On February 28, President of Uzbekistan Shavkat Mirziyoyev signed a decree on the creation of a free trade zone “Uzbekistan - Turkmenistan”.

The trade zone will be located in the Shavat district of the Khorezm region of Uzbekistan on an area of 3.1 hectares. An appropriate infrastructure will be created here, including facilities for storage, sorting, sales, transportation of goods, etc.

The free trade zone is created for 30 years with the possibility of further extension. This provides for the organization of sales of products produced exclusively in Uzbekistan and Turkmenistan. At the same time, a “free customs zone” regime will operate, in which retail trade operations are allowed. Access to the zone will be organized through separate checkpoints. Citizens of Turkmenistan, as well as foreigners visiting the neighboring country, will be able to stay here without a visa for up to 15 days.

Persons, vehicles and goods will move freely within the free trade zone. It is planned to lease buildings and structures in the trade zone to business entities on the basis of online electronic auctions. A “Single Window” center will be opened for entrepreneurs to provide customs, tax, certification, phytosanitary, veterinary, and transport services. Banking and currency exchange points, hotels, a first-aid post and other infrastructure facilities will also be equipped.

The project is planned to be implemented in two years. The basis for it is the agreement on the creation of the Shavat-Dashoguz border trade zone, reached by the heads of Turkmenistan and Uzbekistan in October 2022. A similar joint project near the borders of the Lebap velayat of Turkmenistan and the Bukhara region of Uzbekistan is under development.