Legal alerts
Uzbekistan Introduces Legal Framework for Pledging Agricultural Land Lease Rights
Uzbekistan has introduced a new legal framework that allows farmers and agricultural enterprises to use their lease rights to farmland as collateral when obtaining bank loans.
The regulation establishes the procedure for pledging lease rights to agricultural land as loan security. It enables lessees to use their leasehold interests to access credit resources more easily, strengthening investment potential and improving productivity in the agricultural sector.
Under the new rules, lease rights to agricultural land may be pledged to banks or other financial institutions as collateral without the consent of the lessor, provided that such an arrangement is permitted by law or by the lease agreement. The regulation sets out the mechanisms for formalizing pledges, the satisfaction of creditor claims, and the sale of pledged lease rights through open auction in cases of default.
At the same time, the regulation clearly defines cases where the pledge of lease rights is not permitted. Lease rights cannot be used as collateral if the land:
is subleased;
is under a lease agreement that has expired, been terminated, or is under dispute (including court proceedings, investigation, or inquiry);
is subject to contractual restrictions prohibiting pledge;
has unregistered lease rights or unregistered amendments to such rights;
contains unauthorized or illegally occupied plots; or
falls under other restrictions established by law.
The pledge is provided to the lending institution based on the lease term and the market value of the land plot. Importantly, the term of the land lease must exceed the loan term by at least five years, ensuring stability and minimizing credit risks for lenders.
Commercial banks and microfinance institutions are expected to adapt their internal procedures to reflect this new mechanism, facilitating access to financing for agricultural producers.
The reform aligns with Uzbekistan’s broader strategy to enhance land productivity, attract investment into the agricultural sector, and create favorable conditions for sustainable rural development.
Special Tax Regime for Foreign Citizens in Uzbekistan
Uzbekistan is introducing a new mechanism aimed at attracting foreign individuals and their families by offering a preferential personal taxation framework. According to a recently adopted presidential act, beginning from early 2026, foreign citizens will be able to obtain a special tax status granting exemption from personal income tax on income derived from sources outside Uzbekistan.
Scope and Purpose
The special tax regime is designed to enhance the country’s investment and human capital potential by encouraging skilled professionals, entrepreneurs, and investors to establish a tax presence in Uzbekistan. The regime provides a simplified process for recognizing foreign individuals as tax residents while allowing them to retain global income earned abroad without being subject to domestic taxation.
Eligibility Criteria
To qualify for the special tax status, a foreign citizen must meet two basic conditions:
Residence or tenancy – the individual must own or rent residential property within Uzbekistan; and
Physical presence – the individual must be physically present in the country for a cumulative period exceeding 30 calendar days within any continuous twelve-month period that begins or ends in the relevant tax year.
The regime is also extended to close family members of eligible foreign citizens, provided that a special fee is paid for each adult relative included under the regime.
Application Procedure
Applications for obtaining the special tax status will be submitted to a Commission on the Provision of the Special Tax Regime for Foreign Citizens through the Tax Committee. The necessary technical infrastructure is expected to be established by the end of the year preceding the introduction of the regime.
The Commission is required to review each application within five business days and issue a decision either approving or rejecting the request.
Financial Requirements
Upon receiving approval, the applicant must:
Pay a special fee of USD 50,000 for the primary applicant and USD 10,000 for each adult close relative included in the application; and
Open a financial account either in a specially authorized commercial bank in Uzbekistan or a crypto-wallet on a licensed cryptocurrency exchange operating in the country.
Funds transferred to these accounts or crypto-wallets will be subject to verification by the respective financial institutions to ensure the legality of their origin.
Registration and Validity
Foreign citizens and their family members who have paid the special fee are granted registration at their place of residence in Uzbekistan within one business day upon submission of the relevant request and proof of payment.
This registration will be valid for a period of up to five years, after which it may be renewed subject to applicable procedures and continued compliance with the established requirements.
Legal and Practical Implications
The introduction of this special tax regime marks a significant policy shift toward creating a favorable environment for foreign residents. By decoupling global income from domestic tax obligations, Uzbekistan positions itself as a competitive jurisdiction for professionals, entrepreneurs, and investors seeking regional residency options with simplified tax treatment.
At the same time, the requirement to maintain verified financial accounts within authorized institutions reinforces transparency and compliance with international standards on anti-money-laundering and counter-terrorism financing.
