Uzbekistan — Buyuk kelajak bo'lgan Davlat!

This blog is dedicated to providing rigorous analysis of current events in Uzbekistan. Debate and criticism are welcome, please inform me if you would like to offer a correction.


Leave a comment

Uzbekistan and Russia Struggle for Leverage in Gas for Investment Deal

On 5 April, President Shavkat Mirziyoyev and President Vladimir Putin both emerged from the Kremlin declaring the complete success of Mr. Mirziyoyev’s first trip to Russia, the crowning jewels of which are a series of trade and investment agreements totaling $15.8 billion and a framework for the joint development of Uzbekistani gas and oil reserves. It is likely, however, that when the two smiling leaders left the Kremlin they rejoiced with two very different understandings of the arrangement that these documents created. The statements made by President Putin on 5 April make it clear that he understood most of the investment promised to be focused on the profitable oil and gas sectors, with Uzbekistan receiving investment so that the quasi-private clique of bureaucrats and businessmen who control energy markets in Eurasia can make fortunes by opening Uzbekistani oil and gas fields up to the world market. President Mirziyoyev, on the other hand, has emphasized elements of the agreement focusing on development projects and Russian investment in unprofitable areas of the economy, like agriculture, basic infrastructure, and manufacturing. How this investment money is spent will set the tone for Uzbekistani development during the Mirziyoyev administration, as it will test the resolve of Uzbekistani government to prioritize long-term development planning over the parochial interests of domestic elites and against Russian pressure. While petrochemicals still make up the core of the deal, as well as recent Uzbekistani agreements with Beijing, how the billions of rubles remaining are spent comes down to the commitment of the Mirziyoyev government to guide Uzbekistan on its own path.
Continue reading