AGP Executive Report

Uzbek-Kyrgyz Alliance Talks: President Shavkat Mirziyoyev met Kyrgyz leader Sadyr Japarov in Cholpon-Ata, with both sides signing a Treaty on Allied Relations and creating a Supreme Interstate Council to implement agreements. Border & Trade Boost: Kyrgyzstan will raise Kyrgyz-Uzbek border checkpoints from 15 to 30, aiming to ease travel and expand trade, transport logistics and people-to-people ties; leaders also pushed a target of $2bn in bilateral trade, calling it “not the limit.” Mega Projects in Focus: The talks highlighted the Kambarata HPP-1 and the China–Kyrgyzstan–Uzbekistan railway as strategic “projects of the century,” alongside broader industrial cooperation. Higher Education Link-Up: A Kyrgyz-Uzbek forum of rectors began in Issyk-Kul to expand academic integration, science cooperation and university-business ties, including digital transformation and AI. Regional Trade Snapshot: Russia–Uzbekistan trade hit $7bn in 1H 2026 (+15.7%); Uzbekistan exports to Russia rose to $2.37bn while imports climbed to $4.64bn. Aviation Connectivity: FlyOne Armenia launched direct Tashkent–Yerevan charter flights twice weekly, adding to growing air links between the two markets. Uzbek Economy Signals: CERR reported Uzbekistan’s automotive market sales topped 80,200 units in June (+18% vs May), with passenger car sales up 14%.

Central Banking & Payments: Uzbekistan’s Central Bank says banks are negotiating a switch for Zolotaya Korona after EU sanctions hit the service’s correspondent bank, with a new operator expected to be in place within a week so transfers keep running. SME Digital Banking: TBC Uzbekistan rolled out fully digital payroll in TBC Biznes, letting SMEs pay salaries online to employees’ TBC Salom cards 24/7 with no extra transaction fees, as the platform tops 30,000 entrepreneurs and raises its credit ceiling to 600 million soums. Labor Market: Uzbekistan’s average monthly nominal wage rose 18.4% year-on-year to 7.09 million soums in 1H26, with Tashkent leading at 12.01 million. Trade & Agriculture: Uzbekistan pledged to import 100,000 tonnes of Afghan cotton and expand fertiliser, seeds, and transport cooperation after a Kabul visit by Deputy PM Jamshid Khojaev. Crypto Policy: Uzbekistan launched the Beshkala Mining Valley tax-free crypto mining zone across Karakalpakstan, offering licensed miners power options and incentives through 2035 under state rules. Regional Business Links: Kyrgyzstan is seeking stable long-term mineral fertiliser supplies from Uzbekistan ahead of the Kyrgyz-Uzbek business forum. Wages & Business Sentiment: CERR reported June’s Uzbekistan business climate index at 58 points, with expectations staying high and current conditions improving.

Wages & Jobs: Uzbekistan’s average monthly nominal accrued wage rose 18.4% year-on-year to UZS 7.09mn in 1H 2026, with Tashkent leading (UZS 12.01mn) and Kashkadarya lowest (UZS 4.86mn), while banking and finance paid the most. Crypto Policy: Uzbekistan launched the Beshkala Mining Valley in Karakalpakstan, a tax-incentivized, state-licensed crypto mining zone running through 2035, allowing grid, renewables and hydrogen power and requiring crypto sale proceeds to be kept in Uzbek banks. Energy Governance: President Mirziyoyev dismissed the energy minister over fuel-and-power reliability failures and appointed Sherzod Khodjaev, after reports of thousands of grid outages in June–July. Trade & Connectivity: Uzbekistan pledged to buy 100,000 tonnes of Afghan cotton and expand transport and investment links, while Afghan and Uzbek firms signed 25 deals worth $50m in Mazar-i-Sharif. Regional Business: A Kyrgyz-Uzbek business forum in Bishkek focused on industrial cooperation, joint ventures, agro-processing and pharmaceutical localization. Research & Heritage: New findings suggest silk production in southern Uzbekistan dates to around 2000 BCE, and UNESCO added multiple new world heritage sites globally, including in North Africa and the Middle East.