The regime’s design combining minimal physical presence requirements with substantial financial commitments reflects a deliberate balance between accessibility and fiscal responsibility. It provides foreign citizens with an opportunity to obtain a secure and legitimate tax residency status in Uzbekistan while contributing to the national economy through investment and financial engagement.
Changes in Uzbekistan’s Transport & Logistics Centers
The Cabinet of Ministers has adopted a resolution establishing a comprehensive framework for the regulation, classification, and modernization of transport and logistics centers (TLCs) throughout Uzbekistan. This new framework aims to improve the efficiency, safety, and competitiveness of the logistics sector by introducing unified standards of infrastructure, operational capacity, and management oversight.
Establishment of a National Register and Rating System
All TLCs operating in the country will now be included in a special national register maintained by the competent authorities. Each center will be assigned a rating reflecting its level of compliance, sustainability, and performance.
The overall rating will be based on two components:
The rating system will thus serve both as a compliance mechanism and as a benchmark for determining eligibility for state support, partnership programs, or preferential treatment in logistics initiatives.
Standardization of Infrastructure and Equipment
The resolution introduces mandatory technical and infrastructural requirements for the operation of both regional and international TLCs, as well as for warehouses, container terminals, and dry ports.
The territory of each TLC must comply with sanitary, environmental, and urban planning standards.
Requirements extend to transport accessibility, storage capacity, safety systems, and technological equipment.
TLCs are expected to provide facilities for cargo handling, packaging, temporary storage, customs procedures, and intermodal transport connections.
The standards are designed to align domestic logistics infrastructure with international norms, enhancing the country’s role as a regional transit and trade hub.
Restrictions on Location and Land Use
The regulation imposes clear geographical and land-use limitations:
TLCs must be located outside residential areas, protected environmental zones, and agricultural lands.
The allocated land plots must be used exclusively for logistics purposes, prohibiting unrelated commercial or industrial activities on the site.
This approach aims to reduce environmental risks, prevent congestion in urban areas, and preserve agricultural resources.
Accessibility Requirements
Each TLC must ensure direct and efficient connectivity to the main national and regional transportation corridors:
The distance between a TLC and the nearest railway line, transport interchange, or national/international highway may not exceed three kilometers by a road suitable for heavy transport movement.
This ensures smooth integration with the national logistics network, reducing costs and time in cargo movement.
Functional Mandate of TLCs
Depending on their location and strategic importance, TLCs must be capable of performing dual logistical roles:
Distribution center – facilitating the delivery and redistribution of goods across regions and neighboring countries.
Consolidation center – enabling the collection, sorting, and aggregation of goods for export, transit, or further distribution. This dual function enhances the system’s flexibility and responsiveness to both domestic and international trade flows.
Compliance and Future Implications
The introduction of uniform standards represents a major shift toward a regulated and performance-based logistics environment in Uzbekistan.
Operators will need to undertake technical audits and legal due diligence to ensure compliance with new standards before registration.
Non-compliance may result in exclusion from the register, loss of rating, or restrictions on participation in logistics programs.
The rating mechanism is expected to influence access to financing, investment incentives, and government contracts, effectively linking operational quality with regulatory and financial outcomes.
Strategic Outlook
The reform positions Uzbekistan to:
Strengthen its regional transit potential and integrate with global supply chains.
Attract private investment in logistics infrastructure through transparency and predictability.
Promote sustainable and environmentally responsible development by enforcing location and infrastructure controls.
The document shall enter into force on January 10, 2026.
Uzbekistan Expands Public-Private Partnerships in Water Resource Management
Uzbekistan has introduced a comprehensive set of measures aimed at improving the management of water resources at the local level and increasing the attractiveness of the sector for private investment. These reforms mark a significant step toward modernizing the country’s water infrastructure, ensuring sustainability, and enhancing operational efficiency.
Key objectives of the reform include:
Strengthening the financial independence of 160 state institutions operating under the “Suv etkazib berish xizmati” (Water Supply Service);
Transferring 50% of pumping stations in Jizzakh, Kashkadarya, Navoi, Namangan, Samarkand, and Syrdarya regions to management under public-private partnership (PPP) arrangements by 2026;
Expanding the PPP model to cover 100% of pumping stations in the Namangan region by the end of 2027, building on its successful pilot experience;
Establishing training and field centers on at least 3,500 hectares of land in 141 districts as part of the “School of Water Specialists” project.
