Rothschild & Co, a prominent financial holding company with interests in investment banking, corporate banking, private equity, asset management, and private banking, is poised to support Uzbekistan’s privatization efforts.
Deputy Prime Minister and Minister of Economy and Finance of Uzbekistan, Jamshid Kuchkarov, held a high-level meeting with a Rothschild & Co delegation in Tashkent on September 5, 2024.
The delegation was headed by Arielle Malard de Rothschild, a member of the supervisory board, and included Giovanni Salvetti, Rothschild & Co’s Managing Director and Head in the CIS; Simon Bard, the company’s restructuring and financing adviser; and Oleg Pushkarev, General Director for the CIS.
The Uzbek delegation included Deputy Minister of Economy and Finance Jasur Karshibaev, Chairman of Uzsanoatqurilishbank (SQB) Aziz Akbarjonov, and other key officials.
The discussions highlighted Uzbekistan’s ongoing economic reforms, focusing on the transition to market principles in the energy sector, advancements in the banking and financial sector, and the privatization of state-owned banks (SOBs). The transformation processes within the mining industry were also on the agenda.
Both parties shared insights into their experiences with bank privatization and explored potential avenues for Rothschild & Co’s involvement in Uzbekistan. They agreed to enhance their collaboration and undertake systematic efforts to achieve their shared goals.
President Shavkat Mirziyoyev’s ambitious privatization initiative, which began in 2020, is a key element of his reform strategy aimed at speeding up the transition to a market economy. Since taking office in 2016, President Mirziyoyev has been dedicated to opening Uzbekistan’s previously tightly controlled economy to international investors, aligning with his vision for a “New Uzbekistan.”
In line with this vision, the government’s 2020 commitment to privatize 620 state-owned enterprises—either fully or partially—reflects its resolve to adopt market-oriented reforms. Key companies set for privatization include Uzbekneftegaz, the state oil and gas firm, and the Navoi Mining and Metallurgical Company, which operates the Muruntau gold mine, the largest open-pit gold mine in the world.
In 2021, the State Assets Management Agency of Uzbekistan (UzSAMA) facilitated a swift privatization process for state-owned enterprises (SOEs), attracting both domestic and international investors and making notable strides. The cotton sector was fully privatized, and the privatization of wheat production was anticipated to be completed by the end of 2022. The sale of the Coca-Cola bottling plant to Turkish Coca-Cola İçecek (CCI) Group, along with deals totaling over $250mn secured during an economic forum in September 2021, underscored the government’s commitment to privatization.
In December 2022, the privatization of Ipoteka Bank was finalized, with OTP Bank acquiring 75% of the shares of Uzbekistan’s leading financial institution, previously owned by the Ministry of Economy and Finance of Uzbekistan. The privatization efforts also extended to non-traditional sectors, including real estate assets such as Hotel Uzbekistan.
