The resilience of Finland’s development model and the dynamism of Uzbekistan’s reforms provide a solid foundation for deepening bilateral cooperation. Finland combines technological leadership, efficient governance, and a robust social policy. Its mixed model of development with strong public regulation and an active private sector is based on long-term planning, technological excellence, and social equality.
A balanced economic policy keeps inflation at 2–3%, while maintaining a high AA+ credit rating. The national research infrastructure is funded as a key element of state strategy. Total spending on research and development exceeds 3% of GDP, reaching €8.4 billion in 2023, up 6.3% from the previous year. The contributions came from the public sector, universities, and private business.
Finland’s economy remains open and export-oriented. In 2024, foreign trade reached €146.5 billion, including €72.2 billion in exports and €74.3 billion in imports. Its technological specialization, advanced digital environment, and high human capital create a predictable setting for investors.
At the same time, Uzbekistan has become a driver of reform in Central Asia over the past eight years. The country’s GDP has doubled to reach $115 billion. Since 2017, fixed capital investments have totaled $240 billion, with over $130 billion coming from foreign sources. International reserves exceed $48 billion. The structure of production has evolved: the share of industry rose from 20% to 26%, services from 44% to 47%, and labor productivity increased by 45%. Regulatory reforms expanded the space for private capital, while transport and energy infrastructure projects established a new foundation for industrialization and export growth.
As a result of these reforms, Uzbekistan’s trade with the European Union has entered a stable growth trajectory. Between 2017 and 2024, trade turnover between Uzbekistan and the EU increased 2.4 times from $2.6 billion to $6.4 billion. In 2024, exports rose by nearly 27% compared to 2023, while imports remained at a comparable level.
A New Stage of Political and Economic Relations
Particularly strong momentum has emerged in Uzbek–Finnish relations. Regular high-level contacts have given fresh impetus to the bilateral dialogue. On 12 November 2024, on the sidelines of the COP29 Summit in Baku, President of Uzbekistan Shavkat Mirziyoyev met with President of Finland Alexander Stubb. The two leaders discussed prospects for cooperation in the fields of the green economy, renewable energy, innovation, and education, and exchanged views on sustainable development and climate policy.
The political dialogue continued with a telephone conversation on 9 September 2025, during which the heads of state explored ways to expand economic and humanitarian cooperation. Furthermore, an official visit of the President of Finland to Uzbekistan is expected in late October 2025, aimed at consolidating earlier agreements and opening new areas of partnership.
This process is creating a favorable foundation for strengthening trade and economic ties, introducing Finnish technologies, and attracting investment into Uzbekistan’s priority sectors. From 2019 to 2024, bilateral trade more than tripled to reach $152 million. Uzbekistan’s exports to Finland increased almost 17 times to $4.73 million, while imports from Finland nearly tripled to $147 million. Over the past year alone, Uzbek exports to Finland grew by 56%, and imports rose 3.2 times. From January to August 2025, trade volume exceeded $68 million.
Trade flows reflect each country’s comparative advantages: Uzbekistan supplies industrial goods and services, while Finland exports machinery, transport equipment, chemicals, and food products.
Prospects for Cooperation
The emerging agenda for trade and economic cooperation draws on Finland’s experience in engineering, clean technologies, digital healthcare, education, and R&D management – areas closely aligned with Uzbekistan’s goals for technological renewal, energy efficiency, and human capital development. At the same time, Uzbekistan’s favorable business climate and major infrastructure projects are reducing operational costs for foreign companies.
Given Uzbekistan’s development priorities and conducive investment conditions, there is significant potential to further deepen Uzbek–Finnish cooperation across several areas. According to the Center for Economic Research and Reforms, Uzbekistan’s exports to Finland could expand even in the short term, particularly in sectors where Uzbek producers have existing capacity and advantage – textiles and garments, fruits and nuts, footwear, leather goods, stone and cement products, as well as copper and semi-finished copper products.
Logistics could be organized through the ports of Helsinki and HaminaKotka, with Turku as a potential reserve. Distribution channels could be developed via major retail networks and distributors, including Kesko and S Group. Key success factors include certification under EU standards, stable supply chains, and regular contracts.
Industrial cooperation should move toward deeper processing with full production cycles, for example, in knitwear, wool, and leather, from spinning and dyeing to finished apparel. Potential partners include Finnish companies such as Lapuan Kankurit and Pirtin Kehräämö, as well as the Aalto University School of Arts, Design and Architecture. In agriculture, joint breeding programs using Finnish sheep lines and supported by LUKE (Natural Resources Institute Finland) could strengthen the raw-material base of Uzbekistan’s textile clusters.
In the digital and green transformation sphere, collaboration could extend to telecom infrastructure and critical systems management with companies such as Nokia. In energy, there is potential for cooperation in localizing components for solar installations and storage systems, developing smart grids, and improving generation efficiency in hot climates, with participation from Finnish firms Valoe, Fortum Solar, and Wärtsilä.
For research and materials science, engaging institutions such as VTT and LUT University would help build a sustainable technological and human-resource base in Uzbekistan, while opening new regional export niches.
In mechanical engineering, cooperation could develop with Metso and Valmet on equipment components, servicing, and partial localization. In logistics and cargo handling solutions, Finnish companies Konecranes and Cargotec offer relevant expertise. In climate monitoring and water-chemical solutions, potential partners include Vaisala and Kemira.
A cross-cutting priority remains human capital. Joint programs with the University of Helsinki, Tampere University, and University of Oulu are needed to establish industrial internships and introduce Finnish methods for training engineers, technologists, and quality specialists for high-tech industries.
At the institutional level, further progress will require harmonizing border procedures, launching green corridors, implementing digital customs systems, and ensuring mutual recognition of certificates. It will also be important to develop industrial and agro-processing clusters, logistics hubs, and training programs for workforce development.
In the near future, Uzbek–Finnish cooperation may reach a stable, long-term trajectory. For Finland, Uzbekistan represents a reliable supplier of manufactured goods and components, and a new market for technology and equipment. For Uzbekistan, deeper cooperation provides access to advanced solutions and Northern European distribution channels.
In conclusion, the combination of Finland’s effective governance model, innovation, and environmental responsibility with Uzbekistan’s large-scale reforms creates a strong foundation for joint practical projects in manufacturing, energy, telecommunications, and education. Such a partnership can not only enhance the technological level of Uzbekistan’s economy but also give new quality to Uzbek–Finnish relations – anchored in long-term, sustainable, and mutually beneficial development.

Afzal Artikov,
Chief researcher,
Center for Economic Research and
Reforms under the Administration
of the President of the Republic of Uzbekistan

Numerous scholars and studies have confirmed the connection between the quality of education and the well-being of society. The Nobel Prize winning Gary Becker was one of the first to inquire into the impact of education on economic growth and social development. His research has shown that investing in education can improve productivity and thus economic growth.

According to experts from the Organization for Economic Cooperation and Development, the high level of education, GDP and economic development serve to augment the average life expectancy and improve public health. One should note that stepping up the duration of education by 1 year can increase GDP by 3-6 percent.

Education is considered a crucial issue for Uzbekistan, 60% of the population of whose is young people under the age of 30, with a population increase of 700 thousand a year.

