State-owned companies will no longer provide sponsorship without presidential approval

State-owned companies in Uzbekistan will no longer be allowed to engage in sponsorship without presidential approval. This is stated in the presidential decree signed on 18 November titled “On Measures to Reduce Production Costs and Improve Efficiency in State Enterprises.”

According to the document, the main purpose of the decree is to reduce production costs and improve operational efficiency in state enterprises where the state share is 50 percent or higher by 2026.

Under paragraph 9 of the decree, state enterprises will cease providing sponsorship assistance in all cases except those mandated by decisions and instructions of the President of Uzbekistan.

From 1 March 2026, the following measures will be implemented in large strategic state enterprises managed by UzAssets JSC:

• The Unified Treasury information system will be introduced into the accounting system, allowing financial planning, procurement, contract execution, treasury payments, trade operations, and compliance monitoring. Through this system, all revenues and expenditures of these enterprises and their subordinate entities will be carried out in a centralized manner.
• An electronic program called the Financial Model will be launched to enable online analysis of production and financial flows, cost, investment, and loan data, as well as to monitor the implementation of business plans.
• Shared Service Centers will be established to centralize auxiliary services and functions, including procurement, human resources, accounting, information technology, and legal services.
• To automate business processes, the information systems of the Customs Committee, Tax Committee, procurement operators, the state procurement electronic system, e-invoice operators, servicing commercial banks, and other organizations will be authorized for integration.

For reference, the UzAssets portfolio includes the Navoi Mining and Metallurgy Combine, Navoiyuran, Almalyk Mining and Metallurgy Combine, Uzmetkombinat, Uzneftegaz, Uzbekcoal, UzAuto Motors, Uzkimyosanoat, Navoiyazot, Uzbekhydroenergo, Thermal Power Plants, Uztransgaz, UzGasTrade, Hududgazta’minot, National Electric Grids of Uzbekistan, Regional Electric Grids, Uzbekistan Post, Uzbekistan Railways, Uzbekistan Airways, Uzbekistan Airports, Toshshahartranskhizmat, Uztelecom JSC, and nine state-owned banks.