Uzbekistan has established procedures for imposing financial sanctions on legal entities that violate water withdrawal regulations in agriculture, fisheries, industry, energy and domestic water use. The measures are outlined in a government resolution dated October 21. Under the resolution, a warning system for first-time violations will take effect on January 1, 2027, while repeated violations may result in financial sanctions increased fivefold.
The resolution identifies several types of violations related to water withdrawal and usage. These include:
Withdrawing water in excess of established limits.
Using water without a contract or special permit.
Failing to equip water withdrawal points with metering and management devices.
Withdrawing water without authorization.
Legal entities found responsible for these violations will be subject to the procedures established under the resolution.
Starting January 1, 2027, Uzbekistan will introduce a "warning for the first offense" principle for legal entities. The provision will apply when a legal entity commits a violation for the first time within a year, provided that the violation does not cause harm to human life or health or damage to another person's property.
In such cases, the responsible inspectorate will issue a warning through the suvnazorat.uz platform and provide instructions on correcting the identified violation. The legal entity will have 10 days to comply with the instructions. If the requirements are not fulfilled within that period, financial sanctions will be imposed.
The amount of financial sanctions will be determined using the base calculation amount (BCA) for every 1,000 cubic meters of water. The calculation will apply the percentages established under Article 164 of Uzbekistan's Water Code. The resolution also introduces higher penalties for repeated violations. If a legal entity commits another violation within one year after a financial sanction has been imposed, the amount of the sanction will be increased fivefold.
The resolution provides a mechanism allowing legal entities to reduce the amount payable if they settle sanctions voluntarily. If a legal entity pays 50% of the financial sanction within one month of receiving the relevant decision and calculation, it will be exempted from paying the remaining 50%.
The document also allows sanctions to be paid in installments over six months. Under this arrangement, the legal entity must pay at least one-sixth of the total sanction amount each month. If a legal entity does not make the required voluntary payment within one month, the inspectorate will apply to the court. The resolution also establishes procedures for appealing financial sanctions. If an appeal is filed against a sanction, its enforcement will be suspended until the appeal has been reviewed.
The resolution sets out requirements for returning payments collected under sanctions that are subsequently found to be unlawful or groundless. If a court determines that a financial sanction was imposed unlawfully or without sufficient grounds, the amount paid must be refunded within 15 days. If the refund is delayed, interest will accrue for each day of delay at a rate equal to one three-hundredth (1/300) of the Central Bank's base rate.
Earlier, Uzbekistan approved procedures allowing entrepreneurs to lease land from the water fund through electronic auctions. The measures apply to land created as a result of converting open collector-drainage networks into closed drainage systems.