Energy shake-up: Uzbek President Shavkat Mirziyoyev dismissed Energy Minister Jurabek Mirzamakhmudov after major power reliability failures, appointing Sherzod Khodjaev as the new energy minister. Cross-border trade & logistics: Azerbaijan, Turkmenistan and Uzbekistan have started using the eTIR digital transit system, completing the first fully paperless shipment under the Middle Corridor. Uzbekistan–Kyrgyzstan business push: A Kyrgyz-Uzbek forum in Bishkek focused on industrial cooperation, joint ventures and pharma/agro projects; Uzbekistan’s minister said about 450 enterprises with Uzbek capital operate in Kyrgyzstan. Investment facilitation: Kyrgyzstan launched the “AIS Investments” digital platform to support projects via a one-stop approach, including an AI-enabled investment portal and map. Crypto policy: Uzbekistan approved a tax-free crypto mining zone, the Besqala Mining Valley, covering Karakalpakstan with zero taxes until 2035 for qualifying residents. Regional connectivity strategy: Uzbekistan is reportedly hedging away from a trans-Afghan corridor by exploring China-based routes to Pakistani ports as security uncertainty persists. Global business services: Uzbekistan hosted the Global Business Services Forum 2026, highlighting AI and BPO growth, with IT Park Uzbekistan reporting $1bn+ in tech services exports. Aral Sea climate impact: A study says the dried Aral Sea has released about 825 million tons of carbon dioxide since 1960, underscoring the economic stakes of environmental repair.

SCO Diplomacy & Business Outlook: China’s Wang Yi told SCO foreign ministers in Cholpon-Ata that the bloc’s 25-year “Shanghai Spirit” has moved cooperation into green industry, digital economy, energy and AI, with hundreds of projects already underway. Uzbek-Kyrgyz Trade Push: Uzbekistan’s Laziz Kudratov said about 450 Uzbek-capital enterprises operate in Kyrgyzstan, while 362 Kyrgyz-participated firms are registered in Uzbekistan, with joint work expanding in autos, textiles, medicine and agro. Cross-Border Logistics Upgrade: A new Kyrgyz-Uzbek trade and logistics complex at the border is finished and could become a multifunctional trade zone to speed up sales first, then production and joint ventures. Kyrgyz-Uzbek Development Fund: The Uzbek-Kyrgyz Development Fund backed 37 projects worth over $100m, and plans more financing in national currencies to cut currency risk. Crypto Policy: Uzbekistan approved rules for the Besqala Mining Valley crypto mining zone in Karakalpakstan, offering tax exemptions for residents until 2035 under a tightly controlled, traceable model. AI for Good: The ITU launched an “AI for Good Lab” in Geneva to help developing economies scale responsible AI via policy support, skills and public AI infrastructure. Global Business Services Forum: Tashkent hosted the Global Business Services Forum 2026, highlighting Uzbekistan’s push to grow AI-enabled BPO and tech exports beyond $1bn. Middle Corridor Connectivity: eTIR began fully digital operations across the Caspian Sea for Azerbaijan–Turkmenistan–Uzbekistan, aiming to reduce a key bottleneck on the China–Europe route. Saudi Healthcare Ties: Saudi Health Minister Fahad AlJalajel met Uzbek officials to expand cooperation in virtual care, health insurance, digital transformation and workforce development, including the Fergana Hospital project. Regional Energy Deals: Masdar and Montenegro’s EPCG signed agreements for solar and pumped hydro storage, positioning Montenegro as a renewable export gateway—relevant for investors watching Central Asia’s power trade ambitions.

Energy Sector Overhaul: President Shavkat Mirziyoyev ordered tighter management and accountability in Uzbekistan’s fuel and power sector, saying the issue is not financing but system discipline and local oversight; the review cited thousands of grid failures in June–July that left some regions without power for 8–10 hours, and led to the dismissal of the energy minister and the head of Regional Electric Networks. Energy Leadership Change: Sherzod Khodjaev was appointed Uzbekistan’s new energy minister, replacing Jurabek Mirzamakhmudov, as the government pushes reforms to stabilize electricity and gas supply. Afghanistan Trade Push: Uzbekistan and Afghanistan’s private sectors signed 22 trade agreements worth over $200m at a Kabul business forum, targeting annual bilateral trade of $5bn; the deals span paper, petroleum, food and edible oil, logistics, construction and solar, with Uzbekistan also set to buy more Afghan cotton. Cross-Border Logistics Upgrade: eTIR began fully digital operations across the Caspian Sea, linking Azerbaijan–Turkmenistan–Uzbekistan under one procedure to speed and secure Middle Corridor shipments. Islamic Finance Step: Uzbekistan approved licensing rules for Islamic banking and established an Islamic Finance Council as the new banking framework takes effect. Digital Market Expansion: TBC Bank Group completed its majority acquisition of OLX Uzbekistan, expanding the reach of the country’s leading online classifieds platform. Healthcare Investment Link: Saudi Arabia’s health minister met Uzbekistan’s deputy prime minister to deepen cooperation, including progress on the Fergana Hospital project with Saudi participation. Regional Diplomacy: Uzbekistan’s new ambassador to Belarus presented credentials as both sides discussed implementing joint projects and a 2026–2030 cooperation roadmap.

