Uzbekistan Airways Revamps Supervisory Board to Align with National Investment Fund Mandate

Tashkent, Uzbekistan (UzDaily.com) — In a significant move toward corporate governance reform, the Ministry of Economy and Finance of Uzbekistan has overhauled the Supervisory Board of the national carrier, Uzbekistan Airways. This restructuring, finalized on 2 March, follows a 25 February presidential decree aimed at modernizing the management of state-owned enterprises (SOEs) ahead of major international listings.

As the sole shareholder, the Ministry has removed three prominent officials from the board: Odilbek Isakov, CEO of Infrasia Capital and former Deputy Finance Minister; Jasurbek Choriev, Deputy Minister of Transport; and Zafar Astanov, a high-ranking official within the Ministry of Economy and Finance. These departures mark a shift away from traditional state-heavy oversight toward a more market-oriented advisory model.

Joining the board are two strategic appointments: Pavel Mkhitaryan, a Senior Investment Manager at Franklin Templeton, and Otabek Ungbaev, a coordinator within the Presidential Administration. Mkhitaryan’s appointment is a direct result of the mandate held by the National Investment Fund of Uzbekistan (UzNIF), which is managed by Franklin Templeton. The global asset manager is currently tasked with transforming 18 of the country’s largest state assets, including a 25% stake in Uzbekistan Airways.

The changes align with President Shavkat Mirziyoyev's recent resolution to increase the share of independent members on SOE boards to 50%. This "transformation phase" is part of a broader roadmap to prepare UzNIF for an Initial Public Offering (IPO) on both domestic and international stock exchanges—including the London Stock Exchange—by the end of 2026.

By integrating international fund managers like Franklin Templeton directly into the decision-making process, Uzbekistan aims to implement OECD governance standards, improve financial transparency, and boost the airline's appeal to global institutional investors.