UK Export Finance (UKEF) has made its inaugural entry into the Uzbek market by securing a €12.6mn loan guarantee, aimed at enhancing export opportunities for the Scottish multinational, Weir.
The loan, facilitated by an international bank, will enable the Almalyk Mining and Metallurgical Complex, located near Tashkent, to refinance its acquisition of fully automated machinery from Weir. This transaction stresses UKEF's commitment to boosting machinery exports, which are anticipated to contribute millions of pounds to the UK economy. In 2023, total trade between the UK and Uzbekistan was valued at £381mn, with specialized machinery emerging as the fourth most-traded commodity.
Almalyk is recognized 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 plays an important role in various sectors, including construction, solar technology, and electric vehicles.
The guarantee from UKEF, the UK's export credit agency, is expected to support Almalyk's ongoing production by ensuring continued access to crucial capital from its primary supplier. UKEF has expressed a strong interest in backing projects in Uzbekistan, with CEO Tim Reid visiting the country last year to explore opportunities for enhancing trade and investment as Uzbekistan diversifies its economy.
In 2024, UKEF appointed Sevara Madgazieva as its dedicated representative in Tashkent. Madgazieva will assist Uzbek buyers in leveraging UK goods for their projects, particularly focusing on clean and sustainable technologies.
Tim Reid noted that Uzbekistan has long been a key hub in global trade. During his visit last year, he was impressed by the dynamic young workforce and the country's strong economic growth ambitions. He highlighted that UK businesses are increasingly eager to engage with Uzbekistan's vibrant economy and emphasized that UKEF can assist buyers in capitalizing on this opportunity.
Sevara Madgazieva stated that this deal represents the beginning of numerous opportunities for UK Export Finance to enhance trade relations with Uzbekistan. She emphasized that British suppliers can significantly contribute as Uzbekistan diversifies its economy, highlighting that UKEF has billions of pounds ready to support projects across Central Asia.
UKEF currently has up to £4 billion in financing available for contracts in Uzbekistan, prioritizing projects that promote the country’s social and economic development.
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