Uztransgaz and Uzenergosotish Lose Monopoly Power Amid WTO Reforms
Uzbekistan Accelerates Market Reforms Ahead of WTO Accession
President Shavkat Mirziyoyev has taken a significant step toward enhancing Uzbekistan’s economic landscape by signing a new decree aimed at accelerating market reforms essential for the country’s accession to the World Trade Organization (WTO). This development, announced through Lex.uz, marks a pivotal shift in the nation’s approach to market liberalization.
Key Changes to State-Owned Enterprises
The decree has notably revoked the exclusive authority of the state-owned company Uzenergosotish as the sole electricity purchaser in Uzbekistan. This regulatory shift will allow other companies to participate in the wholesale and retail electricity market, given they secure the necessary licenses.
Similarly, the decree has dismantled Uztransgaz’s exclusive rights as the only transporter of natural gas in the country. While Uztransgaz will still manage natural gas supply operations, including imports and exports, the opening of the market to other competitors is expected to enhance efficiency and innovation in the sector.
Continuation of Reform Efforts
This decree is part of a broader strategy that President Mirziyoyev initiated back in June 2024. During that time, he ordered the elimination of exclusive rights held by various state-owned enterprises, including Uzmetkombinat and Uzkimyoimpex, as a vital component of Uzbekistan’s journey toward WTO membership.
In an effort to further modernize the telecommunications sector, the president also introduced a pilot program that allows mobile network operators to connect directly to external internet channels. This initiative aims to cultivate a more competitive market environment.
Future Prospects
Significantly, the government plans to dismantle the state monopolies UzGasTrade and Uzenergosotish by July 2026, facilitating the establishment of a competitive wholesale energy market.
Earlier this year, President Mirziyoyev also nullified exclusive rights for entities such as Uzbekexpertiza and Uzengineering, while implementing a new framework that limits the duration of exclusive rights to three years and demands comprehensive justification for their grant.
These measures underscore the Uzbek leadership’s commitment to transforming its economy, fostering competitiveness, and aligning with global trade standards. As the country moves closer to WTO accession, these reforms are poised to stimulate growth, attract foreign investment, and enhance the overall framework of the Uzbek economy.
