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Uzbekistan prepares the legislative foundation for the Tashkent International Financial Centre
In a landmark legal development for Uzbekistan, the Ministry of Investments, Industry and Trade has published for consultation the draft Constitutional Law on the Tashkent International Financial Centre ("TIFC") (the "Draft Law") - the country's first attempt to establish a fully-fledged international financial centre with its own legal regime. If enacted, it would move decisively beyond Uzbekistan's traditional free economic zone model - which is principally focused on preferential customs, currency, tax and related investment conditions - by proposing a financial centre with: a special legal regime for finance, banking, capital markets and investment; a separate applicable-law hierarchy, with supplementary
Uzbekistan introduces a legislative framework for Islamic banking
On 27 March 2026, the President of Uzbekistan signed Law No. LRU-1126 (the “Islamic Banking Law” or “IBL”), marking a historic milestone in the development of Uzbekistan’s financial sector. The Islamic Banking Law introduces a dual banking system designed to expand the scope of available financial services and introduce innovative banking products aligned with international Islamic finance standards. This framework enables Sharia-compliant financial services to operate concurrently and on equal footing alongside conventional banking. The Islamic Banking Law introduces comprehensive amendments to the Civil Code, Tax Code, Law on the Central Bank, and Law on Banks and Banking Activities. Its primary objective
Kinstellar advises TotalEnergies on its landmark agreement with Masdar to establish a USD 2.2 billion pan-Asian renewable energy joint venture
Kinstellar has recently advised TotalEnergies on its landmark agreement with Masdar to establish a USD 2.2 billion pan-Asian renewable energy joint venture. The new joint venture will combine TotalEnergies’ and Masdar’s onshore renewable energy businesses across nine Asian markets, including Kazakhstan and Uzbekistan. The joint venture will comprise a portfolio of approximately 3GW of operational renewable energy assets and a further 6GW under development and is expected to be fully operational by 2030. The transaction represents one of the most significant recent renewable energy investments in Asia and further underlines the growing importance of Central Asia and the wider region in the global energy transition.
Kinstellar advises on Dual-Currency Eurobond issuance by Ipoteka Bank OTP Group, in Uzbekistan
Kinstellar has advised J.P. Morgan, Citi, Société Générale, OTP Bank as Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers and Bank of China and Mashreq as Co-Bookrunners; and BNY Mellon Corporate Trustee Services Limited as Trustee, on the successful Eurobond issuance by Ipoteka Bank OTP Group. This is the first-ever public Eurobond issuance by a private bank in Uzbekistan setting a new milestone for the development of country’s banking and financial sector. The Reg S-only dual-currency offering comprised USD 300 million of 5-year senior unsecured notes and the UZS 1.2 trillion of 3-year senior unsecured notes. This landmark transaction marks a major milestone for Ipoteka Bank OTP Group
Kinstellar advises China Southern Power Grid International on the acquisition of a non-controlling stake in ACWA Power’s two wind farm projects in Uzbekistan
Kinstellar is delighted to announce that we have successfully advised China Southern Power Grid International on its acquisition of a 35% stake in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company holding 100% in Bash and Dzhankeldy Uzbek project companies, respectively. The projects represent a combined 1 GW capacity and over USD 1.3 billion of investments. This transaction marks the first acquisition of large-scale renewable energy projects in Uzbekistan. Each of Bash and Dzhankeldy wind farm plants is developed based on a ‘Build, Own, Operate, Transfer’ model and consists of 79 wind turbines (158 turbines in total) that will generate 3,235 gigawatt-hours
Uzbekistan introduces a new legal framework to govern competition within commodity and financial markets
On 3 July 2023, the President of Uzbekistan signed the Law No. ЗРУ- 850 “[o]n competition” (the “New Law”), which comes into force on 4 October 2023, replacing the law on competition No. ЗРУ-319 dated 6 January 2012 (the “Old Law”). The New Law (i) defines new criteria for identifying a dominant market position, (ii) introduces the concept of superior bargaining power, (iii) sets out antimonopoly compliance requirements for certain business entities, (iv) clarifies the requirements for obtaining preliminary consent for certain transactions, and (v) imposes financial sanctions for violations of the New Law. Antimonopoly Compliance The New Law introduces the concept of antimonopoly compliance
Uzbekistan introduces amendments to banks’ capitalisation requirements and liberalises access to their ownership by non-residents
On 19 April 2023, the President of Uzbekistan signed law No. ЗРУ-831, which came into force on 20 April 2023 and introduced changes to the law “[o]n banks and banking activities” (the “Amended Banking Law”). Law on Banking The Amended Banking Law (i) increases the minimum charter capital requirement for banks and (ii) lifts certain restrictions on ownership of bank shares by non-residents of Uzbekistan. Increased charter capital requirements The Amended Banking Law increases the requirements for the minimum amount of charter capital of banks in Uzbekistan from UZS 100 billion to UZS 500 billion (from approximately USD 8,780,000 to USD 43,898,000 as of 1 May 2023) within the following timeline:
Kinstellar advises on an IFI-financed pharma sector acquisition in Uzbekistan
Kinstellar is delighted to announce that it has advised a holding company of a leading Ukrainian pharmaceutical company, YURiA PHARM, on the two-stage acquisition of a pharmaceutical company in Uzbekistan. The acquisition, which was supported by financing from an international financial institution, will enable Yuria Pharm to maintain exports despite the war, localise and increase production in Uzbekistan as well as allocate more critical medicine to the market in Ukraine. Our team undertook comprehensive due diligence and advised on transactional, corporate governance, regulatory, anti-trust as well as financing-related and other matters. Kinstellar’s team was led by Sherzod Yunusov, Partner, with the support
Kinstellar advises Silk Road Fund on the acquisition of a 49% stake in the Sirdarya CCGT power plant in Uzbekistan
Kinstellar is delighted to announce that it has successfully advised Silk Road Fund, a development and investment fund established under the framework of the Belt and Road Initiative, on the acquisition of a 49% stake in the 1.5 GW Sirdarya combined cycle gas turbine (CCGT) facility in Uzbekistan. ACWA Power will retain a 51% stake in the facility. JSC “National Electric Grid of Uzbekistan” will be the sole off-taker under the project for a period of 25 years. Located in Shirin, southern Uzbekistan, the project will support the Republic of Uzbekistan in providing cost-effective and energy efficient power solutions for the nearby communities and eliminate 2 million tonnes of carbon emissions per year. Once
Uzbekistan liberalizes regulatory framework for mining of crypto-assets
On 27 April 2022, the President of Uzbekistan signed decree No. UP-121 (the “Decree”), which (i) reorganized the National Agency for Project Management into the National Agency of Perspective Projects (the “Agency”) and authorizing it to regulate circulation of crypto-assets in Uzbekistan (covering issuance, registration, and circulation of crypto-assets by residents of Uzbekistan), and (ii) established a special regulatory regime in the sphere of crypto-asset circulation. According to the Decree, only legal entities are entitled to engage in mining[1] of crypto-assets[2] in Uzbekistan, following compulsory e-registration with the Agency. Mining of crypto-assets does not require obtaining a license. The Decree