Today, Uzbekistan and Kyrgyzstan are connected not only by a shared border and close historical and cultural ties. A common economic space is gradually emerging, built on mutual trade, industrial cooperation, joint investment, and direct ties between businesses and regions.

Over the past decade, the two countries have moved from resolving accumulated issues to implementing concrete projects. The border is becoming a link rather than a barrier, while the complementary nature of the two economies is creating new opportunities.

Drivers of Trade and Economic Cooperation

The transformation is most clearly reflected in the growth of bilateral trade. Compared with 2016, mutual trade has increased more than sevenfold. Uzbekistan’s exports have grown more than sixfold, while imports from Kyrgyzstan have increased more than ninefold. Thus, the flow of goods is expanding in both directions.

In 2025, Uzbekistan’s foreign trade turnover with Kyrgyzstan reached nearly $1.2 billion, rising by 37% year-on-year. Uzbekistan’s exports to Kyrgyzstan increased by 46.5% to $771 million, while imports reached $428 million, up nearly 23%.

The positive trend continued in 2026. In January–May, trade turnover approached $469 million, increasing by 45.5%. Uzbekistan’s exports rose by 63% to $771 million, while imports from Kyrgyzstan increased by nearly 13% to $428 million.

The structure of bilateral trade has also changed significantly in recent years. For example, while light industry products accounted for more than 50% of Uzbekistan’s exports in 2021–2022, their share declined to 19%, or $147 million, in 2025. Agricultural and food products accounted for 15%, or $112 million; machinery, equipment, and vehicles for 11%, or $87 million; and chemical products for 11%, or $81 million.

At the product level, exports are primarily composed of finished textile products, electricity, cement, mineral fertilizers, knitted fabrics, automobile bodies and components, ceramic tiles, aluminum profiles, fruit and vegetable products, and confectionery.

The quality of Uzbekistan’s export structure has also improved. The share of raw materials in exports declined from 56% in 2019 to 8.2% in 2025. Processed goods accounted for 40%, with the remainder consisting of finished products, services, and goods supplied by individuals.

Imports from Kyrgyzstan are also gaining strategic importance. In 2025, mineral and raw material products accounted for 44%, or $190 million, of imports from Kyrgyzstan. Fuel and energy products made up 26%, or $111 million, including $85 million worth of coal and lignite. Agricultural and food products accounted for 14%, or $61 million. Other significant imports included glass, natural stone, rolled metal products, tires, and packaging materials.

At the same time, considerable growth potential remains. Kyrgyzstan currently accounts for only about 1.5% of Uzbekistan’s total foreign trade turnover. This indicates that the goal set by the two countries to increase mutual trade to $2 billion by 2030 is fully achievable. However, reaching this target will require systematic efforts to diversify the range of traded goods and strengthen cooperative links that can support durable trade and investment relations.

Investment and Industrial Cooperation

Investment and industrial cooperation constitute the second major driver of economic relations between the two countries.

In 2016, only 49 enterprises with Kyrgyz capital operated in Uzbekistan. By the end of 2025, their number had reached 344, representing a sevenfold increase. As of July 1, 2026, there were already 374 such enterprises.

An important mechanism in this area is the Uzbek–Kyrgyz Development Fund, established in 2021. The fund already uses several support instruments, including investment lending, leasing, and project financing. The next stage of its development could involve expanding its portfolio and actively channeling resources into export-oriented joint ventures.

A number of joint enterprises have also been launched in recent years. These include the Kyrgyz–Uzbek Tulpar Motors automobile plant in the Chuy Region, which generates demand for metalworking, automotive components, logistics, and maintenance services.

Joint projects are also being implemented in the textile industry, household appliance manufacturing, the production of plastic and aluminum profiles, construction materials, and other sectors.

Implementation has begun on major projects such as the China–Kyrgyzstan–Uzbekistan railway and the 1.9 MW Kambarata Hydropower Plant-1.

These projects provide a solid foundation for a new structural breakthrough in bilateral relations.

Promising Areas of Cooperation

The results achieved in trade and economic cooperation, together with the rapid economic growth of Uzbekistan and Kyrgyzstan, create significant opportunities for further expanding bilateral economic relations.

One priority is to increase mutual trade, with a particular emphasis on products resulting from industrial cooperation. Achieving the target of $2 billion in bilateral trade will require more than simply increasing sales of finished goods. The two countries will need to expand trade in inputs intended for further processing as part of deeper cross-border value chains.

According to estimates by the Center for Economic Research and Reforms, Uzbekistan has the potential to increase exports to Kyrgyzstan of passenger vehicles and components, trucks, agricultural machinery, iron and steel products, finished textile products, polymer materials and finished plastic goods, electrical products and equipment, pharmaceuticals, and cement.

Kyrgyzstan, in turn, has the potential to increase supplies of mineral ores, plastic products, glass, natural stone, ceramic products, and environmentally friendly agricultural and food products.

A strategically important area of cooperation could be the transition to large-scale industrial collaboration through the creation of joint full-cycle production facilities and clusters in border regions.

In light industry, border regions produce more than 600 tons of raw cotton and have a cattle population of 4 million and a sheep and goat population of 6.4 million, providing a substantial raw material base. Proximity to China can also reduce the cost of purchasing synthetic raw materials for the industry.

Construction materials represent another promising area because their production is already one of the leading industrial sectors in the border regions. Kyrgyzstan is also experiencing a construction boom, with construction activity increasing 1.7 times in the first half of 2026, thereby generating additional demand for construction materials.

