WIREDGOV

UK Export Finance has guaranteed a loan to Almalyk Mining and Metallurgical Complex – its first ever deal in Uzbekistan.

• Guaranteed loan issued to Almalyk Mining and Metallurgical Complex to support refinancing of its purchase from Weir of specialist machinery for one of the largest copper-production facilities in Central Asia.

• This has supported Weir in delivering a major order, received in 2022, to supply machinery for Almalyk.

• News follows appointment of UKEF representative in Tashkent managing up to £4 billion in financing opportunities.

UK Export Finance (UKEF) has closed its first deal in Uzbekistan by guaranteeing a €12.6 million loan that supports export opportunities for a subsidiary of Scottish multinational, Weir.

This loan, provided by an international bank, allows Almalyk Mining and Metallurgical Complex – based near Tashkent, Uzbekistan – to refinance its purchase of fully automated machinery from Weir.

UKEF is supporting the transaction to promote machinery exports which will total millions of pounds. Total UK-Uzbekistan trade was worth £381 million in 2023[1], with specialised machinery now the fourth most-traded commodity overall.[2]

The Almalyk complex is one of the largest producers of copper in Central Asia, with non-ferrous metals, metal ore and scrap accounting for around 90% of the UK’s imports from Uzbekistan.[3] Copper is essential for construction and a range of technologies including solar panels and electric vehicles.

The guarantee from UKEF, the UK’s export credit agency, will be key to supporting future production at Almalyk by giving it continued access to capital from a key supplier. 

UKEF has made clear its continued interest in backing Uzbekistan projects; its CEO Tim Reid visited Uzbekistan last year to discuss opportunities for supporting trade and investment as the country diversifies its economy.

In 2024, UKEF then appointed a dedicated representative to Tashkent. Sevara Madgazieva, UKEF Country Head for Uzbekistan, can support buyers in Uzbekistan looking to deliver projects using UK goods, with a focus on clean and sustainable technologies.

Tim Reid, CEO of UK Export Finance, said:

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.

UK businesses are more interested than ever in bringing their goods and services to this vibrant economy – and UKEF can help buyers in Uzbekistan looking to make the most of this opportunity.

Sevara Madgazieva, UKEF Country Head (Uzbekistan), said:

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.

UKEF has up to £4 billion in financing available to support contracts in Uzbekistan, with a focus on projects supporting the country’s social and economic development.

[1] Uzbekistan Trade and Investment Factsheet (publishing.service.gov.uk)released on 20 September 2024, p.3.

[2] Calculation using data on the four quarters to end of Q1 2024, from Trade and Investment Factsheet, p. 7.

[3] Ibid.