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Meeting with representatives of "Sunda International Group"from China

On March 12 of this year, a meeting was held with representatives of the Chinese company "Sunda International Group", Eddy Wang, Hubert Zhou and Salawat Hairatal, who visited the Investment Promotion agency to study the possibilities of implementing investment projects in Uzbekistan.

"Sunda International Group" was established in 2000. The company is engaged in the production of ceramics, sanitary-hygienic cleaning products and cosmetics also has a marketing network covering more than 20 countries and regions.

During the meeting, the investment climate and privileges of Uzbekistan have been presented,and IPA provision of services to foreign investors based on the "Single Window" principle and the list of free economic zones for investment project placement in Uzbekistan were presented.

"Angren" SEZ and "Syrdaryo" SEZ were selected by the company for the visit and were organized by the Investment promotion agency

On February 26 of this year Investment Promotion Agency held a meeting with representatives of the Singapore company “SME Center @ SMCCI” to discuss issues of exploring the possibilities of implementing projects in Uzbekistan. From the side of the company “SME Center @ SMCCI” participated the chairman of the group Azhar Bin Othman and the executive director Ahmad Bin Mohamed, they informed about the activities of the company.
For over 18 years, the company has worked closely with small and medium-sized enterprises to help their businesses remain relevant and competitive in a challenging global economic environment.
Following the meeting, the parties agreed on further cooperation within the framework of the investment activities of Singaporean companies in Uzbekistan. In turn the Agency will facilitate the implementation of investment projects of Singapore companies in Uzbekistan.

On May 2-3, 2024, the third Tashkent International Investment Forum will take place in Tashkent.

TIIF is one of the significant events not only for the Uzbekistan but also for the region. Its program traditionally includes a plenary session at the head of state level, over 50 expert discussion meetings, including panel sessions, round tables, and B2B negotiations.

Online registration is already available on the website www.iift.uz and will last until April 25, 2024.

The Uzbek-Italian business forum took place on June 6 in Rome, Italy, prior to the official visit of Uzbekistan's President Sh.M. Mirziyoyev. The forum brought together government officials and over 200 representatives from business circles in both countries.

During the forum's opening, Edmondo Chirielli, the Deputy Minister of Foreign Affairs and International Cooperation of Italy, highlighted the increasing interest of the Italian business community in Uzbekistan. President Mirziyoyev's visit to Italy was seen as a historic event, reflecting the strong modern relations between the two nations. Chirielli emphasized Uzbekistan's potential as a bridge between Europe and Asia. Italian entrepreneurs expressed their willingness to collaborate and contribute to Uzbekistan's development by offering advanced technologies and quality products. They pledged to support the growth of bilateral cooperation and explore all partnership opportunities.

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Laziz Kudratov, the Minister of Investments, Industry, and Trade of Uzbekistan, emphasized the importance of hosting such significant events. He recognized Italy as a strategic partner for Uzbekistan, particularly in trade, economy, and investment. Kudratov also highlighted the substantial increase in Italian investments in Uzbekistan over the past four years and the growing number of Italian-backed enterprises in the country.

The participation of major Italian companies, including Danieli, Pietro Fiorentini, Terranova, and Fin opera, operating in sectors such as metallurgy, electrical engineering, jewelry manufacturing, and agriculture, showcased the expanding cooperation and diversity of Uzbek-Italian relations.

The forum provided insights into Uzbekistan's investment opportunities and the ongoing reforms aimed at creating a favorable business environment for both domestic and foreign investors. The most promising areas for long-term and mutually beneficial cooperation were identified as the textile industry, agriculture, production of building materials, metallurgy, chemical industry, automotive industry, electronics, and other sectors.

B2B and G2B meetings held during the forum facilitated discussions on specific investment initiatives and showcased real cases demonstrating the investment potential in key sectors of the Uzbek economy.

The forum concluded with the signing of a comprehensive package of investment agreements and trade contracts, encompassing various industries such as energy, agriculture, chemical industry, textile and engineering industries, ecology, transport, logistics, and banking. These agreements signify the active development of bilateral cooperation and the practical and qualitative advancements in Uzbek-Italian relations.

On April 27-28, the second Tashkent International Investment Forum was held in the Congress Hall Tashkent City in the capital, bringing together more than 2.5 thousand participants from the USA, EU, UK, CIS, Turkey, China, Southeast Asia, India, Egypt, Middle East countries, within which more than 30 discussion meetings of experts, including panel sessions, are planned, round tables and B2B negotiations.

During the conduct of the second Tashkent International Investment Forum, 164 investment agreements and contracts were signed. The total amount of the agreements amounted to $11 billion. For comparison, 105 documents worth $7.8 billion were signed at the investment forum in 2022.

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A panel session "Modern construction and building materials industry" was held on the sidelines of TMIF-2023, where experts discussed the prospects for the development of the industry.

Opening the session, Murat Mirzaev, Director of the Investment Promotion Agency under the Ministry of Investments, Industry and Trade of the Republic of Uzbekistan., spoke about what steps have been taken in Uzbekistan to start construction in the country using materials produced using new "green" technologies. According to the speaker, taking into account the use of green technologies in construction, it is necessary to attract more private households to the sphere.

Experts noted that significant reforms in this area have been carried out in Uzbekistan in recent years, including the liberalization of the foreign exchange market, systematic work continues on the privatization of state-owned banks, conditions are being created for the development of digital platforms, the quality of customer service has increased significantly.

 

Source: Sport.uz

The Investment Promotion Agency under the Ministry of Investments, Industry and Trade hosted a meeting with the delegation of the International Finance Corporation (IFC) to discuss further cooperation in the investor aftercare program implementation in Uzbekistan.

Mr. Murat Mirzaev, the Agency’s director confirmed the interest to continue the partnership in the implementation of the investor aftercare program. Mr. Emil Abdykalykov, IFC Project Manager noted that the Agency has been cooperating successfully with IFC since 2022. The parties also discussed the next steps of mutual work in the implementation of the program.

IFC also conducted a three-day training for the Agency’s staff on the investor aftercare program with the participation of Mr. Robert Hejzak, an international consultant on investment promotion. The training was focused on FDI account tiering and the types of services the agency could be providing to individual tiers. The training also included preparation for meetings with foreign investors on data collection. During the training, the IFC team presented an investor tracking system (ITS) developed in MS Access software.

Face-to-face meetings with FDI companies were held in the “Angren” special economic zone during the practical part of the training. The meetings helped to investigate problems FDI companies faced in their work that hamper their expansion.

Proposals for the improvement of the ITS system and the next steps in the implementation of the program were developed based on the training results.

On March 1 this year, the International Hotel Tashkent hosted the Uzbek-Spanish business forum, organized by the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan and the Ministry of Industry, Trade and Tourism of Spain.

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The Forum was attended by Deputy Minister of Investment, Industry and Trade of Uzbekistan Oybek Khamraev, Deputy Minister of Industry, Trade and Tourism of Spain Xiana Mendez, heads of ministries, departments and over 100 leading companies of both countries.

In their speeches, the speakers noted the effectiveness of the reforms carried out in Uzbekistan. Thanks to the measures taken, the investment climate is improving, and the volume of foreign trade is increasing.

Thanks to the GSP+ beneficiary status, in 2022, the export of Uzbek products to the EU market increased by almost 50% and to the Spanish markets by nearly 2.5 times. At the same time, along with the significant potential for the development of bilateral trade, the need to provide additional support for the two countries' business circles to expand the list and increase the volume of goods supplied was noted.

During the event, the Uzbek side took initiatives to enhance the use of the competitive advantages of the two countries to expand bilateral investment cooperation in priority sectors of the economy. The most promising areas are the automotive industry and production of components, pharmaceutical, textile, and food industries, agriculture, development of public services and infrastructure. Moreover, both states are members of large regional associations with free trade regimes, which creates additional prerequisites for expanding trade ties between entrepreneurs of the two countries.

The commitment to use the available opportunities to increase the volume of bilateral trade by increasing the volume of mutual supplies of pharmaceuticals, textiles, non-ferrous metals, agricultural products, electrical equipment, the opening of trading houses, holding joint business forums and "Made in Uzbekistan" and "Made in Spain" exhibitions were emphasized.

As a result of the forum, agreements were signed in the areas of water resources management and the construction of hydrotreating facilities in different regions of Uzbekistan, and the introduction of new approaches and technologies for developing sericulture and karakul breeding.

Within the framework of the business forum program, B2B negotiations were also held, during which entrepreneurs and investors had the opportunity to find points of intersection of interests and discuss new promising projects in the food sector, green energy and production of construction materials.

In the afternoon, the first meeting of the Intergovernmental Commission between the Republic of Uzbekistan and the Kingdom of Spain on trade and economic cooperation was held, which was attended by the heads of relevant ministries and departments of the two countries. Among the key agreements is developing a roadmap for implementing further joint measures within the framework of expanding bilateral trade, removing trade barriers, organizing joint exhibitions and fairs, and opening joint ventures to produce high-value-added goods.

 

 

Specialists of the Institute for Forecasting and Macroeconomic Research (IPMI) analyzed changes in the geography and nomenclature of Uzbekistan's exports for 2017-2022.

According to the results of the analysis, it was established that in recent years, an increase in the number of countries to which Uzbekistan supplies products has been achieved, as well as an expansion of the product range of exports. 

According to their data, in 2017-2022, the geography of exports expanded by 16 countries, and now Uzbekistan's products are exported to 117 countries worldwide. In particular, domestic products began to be supplied to Peru (3,965.9 thousand US dollars), Albania (3,196.3 thousand US dollars), North Macedonia (1,454.7 thousand US dollars), Senegal (311.7 thousand dollars) and Mauritius (303.1 thousand dollars). In 2017, there were 179 items in the export commodity nomenclature, and in 2022 their number exceeded 200. 

The export of cotton fibre has completely stopped, and the domestically processed fibre is now supplied to foreign markets as higher value-added products. So, in 2021, cotton yarn was exported for a total of 1,613.5 million US dollars, finished knitwear and garments - for 644.9 million US dollars, printed fabrics - for 242.8 million US dollars, gauze fabrics - by 131.6 million US dollars, silk and silk products - by 78.1 million US dollars and carpets - by 42.1 million US dollars. 

In addition, Uzbekistan is increasing the export of household appliances. In recent years, the following have been exported to foreign countries: 

  • vacuum cleaners - to Kazakhstan, Russia, Ukraine, Kyrgyzstan, Tajikistan, and Azerbaijan; 
  • washing machines - to Tajikistan, Kazakhstan, Russia, Kyrgyzstan, Azerbaijan, Moldova, Turkmenistan, and Turkey; 
  • gas stoves - to Kazakhstan, Russia, Tajikistan, Turkmenistan, and Armenia; 
  • TVs - to Russia, Azerbaijan, Kazakhstan, Tajikistan, Turkmenistan, Armenia, and Kyrgyzstan.

 

Source: kun.uz

In recent years, efforts have been made to increase the country's investment attractiveness and the inflow of foreign direct investment into the economy.

In particular, to legally protect the rights and interests of investors, a new "Tax Code", the Law "On Investments and Investment Activities", and the Law "On Mediation" were adopted.

To create more favourable conditions for investors, the International Tashkent Arbitration Center was created, and new mechanisms were introduced, such as "investment credit", "investment subsidy", and "investment visa".

If by the beginning of 2017, there were only 3 free economic zones (FEZ) operating in the country, by 2022, their number reached 22. Of these, by specialization: 12 FEZs are industrial, 6 are pharmaceutical, 2 are tourism, and 2 are agricultural.