In the food industry, cooperation could focus on processing fruit and vegetables, meat and dairy products, and producing juices, jams, animal feed, and other food products.

In the mining sector, the two countries could develop joint projects for the exploration and development of mineral resources, including critical minerals and iron ore deposits. Such projects should aim to establish full production cycles, from extraction to the manufacture of finished products.

Additional potential for industrial cooperation and investment exists in electrical equipment, household appliances, pharmaceuticals, medical devices, and automotive components, including parts, batteries, tires, and plastic and metal components.

An important consideration in this area is ensuring that products are manufactured in accordance with the standards and market requirements of the Eurasian Economic Union. This would strengthen the export potential of joint projects.

As part of their industrial cooperation agenda, Uzbekistan and Kyrgyzstan should begin developing joint industrial projects along the route of the China–Kyrgyzstan–Uzbekistan railway. Logistics terminals, industrial zones, warehouses, processing centers, and freight service facilities should be established along the route. This would help create a major industrial hub in the region.

Other important areas include deeper interregional and cross-border cooperation and greater support for entrepreneurship. Promising fields include e-commerce, joint entry into third-country markets, marketplaces, startup cooperation, digital payments, tourism, and workforce training for joint enterprises.

In conclusion, Uzbekistan and Kyrgyzstan have already established a solid foundation for economic partnership. The next stage should transform quantitative growth into qualitative production integration. The two countries need to move from trading individual goods toward joint value chains, interconnected industrial cooperation networks, and a common production and logistics space.

Ruslan Abaturov,
Center for Economic Research and Reforms

Issues of further development of multifaceted partnership, promotion of economic and investment cooperation projects, establishment of practical interaction in the defense sector were discussed at the meeting between President of the Republic of Uzbekistan Shavkat Mirziyoyev and a delegation from the United Arab Emirates headed by Deputy Prime Minister, Minister of Defense, Crown Prince of the Emirate of Dubai Sheikh Hamdan bin Muhammad Al Maktoum.

The Emirati delegation included the Ministers of Government Affairs Muhammad bin Abdullah Al Gergawi, Energy and Infrastructure Suhail bin Muhammad Al Mazroui, Economy Abdullah bin Tuq Al Marri, and Minister of State for Artificial Intelligence and Digital Economy Omar bin Sultan Al Olama.

At the beginning of the conversation, Sheikh Hamdan Al Maktoum expressed his sincere gratitude to our Head of State for the warm welcome and conveyed warm greetings from UAE President Sheikh Mohammad Al Nahyan and Prime Minister of the UAE, Emir of Dubai Sheikh Mohammad Al Maktoum.

During the meeting, special attention was paid to the issues of forming a new long-term agenda of mutually beneficial cooperation in such key areas as investment, innovative development, green energy, infrastructure, education, healthcare, ecology, digital transformation, tourism and others.

The sides highly appreciated the fruitful results of the joint forum on unlocking the potential of mutually beneficial cooperation, bilateral intergovernmental and interdepartmental talks held this morning.

An agreement was reached to adopt a road map for the development of full-scale cooperation in strategic sectors.

It should be noted that the UAE is one of Uzbekistan's key partners in the Asian region.

The latest high-level contacts took place within the framework of the Global Climate Summit in Dubai last December.

The trade turnover in 2023 grew by 21 percent and amounted to 626 million dollars. More than 320 enterprises with the participation of Emirati capital operate in our country. The portfolio of ongoing and prospective investment projects amounts to about 20 billion dollars.

At the invitation of President of the Republic of Uzbekistan Shavkat Mirziyoyev, President of Mongolia Ukhnaagiin Khurelsukh will pay a state visit to our country on June 23-26.

In accordance with the program of the high-ranking guest's stay, it is envisaged to hold high-level talks in Tashkent, during which issues of further expansion and strengthening of Uzbek-Mongolian relations of friendship and multifaceted cooperation will be considered.

In particular, the agenda includes plans to develop constructive political dialogue and inter-parliamentary contacts, increase bilateral trade turnover, implement cooperation projects in mining, agriculture, livestock, light industry, healthcare, transport, logistics and other areas. Joint measures aimed at boosting cultural, humanitarian and tourist ties will also be discussed. There will be an exchange of views on international issues.

A package of intergovernmental and interdepartmental documents will be signed following the results of the summit.

As part of the program of the state visit, the leaders of the two countries will meet with representatives of leading companies and business circles, and a number of other bilateral events will be held.

Mongolian President Ukhnaagiin Khurelsukh will also visit Khiva, where he will familiarize himself with the rich cultural and historical heritage of our people.

Annotation. The Ferghana Valley is the historical heart of Central Asia, where a new model of regional cooperation based on trust, good neighbourliness and sustainable development is currently taking shape. The initiative
of the President of Uzbekistan Shavkat Mirziyoyev to hold the Ferghana Peace Forum reflects a common desire among the countries of the region to strengthen mutual understanding and create the area of peace, stability, and shared prosperity.

INTRODUCTION

Historically, the Fergana Valley was a shared space where countries used common resources and people kept close ties. For centuries, the valley was
at the crossroads of key trade routes connecting the West and the East.

The establishment of an atmosphere of good neighbourliness
 in the Ferghana Valley reflects positive developments throughout Central Asia. Essentially, this is the result of political will, a concentrated expression
of the joint efforts of the leaders of all five countries to maintain security
and stability in the region.

Holding the Fergana Peace Forum in Fergana on October 15–16, 2025, confirms the statement made by the President of Uzbekistan at the 80th session of the UN General Assembly about the transformation of Central Asia into
an area of peace, friendly relations and partnership.