Up until recently, obtaining higher education was the dream of millions of Uzbek youth. In 2016, enrollment in higher education was only 9 percent of all the school graduates, and the number of higher education institutions was 69 (with 9 private). Due to a lack of student loans to finance higher education and support systems for vulnerable segments of the population, many were unable to study failing to pay tuition fees.

There were also problems for youth in getting onboard the higher education. Those willing to obtain one were able to apply only to one institution a year. And if they did not score enough in the admission exams, they had to wait until the next year to reapply to that or another university.

In addition, such factors as taking faculty and students to forced seasonal agricultural work used to have a grave negative impact on the quality of education. So did the insufficient material incentives for the teaching staff due to the extremely low wages.

After the election of Shavkat Mirziyoyev as President of the country in 2016, the system of admission to higher education institutions started to be revised, with overall systemic transformation underway, especially when it came to the quality of education.

First, the organizational and legal framework of the industry has been revised. In particular, the 2030 Concept for Higher Education Development in the Republic of Uzbekistan was approved in 2019 by the corresponding presidential decree.

In 2020, the Oliy Majlis (Supreme Assembly, the national parliament) passed the Education law in a new edition. In accordance with it, the system opened up to market mechanisms, priority was afforded to raising the scale and quality of education to a new level, to studying advanced foreign practices and establishing broad international connections.

Apart from that, adopted in 2023, the new edition of the Constitution introduced a number of new norms on the protection of the honor and dignity of teachers, government concern for their social and material well-being. The upgraded Basic Law also granted the higher education institutions the right to academic self-government, freedom in scientific research and teaching methodologies and approaches.

Second, to be sure, education advancement requires allocation of large sums from the state budget to this area. According to research, a 1% increase in education spending will increase GDP by 0.35%. It is for this reason that the amount of funds allocated from the public budget for the maintenance and development of educational institutions in Uzbekistan has been steadily growing.

In 2023, spending on education accounted for 44 percent of total social expenditures, reaching 61.2 trillion soums.

The rapid growth in the number of public and private universities, as well as branches of foreign ones, and the introduction of market mechanisms in this area have created the basis for expanding the market in educational services. Today there are 210 universities in the country, almost half of them are private (67) and foreign universities (29).

Crucially, the youth are now free to choose. A healthy competitive environment has begun to emerge among the institutions offering higher education. Branches of prestigious foreign universities like Westminster (UK), Webster (US), Management Development Institute of Singapore, Polytechnic University of Turin (Italy) have an important role to play in the implementation of advanced standards in higher education by inviting state-of-the-art certified faculty, making a good use of the latest teaching technologies, innovations and international best practices.

As a result of the enhancement of the higher education market in Uzbekistan, it became possible to boost the coverage in the system from 9 percent of school graduates enrolled in 2016 to 42 percent in 2023. And the launch of correspondence and evening studies at universities has contributed to a sharp increase in the proportion of students over 24 years of age. The total number of university students now exceeds 1.3 million.

Starting from 2019, applicants have been given the opportunity to simultaneously submit documents to several universities and choose an educational institution based on the results of entrance exams and their preferences. This year, building on a relevant presidential decree, exams for admission to universities will take place under the principle “test first, then choose”.

Uzbekistan has created a unique system that provides opportunities to obtain higher education for people in need of social protection and people with disabilities. In particular, the distribution of admission quotas was approved on the basis of an additional two percent state scholarship for persons with disabilities and one percent for graduates of Mehribonlik (Mercy homes, orphanages), children’s villages and family homes in the context of higher educational institutions and forms of education.

It will not be an exaggeration to say that changing society by attracting girls to higher education is a unique path for Uzbekistan. Here one can recall a popular wisdom that if you educate a girl, you educate the whole nation. In order to ensure gender equality, as well as the consistent implementation of the UN Sustainable Development Goals, starting from the 2022-2023 academic year, new educational loans are allocated on preferential terms (interest-free) for training girls and women. As a result, in 2023, interest-free educational loans in the amount of 1,548.6 billion soums were allocated to about 137.4 thousand students.

A procedure has also been established for reimbursement of tuition fees for girls studying for graduate degree at universities. During this time, 20,260 women took a good advantage of this opportunity.

Special emphasis is placed on the issues of training youth from Uzbekistan in prestigious foreign universities. In particular, the amount of funds allocated from the state budget to the El-Yurt Umidi (Hope of the Nation) Foundation for the training of talented youth abroad has been growing. If 200 billion soums were allocated to this fund in 2022, in 2024 the amount reached 500 billion soums. Thanks to the foundation, more than 1,000 young people have received education in respected higher education institutions abroad and today work in various fields. According to the UNESCO Institute for Statistics, students from Uzbekistan ranked fifth in the world in the number of students studying abroad in 2021. The number exceeded 110 thousand. This is also clear evidence of how young people in this country are thirsty for knowledge.

The Uzbekistan-2030 Strategy urges to bringing the level of youth enrollment in higher education to no less than 50 percent, including in at least 10 higher educational institutions in the top 1,000 ranking of the most prestigious universities, and making the way for the country into the top 50 nations by 2030 in the Global Innovation Index.

As a result of reforms over the past period, two universities of Uzbekistan for the first time entered the top 1,000 higher education institutions in the world, compiled by the British company Quacquarelli Symonds (QS). The National Research University “Tashkent Institute of Irrigation and Agricultural Mechanization Engineers” (TIIAME) was named 547^th in the rating, while the Mirzo Ulugbek National University of Uzbekistan secured the 781-790th positions.

The National Research University TIIAME was among the 300 best higher education institutions in the world and among the top three universities in Central Asia in terms of “Academic reputation”, and the National University of Uzbekistan was in the top 200 in terms of “Share of foreign teachers” and took second place among universities in the region.

In addition, 53 higher educational institutions of Uzbekistan were noted in the “THE Impact Rankings” published by the Times Higher Education agency for 2024. Seven of them ended up in the top 1,000. In the ranking, the Tashkent State University of Uzbek Language and Literature came 10th in the world in terms of gender equality.

In short, well aware of the truism that investing into education means investing into your future.

Nodir Tilavoldiev,
Member of the Legislative Chamber of the Oliy Majlis
Republic of Uzbekistan

Modern Central Asia is becoming a space of sustainable growth and mutual trust. The countries of the region demonstrate a strong commitment to building balanced relations with global partners, prioritizing practical initiatives in trade, energy, transport, and innovation. One of the key formats shaping this new architecture is the “C5+1” platform, which unites the Central Asian states and the United States.

Regional Consolidation: Dialogue Based on Equality and Pragmatism

In recent years, the “C5+1” format has evolved from a diplomatic mechanism into an effective platform for coordination and implementation of joint projects. The latest ministerial meeting in Samarkand, attended by the Minister of Investment, Industry and Trade of the Republic of Uzbekistan, Laziz Kudratov, demonstrated a high level of trust and a shared focus on tangible results.

Key topics on the Samarkand agenda included food security, climate resilience, development of green and digital economies, diversification of transport corridors, and deepening industrial cooperation.

Following the meeting, memorandums were signed on decarbonization and digitalization of customs procedures - a step that paves the way for harmonized trade rules, easier exports, and increased investment inflows into the region.