Changes in legislation and created opportunities have a positive impact on the investment climate in the country. For example, in 2019, Uzbekistan was included for the first time in the OECD’s Index of Regulatory Restrictions on Foreign Direct Investment, ranking 43rd in the world by 2020 and 7th in the Asian region.

In 2017-2022, Uzbekistan improved its position in the world ranking of the Index of Economic Freedom by 31 positions, rising from 148th to 117th place.

The volume of foreign direct investment in the republic by the end of 2022 increased by 1.5 times compared to 2017 and reached 3.3 billion US dollars.

 

Source:t.me 

At the end of 2022, in the structure of the value added of the manufacturing industry, the largest share fell on:

  •  metallurgical and metalworking industry (except for machinery and equipment), which reached 40.1%,
  • production of textiles, clothing, leather goods and related products - 14.1%,
  • production of food, beverages and tobacco products - 13.9%,
  • production of chemical products – 7.4%,
  • production of rubber, plastic products and other non-metallic mineral products - 7.2%,
  • production of vehicles, trailers, semi-trailers and other transport equipment - 5.6%,
  • production of coke and refined products – 2.6%,
  • production of wood and paper products; printing activities and replication of recording media - 2.0%,
  • production of other products of the manufacturing industry - 7.1%.

 

Source: stat.uz

In January 2023, the CERR survey showed that entrepreneurs are optimistic about the business climate in the country. At the same time, agriculture stands out with the highest optimism among other industries.

The leading international economic statistical online portal Trading Economics, which evaluates over 20 million economic indicators in 196 countries of the world, has published for the first time the Business Climate Index of Uzbekistan calculated by the Center for Economic Research and Reforms (CERR).

Starting from 2023, information on indicators of the business climate in Uzbekistan will be published periodically on the information portal Trading Economics.

According to the results of the January survey, the consolidated business climate indicator has shown a slight decrease since the beginning of the year. In particular, in January, the decline was significantly influenced by the dynamics of indicators in the agriculture and services sector.

Analysts estimate the state of the business climate in the country in January as positive. So, despite the decrease in the consolidated indicator by 3 points, it amounted to 54 points.

For reference: CERR conducts a monthly survey among 1 thousand entrepreneurs from various sectors of the economy. The consolidated business climate index is formed based on indicators of the current state and expectations. Those, in turn, demonstrate anxiety about obstacles in doing business. The sampling methodology of the study is an industry-stratified random sample, according to the "Enterprise Survey" methodology of the World Bank. In turn, the business climate index of Uzbekistan was developed with the assistance of the Institute of Economic Research "Ifo Institut" and the consulting company "Berlin Economics" based on the methodology of the German Business Climate Index (Geschäftsklimaindex).

41% of respondents rated the current state of their business as "good", and the share of those who noted it as "bad" was 14%.

20% of enterprises increased the number of employees, and 41% of entrepreneurs noted an increase in demand for goods/services.

In January of this year, the indicator of the current state of the business climate decreased by 13 points. It amounted to 34 points, which is explained by the deterioration in agriculture, industry and services. Nevertheless, there was a jump in the construction sector.

The indicator of expectations of business development prospects in the next 3 months remains at a reasonably high level – 76 points- supported by optimism in all industries.

Analysis of changes in indicators

In January this year, 50% of entrepreneurs noted that they faced various barriers. Thus, as the most pressing problems, respondents note difficulties in accessing finance and land plots, interruptions in the electricity and gas supply system, as well as in tax administration and high tax rates.

Problems with gas and electricity supply have become more frequent in the industrial sector. At the same time, the share of entrepreneurs reporting problems with access to land has decreased.

At the same time, agriculture stands out with the highest optimism among other industries – 84% of respondents expect improvement in the next 3 months.

In the construction sector, entrepreneurs have become less likely to report problems with high tax rates. At the same time, the sector's need for financing remains the highest among other industries.

In the service sector, problems with tax administration, electricity and gas supply have become more frequent due to the deterioration of weather conditions.

 

Source: review.uz 

The selection of an investor for the construction of a photovoltaic plant with a capacity of 40-60 MW is carried out in strict accordance with the Terms of Reference for the selection of an investor for the construction of a photovoltaic plant (PV) with a capacity of 40-60 MW for the needs of Almalyk MMC JSC.

This project aims to provide environmentally friendly electrical energy for the production of copper and zinc at the enterprises of JSC "Almalyk MMC", meaning the reduction of emissions into the atmosphere and obtaining a "green certificate".

Under the project, the winning bidder will design, finance, operate and maintain a solar photovoltaic plant with a 60 MW or more AC capacity in the city of Almalyk, Tashkent region, for at least 25 years.

The winner is selected according to the tariff proposed by the participants for the electrical energy generated by the newly built solar photovoltaic station.

At this stage, the tariff must be clarified by the participant and presented as final.

The participant is responsible for the authenticity and reliability of the information and documents provided.

E-mail address for submitting technical and commercial proposals - info@agmk.uz

If you have any questions, you can contact Almalyk MMC JSC:

o.jansaidov@agmk.uz
j.tohtaev@agmk.uz

Applicants should be aware that the deadline for submitting proposals is 21:00 Tashkent time on March 12, 2023.

According to the statistics agency, as of February 1, 2023, the number of enterprises and organizations with the participation of foreign capital operating in the republic amounted to 15,481.

Russia leads in the number of foreign enterprises in Uzbekistan

The number of operating enterprises with the participation of foreign capital increased by 2,088 compared to the corresponding period last year.

The number of enterprises operating with the participation of foreign capital by country:

  • Russia - 3151;
  • Turkey - 2152;
  • China - 2104;
  • Kazakhstan - 1,227;
  • Korea - 903;
  • USA - 350;
  • Kyrgyzstan - 307;
  • Tajikistan - 293;
  • Azerbaijan - 259;
  • Germany - 215;
  • Turkmenistan - 174;
  • others - 4 346.

 

Source: kun.uz

On February 15 this year, a meeting was held at the TECHNOPARK in Tashkent between representatives of state bodies responsible for investments and the business mission of the Representative Office of the German Economy in Central Asia, dedicated to discussing current joint projects and identifying promising initiatives and opportunities for cooperation.

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The event was attended by Deputy Minister of Investments, Industry and Trade of the Republic of Uzbekistan B. Abidov, Director of the Investment Promotion Agency U. Kasimkhodjaev, and representatives of German business at the head of the Representative Office of the German Economy in Central Asia.

During the meeting, U. Kasimkhodjaev informed the German side in detail about the work done by the Uzbek government to improve the investment climate, in particular, accomplishments in achieving the goals set by the head of state in the 2022-2026 reform program. In addition, answers were given to business representatives of Germany who were interested in the information provided.

Additionally, discussions were held with each of the representatives on promising areas of cooperation in the framework of investments and the implementation of potential projects.

At the end of the event, representatives of the Uzbek side expressed their desire to expand cooperation and readiness to provide timely assistance in implementing investment projects. In turn, representatives of the business mission expressed their interest in investing in Uzbekistan and establishing relationships with local partners.

GDP per capita rose by 9% in 2022 but remains the lowest among comparable countries.

S&P Global Ratings predicts Uzbekistan's GDP growth by 5% in 2023 and 5.5% in 2024. This was reported in the rating agency report dedicated to analysing the banking sector of Uzbekistan.

In 2022, the influx of remittances from Russia, along with increased trade flows with it, helped the Uzbek economy cope with the consequences of the military conflict in Ukraine.

GDP growth for this year is projected at about 5%, but in the next two years, it will be 5.5%. Despite the difficult geopolitical situation in the region and the world, the economy will continue to recover.

However, the economic outlook remains volatile amid the Russian-Ukrainian conflict, economic slowdown and inflationary pressures. The growth in remittances, as well as the inflow of capital and migrants, will be temporary, starting to change in 2023.

S&P positively assesses Uzbekistan's economic reform program to improve the efficiency of state-owned enterprises and carry out privatization. This will positively impact an economy dominated by the public sector. Large-scale privatization will take time due to regional geopolitical tensions and the global economy's unstable outlook.

Last year, GDP per capita increased by 9.3% and amounted to $2146.7 - this is the lowest level of well-being in comparable countries. However, the population's real incomes may be higher than the official ones due to the significant volume of the shadow economy.

The net debt of the general government will be 23% of GDP by 2025 - a low level in the international context. The current account deficit will widen to 6% over the next three years but will be financed by FDI inflows and debt buildup.

 

Source: www.spot.uz

Analysis of business activity is calculated monthly by CERR based on operational data. According to CERR estimates, tax receipts increased moderately, despite the reduction in the VAT rate in the country from 15% to 12% from January 1, 2023, and the weather crisis (interruptions in the supply of electricity and natural gas to production facilities due to abnormal weather conditions in mid-January).

To assess the economical situation in the country, the Center for Economic Research and Reforms conducts a monthly assessment of the state of business activity at the regional and district levels. The analysis is carried out based on operational data of the State Customs Committee, the State Tax Committee, the Central Bank and the UzEx.

The monitoring results showed that the volume of tax revenues of the republic in January this year increased by 5.3% compared to the same period last year.

At the same time, a significant increase in tax revenues were recorded in the Jizzakh (by 47.9), Navoi (by 29.4%), Samarkand (by 27.1), Andijan (by 19.0%) and Tashkent (by 18.6%) regions, in the Republic of Karakalpakstan (by 19.7%) and in Tashkent (by 28.7%).

According to the analysis, tax receipts increased moderately, despite the reduction in the VAT rate in the country from 15% to 12% from January 1, 2023 and the weather crisis (interruptions in the supply of electricity and natural gas to production facilities due to abnormal weather conditions in mid-January).

In addition, in terms of sources of tax receipts, VAT increased by 20%, and income tax receipts by 15%, property tax by 37%, land tax by 38%, which allowed to maintain a moderate increase in the level until the end of the month.

Receipts on customs payments for the analyzed period increased by 28.9% compared to the same period in 2022. The largest increase in customs receipts was observed in Surkhandarya (by 73.9%), Samarkand (by 43.1%), Tashkent (by 34.2%), Namangan (by 34.0%), and Ferghana (by 10.9%) regions, and in the Republic of Karakalpakstan (by 73.8%) and Tashkent (by 59.5%).

The main factors that influenced the increase in revenue from customs duties were the increase in imports in January 2023 by 42.3% compared to the same period of the previous year.

According to the State Customs Committee, the volume of exports of goods from the beginning of this year to January 31 decreased by 3.6% compared to the same period last year. Exports decreased in Surkhandarya (by 40.1%), Bukhara (by 27.8%), Jizzakh (by 19.3%), Fergana (by 19.0%), Tashkent (by 17.8%), Namangan (by 9.8%) and Samarkand (by 9.3%) regions, and in the Republic of Karakalpakstan (by 41.2%).

The decline in exports in Surkhandarya region is due to a reduction in exports of yarn and textile products; in Bukhara region — the direction of cotton fibre to the domestic market; in Jizzakh, Ferghana and Namangan regions — a reduction in yarn exports; in Tashkent region — a reduction in exports of metals and products made from them, in Samarkand region — a reduction in exports of fruit and vegetable products, and the Republic of Karakalpakstan — a reduction in the export of plastics and yarn.

Export growth was observed in Navoi (by 70.5%), Syrdarya (by 55.5%), Khorezm (by 23.6%), Andijan (by 9.2%) and Kashkadarya (by 7.6%) regions, and in Tashkent (by 5.7%).

The growing growth rates of exports of food products, industrial goods, chemicals and agri-food products explain the increase in Uzbekistan's exports.

The volume of loans issued by commercial banks in the period from January 1 to January 31 this year increased by 21.8% compared to the same period last year.

