Uzbekistan Weekly: Uzbekistan seals $12bn Japan deal, advances CKU railway, tightens fiscal rules

December 18, 2025 to December 24, 2025

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

1. Tashkent and Tokyo Seal $12bn Cooperation Package, Elevate Ties to Enhanced Strategic Partnership

During President Shavkat Mirziyoyev’s official visit to Tokyo (Dec 18–20, 2025), Uzbekistan and Japan elevated bilateral ties to an “enhanced strategic partnership” and signed over $12 billion in cooperation projects spanning renewables and storage, transport, ICT, health, education, urban development, agriculture, water management and disaster resilience. Key commitments include a $6.5 billion program targeting roughly 5 GW of wind and solar capacity to help raise Uzbekistan’s renewable share to 54% by 2030, JBIC-accelerated financing for telecoms, air‑traffic control, ICT and IPP renewables, JOGMEC-backed critical‑minerals exploration, and plans for a Japan‑standard special economic zone in Samarkand and a joint investment platform.

The visit also hosted the inaugural “Central Asia + Japan” summit (Dec 19–20) producing a Tokyo Declaration and a five‑year CA+JAD Tokyo Initiative aimed at green transition, connectivity and human‑capital development; Tokyo pledged to mobilize about ¥3 trillion (~$19 billion) in business projects for the region. Strategically, the pact tightens Japan’s economic footprint in Central Asia—supporting Trans‑Caspian routes, critical‑minerals supply chains and AI/cyber cooperation—and signals a regional diversification away from dominant Eurasian actors, with concrete deliverables (150+ documents signed, new ODA lines, university and tech‑hub plans) to accelerate implementation.

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

From daily briefs: 2025-12-18, 2025-12-19, 2025-12-20, 2025-12-21, 2025-12-22, 2025-12-23

2. Lawmakers Approve 2026 Tax Overhaul and Tighten Fiscal Oversight Across Budget and Debt

Parliament has approved a comprehensive 2026 tax and fiscal governance package that both expands targeted business incentives and tightens budgetary and debt oversight. The tax measures ease compliance burdens (reduced penalties for reporting errors, limits on repeat desk audits without prior analysis, and allowing installment payments of sanctions after field audits), mandate auto-generated tax reports for multiple taxes, and clarify confirmation rules for exporters selling via domestic and foreign marketplaces. New sectoral incentives include excise relief on polyethylene granules for pharmaceuticals; 1% PIT and social-tax rates for agricultural and medicinal-plant cooperatives; profit/turnover tax exemptions and 1% property/land tax for EV charging stations; and a 12-month land tax holiday for developers in “New Uzbekistan” housing complexes. Offsetting changes raise some bases and excises (including higher property and land tax minima and increased excises on certain goods) and lift profit/turnover tax rates for e‑commerce platforms.

Concurrently, fiscal governance reforms accelerate and increase transparency ahead of 2026: temporary budget estimates are abolished from 2026; line-item budgets and staffing tables must be approved by December 20 and registered by December 25; consolidated budget reporting to the Cabinet is moved up to March 1; and parliamentary reporting is broadened to include extra‑budgetary funds and state debt. Infrastructure program formation will face earlier parliamentary scrutiny, quarterly execution reports will be sent to the Legislative Chamber with expedited Accounts Chamber opinions, and regional leaders must approve quarterly revenue plans and publish community-prioritized spending on official sites and the “Open Budget” portal. Deputy Minister Ahadbek Haydarov said the draft law reflects the main directions of tax and budget policy for 2026.

Local Coverage: gazeta.uz, gazeta.uz

From daily brief: 2025-12-24

3. Tashkent Discusses Expanding Projects with JOGMEC and ITOCHU on Uranium, Critical Minerals, and Infrastructure

Uzbek President Shavkat Mirziyoyev met senior representatives from Japan Oil, Gas and Metals National Corporation (JOGMEC) and ITOCHU Corporation to advance joint projects that leverage Japanese technology across extractive and infrastructure sectors. Discussions reviewed ongoing participation in uranium development in Navoi and Kashkadarya regions and plans to expand precious‑metal extraction at promising sites; long‑term agreements to export critical minerals to Japan were highlighted as a milestone likely to deepen bilateral supply‑chain links and secure downstream inputs for Japanese industry.

Beyond mining, the parties outlined cooperation in water purification, automotive manufacturing, modernization of air‑traffic management systems, and public‑private partnership initiatives in the social sector, building on ITOCHU’s existing work in machinery, geology and infrastructure in Uzbekistan. The meeting signals a strategic shift toward integrated resource development and technology transfer intended to underpin Uzbekistan’s industrialization and to provide Japan with more reliable critical‑minerals supply.

