Tobacco Asia

68 tobaccoasia Issue 2, 2026 March / April Uzbekistan Similar regulatory pressures and illicit trade con- cerns are also emerging in other Central Asian markets, including neighboring Uzbekistan where, according to the latest data from the Uzbek Cus- toms Committee, the value of illegal tobacco products is estimated at more than UZS620 billion (US$49 million) annually. To combat illegal tobacco trade more effec- tively, the government will ban cash purchases of tobacco products beginning April 1. In addition, as Uzbekistan moves toward joining the World Trade Organization (WTO)—a step that could take place as early as this year—the government plans to increase transparency in the domestic to- bacco market and align it with western standards. Authorities intend to introduce amendments to the country's tax code to adjust excise tax rates on both imported and locally produced tobacco products. As part of these plans, authorities will also focus on expanding domestic raw material pro- duction. The government intends to establish the country's first tobacco cluster in the Urgut district of the Samarkand region, which will supply raw materials for the industry. Under the project, the cluster will focus on growing tobacco—particular- ly the basma and virginia varieties—and process- ing the harvested leaf. Global tobacco companies may also take part in the processing stage. Officials expect the project to significantly reduce the volume of imported tobacco products in the Uzbek market. The cluster will include up to 800 farms. In addition to supplying the domes- tic market, part of the output—dry and processed tobacco raw materials—will be exported, with ex- port volumes projected to reach up to 1,500 tons. PMI has also expanded its presence in Uz- bekistan by opening an office in Tashkent, reflect- ing what the company describes as the country's growing strategic importance and enabling closer cooperation with stakeholders and consumers. Kyrgyzstan In addition to Uzbekistan, authorities in Kyrgyz- stan—another major regional state —also plan to create conditions to expand domestic production and exports of tobacco raw materials. According to the Kyrgyz Ministry of Agriculture, Kyrgyz- stan has significantly increased its tobacco exports over the past 2 years, strengthening its position in neighboring and international markets as a major regional exporter. Kyrgyzstan already ranks among the largest tobacco exporters in the post-Soviet space and Central Asia. In addition to Russia, the country exports tobacco to Southeast Asia, including Viet- nam, and even to the European Union. According to official data, shipments to Greece alone reached nearly 400 tons last year. Most of the country's tobacco is currently grown in the south, particularly in the Nookat district, where local production and processing ca- pacity has expanded in recent years. Local authorities expect the country's export geography to expand in the coming years, with ad- ditional shipments planned to several major Asian and European markets. The government also in- tends to support producers through preferential lending, modernization of production facilities, and promotion of the "Made in Kyrgyzstan" brand. Tajikistan Attracting private investment into the tobacco sector remains a priority for the government of Tajikistan. Authorities are interested in bringing in both major global companies and smaller firms to build factories and develop production in the country. Local media previously reported that Dubai- based Oxus Interasia FZCO plans to build a to- bacco manufacturing facility in the Dangara Free Economic Zone in the Dangara district of Ta- jikistan's Khatlon region. The project, which is expected to take up to 2 years to complete, will involve investments of about US$20 million. The new factory will have the capacity to produce up to 6 billion cigarettes and other tobacco products annually. Uzbekistan is planning its first tobacco cluster in Urgut, Samarkand region, focused on growing basma and virginia leaf and processing it locally, with possible involvement from international tobacco companies.

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