Uzbekistan Weekly: Uzbekistan launches sweeping 2026 reforms, deepens U.S. ties, reaffirms Russia ties

December 25, 2025 to December 31, 2025

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

1. Sweeping 2026 Reforms Overhaul Taxes, Social Insurance, Governance and Travel Rules

From 1 January 2026 Uzbekistan will implement a broad package of legal and budgetary reforms affecting taxation, social insurance, governance, construction, justice, transport and public services. Key fiscal changes include reallocating VAT receipts into local budgets (5% to Tashkent, 20% to other regions), allowing regions to retain full over‑plan personal income and profit tax receipts and portions of VAT over‑performance (100% in Karakalpakstan, 60% elsewhere), and new limits on second‑tier allocations and minimum cash buffers. Tax policy shifts include market‑value bases for construction and real‑estate taxes, a special regime exempting qualifying foreigners’ foreign‑sourced income, eased rules for residents investing in U.S.-registered companies through Uzbek banks, and caps that limit 2026 household property and non‑agricultural land tax bills to no more than 1.3× their 2025 liabilities.

Social and administrative measures are equally extensive: a State Social Insurance scheme will pay benefits proportionate to contributions and introduce proactive maternity payments; social tax distribution will direct up to 98% of employer contributions for budget entities to the Extra‑Budgetary Pension Fund. Commerce and payments rules require trade and service firms to accept a single bank‑generated QR code and restrict unregistered foreign online platforms after a 30‑day grace period. Governance adjustments expand local leaders’ powers and rotate officials while integrating nine central agencies’ territorial units under selected khokimiyats; economic courts will be consolidated at regional centers. Other notable items include higher mandatory motor third‑party insurance (new A1 category for mopeds/scooters), 30‑day visa‑free entry for U.S. citizens, incentives for greenhouses, sectoral tax cuts (gypsum, cement), digitization measures to reduce bureaucracy, and new public‑service standards (waste billing, cafeteria health standards, face‑recognition at guarded facilities).

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

From daily brief: 2025-12-30

2. G20 Invitation and Trump Call Signal Deepening U.S.–Uzbekistan Partnership

Uzbekistan and the United States are formalizing a deeper strategic and economic partnership as Tashkent moves from episodic engagement to structured cooperation driven by U.S. capital and technology across industry, agriculture, transport and the digital economy. A milestone came in late 2025 when President Donald Trump invited President Shavkat Mirziyoyev to attend the 2026 G20 Summit in Miami as a guest — a signal of growing international trust that positions Uzbekistan to amplify its voice within a forum that covers roughly 85% of global GDP and 75% of world trade.

The leaders’ recent phone call reviewed active bilateral projects (aviation, autos, mining, agriculture, infrastructure, energy, chemicals, ICT) and institutional mechanisms — including a planned U.S.–Uzbekistan Business and Investment Council and a Joint Investment Fund — underscoring U.S. backing for Uzbekistan’s economic reforms and investment-climate improvements. The exchange, plus continued high-level engagement under the “S5+1” format and Mirziyoyev’s mutual invitation for a state visit, signals readiness to expand trade, integrate Uzbekistan into global supply and logistics chains, and coordinate regionally on stability, energy and food security.

Local Coverage: uza.uz, kun.uz, qalampir.uz

From daily briefs: 2025-12-25, 2025-12-26

3. Tashkent Condemns Reported Strike on Putin’s Residence, Reaffirms Strategic Ties with Moscow

Uzbekistan’s President Shavkat Mirziyoyev spoke by phone with Russia’s Vladimir Putin to condemn a reported attempt to strike the Russian president’s Novgorod-region residence and to reaffirm deepening Uzbekistan–Russia strategic and allied ties. The leaders reviewed implementation of high-level agreements, discussed upcoming bilateral events, and exchanged New Year 2026 greetings; Mirziyoyev warned that such attacks threaten stability and efforts toward lasting peace while reiterating support for political-diplomatic solutions to the Ukraine conflict.

