, while energy officials highlight regional cooperation on a Central Asia–Azerbaijan Green Energy Corridor.

Energy & Finance: Uzbekistan’s state debt climbed to $47bn by Q1 2026, up $4.4bn year-on-year, with external borrowing driving growth and funds earmarked for the fuel-and-energy sector, agriculture/water, transport, housing, and even chemicals and entrepreneurship. Grid Modernization: Battery energy storage in Uzbekistan now totals 1,545 MW (with 2,600 MWh capacity), helping cover about one-eighth of peak evening demand as renewables expand. Power Costs: The government says electricity and gas tariff rises are tied to inflation indexation and infrastructure modernization, with an average increase of around 10%. Energy Supply Risks: Russia has banned aviation fuel exports until Nov. 30, a move that could affect rail-linked fuel flows to Central Asia, including Uzbekistan. Trade & Industry Links: Kazakhstan and Uzbekistan signed a roadmap covering industry, petrochemicals, logistics, metallurgy, agro-industry, tourism, and green energy; Uzbekistan also pushed customs cooperation with the U.S. Agriculture Exports: Fergana’s fruit and agri hub in Japan’s Chiba is nearing completion, aiming to boost shipments to Japan. Environment & Funding: Uzbekistan hosted the 71st GEF Council in Samarkand, with new financing and safeguards focus for biodiversity, climate, and water projects. Digital Adoption: Microsoft data shows Uzbekistan ranks near the bottom on regular AI tool use (7.2% of people), far behind regional leaders.

Energy Pricing & Security: Uzbekistan’s Ministry of Energy says electricity and natural gas tariffs are being indexed mainly to inflation, with average increases around 10%, and argues household prices remain among the lowest globally. Power Storage Push: Uzbekistan’s BESS capacity reached 1,545 MW, covering over 13.5% of evening peak demand, as solar and wind output grows and storage expands. Regional Energy Supply: Uzbekistan tripled Russian liquefied gas imports in early 2026, taking 231,000 tons in Jan–Apr, as overland rail and pipeline routes gain appeal amid Middle East shipping disruptions. Customs & Trade Facilitation: A Uzbekistan Customs Committee delegation held talks in the U.S. to expand cooperation on risk management, anti-smuggling, radiation safety, and modernization of border infrastructure. Industrial Cooperation Roadmap: Uzbekistan and Kazakhstan signed an action plan covering automotive, energy, chemicals, metallurgy, pharma, logistics, construction materials, housing, and agriculture. Environment Finance in Samarkand: The 71st GEF Council meeting in Samarkand approved $144.3m in final GEF-8 funding, including renewable power and storage support for Uzbekistan via blended finance. Creative Economy Incentives: Tashkent unveiled Uzbekistan Creative Park with tax and business support for creative-sector residents under the creative economy law. Culture & Tourism: “Caliph-Stork” premieres at the Uzbek National Puppet Theatre from 1 June, with a modern staging of Wilhelm Hauff’s fairy tale.

Energy Storage Push: Uzbekistan’s BESS capacity has reached 1,545 MW, covering over 13.5% of evening peak demand, as the Ministry of Energy expands storage alongside solar and wind growth. Trade & Industry Roadmaps: Uzbekistan and Kazakhstan signed a practical action roadmap in Astana covering automotive, energy, chemicals, metallurgy, pharma, logistics, construction materials, housing, and agriculture. Customs Cooperation: Uzbekistan and the United States agreed to deepen customs collaboration, including risk analysis, anti-smuggling work, radiation safety, and upgrades for border checkpoints. Agriculture Market Stability: Russia’s Rosselkhoznadzor says it has not imposed bans on Uzbek fruit and vegetable imports, after earlier confusion about temporary limits on specific exporters. Manufacturing Investment: ANDRITZ will supply a diaper production line to ATCO Hygienics in Tashkent, targeting end-2026 commissioning to meet rising hygiene demand in Central Asia. Regional Connectivity: Uzbekistan will host the second Termez Dialogue on connectivity (June 4–6) to advance Central and South Asia integration. SCO Finance Talks: SCO finance ministers and central bank heads met in Bishkek to discuss financial cooperation and priority investment areas like energy, transport, logistics, and green economy.