Local Coverage: uzdaily.uz

From daily brief: 2025-12-21

4. China–Kyrgyzstan–Uzbekistan Railway Secures $2.3B Syndicated Loan, Capital Structure Finalized

The China–Kyrgyzstan–Uzbekistan Railway joint project company and a Chinese bank syndicate led by China Development Bank and the Export–Import Bank of China signed a financing agreement in Bishkek securing a $2.3 billion, 35‑year loan to fund roughly half of the $4.7 billion China–Kyrgyzstan–Uzbekistan rail project; equity will cover the remainder with China holding 51% and Kyrgyzstan and Uzbekistan each 24.5%. Officials say the transaction achieved full financial close ahead of the December 20, 2025 deadline.

The 532.5 km line—about 40% tunnels and bridges, including 27–29 tunnels and 41–50 bridges, largely across Kyrgyzstan—targets 15 million tonnes of annual freight and future passenger services, with construction on track for 2030 completion. Project leaders framed the deal as a signal of delivery capacity for international‑scale infrastructure and committed to efficient fund use and on‑time fulfillment of obligations, underscoring strategic connectivity and financing precedent for regional transport corridors.

Local Coverage: gazeta.uz, spot.uz

From daily brief: 2025-12-18

5. UK Expands Russia Sanctions, Blacklisting Four Uzbek Firms and a Tashkent Entrepreneur

On 18 December the UK expanded its Russia sanctions list by designating 24 individuals and entities, notably four Uzbekistan‑registered firms—Fergana Chemical Plant; Chemistry International LLC JV (Navoi); Raw Materials Cellulose LLC (Jizzakh); and Gelion Business Trade LLC (Tashkent)—and 71‑year‑old Tashkent‑born entrepreneur Rustam Rahimjonovich Mominov (reported Uzbek, Russian and Israeli nationalities). London says the companies and Mominov provided funds, goods, technology or services that could undermine Ukraine’s territorial integrity or feed Russia’s defence supply chain; Fergana Chemical Plant faces the strictest UK restrictions.

Designations impose UK asset freezes and bans on UK persons providing funds, economic resources or trust services and will heighten compliance, banking and trade risks for counterparties linked to the listed entities. The move follows prior Ukrainian measures against Uzbek firms and an October EU designation of Mominov related to cotton‑cellulose deliveries to Russian propellant factories, underscoring continued UK enforcement pressure on third‑country actors perceived to enable Russia’s war economy.

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

From daily briefs: 2025-12-20, 2025-12-21

6. Trade Turnover Rises 21.8% to $72.8 Billion as Exports Outpace Imports in January–November

From January–November 2025, total trade turnover reached $72.8 billion, up 21.8% year‑on‑year, as exports rose 26.2% to $30.9 billion and imports increased 18.7% to $41.9 billion, widening the trade deficit to $11.0 billion. China (20.1%) and Russia (16.2%) remained the country’s largest trade partners, followed by Kazakhstan, Turkey and the Republic of Korea.

Goods accounted for 72.6% of exports, led by industrial goods, foodstuffs, chemicals and manufactures; notable sector movements include a 36.8% jump in fruit and vegetable exports to $1.94 billion and a 14.6% fall in textile exports to $2.27 billion. Services exports climbed 28.9% to $8.48 billion—driven by travel and transport—while services imports rose 31.0% to $4.47 billion. On the import side, machinery and transport equipment dominated (33.6%), underscoring ongoing capital‑goods needs that are widening the deficit despite robust export growth.

Local Coverage: uzdaily.uz

From daily brief: 2025-12-23

7. Mirziyoyev, Trump discuss strategic projects and regional cooperation as Miami G20 invitation extended

On 23 December, Uzbek President Shavkat Mirziyoyev and U.S. President Donald Trump held a phone call to review implementation of high‑level accords and expand an “Uzbekistan–U.S. strategic partnership,” identifying a multi‑sector pipeline—civil aviation, autos, mining, agriculture, infrastructure, energy, chemicals and ICT—worth “tens of billions” of dollars. They announced new mechanisms including an America–Uzbekistan Business and Investment Council, work toward a Joint Investment Fund, and region‑to‑region links between Uzbek regions and U.S. states; Trump invited Mirziyoyev to the 2025 G20 in Miami and Mirziyoyev reciprocated with an invitation to visit Uzbekistan. Both leaders signalled cooperation on C5+1 multilateral platforms and emphasized peaceful resolution of conflicts.