Pilot project in Dustlik district
Provide transparent observation of water consumption and supply for 437 farming enterprises, ensuring the delivery of water within established limits;
Install 1,804 smart water meters to enable digital monitoring and efficiency tracking;
Achieve annual savings of up to 107 million cubic meters – equivalent to 33% of total water use;
Concrete 159 kilometers of irrigation networks and restore 541 kilometers to fully operational condition.
Institutional and operational improvements
The reform also focuses on enhancing the performance of the Water Supply Services through:
Introduction of a flexible staffing system that reflects operational needs and available financial resources;
Establishment of key performance indicators (KPIs) for staff, linking incentives to efficient water resource use and service delivery outcomes;
Reinforcement of financial autonomy and improvement of the material and technical base of water supply institutions.
Under the new framework, the Water Supply Services will have the right to independently determine the number of staff positions and allocate up to 40% of revenues from the water use tax (credited to the state budget) toward infrastructure development.
Role of private partners
Private entities engaged under PPP arrangements will be required to:
Ensure continuous water delivery to users and households within approved water intake limits;
Manage all relevant water facilities in coordination with the public partner;
Maintain comprehensive records and reporting of water use, including through automated systems;
Implement phased modernization of water facilities in their service area.
Budget and regional oversight
The Council of Ministers of the Republic of Karakalpakstan and regional hokimiyats will annually review and adjust the budget allocations to Water Supply Services based on regional performance indicators. Within one month, a recalculation of local budget allocations for 2025 will be conducted to reflect the updated indexed amounts, and any outstanding funds will be disbursed accordingly.
These measures reflect Uzbekistan’s broader strategy to decentralize water resource management, encourage private sector participation, and ensure the sustainable use of one of the country’s most vital natural resources.
Uzbekistan Forms Expert Council on Tax Disputes
Pursuant to a Resolution of the Cabinet of Ministers, the Regulation establishing the Expert Council on Tax Disputes under the Chamber of Commerce and Industry of the Republic of Uzbekistan has been approved. The newly established Expert Council is designed to serve as a platform for impartial and professional review of tax-related disputes arising between business entities and tax authorities.
Key Objectives and Functions
The Regulation defines the structure, procedures, and responsibilities of the Council, which include:
Reviewing tax disputes between entrepreneurs and tax authorities, and issuing formal conclusions and recommendations;
Analyzing legislative and regulatory acts in the field of taxation and developing proposals to improve law enforcement practices;
Strengthening collaboration with the business community, government institutions, and academic organizations to ensure transparency and fairness in tax dispute resolution.
The Council is committed to ensuring impartiality, legality, fairness, and consistency in the interpretation and application of tax laws. Importantly, it emphasizes that all unresolved contradictions and ambiguities in tax legislation should be interpreted in favor of the entrepreneur, thereby supporting the principles of a fair and business-friendly tax environment.
Procedure for Appeals and Consideration
Entrepreneurs may submit appeals to the Council following the established procedure. Once a submission is received, the Secretary of the Council conducts a preliminary review and informs the applicant in writing about the feasibility of including the issue in the Council’s agenda.
The Council’s Secretariat prepares the agenda in coordination with its leadership, ensuring that each session addresses relevant and pressing issues faced by businesses. Following each meeting, the Council prepares certified extracts of its conclusions and distributes them to its members, the applicant, and other concerned parties.
The conclusions and recommendations issued by the Council are subsequently reviewed by the competent state authorities, which are obliged to inform the Council of the outcomes of their consideration.
Structure and Operations
The composition of the Expert Council will be approved by a Presidential Resolution. Its sessions will be held on a regular basis to ensure continuous engagement and timely resolution of tax disputes.
This initiative marks a significant step toward enhancing dialogue between the state and the business community, improving transparency in tax administration, and strengthening trust in the system of tax dispute resolution in Uzbekistan.
Advancement of Artificial Intelligence in Uzbekistan
The Government of Uzbekistan has adopted a new Presidential Decree introducing additional measures to support projects based on artificial intelligence (AI). This initiative marks another important step toward accelerating the country’s digital transformation and advancing the goals of the “Digital Uzbekistan 2030” Strategy.