Afghanistan-Uzbek Trade Push: Afghan and Uzbek officials signed 22 trade MoUs worth over $200m at an Afghan-Uzbek Business Forum in Kabul, targeting $5bn in bilateral trade; talks also covered transit, agriculture and investment, with Uzbekistan ready to buy an additional 100,000 tonnes of Afghan cotton after a trial export of 10,000 tonnes. Banking & Digital Commerce: TBC Bank Group completed its majority-stake acquisition of OLX Uzbekistan, expanding its digital footprint in one of the country’s most visited classifieds platforms with 5m+ monthly active users. Education for AI Talent: Uzbekistan and Japan agreed to launch a new Uzbek-Japanese University in Tashkent under the University of Tsukuba, with English-taught master’s programs in AI, digital transformation and business administration starting in 2028-29. Regional Economic Coordination: Kazakhstan and Uzbekistan launched a Council of Regional Leaders in Aktau to boost trade, investment and transport links, aiming to support a $10bn bilateral trade target. Energy Finance Watch: CATL reported a 42% jump in H1 2026 net profit as energy-storage demand strengthened, while Voltalia said it surpassed 2GW of operational solar capacity in H1.

Uzbek-Afghan Trade Boost: Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev led a large delegation of traders and investors to Kabul to expand trade, transit, investment and unlock new projects; officials say bilateral trade has climbed to about $1.6bn, with plans including a $50m zinc ore processing plant in Hairatan and more imports of Afghan meat and cotton. SCO Diplomacy in Kyrgyzstan: China’s Wang Yi met Kyrgyz leaders and foreign minister counterparts ahead of the SCO Bishkek Summit, stressing practical cooperation and support for major infrastructure such as the China–Kyrgyzstan–Uzbekistan railway. Uzbekistan–Kyrgyzstan Value Chains: Coverage highlights deepening economic integration, with trade turnover reaching nearly $1.2bn in 2025 and rising further in Jan–May 2026, as both sides push joint industrial and logistics links. Education & Skills Link: Uzbekistan and Japan agreed to set up a joint university in Tashkent, with master’s programs in AI, digital transformation and business administration, and a preparatory office opening in September. Regional Connectivity Signals: Uzbekistan’s push for more freight capacity and corridor options continues to appear alongside SCO-related coordination, reinforcing the business focus on transport and cross-border trade.

Afghanistan-Uzbekistan Trade Push: Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev led a large delegation to Kabul to speed up investment and trade commitments with the Taliban, with officials citing $1.6bn bilateral trade and plans to expand mining investment, and boost imports of Afghan meat and cotton. Business Forum Momentum: A 300-member Uzbek business delegation is set to meet Afghan traders at an Afghanistan-Uzbekistan Business Forum focused on expanding trade, transit and investment. Healthcare Partnership Upgrade: Uzbekistan and France agreed to deepen cooperation on oncology and trauma care, including a Gustave Roussy Cancer Center branch in Uzbekistan, specialist training in France, diagnostic technology pilots, and work on modern trauma centers in Tashkent resort areas. Regional Connectivity Watch: Talks around the China-Kyrgyzstan-Uzbekistan railway and broader infrastructure cooperation continue to feature in SCO-linked diplomacy, underlining how transport links remain central to Central Asia’s trade plans. Uzbekistan-Kyrgyzstan Value Chains: Coverage highlights growing bilateral trade and industrial cooperation as both countries move toward joint value chains.

Uzbekistan–Kyrgyzstan Trade Push: Bilateral trade is surging as both sides move from “border issues” to joint projects and value chains, with Uzbekistan’s exports to Kyrgyzstan up sharply and 2026 January–May turnover rising fast. SCO Diplomacy with Business Angle: On SCO sidelines in Cholpon-Ata, Pakistan’s Ishaq Dar met Uzbekistan’s Bakhtiyor Saidov and others, reaffirming cooperation on trade, investment, transport and connectivity—aiming to lift mutual trade and keep regional stability on the agenda. China–Kyrgyzstan–Uzbekistan Connectivity: Chinese FM Wang Yi backed implementation of major infrastructure, including the China–Kyrgyzstan–Uzbekistan railway, while Kyrgyz leaders flagged business-friendly conditions and project delivery. Afghanistan Opens a Kabul–Tashkent Deal Track: Uzbekistan’s Deputy PM Jamshid Khodjayev led a 170-trader/investor delegation to Kabul for meetings and a B2B forum focused on trade, transit and investment with the Islamic Emirate. Supply Chain Shock in Kyrgyz Garments: Drone attacks on Russian logistics warehouses hit Kyrgyz garment exporters reliant on Wildberries, with firms reporting multi-million-som losses and renewed pressure on already strained producers.

