Uzbekistan's privatisation attracts Chinese and Russian bidders

Walking along the high street in Tashkent, Uzbekistan, Chinese shops, such as low-cost retailer Guangzho-headquartered Minso, are sprouting up between new luxury apartment blocks and shiny shopping malls. A Hilton hotel opened in October and a Radisson is under construction in the city to cater to an influx of international businessmen and Chinese tourists.

More foreigners in the capital are the most visible sign at street level of Uzbekistan’s decision to open up its economy to the outside world after more than two decades of isolation.

Uzbekistan kicked off a privatisation process this year; up for grabs are the crown jewels of Uzbekistan’s economy, including stakes in oil & gas giant Uzbekneftgaz, flag carrier Uzbekistan Airways and Navoi Mining and Metallurgy Combine – which operates the world's largest open-pit gold mine.

To capture this windfall, Chinese and Russian companies are already scouting for opportunities in the former Soviet republic, said people familiar with negotiations.