ECONOMIC RELATIONS BETWEEN UZBEKISTAN AND FEDERATION OF RUSSIAN

INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCHERS ISSN: 3030-332X Impact factor: 8,293 Volume 14, issue 1, Oktober 2025 https://wordlyknowledge.uz/index.php/IJSR worldly knowledge Index: google scholar, research gate, research bib, zenodo, open aire. https://scholar.google.com/scholar?hl=ru&as_sdt=0%2C5&q=wosjournals.com&btnG https://www.researchgate.net/profile/Worldly-Knowledge https://journalseeker.researchbib.com/view/issn/3030-332X 84 84 ECONOMIC RELATIONS BETWEEN UZBEKISTAN AND FEDERATION OF RUSSIAN Shakhnoza Kabilova Lecturer, Department of Economics Karshi State University Email: [email protected] Tel: +998995814150 ORCID ID: 0009-0009-9160-7548 Abstract: Economic relations between Uzbekistan and the Russian Federation have evolved over centuries, forming a durable basis for socio-political, cultural, and commercial ties. Since gaining independence in 1991, Uzbekistan has prioritised strengthening its economic partnership with Russia, which remains one of the country’s leading trade and investment partners. This article provides a comprehensive analysis of historical foundations, the current state, and future prospects of bilateral cooperation. Particular attention is paid to trade turnover, investment flows, industrial projects, energy cooperation, logistics, labour migration, and educational exchanges. The study argues that, despite trade imbalances and structural challenges, Uzbekistan and Russia are entering a new phase of strategic partnership based on mutual economic interests and regional integration goals. Keywords: Uzbekistan, Russia, trade turnover, investments, energy, nuclear projects, labour migration, remittances, logistics, higher education, integration. ЭКОНОМИЧЕСКИЕ ОТНОШЕНИЯ МЕЖДУ УЗБЕКИСТАНОМ И РОССИЙСКОЙ ФЕДЕРАЦИЕЙ: АНАЛИЗ И ПЕРСПЕКТИВЫ Кабилова Шахноза Жураевна Каршинский государственный университет преподаватель кафедры "Экономика" e-mail: [email protected] Тел: +998995814150 Аннотация: экономические отношения между Узбекистаном и Российской Федерацией развивались веками, заложив прочную основу социально-политических, культурных и торговых связей двух стран. После обретения Узбекистаном независимости развитие торгово - экономического сотрудничества с Россией заняло важное место в экономической политике страны. В данной статье будет проанализирована история, текущее состояние и перспективы экономических отношений между Узбекистаном и Россией. Ключевые слова: инвестиции, торговля, экономические отношения, внешняя торговля, интеграция, партнёрство, инвестиционные потоки, энергетика, проекты, промышленность, логистика, трудовая миграция и трансферты, ядерная энергетика. Introduction INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCHERS ISSN: 3030-332X Impact factor: 8,293 Volume 14, issue 1, Oktober 2025 https://wordlyknowledge.uz/index.php/IJSR worldly knowledge Index: google scholar, research gate, research bib, zenodo, open aire. https://scholar.google.com/scholar?hl=ru&as_sdt=0%2C5&q=wosjournals.com&btnG https://www.researchgate.net/profile/Worldly-Knowledge https://journalseeker.researchbib.com/view/issn/3030-332X 85 85 The economic relations between Uzbekistan and Russia represent one of the central pillars of Uzbekistan’s foreign economic policy. Their historical roots date back to the nineteenth century, when the territories of present - day Uzbekistan were incorporated into the Russian Empire, followed by deeper integration during the Soviet period. The USSR created a single economic space in which Uzbekistan specialised in the supply of agricultural products - particularly cotton and fruits - as well as natural resources. In return, Russia supplied industrial goods, machinery, and technology, shaping an interdependent system of production and distribution. After the dissolution of the Soviet Union in 1991, Uzbekistan’s independence opened a new stage in bilateral relations. Despite challenges of political transition and economic restructuring, Russia has consistently remained among Uzbekistan’s key partners in trade, investment, and energy cooperation. In the early years of independence, the economies of both countries were closely interconnected through supply chains, transport corridors, and labour migration flows. In the twenty-first century, relations have further deepened. Russia remains one of Uzbekistan’s top three trading partners, second only to China, accounting for around 16% of the country’s foreign trade turnover. Beyond trade, the partnership now extends to large - scale industrial and energy projects, including nuclear energy cooperation, as well as humanitarian ties in education and labour mobility. This paper seeks to examine the evolution of Uzbekistan–Russia economic relations, focusing on three key aspects: 1. Historical background and structural foundations of cooperation. 2. Current state of trade, investment, and labour migration. 3. Prospects for long-term partnership within the framework of Uzbekistan’s 2030 Development Strategy. Materials and Methods The study is based on a combination of historical and statistical analysis, comparative methods, and a review of official documents. Data were drawn from the State Committee of the Republic of Uzbekistan on Statistics, the Central Bank of Uzbekistan, reports of the World Bank, as well as decrees and strategies adopted by the Government of Uzbekistan. Key methodological steps included: - Examining the historical evolution of Uzbekistan–Russia economic relations from the nineteenth century to the post-independence period. - Analysing trade turnover, investment volumes, and labour migration flows during 2016-2025. - Comparing the structure of exports and imports to assess trade imbalances. - Evaluating bilateral projects in energy, industry, and education. INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCHERS ISSN: 3030-332X Impact factor: 8,293 Volume 14, issue 1, Oktober 2025 https://wordlyknowledge.uz/index.php/IJSR worldly knowledge Index: google scholar, research gate, research bib, zenodo, open