Central Asia: From Fragmentation to an Integrated Economic Space

The figures speak for themselves: the total foreign trade turnover of Central Asian countries has reached $220 billion, almost doubling since 2017, while mutual investments have grown 5.6 times. The region’s combined GDP increased by 40% over the past five years to exceed $406 billion.

These indicators reflect not only growth but also a qualitative shift - from isolated initiatives to a coordinated regional development strategy.

Uzbekistan - Kazakhstan: Industrial and Logistics Core

The Uzbekistan - Kazakhstan partnership exemplifies a new model of integration. Between January and August 2025, mutual trade reached $3.03 billion, up by 15%. Projects exceeding $7 billion are under implementation across engineering, agriculture, construction, and energy sectors. Over 1,100 enterprises with Kazakh capital operate in Uzbekistan, creating jobs and new export niches.

Uzbekistan - Tajikistan: Transport and Energy Bridge

Tajikistan and Uzbekistan are rapidly strengthening railway and energy cooperation. In 2024, cargo traffic between the two countries reached 10 million tons, while regular passenger flights and a joint investment company with a $100 million capital were launched. These are not just numbers - they represent an architecture of trust that enables joint industrial and agricultural clusters.

Uzbekistan - Turkmenistan: Corridors of Growth

Cooperation with Turkmenistan is expanding in energy, logistics, and industry. In 2024, bilateral trade exceeded $1.14 billion, and the Shavat - Dashoguz border zone is evolving into a hub of trade and joint manufacturing. A localization project for repairing Turkmen wagons in Andijan is a vivid example of practical industrial integration.

Uzbekistan–Kyrgyzstan: A “Roadmap” for the Future

The interstate program until 2030 and the Border Regions Council ensure steady progress. From January to August 2025, trade turnover approached $600 million, while Uzbekistan’s exports grew by nearly 80%. New logistics routes are being developed to reduce transport costs and enhance business competitiveness.

“C5+1” as a Catalyst for Development

Participation in the “C5+1” framework gives regional integration new depth - aligning national interests with global sustainability trends.

The United States and regional partners are building long-term cooperation in green energy, resilient supply chains, infrastructure modernization, and human-capital development.

Special attention is given to unified standards for digital trade, environmental management, and logistics technologies, making Central Asia a vital link in Eurasian value chains.

Benefits for the Region and Uzbekistan

For Central Asia, the “C5+1” format provides:

• Investment and technology: opportunities to attract foreign partners for renewable energy, raw-material processing, and digital transformation;
• New markets: expanded export opportunities through unified customs and trade standards;
• Energy security: development of interconnected grids and energy-storage infrastructure;
• Human capital: education, internships, and exchanges with leading global companies.

For Uzbekistan, the advantages are clear:

• Expanded export potential through access to new transport routes;
• Technology localization and industrial partnerships with neighbors;
• Institutional stability and strengthened position as a regional integrator;
• Inflow of direct investment supported by uniform rules and a stable macroeconomic environment.

Conclusion: From Geography to the Economy of the Future

Central Asia is steadily transforming from a “crossroads of geography” into a region of synergy. The “C5+1” format has become a framework connecting the efforts of regional and global partners into a unified development strategy - based on trust, mutual benefit, and sustainable growth.

Throughout the year, the business climate remained in positive territory, with an annual average of 57 points, indicating an overall favorable business environment in Uzbekistan.

The Center for Economic Research and Reforms (CERR) presented the results of its 2025 business climate analysis, based on monthly nationwide surveys of entrepreneurs. Using the collected data, a composite Business Climate Indicator was constructed, reflecting assessments of current business conditions as well as expectations for the next three months.

Dynamics of the Composite Business Climate in Uzbekistan

According to the results of 2025, the annual average value of the Composite Business Climate Index in Uzbekistan amounted to 57 points on a scale from −100 to +100, which is 7% higher than in 2024. The growth was primarily driven by improved assessments of current conditions. The annual average value of the Current Business Conditions Index increased by 22% and reached 47 points.

At the same time, the Expectations Index declined slightly from 68 to 66 points, while remaining at a relatively high level. This reflects a certain degree of caution among enterprises regarding future prospects amid an overall improvement in perceptions of current conditions.

Over the year, the dynamics of the Composite Business Climate Index were uneven. The highest value was recorded in June at 63 points, while the lowest level was observed in January at 52 points. Fluctuations during the year reflected both seasonal factors and businesses’ adaptation to rapidly changing economic conditions.

By the end of the year, a high level of optimism among enterprises persisted. In December, the Business Climate Index stood at 58 points, increasing by 2 points compared to the end of 2024.

Sectoral and Regional Dynamics of the Business Climate Index

From a sectoral perspective, improvements in the business climate were recorded across most sectors of the economy in 2025. In the services sector, the index reached 58 points, representing an increase of 14.7%. In construction, the index stood at 57 points, up by 14.2%, while in industry it reached 54 points, increasing by 6.8%.

In agriculture, the index remained virtually unchanged at 56 points, indicating the persistence of previously established assessments of business conditions in this sector.

From a regional perspective, the annual average Business Climate Index increased compared to the previous year in 11 regions of the republic. In seven regions, the annual average value of the index reached 57 points.

The most pronounced improvement in business climate conditions was observed in Kashkadarya region, where the index increased by 27%, followed by Jizzakh region with a 23% increase and Khorezm region with a 17% increase. In the Republic of Karakalpakstan, growth amounted to 19%.

In Samarkand region, despite a slight decline in the index, the annual average business climate remained in positive territory at 51 points. In Tashkent region, the indicator remained unchanged at 44 points.

Business Expectations Regarding Price Dynamics and Demand

In terms of business expectations, inflationary and market assessments remained moderate in 2025. On average, 23% of companies expected price increases in the near term, which is 2 percentage points lower than in 2024.

During the year, the share of entrepreneurs expecting price increases fluctuated within the range of 18–27%, reaching a peak in April and the lowest levels in September and December. The highest price expectations were observed among enterprises in agriculture and construction, reflecting sector-specific cost structures as well as the impact of seasonal and weather-related factors.

At the same time, assessments of market conditions remained relatively strong. On average, 66% of entrepreneurs expected an increase in demand for goods and services, while 57% of companies planned to expand their workforce. Overall, the results indicate the persistence of positive expectations regarding business activity and employment, alongside more restrained assessments of price dynamics.

Assessments of Demand and Employment

The Employment Index in 2025 amounted to 43 points, corresponding to a 12% increase. The most significant growth was recorded in the services sector at 14%, construction at 17%, industry at 7%, and agriculture at 11%. Throughout the year, employment dynamics remained moderate, with sustained demand for labor.

The Demand Index also showed improvement. Its annual average value reached 48 points, representing an increase of 13%. The largest contribution came from the services sector, where the index increased by 19%, while in construction, industry, and agriculture the Demand Index rose by 6% in each sector. During the year, the index remained relatively stable, with stronger positive assessments in the second half of 2025.

Barriers to Entrepreneurial Activity

Over the course of the year, a gradual reduction in barriers to doing business was observed. According to the results, 60% of entrepreneurs reported that they did not face difficulties in conducting business, which is 6% higher than in 2024.

In industry, problems related to electricity supply decreased by 4%, high tax rates by 3%, and access to financing by 3%.

At the same time, in agriculture and construction, financing-related barriers declined significantly, by 7% and 5%, respectively.

