Uzbekistan Tightens Control over Export of Pulp and Cotton Fiber Due to Sanctions Risk

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has strengthened control over the export of pulp and cotton fiber amid the risk of sanctions related to the potential use of these products in military equipment production, Deputy Prime Minister Jamshid Khodjaev said during an open dialogue of the government commission with entrepreneurs in Tashkent Region.

“There is no outright ban on exporting pulp or similar goods — they remain under regulatory control. Strict oversight is being implemented not only in Uzbekistan but by all producers worldwide. If we do not carry out the necessary checks, the entire system could face sanctions,” he noted.

“Without these measures, you would not be able to receive payment for your goods or complete transactions — the situation would become extremely difficult. Therefore, pulp and cotton fiber producers are now subject to scrutiny for each deal and for information about their buyers,” Khodjaev added.

Abrorkhodja Turdaliyev, Deputy Chairperson of the Central Bank of Uzbekistan, emphasized that export contracts with companies listed on the U.S. SDN list, or sales of products that may have dual-use applications — for example, via Russian companies — must be suspended.

He explained that if banks do not accept funds for export contracts, it is intended to protect entrepreneurs. “Even if money is accepted via transit through a bank, those funds will remain under control. As you know, one or two companies in Uzbekistan have already been added to the SDN list, and their operations have been suspended. Their exports involved transactions of $10–15 thousand. Your goods could potentially be used by military forces,” the regulator’s representative stressed.

He also emphasized that banks have received official warnings regarding potential risks when concluding export contracts with companies listed on the SDN list, as well as when exporting dual-use products.