Scale of Uzbekistan’s privatisation programme

Presidential Decree of 21 April 2025 instructed privatisation of 29 state-owned enterprises in 2025–2026, with IPOs and SPOs of 12 large SOEs on domestic and international stock exchanges. Franklin Templeton was appointed as Trustee and Manager of the National Investment Fund of Uzbekistan — managing minority stakes in 18 SOEs with an approximate value of USD 1.5 billion. This is the most significant privatisation wave in Uzbekistan’s history.

Acquisition routes

Foreign investors can participate in Uzbekistan’s privatisation programme through: direct share acquisition via negotiated sale or public tender; participation in IPOs and SPOs on the Tashkent Stock Exchange; acquisition of assets from state-owned enterprises; and PPP arrangements for infrastructure assets. Bond Stone advises on the most appropriate route based on the target asset, investor profile, and investment objectives.

Due diligence — privatisation-specific risks

Privatisation transactions in Uzbekistan require specific due diligence beyond standard corporate review — including confirmation that the original privatisation was lawfully conducted, review of post-privatisation investment obligations that may bind the acquirer, assessment of environmental liabilities from Soviet-era operations, and identification of any state or municipal claims against the target.

Investment protections

Foreign investors in privatised Uzbek enterprises are protected by the Law on Investments and Investment Activity — guarantees against expropriation without compensation, unrestricted profit repatriation, and national treatment. Uzbekistan’s bilateral investment treaty network (50+ states) provides additional treaty arbitration access. Bond Stone advises on maximising available investment protections in privatisation transactions.

SOE Acquisition — Manufacturing Sector

Privatisation · Uzbekistan · Manufacturing

Advising a foreign investor on the acquisition of an Uzbek state-owned manufacturing enterprise — privatisation due diligence, post-privatisation investment obligations, SPA negotiation, and BIT protection analysis.

Tender Procedure — Chinese Buyer

Privatisation · Uzbekistan · China

Advising a Chinese buyer on participation in a competitive tender for an Uzbek state asset — tender documentation review, bid structuring advice, and post-acquisition regulatory compliance strategy.

Investment Protection — Post-privatisation

Advisory · Uzbekistan · Investment

Advising a foreign investor on available investment protections following acquisition of a privatised Uzbek enterprise — BIT treaty analysis, stabilisation clause review, and dispute resolution clause structuring for post-acquisition commercial agreements.

IPO Participation — Foreign Institutional Investor

Privatisation · Uzbekistan · Capital Markets

Advising a foreign institutional investor on participation in an IPO of an Uzbek state-owned enterprise on the Tashkent Stock Exchange — eligibility requirements, investment documentation, and post-acquisition shareholder rights.

Asset Acquisition — Industrial Plant

Privatisation · Uzbekistan · Manufacturing

Advising on the acquisition of an Uzbek state-owned industrial plant through a direct negotiated sale — asset due diligence, environmental liability assessment, post-privatisation investment obligation analysis, and SPA negotiation.

BIT Protection Analysis — Gulf Investor

Advisory · Uzbekistan · Investment

Advising a Gulf investor on available BIT protections for a planned investment in a privatised Uzbek enterprise — treaty selection, stabilisation clause negotiation, and structuring of the investment to maximise treaty protection.

PPP Structure — Infrastructure Asset

Privatisation · Uzbekistan · Infrastructure

Advising on a public-private partnership arrangement for an Uzbek infrastructure asset — PPP agreement structure, concession terms, risk allocation, government guarantee provisions, and dispute resolution under Uzbek law.