Under the new framework, the government will allocate significant additional funding from the Fund for Reconstruction and Development to finance projects driven by AI technologies. The support will include both direct grants for the implementation of AI in public institutions and investments in venture funds such as “Fund of Funds” and “IT Park Ventures.” These mechanisms aim to stimulate innovation in socially important areas and across key sectors of the economy.
The Coordinating Commission for the Implementation of the Digital Uzbekistan Strategy will oversee the distribution of these resources. The Commission will determine priority sectors, select projects, and ensure that resources are used effectively to achieve the intended socio-economic impact.
Government institutions are encouraged to develop and submit proposals for integrating AI technologies into their operations. Projects will be financed either through direct agreements with registered enterprises or via open competitions held among innovative companies that meet the Commission’s requirements and selection criteria.
Additionally, the decree simplifies the technical review process for information systems and resources, ensuring that approvals are completed swiftly and efficiently across all relevant agencies.
This initiative underscores Uzbekistan’s growing commitment to fostering AI-driven innovation, promoting digital inclusion, and building a competitive, knowledge-based economy that harnesses the power of emerging technologies for public benefit.
Uzbekistan’s Path to Digital Justice
The “Digital Prosecutor’s Office – 2030” strategy represents a nationwide initiative for the complete digital transformation of the prosecutorial system. Its overarching objective is to create a transparent, efficient, and modern institution capable of ensuring the rule of law through digital tools, data-driven oversight, and technological innovation.
The reform envisions the prosecutor’s office as an integral component of the country’s digital government infrastructure, a key institution in the ecosystem of e-governance, where all activities are carried out electronically, monitored in real time, and fully integrated with other state bodies.
Core Objectives
The strategy’s primary mission is to achieve full automation of all prosecutorial functions by 2030 and to ensure seamless electronic interaction across all levels of law enforcement, justice, and public administration.
Its objectives include:
Introducing advanced digital tools into every sphere of prosecutorial activity.
Establishing efficient systems for interdepartmental data exchange.
Enabling prosecutors to supervise legality, investigations, and judicial processes electronically.
Building a secure, transparent, and unified information environment that minimizes human error and corruption risks.
Enhancing public trust by ensuring accountability and open access to justice-related data.
Digital Transformation Priorities
Digital Oversight and AI-Driven Supervision
The concept of digital oversight introduces remote, continuous, and data-based supervision of law enforcement and administrative activities. Through integration with state databases, prosecutors will have real-time access to official data, enabling:
Automatic monitoring of government actions and procedural compliance.
Detection of irregularities and potential abuse of authority.
Prevention of corruption through algorithmic transparency and digital auditing.
Artificial intelligence will play a pivotal role in analyzing case data, recognizing patterns, and forecasting risks allowing the prosecutorial system to move from reactive investigation to proactive legal prevention.
Key Information Systems
A network of new digital platforms forms the technological foundation of the reform.
E-tergov (Electronic Prosecution System)
A central system that digitizes the entire criminal process from the registration of complaints to the enforcement of sentences. Its functionality covers:
Electronic case management and document circulation.
AI-based analysis of investigations and judicial outcomes.
Integration among investigative bodies, courts, and correctional institutions.
Secure digital archiving and communication channels.
This system ensures speed, accountability, and consistency throughout all stages of criminal justice.
Raqamli prokuror (Digital Prosecutor System)
A comprehensive digital ecosystem for prosecutors to manage supervision remotely. Features include:
Electronic oversight of law enforcement agencies.
Online participation of prosecutors in court hearings.
Maintenance of digital case files, requests, and administrative documentation.
Continuous collection and statistical analysis of data on prosecutorial activity.
This system forms the backbone of “smart supervision,” allowing real-time monitoring and decision-making.
Tekshiruvlarning yagona elektron reyestri (Unified Electronic Register of Inspections)
A centralized register of all state inspection activities. It ensures transparency of control measures, prevents overlapping checks, and allows prosecutors to track legality and compliance across agencies in real time.
E-Integratsiya (Unified Interagency Integration Platform)
A single digital platform that connects the prosecutor’s office to the entire governmental digital ecosystem. It supports:
Interoperability among ministries, agencies, and regional authorities.
Instant access to official data required for oversight and investigation.
Automated exchange of requests, reports, and monitoring outcomes.