Despite the overall reduction in complaints, financing remained the main obstacle cited by entrepreneurs in construction and industry, reported by 11% of respondents in each sector.

Overall, sectoral data indicate an increase in the share of entrepreneurs who do not face significant constraints, as well as a decline in the importance of financial and infrastructure barriers.

The Business Climate Change Indicator is constructed based on the methodology of the Ifo Institute (Germany). As part of the surveys, company managers assess current and expected changes in business activity based on developments in production, demand, prices, and other indicators.

CERR Sector for the Study of Competitiveness of Economic Sectors and Investment Activity
tel.: (78) 150 02 02 (441)

CERR Public Relations and Media Sector
tel.: (78) 150 02 02 (417)

Introduction: The Significance of President Shavkat Mirziyoyev’s participation in the 80th session of the United Nations General Assembly

The participation of the President of the Republic of Uzbekistan in the 80th session of the United Nations General Assembly (UNGA) this September held profound political and historic significance not only for our country but for the entire region. Speaking from this prestigious platform, which gathers heads of state from across the globe, Uzbekistan raised critical issues including sustainable development, combating climate change, ensuring food security, and the efficient management of water resources.

Through his address at the United Nations, a premier global institution, our President further solidified Uzbekistan’s international standing and reputation as a proactive and responsible state. Notably, by showcasing the ecological and innovative initiatives being implemented in the Aral Sea region, Uzbekistan demonstrated its openness to global cooperation in addressing pressing environmental challenges.

Another significant aspect of this participation is the integration of Uzbekistan’s international environmental initiatives into the global political agenda, highlighting the Aral Sea region as an open platform for advancing climate technologies.

During the visit, the initiatives concerning the Aral Sea region received significant attention from the international community.

During his address at the 80th session of the United Nations General Assembly, our President paid special attention to the environmental disaster in the Aral Sea region and the ongoing initiatives aimed at mitigating its consequences. This issue has garnered significant focus from the international community, reaffirming that the Aral Sea crisis is recognized not only as a regional challenge but also as a global environmental concern.

Uzbekistan’s initiative to transform the Aral Sea region into a hub of sustainable development and innovation has received strong support from international partners. In particular, significant opportunities were highlighted for implementing joint projects in areas such as green energy, water-saving technologies, ecotourism, and the restoration of biodiversity.

Thus, the raising of the Aral Sea issue on the prestigious platform of the United Nations during the visit served as a significant political and practical foundation for strengthening global cooperation and attracting increased attention from international donors and organizations.

Transforming the Aral Sea region into a hub for global climate technologies.

The challenges arising from the desiccation of the Aral Sea serve as a profound lesson for the entire world. In response, Uzbekistan aims to transform the Aral Sea region into a “global laboratory” by implementing advanced practices in green energy, water-saving technologies, biodiversity restoration, and climate change adaptation.

Such an approach not only addresses regional challenges but also offers an effective model for the international community. The projects being implemented in the Aral Sea region can subsequently serve as a replicable framework for other areas facing the impacts of climate change.

On May 18, 2021, during the 75th Session of the United Nations General Assembly, our President put forward the initiative to designate the Aral Sea region as a hub for ecological innovations and technologies. This proposal received enthusiastic support from the United Nations and the international community, and was unanimously adopted by all member states during the General Assembly plenary session. This resolution underscores Uzbekistan’s consistent and steadfast commitment to addressing the Aral Sea crisis and mitigating associated risks through a principled and effective approach.

The Aral disaster and its lessons for humanity.

The Aral Sea disaster is recognized worldwide as one of the greatest environmental catastrophes in human history. Once the fourth-largest lake in the world by surface area, the Aral Sea has almost completely dried up over the past half-century. This tragic development has dealt a severe blow to the regional climate, biodiversity, public health, and economy.

The drying up of the Aral Sea stands as a vivid example of human intervention that was not in harmony with nature. Excessive and inefficient use of water in irrigation, coupled with ineffective irrigation systems and planning errors, led to this major environmental disaster.

This tragedy underscored the necessity for humanity to use natural resources efficiently and wisely, highlighting the importance of developing water supply and agriculture solely based on sustainable technologies. At the same time, it clearly demonstrated that ensuring environmental security requires global solidarity and close international cooperation.

The imperative of sustainable development in the region.

The Aral Sea region today represents one of the most critical challenges for environmental, social, and economic sustainability in Uzbekistan and the broader Central Asian region. The limitations of natural resources, issues related to water supply, ongoing desertification processes, and declining living standards underscore the urgent need to implement a comprehensive sustainable development strategy in this area.

The necessity for sustainable development in the Aral Sea region is grounded in several key factors. Primarily, environmental security remains a pressing concern: frequent dust storms, soil degradation, and the loss of biodiversity pose direct threats to public health and the quality of life. Additionally, economic considerations are paramount, as the modernization of agriculture — the main source of income for the local population — requires the adoption of water-saving and innovative technologies.

Ensuring social sustainability requires a comprehensive set of measures aimed at creating new employment opportunities, increasing household incomes, and mitigating the risks of environmental migration. Furthermore, given that the challenges in the Aral Sea region transcend regional boundaries and hold global significance, addressing them necessitates reliance on international cooperation and partnership.

Opportunities of the Aral Sea region as an international innovation hub and platform for cooperation.

It is widely recognized that Uzbekistan has undertaken extensive and positive national efforts to combat the adverse environmental and public health impacts caused by the drying up of the Aral Sea. Since the early years of independence, the population of the White Aral Sea region has consistently felt the substantial support of the Uzbek government. The Government of Uzbekistan remains committed to paying continuous attention to the social welfare of the communities residing in the Aral Sea area.

Today, the Aral Sea region serves as an international innovation hub, playing a crucial role in promoting sustainable development in an area severely affected by ecological crisis. Through scientific, innovative, and practical projects, the center actively advances comprehensive work in key sectors including environmental protection, water resource management, agricultural technologies, energy, climate adaptation, and international cooperation.

In order to enhance the activities of the Center and further develop ecological and innovative technologies in the Aral Sea region, the Aral Sea International Innovation Center was transferred under the jurisdiction of the Ministry of Ecology, Environmental Protection, and Climate Change of the Republic of Uzbekistan, in accordance with Presidential Decree No. PQ-171 dated May 31, 2023.

In accordance with Presidential Decree No. PQ-5202 dated July 29, 2021, a modern laboratory, business accelerator training center, and technopark building, valued at 12.4 billion Uzbek soms, were completed and commissioned in 2024 within the Center’s premises. The laboratory is equipped with a plant seed gene bank and serves as a crucial scientific and innovative platform for preserving biodiversity in the region, protecting both native and introduced species, and achieving high efficiency in agricultural practices.

Currently, efforts are underway to commence full-scale operations at the facility, enrich the gene bank with an extensive seed collection, organize scientific research, and enhance the expertise of local specialists. This initiative not only supports sustainable agricultural development in Uzbekistan but also plays a crucial role in ensuring food security amid climate change and advancing international scientific cooperation across the entire Central Asian region.