FROM A ZONE OF TENSION TO A SPACE OF TRUST

In the early years of independence, unresolved border issues and
the existence of numerous ethno-territorial enclaves served as grounds
for viewing the region as a conflict zone.

However, today, thanks to the political will and joint efforts of the leaders
of states, the Fergana Valley, previously perceived as a “powder keg,”
“Achilles' heel,” and “hot spot,” is becoming a symbol of peace, sustainable development, and a space of opportunity.

In recent years, Uzbekistan, Tajikistan and Kyrgyzstan have made significant progress in diplomacy and establishing stable political contacts.

The visits of the countries' leaders and their participation in regional forums and organizations such as the Shanghai Cooperation Organization
and the Consultative Meeting of the Heads of Central Asian States contribute
to the deepening of political and economic ties. The development of bilateral
and multilateral relations in the political sphere has helped to create a solid foundation for regional integration and mutual support.

Moreover, all five Central Asian countries contribute to the sustainable development of the Ferghana Valley. Joint water and energy projects are being implemented. In January 2023, Uzbekistan, Kazakhstan and Kyrgyzstan signed
a “”Road Map” for the implementation of the Kambarata HPS-1 construction project, and in June 2024, an interdepartmental agreement on preparations
for the implementation of the project.

A new phase of regional diplomacy began in 2017 with the election
of Shavkat Mirziyoyev as the President of the Republic of Uzbekistan. Relations
with neighbouring countries reached a qualitatively new level. Dialogue based on the principles of openness, respect, and equality laid the foundation
for long-term friendly coexistence.

Thanks to the political will of the leaders of the three states—Uzbekistan, Kyrgyzstan, and Tajikistan—historic agreements were reached in 2025
with the signing of the Treaty on the Junction Point of the State Borders
of  Three States and the Khujand Declaration on Eternal Friendship.
These documents became a symbol of a new era of trust and creative partnership. The treaty legally established the borders of the three states
at a concrete point in the Ferghana Valley.

This breakthrough did not come unexpectedly, without preparatory work. In the preceding months, on March 13, 2025, Kyrgyzstan and Tajikistan signed an important agreement on the demarcation of their common border—the final stage of their long negotiations.

Kyrgyz President Sadyr Zhaparov noted that regional integration continues to develop actively, and the strengthening of cooperation
in all spheres will be the key to sustainable development and prosperity throughout Central Asia.

In turn, Tajikistan President Emomali Rahmon called the development
of relations between the three countries based on the principles of good neighborliness, equality, and mutual respect one of the priorities of Tajikistan's foreign policy.

The international community particularly highlights the indispensable role of Uzbekistan's President Shavkat Mirziyoyev, who initiated a new diplomatic line: "Borders should not divide, but unite our peoples."

This approach creates a model for peaceful transformation, where internal rather than external factors shape the architecture of trust, friendship, and good neighbourliness.

The formation of the area of stability and cooperation in Ferghana Valley was achieved without external involvement, solely through the strong political will of the leaders of the three states, combined with the desire of the peoples
of the region for peaceful coexistence, creating a solid foundation for lasting peace and prosperity.

Ferghana Valley – an “exemplary model” for building inter-state relations in other regions

The Ferghana Valley is one of Central Asia's unique oases – a place where the destinies of the peoples of Uzbekistan, Kyrgyzstan, and Tajikistan have intertwined. More than 17 million people live here, accounting for 20%
of the total population of Central Asia, which is around 83 million.

Today, the valley is gradually becoming a symbol of the new Central Asia – a region where borders are not barriers, but bridges of interaction.
The development of transport, trade, and humanitarian ties between Uzbekistan, Kyrgyzstan and Tajikistan paves the way for the formation of a single space
for interaction in the name of common prosperity.

Joint infrastructure and economic projects, the restoration of roads
and railways, the development of border logistics hubs, and the modernization of checkpoints are creating conditions for the free movement of people, goods, and ideas.

Communications between the Ferghana Valley and the outside world are actively developing. Today, it is being integrated into international multimodal transport corridors and is gradually regaining its status as an interregional transit hub connecting East and West.

In this regard, the China-Kyrgyzstan-Uzbekistan railway project is of great importance. If implemented, it will have a multiplier effect on the economies
of all countries in the region.

The railway will provide access to the ports of the Persian Gulf
and the Pacific Ocean, open up new markets, thereby diversifying the economy and creating new jobs.

Visa regimes are being simplified and the throughput capacity at border crossing points is being improved, which will encourage more mutual travel
by citizens.

Uzbekistan maintains a visa-free regime with all Central Asian countries except Turkmenistan. In particular, there are currently 17 border crossing points between Uzbekistan and Tajikistan and 25 between Uzbekistan
and Kyrgyzstan. In 2016, there were only 13 between Uzbekistan
and Kyrgyzstan, and all of them operated with restrictions. For example, currently, up to 20,000 people pass through the Dustlik checkpoint
on the Uzbek-Kyrgyz border every day, which is 100 times more than in 2016.
At the same time, the number of vehicles passing through has increased tenfold, reaching 700 per day.

The Mingtepa and Khanabad border checkpoints were opened in 2023, and the Uchkurgan and Karasu checkpoints in 2024. These points had been closed since 2009-2010.

Today, citizens of Uzbekistan and Kazakhstan can travel to each other's countries for up to 30 days without registration. A visa-free regime
for up to 60 days has been established between Uzbekistan and Kyrgyzstan,
and since September 1, 2023, it has been possible to use ID cards
(instead of foreign passports) for mutual travel between the two countries.

