$9.3 billion: Uzbekistan's remittances rise, while Russia's share shrinks
Central Asia Column “Steppe Ahead,” by Thomas Baier
In the first half of 2026, $9.3 billion in remittances flowed into Uzbekistan, 13% more than in the same period last year. This is shown in the latest foreign exchange report from the Uzbek Central Bank. Russia’s share of these inflows fell from 77.6% to 72.4% over the course of a year. Uzbek migrant workers are increasingly earning their money in Europe, East Asia, and neighboring countries, and they are sending more money home than ever before.
Remittances from the United Kingdom grow by 62%
In the first half of 2025, the Central Bank recorded $8.21 billion in inflows. Over the course of two years, remittances grew by 44%; in the first half of 2024, they totaled $6.5 billion. The momentum has recently been picking up month by month: In January and February, $1.2 billion each arrived; in March, $1.3 billion; in April, $1.6 billion; in May, $1.7 billion; and in June, already $2.2 billion. In the opposite direction, private individuals transferred $1.33 billion abroad, 8.1% more than in the same period last year. On a net basis, approximately $8 billion remained in the country. The Uzbek news portal Gazeta.uz broke down the country-specific data from the Central Bank’s report on August 17. According to the report, Uzbeks transferred $469 million from Kazakhstan (up 28% from the previous year), $372 million from the U.S. (up 19%), $319 million from the EU (up 27%), from South Korea $314 million (up 11%), and from Turkey $303 million (up 14%). Remittances from the United Kingdom grew the fastest: by 62% to $144 million. Within the EU, Ireland stood out with an 86% increase and Lithuania with an 18% increase. Russia remains the dominant source, accounting for nearly three-quarters of inflows, but its share is declining year after year. In 2025 as a whole, Uzbekistan received $18.9 billion from abroad, 28% more than in 2024.
Fewer Migrants in Russia, More in Europe
Behind these money flows lies a shift in labor migration. According to the Uzbek migration authority, 1.4 million Uzbeks work abroad. In Russia, the figure is 834,200 people, or 60%. There are 258,000 Uzbeks working in Europe, 84,400 in Kazakhstan, 72,100 in Turkey, and 46,400 in South Korea. The trend is clear: the number of migrants in the CIS countries fell by 29% within a year. In Europe, it rose by 42%, and in East Asia by 26%. Women, numbering 398,900, account for 28.6% of migrant workers, while young people, numbering 402,100, account for 28.9%. The government is taking action: 48 labor migration agreements with 23 countries are in effect. Since the beginning of the year, it has placed 124,500 citizens in better-paying jobs abroad. Payment methods are also changing. Direct transfers to bank cards totaled $4.8 billion, accounting for 51.7% of all inflows and representing a 32% increase. Traditional money transfer services stagnated at $4.3 billion. SWIFT transfers plummeted by 43% to US$142 million. Foreign exchange is supporting the national currency: Private individuals sold US$12.3 billion to banks in the first half of the year, 40% more than in the same period last year. At the same time, they purchased only $6.8 billion, resulting in a net surplus of $5.5 billion. The soum has recently appreciated against the U.S. dollar.
EU sanctions are hitting the main remittance channel
The economic recovery has a weak spot. In July, the EU imposed sanctions on the clearing bank of the Russian money transfer service Korona Pay. According to the Kazakh business newspaper Kursiv, approximately $2.4 billion flows annually to Uzbekistan via this system, including funds from South Korea, Turkey, and the EU. Several Uzbek banks subsequently suspended these transfers, including Kapitalbank, Asakabank, and Agrobank. The central bank is trying to reassure the public. “The restrictions target the bank that processes the transactions, not the Korona Pay system itself,” said Otabek Tojiddinov, head of the central bank’s Department of Currency Regulation and Supervision. According to the Central Bank, transfers will continue for the time being using security deposits that Uzbek banks have provided. At the same time, Tashkent is negotiating to find a non-sanctioned processing bank. The stakes are high for Uzbekistan. Remittances finance consumption and imports and help offset the chronic trade deficit. Diversifying the source countries reduces dependence on the Russian economy and the ruble exchange rate. The Korona Pay case also shows that the payment infrastructure remains vulnerable as long as the majority of transfers run through Russian systems. Whether the June pace of $2.2 billion per month will hold depends on two factors: Russian demand for labor and functioning remittance channels. If this pace holds, the total for 2026 will significantly exceed the previous year’s record of 18.9 billion U.S. dollars. The answer will be provided by the Central Bank’s figures for the third quarter.