A key part of Uzbekistan’s development strategy is to expand its copper and gold production, but the new U.S. sanctions on Gazprombank hit these plans logistically, financially, and other ways. The situation is dramatic in Uzbekistan, where Russia is the nation’s largest trading partner, and also a source of remittances from Uzbek guest workers. However, the same situation exists in many countries, which the U.S. considers as friends, but for which U.S. policy is causing harm.
On Dec. 13 the Times of Central Asia estimated that the entire $4.8 billion copper and gold mine expansion project faces disruption from the U.S. sanctions on Gazprombank. The paper reports, “The project, managed by state-owned Almalyk Mining and Metallurgical Combine (MMC), is critical to Uzbekistan’s plan to nearly double its copper production by 2026, according to The Diplomat. However, with Gazprombank now excluded from the international payments system, the project’s financing is at risk. The Russian government directly owns 36.44% of Gazprombank’s capital.”