SCO Diplomacy for Trade: China’s Wang Yi met Kyrgyz FM Jeenbek Kulubaev and also held talks with Uzbek FM Bakhtiyor Saidov, stressing deeper economic cooperation and key connectivity projects like the China–Kyrgyzstan–Uzbekistan railway. Regional Connectivity Push: Pakistan’s Ishaq Dar said Islamabad will host the 2027 SCO Heads of State Council Summit and urged more connectivity and economic cooperation across the bloc. Uzbekistan–Kyrgyzstan Trade Links: Kyrgyzstan’s alcohol trade shows a major gap—imports outstrip exports by 16.2x in Jan–May, with Uzbekistan among key grape wine suppliers. Kazakhstan–Uzbekistan Integration: Kazakhstan and Uzbekistan reviewed delivery of a $7.8bn investment-and-trade roadmap, signed deals worth over KZT80bn, and are driving 80 joint projects worth $1.8bn to lift trade and logistics ties. Afghanistan Business Access: Uzbekistan plans a high-level trade visit to Kabul with 170 traders and investors, aiming for B2B talks and new agreements. Gold Price Impact in Uzbekistan: A gold boom is boosting incomes for small miners but also raising inflation and debt concerns, with worries about dependence on a single commodity.

Uzbek Economy Watch: Uzbekistan’s economy grew 8.5% in H1 2026, with services up 16.9% and construction up 13.8%, while investment hit about €24.6bn and exports about €12.7bn, as credit-rating upgrades signal rising investor confidence. Kazakhstan–Uzbekistan Trade Push: Kazakhstan and Uzbekistan signed deals worth over 80bn tenge (~$146m) in Aktau and reviewed progress on an $7.8bn “Investments and Trade Road Map,” with bilateral trade at $4.8bn in 2025 and +37% to $2.3bn in Jan–May 2026; leaders also set a goal to lift trade to $10bn via a new Council of Heads of Regions. Afghanistan Business Link: Kabul will host a high-level Uzbek trade delegation led by Deputy Prime Minister Jamshid Khodjaev, bringing 170 traders and investors for B2B talks and expected agreement signings. Transit & Logistics: Uzbekistan and Pakistan plan to integrate a China-linked transit corridor through Pakistan’s Sost Dry Port, aiming to diversify away from disrupted routes. Energy & Capital Flows: A Henderson Land family office says it is fast-tracking Central Asia green energy plans, including SAF and smart storage, targeting over $1bn in investments. Gold Price Impact: A gold boom around $4,000/oz is boosting incomes in Uzbekistan’s small mines but raising inflation, debt, and dependence concerns.

Uzbek Economy Watch: Uzbekistan’s economy grew 8.5% in H1 2026, driven by services (+16.9%) and investment (about €24.6bn), while construction (+13.8%) and industry (+8%) also expanded; officials also cited major sovereign credit upgrades (Moody’s Ba3→Ba2; Fitch outlook turned positive). Rail Freight Crunch: President Mirziyoyev ordered a 10,000-wagon plan to ease rolling-stock shortages and pushed for $200m World Bank financing for railway infrastructure. Digital Finance: Uzum was named among the world’s top fintech companies by CNBC and Statista for the first time, landing in the neobanking category as it scales digital payments and banking-like services. Cross-Border Payments: Korona Pay suspended Russia→Kazakhstan and Russia→Georgia transfers, while keeping Russia→Uzbekistan, Türkiye, Kyrgyzstan and Azerbaijan routes active. Transport Connectivity: Centrum Air will launch Tashkent–Karachi direct flights from Sept 3 (twice weekly), boosting business and tourism links with Pakistan. Regional Trade Ties: Kazakhstan and Uzbekistan discussed expanding trade and investment, citing $4.8bn bilateral trade in 2025 and a 37% jump in Jan–May 2026 to $2.3bn.