The time required for goods and people to cross the border has been reduced to an unprecedented eight minutes. In turn, citizens of Tajikistan
and Uzbekistan can stay in each other's territory for up to 30 days
without a visa. This, in turn, contributes to the intensification of cooperation
and improved mutual understanding between the peoples of the Fergana Valley.

On the whole, a common space is forming in the Ferghana Valley, as it has throughout history. The restoration of the valley's interconnectedness contributes to the stability and sustainable development of the entire region.

The international community's keen interest in these processes confirms that Central Asia is becoming an important center for the formation of a culture of peace. The initiatives put forward by Uzbekistan have received support
from the UN, OSCE, EU, and other international partners, which strengthens
the legitimacy and sustainability of regional efforts.

The Ferghana Peace Forum has a special place in this process—it's not just a diplomatic meeting, but a platform for developing a new philosophy
of regional cooperation. This forum brings together political leaders, experts, and public figures, offering an open dialogue on strengthening peace, trust,
and sustainable development in Central Asia.

 The event will enable the countries of the region to independently shape their own architecture of stability and sustainable development, based
on mutual respect and the desire for a better future for new generations.

CONCLUSION

The Ferghana Valley is gradually transforming into a space of peace
and harmony, where peoples find common ground and jointly strengthen
the region's stability.

The establishment of the atmosphere of friendship and
amicable relations in the Ferghana Valley shows that, even in today's turbulent global environment, ensuring stability in the region is an achievable goal. 

This process requires patience, wisdom, and willingness to make reasonable compromises. Uzbekistan, Kyrgyzstan, and Tajikistan have demonstrated these qualities and their ability, despite complex challenges,
to unite for common goals such as strengthening security and sustainable development.

In turn, the Fergana Peace Forum is called to become a permanent platform aimed at strengthening dialogue and trust, ensuring sustainable development of the Ferghana Valley, unlocking economic potential,
and strengthening cultural and humanitarian ties. This meeting reflects the unity of the countries in the region, which are determined to build a common future together.

Authors: Diloram Mukhsinova and Bekhzod Alimjanov,

senior researchers at the Center for Foreign Policy Studies

(Uzbekistan)

Central Asia is entering a new stage of regional cooperation. What is emerging is neither a replica of the European Union nor an attempt to build a supranational bloc. Instead, the countries of the region are developing a flexible model based on sovereignty, political dialogue, practical cooperation and an expanding habit of consultation.

A region moving from fragmentation to coordination

For many years, Central Asia was often described through the language of fragmentation. Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan shared geography, history, infrastructure and common environmental challenges, yet cooperation was constrained by unresolved borders, water disputes, trade barriers and limited political trust.

That picture is no longer sufficient. Over the past decade, the region has entered a new phase in which political dialogue has become more regular, practical cooperation has widened and the habit of consultation has become increasingly institutionalised.

One of the important catalysts for this shift was the change in Uzbekistan’s approach to its neighbourhood. From 2017, Tashkent placed relations with Central Asian states at the centre of its foreign-policy agenda and promoted direct, regular dialogue among the region’s leaders. At the 72nd session of the United Nations General Assembly in September 2017, President Shavkat Mirziyoyev proposed holding regular consultative meetings of the heads of Central Asian states. The first such meeting took place in March 2018.

Cooperation without delegated sovereignty

The Consultative Meetings have gradually become the region’s principal political platform for discussing common challenges. Yet the format was not designed as a supranational organisation. Central Asia has no regional commission with independent authority, no regional parliament and no legal order comparable to that of the European Union.

Cooperation advances mainly through presidential meetings, ministerial coordination, bilateral and multilateral agreements and issue-specific arrangements. Institutions exist, but they remain light and state-controlled. This is institutionalisation without the transfer of sovereignty.

Uzbekistan’s role in this process is therefore best understood not as an attempt to construct a hierarchical integration project, but as a contribution to creating a political environment in which regular consultation and practical cooperation became possible. That distinction is important: the emerging regional order depends on the participation and political will of all the states involved.

Political trust as regional infrastructure

The clearest evidence of change is not a new headquarters or treaty organisation. It is the gradual reduction of problems that once made regional cooperation difficult.

In March 2025, Kyrgyzstan and Tajikistan signed a treaty on their state border, bringing a decades-long negotiation process to a formal conclusion. Given the history of tensions along parts of that frontier, the agreement improved the political environment for wider regional cooperation.

Transport connectivity, water management, energy, climate resilience, trade and industrial cooperation are also increasingly discussed as regional issues. For Uzbekistan, which is double-landlocked and closely connected to its neighbours through transport, water, energy and trade networks, a more predictable regional environment has direct economic and security significance.

This practical dimension has helped give the new regionalism substance. Political rapprochement has been followed by efforts to expand cross-border trade, improve transport links and coordinate responses to shared challenges.

Uzbekistan and the institutional evolution of regional cooperation

The seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent on 16 November 2025 under the chairmanship of President Shavkat Mirziyoyev, marked another stage in this evolution. The leaders adopted a decision admitting Azerbaijan as a full-fledged participant in the format.

The Tashkent meeting also demonstrated how the mechanism is becoming more structured while retaining its intergovernmental character. During Uzbekistan’s chairmanship, the regional agenda expanded across security, interregional cooperation, industry, agriculture, ecology, culture and other areas.

The sequence matters. In Central Asia, institutionalisation has largely followed political rapprochement rather than preceded it. Governments first rebuilt dialogue, reduced bilateral tensions and expanded practical cooperation. Formal mechanisms followed cautiously and selectively.

