Uztransgaz loses monopoly on gas transportation in Uzbekistan

TASHKENT. May 5 (Interfax) - Uztransgaz has been stripped of its monopoly right to transport natural gas in Uzbekistan.

The corresponding decree was signed by Uzbek President Shavkat Mirziyoyev. The text of the document was published in the national legislative database (Lex.uz).

By the same decree, JSC Uzenergosotish has also been deprived of its exclusive rights as the sole purchaser of electricity.

The changes are driven by Uzbekistan's plans to join the World Trade Organization (WTO). According to the decree, amendments and additions have been made to previously adopted presidential acts in connection with the further acceleration of market reforms and Uzbekistan obtaining WTO membership status.

The document, among other things, provides that other companies with licenses, in addition to Uzenergosotish, will be allowed to engage in wholesale and retail energy trade.

Uztransgaz, having lost its exclusive right to transport natural gas as the sole operator, will continue to supply "blue fuel", including import and export operations.

President Mirziyoyev said at the end of last year that Uzbekistan's WTO accession process was entering its final stage. Earlier, in early June 2024, the authorities, in order to accelerate market reforms and harmonize national legislation with WTO requirements, stripped several major state-owned companies in the metallurgy, chemical and energy sectors of their exclusive economic rights.

Uzbekistan resumed its WTO accession process in 2017. In July 2019, the Uzbek side submitted an updated memorandum on its foreign trade regime to the WTO as part of its application. In late June 2022, negotiations between Uzbekistan and WTO member countries began regarding accession terms.

At the end of May 2024, during negotiations at the WTO headquarters in Geneva, Deputy Prime Minister Jamshid Khodjaev announced Uzbekistan's intention to become a member of the organization by 2026. The WTO working group urged the government to undertake additional commitments.