Reduction of redundant paperwork and duplication of information across institutions.
Institutional Framework and Governance
To coordinate these digital initiatives, a Center for Digital Technologies is being established within the Prosecutor General’s Office.
This Center will:
Develop, maintain, and improve digital platforms used by the prosecutorial system.
Lead projects on the introduction of artificial intelligence and cybersecurity measures.
Provide technical expertise, manage databases, and oversee system integration across government entities.
Conduct audits of digital systems used by state institutions to ensure data security and lawful information management.
The Center operates as an independent administrative unit, financed through both the state budget and additional sources such as revenues from digital services. Funds will be reinvested into system upgrades, staff training, and the recruitment of IT specialists to sustain technological progress.
Human Capital and Education Reform
Recognizing that digital transformation requires new competencies, the strategy introduces comprehensive educational measures.
A Cyber Law bachelor’s program will be launched at the Law Enforcement Academy, training legal professionals who combine a strong understanding of law with expertise in information technologies, data protection, and cybersecurity.
Parallel initiatives include:
Systematic digital literacy programs for all prosecutorial staff.
Continuous professional development in AI applications, electronic documentation, and data analytics.
Cooperation with universities and research institutions to foster innovation in legal technology.
Innovation in Investigations and Case Management
The transition to a digital prosecution model involves:
Converting all stages of criminal proceedings into electronic form.
Implementing digital supervision at the stages of inquiry and preliminary investigation.
Enabling online documentation of procedural actions and the use of digital signatures.
Applying AI-based tools for the analysis of criminal patterns, economic crimes, and corruption risks.
Creating secure systems for data exchange and online coordination between prosecutors, investigators, and courts.
Such integration eliminates delays, improves procedural transparency, and enhances coordination among law enforcement bodies.
Transparency, Accountability, and Anti-Corruption Measures
An essential focus of the strategy is to combat corruption through technological means. The digital environment will enable continuous oversight of the activities of state officials, tracking their actions and decisions to ensure legality.
All public agencies will be required to integrate their information systems with the prosecutorial network, allowing:
Instant detection of irregularities.
Verification of official decisions.
Monitoring of compliance with laws and ethical standards.
This will institutionalize digital accountability and strengthen the culture of integrity in public administration.
Expected Outcomes
By the time the strategy is fully implemented:
Prosecutorial bodies will operate as modern, transparent, and digitally integrated institutions.
All processes from case registration to court participation will be managed electronically.
Artificial intelligence will enhance legal analysis, decision-making, and preventive oversight.
Interagency coordination will become seamless, supported by real-time data exchange.
Citizens’ rights and freedoms will be more effectively protected through transparent legal mechanisms.
Public trust in law enforcement will rise due to openness, responsiveness, and technological reliability.
The “Digital Prosecutor’s Office – 2030” strategy represents a decisive leap toward a fully digital justice system. It transforms the prosecutor’s office into a technologically advanced, data-driven institution that upholds legality through innovation rather than bureaucracy.
By combining automation, AI, interagency integration, and advanced human capital, the reform lays the foundation for a new era of digital legality, transparency, and institutional trust positioning the prosecutorial system as one of the key pillars of modern digital governance.
Uzbekistan Simplifies Business Registration and Licensing
A presidential decree has been issued establishing new measures aimed at simplifying business operations, licensing, and permitting procedures. The primary objective of this decree is to reduce administrative expenses for entrepreneurs estimated at up to ninety billion soums and to shorten the time spent on interactions with state authorities by as much as fifteen days.
Beginning from early 2026, the following services will be provided simultaneously during the state registration of business entities, in accordance with the “Start a Business in 15 Minutes” principle:
issuance of an electronic digital signature key;
submission of applications for the opening and activation of bank accounts;
submission of applications for obtaining licenses, permits, or notifications for certain types of activities;
execution of rental agreements for immovable property;
automatic issuance of a Value Added Tax payer certificate (for taxpayers eligible for automatic issuance without a tax-risk assessment requirement);
online purchase of cash register equipment and its real-time registration with the tax authorities;
appointment of the head of a legal entity and registration of this information in the Unified National Labour System.
Under the “Start a Business in 15 Minutes” framework:
each service is used voluntarily at the discretion of the entrepreneur;
payment for all selected services may be made through a single unified QR code.
