In January, the prime ministers of Kyrgyzstan, Tajikistan, and Uzbekistan held a landmark meeting in the Ferghana Valley, aiming to foster regional cooperation and promote economic stability. The summit, held at the shared borders of the three countries, underscored their commitment to addressing long-standing issues such as border demarcation and resource management, with a focus on collaborative development.

The discussions come at a time of growing economic optimism in the region, as Uzbekistan’s Central Bank reported a significant 30% year-on-year increase in international remittances in 2024. Total remittances amounted to $14.8 billion, representing 12.9% of the country’s GDP. The United Kingdom, contributing $135 million, was among the key players, highlighting a rising interest in the region from British investors.

The Ferghana Valley, a vital agricultural hub positioned at the crossroads of important trade routes, offers vast potential for economic growth. Political agreements resulting from the summit aim to pave the way for increased investment, particularly in sectors such as hydropower, infrastructure, and construction. However, the case of Ulugbek Shadmanov, one of Uzbekistan’s leading entrepreneurs, casts a shadow over the country’s investment climate and underscores the importance of upholding the rule of law.

Shadmanov’s Arrest Raises Concerns for Investors

Shadmanov, the owner of United Cement Group (UCG), was arrested in Dubai in December 2024 and extradited to Uzbekistan, where he faces charges of illegal border crossing. These charges are widely viewed as politically motivated, raising alarms among the business community. His lawyer, Mark Agnifilo, has criticized the lack of legal transparency, pointing to violations of international norms and denial of legal counsel.

An independent investigation, led by human rights advocate Radha Stirling, has uncovered allegations of a staged assassination attempt aimed at discrediting Shadmanov, involving former Uzbek official Komil Alamjonov and several Russia-linked businessmen. Additionally, Shadmanov is accused of violating sanctions by allegedly exporting cement to Russia—an accusation that remains unsubstantiated, given the logistical challenges of such exports.

These developments have raised doubts about the reliability of Uzbekistan’s legal and political environment, which could discourage foreign investment in the region.

A Promising Future for the Ferghana Valley

Despite these challenges, the recent summit among the Central Asian leaders signals a positive outlook for the Ferghana Valley. Addressing key issues such as water resources and border disputes lays the foundation for long-term stability and growth. The region’s economic potential is significant, with remittance inflows continuing to rise, particularly from Russia, Kazakhstan, and the United States.

For the region to realize its full potential, however, it will need to ensure legal protections for entrepreneurs and establish transparent business practices. The Shadmanov case highlights the risks that political instability and a lack of judicial integrity pose to investors.

Nevertheless, the development of key infrastructure projects and the expansion of hydropower capacity offer hope for transforming the Ferghana Valley into a dynamic economic hub. With a collaborative approach from governments, businesses, and international partners, the region may overcome current challenges and thrive in the global economy.

Google has committed to stronger measures to combat fake online reviews in the UK, following an investigation by the Competition and Markets Authority (CMA). The tech giant has promised to clamp down on misleading review practices and impose penalties on businesses and individuals found boosting their ratings fraudulently.

This move comes after the CMA warned that deceptive reviews could influence up to £23 billion of consumer spending annually, undermining trust in online platforms. Under the agreement, Google will take more proactive steps to identify and remove fraudulent content and issue warning labels on the profiles of businesses engaging in dishonest practices.

Sarah Cardell, chief executive of the CMA, welcomed Google’s pledge, highlighting the impact of fake reviews on consumer confidence. “Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage,” she said. “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices.”

Cardell emphasized that this was a matter of fairness for both consumers and businesses. She also urged other platforms to examine their processes in light of the CMA’s new powers, which, starting in April, will allow it to independently determine if consumer law has been violated, with the potential for fines of up to 10 percent of global turnover for non-compliance.

As part of the agreement, Google has committed to reporting back to the CMA for the next three years to ensure the new safeguards are being implemented effectively. The company, which already blocks millions of fake reviews each year, responded by stating: “Our longstanding investments to combat fraudulent content help us block millions of fake reviews yearly – often before they ever get published.”

The CMA’s investigation into Google and Amazon began in 2021, with concerns that both companies were not doing enough to prevent the spread of fraudulent reviews. While the investigation into Google has now been resolved with this agreement, the inquiry into Amazon continues.

In recent months, the CMA has intensified its scrutiny of major tech companies, including launching separate investigations into Google’s search and advertising practices, as well as the operating systems of both Apple and Google. The CMA’s new interim chair, Doug Gurr, a former Amazon executive, recently prompted business minister Justin Madders to deny claims that the government is overly influenced by Big Tech.

Companies relying heavily on artificial intelligence (AI) to prepare their Research and Development (R&D) tax claims could risk having their claims rejected by HMRC if the process lacks proper human oversight, according to a warning from Blick Rothenberg, a prominent audit, tax, and business advisory firm.

Ele Theochari, a Partner and R&D specialist at Blick Rothenberg, highlighted that the UK government’s recently unveiled AI Opportunities Action Plan presents both “opportunities and risks” for R&D claimants. The growing trend of using AI-based tools to compile and submit R&D claims, as well as additional information forms, has raised concerns. Some providers have even falsely claimed to have special privileges with HMRC, Theochari notes.

Theochari expressed concerns over the quality of AI-generated R&D submissions, warning that many claims are “wordy but lack substance.” She emphasized that such claims are vulnerable to scrutiny by HMRC. In fact, some large R&D companies, particularly those focused on high-volume submissions, have already gone out of business in the past four years due to subpar submissions and the inability to defend follow-up investigations.

Although AI can be an asset in streamlining certain aspects of the R&D claims process, Theochari stressed the importance of having a knowledgeable adviser involved in the process. Even when AI is fed with accurate data, it can still produce errors and “AI hallucinations,” which compromise the integrity of a claim. HMRC itself has encountered similar issues when attempting to use AI for fact-checking during compliance queries.

Despite these concerns, Theochari pointed out the potential of AI to enhance the R&D claims process. AI can be effectively used to summarize complex technical information, identify baseline technologies, conduct research, and manage large calculations. However, she stressed that expert input is essential to ensure any AI-generated content is factual, relevant, and ready for HMRC’s scrutiny.

With the increasing reliance on AI in the tax and business advisory sectors, Theochari’s warning serves as a crucial reminder to companies that while AI can offer efficiency, human oversight remains essential for ensuring the accuracy and credibility of R&D tax claims.