A significant increase in the issuance of loans was noted in Tashkent (by 102.3%), Syrdarya (by 73.5%), Khorezm (by 71.4%), Ferghana (by 44.6%) regions, in the Republic of Karakalpakstan (by 17.8%) and Tashkent (by 32.7%).

The volume of transactions on the UzEx for the analyzed period increased by 32.1%. A significant increase in exchange activity is observed in Kashkadarya (by 93.2%), Syrdarya (by 86.2%), Samarkand (by 67.0%), Khorezm (by 62.8%) regions, and in the Republic of Karakalpakstan (by 68.2%) and Tashkent (by 28.5%).

The growth in the volume of transactions in these regions is ensured by increasing the sale of such goods as liquefied gas, mineral fertilizers, technical seeds, automobile gasoline, diesel fuel, construction and household materials, wheat flour, wheat, sugar, cotton fiber, rolled ferrous and non-ferrous metals, polyethylene, etc.

During the analyzed period, 6,046 new economic entities were created, the largest number of which were registered in Fergana (553), Tashkent (513), Samarkand (469), Khorezm (453), Bukhara (402) regions and in Tashkent (1,362).

Source: review.uz

MANILA, PHILIPPINES (February 9, 2023) — The Asian Development Bank (ADB) has approved a $150 million loan and a $400,000 grant to improve economic governance in Uzbekistan.

The first sub-program of Phase 2 of ADB's Economic Governance Improvement Program continues and deepens ADB's previous support for public sector governance reforms. The Program supports the Government in its efforts to reform the legal, regulatory and institutional framework to improve the efficiency and transparency of financial management, improve the governance and performance of state-owned enterprises (SOEs), including antitrust systems to encourage competition and increase public sector accountability through sound systems anti-corruption and audit.

“Uzbekistan has demonstrated a strong commitment to reforms that will help transform it into a more open and competitive market economy,” said Evgeny Zhukov, ADB Director General for Central and West Asia. "ADB will continue to help the country achieve this goal while maintaining macroeconomic stability and inclusive and sustainable growth."

Reforms under the first subprogramme aim to strengthen fiscal risk and public debt management, improve public resource allocation through gender-responsive budgeting and green budgeting, and improve domestic resource mobilization through information technology-based tax administration. They also expand social protection coverage and improve the effectiveness of anti-corruption and audit systems.

The program also supports the development and implementation of Uzbekistan's transition strategy to a green economy. A clear national plan will help the Government meet its obligations under the Paris Agreement, modernize infrastructure and train its workforce for the skills required for green jobs.

“Improving fiscal transparency, corporate governance, and professional governance of SOEs, along with strengthening antitrust systems, are essential to creating fiscal space for public sector investment, improving the quality of public service delivery, and creating an enabling environment for private sector development in Uzbekistan,” said ADB Chief Economist for Public Administration Chidem Akin.

A $400,000 technical assistance grant will support the implementation of the reforms.

Uzbekistan joined ADB in 1995. Since then, ADB has provided the country $10.8 billion in loans, grants, and technical assistance.

ADB is committed to achieving a prosperous, inclusive, stable, and resilient Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Founded in 1966, it is owned by 68 members - 49 from the region.

 


Source: www.adb.org

Today, the University of World Economy and Diplomacy (UWED) hosts a presentation dedicated to the official opening of the Institute for Advanced International Studies.

The event is attended by the heads of the Senate and the Legislative Chamber of the Oliy Majlis, ministries of foreign affairs, investments, industry and trade, diplomatic missions and international organizations accredited in Uzbekistan, leading public and private companies, media, faculty and students of UWED.

 The event aims to familiarize representatives of ministries and departments, research centres, the diplomatic corps, international organizations and large companies with the activities of the Institute and its centres, as well as discuss cooperation with the Institute's specialists in relevant areas and essential areas.

 

Source: dunyo.info

As part of the second day of the stay of the working group of Uzbekistan in Hanoi, Minister of Investment, Industry and Trade Laziz Kudratov held meetings and negotiations with the President of the Vietnam Chamber of Commerce and Industry, heads of leading companies and associations of this country. The key topics on the agenda are the activation of business contacts and the expansion of investment cooperation.

Thus, further measures to deepen cooperation between the two countries' business circles were discussed with the President of the Vietnam Chamber of Commerce and Industry, Pham Tan Cong.

The meeting, which was held in the format of a "round table", was also attended by the heads of 10 companies operating in electrical, chemical, textile, food and agricultural fields. The session of "G2B" and "B2B" negotiations allowed the business community to exchange views on topical issues of cooperation and reach an agreement on the joint development and implementation of a number of significant investment and trade projects. It was about producing finished textile and leather goods and organizing the supply of Uzbek goods in demand in the Vietnamese market.

The issues of implementing joint projects in the agricultural sector of Uzbekistan, where the company has already implemented two projects, were discussed with the director of MTT, Nguyen Van Than
. Based on the successful experience of doing business in our country, the company's management shared its intention to expand its activities through new fish farming and feed production projects.

In a dialogue with the Chairman of the Vietnam National Textile and Garment Group V.Anyom, issues of implementing joint investment projects in the textile industry were agreed upon.

For reference: Vietnam National Textile and Garment Group is currently one of the largest manufacturers of textile products in Vietnam. The company has 12 production plants and exports products to 50 countries.

The possibilities of implementing joint projects in the oil and gas and petrochemical industries were discussed with the Chairman of the PetroVietnam State Corporation, Le Man Hung. Emphasizing the significant potential for developing cooperation in this area, the parties agreed to jointly develop investment initiatives for producing chemical products and geological exploration.

Deputy Chairman of the Vietnamese National Chemical Group Vinachem Ngo Dai Quang was provided with detailed information on the investment potential of Uzbekistan and presented project proposals in the chemical industry. An agreement was reached to create a joint working group to work out a number of investment projects.

1954 COMPANY Chief Executive Officer A. Phung expressed interest in implementing projects to create large rice-growing clusters based on advanced Vietnamese experience. We are talking about a new technology for sowing germinated sprouts and spraying fertilizers using unmanned aerial vehicles, which can significantly increase crop yields.

Following the results of the meetings, the participants expressed mutual readiness to intensify cooperation in all discussed areas of interaction. They outlined further steps for implementing the voiced projects and initiatives.

 

Source: miit.uz

On February 8 this year, UzIPA, with the support of the Ministry of Investments, Industry and Trade, organized the Uzbekistan-Slovenia Business Forum in Tashkent. Participants varied from heads of key ministries and departments and more than 100 representatives of the business community of the two countries.

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During the opening ceremony, Deputy Prime Minister of the Republic of Uzbekistan Jamshid Khodjaev and Deputy Prime Minister - Minister of Foreign Affairs of the Republic of Slovenia Taney Fayon made speeches.

During their stay in our country, the Slovenian delegation took part in the work of the Uzbek-Slovenian Business Forum, which became an effective platform for the dialogue of entrepreneurs.

The speakers revealed the potential of many industries in Uzbekistan and Slovenia. Furthermore, representatives of both sides discussed proposals to deepen relations in the economy's electrical, pharmaceutical and other sectors. The forum also hosted meetings between representatives of the business community of the two countries, during which the parties discussed the possibilities of implementing joint investment projects and concluding mutually beneficial trade agreements.

Within the forum framework, Deputy Prime ministers from both countries signed an agreement on developing cooperation in trade, economic and investment spheres between the Republic of Uzbekistan and the Republic of Slovenia.

On February 7 this year, the Director of the Investment Promotion Agency under the Ministry of Investments, Industry and Trade of the Republic of Uzbekistan, Ulugbek Kasimkhodjaev, held a meeting with the Director of the Annual Investment Meeting (AIM) Walid Fargal via videoconference.

During the dialogue, the parties discussed investment potential, cooperation in international forums to develop trade and economic areas, and support for the international delegation of AIM Global visiting Uzbekistan.

In the future, the parties agreed to establish contacts between organizations, companies and entrepreneurs in partner countries worldwide, including the Republic of Uzbekistan, to promote and implement investment projects.

As a result of the video meeting, the parties came to an agreement on cooperation to attract investors, exchange experience and joint activities of the Parties as part of UzIPA's participation in events held under the auspices of AIM.

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For reference: The Annual Investment Meeting (AIM) is an initiative of the AIM Foundation, an independent international organization fully committed to empowering the global economy by improving the effectiveness of promotion strategies and creating opportunities for economic productivity and expansion. The Fund also operates and manages the AIM Global Investment Network and its 15 subsidiaries, including overseeing the global and regional chapters of the Annual Investment Meeting.

The Investment Promotion Agency under the Ministry of Investments, Industry and Trade hosted a meeting with the "International Financial Corporation" to provide consulting services to strengthen the development of the private sector in the Republic of Uzbekistan.

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The event's central theme was developing and implementing the project to implement an investor service program in the Republic of Uzbekistan.

The event was attended by the director of the Investment Promotion Agency, Ulugbek Kasimkhodjaev, and from the side of the International Financial Corporation - operational specialist, IFC project manager for the transformation of the fertilizer sector in Uzbekistan Emil Abdykalykov.

During the dialogue, the parties identified priority areas that need to be improved. This cooperation will provide an opportunity to create favourable conditions for investors and effectively provide timely support from the Agency for foreign investors operating in the Republic of Uzbekistan.

For reference: The International Finance Corporation was established in 1956 to ensure a steady flow of private investment in developing countries. The Corporation is an international financial institution that is part of the structure of the World Bank. The organization is headquartered in Washington, DC.

On February 3 this year, the Investment Promotion Agency under the Ministry of Investment, Industry and Trade signed a Memorandum of Understanding between Kimberly-Clark on the prospective implementation of the expansion of the company's activities in the next five years.

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The Investment Promotion Agency was represented by Ulugbek Kasimkhodjaev - Director of the agency, and Kimberly-Clark was represented by Sibel Demir - the company's general manager.

The signed document defines the specific tasks of each party in implementing investment and social projects in the field of healthcare and hygiene. The success of this collaboration will have a positive impact on the economic growth of Uzbekistan. It will increase the awareness of young girls about women's health, motherhood and child care.

For reference: Kimberly-Clark was founded in 1872 in Neenah, Wisconsin,  by John Kimberly and Charles Clark. The corporation is one of the leaders in producing healthcare, personal, professional and industrial hygiene products. The company's headquarters is located in Irving, Texas.

Ambassador of Uzbekistan Javlon Vakhabov met with the mayors of Manhattan Beach and El Segundo (California, USA), Richard Montgomery and Drew Boyles.

The American side was informed about the socio-economic reforms in Uzbekistan, achievements in the field of urban planning, and efforts to develop interregional cooperation. Particular attention was paid to the interest in strengthening the partnership relations of the US territories with Uzbekistan, as well as increasing American investors' entrepreneurial activity in our country's market.

During the meeting, the Mayor of Manhattan Beach, Richard Montgomery, supported initiatives to expand interregional partnerships with Uzbekistan, noting that such a format of cooperation allows for more effective study and exchange of best practices in urban development. He expressed readiness to promote cooperation between Uzbek companies in the field of cinematography and similar companies in his city, mainly "Manhattan Beach Studios" (video production service).

The city of El Segundo, in turn, is home to dozens of Fortune 500 companies and is recognized as the world capital of the aerospace industry. There are also companies specializing in biological sciences, information technology and energy.

During the conversation, the American side expressed its readiness to promote cooperation with Uzbek companies in producing electric vehicles, space and other fields.

Following the meeting with the mayors of the cities of the US state of California, an agreement was reached on establishing relations in various fields of industry, organizing a series of online negotiations and mutual visits of representatives from the two countries.

