Uzbekistan’s Yoshlik copper expansion project, a $4.8 billion initiative aimed at nearly doubling the country’s copper production by 2026, is at risk following U.S. sanctions on Gazprombank, a key financier of the project. The sanctions, which freeze the bank out of the international payment system, threaten disruptions to the project as Almalyk MMC, the state-owned firm overseeing the expansion, scrambles to secure alternative financing and avoid secondary sanctions.
The project’s reliance on Gazprombank and its previous financial backing from other Russian institutions like VEB.RF complicate matters, with European firms like Thyssenkrupp and ABB Group potentially impacted by the fallout. The broader geopolitical landscape, including Russia’s ties to Uzbekistan and European financing, further complicates the situation, raising concerns over the project’s future.
