UK Export Finance (UKEF) has successfully finalized its inaugural deal in Uzbekistan by guaranteeing a €12.6 million loan to bolster export opportunities for a subsidiary of the Scottish multinational, Weir.
The loan, provided by an international bank, enables the Almalyk Mining and Metallurgical Complex, located near Tashkent, to refinance its acquisition of fully automated machinery from Weir. This support from UKEF aims to enhance machinery exports, which are projected to reach millions of pounds. In 2023, total trade between the UK and Uzbekistan amounted to £381 million, with specialized machinery now ranking as the fourth most traded commodity.
The Almalyk complex stands as one of Central Asia’s largest copper producers, with non-ferrous metals, metal ore, and scrap accounting for approximately 90% of the UK’s imports from Uzbekistan. Copper is a critical component in construction and various technologies, including solar panels and electric vehicles.
The guarantee provided by UKEF, the UK’s export credit agency, is vital for ensuring ongoing production at Almalyk by facilitating continued access to capital from a key supplier.
UKEF has expressed a strong commitment to supporting projects in Uzbekistan. CEO Tim Reid visited the country last year to explore trade and investment opportunities as Uzbekistan seeks to diversify its economy. Following this, in 2024, UKEF appointed Sevara Madgazieva as the dedicated representative in Tashkent. She will assist buyers in Uzbekistan who aim to implement projects utilizing UK goods, particularly those focusing on clean and sustainable technologies.
Tim Reid remarked, “Uzbekistan has long been a crossroads of world trade. During my visit, I was impressed by the energy of its young workforce and the nation’s ambitious economic growth plans. UK businesses are increasingly keen to engage with this dynamic economy, and UKEF is positioned to help buyers in Uzbekistan leverage this opportunity.”
Sevara Madgazieva, UKEF’s country head for Uzbekistan, added, “This marks the first of many opportunities for UK Export Finance to strengthen trade relations between the UK and Uzbekistan. British suppliers have much to offer as Uzbekistan continues its economic diversification, which is why UKEF has billions available to support projects throughout Central Asia.”
UKEF has up to £4 billion in financing ready to support contracts in Uzbekistan, focusing on initiatives that contribute to the country’s social and economic development.
You Might Be Interested In