Over the past period, the Center has established effective cooperation with a range of international and local organizations, as well as research institutes, in conducting scientific research and implementing projects. In particular, agreements and memoranda of understanding have been signed with over 70 foreign and domestic entities. Currently, 20 scientific-practical and innovative projects with a total value of 23.9 billion Uzbek soms are being carried out. These projects encompass alternative green energy, aquaculture, intensive horticulture, medicinal plant cultivation, resource-saving technologies, and social programs.

The Center’s activities are primarily focused on improving the living standards of the population, introducing and developing salt- and drought-tolerant crops, and implementing resource-efficient technologies. At the same time, it carries out scientific-practical and innovative initiatives aimed at restoring ecosystems, preserving biodiversity, and enhancing the quality of life in collaboration with leading international organizations. Among these partners are the United Nations Development Programme (UNDP), the International Center for Biosaline Agriculture (ICBA, UAE), the Xinjiang Institute of Ecology and Geography (China), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Global Green Growth Institute (GGGI), the Korea International Cooperation Agency (KOICA), the Japan International Cooperation Agency (JICA), and other prestigious institutions.

The “Samanbay” (24.3 hectares) scientific-production site in Nukus district and the “Moynoq” (106 hectares) site in Moynoq district serve as the primary experimental and testing bases of the Center. At these sites, experimental research and monitoring activities are being conducted in cooperation with foreign and local organizations. Additionally, the Center hosts joint laboratories established in partnership with international collaborators, as well as its own in vitro, soil, water, and plant biotechnology laboratories. These infrastructures support the deepening of scientific research carried out in the experimental fields and enhance the effectiveness of ongoing studies.

Each of the ongoing projects is aimed at creating long-term solutions for the Aral Sea region. Thanks to its innovative approach and international cooperation, the Aral Sea International Innovation Center is gradually becoming the primary platform in Central Asia for scientific research, technological development, and sustainable development.

In its future plans, the Aral Sea International Innovation Center aims to ensure environmental sustainability by implementing innovative eco-technologies, including desertification control measures and smart agriculture solutions.

Simultaneously, to strengthen scientific research activities, plans have been made to establish modern laboratories, a business accelerator, a training center, a technopark, experimental sites, and data analysis centers.

The Center aims to implement large-scale joint projects by further expanding cooperation with international organizations. Additionally, one of the Center’s priority directions is developing programs focused on fostering innovative ideas, creating startups, and enhancing professional skills for farmers, entrepreneurs, local communities, youth, and women.

Conclusion

The Strategic significance of the initiative to transform the Aral Sea region into a global hub for climate technologies.

The initiative to transform the Aral Sea region into a global hub for climate technologies holds strategic significance not only on a regional scale but also worldwide. Its core essence lies in ensuring environmental sustainability, conserving water resources, mitigating desertification processes, and restoring biodiversity.

At the same time, the introduction of solar and wind energy, modern irrigation systems, and innovative technologies will open broad avenues for the development of a green economy in the region. This initiative will strengthen cooperation with international organizations such as the United Nations and the Green Climate Fund, creating new employment opportunities for the local population and enhancing overall prosperity.

Most importantly, the Aral Sea region’s experience will serve as an effective model in addressing climate change and water resource challenges on a global scale in the future.

Director of the Aral Sea International Innovation Centre under the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan

B.S.Khabibullaev

The second day of the visit of the Head of our state to Navoi region began with a joyful event. A ceremony dedicated to new projects was held with the participation of representatives of the public.

In recent years, entrepreneurship in Navoi region has been actively developing, and the interest of investors in the region continues to grow. In 2023 alone, the region produced more than 101 trillion soums worth of industrial products and exported $648 million. Foreign investments worth about $478 million were also absorbed, and the foreign trade turnover of the region amounted to about $1.3 billion. More than 300 foreign enterprises operate in the region, and their number will continue to increase.

Fifteen new projects were announced at the ceremony.

In particular, the projects on extraction and processing of oil shale in Kanimekh district, construction of a 300 megawatt solar photovoltaic station and a 75 megawatt electricity storage system in Karmana district, production of technical gases in Navoi city, processing of marble in Gazgan and granite in Zarafshan, extraction and enrichment of kaolin in Uchkuduk district, and production of fish feed in Khatyrchi district were launched. 

Enterprises were launched to produce potassium sulfate and sulfuric acid in Karmana district, cotton pulp in Navoi city, and granite processing in Nurata district.

The total cost of the 15 projects is $3.6 billion. More than 7 thousand jobs will be created.

President Shavkat Mirziyoyev pressed a symbolic button and gave start to the construction and operation of the new projects.

Economic cooperation between Uzbekistan and Turkiye is carried out within the framework of signed bilateral agreements and established intergovernmental mechanisms, and is supported by regular high-level contacts. In addition, Uzbekistan and Turkiye cooperate within the framework of the Organization of Turkic States.

In 2023, the President of the Republic of Turkiye paid an official visit to Uzbekistan, during which the Uzbekistan–Turkiye Business Forum was held. As a result of the visit, a substantial package of intergovernmental and commercial agreements was signed, covering key sectors of the economy with a total value of around $10 bn.

In June 2024, the President of the Republic of Uzbekistan paid an official visit to Turkiye. During the visit, a meeting of the High-Level Strategic Cooperation Council was held, resulting in the signing of an important package of agreements, protocols, and roadmaps aimed at further expanding trade, economic, and investment cooperation.

Mutual trade between Uzbekistan and Turkiye operates under a most-favoured-nation regime, and a Preferential Trade Agreement has also been signed.

Turkiye is among Uzbekistan’s leading trade and economic partners, ranking 4th in terms of total trade turnover and imports, and 5th in terms of Uzbekistan’s exports.

In 2025, Turkiye’s share in Uzbekistan’s foreign trade turnover amounted to 3.7%, including 3.4% of exports and 4.0% of imports.

Dynamics of Bilateral Trade

Over the period 2017–2025, bilateral trade between the two countries increased by 1.9 times and reached $3.0 bn by the end of 2025. Exports to Turkiye grew by 1.3 times to $1.1 bn, while imports from Turkiye increased by 2.8 times to $1.9 bn.

At the same time, annual growth rates of imports from Turkiye consistently exceeded export growth rates, resulting in a widening trade deficit to –$751.6 mn.

Uzbekistan’s exports to Turkiye in 2025 comprised the following categories: industrial goods (copper products, yarn, etc.) amounting to $511.4 mn (45%); miscellaneous manufactured articles (mainly precious metal products) at $152.3 mn (13.4%); chemical products (polymers, fertilizers, etc.) at $124.3 mn (11%); machinery and transport equipment at $80.1 mn (7%); food products (dried fruits and nuts) at $63.0 mn (5.5%); petroleum products (gasoline, gas oil) at $36.6 mn (3.2%); non-food raw materials at $18.0 mn (1.6%); as well as services, primarily transport services, at $149.9 mn (13.2%).

Imports from Turkiye in 2025 were dominated by the following categories: machinery and transport equipment at $674.6 mn (35.7%); chemical products at $408.9 mn (21.7%); industrial goods at $390.2 mn (20.7%); miscellaneous manufactured articles at $136.2 mn (7.2%); food products at $94.6 mn (5.0%); petroleum products (lubricating oils) at $30.2 mn (1.6%); non-food raw materials at $30.1 mn (1.6%); and services at $117.4 mn (6.2%).

