Switzerland returns seized Uzbek assets — funds directed to social programs

Uzbekistan's Ministry of Economy and Finance has reported that illegally acquired assets of Gulnora Karimova, the eldest daughter of Uzbekistan’s first president, Islam Karimov, which were confiscated in Switzerland, are being allocated to the health and education sectors.

It is noted that, under the initiative of President Shavkat Mirziyoyev, these assets seized in Switzerland are being directed toward healthcare and education projects in Uzbekistan. On August 16, 2022, a restitution agreement was signed between Uzbekistan and Switzerland, within which a multi-party trust fund called "Ishonch" was established under the United Nations. A strategic committee and a civil society advisory board were formed to determine how the funds should be allocated.

As part of the agreement, a deal was reached to return an initial tranche of $131 million. In healthcare, 5,841 units of 23 types of modern medical equipment have been purchased for 230 perinatal centers across the country. Additionally, over 1,400 medical devices are planned to be acquired using funds saved through procurement efficiencies.

Furthermore, more than 11,000 medical staff have been trained through UN organizations. Maternity service protocols and guidelines have been updated to meet international standards across 29 national procedures.

The "Ishonch" fund is also financing educational initiatives, which are divided into two components. The first focuses on expanding access to education through information technologies and digital solutions. The second involves collaboration with international organizations to improve sanitation systems in schools, modernize heating infrastructure, and enhance public involvement in school management. The authorities have emphasized that the return of illicit funds confiscated in Switzerland represents a victory for the Uzbek people. They have expressed gratitude to international organizations contributing to this agreement and supporting social projects.

In February, Uzbekistan’s Minister of Justice, Akbar Toshqulov, and Switzerland’s Ambassador to Uzbekistan, Konstantin Obolenskiy, signed an agreement on the allocation of confiscated assets. Under this agreement, approximately $182 million is set to be returned to Uzbekistan.

These funds were illicitly obtained by certain individuals in Uzbekistan and were fully seized in 2012 as part of a criminal case initiated by the Swiss Attorney General's Office against Gulnora Karimova. The money will be returned via the United Nations’ "Uzbekistan Vision 2030 Fund," a multi-stakeholder trust fund.

Later, Belgium’s Brussels prosecutor’s office submitted a request to the Confiscated Assets Management Center (COIV) for the transfer of $108 million, which allegedly belonged to Gulnora Karimova, to the Belgian state treasury account. The Brussels prosecutor ruled that the illegally obtained assets should be divided between the two countries. This decision was based on an existing legal mechanism within the European Union for the allocation of confiscated funds between its member states. Under this ruling, $108 million is designated for Uzbekistan. However, the statement did not disclose details regarding the origin of these funds or their specific connection to any criminal activity.