Tashkent, Uzbekistan (UzDaily.com) — The UK export credit agency (UKEF) has issued its first loan guarantee supporting UK-Uzbekistan trade by guaranteeing a €12.6 million loan to Almalyk Mining and Metallurgical Complex (AGMK).

This allows it to refinance its purchase of fully automated machinery from a subsidiary of Scottish multinational, Weir, following placement of the order in 2022.

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.  Copper is essential for construction and a range of technologies including solar panels and electric vehicles.

Total UK-Uzbekistan trade was worth £381 million in the last year , with specialised machinery being the fourth most-traded commodity overall. 

News follows the visit of UKEF CEO Tim Reid to Uzbekistan last year and meeting Minister of Investments, Industry and Trade Laziz Qudratov. Tim Reid expressed UK Government’s appetite in financing large-scale investment projects in Uzbekistan for the construction of highways, solar and wind power stations, production and processing of minerals.

UKEF has up to £4 billion in financing available to support contracts in Uzbekistan. It can help mobilise finance in priority economic and social sectors, supporting projects in clean energy, transport, healthcare, education, and manufacturing.

Timothy Smart, His Majesty’s Ambassador to Uzbekistan, said: “Uzbekistan stands out as a highly dynamic and ambitious country, with great opportunities for further business links with the UK. Our bilateral relationship with the Uzbekistan has strengthened consistently and show great potential for the future. Since last year, trade volume between the UK and Uzbekistan has seen a steady increase from last year.”

“Promoting greater trade and business cooperation such as the recent UKEF agreement benefit both the UK and businesses in Uzbekistan, and I look forward to seeing what we can accomplish in the future,” the envoy added.

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”.