This may be described as sovereignty-preserving regionalism: states seek deeper coordination while avoiding the transfer of political authority to a regional centre.

From regional rapprochement to international recognition

External partners are increasingly responding to Central Asia as a more coherent regional space. A major example was the first European Union–Central Asia Summit, held in Samarkand on 4 April 2025. The summit was chaired by President Shavkat Mirziyoyev, with the participation of the leaders of the five Central Asian states and the European Union.

The meeting elevated relations between the European Union and Central Asia to a strategic partnership. Its agenda covered connectivity, trade, energy, water, climate, critical raw materials and other areas that are difficult to address through five unrelated bilateral tracks alone.

For Uzbekistan, hosting the summit reflected an important dimension of its regional policy: strengthening Central Asia’s collective international agency without replacing national foreign policies with a single regional centre. Greater coordination does not require the region’s states to speak with one voice on every issue. It enables them to identify areas where interests overlap and where joint engagement can bring practical benefit.

A model with strengths and limits

The emerging model has clear advantages. It lowers political barriers to cooperation, preserves national ownership and allows governments to advance practical initiatives without first resolving sensitive questions about supranational authority.

But it also has limitations. Consensus-based cooperation can slow decision-making. Light institutional structures may make implementation uneven, and regional cooperation can remain vulnerable to leadership changes, economic shocks or renewed disputes. Its durability will ultimately depend on whether repeated cooperation can survive moments when national interests diverge.

The next stage will therefore be judged less by the number of summits than by whether political agreements produce sustained results in transport, trade, water, energy, climate adaptation, security and people-to-people links.

Why Central Asia matters beyond Central Asia

Central Asia matters to debates about regionalism precisely because it does not resemble the European Union. The European experience has often shaped assumptions about how regional cooperation should evolve: states cooperate, build common institutions, accept shared rules and, in some fields, delegate authority above the national level.

Central Asia is moving differently. Its governments are building a denser pattern of political consultation and practical interdependence while maintaining a strong preference for sovereignty and intergovernmental decision-making.

Uzbekistan has contributed significantly to this process by promoting a more open regional political environment, initiating regular consultative dialogue among Central Asian leaders and linking political rapprochement with practical cooperation. At the same time, the process is fundamentally collective: its progress depends on the willingness of all participating states to reconcile national priorities with common regional interests.

Central Asia may never become another European Union — nor does it necessarily seek to. Its significance lies in showing that a region can become more cohesive, coordinated and internationally consequential while following its own institutional path.

Jakhongir Isaev

Head of Department, NGO Center for Sustainable Development, Uzbekistan

Amid the transformation of global supply chains and rapid geopolitical shifts in the world economy, the formation of sustainable and secure transport corridors connecting Asia and Europe has become particularly crucial. In this context, cooperation between the countries of Central Asia and Azerbaijan in the transport and logistics sector is becoming a key factor in ensuring regional trade stability, diversifying transport routes, and deepening economic integration across the Eurasian space.

Central Asia and Azerbaijan are united by a centuries-old history, culture, religion, and shared values. Today, this unified historical and cultural space is also emerging as a geoeconomic region of growing strategic importance. Due to its geographical location, Azerbaijan serves as a bridge connecting Central Asia via the Caspian Sea to the South Caucasus, Turkey, and European countries. In turn, the countries of Central Asia provide Azerbaijan with access to the dynamically growing markets of China and South Asia. This very complementarity creates a solid foundation for long-term cooperation in transport and logistics.

The seventh Consultative Meeting of the Heads of State of Central Asia, held on November 15–16, 2025, in Tashkent under the chairmanship of President of the Republic of Uzbekistan Shavkat Mirziyoyev, was of historic significance for the institutional development of regional cooperation. One of the most important outcomes of the summit was the admission of Azerbaijan as a full-fledged member of this format. This accession, unanimously supported by all heads of state, resulted in the formation of a new "Central Asia and Azerbaijan" cooperation framework.

The Trans-Caspian International Transport Route (the Middle Corridor) is central to this cooperation. In recent years, attention to this route has grown steadily: by the end of 2025, the total volume of freight traffic along the Middle Corridor exceeded 4.7 million tons.

This route is particularly significant for Uzbekistan. Over the past five years, the volume of Uzbek freight transported via the Middle Corridor has doubled, reaching 1.3 million tons by the end of 2025. While the share of goods transported along this corridor to and from EU countries was 12% in 2021, this figure rose to 28% by 2025.

To increase the freight volume along the Trans-Caspian Transport Route to 1.5 million tons, the joint Working Group holds regular meetings to discuss measures for expanding capacity and increasing freight traffic across the Caspian Sea, as well as the acquisition of vessels.

At the same time, to enhance the appeal of international transport corridors passing through its territory and to establish alternative transport routes linking Central Asia with the Eurasian transport network, Uzbekistan is implementing a number of strategically important infrastructure projects. The China-Kyrgyzstan-Uzbekistan railway construction project, being carried out with the active participation of Uzbekistan, holds a special place among them.

According to expert calculations, this route will form the shortest corridor from China to Europe and the Middle East, reducing the distance by 900 kilometers and cargo delivery times by 7-8 days. It is expected that after the project's launch, cargo traffic along this route, including through the Middle Corridor, will increase sharply.

Pending the completion of the railway, Uzbekistan is developing this corridor by organizing freight transport along the "China–Kyrgyzstan–Uzbekistan" route using the existing international highway network.