Earlier, Mirziyoyev concluded a working visit to St. Petersburg (21–22 December) as an observer at the Supreme Eurasian Economic Council and informal CIS summit, proposing phased removal of trade barriers, alignment of technical and sanitary rules, cross‑border customs data exchange and a “seamless” digital freight model. He noted Uzbekistan’s trade with the Eurasian Economic Union has doubled over four years to nearly $20 billion and flagged Uzbekistan’s entry into the Eurasian Development Bank to finance infrastructure, energy and green projects—moves that signal deeper regional economic integration and a push for joint industrial, transport and digital platforms through 2026.

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

From daily briefs: 2025-12-22, 2025-12-23, 2025-12-24

8. Government Scraps 1,600+ Business Compliance Requirements, Eases Import and Tourism Rules

Uzbekistan’s Cabinet of Ministers, via a Ministry of Justice-drafted resolution, has eliminated more than 1,600 mandatory business requirements—including certification for 1,568 veterinary-controlled product categories—and removed limits such as the US$5,000 cap on import transactions for sole proprietors, 30‑day restrictions on short‑term tourist rentals, and some wooden‑furniture rules. The move, described by authorities as a deregulatory push to cut bureaucracy, follows 2024 reforms that reduced duplicative reporting and permits; the electronic registry still lists more than 36,000 mandatory requirements, with further streamlining under review.

Complementary measures aim to speed business formation and cut costs: a decree targets lower administrative and tax burdens and a “15‑minute business launch” model will roll out from January 1, 2026 to provide simultaneous e‑signature issuance, bank account opening/activation, selected license applications, VAT registration and other services; a “Business Companion” one‑stop service offering 1,000+ services is planned for major cities from March 2026. Officials estimate the reforms could reduce entrepreneurs’ administrative costs by up to 90 billion soums and save as much as 15 days in interactions with state bodies.

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

From daily brief: 2025-12-18

9. World Bank and Government Outline Methane-Leak Mitigation Facility for Gas Network

On December 18 officials from the World Bank, Uzbekistan’s Ministry of Economy and Finance, and state gas operator Uztransgaz finalized implementation arrangements for a national program to detect and repair methane leaks across state-owned gas assets. The initiative will establish a Gas Leakage Financial Facility, initially capitalized with a US$10 million World Bank grant administered by the ministry, and addresses institutional roles, planning and screening for leak detection and repair, grant allocation mechanisms, and independent verification of savings from reduced gas losses.

The participants agreed to create a ring‑fenced account to capture verified savings for reinvestment and to link outcomes to gas tariffs, and committed to prepare final documents — including the grant agreement and a government resolution — to launch implementation. For international stakeholders this signals a focused, finance‑backed effort to reduce methane emissions from transmission and distribution infrastructure, with explicit verification and tariff linkage designed to support sustainability and cost recovery.

Local Coverage: uzdaily.uz

From daily brief: 2025-12-21

10. Bilateral Market-Access Talks with Russia Conclude in WTO Accession Push

Uzbekistan completed a bilateral market-access protocol with Russia on its World Trade Organization accession in St. Petersburg during President Shavkat Mirziyoyev’s working visit, signed by chief negotiator Azizbek Urunov and Russia’s Economic Development Minister Maksim Reshetnikov. The move — one of the final bilateral steps before multilateral negotiations and domestic legal alignment — follows recent protocols with Canada, Panama, Paraguay, the EU and Ecuador; only talks with Chinese Taipei remain among 33 partners, and Tashkent aims to finalize accession ahead of the WTO’s 14th Ministerial Conference in Cameroon in 2026. Urunov said some issues persist but the focus will shift to multilateral talks and legislative changes to complete accession next year.

Concurrently, Tashkent reshuffled judicial leadership (Olimjon Ismailov as chair of Tashkent City Court; Ulugbek Almamedov to head the city’s Administrative Court; Maxmud Eshimbetov for Karakalpakstan Administrative Court) and issued a decree to digitize Constitutional Court procedures. Domestic reform signals include energy-sector restructuring under new O‘zbekneftgaz CEO Abdug‘ani Sanginov, new rules from 1 January 2026 restricting unregistered foreign online firms (30‑day registration window), escrow protections for off‑plan housing from 2025, tighter narcotics and consumer protections, and intensified enforcement in pharmaceuticals and aviation; the UK also imposed sanctions on businessman Rustam Mominov and four Uzbek firms.

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

From daily briefs: 2025-12-20, 2025-12-23

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.