Uzbek Fintech Spotlight: Uzum has entered CNBC-Statista’s 2026 ranking of the world’s top fintech companies, recognized in the neobanking category—an “ecosystem” push that comes as millions in Uzbekistan increasingly use online payments and banking services. Energy & Courts: In Tashkent, the trial of former Uzbekneftegaz boss Bahodir Siddiqov and others opens amid a wider crackdown on alleged embezzlement and weak procurement controls, with attention on how state energy contracting is being reshuffled. Trade & Compliance: Russia’s Rosselkhoznadzor restricts imports of fruits and vegetables from five Uzbek exporters over phytosanitary violations, affecting items like cabbage, onions, grapes, tomatoes and more. Regional Water Security: The World Bank approved a $20m grant to boost cross-border water cooperation in Central Asia via CAWEC, targeting better Amu Darya and Syr Darya basin management through stronger institutions and data sharing. SCO Diplomacy: Uzbek FM Bakhtiyor Saidov met China’s Wang Yi ahead of SCO foreign ministers’ meetings in Kyrgyzstan, underscoring intensifying China–Uzbek ties as the bloc weighs regional security and cooperation. Labor Migration Deal: Bulgaria and Uzbekistan move toward a framework to regulate labor migration, allowing Uzbek workers to be hired without separate work permits for up to a year (extendable), aiming to fill Bulgarian labor shortages.

SCO Diplomacy: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar will lead the country’s delegation at the SCO Council of Foreign Ministers meeting in Cholpon-Ata, Kyrgyzstan on July 23–24, holding bilateral talks with SCO counterparts on regional security and connectivity. Water & Regional Trade: The World Bank approved a $20m grant to strengthen transboundary water cooperation in Central Asia, targeting better management of the Amu Darya and Syr Darya basins via improved water accounting and data sharing through EC IFAS. Central Asia Business Momentum: Uzbekistan’s regional business activity stayed upbeat in June, with tax revenues up 45.6% year-on-year, customs payments up 19.2%, exports up 27.6%, and bank lending up 5%, led by gains in Namangan, Navoi, Samarkand and Tashkent. FDI Snapshot: UNCTAD data shows Central Asia’s FDI stock rose 3.6% to $235.5bn in 2025, with Kazakhstan holding about two-thirds, while Uzbekistan recorded the strongest annual increase. Cross-border Logistics: Pakistan and Uzbekistan agreed in principle to reroute some transit trade through China, aiming to keep cargo moving despite security disruptions on older routes. Islamic Finance Move: Uzbekistan approved Islamic banking licensing rules and established an Islamic Finance Council as the new banking law takes effect. Uzbekistan-Afghanistan Rail Talks: Afghan and Uzbek officials discussed expanding railway cooperation, including feasibility work for the Trans-Afghan railway and related logistics upgrades. Sustainable Fuel Export Plan: Allied Biofuels outlined planned SAF/e-SAF export routes from Uzbekistan to Europe and the UAE via rail and sea corridors, under a logistics agreement signed in Tashkent.

Middle Corridor Security Gap: Kazakhstan and Georgia are testing an e-permit system for international road freight, while a wider push for a single transit document across the Middle Corridor continues—yet analysts flag a missing security component as the route gains strategic weight amid regional tensions. Lab Migration Deal: Uzbekistan and Bulgaria approved an agreement to regulate labour migration, allowing Uzbek workers to be hired in Bulgaria without separate work permits for up to a year (extendable), with seasonal worker rules also set. Afghan-Trans Railway Talks: Afghanistan and Uzbekistan reviewed feasibility work for the Trans-Afghan railway and the Herat–Mazar-e-Sharif line, aiming to boost freight capacity and create a shorter Central-to-South Asia trade corridor. Uzbekistan–China Trade Scale-Up: New reporting says Chinese direct investment in Uzbekistan has topped $8bn this year, with bilateral trade above $6bn and nearly 6,000 enterprises with Chinese capital. Islamic Finance Push: Uzbekistan approved licensing rules and established an Islamic Finance Council as new banking law provisions take effect. Digital Finance Spotlight: Uzum was named among the world’s top fintech companies (CNBC/Statista) in “neobanking,” reflecting Uzbekistan’s expanding digital payments ecosystem. Energy & Logistics for SAF: Allied Biofuels outlined planned SAF/e-SAF export routes from Uzbekistan to Europe and the UAE via rail and sea corridors, with supplies targeted from 2030. Diplomatic Shake-Up: President Mirziyoyev dismissed Uzbekistan’s ambassador to Belarus over weak investment and trade efforts.