Uzbekistan's energy giants to run light

Uzbekistan's Energy Giants to Run Light

Uzbekistan's energy companies may divest a significant portion of their non-core assets and focus resources on their core activities. This effect of the new course towards reducing state presence in the economy is noted by Khayet Ibragimov, an expert at the Center for Energy Geopolitics and Diplomacy. His commentary was published by the State Assets Management Agency.

This refers to the Presidential Decree dated August 28, 2026, "On additional measures to reduce state participation in the economy and accelerate privatization processes."

According to the expert, the document holds particular strategic importance for the fuel and energy complex. For many years, large sector enterprises, including JSC "Uzbekneftegaz", JSC "Uztransgaz", JSC "Uzbekhydroenergo", and regional electricity grid structures, were simultaneously engaged in maintaining assets that were not directly related to their core production activities.

Among such facilities are filling stations, oil depots, departmental housing stock, repair shops, as well as unused production premises.

Transferring such assets to the privatization program should allow energy companies to unload their balance sheets and free up resources. As a result, capital investments can be directed primarily to the key areas of the industry — geological exploration and drilling, maintaining production, modernizing energy and grid infrastructure, as well as digitalizing energy resource metering.

The expert associates a separate effect with the privatization of local infrastructure.

The sale of hundreds of filling stations and transit depots, according to his assessment, is capable of strengthening competition in the motor fuel distribution market. Private owners will have an incentive to upgrade reservoir capacities, modernize facilities, and develop multimodal infrastructure.

Another element of the decree is the sale of about 8,000 hectares of commercial land with transparent technical specifications. This approach, as noted, should make the development of new facilities more predictable in terms of technological connection and the load on regional distribution networks.

At the same time, the state does not intend to completely relinquish control over strategic assets. During the privatization of certain enterprises, the mechanism of "special participation" of the state — the golden share — is retained. It should allow combining the expansion of the role of private capital with the preservation of control over issues of importance to national energy security.

Thus, privatization in the energy sector is viewed not only as the sale of state assets. Its task is to separate the core business from non-core property, free up capital, and force large companies to focus on what directly affects production and the reliability of energy supply.