Tashkent’s Grand Pivot: €10 Billion EU Investment Redefines Regional Power

Uzbekistan is ushering in a new era of international economic cooperation, marked by a landmark Enhanced Partnership and Cooperation Agreement (EPCA) with the European Union and a significant commitment of €10 billion in investments. This pivotal development, solidified during President Shavkat Mirziyoyev’s recent visit to Brussels, signals a profound shift in the Central Asian nation’s strategic trajectory. The momentum is set to continue with upcoming talks in Tashkent, where US Special Envoy for South and Central Asia, Sergio Gor, and Deputy Assistant Secretary Christopher Landau will engage with Uzbek government officials from October 26th to 30th, focusing on bolstering economic ties, trade expansion, and regional security.

President Mirziyoyev’s high-profile visit to Brussels included crucial meetings with European Council President António Costa, European Commission President Ursula von der Leyen, and an audience with King Philippe of Belgium. A highlight of these engagements was the formal signing ceremony of the EPCA, an agreement designed to fundamentally update and broaden the legal framework guiding relations between Uzbekistan and the EU. This new, comprehensive accord replaces a pact dating back to 1996, now encompassing critical areas such as trade, investment, science, education, innovation, environmental protection, and climate change. Uzbek officials have hailed the agreement as elevating their partnership with the EU to an “unprecedented high level.”

European Commission Vice-President Kaya Kallas underscored the historical significance of the agreement, stating it “opens a new chapter in relations between the EU and Uzbekistan,” promising substantial progress in political, trade, and defense cooperation. She emphasized that human rights, civil society engagement, and democratic principles would be integral to this closer collaboration. Concurrently, a joint business forum held during President Mirziyoyev’s visit yielded agreements for new, promising projects with leading European companies, collectively totaling over €10 billion. These investments span strategic sectors including energy, chemicals, logistics, critical mineral development, textiles, and pharmaceuticals, contributing to a broader portfolio of joint initiatives with the EU that now exceeds €40 billion.

Further cementing the strengthened ties, Mirziyoyev, Costa, and von der Leyen issued a joint statement reaffirming their commitment to deepening strategic partnership and exploring new avenues for collaboration. A significant outcome of the visit was the official announcement of the completion of bilateral negotiations with the EU regarding Uzbekistan’s accession to the World Trade Organization, a major step towards integrating into the global trading system. This move aligns with Uzbekistan’s consistent pursuit of a multi-vector foreign policy, as highlighted by Stanislav Pritchin, head of the Central Asia sector at IMEMO RAS, who noted Tashkent’s unwavering commitment to WTO membership despite global trade challenges.

Vladimir Norov, former Minister of Foreign Affairs of Uzbekistan, emphasized that the EPCA represents a strategic diversification rather than a departure from traditional partners. He clarified that the agreement is not a military or political alliance against any nation, but rather a mechanism to offer Uzbekistan alternative paths for development, thereby mitigating risks associated with over-reliance on a single power center. Norov pointed out that Uzbekistan’s participation in organizations like the CIS, EAEU (as an observer), and SCO, crucial for security, migration, and logistics, will be maintained. He further noted that collaboration with the EU on technology and sustainable development will bolster Tashkent’s negotiating position with Beijing regarding infrastructure projects under the Belt and Road Initiative, helping to avert potential debt traps and broaden access to diverse investments. Developing relations with Ankara, particularly given Turkey’s customs union with the EU, could also pave the way for trilateral projects.

In recent years, the European Union has intensified its focus on Central Asia, with Uzbekistan emerging as a crucial partner. Since updating its regional strategy in 2019 to prioritize resilience, economic growth, and regional cooperation, the EU has increasingly utilized Enhanced Partnership and Cooperation Agreements as key instruments. Kazakhstan and Kyrgyzstan have already inked similar agreements. A testament to this growing engagement was the inaugural “European Union – Central Asia” summit held in Samarkand in April 2025, where the EU unveiled a €12 billion investment package for the region and announced the opening of a European Investment Bank office in Uzbekistan. These developments underscore Uzbekistan’s escalating importance, not only as an economic partner but also as a vital logistical hub poised to rebalance regional dynamics and lessen dependence on traditional powers like Russia and China.