The call follows Russian Foreign Minister Sergey Lavrov’s allegation that Ukraine launched 91 long-range UAVs against the Novgorod residence — a claim Kyiv denied and which Russia says caused no damage or casualties — and aligns Tashkent publicly with Moscow on security concerns at a moment when regional partners such as Kazakhstan’s Kassym-Jomart Tokayev have voiced similar caution. The exchange underscores Uzbekistan’s pragmatic balancing of security cooperation with Russia and its stated preference for diplomatic resolution of the war in Ukraine.

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

From daily brief: 2025-12-31

4. Anti-Corruption Overhaul Announced, Judges Dismissed for Wrongful Verdicts, and Budget Changes Kept Confidential

President Shavkat Mirziyoyev announced plans for a new anti-corruption system after receiving reports of ongoing abuses, saying “I’m hearing a lot, and I am forced to create a new system against corruption” (kun.uz). In parallel, the judiciary saw an uncommon purge as judges who issued unlawful rulings were dismissed—an indication of increased accountability within the courts that may strengthen rule-of-law signals to investors and international partners.

At the same time, lawmakers conducted a closed-door session to consider budget amendments reportedly involving billions of dollars, shielding substantive fiscal changes from public view. That opaque handling of major budget revisions raises concerns about transparency and oversight even as anti-corruption and judicial accountability measures are being advanced.

Local Coverage: kun.uz

From daily brief: 2025-12-29

5. President Mirziyoyev to Deliver Annual Address to Parliament and Nation on December 26

President Shavkat Mirziyoyev will deliver his annual Address to the Oliy Majlis and the people of Uzbekistan on December 26 at 11:00 local time; the speech will be broadcast live on National Television and Radio Company channels and streamed on president.uz and the president’s Facebook, Instagram, YouTube, and X accounts. Simultaneous translations will be provided—Uzbek with sign language on “O‘zbekiston,” Russian on “Dunyo bo‘ylab” and “Toshkent,” and English on “Yoshlar”—signaling an emphasis on broad domestic and international accessibility.

Authorities say the address will set near-term strategic priorities and outline the next stage of reforms under the “New Uzbekistan” agenda, identifying key implementation tasks for the coming year. For international professionals, the multilingual, multi-platform coverage and stated reform focus suggest Tashkent intends to clarify policy direction and reassure foreign partners and markets about stability and continuity in Uzbekistan’s economic and governance reforms.

Local Coverage: anhor.uz

From daily brief: 2025-12-26

6. 30-Day Visa-Free Entry for U.S. Citizens to Begin in 2026

Uzbekistan’s president has issued a decree allowing U.S. citizens visa-free entry for up to 30 days, effective January 1, 2026. The policy change aligns Tashkent with regional moves to ease travel for Western nationals and is intended to boost tourism, business travel, and short-term project work; it applies from the date of entry and does not change requirements for longer stays or work authorization.

For international professionals, the measure should simplify short-term site visits, deal scouting, and service delivery, and may generate incremental demand for airlines and hotels. Organizations scheduling 2026 travel for U.S. personnel should factor in easier mobility but continue to plan for registration, tax, and labor compliance beyond the 30-day window; no further implementing details were provided in the announcement.

Local Coverage: kun.uz

From daily brief: 2025-12-25

7. Presidential Address Sets 2026 as Year for Mahalla Development, Tightens Fiscal Oversight and Accelerates Tech-Driven Reforms

In his annual address to the Oliy Majlis, President Shavkat Mirziyoyev declared 2026 the “Year of Mahalla Development and Social Elevation,” outlining near‑term and five‑year priorities that decentralize reforms to neighborhood (mahalla) level while tightening fiscal and governance controls. Key measures include parliamentary approval for state‑guaranteed external borrowing, stricter limits on direct‑award public procurement, quarterly enforcement of MPs’ inquiries, and separation of executive and council powers at district/city levels; the plan also emphasizes anti‑corruption, digitized public services, and greater civil‑society engagement to improve delivery and accountability.

Economically, the program pivots Uzbekistan toward a technology‑led growth model with expanded industrial digitalization, AI adoption, and green investment, supported by higher‑education alignment of engineering and IT training with industry needs and dual‑education initiatives endorsed by business and academia. Mirziyoyev highlighted recent education gains—students won 51 gold, 101 silver, and 126 bronze medals at international Olympiads—and announced Uzbekistan will host major international chemistry and informatics Olympiads in 2026 alongside regional engineering and vocational contests, signaling a strategic push to develop STEM talent as part of competitiveness and long‑term reform credibility.