Additionally, from early 2026, individual entrepreneurs will be permitted to have a trade name.
When primary registration data of a business entity is changed (including name, surname, patronymic, trade name, address, legal form, etc.), all necessary adjustments to the individual entrepreneur certificate, licenses, permits, and notifications will be made free of charge through interagency electronic data exchange, in an automatic manner.
For this purpose:
information concerning changes in the name, surname, or patronymic of an individual entrepreneur will be provided through the automated identification system of the Ministry of Internal Affairs;
all other information will be transmitted from the automated state registration and accounting system for business entities to the licensing information system in real time.
Simplification of Licensing and Permitting Procedures
Starting from spring 2026, when penalties are applied to legal entities for violations in the area of licensing, permitting, or notification procedures, the practice of simultaneously imposing administrative liability on their officials will be abolished.
In addition, a voluntary preliminary assessment service will be introduced within the licensing information system. Under this service:
the compliance of facilities, equipment, personnel, and other relevant information with licensing or permitting requirements will be reviewed, and a corresponding conclusion will be issued;
the preliminary assessment will be carried out within a period not exceeding twenty days, and the fee for this service will not exceed the amount charged for reviewing an application for the respective license or permit.
A comprehensive roadmap has also been approved, aimed at reducing regulatory burdens on entrepreneurial activity and eliminating bureaucratic barriers.
U.S.–Uzbek Council Set to Boost Investment
In accordance with the relevant Presidential Decree, the Government of Uzbekistan has announced the establishment of the U.S.-Uzbek Business and Investment Council (the “Council”). The decision follows agreements reached during the President of Uzbekistan’s visit to the United States within the framework of the “C5+1” Summit. The Council will be co-chaired by the Head of the Administration of the President of the Republic of Uzbekistan from the Uzbek side and a representative of the President of the United States from the American side.
Mandate and Authority
The Head of the Administration of the President of Uzbekistan has been granted the authority to approve the composition of the Council, as well as its regulations and procedures on behalf of Uzbekistan.
The Council will focus on a number of strategic priorities, including:
Coordination of strategic business initiatives, major investment and trade projects, and continuous monitoring of their implementation.
Creation of a special investment fund aimed at mobilizing additional investments into Uzbekistan, with anchor participation from the U.S. International Development Finance Corporation (DFC) and the Uzbek side, as well as the involvement of major international financial institutions such as the EBRD, IFC, and ADB to finance critical infrastructure and strategic projects and share risks.
Continuation of negotiations on mutual tariff reductions.
Systemic promotion of products and services of resident companies of the IT Park of Software Products and Information Technologies.
Development of proposals for diversifying the national investment portfolio, including portions of the foreign exchange reserves of the Central Bank of Uzbekistan and other assets.
Strengthening Diplomatic Capacity in the United States
To enhance the effectiveness of foreign policy coordination and state initiatives, an additional position of Counselor-Envoy, serving as a representative of the Administration of the President of Uzbekistan in the United States, will be introduced within the structure of the Embassy of Uzbekistan in Washington, D.C. beginning from the start of 2026.
The Counselor-Envoy:
Is appointed and dismissed by the Head of the Administration of the President of Uzbekistan.
Reports directly to the Head of the Administration.
Is responsible for supporting the Head of Uzbekistan’s diplomatic mission in the United States, particularly in matters of advancing bilateral relations.
Will directly initiate and discuss issues related to the implementation of major strategic investment and trade projects in both countries.
Will ensure comprehensive coordination of the Council’s work from the Uzbek side.
In addition, measures are planned to further strengthen the diplomatic presence of Uzbekistan in the United States:
The Ministry of Foreign Affairs, together with the Ministry of Investments, Industry and Trade, will propose an expansion of the Embassy’s staff.
Work will be undertaken to open additional consulates in U.S. cities with major economic hubs or large Uzbek diasporas, including Philadelphia, Chicago, Orlando, and Seattle.
One of the primary tasks of the newly established consulates will be the development and implementation of an effective interaction model with Uzbek diaspora communities across all U.S. states.
Facilitating Investment Activities of Uzbek Residents in the United States
Beginning in 2026, operations of Uzbek residents related to investment activities in the United States such as the transfer of funds from accounts in Uzbekistan for the formation of charter capital of foreign enterprises, equity participation, or funding the working capital of their U.S. branches will be carried out without restrictions, within the limits of their account balances.
