UKEF Uzbekistan Deal Boosts UK Trade

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UK Export Finance (UKEF) has marked a significant milestone by securing its first deal in Uzbekistan, guaranteeing a €12.6 million loan for the Almalyk Mining and Metallurgical Complex.

This move not only strengthens bilateral trade but also opens new avenues for British businesses in Central Asia.

UKEF’s Strategic Entry into Uzbekistan

UKEF has underpinned a crucial transaction in Uzbekistan, supporting Almalyk Mining’s acquisition of advanced machinery from Scotland’s Weir. Consequently, this deal reinforces UKEF’s role in international trade.

Moreover, it underscores the UK’s commitment to fostering robust trade ties and promoting British exports. Additionally, this partnership empowers Uzbekistan’s economic growth, cementing the UK’s position in Central Asia’s burgeoning market.

Tim Reid, CEO of UK Export Finance, emphasized the strategic importance of this venture:

“It is no coincidence that Uzbekistan has for centuries been at the literal crossroads of world trade. When I visited last year, I was struck by what I saw: huge energy from a young and growing workforce, and equally huge ambitions for economic growth.”

Strengthening UK-Uzbekistan Trade Relations

With total UK-Uzbekistan trade valued at £381 million in 2023, the introduction of specialized machinery as the fourth most-traded commodity highlights the sector’s growing significance.

The Almalyk Mining complex, a major copper producer in Central Asia, plays a pivotal role in this dynamic landscape.

UK-Uzbekistan Trade Highlights

Aspect	Details
Total Trade Value (2023)	£381 million
Major Export Sector	Specialized machinery
UKEF Financing Available	Up to £4 billion
Key Industries Supported	Copper production, renewable energy, construction, electronics
Strategic Focus	Clean and sustainable technologies, economic diversification

Facilitating Economic Growth and Export Opportunities

UKEF’s guarantee ensures that Almalyk Mining can continue its operations seamlessly, securing the supply chain for one of Central Asia’s largest copper producers. Copper remains a cornerstone for the UK economy, integral to sectors such as construction, renewable energy, and electronics.

Sevara Madgazieva, UKEF Country Head for Uzbekistan, highlighted the broader vision:

“This is the first of many opportunities for UK Export Finance to strengthen the trading relationship between the UK and Uzbekistan.”

“British suppliers have a lot to contribute as Uzbekistan continues to diversify its economy, which is why UKEF has billions of pounds available to support projects throughout Central Asia.”

Main Benefits of the UKEF Uzbekistan Deal

Economic Expansion: Opens new markets for UK businesses in Central Asia.
Export Promotion: Boosts exports of specialized machinery and other UK goods.
Strategic Partnerships: Enhances bilateral relations and fosters long-term cooperation.
Job Creation: Supports domestic employment through increased export activities.
Sustainable Development: Focuses on clean and sustainable technologies, aligning with global environmental goals.

Paving the Way for Future Investments

The appointment of Sevara Madgazieva in Tashkent underscores UKEF’s commitment to Uzbekistan’s projects.

Moreover, the UK’s £4 billion financing opportunities position it to support the country’s development plans, including state asset privatization and public-private partnerships. Consequently, this funding will drive economic growth and diversification.

Additionally, UKEF’s focus on sustainability will play a key role. Overall, Madgazieva’s appointment, coupled with UK financing, signals a promising future for UK-Uzbekistan collaborations, fostering a strong partnership for mutual economic benefit.

Reinforcing its role as a key economic partner, UKEF is set to drive substantial growth and innovation within Uzbekistan’s industrial sectors. This collaboration not only benefits the local economy but also paves the way for sustained prosperity and mutual success between the UK and Uzbekistan.