Local Coverage: uza.uz

From daily briefs: 2025-12-29, 2025-12-30

8. New Presidential Decree Overhauls Public Procurement with AI Pricing and Expanded Competitive Bidding

Uzbekistan has issued a Presidential Decree that overhauls public procurement to strengthen competition, transparency and digitization. Key measures take effect in phases: from 1 Jan 2026 the government will abolish the list of items eligible for direct (non‑competitive) contracts and introduce a new “request for quotations” competitive method for certain goods, works and services; draft regulations authorizing any remaining direct contracts must explicitly name the contractor. From 1 Mar 2026 the state procurement portal will add an AI module to calculate average market prices to inform tenders, and from 1 Jul 2026 bid evaluations and acceptance authorizations must be conducted entirely electronically.

Operational changes include lengthening electronic shop offer periods to 15–60 days, setting minimum delivery times at five days, and shortening expert review timelines at the Center for Comprehensive Examination of Projects and Import Contracts according to value and complexity. The decree also mandates automatic notification of announced procurement plans to local producers, allows local auction sales between budget entities and domestic manufacturers to count as valid even with a single bidder, and creates a centralized “Procurement Control” page to standardize risk classifications, automate risk alerts, categorize contracting authorities by violations, and publish a digital “Procurement KPI” performance rating. Together, these reforms aim to increase auditability, reduce discretion in direct awards and modernize oversight.

Local Coverage: uzdaily.uz, qalampir.uz, kun.uz

From daily briefs: 2025-12-29, 2025-12-30

9. Government Expands Proactive E‑Services, Targets Full Removal of Red Tape and Corruption

Uzbekistan’s Ministry of Justice has announced a major push to broaden digital and proactive public services to reduce red tape and corruption, aiming to raise available services to 900 and increase proactive/composite offerings from 90+ to 120. Currently more than 750 services are on the Unified Interactive Public Services Portal and 500+ at service centers; from March 1, 2025 age‑based pensions will be assigned automatically without applications, and 150 document types have been removed from user requirements. The program includes delegating 60+ services to the private sector, deploying 1,100 interactive kiosks, launching the “Vakolat.uz” power-of-attorney platform, AI advisory tools, and a “start a business in 15 minutes” bundle of seven services.

Parallel automation at the Bureau of Compulsory Enforcement (MIB) is integrating 68 information systems from 39 ministries and agencies to expand human‑free enforcement. The MIB Portal already executes 22 of 36 enforcement actions digitally; courts and 52 administrative bodies can submit writs electronically. Year‑to‑date, 66% of 95 million enforcement decisions were issued automatically, 76 million SMS notifications were sent, 17 trillion soums were recovered via e‑payments, 200,000 restrictions were lifted automatically, and online wage garnishment covered 723,000 writs collecting 277 billion soums. The ministry plans further digitization of document exchange among civil registry bodies, medical institutions and courts and continued expansion of automated enforcement over the next two years.

Local Coverage: uza.uz

From daily brief: 2025-12-30

10. World Bank Approves $105 Million Package to Expand MSME Finance and Jobs Through FINGROW

The World Bank’s Board approved a $105 million package for Uzbekistan’s Access to Finance for Jobs and Growth (FINGROW) project—comprising a $100 million loan and a $5 million grant—to alleviate a reported $6 billion financing gap for micro, small, and medium enterprises (MSMEs). MSMEs represent over 90% of firms, 75% of employment and roughly 55% of GDP in Uzbekistan; the project will deploy guarantees and mobilize private investment through the Entrepreneurship Development Company (Ministry of Economy and Finance), partnering with banks, microfinance providers and private investors.

FINGROW targets improved credit access for about 7,000 MSMEs by 2030 (including 4,500 led by women and youth), aims to support up to 100,000 quality jobs and to catalyze approximately $500 million in private capital. The operation, part of a broader $4 billion regional FINGROW program across Europe and Central Asia, seeks to promote innovative financial products and institutional strengthening to scale fast‑growing firms and expand well‑paid employment, particularly for women and youth.

Local Coverage: uzdaily.uz

From daily brief: 2025-12-30

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.