 

Source: dunyo.info

On January 30 of this year, Minister of Investment, Industry and Trade Laziz Kudratov held a meeting with the Head of the Delegation of the European Union to the Republic of Uzbekistan Charlotte Adrian. On the agenda are issues of strengthening cooperation in trade, economic and investment spheres, cooperation within the framework of Uzbekistan's accession to the WTO and others of mutual interest.

During the talks, the dynamics of the growth of mutual trade was emphasized, the volume of which increased by 15.7% in 2022, reaching 4.4 billion dollars. The top five EU countries in terms of trade turnover with Uzbekistan included Germany, Lithuania, Italy, Poland and France. The growth trends are connected, among other things, with Uzbekistan obtaining the status of a beneficiary of the GSP+ Universal System of Preferences, thanks to which it was possible to increase and diversify our country's exports to the EU market by almost 50% over the previous year.

The European side expressed gratitude for the technical and consulting support provided in the process of our country's accession to the World Trade Organization, in particular, through the implementation of the project "Assistance to the process of Uzbekistan's accession to the WTO" funded by the European Union.

In a separate order, the possibilities of expanding the key areas of bilateral financial and technical cooperation were considered. In particular, the progress of the implementation of the new Multi-year indicative EU program for Uzbekistan for 2021-2024, under which 76 million euros were allocated, was reviewed. The compliance of the program with the Development Strategy of the New Uzbekistan, including the transformation to a "green" economy, effective public administration, support for agriculture and other areas, was emphasized.

As a result of the meeting, the commitment of the parties to further expand cooperation in priority areas and bring multifaceted bilateral relations to a qualitatively new level of development was confirmed.

 


Source: miit.uz

The changes that have occurred in the trade of Uzbekistan with the countries of the Eurasian Economic Union (EAEU) are presented in the infographics of the Center for Economic Research and Reforms (CERR).

The foreign trade turnover of the Republic of Uzbekistan with the member states of the Eurasian Economic Union in 2022 increased by 22.7% compared to the 2021 and amounted to $15.7 billion.

Of these, exports amounted to $5.6 billion, and imports – $10.1 billion.

The share of the EAEU countries in the total foreign trade turnover of Uzbekistan amounted to 31.4%, total exports – 28.9%, total imports – 33.1%.

The indicators of Uzbekistan's foreign trade in the EAEU countries in 2022 amounted to:

Foreign trade turnover with Russia increased by 22.9% and amounted to $9.3 billion (59% of Uzbekistan's foreign trade turnover with the EAEU countries), of which:

  • exports – $3.1 billion
  • imports – $6.2 billion

Foreign trade turnover with Kazakhstan increased by 17.9% and amounted to $4.6 billion (29%), of which:

  • exports – $1.4 billion
  • imports – $3.2 billion

Foreign trade turnover with Kyrgyzstan increased by 32.1% and amounted to $1.3 billion (8%), of which:

  • exports – $979 million
  • imports – $281 million

Foreign trade turnover with Belarus increased by 41.5% and amounted to $536 million (4%), of which:

  • exports – $127 million
  • imports – $410 million

In December 2020, Uzbekistan received observer status with the Eurasian Economic Union. With this association, the closest trade and economic ties have been established and further integration with the EAEU will make it possible to strengthen them even more.

The trade turnover of the countries of the Eurasian Union with the Republic of Uzbekistan accounted for about $12.8 billion in 2021. The share of the EAEU countries accounts for 30.4% of the total merchandise exports of Uzbekistan.

The trade turnover of the countries of the Eurasian Union with the Republic of Uzbekistan accounted for about $9.83 billion in 2020. The share of the EAEU countries accounts for 27.1% of the total merchandise exports of Uzbekistan.

The trade turnover of the countries of the Eurasian Union with the Republic of Uzbekistan accounted for about $11.2 billion in 2019. The share of the EAEU countries accounts for 26.5% of the total merchandise exports of Uzbekistan.

In 2019, Uzbekistan exported a total of $9.42 billion worth of goods, of which $2.83 billion worth of goods were supplied to the EAEU.

Traditionally, Uzbekistan exports textile, automotive, electrical industry products to the EAEU, as well as food, primarily fruit and vegetable products. From the EAEU, Uzbekistan receives metal products, petroleum products, wood, machinery and equipment, chemical industry products, food, in particular cereals, vegetable oils, etc.

With further integration with the EAEU, Uzbekistan will receive more favorable conditions for entering foreign markets, in particular when trading with Vietnam, Iran, Serbia and Singapore, which have concluded preferential trade agreements with the EAEU.

As previously reported, CERR was tasked with conducting a study and giving a preliminary assessment of the consequences for the economy of Uzbekistan's possible participation in the EAEU.

A study to assess the impact of Uzbekistan's accession to the EAEU was presented in 14 universities of the country. The results of the study were published on the website of the "Economic Review" Journal, where infographics and analytical articles on the results of this study are posted.

In particular, CERR experts spoke about how joining the EU will affect agriculture, the transport sector, the automotive industry, textile, footwear, pharmaceutical, electrical engineering industries, business conditions and more.

 

Source: review.uz

The Tax Committee presented the 20 largest taxpayers in the manufacturing sector of Uzbekistan for 2022. They paid taxes for 39 trillion soums and received benefits for 2.6 trillion soums (most of it came from two companies).

In 2022, enterprises in the manufacturing sector of Uzbekistan paid taxes for 39 trillion soums. It is reported by Spot with reference to the press service of the Tax Committee under the Ministry of Economy and Finance.

In total, there are 72,348 legal entities in the manufacturing industry. Of these, the 20 largest taxpayers provided slightly less than half of tax revenues - they account for 17.5 trillion soums (excluding NMMC and AGMK).

The taxes paid by these 20 enterprises make up 1/6 of their trade turnover - 101.3 trillion soums.

Uzbekneftegaz became the largest taxpayer in the production sector - 4.32 trillion soums. It is followed by UzBAT - 2.19 trillion soums and UzAuto Motors - 2.05 trillion soums.

The largest industrial companies received 2.6 trillion soums of tax benefits. Most of this amount fell on two companies - Uz-Kor Gas Chemical (1.1 trillion soums) and UzAuto Motors (702.9 billion soums).

The table below shows the total turnover of each of the top 20 manufacturing taxpayers, the taxes they paid, and the number of benefits.

No. Company Turnover Tax payments Privileges
1 Uzbekneftegaz 11 942 4 321 68.5
2 UzBAT 4039 2196.3 138.8
3 UzAuto Motors 33,068.3 2052.1 702.9
4 Bukhara Oil Refinery 8,094.4 1 244 24
5 Shurtan GCC 3331.3 1,069.3 3.8
6 Uz-Kor Gas Chemical 8 228 989.9 1,103.7
7 Uzmetkombinat 7983.3 968.7 74.5
8 Navoiazot 5,063.8 942.8 244.5
9 Tashkent Tobacco 584.5 425.9 1
10 Ferganaazot 1840 410.1 61.5
11 Combine Tashkentvino 989.5 379 27.5
12 Ferghana Oil Refinery 2146.3 375.5 3.5
13 Maxam Chirchiq 2226.4 321.8 78.2
14 Ammofos-Maxam 1,716.5 290.2 19.1
15 Urtachirchik HPP cascade 972.5 274.6 31.3
16 Shohrud 479.7 259.4 2.3
17 Talimarjan TPP 2114.6 249.5 0.4
18 Kyzylkumcement 1645.4 233.8 19.2
19 Uzbekugol 1232.3 229.3 33.9
20 Coca-Cola Ichimligi Uzbekistan 3 629 217.9 0.5

Of the tax revenues, VAT accounts for 5.3 trillion soums, income tax - 5.3 trillion soums, excise tax - 3.4 trillion soums, subsoil use tax - 1.9 trillion soums, personal income tax - 834.9 billion soums, property tax - 451.4 billion soums, land tax - 315.5 billion soums, tax for the use of water resources - 106.1 billion soums.

 

Source: gazeta.uz

Russia has strengthened as the leading trading partner of Uzbekistan, while China remained in second place but took over the leadership from the Russian Federation in terms of imports. At the same time, the Russian market has become more attractive for Uzbek exporters, while supplies to Turkey have fallen sharply.

In 2022, Russia strengthened as the leading trading partner of Uzbekistan, according to the data of the Statistics Agency under the President.

 

Dynamics of major partner countries in the foreign trade turnover of Uzbekistan (for January-December 2022, million US dollars). Source: Statistical agency.

Trade with Russia increased by 22.9% to $9.28 billion. The volume of exports to the Russian Federation increased by 46.8% (in 2021, the growth was 33.4%) to $3.07 billion, while imports increased by 13.7% to $ 6.2 billion.

China remained in second place with a trade turnover of $8.92 billion (+19.7%), exports - of $2.5 billion, and imports - of $6.4 billion. Next comes Kazakhstan - $4.6 billion, Turkey - $3.22 billion and the Republic of Korea - $2.3 billion (4.8%).

 

Top nine countries with the most significant trade turnover with Uzbekistan (2022, million dollars)

No.

Countries/share by years

2019

2020

2021

2022

1

Russia

15.7

15.5

17.9

18.6

2

China

18.1

17.7

17.7

17.8

3

Kazakhstan

8

8.3

9.3

9.2

four

Turkey

6

5.8

8.1

6.4

five

The Republic of Korea

6.5

5.9

4.5

4.7

6

Kyrgyzstan

2

2.5

2.3

2.5

7

Germany

2.3

2.3

1.8

2.3

8

Turkmenistan

1.3

1.5

2.1

1.9

nine

Afghanistan

1.5

2.1

1.5

1.5

While the growth of trade with Kazakhstan slowed down (and the share decreased by 9.3% to 9.2%), if the indicator for the same period in 2021 increased by 30.4%, this year it is only by 17.8%. %.

Foreign trade with Turkey began to fall: if last year the indicator increased by 61.9%, then this year the decrease was 5.5%, mainly due to the fall in Uzbek exports (the share decreased from 8.1% to 6.7%) . This may be due to the devaluation of the lira and problems with logistics.

Trade relations with the Republic of Korea after falling in 2021 (-11.7%) increased by 23.2% due to the growth of Korean exports.

Trade with Kyrgyzstan increased by 32.1% ($1.26 billion), with Turkmenistan  - 2.7% ($926.3 million), Tajikistan  - 11.3% ($674.4 million), Afghanistan  - 12.8% ( $759.9 million). With the latter country, performance has improved, but it is still lower than in 2020.

Uzbekistan is increasingly expanding trade relations with the CIS countries. Due to the decrease in trade turnover with other foreign countries, the share of the Commonwealth states increased to 38.4% (was 37.8%). Dependence on export markets in the CIS also increased from 32.6% to 40.7%, mainly due to Russia.

Share of six major partner countries in exports of goods and services

No.

Countries/share by years

2019

2020

2021

2022

1

Russia

13.9

9.7

12.4

15.9

2

China

14.1

12.8

15.2

13

3

Turkey

6.7

6.7

10.2

7.8

four

Kazakhstan

8

6

7.1

7.1

five

Kyrgyzstan

3.8

five

4.8

5.1

6

Afghanistan

3.4

5.1

3.9

3.9

The Russian market has become more attractive for Uzbek exporters due to the withdrawal of Western companies. Exports to China decreased slightly (0.4%), but to Turkey fell immediately by 10.9%.

At the same time, Uzbekistan became less dependent on imports from the CIS (decrease from 41.1% to 36.9%) due to an increase in supplies from China (an increase of $1.48 billion or 30%), the Republic of Korea (+24.5 %) and other countries.

Share of seven major partner countries in imports of goods and services

No.

