Uzbekistan Cuts Initial Payment for State Assets to 15%

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan is changing the terms for selling state assets and vacant non-agricultural land plots. The new rules are set out in a presidential decree dated 28 August aimed at reducing state participation in the economy and accelerating privatization.

One of the key changes is a reduction in the initial payment required when purchasing state assets and land through online auctions. Buyers will now have to pay 15% of the purchase price within 30 days of acquiring an asset. Previously, the initial payment was set at 30%.

The remaining amount can be paid within the established deadlines without interest.

For assets worth 20,000 or more basic estimated values, additional payment options are available.

If the full purchase price is paid within six months, the buyer will receive a 25% discount.

If 50% of the price is paid during the first six months, the remaining amount can be paid interest-free over seven years. Another option allows buyers to pay 35% of the price within three months and pay the remaining amount interest-free over five years.

In addition, a buyer who has paid at least half of the value of a state asset will be allowed to reconstruct, demolish, redevelop and repair the acquired property before making the full payment.

The decree also establishes a separate procedure for assets that cannot be sold through open electronic auctions or exchange trading.

If an asset remains unsold for three months, its starting price will be reduced successively by 10%. The reduction can continue until the price reaches 10% of the asset’s initial book value.

If an asset cannot be sold within two months, the Agency for Management of State Assets will be able to divide it into several separate lots or, conversely, combine several assets and put them back up for sale.

At a repeat auction, the presence of only one bidder will no longer prevent a sale. In such cases, the bidder will be able to purchase the lot at the announced price.

Hybrid auction format

A hybrid auction combining price-reduction and price-increase mechanisms is being introduced for the sale of state assets.

At the first stage, the price of an asset will be reduced until one of the participants expresses a willingness to purchase it. The process will then move to a price-increase stage among interested bidders. The initial step for both price reductions and increases is set at 2%.

Separate rules apply when only one offer is submitted during the auction. In certain circumstances, such a buyer may be offered the property at a price no lower than its net value.

Rules to apply to state-bank assets

The new mechanisms will apply not only to the sale of property belonging to state-owned enterprises. They may also be used to sell assets of commercial banks in which the state owns 50% or more of the shares, as well as assets of investment companies transferred to them to settle outstanding debts.

Such assets may be sold at market value through open auctions under the new price-reduction and payment rules.

If property received by a bank in settlement of a debt cannot be sold within a year, it may be transferred to the Agency for Management of State Assets for further sale.

The changes to auction terms come alongside an expansion of the privatization program. In 2026, the authorities plan to put state stakes in 84 business entities, 1,242 real estate properties and around 8,000 hectares of land up for sale.

The total value of the state assets and land slated for sale is estimated at around 100 trillion soums. The minimum proceeds target from their sale is set at 14 trillion soums.

The program also includes the liquidation or reorganization of 85 enterprises with state participation. Assets that were not previously sold will also be put up for auction again.