The international multimodal route "Asia-Pacific Region – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Georgia – Turkey – Europe" (CASCA+) is being actively developed as an effective mechanism for coordinating cargo flows. In 2025, container shipments along this route reached 6,722 TEU, a 47% increase compared to 2024. The annual provision of tariff preferences of up to 70% by the participating railway administrations contributes to the steady growth in the volume of mutually beneficial transport.

Furthermore, the establishment in 2024 of the "Eurasian Transport Route" association, with the participation of the railway authorities of Uzbekistan, Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, Turkey, and Tajikistan, has created an institutional platform for the prompt removal of logistical barriers along this corridor.

Another promising transport artery is the "Uzbekistan–Afghanistan–Pakistan" international transport corridor, which shortens the distance from European and CIS countries to Indian Ocean ports by up to 1,000 kilometers compared to existing corridors and creates a new dimension of regional interconnectivity.

The development of this route in harmony with existing transport arteries will lay the groundwork for a new multimodal transport corridor spanning a significant part of the Eurasian region:

"South Asian countries (Pakistan, India) – Afghanistan – Uzbekistan – Kazakhstan – Azerbaijan – Georgia (Black Sea ports) – European Union".

In addition to infrastructure connectivity, digital integration in the transport sector is also consistently advancing between the countries of Central Asia and Azerbaijan. In this respect, the introduction of the e-Permit system, initiated by Uzbekistan, has been of great practical significance. This system allows for the electronic exchange of permits for international road freight. Notably, this system will be launched between Uzbekistan and Azerbaijan in 2025, which will simplify administrative procedures for carriers, accelerate customs clearance, and reduce human error.

It is noteworthy that the world's first implementation of an electronic permit exchange system occurred in 2021 between Uzbekistan and Turkey. In the following years, this initiative was gradually expanded: the system was implemented with Kazakhstan in 2024, will be with Azerbaijan and Kyrgyzstan in 2025, and with Tajikistan, Turkmenistan, and China in 2026. This demonstrates that Uzbekistan is becoming one of the countries pioneering best practices in digitalizing international transport processes, not only regionally but also on a global scale.

In conclusion, the strategic partnership between the countries of Central Asia and Azerbaijan in the transport and logistics sector not only connects the regions but also ensures the stability of freight supply chains across the entire Eurasian space. Azerbaijan's full accession to the Consultative Meetings format, the active implementation of major railway projects, the widespread adoption of digital solutions, and the strengthening of institutional mechanisms are creating a solid foundation for a unified transport space. This, in turn, facilitates the seamless integration of the region's countries into global supply chains and further strengthens the positions of Central Asia and the South Caucasus within the international transit system.

Sh. Akhmedov, Leading Specialist at the Center for the Study of Transport and Logistics Development Issues under the Ministry of Transport of the Republic of Uzbekistan

The text of the article is in Uzbek language!

Expanding Uzbekistan’s exports and developing industrial cooperation require reliable logistics, access to capital, and stable and predictable conditions in foreign markets. These objectives occupy an important place on the economic agenda of the Conference on Interaction and Confidence Building Measures in Asia (CICA), which brings together 28 member states. The Seventh CICA Summit is scheduled to take place in Baku on 15 October 2026. It will be held during Azerbaijan’s chairmanship, whose priorities include connectivity, digitalization, and sustainable growth.

CICA members include some of Uzbekistan’s key trading partners. In the first half of 2026, China, Russia, Kazakhstan, Türkiye, and Afghanistan together accounted for approximately 53 percent of the country’s total foreign trade turnover. The multilateral platform complements established bilateral relations in areas where the organization of transportation or implementation of investment initiatives requires coordinated participation by several countries.

Cooperation with CIS countries occupies an important place in Uzbekistan’s foreign economic relations. Uzbekistan’s trade turnover with the Commonwealth countries increased from USD 11.8 billion in 2020 to USD 28.1 billion in 2025. In January–July of this year, trade turnover reached USD 18.3 billion, representing a growth rate of 122.7 percent. As of the beginning of August, approximately 5,800 enterprises with capital participation from Russia, Kazakhstan, Azerbaijan, and Tajikistan were operating in Uzbekistan.

Access to different markets requires a network of complementary transport corridors that makes it possible to select delivery routes based on their cost and transit time. At the CICA Summit in Astana in 2022, President Shavkat Mirziyoyev identified the development of production and logistics links between Central Asia and South and East Asia, as well as the Middle East, among the key economic priorities. The knowledge economy and modern technologies were also highlighted as priority areas.

Practical aspects of this agenda were discussed in June 2026 at the Second Termez Dialogue on Connectivity between Central and South Asia. Held with the participation of the CICA Secretariat, the event brought together representatives of 17 CICA member states. Discussions on multimodal routes and digital logistics were accompanied by a visit to the infrastructure of the Termez Cargo Terminal and the Ayritom International Trade Center, which facilitate freight transportation and trade between the regions.

Links with ports in the Caspian region complement the overland transport network by providing access to maritime routes. The conference of heads of ports of CICA member states, held in Baku in September, focused on coordinating maritime, rail, and road transportation, cargo handling, and cooperation among operators.

The transport agenda is closely linked to ongoing work within the CIS aimed at harmonizing technical requirements, ensuring mutual recognition of conformity assessment results, and eliminating non-tariff barriers. Electronic document management helps reduce the time required for cargo clearance and control procedures.