Countries/share by years

2019

2020

2021

2022

1

China

21

21.3

19.3

20.9

2

Russia

17

19.7

21.4

20.2

3

Kazakhstan

8

10

10.8

10.6

four

The Republic of Korea

eleven

9.9

7.2

7.5

five

Turkey

5.4

5.1

6.7

5.6

6

Germany

3.8

3.6

2.7

3.5

At the end of 2022, the volume of machinery and transport equipment increased by 16.9% to $9.65 billion in the structure of imports. The share in total imports amounted to 31.4% (32.4%)

Most of the supply of these goods to the country falls on China  - $3.64 billion (37.8% share), the Republic of Korea  - $1.55 billion (16%) and Turkey  - $726.9 million (7.5%). At the same time, Russia fell from 3rd to 5th among equipment suppliers (the share decreased from 10.8% to 6.5%).

The import of manufactured goods increased by 22% and reached $5.76 billion. The share in total imports amounted to 18.8% (18.5%).

Manufactured goods are imported from Russia  - $2.44 billion (42.3%), China  - $1.26 billion (21.9%) and Kazakhstan  - $721.5 million (12.5%).

 

Source: gazeta.uz

On January 16 of this year, during the visit of the delegation of Uzbekistan to Singapore, Minister of Investment, Industry and Trade Laziz Kudratov held talks with the Minister of Trade and Industry of this country, Gan Kim Yong.

During the dialogue, the historical significance of the upcoming state visit of the President of the Republic of Uzbekistan to Singapore was noted.

"The events of these days will give a powerful impetus to the further deepening of the partnership between the two countries in all directions, opening a completely new chapter in the history of Uzbek-Singaporean relations," said Gang Kim Yong.

It was noted that Uzbekistan has undergone drastic changes in the economic sphere in recent years. This allowed Singaporean companies to freely enter the Uzbek market and conduct active business activities. In this regard, it was noted that their success is a call to action for other investors.

Earlier in the day, a business forum was held, which was attended by over 200 representatives of the leading business circles of both countries. Within the framework of the event, a list of 23 bilateral agreements covering a wide range of priority areas for the development of cooperation between the two countries was signed. Such rich results indicate a significant interest of the Singapore business community in the implementation of investment projects in almost all industries.

- We want as many companies as possible to learn about Uzbekistan and its huge potential. We are ready to provide constant assistance in attracting new investors to your country. We can also be a bridge for Uzbek goods to enter the markets of Southeast Asia and the entire Asia-Pacific region," said the Minister of Trade and Industry of Singapore.

Following the meeting, a signing ceremony was held. Thus, within the framework of the state visit, an intergovernmental Memorandum on the development of trade and economic cooperation between the Republic of Uzbekistan and the Republic of Singapore was signed. In addition, the issue of adopting a number of agreements securing the establishment of the Uzbek-Singapore Chamber of Commerce and attracting Singapore's experience in the development of business incubators to Uzbekistan was agreed.

 

Source: miit.uz

On January 19 of this year, a meeting of Minister Laziz was held at the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan Kudratova with the Vice President of Total Eren, Antoine Garret. The parties focus on the results of the implementation of joint projects and plans to expand investment cooperation in the field of renewable energy development.

In particular, as an example of the effectiveness of joint efforts, the successful commissioning of a 100 MW photovoltaic plant in Nurabad district of the Samarkand region in April 2022 was noted during the meeting. Total Eren's commitment to expanding its presence in Uzbekistan through the implementation of new large-scale investment projects was expressed. In this context, the parties discussed the possibility of building new photovoltaic plants in our country.

For reference: Total Eren specializes in the construction, design, financing and operation of power plants based on renewable energy sources. The company is represented in 22 countries around the world. Total Eren's portfolio of installed capacities and projected projects includes more than 4 GW of generating capacity.

 

Source: miit.uz

Moody's Investors Service today upgraded the long-term issuer rating and senior unsecured rating of the government of Uzbekistan from B1 to Ba3.

The agency also upgraded the rating of the program for issuing medium-term Eurobonds (medium-term notes, MTN) from (P)B1 to (P) Ba3. The agency changed the outlook from positive to stable.

The upgrade reflects Uzbekistan's demonstrated commitment in recent years to a comprehensive reform agenda that has endured through two significant successive crises and which Moody's expects to continue. 

Despite the coronavirus pandemic and the military conflict between Russia and Ukraine, real GDP growth and fiscal and external indicators remain strong, reflecting the resilience of the economy and improved policy effectiveness in recent years. As fiscal and monetary instruments evolve, Moody's expects further improvements in institutions and governance.

The stable outlook reflects the risks of rising debt levels above Moody's current expectations and geopolitical risks to growth. However, fiscal risks are mitigated by the government's relatively low and sustainable debt burden and significant assets in the Fund for Reconstruction and Development of Uzbekistan (FRDU).

Moody's has changed Uzbekistan's country ceilings in national and foreign currencies to Ba1 and Ba3 from Ba2 and B1, respectively. The two-notch gap between the local currency ceiling and the sovereign rating reflects the government's significant economic power and weak policy predictability, which is partly balanced by a moderate risk of external vulnerabilities that reflects a persistent, albeit declining, current account deficit and moderate external debt. that is, on preferential terms. The two-notch gap between the foreign currency ceiling and the national currency ceiling is associated with Uzbekistan’s relatively weak monetary and fiscal policy framework and the limited capital account, which may be subject to further restrictions on transfers and convertibility during periods of stress.

Moody's expects Uzbekistan's debt burden to stabilize below 45% of GDP over the next 3 years. While Moody's expects increases in social spending (more than 25% pa in 2021 and 2022) and delayed energy reforms to delay fiscal consolidation, the increase in the deficit is offset by recent improvements in revenue collection thanks to tax reforms, as evidenced by 33.6% and an increase in VAT and income tax receipts by 28.4%, respectively, between 2021 and 2022. 

Meanwhile, scheduled 2022 debt issuances were delayed due to unfavourable market conditions as the government instead used the assets and continued funding from an international financial institution. However, FRDU assets remain at $16.5 billion, with more than 50% liquid assets covering about 28% of total government debt in 2022.

 

Moody's upgrades Uzbekistan's rating to Ba3 with a stable outlook

Tashkent, Uzbekistan (UzDaily.com) -- Moody's Investors Service today upgraded the priority issuer rating and a senior unsecured index rating of Uzbekistan from B1 to Ba3.

The agency also upgraded the rating of the program for issuing medium-term Eurobonds (medium-term notes, MTN) from (P)B1 to (P)Ba3. The agency changed the outlook from positive to stable.

Upgrading the quality of Uzbekistan's sustained comprehensive reform program in recent years is being maintained through the next two successive crises and which Moody's expects to continue.

Despite the pandemic, growth and the military conflict between Russia and Ukraine, real GDP growth and fiscal and external indicators show strong economic performance and improved policy efficiency in recent years. Fiscal and monetary instruments continue, Moody's expects efficiency gains in the institution and management.

Stable outlook for the risk of rising debt levels above the current Moody's expectation and geopolitical upside risks. However, fiscal risks are offset by a relatively low and acceptable level of debt and significant assets in the Fund for Reconstruction and Development of Uzbekistan (FRDU).

Moody's has changed Uzbekistan's country ceilings in national and foreign currencies to Ba1 and Ba3 from Ba2 and B1, respectively. The two-notch gap between the local currency ceiling and the sovereign rating has a significant impact on outliers and weak policy predictability, which is partly balanced by a moderate risk of external vulnerabilities that consumes a sustained, albeit consuming, the sustained shortfall in the contraction of operations and a moderate amount of external debt. that is, on preferential terms. A two-level gap between the foreign and national currency ceiling is associated with the relative soundness of Uzbekistan's monetary and fiscal policy framework, as well as the limited capital account, which may be subject to limits on transfers and convertibility over periods of stress.

Moody expects Uzbekistan's debt burden to stabilize below 45% of GDP over the next 3 years. While Moody's expects an increase in special spending (more than 25% per annum in 2021 and 2022) and delayed energy reforms while delaying fiscal consolidation, the increase in the deficit is offset by the recent increase in revenues thanks to tax reforms, as evidenced by the accumulation of 33.6 % and an increase in VAT and income tax receipts by 28.4%, respectively, between 2021 and 2022.

those planned for 2022. However, the FDA's assets ended up at $16.5 billion, with more than 50% asset disappearances, which account for about 28% of total government debt in 2022.

Despite the ongoing military conflict between Russia and Ukraine, trade and remittance flows have so far exceeded expectations: exports in January-November 2022 increased by 12% compared to the same period in 2021, and remittances from Russia almost tripled over the same period. 

Inflation has increased and remains high, increasing social risks. However, the conflict between Ukraine and Russia also opens opportunities for Uzbek companies in logistics, trade and transport, and tourism as Western companies leave the Russian market and Russians to move to the region. 

Moody's expects GDP growth to ease to 5% in 2023 due to slower remittances and inflation impacting domestic private consumption but to recover next year as government-supported construction and public investment projects accelerate.

 

Source: www.uzdaily.uz

On January 11 of this year, the Minister of Investment, Industry and Trade of the Republic of Uzbekistan Laziz Kudratov held talks with the Minister of Economy and Commerce of the Kyrgyz Republic Daniyar Amangeldiev.

The parties discussed preparations for the bilateral events planned for 2023, including at the highest level, as well as the implementation of ongoing joint projects, including those developed through the Uzbek–Kyrgyz Development Fund.

It was noted that thanks to joint efforts, there is a stable growth in trade turnover between the two countries. Thus, over the past 5 years, the volume of mutual trade has increased 6 times – from $ 167.5 million in 2016 to $953.6 million in 2021. In 2022, the trade turnover exceeded $ 1 billion.

During the talks, the importance of further intensification of cooperation in a number of priority areas was emphasized. In particular, an agreement was reached to accelerate the implementation of projects for the construction of the Kambarata HPP-1 in Kyrgyzstan and the China–Kyrgyzstan–Uzbekistan railway, in accordance with the signed documents and for the implementation of these projects.

They also discussed projects planned for implementation in Kyrgyzstan on the organization of production of passenger cars and commercial vehicles, the launch of a spinning enterprise in the Jalal-Abad region, the introduction and production of electricity metering systems "ASKUE" and the production of calcium carbide.

Following the meeting, the parties outlined concrete steps to accelerate the practical implementation of the agreements reached.

 

Source: miit.uz

The member countries of the Organization of Turkic States are currently actively working on the establishment of a joint investment fund. A regular meeting of experts from Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan responsible for drafting the relevant draft Agreement was held in Istanbul on January 10-11 of this year.

On the Uzbek side, a representative of the Ministry of Investment, Industry and Trade took part in the event.

For reference: The Turkic Investment Fund will be the first and main joint financial institution established by the Turkic states, and will be aimed at mobilizing the economic potential of the member countries of the Organization of Turkic States to strengthen trade and economic cooperation between them and the implementation of joint projects.

The priorities of the Fund are designated: promotion of entrepreneurship, job creation, research and innovation, socio-economic development of the member states.

As a result of the meeting, an agreement was reached on the early completion of the domestic procedures for approving the draft document in each of the participating countries, and the intentions for its early signing within the framework of the planned joint activities were confirmed.

The establishment of the investment fund is planned in 2023.

 

Source: miit.uz

On January 16 of this year, on the eve of the state visit of the President of the Republic of Uzbekistan, an Uzbek-Singapore business forum was held in Singapore, aimed at comprehensively strengthening business ties between entrepreneurs of the two countries.