Investment Cooperation

The two countries have signed an Agreement on the Promotion and Reciprocal Protection of Investments. As of 1 January 2026, 2,137 enterprises with Turkish capital operate in Uzbekistan, accounting for 11.8% of all active enterprises with foreign investment. Of these, 496 are joint ventures and 1,641 are wholly owned by Turkish investors.

Total direct investments and loans from Turkiye to Uzbekistan’s economy over 2017–2025 amounted to $9.0 bn, including $2.6 bn attracted in 2025 alone.

Turkish capital continues to expand its presence in Uzbekistan, primarily in priority sectors such as energy, manufacturing, agriculture, and construction.

In particular, investments in the power sector are linked to the construction by the Turkish company Cengiz Enerji of a 240 MW thermal power plant in Tashkent Region and a similar 220 MW plant in Syrdarya Region.

Prospective Areas of Economic Cooperation

An analysis of Turkiye’s import structure indicates opportunities to increase Uzbekistan’s exports to Turkiye, particularly in product categories that Uzbekistan already supplies to global markets. These include polymers (Turkiye’s imports amounting to $2.8 bn), copper wire ($1.4 bn), fertilizers ($1.1 bn), legumes ($1.0 bn), zinc ($857 mn), copper tubes ($360 mn), textile products, particularly T-shirts and undershirts ($373 mn), knitted fabrics ($158 mn) and other manufactured goods.

Promising areas for cooperative engagement between Uzbekistan and Turkiye include manufacturing industries – especially textiles, electrical engineering, and machinery – chemical industry, agriculture, healthcare, education, as well as projects aimed at preserving and promoting cultural heritage. There are also prospects for joint infrastructure projects, including the construction of water treatment facilities.

In agriculture, particular attention is paid to the selection and cultivation of domestic pistachio varieties and the development of pistachio farming. Agreements have been reached on implementing joint research projects focused on cultivation techniques and adaptation.

A significant emphasis is placed on expanding cooperation in education, including the involvement of Turkish lecturers and specialized professionals in educational initiatives in Uzbekistan, experience exchange, and human capital development.

At the same time, areas of cooperation in healthcare are being discussed, focusing on the development of primary healthcare, the introduction of medical insurance systems, sector digitalization, improvement of service quality, and modernization of the pharmaceutical industry.

Tourism has been identified as a separate and promising area of cooperation. Currently, 12 hotels in Uzbekistan operate with the participation of Turkish partners, along with more than 100 joint restaurants, reflecting sustained interest by Turkish businesses in the country’s tourism sector.

In 2025–2026, with the support of Turkish investors, 11 hotel projects with a total value of $167.9 mn are planned in Bukhara, Samarkand, Jizzakh, Fergana, and Tashkent regions.

Transport connectivity is also expanding significantly. The number of weekly flights between Uzbekistan and Turkiye has increased from 62 in 2023 to 106 at present, creating additional conditions for the growth of mutual tourist flows and the expansion of travel routes.

A key initiative in tourism is the “Million + Million” programme, aimed at attracting at least one million tourists to each country. The programme envisages a further increase in flight frequency and the expansion of tourist routes between Uzbekistan and Turkiye.

Conclusion

In recent years, there has been steady growth in bilateral trade, investment volumes, the number of enterprises with Turkish capital, and the breadth of economic cooperation.

At the same time, Uzbekistan’s exports to Turkiye are still dominated by raw materials and intermediate goods used in Turkiye’s industrial sectors. Against this background, the key task for the coming years is to move from a “raw materials–finished goods” trade model toward the formation of joint production chains with higher value added.

In this context, Turkiye can play a role for Uzbekistan not only as one of its principal trading partners, but also as a contributor to Uzbekistan’s industrial development and to the expansion of its participation in global value chains.

Edvard Romanov
Center for Economic Research and Reforms

The President got acquainted with the construction of transportation infrastructure and engineering communications in New Tashkent.

As is known, the city under construction is designed for 1 million residents, which requires appropriate infrastructure with a view of long-term operation. In this regard, major underground engineering works are underway, laying the foundation for future grandiose constructions.

It is planned that infrastructure, daily life and ecology will harmoniously coexist in the new city. For instance, it is planned to create an environmentally friendly transportation system - metro and electric buses will be closely interconnected. For transportation 14 tunnels will be built, underground parking lots for 100 thousand cars will be equipped. In addition, all conditions will be created for barrier-free and safe movement of pedestrians and cyclists.

At one of the future intersections, foundation pouring for columns and waterproofing works are already underway. The President reviewed these processes. Recommendations were given on the use of high-quality and resistant materials.

Currently, the construction of one-section and two-section engineering collectors has begun, through which all centralized heating, water, electricity and telecommunications networks will pass underground.

The city will apply “smart” technologies in line with modern urbanization requirements. For the first time in the country, a “trigeneration” plant will be built here. Wastewater will be processed using modern technologies, and the resulting water will be used for irrigation and technical needs.

The President was also presented with the projects envisioned within the framework of the first stage of construction of New Tashkent. The winners of the auctions at which land plots were offered presented their investment initiatives.

Many local and foreign investors are interested in New Tashkent. Within the framework of the first phase, 11 mixed-use complexes, as well as hotels and restaurants have already been launched at a total cost of $490 million. Residential and commercial facilities as well as social institutions will make the neighborhood lively and attractive. Meanwhile, hotels and restaurants built in a unique architectural style will provide high-class service to guests and turn the city into a tourist center.

Next year, land plots for subsequent phases will be put up for bidding. Each phase will present new investment opportunities and projects. This will not only contribute to the further development of the city, but also create many new jobs and support local businesses.

In general, it is planned to create about 200 thousand high-income jobs in New Tashkent through the introduction of innovative technologies. Technoparks, IT-park, educational and medical clusters will be created for this purpose.

At present, Uzbekistan is entering an entirely new stage of development, which is vividly demonstrated by the comprehensive reforms being carried out in all spheres. Profound transformations in domestic and foreign policy, socio-economic life, cultural and spiritual-educational fields are reflected in the lifestyle of our people.

At the initiative of the President of the Republic of Uzbekistan Shavkat Mirziyoyev, and based on the unity of the people, the “Uzbekistan – 2030” Strategy was adopted, serving as a solid legal and practical foundation for national renewal. The reforms implemented under this program create conditions for improving the well-being of citizens and ensuring the sustainable development of the state and society.

In recent years, special attention has been paid in our country to strengthening the atmosphere of mutual respect, solidarity and cooperation among various religious confessions, supporting intercultural dialogue, and ensuring peace and harmony, which has been widely recognized by the international community.

It is noteworthy that on 19 September 2017, at the 72nd session of the UN General Assembly in New York, the President of Uzbekistan Shavkat Mirziyoyev put forward an initiative which found its practical embodiment in the adoption, at the following session of the UN General Assembly in 2018, of a special resolution entitled “Enlightenment and Religious Tolerance”. The draft prepared by Uzbekistan was unanimously approved by all UN member states.

This resolution gained particular significance as it placed education and enlightenment at the forefront as an effective means of countering global threats – extremism and terrorism – especially at a time of growing intolerance and uncompromising attitudes towards representatives of different religions and beliefs.

