Uzbekistan to Require at Least 70% Local Copper in Cables and Transformers for State Investment Projects

Tashkent, Uzbekistan (UzDaily.com) — New requirements for the use of domestically produced electrical equipment in state investment projects are being introduced in Uzbekistan.

President Shavkat Mirziyoyev has approved a comprehensive package of measures to support the electrical engineering industry, which includes both financial incentives for manufacturers and local content requirements.

According to the document, companies in the sector will be eligible for interest compensation on loans used to purchase copper.

When buying copper from the Almalyk Mining and Metallurgical Complex through the Uzbek Commodity Exchange (UZEX), producers will receive a 4% discount from the London Metal Exchange (LME) price.

The discount will be valid for five years — from 1 January 2026 to 31 December 2030. At the same time, the option of deferred payment for copper purchases through the exchange will be abolished. The Competition Committee will monitor compliance with delivery terms on a quarterly basis.

Copper wire and product exporters will be required to specify technical parameters in customs declarations, including diameter, length, density, coating details, and copper content percentage.

The Interagency Commission on WTO Affairs has been tasked with preparing proposals to adjust export duties on copper semi-finished products, while ensuring the changes do not apply to goods processed under the customs processing regime.

For state investment projects, minimum local copper content requirements will now apply:

Cables and transformers — at least 70% local copper

Pumps and electric motors — at least 50%

Other electrical goods — at least 30%

The Fund for Reconstruction and Development will allocate US$100 million to the Entrepreneurship Development Company to provide loans to electrical engineering enterprises through 2030.

These loans will be issued at 6% annual interest, for up to five years, with a three-year grace period.

Additionally, the Uzeltekhsanoat Industry Association (Uzeltekhsanoat) will receive 10 billion soums annually from the Science and Innovation Support Fund to finance R&D and new product development in the electrical engineering sector.

These measures aim to boost domestic electrical manufacturing, encourage innovation, and enhance the industry’s export potential.