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New rules for electrical engineering are being introduced in Uzbekistan

The republican authorities initiated a set of measures aimed at strengthening the national electrical industry. The innovations approved by Shavkat Mirziyoyev provide both financial incentives for manufacturers and stricter requirements for the use of local components in projects with state participation.

The central element of support will be the provision of discounts to manufacturers of electrical products on copper purchased from the Almalyk Mining and Metallurgical Combine (AMMC). Starting from January 1, 2026 and over the next five years, when purchasing raw materials through the Uzbek Republican Commodity and Raw Materials Exchange (UzRTSB), enterprises will be able to count on a discount of 4% from London Metal Exchange (LME) quotes. At the same time, the mechanism of payment in installments for exchange transactions with copper will be abolished. To ensure transparency and timeliness of deliveries, the Competition Committee is tasked with quarterly monitoring of AGMK’s fulfillment of its contractual obligations to customers.

Along with support measures, control over the export of copper products is being tightened. From now on, exporters of copper wire and other products will be required to include an expanded list of technical characteristics in the cargo customs declaration. It will include parameters such as diameter, length, density, plating information and the exact percentage of copper in the alloy. Also, the Interdepartmental Commission dealing with issues of integration into the WTO was tasked with developing proposals for adjusting export duties on copper semi-finished products. An important clarification is that these changes will not affect goods produced under the customs processing regime.

A key aspect of the reforms is the introduction of a mandatory share of the use of domestic copper in electrical goods purchased for public investment projects, as well as in the implementation of construction and social programs. The following standards have been established: for cable products and transformers, the local copper content must be at least 70%, for pumps and electric motors - from 50%, and for other electrical products - at least 30%.

To financially support the industry, the Fund for Reconstruction and Development will allocate $100 million by 2030 to the Enterprise Development Company, which will provide preferential loans to enterprises in the electrical sector. These funds will be available for up to five years at 6% per annum, with a three-year grace period.

In order to stimulate innovation, the Uzeltehsanoat association will receive 10 billion soums annually from the Science and Innovation Support Fund. These funds are intended to support research and development activities, as well as the introduction of new developments in the sector.

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