Privatisation & State Partnership in Uzbekistan

Scale of Uzbekistan's privatisation programme — 2025–2026

Presidential Resolution No. PP-145 dated 21 April 2025 set targets for the public sale of stakes in 29 large state-owned enterprises and for IPOs or secondary public offerings of 12 large SOEs on domestic and international stock exchanges. The National Investment Fund of the Republic of Uzbekistan was established by Presidential Resolution No. PP-303 of 27 August 2024. On 3 February 2025 the Ministry of Economy and Finance announced the Fund's investment asset management agreement with Franklin Templeton Asset Management FE LLC, covering the Fund's portfolio of 18 state-owned enterprises and commercial banks.

Acquisition routes for foreign investors

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

Post-privatisation investment obligations

Purchasers in Uzbek privatisation transactions often assume post-privatisation investment obligations — minimum capital expenditure commitments, employment preservation requirements, operational continuity conditions, and social infrastructure obligations. These obligations are binding on the acquirer — failure to fulfil them may result in rescission of the sale or financial penalties. Bond Stone reviews and negotiates post-privatisation obligations before transaction completion and advises on ongoing compliance.

PPP framework

Uzbekistan's PPP framework (Law No. ZRU-537 of 10 May 2019, as amended) enables foreign investors to participate in infrastructure development through concession agreements and public-private partnership arrangements. Key sectors for PPP investment include: roads and transport infrastructure; energy generation and distribution; water supply; and healthcare. Bond Stone advises on PPP concession agreement structure, risk allocation, government guarantee provisions, and dispute resolution.

BIT protections for privatisation investors

Foreign investors in Uzbek privatised enterprises and PPP projects may be protected by Uzbekistan's bilateral investment treaties, depending on the investor's nationality and the treaty's terms, including guarantees on expropriation and investor-state arbitration. Bond Stone advises on structuring privatisation investments and PPP arrangements to maximise available BIT protections and on the interaction between EFI domestic protections and BIT rights.