As a logical continuation of this work, in 2022 the international forum “Dialogue of Declarations” was held with the aim of implementing the principles and provisions of the resolution “Enlightenment and Religious Tolerance”, as well as achieving the goals of the National Human Rights Strategy of the Republic of Uzbekistan, approved in 2020.

The main outcome of this meeting was the adoption of the “Bukhara Declaration,” which supplemented earlier declarations adopted in Marrakesh, Mecca, Jakarta, Potomac and Punta del Este. This document became an important contribution of Uzbekistan to strengthening the ideas of religious tolerance and interethnic harmony at the international level.

It is important that this dialogue has become a regular tradition: on 10–13 September of this year, the second international forum “Dialogue of Declarations” is scheduled to take place in Tashkent and Samarkand.

This forum represents an integral part of the international community’s efforts to ensure freedom of religion and to strengthen interfaith dialogue, as well as a demonstration of Uzbekistan’s readiness to actively promote at the global level its firm adherence to international obligations in the field of human rights and freedoms.

It should be emphasized that while in many parts of the world fundamental rights – to life, education, work, self-realization, and freedom of religion – are being violated, in Uzbekistan representatives of more than 130 nationalities and 16 confessions live peacefully on the basis of tolerance. The ability of people of different faiths to freely and safely perform their religious rites is a key factor of social stability.

Currently, there are 2,373 registered religious organizations in Uzbekistan, of which 2,174 are Islamic and 199 are non-Islamic. Over the past eight years, 130 religious organizations have been registered, including 3 higher and 1 secondary special Islamic educational institutions, 105 mosques and 25 non-Islamic organizations of various confessions.

The legal foundation for these transformations is the Concept of State Policy on Ensuring Freedom of Conscience of Citizens and in the Religious Sphere, adopted by the Law of the Republic of Uzbekistan No. 1037 of 25 February 2025.

The Concept affirms the right to freedom of conscience and the constitutional principle of the secular nature of the state, and defines the goals, objectives, principles and priority directions of state policy in the religious sphere. It was developed on the basis of the rich national-historical experience of statehood and universal values, and is aimed at ensuring a stable environment for the progressive development of Uzbekistan’s multiethnic and multi-confessional society on the basis of democracy, secularism, freedom, equality, social justice and solidarity.

Within a short period, major scientific and educational institutions were established, such as the Center of Islamic Civilization in Uzbekistan, international research centers named after Imam Bukhari, Imam Maturidi, Imam Termizi, Bahauddin Naqshband, the International Islamic Academy of Uzbekistan, the School of Hadith Studies in Samarkand, and the Mir Arab Higher Madrasa in Bukhara.

These institutions contribute significantly to ensuring a healthy spiritual environment in society, educating the younger generation as modern-minded individuals worthy of their great ancestors, in line with the noble universal idea “Enlightenment against Ignorance”.

If in 2017 the country had only 3 higher (1 Islamic and 2 non-Islamic) and 9 secondary special religious educational institutions, today their number has reached 16, of which 6 are higher institutions.

To further develop this sphere and elevate it to a new stage, a Presidential Decree “On measures to further strengthen guarantees of the right of citizens to freedom of conscience and to bring reforms in the spiritual-educational sphere to a new level” was signed. This document was positively received not only by representatives of the religious-educational sphere, but also by the wider public.

It is also worth noting that in recent years anniversaries and events of non-Islamic confessions have been held at a high level, alongside Islamic ones. These include the 145th (2017) and 150th (2021) anniversaries of the Russian Orthodox Church Diocese of Tashkent and Uzbekistan, the 120th anniversary of the Armenian Apostolic Church (2023), the 25th (2018) and 30th (2023) anniversaries of the Bible Society of Uzbekistan, the 200th anniversary of the birth of Baha’u’llah (2017), the 200th anniversary of the birth of the Bab (2019), and the 100th anniversary of the passing of ‘Abdu’l-Baha (2022). These events are vivid examples of peace and tolerance in our country.

At the same time, special attention has been paid to enabling believers of various religions to make pilgrimages abroad. In particular, nearly 500,000 citizens have performed Hajj and Umrah, and more than 10,000 people have visited holy sites in Israel, Russia, Georgia, Turkey and other countries.

In conclusion, it should be noted that for thousands of years Uzbekistan has been an integral part of the Great Silk Road, making a worthy contribution to the development of world civilization. Trade, science and cultural centers here have always flourished, while tolerance, hospitality and respect for representatives of different cultures have been key factors of progress.

Today, the traditions and customs of different peoples in Uzbekistan continue to develop in harmony. The consistent policy in the spiritual-educational sphere pursued under the leadership of the President of the Republic of Uzbekistan Shavkat Mirziyoyev serves as an important foundation not only for ensuring peace, stability and harmony in our country, but also for their promotion globally.

The broad participation of representatives from different countries in the upcoming second international forum “Dialogue of Declarations” is clear evidence of the high international recognition of Uzbekistan’s state policy in ensuring freedom of religion and interfaith harmony.

Davronbek Maksudov,

First Deputy Chairman

of the Committee on Religious Affairs

Despite its limited access to the world's major ports, Uzbekistan can fully develop its transportation and logistics industry through the formation of land transport corridors, developing them throughout the Eurasian region. Being located in the center of the crossroads of trade routes during the Great Silk Road, Uzbekistan has a unique opportunity to become an important provider of logistics of cargo flows between China and Southern Europe, on the one hand, and the Indian Peninsula and CIS, Northern Europe, on the other hand.
Landlocked countries account for less than 1% of world exports. Moreover, the share of Central Asian countries in the global export of transport services is very small and is represented in the following proportions: Uzbekistan, which has access to the sea only through two countries – 0.1%, Kazakhstan – 0.3%, Tajikistan – 0.007%, Kyrgyzstan – 0.03%.
However, the transport complex of Uzbekistan maintains a dominant position in foreign trade in services and is one of the main sources of foreign currency inflow into the country. Transport services in the republic form 43% of the total volume of the country's service exports and 65% of the balance of foreign trade in services. Uzbekistan's transport service exports in 2022 amounted to $2.2 billion, and the positive balance of foreign trade in transport services amounted to $1.7 billion.