The event was attended by Minister of Investment, Industry and Trade of the Republic of Uzbekistan Laziz Kudratov, Minister of Trade and Industry of Singapore Gang Kim Yong, Chairman of the Singapore Business Federation Lim Min Yan, heads of relevant ministries and departments, industry associations, as well as more than 200 representatives of leading corporations, holdings and companies of the two countries.

Speaking with a welcoming speech, Laziz Kudratov noted the importance of upcoming events at the highest level, which will open a new page in the relations between Uzbekistan and Singapore.

"We are determined to use all the advantages of the event and enrich it with strong and concrete practical agreements," Laziz Kudratov said.

During the forum, the participants were provided with information about the reforms being carried out in our country, aimed, among other things, at improving investment attractiveness, strengthening investor protection and liberalizing foreign trade. It was noted that due to the effectiveness of the adopted programs, the interest of foreign partners is growing, their trust is strengthening.

The attention of the participants was focused on the positive dynamics of deepening cooperation between the business circles of the two countries, which resulted in the development and implementation of new investment projects, the development of trade and industrial cooperation.

In recent years, the volume of Singapore investments in Uzbekistan has exceeded $ 700 million, the number of enterprises with Singapore capital has increased 4 times, and the trade turnover between the two countries has doubled. The most promising measures to increase the volume of mutual trade are the implementation of interregional transport and logistics projects, the active use of existing transport corridors and infrastructure.

In turn, the Singaporean side confirmed the firmness of its intentions to support the strengthening and expansion of partnership with Uzbekistan in a wide range of areas. The chemical, textile, pharmaceutical, agricultural industries, education, healthcare, logistics, as well as the IT sphere are identified as drivers of further growth of interaction.

The forum program continued with a plenary session with the participation of Singapore's big business leaders, during which the director of Indorama Group Prakash Kejriwal, President of the Singapore Management Development Institute Eric Kuan, CEO of PSA International Wang Chi Fo discussed with representatives of the business circles of the two countries practical aspects of effective business in Uzbekistan, prospects for cooperation in the field of transport and logistics.

Within the framework of the event program, "B2B" negotiations and presentations of the investment potential of our country, specific cases of projects in the context of various sectors of the economy of Uzbekistan were also held.

As a result of the business forum, 23 agreements and contracts were signed in trade, investment and financial areas, chemical, energy and textile industries, the development of industrial zones, the implementation of infrastructure projects and the production of food products, as well as in construction, education, healthcare and pharmaceuticals.

 


Source: miit.uz

The project of the Emirati company Masdar for the construction of a 500 MW wind farm in Zarafshan, Navoi region, was recognized by the PFI Awards as the deal of the year in Central Asia.


The PFI (Project Finance International) Awards is one of the most prestigious awards in the field of project finance, awarded annually for the best project finance transactions in Europe, the USA, Asia, the Middle East and Africa.


It should be noted that the power plant construction project is being implemented under the terms of an Investment Agreement concluded between the Ministry of Investment, Industry and Trade and Masdar Company.


The signed agreement provides for Masdar to provide financing, design, construction and operation of the power plant for 25 years.


It is planned to attract $600 million of foreign direct investment for the implementation of the project. After the launch, the power plant will save 545 million cubic meters of natural gas annually and reduce carbon dioxide emissions by 1.1 million tons per year, as well as provide annual generation of 1.6 billion kWh of electricity, which is equivalent to the consumption of 500 thousand households.


The investment project is aimed at solving the tasks set by the Government of the Republic of Uzbekistan to bring the share of renewable energy sources in total electricity production to 25% by 2026.
Receiving this award is a universal recognition of the complexity of the investment project and the joint efforts of all its participants in the macroeconomic volatile period. This award also testifies to the great work done, flexibility and perseverance of all parties involved – Masdar, the Ministry of Investment, Industry and Trade and the creditors of the project – to realize the goals of Uzbekistan for the large-scale introduction of renewable energy sources.

 

Source: miit.uz

 

 

The number of newly created enterprises with the participation of foreign capital by country in January - December 2022:

  - Russia - 967

- Turkey - 369

- China - 275

– Kazakhstan – 195

- Korea - 92

- Tajikistan - 73

- Kyrgyz R. - 66

- Azerbaijan - 43

- USA - 40

- Germany - 39

  – Turkmenistan – 30

- others - 759

 

Source: stat.uz

President Shavkat Mirziyoyev held a video conference on industry development in the republic's regions.

During the meeting, representatives of responsible departments discussed with the head of state the work results over the past year.

In particular, in 2022, 19 new free economic zones and more than 400 small industrial zones were opened in the republic. The Republic has invested $3 billion in turning such industries as textiles, chemical production, construction materials, leather goods, pharmaceuticals, and electrical engineering into "drivers" of industry.

As a result, over the past five years, industrial enterprises have doubled to 100 thousand, and the production volume has increased 1.4 times. The industry was actively developing in the regions of the country.

The Head of State instructed to use the potential of the regions in "profile" industries. In particular, it is possible to increase the volume of cotton processing in Karakalpakstan, Jizzakh, Kashkadarya, Surkhandarya, Ferghana and Khorezm regions. Namangan, Samarkand and Navoi have not yet sufficiently used the regions' potential to produce food, leather goods and furniture.

In his message to the Oliy Majlis in December, the President set the task for the khokims to attract $50 million of investments to each district.

"This means that at least 5,000 additional jobs and 20 billion soums of tax revenue will appear in each district," the head of state said.

The authorities seek new opportunities and additional financial resources for industrial growth. For example, 55 trillion soums will be allocated to commercial banks for lending to enterprises, and the khokims of the regions will be trained to effectively use available funds.

The President instructed to develop additional projects and their "road map" for each district to provide working capital for 807 projects already started and 271 enterprises operating with low capacity.

In addition, 1.7 trillion soums will be allocated for developing the infrastructure of industrial zones and large investment projects. The territories of the free economic zones (FEZ), "Gidzhuvon" and "Kokand", will be expanded, and the FEZ "Urgut" will open branches in Karakalpakstan and Kashkadarya.

From 2023, 27 types of tax benefits, subsidies and preferences will be granted to 60 districts of the fourth and fifth categories, whose economic development lags behind.

Today the President signed a special resolution. According to him, in 2023, an additional $300 million will be allocated for projects in the textile industry. Customs privileges for more than 200 types of imported raw materials for the leather and shoe industry will also be extended for three years.

 

Source:  uz.sputniknews

On January 10, a video conference on industrial development and identification of additional reserves was held under the chairmanship of President Shavkat Mirziyoyev.


Industry plays a very important role in the economy and employment of the population. In order to create the necessary conditions for industries, 19 free economic zones and more than 400 small industrial zones have been created in recent years, 10 trillion soums have been allocated for their infrastructure. 3 billion dollars of financial resources were allocated to turn such industries as textiles, chemicals, building materials, leather, pharmaceutical, and electrical industries into "drivers". To provide the industry with raw materials, geological exploration has been tripled, more than 600 new deposits have been discovered.


As a result, over the past five years, the number of industrial enterprises has doubled to 100 thousand, and the volume of production has increased 1.4 times.
This has a positive effect on the development of the regions. In particular, such new industries as building materials, automotive industry, food industry have appeared in Jizzakh. 220 construction materials projects have been launched, the share of this industry in the region's industry has exceeded 20 percent.


19 major metalworking projects have been implemented in Samarkand, Syrdarya, Namangan and other regions. In 54 new small industrial zones created in Namangan, products worth 3 trillion soums were produced in 2022.


Over the past three years, the volume of production in the chemical industry has increased by 1.5 times, and exports - by 2 times.


However, in some regions, the results do not match the possibilities. In particular, industrial growth in Navoi, Bukhara and Tashkent regions in 2022 was below expectations. In the Republic of Karakalpakstan, Jizzakh, Kashkadarya, Surkhandarya, Ferghana and Khorezm regions, the level of yarn processing remains low. In Namangan, Samarkand and Navoi, the potential in the production of food, leather and footwear products and furniture is not used enough.
In this regard, the meeting discussed measures to develop industry, increase investment in the industry and use reserves.


The Head of State stressed that the industry will be provided with new opportunities and additional financial resources.


First of all, banking regulations will be revised and additional resources will be allocated to commercial banks in the amount of 55 trillion soums for lending to enterprises. This means an additional source of investment of an average of $20 million for each district.


The second possibility is that in 2023 1.7 trillion soums will be allocated for the infrastructure of industrial zones and large investment projects. The territory of the free economic zones "Gijduvon" and "Kokand" will also be expanded. Branches of the free economic zone "Urgut" will be established in Karakalpakstan and Kashadarya.


Thirdly, starting from 2023, 27 types of tax benefits, subsidies and preferences will be provided to 60 districts of the fourth and fifth categories whose economic development is lagging behind.


The fourth is preferences for manufacturers of carpets, home textiles, leather and jewelry. So, in 2023, an additional $ 300 million will be allocated for textile projects. Customs privileges for more than 200 types of imported raw materials for the leather and footwear industry will be extended for three years. Jewelers will have the opportunity to purchase raw materials at a discount, as well as tax, customs and banking benefits.


The President stressed the need to widely inform the population and entrepreneurs about these opportunities and increase the number of projects on the ground.


It is noted that 1,264 projects will be launched in industrial zones. An important task is to ensure the launch of the 6th hydrometallurgical plant in Navoi region and the 3rd copper processing plant in Almalyk, a modern foundry in Andijan region and a cluster of agricultural machinery in Chirchik.
The responsible persons are tasked with expanding production cooperation, implementing localization projects worth $ 6 billion, and timely launching about 3 thousand projects included in regional investment programs.


In general, it is indicated that this year, using all reserves, it is possible to increase industrial production by 14 percent.


The heads of industries and khokims presented their plans and proposals on the issues discussed at the meeting.

 

Source: uzdaily.uz

The French online newspaper “Le Club de Mediapart” published an article, “Socio-economic development of Uzbekistan thanks to deep reforms”.

“Since 2016, Uzbekistan has been implementing reforms towards modernization and democratization,” the article says. - Like many countries, it must go through the growth of its economy and reforms aimed at sustainable development. Following a slowdown in activity in the country during the pandemic, as in the rest of the world, Uzbekistan's GDP increased to $80 billion. The state plays an important role not only in the decentralization of the economy but also in supporting the private sector.”

The publication emphasizes that at least $8 billion of direct investment has been attracted for these purposes, and exports have reached the threshold of $19 billion.

As the newspaper writes, the modernization of the economy is taking place from a macroeconomic point of view by increasing the national income, as well as from a social point of view of the grid - wages, pensions and social benefits. Almost 300 thousand houses have been built in the country, which is ten times more than in previous years. Uzbekistan also supported 2 million low-income families; in 2017, this figure was only 500 thousand. The allocations allocated for this period increased seven times, and this year they reached 11 billion soums.

“The coming year has already been declared in the country as the Year of Human Care and Quality Education,” concludes Le Club de Mediapart.

 

Source: dunyo.info

On January 7 this year, the Working Group headed by the Minister of Investment, Industry and Trade Laziz Kudratov and consisting of the heads of industry associations, commercial banks and local authorities continued to familiarize themselves with the current state and develop measures to accelerate the development of the industrial, investment and export potential of the Khorezm region.

In particular, the Working Group visited the enterprises of Develop Textile LLC, New Best Style LLC, Future Industries Systems LLC, Khiva Cluster LLC, Khiva Silk Factory LLC, Yantex invest LLC, Yangiariq LLC tex”, LLC “Komila kelajak avlod gilamlari”. In a conversation with the initiators of the projects, the issues that they faced in the course of their activities were discussed, and algorithms for solving them were developed right on the spot. Leaders have been instructed to take action to provide immediate assistance.