The Central Bank of Uzbekistan will introduce the necessary legislative amendments arising from this requirement.
Additionally, the Ministry of Economy and Finance, together with the Central Bank, will submit proposals to the Council on improving the structure of the country’s investment assets and foreign exchange reserves, aiming to allocate resources to high-yield and highly liquid assets, including those located in the United States.
Organizational Development of the Council
To ensure long-term, efficient functioning of the newly established Council:
The Ministry of Investments, Industry and Trade and the Ministry of Foreign Affairs will work with the U.S. side on the formation of a permanent staff for the Council’s executive body, with a permanent office located in the United States, including U.S. specialists.
A draft of the Council’s regulations and operational procedures from the Uzbek side will be submitted for approval.
The composition of the Council from the Uzbek side expected to include prominent figures from the U.S. business and investment community will be finalized.
Negotiations will begin with the U.S. side on a bilateral Agreement on the Promotion and Protection of Investments.
Legislative Adjustments
The Ministry of Foreign Affairs, together with relevant ministries and agencies, will submit proposals for necessary amendments and additions to national legislation arising from the provisions of the Presidential Decree.
Uzbekistan Introduces New Rail Access Rules
A new regulatory framework has been adopted in Uzbekistan establishing comprehensive rules for accessing and using the infrastructure of the public railway network. The regulation introduces a unified, transparent, and nondiscriminatory model that governs how carriers both state-owned and private interact with the country’s rail infrastructure, including tracks, stations, hubs, electrical systems, dispatching centers, signaling, communication networks, and safety systems.
The aim of the reform is to modernize the management of the railway sector, encourage private transport operators, and create reliable mechanisms for infrastructure financing, maintenance, and modernization.
Objectives and Conceptual Foundations
The newly introduced rules are designed to ensure that all carriers, regardless of ownership form, receive equal access to railway infrastructure. They aim to:
- increase the efficiency of infrastructure utilization;
- stimulate the involvement of private sector operators;
- establish a level competitive environment;
- strengthen the long-term financial sustainability of infrastructure maintenance and upgrades.
The framework defines the principles of transparency, fairness, and technological neutrality. Each carrier must receive the same opportunities for access, scheduling, capacity allocation, and service provision, while the infrastructure operator is obligated to act solely on the basis of unified standards and technical requirements.
General Structure of the Rules
The regulation outlines a complete system governing:
- definitions and key concepts used in railway operations;
- rights and responsibilities of the infrastructure operator;
- obligations and rights of carriers (transport service users);
- technical, operational, and safety requirements;
- procedures for submitting and approving applications for access;
- rules for allocating railway capacity and forming train schedules;
- mechanisms for managing disruptions, delays, repairs, and unexpected operational constraints;
- rules for providing coordinated services, including locomotive assistance, dispatching, inspection, and other technical functions;
- requirements for financial transparency and cost-based pricing;
- obligations for reporting, record-keeping, and information transparency;
- standardized forms and documentation, including the unified infrastructure access application form.
Definitions and Key Terms
The rules establish a unified terminology to ensure consistency across the industry. Among the terms included are:
- Infrastructure services – all services related to access to railway infrastructure, including traffic management, dispatching, signaling, power supply, technical inspection, placement, and routing of trains.
- Infrastructure objects – tracks, stations, depots, hubs, energy supply systems, communication networks, and other components forming the unified technological complex.
- Train characteristics – weight, length, composition, traction requirements, axle loads, braking systems, and other technical metrics required for scheduling and safe movement.
- Capacity allocation – the process of distributing available train paths among users in accordance with objective criteria, operational intensity, and infrastructure capabilities.
- Application (order request) – the standardized form submitted by carriers for obtaining the right to use specific infrastructure services within defined timeframes.
These terms serve as the foundation for the technical and operational regulations that follow.
Responsibilities of the Infrastructure Operator
The regulation imposes extensive responsibilities on the infrastructure operator, covering technical, operational, informational, and administrative obligations. Among them:
I. Technical readiness
The operator must ensure that all infrastructure objects remain in safe, operational condition. This includes:
- timely repairs and inspections;
- coordination of maintenance schedules;
- ensuring the reliability of signaling, power supply, and safety systems;
- preventing disruptions affecting train movements.