aire. https://scholar.google.com/scholar?hl=ru&as_sdt=0%2C5&q=wosjournals.com&btnG https://www.researchgate.net/profile/Worldly-Knowledge https://journalseeker.researchbib.com/view/issn/3030-332X 86 86 This approach allows for a comprehensive understanding of the dynamics, opportunities, and challenges in bilateral cooperation. Results and analisies Trade Relations Russia consistently ranks as Uzbekistan’s second-largest trading partner after China. In the first half of 2025, bilateral trade turnover reached approximately USD 6 billion, accounting for 16.3% of Uzbekistan’s total foreign trade. By the end of 2024, total trade volume between the two countries stood at USD 11.6 billion, with Uzbekistan’s exports to Russia valued at USD 1.7 billion and imports at over USD 4 billion, resulting in a significant trade imbalance in favour of Russia. Table 1. Uzbekistan-Russia Foreign Trade (2022-2025yy) Year Export to Russia (bn $) Import from Russia (bn $) Turnover (bn $) Share in Uzbekistan’s total FTO (%) 2022 1.4 3.2 4.6 14.8 2023 1.5 3.7 5.2 15.5 2024 1.7 4.0 5.7 16.0 2025 1.8 4.2 6.0 16.3 Table 2. Remittances to Uzbekistan (2023-2025yy) Year Total remittances (bn $) From Russia (bn $) Share from Russia (%) 2023 13.2 10.1 76.5 2024 14.8 11.5 77.7 2025 8.2 6.4 78.0 Uzbek exports are dominated by agricultural products (cotton, fruits, vegetables), textiles, gold, chemical goods, and building materials. Russia exports oil and gas, machinery, metals, vehicles, and electronics. INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCHERS ISSN: 3030-332X Impact factor: 8,293 Volume 14, issue 1, Oktober 2025 https://wordlyknowledge.uz/index.php/IJSR worldly knowledge Index: google scholar, research gate, research bib, zenodo, open aire. https://scholar.google.com/scholar?hl=ru&as_sdt=0%2C5&q=wosjournals.com&btnG https://www.researchgate.net/profile/Worldly-Knowledge https://journalseeker.researchbib.com/view/issn/3030-332X 87 87 Figure 1. Dynamics of Uzbekistan–Russia Trade Turnover (2022–2025) Investment and Joint Enterprises As of 2025, there are around 3,000 enterprises with Russian capital operating in Uzbekistan. Russia remains one of the largest investors in energy, industry, metallurgy, automotive production, and construction materials. Key investment projects include: - Expansion of gas supply contracts and energy infrastructure modernisation. - Construction of industrial plants in metallurgy and chemicals. - Collaboration in automotive production and agricultural machinery. Energy Cooperation Russia plays a crucial role in Uzbekistan’s energy sector. Natural gas agreements ensure supplies to the Uzbek market, but they also highlight the country’s dependence on Russian imports. In 2023, an agreement was signed between Uzbekistan, Kazakhstan, and Russia to cooperate on regional gas supply, strengthening trilateral energy integration. In addition, cooperation with Rosatom includes plans for the construction of modular nuclear power reactors in Jizzakh region, which marks a strategic step towards diversifying Uzbekistan’s energy balance. Labour Migration and Remittances INTERNATIONAL JOURNAL OF SCIENTIFIC RESEARCHERS ISSN: 3030-332X Impact factor: 8,293 Volume 14, issue 1, Oktober 2025 https://wordlyknowledge.uz/index.php/IJSR worldly knowledge Index: google scholar, research gate, research bib, zenodo, open aire. https://scholar.google.com/scholar?hl=ru&as_sdt=0%2C5&q=wosjournals.com&btnG https://www.researchgate.net/profile/Worldly-Knowledge https://journalseeker.researchbib.com/view/issn/3030-332X 88 88 Labour migration continues to be a defining feature of bilateral relations. By late 2024, the number of Uzbek migrant workers in Russia was about 700,000, down from 1.2 million in 2023. Despite this decline, remittances from Russia to Uzbekistan reached a record USD 14.8 billion in 2023, representing around 77% of all transfers received by Uzbekistan. These remittances remain a vital source of household income, contributing to poverty reduction and sustaining domestic consumption. Educational and Humanitarian Ties Uzbekistan hosts 15 branches of Russian universities as of 2025, including leading institutions in engineering, medicine, and economics. Student exchanges and scholarship quotas are expanding, reinforcing the human capital dimension of bilateral cooperation. Conclusion and Recommendations The analysis demonstrates that economic relations between Uzbekistan and the Russian Federation remain a critical pillar of Uzbekistan’s foreign economic strategy. Historically rooted in the nineteenth century and institutionalised during the Soviet period, this partnership has evolved into a comprehensive strategic cooperation encompassing trade, energy, industry, logistics, migration, and education. Despite existing challenges, such as trade imbalances and short-term energy dependence, the trajectory of bilateral relations points towards deeper integration and diversification. The portfolio of over 200 joint projects, the construction of modular nuclear reactors, and the expansion of industrial cooperation underscore the dynamic and future-oriented nature of the partnership. Looking ahead, three strategic pillars will define Uzbekistan-Russia relations in the medium term: Energy security – short-term reliance on Russian gas supplies combined with mediumand long-term diversification through nuclear energy and renewable sources. Industrial and regional cooperation – strengthening industrial localisation, enhancing technological transfer, and expanding joint ventures across multiple regions. Human capital and financial flows – maximising the benefits of remittances while reducing migration-related risks, and investing in education and skills development through bilateral programmes. By 2030, the main task for Uzbekistan is to increase the share of value-added exports, reduce structural dependence on primary commodities, and ensure technological modernisation. In this context, cooperation with Russia, combined with diversification towards other global partners, will remain essential for sustainable economic growth. 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