Direct ties between regions and businesses facilitate the identification of partners and platforms for joint projects involving technology transfer, industrial automation, and the development of new materials. Strengthening such ties was a key focus of the First CIS Forum of Regions held in Tashkent in 2025. The CICA Business Council provides additional opportunities for business engagement by promoting cooperation among business associations of CICA member states.

At the CIS Innovative Industry Forum held in Tashkent in April 2026, participants discussed the application of artificial intelligence and cooperation between science and industry.

For small and medium-sized enterprises, participation in such value chains creates opportunities to manufacture components and provide specialized services to large industrial enterprises.

The preparation of joint projects also requires coordination of financing sources. The CICA Financial Summit serves as an additional platform for engagement with relevant national institutions. Its first meeting was held in Astana on 8 September 2026. Its consultative agenda covers development finance, investment cooperation, and digital solutions. For Uzbekistan, this provides an opportunity to present initiatives in logistics, energy, and industry to potential investors and discuss the terms and conditions for their implementation.

Participation in multilateral formats enables Uzbekistan to build on established partnerships when entering new markets and preparing joint projects. The economic impact of such cooperation is reflected in the establishment of new production facilities, long-term export contracts, and an increase in the value added generated in Uzbekistan.

Due to the Aral Sea tragedy, the negative consequences of climate change are more acute in Central Asia. The increase in air temperature in our region is twice the world average. The number of extremely hot days is expected to double and the area of glaciers will shrink by a third. In the last 30 years, the rate of warming in Central Asia is higher than the global average, and the average annual temperature has increased by 0.5 degrees. According to forecasts, the temperature is expected to increase by 2.0-5.7 degrees by 2085.

Uzbekistan is making active efforts to improve the quality of the environment and prevent the negative consequences of environmental problems. In particular:

Within the framework of international cooperation

Currently, the need for international cooperation in the field of environmental protection is determined by the growing ecological interdependence of all countries. Ozon layer depletion, pollution of the atmosphere and oceans, and the rise in temperature on our planet affect the entire world community, not just the countries engaged in environmentally dangerous activities. Therefore, today, a number of countries have established cooperation with the United Nations Organization on issues of environmental safety.

Such cooperation is based on a number of principles generally recognized by the international community. They are partly reflected in interstate agreements and acts, normative documents of international organizations, and summarized in the decisions of the most important international conferences dedicated to environmental protection and the regulation of cooperation between states and peoples in this field.

Based on this, Uzbekistan is actively promoting important climate initiatives aimed at uniting the region to combat climate change. These ideas of the President of Uzbekistan Shavkat Mirziyoyev are constantly supported by the countries of the region.

As a logical continuation of the formation of a unified climate agenda for Central Asia, the initiative to develop a regional strategy for adaptation to climate change was announced by Uzbekistan at the 5th meeting of state leaders. In addition, the Head of Uzbekistan proposed to establish a multilateral platform at the level of the ministers of ecology - "Central Asian climate dialogue", which can be an integrating link in the path of "green" development in Central Asian countries.

In addition, President Shavkat Mirziyoev put forward a number of proposals at the United Nations Climate Change Conference (COP28). In particular, our country's President advocated for an expeditious agreement on the Global Framework for Climate Adaptation within the framework of the Paris Agreement. At the same time, he noted the need for a fair, transparent and inclusive transition to a low-carbon economy on a global scale, in which the interests of developing countries must be taken into account. He proposed to consider this urgent problem on a permanent basis, including within the framework of the "G7" and "G20" summits.

Within the framework of environmental reforms in our country

A strategy for the transition to a «green» economy

Uzbekistan adopted the strategy of transitioning to a "green" economy for 2019-2030. The main goals of this strategy are:

Preservation of natural resources: Modernization of irrigation systems, introduction of water-saving technologies.

Use of alternative energy sources: Expanding the use of solar, wind and biomass energy.

Introduction of cost-effective means in economic sectors: Improving energy efficiency in manufacturing and service sectors.

Improvement of environmental legislation

Legislation is also being improved to ensure environmental stability in Uzbekistan. These laws are aimed at providing legal groundwork to the reforms implemented in the fields of environmental protection and ecological stability.

Project "Restoration of sustainable forest landscapes in Uzbekistan"

The project "Restoration of sustainable forest landscapes in Uzbekistan" is being implemented in collaboration with the International Development Association. The cost of the project is more than 205 million dollars and it will be implemented within 6 years. It is important that the goals of the project include such tasks as expanding the territory of forests, strengthening the material and technical base of forestry, introducing sustainable management and developing the infrastructure of ecotourism.

"Uzbekistan - 2030" strategy

In the "Uzbekistan-2030" strategy adopted by the Decree of the President of Uzbekistan on September 11, 2023, reforms in the framework of water resources conservation and environmental protection are set as one of the priority goals. A number of measures are envisaged within the framework of the strategy, and they are being effectively implemented. In particular,

National project “Yashil Makon” ("Green Zone").

The Decree of the Cabinet of Ministers No.144-F of March 7, 2024 was adopted in order to implement the activities of the nationwide project "Green Space" in 2024. This project included a number of important initiatives aimed at improving the environmental situation in Uzbekistan and expanding green areas.

138.1 million tree saplings were planted in the spring planting season of 2024 within the "Green Zone" national project. This indicator made 110.5 percent compared to the planned one. This part of the project is aimed not only at environmental improvement but also at improving the aesthetic appearance of our cities.

"Green Parks" and "Green Belts"

In particular, 257 "Green Parks" were established, their total number reached 517. Also, "Green Belts" were established by planting 5.3 million tree saplings in and around industrial enterprises. These efforts were made to reduce the impact of industrial enterprises and protect the environment.