II. Provision of accurate and timely information
The operator must supply carriers with full and updated information on:
- available capacity;
- technical characteristics of routes and stations;
- schedule constraints and operational limitations;
- temporary restrictions caused by repairs or emergencies;
- conditions for the movement of different types of trains.
III. Non-discriminatory service provision
All carriers must receive infrastructure services:
- under equal conditions;
- with uniform technical and procedural requirements;
- without giving unnecessary preference to any company or transport type.
IV. Operational assistance
The operator must provide, when required:
- dispatching and traffic management;
- locomotive coupling or shifting assistance;
- technical inspection of trains;
- emergency response services.
V. Safety and compliance
The operator controls adherence to safety norms and may suspend or deny access if a carrier violates technical or safety requirements.
Rights and Obligations of Carriers
Carriers using the railway infrastructure must:
- comply strictly with safety standards;
- ensure train readiness, including braking systems, weight limitations, technical documentation, and crew qualifications;
- follow dispatching instructions and route assignments;
- provide accurate information on cargo types, train parameters, and schedules;
- inform the operator of any circumstances affecting safe train movements.
They also have the right to:
- receive infrastructure services under equal conditions;
- access all necessary information for planning their operations;
- challenge decisions they consider discriminatory or inconsistent with established rules.
Access Procedures and Application Requirements
A central element of the new framework is the modernized procedure for submitting and approving applications for infrastructure use.
Standardized requirements
Applications must include:
- carrier details;
- requested routes and times;
- technical characteristics of trains;
- safety-related information;
- supporting documentation proving compliance.
Clear review timelines
The operator must review applications within established timeframes, eliminating subjective delays and administrative uncertainty.
Contracting
Once an application is approved, a contract is signed defining:
- the scope of services;
- the terms of access;
- liabilities and responsibilities;
- pricing principles.
The regulation introduces a unified application form, simplifying the process and ensuring consistency across carriers.
Capacity Allocation and Scheduling
The rules set forth detailed mechanisms for forming and approving the train movement schedule.
The operator must:
- evaluate the technical feasibility of carrier requests;
- consider infrastructure capacity, repair schedules, and operational loads;
- balance competing applications based on transparent criteria;
- coordinate schedules across stations, hubs, and neighboring regions;
- ensure that safety margins and technical limits are never exceeded.
Carriers may request changes during operations, but such adjustments must not compromise the overall stability of the movement schedule.
Handling Disruptions and Emergency Situations
The regulation establishes procedures for:
- infrastructure failures;
- unexpected technical problems;
- delays caused by weather, accidents, or overloaded routes;
- cases where carriers violate safety or operational norms.
The operator may:
- reroute trains;
- adjust schedules;
- temporarily limit access;
- require additional inspections or documentation.
Carriers are obligated to cooperate fully and promptly.
Economic Principles and Payment Mechanisms
The document introduces a modern model of financial relations between carriers and the infrastructure operator, including:
Transparent pricing mechanism
Payment for infrastructure services is based on:
- the type and intensity of infrastructure use;
- the characteristics of train movement;
- actual operational costs;
- maintenance and modernization needs.
Use of revenue
Income generated from access fees must be directed toward:
- maintaining infrastructure;
- upgrading outdated equipment;
- improving safety systems;
- ensuring the long-term stability of the railway network.
Financial transparency
The operator is required to maintain transparent accounting and make financial information available upon request.
Supervision and Accountability
Compliance with the rules is monitored by relevant supervisory bodies. The infrastructure operator must regularly report on:
- the status of infrastructure;
- service provision statistics;
- financial operations;
- incidents, delays, and emergency responses.
Carriers may file complaints if they believe access conditions were applied unfairly or inconsistently.
Final Provisions
The regulation concludes by confirming that:
- its implementation will be continuously monitored;
- all related regulatory and technical acts must be brought into full alignment;
- any outdated norms are subject to revision or cancellation.
Conclusion
The new regulatory framework represents a major shift toward a more open, transparent, and competitive railway market. By introducing equal access conditions, strengthening the role of private operators, and defining comprehensive rules for the use of infrastructure, Uzbekistan takes an important step toward modernizing its transport sector and aligning it with international best practices.
The reform is expected to enhance efficiency, reduce delays, eliminate administrative barriers, and support sustainable development of the railway system.