The ongoing work aims to increase production volumes in various industries, increase the efficiency of systematic work, support entrepreneurs in expanding and increasing the productivity of existing enterprises and bring those lagging to their design capacity. In parallel with the implementation of additional investment projects, these measures will increase production volumes by at least 15% of the targets for 2023.

 

Manba: miit.uz

On January 5 this year, the Working Group headed by the Minister of Investments, Industry and Trade Laziz Kudratov and consisting of the heads of industry associations, commercial banks and local authorities on site began to study and develop further measures to increase the export, investment and industrial potential of the Republic Karakalpakstan.

Among the visit addresses were many large industrial enterprises of Muynak, Kungrad, Kanlykul, Shumanay and Khodjeyli regions. Meetings with project initiators were held on the ground, and current issues of entrepreneurs and prospects for further development of production capacities were studied. The study pays special attention to analysing the region's potential in implementing new investment projects in priority sectors.

The work carried out in various regions of the region made it possible to identify several enterprises with significant potential for increasing capacity and further expanding production. Based on a comparative analysis, targeted locations for implementing new investment projects were identified. In general, implementing these measures will increase the volume of industrial production in the Republic of Karakalpakstan by an additional 1 trillion soums in 2023.

New approaches to improving the efficiency of work on expanding industrial production, implementing investment projects and stimulating exports were discussed during a videoconference meeting held on the same day.

During the meeting, the results of 2022 were summed up in the context of industrial growth, export performance and investment activity. So, in Karakalpakstan last year, industrial products worth 17.7 trillion soums were produced, export volumes amounted to $108.6 million, and $40.4 million of foreign direct investment was disbursed. In addition, it was noted that 959 projects under the regional investment program attracted $177 million in investments, which made it possible to create 16,200 new jobs.

The plans for 2023 include bringing the volume of industrial production to 20.5 trillion soums, exports to 122.8 million dollars, and implementing 934 projects worth 582.9 million dollars to create 16,618 new jobs.

It was emphasized that work is currently underway to increase these indicators in the context of each area - industry, investment and export, based on a detailed analysis and effective planning.

To realize the existing potential, the leaders responsible for the directions were given specific tasks to form regional working groups, organize systematic work to visit the regions, identify and mobilize additional reserves, and develop programs for the advanced development of the industry. The need to intensify work with potential investors and entrepreneurs was noted for the implementation of promising investment projects, the transformation of small manufacturing enterprises into medium-sized ones, and medium-sized enterprises into large ones.

As a result of the meeting, instructions were given on the effective implementation of the tasks set and the development based on the study of detailed network schedules for the production of industrial products, localization, and the commissioning of new capacities in the context of regions and industries.

The activities of the Working Groups in the regions continue.

 

Source: mift.uz

The consumer sector (including agri-food) will be the most attractive for foreign investment in the next three years. The energy, business services and digital services sectors follow this.

Find out more in the Central Asia Investment Attractiveness Survey (www.ey.com)

On January 4 this year, a meeting was held at the Ministry of Investments, Industry and Trade of the Republic of Uzbekistan in the format of videoconferencing chaired by the Minister of Investments, Industry and Trade Laziz Kudratov to discuss the integrated development of industry, the implementation of new investment projects and the expansion of production capacities in the regions of the country.

The meeting was attended by heads and employees of the Ministry, heads of industry associations, commercial banks, and local authorities.

During the meeting, attention was focused on the importance of an integrated approach to the implementation of industrial policy in the country, which includes the formation of a modern regulatory framework, the development of a Strategy for the industrial development of the country, the adoption of prompt measures to accelerate the expansion of existing and the introduction of new production capacities, the creation of a system of high-quality training and professional development of personnel.

Working groups have been formed, tasked with conducting a study and developing proposals for increasing production volumes and expanding the production capacities of over 1,300 operating enterprises with field visits.

The working groups were also instructed to study the possibility of implementing over 1,100 new investment projects in various industries with the involvement of interested local entrepreneurs. In addition, a study of about 2,000 investment projects will be carried out to identify the problems that entrepreneurs face in their activities, including issues related to the supply and installation of modern equipment.

Further measures for free economic development, small industrial and youth industrial and business zones were considered separately. Representatives of the Ministry assigned to the regions were instructed to conduct a detailed study of the current activities of the zones, including connection to utilities, efficient use of land, and inclusion of objects in the chains of formation of finished products with high added value. MIPT representatives were also instructed to analyze and develop specific action plans to implement 68 new large industrial projects in the regions.

Based on the results of the activities of the Working Groups of the Ministry in the regions, a Program will be prepared, which includes measures for the accelerated development of the industry for 2023.

A separate area is the development of draft Laws of the Republic of Uzbekistan “On Industry”, and “Strategies for the Development of Industry in the Republic of Uzbekistan”, as well as the creation of schools for the training of engineers at large manufacturing enterprises in various industries, where specialists can receive both theoretical knowledge and practical skills.

As a result of the meeting, the representatives of the Working Groups were given additional instructions to ensure the effective implementation of the tasks set.

 

 

Source: mift.uz

In 2021, the net proceeds from the sale of products (goods, works and services) of small enterprises and microfirms headed by women amounted to 22,567.7 billion soums, which exceeds the data of 2020 by 6,856.7 billion soums. This, respectively, is 5.4% of the total net proceeds from the sale of products (goods, works and services) of small enterprises and microfirms.

Including by types of economic activity:

in trade - 12 843 billion soums;

in industry - 3,952.5 billion soums;

in the service sector - 3,773.9 billion soums;

in construction - 1,619.7 billion soums;

in agriculture - 378.5 billion soums.

 

Source: stat.uz

At the airports of Tashkent, Samarkand, Bukhara, Ferghana and Urgench, Tax-Free counters began to operate, where foreign citizens can return the amount of VAT paid when purchasing certain goods in Uzbekistan.

On January 2, at the airports of Tashkent, Samarkand, Bukhara, Fergana and Urgench, the opening of Tax-Free counters established by the State Tax Committee of Uzbekistan took place. The counters have started working in test mode, the press service of Uzbekistan Airports reports.

The Tax-Free system implies the return to foreign citizens of the amounts of VAT they paid when purchasing certain types of goods from entrepreneurs engaged in retail trade in Uzbekistan. The list of goods eligible for cashback was approved by a government decree dated November 8. These are souvenirs, nuts, fruits and dried fruits, leather and fur products, carpets, textiles and more.

You must register in the Soliq mobile application and scan receipts for your purchases to receive a VAT refund. When departing at the airport, the passenger must check-in for the flight and then go to the Tax-Free counter, presenting the boarding pass and the goods themselves. The registered goods can be left for transportation in hand luggage, or you can return to the check-in counter and check in your luggage.

The total amount of the purchase of goods that fall under the Tax-Free system must be at least 1 million soums. The product must also not be opened and used. After checking the goods' compliance with the criteria, employees of the State Tax Committee draw up a cashback. For various categories of goods, the passenger can return up to 90% of the VAT amount. Cashback is issued to the passenger's card and paid out after the 25th day of the month following the month in which the return was registered.
 
 

 As of January 1, 2022, the number of small enterprises and micro-firms managed by women leaders in the Republic of Uzbekistan amounted to 36,472.

The number of small businesses and micro-firms run by women increased by 177 compared to the same period last year.

Regions with the largest number of operating small enterprises and micro-firms led by women:

In Tashkent - 9 764

In Tashkent region - 4,760

In the Navoi region - 3,866

In Samarkand region - 2,475

 

Source: stat.uz

In January-September 2022, in the Republic of Uzbekistan, in the technological structure of investments in fixed assets in the Republic of Uzbekistan, 86143.1 billion soums were allocated for the purchase of machinery, equipment and inventory, which amounted to 45.3% of their total volume, investments for construction and installation works reached 89041.1 billion soums (share in the total volume 46.9%), for other costs - 14815.6 billion soums (7.8%).

 

Source: stat.uz

Tomorrow, the International Institute of Central Asia (IICA) will host an international conference on the theme “Uzbekistan and Kazakhstan. Prospects for the development of strategic partnership and alliance”, dedicated to the results of the visit of the President of Kazakhstan to Uzbekistan and negotiations at the highest level.

The event will be attended by the leadership of the Ministry of Foreign Affairs, the Institute for Strategic and Interregional Studies under the President, the Ministry of Investments and Foreign Trade, and the diplomatic corps accredited in Uzbekistan.

The Kazakh side participants will be the Kazakhstan Ambassador to Uzbekistan, Beibut Atamkulov, director of the Kazakhstan Institute for Strategic Studies (KISS) Yerkin Tukumov, experts from the leading "think tanks" of the two countries and others.

Recall that following the results of the Tashkent summit of the heads of Uzbekistan and Kazakhstan, historical documents were signed - the Treaty on Allied Relations and the Treaty on the Demarcation of the Uzbek-Kazakh State Border, as well as a solid package of bilateral documents on essential areas of multifaceted cooperation. Agreements and contracts have been concluded for a total amount of more than 8 billion US dollars.

 

Source: dunyo.info

On December 24, 2022, the 9th meeting of the Ministers of Foreign Affairs of the Dialogue "Central Asia + Japan" was held in Tokyo.

The heads of the foreign ministries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Japan discussed the prospects for strengthening cooperation between the countries of Central Asia and Japan in bilateral and multilateral formats in the areas of development of transport connectivity, logistics, industrial cooperation, healthcare, education, "green" economy.

An exchange of views took place on topical issues of the international and regional agenda.

The head of the delegation of our country, the Minister of Foreign Affairs of the Republic of Uzbekistan Vladimir Norov, in his speech, noted that Japan is a reliable partner in ensuring the sustainable development of Central Asia, making a significant contribution to the industrial and infrastructural modernization of the economies of the countries of the region.

It was emphasized that in recent years a new political atmosphere had been formed in Central Asia, many issues have been resolved, economic cooperation has been expanded, and conditions for free human contact have been provided. As a result of the measures taken, only the trade turnover of Uzbekistan with the countries of Central Asia from 2016 to 2021. grew by 2.5 times to $6.4 billion.

In this context, initiatives were announced to improve the efficiency of interaction between the countries of Central Asia and Japan, the introduction of Japanese know-how and investments, the implementation of industrial cooperation projects, the attraction of grant funds from Japan in the digitalization of the transport system, sustainable energy supply, the promotion of the "green" agenda, the creation of medical institutions and enterprises.

The presence of opportunities for intensifying cooperation in the areas of training for advanced training of personnel, migration, tourism, and culture was noted.

 

Source: mfa.uz

On December 24 of this year, as part of the visit of the government delegation of Uzbekistan to Azerbaijan in Baku, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjayev held meetings with the leadership of the free economic zone "Alat" and CJSC "Baku International Commercial Sea Port".

During the talks, prospects for establishing investment and transport and logistics cooperation based on the joint use of resources and capabilities of the port and the FEZ of the Republic of Azerbaijan were discussed.

In particular, with the chairman of the Board of FEZ "Alat"

The prospects of expanding the investment partnership with an emphasis on the implementation of joint projects in the production of food, leather, footwear, textile and other high-value-added products in the territory of the free economic zone "Alat" with the organization of further exports to the markets of the EU, CIS and other neighboring countries were discussed by Valeh Aleskerov of the Republic of Azerbaijan.

Taleh Ziyadov, General Director of Baku International Commercial Sea Port CJSC, discussed the possibilities of further expanding transport and logistics ties, in particular, taking measures to increase the volume of container traffic and the transportation of Ro-Ro cargo through seaports. The parties welcomed the signing of an Intergovernmental Agreement on International Road Transport. The prospects of opening Uzbek warehouses and container terminals on the basis of the Baku International Commercial Sea Port and holding a meeting of the Joint Commission on International Road Transport to discuss issues of mutual transportation of goods, including essential goods through the territories of the two countries were emphasized.