Initiatives of organizations and agencies

Ministries and agencies are also contributing to the aforementioned work. In particular, the Ministry of Defense created a park of 100 hectares, the Ministry of Digital Technologies and the Ministry of Mining and Geology — 65 hectares. These efforts are critical to ensuring the comprehensiveness and sustainability of the project.

Tree planting and waste recycling

In our country, trees have been planted near highways and railways, on river and canal banks, at industrial enterprises and gas stations. These are especially aimed at reducing the negative impact of transport and industry on the environment.

On average, 6.8 million tonnes of household waste are produced in our country per year. In recent years, the number of neighbourhoods covered by sanitation services has increased by more than 90 percent. The level of waste processing was 38.1 percent as of July 1, 2024, and the number of such enterprises was 313 as of February. 

Waste treatment and landfills

A new system for the regulation of landfills and waste processing is being launched. In each region, 3-4 landfills with a convenient location are being turned into special eco-industrial zones, and recycling projects are being implemented. In the remaining landfills, a new practice is being used to start temporary waste collection and reloading stations. The landfills that exhausted their resources are closed, poplar, mulberry, elm and maple trees are planted around them, and "green belts" are being established.

Avazbek Kholbekov,

Head of Department – Development Strategy Centеr

President Shavkat Mirziyoyev was given a presentation on measures to further develop the jewelry industry, support jewelry production and sales, and increase exports of finished products.

Our country has a huge potential for increasing production and export of jewelry.

As the head of state noted, only 6 percent of gold mined in the country is processed, and exports of its products amount to only 78 million dollars, so it is important to create jewelry zones with special conditions for entrepreneurs, to review the provision of raw materials, training of specialists, production chain and sales system.

In this regard, the Ministry of Economy and Finance and the Chamber of Commerce and Industry have developed relevant proposals.

In particular, it is planned to improve the activity of the Uzbekzargarsanoati association, expand its powers and reorganize the management system.

In order to support manufacturers of the industry, it is proposed to apply the benefits provided for members of the Association "Uzbekzargarsanoati" to individual entrepreneurs - manufacturers of jewelry, who are members of the Association "Uzbekzargarsanoati".

The possibility of establishing a zero rate of customs duty and value added tax on equipment, packaging and marking materials that are not produced in Uzbekistan and used in the jewelry industry for the period up to October 1, 2026 is being studied.

The issues of creation of special jewelry centers including production, exhibition and trade areas were considered. Information was provided on the placement of pilot projects in Tashkent and Namangan region.

The issue of increasing the volume of jewelry exports was discussed. It was proposed to establish a zero rate of customs duty for export of jewelry made in our country to the United States of America under the GSP system.

The head of state instructed to finalize the presented measures and work out a program for the development of domestic jewelry production for the period up to 2027.

On November 29, President Shavkat Mirziyoyev convened a meeting dedicated to identifying additional opportunities, increasing investments and jobs in Bukhara region.

Previously, the economy of this region was mainly linked to agriculture. However, over the past seven years, the region has attracted more than $4 billion investments, enabling development of such industries as energy, electrical engineering, chemicals, pharmaceuticals, textiles and leather. In the past period of the current year, 1.5 million foreign tourists visited Bukhara.

The visit of the Head of State to the region on May 31-June 1 gave a new impetus to its development. All the tasks outlined during the visit will be fully accomplished by the end of the year.

At the same time, it is important to ensure further growth of economic indicators in 2025, increase employment and well-being of the population. To this end, the working group studied additional opportunities of the region and factors hindering entrepreneurship development.

The critical meeting emphasized that the region's economic performance does not correspond to its potential. Work on investment absorption, poverty and unemployment reduction was recognized as unsatisfactory.

In this regard, the hokims, their deputies and sector heads will be put on emergency duty for a period of six months. The entire focus will be on improving these three areas. Special attention will be paid to implementing 70 driver projects based on the experience of Saikhunobad, Uychi, Zarbdar and Gijduvan. They will provide income to 150 thousand people and lift 40 thousand people out of poverty.

As it was mentioned, each district of the region can be specialized for a certain industry. For example, Peshku and Shafirkan - for production of construction materials and textiles, Kagan city, Alat and Jondor districts - for food industry, Gijduvan and Romitan - for chemical industry. This will make it possible to implement projects of entrepreneurs worth $150 million, create 411 small enterprises and provide 12 thousand jobs.

Four textile factories are planned to be built in Vabkent, Karakul, Jondor and Alat at a total cost of $320 million. This will double the volume of finished knitwear and textile products and create 5,000 jobs.

Next year, the number of foreign tourists is expected to reach 2.2 million and tourism exports are expected to reach $600 million. This will be supported by opening 69 new hotels and 2 thousand handicraft stores.

It is planned to develop additional 20 thousand hectares of land, which will allow to grow additional 100 thousand tons of agricultural products and provide employment for 2 thousand people. Trees and food crops will be planted on vacant homestead land, along canals and field edges.

Another opportunity is pastures. In Bukhara region their area exceeds 2 million hectares. As part of the decisions made at a recent meeting on horticultural development, it is planned to grow pistachios on unused pastures.

Hokim of Bukhara region presented plans to utilize these opportunities. In general, next year 106 projects will be implemented, 105 thousand permanent jobs will be created, exports will be increased by $350 million due to foreign investments worth $2 billion.

The Head of State pointed out the insufficiency of these plans and instructed to intensify efforts and improve results. He tasked to revise the proposals again and draft a relevant resolution.
 

The text of the article is in Uzbek language!