Figure 1. Uzbekistan’s share in global exports of transport services in 2022, %


Calculated according to UNCTAD and Statistics Agency of the Republic of Uzbekistan
One of the main problems of Uzbekistan's international freight transport is the underutilization of its export and transit potential, which reduces revenues from the export of transport and logistics services. For example, when comparing actual exports in tons, Uzbekistan is behind Russia by 20 times, Turkey by 10 times, and Kazakhstan by 9 times.
In 2023, the volume of interstate cargo transportation in the Republic of Uzbekistan amounted to 62 million tons, which is 16% higher than in 2022. The largest share in the volume of export-import cargo transportation of the republic falls on Kazakhstan (30%), to a lesser extent on Russia (26%), China (10%), and Afghanistan (4%). Rail transport accounts for the largest share (76%) of Uzbekistan's international cargo transportation (export, import, and transit). The export of transport services includes the transit of goods through the territory of Uzbekistan with a total share in the export of railway services of up to 45%.
The unrealized transit crossroads of Eurasia
One of the main global logistics trends is trade between China and the EU. According to the ERAI review, in 2023, the trade turnover between them amounted to 738 million euros, and according to EUROSTAT exceeded 104 million tons. In the current realities, rail transportation between Europe and China is carried out along the Eurasian route through the territories of Kazakhstan, Russia, Belarus; Mongolia and Russia (Naushki border crossing), as well as along the Trans-Caspian International Transport Route – TITR (Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea).
Part of the cargo flows that previously passed through the northern corridor has been redirected to TITR. However, the Eurasian route continues to occupy a leading position. In 2023, a total of 674 thousand TEU passed along this route, which is 1.1% less than in 2022 (681 thousand TEU), but at the same time, in the first half of 2024, the volume of container traffic by China-Europe trains along TITR increased by 12.8% with a volume of 196.6 thousand TEU.
As can be seen, Uzbekistan does not fit into the list of major transit countries between China and the EU in the "Eurasian" and "Trans-Caspian" directions and claims only a part of the target markets mainly in direction along the Southern Corridor through Turkmenistan, Iran, and Turkey.
So, a limited number of international transport corridors pass through the territory of Uzbekistan. The main countries forming the transit of Uzbekistan are neighboring Afghanistan, Kazakhstan, Tajikistan, and Kyrgyzstan, as well as Russia, which is considered an important trading partner for the Central Asian countries. The transport isolation of the region, undiversified transport routes, and limited export deliveries mainly in the northern direction lead to a loss of profit due to the sale of domestic goods mainly to neighboring countries at a fairly low cost.
Transit Priorities
To sell domestic products at competitive world prices, Uzbekistan needs to develop additional export trade routes to other countries, such as China, the Asia-Pacific region, the Middle East, India, Pakistan, and others. This requires competitive and efficient transport and transit corridors that allow for increasing the volume of transit cargo through the Republic of Uzbekistan.
Therefore, the priority directions identified by 2030 for the development of international transport corridors and bringing the volume of transit traffic through the territory of the republic to 16 million tons include the task of increasing revenues from the export of transport services. The key task in this case is to increase the volume of multimodal cargo transportation in the directions of China – Kyrgyzstan – Uzbekistan (Kashgar–Irkeshtam–Osh–Andijan–Tashkent) and Uzbekistan – Afghanistan – Pakistan (Termez – Hairatan – Logar – Karachi).
China - Kyrgyzstan - Uzbekistan. The volume of cargo transportation of the PRC with such countries as Turkey, Iran, Turkmenistan, Afghanistan, and Pakistan in 2023 amounted to almost 50 million tons, with the main volume of cargo transportation carried out by sea transport. Studies have shown that it is possible to attract part of the cargo to the "China–Kyrgyzstan–Uzbekistan" route, in the amount of about 10 million tons, and with the stable organization of cargo transportation along the route, the volume of cargo transportation by 2040 may increase by 4 times.
Uzbekistan – Afghanistan – Pakistan. The geographical proximity to Afghanistan, and further south to Pakistan and India, gives Uzbekistan the opportunity to unlock its existing potential and provide cargo transportation services in export, import, and transit traffic in the direction of South Asian countries (Afghanistan, Pakistan, and India), without competing for existing transport and trade corridors. Therefore, Uzbekistan is extremely interested in trade and transport cooperation with Afghanistan and in the implementation of the Trans-Afghan Railway project "Uzbekistan–Afghanistan–Pakistan." This road will allow establishing a direct rail link between Uzbekistan and Pakistan through the territory of Afghanistan with further access to the ports of the Indian Ocean.
The importance and effectiveness of the "Uzbekistan–Afghanistan–Pakistan" (UAP) project can be significantly increased if it is implemented in parallel with the project of building the "Uzbekistan – Kyrgyzstan – China" (CKU) railway line, which is the shortest way to connect China with Pakistan and India and will allow a multiple increase in the volume of traffic from/to China to the countries of Central and South Asia.
In this regard, within the framework of two strategic projects UAP and CKU, the ongoing activities on formation of new uninterrupted perspective multimodal transport corridors in the region are relevant. In November 2023 in Tashkent within the framework of the ECO Ministerial Meeting the Protocol of the multilateral meeting on establishment of the international multimodal route between Asia-Europe through “Uzbekistan-Turkmenistan-Iran-Türkiye”, was signed.

In November 2023, a Memorandum on mutual Understanding on the creation and development of international transport corridor “Belarus-Russia-Kazakhstan-Uzbekistan-Afghanistan-Pakistan” with access to the ports of the Indian Ocean was signed in Tashkent. In April of this year, Termez hosted meetings of transportation agencies and railway administrations of the countries-participants of this corridor, which resulted in the adoption of the Road Map, including the main activities for further development of the corridor.
It should be noted that the abovementioned documents are open for other interested countries to join the transport corridors.
Multifaceted Transport Policy
It should be noted that the policy of forming international transport corridors in Uzbekistan is somewhat different from the policies of several other countries and is aimed at attracting as many countries as possible to the active development of a branched network of transport corridors that ensure efficient foreign trade cargo transportation. As emphasized by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, at the SCO Summit in Astana on July 4 of this year, "the multivariance of transport corridors is the most important condition for the sustainable development of our entire region."
However, the effective functioning of various corridor options is hindered by the lack of unified Cargo Transportation Rules, a unified Transport Document Standard that would be used on all types of transport, as well as the absence of digital platforms for providing customers with freight transportation services remotely from anywhere in the world. All this slows down the transport integration of Asian countries in the context of developing routes between Central and South Asia, and China, on the one hand, and the integration of Asian countries with European communications on the other.
To solve the problems of different legal and technical standards in freight transportation between European and Asian countries, which hinder the full-fledged transportation of goods without delays, it makes sense to develop new services for logistics and cargo transportation market participants, while applying modern technologies.
These include the production of universal wagons with variable gauge axle systems at the country's industrial facilities, with their further use both in Uzbekistan and southern countries, China and others, as well as the development of a digital platform for online registration of cargo transportation and transportation documents, which will lead to additional revenues from the export of transport services.
In this regard, the initiative of the President of Uzbekistan Shavkat Mirziyoyev, announced in June at the OTS Summit on the formation of a Council of Railway Administrations within the framework of the organization and the placement of its directorate in Tashkent, is relevant. The Council could act as a regulator for the integration of the railways of China, the Asia-Pacific region, South and Southeast Asia with the countries of Central Asia, the Caucasus, and the EU.
To assess the prospects for the coordinated development of transport corridors, a forecast of foreign trade volume was made based on an analysis of panel data using a combined model of two directions of international cargo transportation: China-EU and China-CA. The results of this forecast showed that by 2050, the volume of trade between China and the EU will increase by 4.5 times compared to 2023, and between China and CA - by 5 times. At the same time, the total volume of trade between South Asian countries (India and Pakistan) with trading partners (EU, Russia, China, Belarus, Kazakhstan, Uzbekistan, and Turkmenistan) will increase by 3.8 times compared to 2023.

In the near future, a clearly defined strategy for integrating Central Asian countries into the international transport network can help solve the region's problems and lead to an increase in the export of transport and logistics services and attract cargo flow, and later passenger flow, to the territory of the Asia-Pacific region, South and Central Asia. As the President of Uzbekistan Shavkat Mirziyoyev said: "We are open to cooperation and ready to become a reliable partner in creating new transport corridors and integration projects."

Dildora Ibragimova,
Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan

The text of the article is in Uzbek!