Industrial Zone Firms Dispute Farmer Land Payments

Tashkent, Uzbekistan (UzDaily.com) — Enterprises operating in Uzbekistan’s small industrial zones are facing demands to pay compensation to farmers for land previously withdrawn from agricultural use.

The issue was highlighted by the Office of the Commissioner for the Protection of the Rights and Legitimate Interests of Entrepreneurs.

According to the office, earlier government resolutions establishing industrial zones did not impose obligations on businesses to compensate agricultural producers for losses. Such conditions were also absent from auction terms and investment agreements signed with entrepreneurs.

Nevertheless, the Ministry of Agriculture has calculated compensation payments totaling 61 billion soums for 192 entrepreneurs operating in industrial zones and is currently seeking to recover these funds.

The requirement to compensate agricultural losses when purchasing land plots through auctions was introduced only in May 2025 under Article 28 of the Land Code.

The Law on Administrative Procedures protects the legitimate expectations of individuals acting in good faith and does not allow the revision of agreements with entrepreneurs in ways that harm businesses.

For this reason, the business ombudsman is challenging the compensation claims. In the Kashkadarya region, following a cassation appeal, a court overturned a ruling that had required the company E.R.A.M.M. to pay 206 million soums.

The ombudsman’s office has called on entrepreneurs facing similar situations to seek support and urged government bodies to strictly adhere to the principle of protecting legitimate expectations.

In addition, the office has proposed drafting a government resolution that would fully exempt enterprises operating in industrial zones from such payments.