As a result of the meetings, the format of further cooperation within the framework of the implementation of the discussed projects and initiatives was agreed.

 

Source: mift.uz

On December 23, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjayev held a meeting with the heads of more than 30 leading Saudi companies, such as ACWA Power, Dr. Sulaiman Al–Habib Medical Group, SABIC, Al Rajhi International, Jamjoom Pharma, Fawaz Al Hokair Group, Seera Group and others staying in in Tashkent as part of the visit of the delegation of the Kingdom of Saudi Arabia to the Republic of Uzbekistan.

The meeting was also attended by the Minister of Investment of the Kingdom of Saudi Arabia Khalid al-Falih, heads of ministries, departments, industry associations of the two countries.

During the conversation, which took place in the spirit of mutual trust and openness, representatives of the Saudi business community were provided with information about the favorable investment conditions created in Uzbekistan in recent years. It was about the protection of investors' rights, the creation of the necessary infrastructure, the transformation of the banking sector, large-scale privatization, the opportunities for export to regional markets in the free trade regime and the EU markets on a preferential GSP+ basis.

During the talks, issues of current cooperation, the potential for its expansion in the near future, as well as details of the implementation of joint projects and initiatives were discussed.

The readiness of the Government of Uzbekistan to provide comprehensive support at all stages of the implementation of investment projects – from the joint development of pre-project documentation to the commissioning of facilities was expressed.

In turn, Saudi businessmen highly appreciated the investment climate of Uzbekistan, the legislative framework for the protection of foreign investments. The readiness to continue a constructive dialogue with Uzbek colleagues within the framework of the study of promising investment projects was voiced.

During the conversation, KSA entrepreneurs were able to ask their questions concerning financial, technical and legal aspects of investing in Uzbekistan, to which they received exhaustive answers.

Following the meeting with representatives of Saudi business circles, a format for further dialogue was developed in order to effectively coordinate bilateral cooperation with the entry into firm trade agreements and contracts.

 

Source: mift.uz

On December 23, within the framework of the visit of the delegation of the Kingdom of Saudi Arabia to Uzbekistan in Tashkent, negotiations were held in a narrow format between the Deputy Prime Minister of the Republic of Uzbekistan - Minister of Investments and Foreign Trade Jamshid Khodjaev and the Minister of Investments of the Kingdom of Saudi Arabia Khalid al-Falih.

During the meeting, the current state and prospects of bilateral trade, economic and investment cooperation were discussed.

The positive experience of ACWA Power, which implements several large projects in alternative energy in various regions of Uzbekistan, was noted. Mutual readiness was expressed to provide comprehensive support to the company both within the framework of ongoing projects and in the course of further implementation of investment initiatives.

The prospects for accelerating the completion of some projects in the chemical, telecommunications, medical, pharmaceutical and banking sectors, agricultural production and in the field of organizing retail trade networks were discussed with companies such as Sabic, Saudi Telecom, Dr. Sulaiman Al Habib Group, Jamjoom Pharma, Al Rajhi International and Ajlan & Bros Holding Group, Al Hokair Group and National Bank of Saudi Arabia. The parties agreed on the need to comprehensively intensify the implementation of projects by providing the necessary support measures from the governments of both countries.

An exchange of views took place at the past business forum with the participation of the business circles of the two states and the signed promising agreements and contracts. The parties appreciated the event's results and agreed to take specific practical measures for the timely and full implementation of the agreements.

During the conversation, measures were also considered for financing infrastructure projects of regional importance, accelerating the signing of a Memorandum of Understanding between the State Investment Fund of Saudi Arabia and the Direct Investment Fund of Uzbekistan, organising the 5th meeting of the Uzbek-Saudi Business Council and the "Exhibition of Goods Produced in Uzbekistan" in Tashkent city in February 2023.

As a result of the meeting, the meeting participants confirmed their mutual commitment to further strengthening investment, trade and economic cooperation. They agreed on the interaction format for the timely and full implementation of all discussed projects and initiatives.

 
Source: mift.uz

On December 23 this year, as part of the visit of the delegation of the Kingdom of Saudi Arabia to the Republic of Uzbekistan, the Uzbek-Saudi business forum was held at the Hilton Tashkent City hotel, organized by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan and the Ministry of Investment of the Kingdom of Saudi Arabia.

  It was attended by the Minister of Investment and Foreign Trade of the Republic of Uzbekistan, Jamshid Khodjaev, the Minister of Investment of the Kingdom of Saudi Arabia, Khalid al-Falih, heads of ministries, departments and over 100 leading companies of both countries.

At the opening ceremony of the Forum, the heads of delegations stressed that the visit of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, to Saudi Arabia in August this year served as a powerful impetus for the comprehensive deepening of relations between Uzbekistan and Saudi Arabia, demonstrating positive development dynamics in recent years.

Thus, in particular, the volume of mutual trade between the two countries in January-November this year increased by nine times compared to last year.

Positive growth dynamics are also observed in investment cooperation - over the past few years, the number of companies with Saudi capital in Uzbekistan has increased by five times. Together with Saudi companies, projects worth more than $17 billion are being implemented in the energy, petrochemistry, healthcare, infrastructure development, pharmaceuticals and agriculture sectors.

A firm commitment was emphasized to continue reforms in Uzbekistan aimed at reducing the state's share in the economy and privatizing state-owned enterprises, transforming banks, creating an efficient stock market, and implementing projects in priority sectors on the principles of public-private partnership.

Opening opportunities were announced for expanding the volume and geography of foreign trade, including through the effective use of free access to regional markets and EU markets based on GSP + preferences, diversification of trade routes by promoting large-scale regional transport projects and the country's desire to join WTO.

“Uzbekistan and Saudi Arabia have rich natural resources and huge industrial potential. We can create joint ventures in both Uzbekistan and Saudi Arabia aimed at the production of high-value-added products with further export to regional and European markets, as well as to the countries of the Greater Arab Free Trade Area with a total population of more than 1.4 billion potential consumers,” Jamshid Khodjaev noted in his speech.

In turn, the Saudi side appreciated the pace and effectiveness of the socio-economic reforms in Uzbekistan and the opportunities for a breakthrough expansion of bilateral investment and trade and economic cooperation. The Minister of Investment of Saudi Arabia expressed his commitment to implementing practical measures to strengthen investment and trade ties between the two countries and called on Saudi entrepreneurs to conclude mutually beneficial contracts and agreements.

Promising areas for investment cooperation have been identified - oil and gas and petrochemical industries, mechanical engineering, electrical engineering, food, textile, leather and footwear industries, sericulture, infrastructure construction and tourism. And the mutual interest of business circles in building ties and working together was revealed during the B2B and G2B negotiations, where entrepreneurs and investors could identify common interests, discuss new mutually beneficial initiatives, and achieve firm cooperation agreements.

As a result of the forum, a solid package of documents was signed in priority sectors, the implementation of which will significantly expand the scale of multifaceted cooperation between Uzbekistan and Saudi Arabia, create new jobs and bring interaction between the business circles of the two countries to a higher level.

 
 
Source: mift.uz

As a result of the Uzbek-Kazakhstan summit, a ceremony of signing bilateral documents was held.

President of Uzbekistan Shavkat Mirziyoyev and President of Kazakhstan Kassym-Jomart Tokayev signed historical documents - the Treaty on Allied Relations and the Treaty on the Demarcation of the Uzbek-Kazakh State Border.

In addition, 15 documents were signed at the level of governments, ministries and departments, and large companies of the two countries, providing for the further expansion of multifaceted cooperation.

Among them are the agreements on the establishment of the International Center for Industrial Cooperation "Central Asia", on cooperation in the field of environmental protection, on cooperation in the field of higher
and postgraduate education, the Protocol on Amendments to the Intergovernmental Agreement on the Conditions for Mutual Travel of Citizens, dated July 7, 2000.

Memorandums were adopted in the field of strategic reforms, the development of electronic commerce, forestry, public service, and "road maps" to expand cooperation between Tashkent and Turkestan, Navoi and Kyzylorda, Jizzakh and Turkestan regions, as well as agreements on the implementation of projects in the field of energy, chemical industry, transport and logistics.

Also, during the visit, trade contracts and investment agreements worth $8 billion were signed.

 

Source: president.uz

As a result of the business forum of Uzbekistan and Kazakhstan, agreements were signed on the development of cooperation in trade, economic, cultural and humanitarian spheres between Samarkand and Turkestan, a road map with investment projects and trade contracts in the field of agriculture.

[su_image_carousel source="media: 16331,16330,16329,16328,16327"]

As a result of the business forum, many documents were signed between Uzbekistan and Kazakhstan, the press service of the Ministry of Investments and Foreign Trade reported.

Among them are agreements on the development of cooperation in trade, economic, cultural and humanitarian spheres between Samarkand and Turkestan, a road map with investment projects and trade contracts in agriculture.

In addition, a package of agreements was signed on plans for the development of interaction between the business circles of Uzbekistan and Kazakhstan for a total amount of more than $2.5 billion.

“Uzbekistan is a key and long-term partner in Central Asia for us. The developing trade between the countries has become the locomotive of our friendly relations. Kazakhstan attaches great importance to developing cooperation on the Central Asian track. The holding of the forum is another proof of the importance of developing regional cooperation and building Central Asian brands on the world market,” Deputy Prime Minister – Minister of Trade and Integration of Kazakhstan Serik Zhumangarin noted in his speech.

As we reported earlier, Deputy Prime Minister - Minister of Investments and Foreign Trade of Uzbekistan Jamshid Khodjaev said that Uzbekistan and Kazakhstan plan to create a joint foreign trade company and an international centre for industrial cooperation. He also proposed joint projects to cultivate cattle, grain and oilseeds in Kazakhstan.
 
 
Source: gazeta.uz

In November, Russia overtook China to become Uzbekistan's main foreign trade partner. For the first time in seven months, Uzbekistan resumed the export of gold, selling the precious metal for $556.7 million in a month. The country is becoming increasingly dependent on the export markets of the CIS countries.

The trade turnover of Uzbekistan for 11 months reached $44.95 billion, having increased by $6.84 billion, or 18%, compared to January-November last year. This follows from the data of the State Committee on Statistics.

Exports since the beginning of the year increased to 17.36 billion (+12%), and imports to 27.59 billion (+22.1%). The foreign trade deficit exceeded 10.22 billion, which is 45.5% more than last year's figure (-$7.02 billion).

For the first time since April, Uzbekistan resumed the export of gold and sold the precious metal worth $556.7 million in November. Gold ranks third (20.3%, or $3.53 billion) in the structure of exports after industrial goods (23.1%, $4.01 billion) and services (20.8%, $3.62 billion).

Export

Exports excluding gold in value terms increased by 21.4% to $13.84 billion. This was achieved mainly due to the growth in sales of textile products by 9.5% - up to $2.9 billion, vegetables and fruits - $1.05 billion (+20.7%), gas - $ 910.9 million ( +30.3%), oil and oil products - $148.4 million (2 times), fertilizers - $393.8 million (35.6%) and other items.

It is worth noting separately the growth in exports of power generating machines and equipment by 8.1 times ($154.5 million) and non-special machinery and equipment for industry, machine parts by 2.8 times ($75.8 million).

Textile exports account for 16.7% of the structure of total exports. Most products are yarn (45.2%), finished knitwear, and garments (28.5%). At the same time, the share of the latter is growing.

For Uzbek textiles, the Russian market remains the main one, where products worth $1.16 billion (+41%) were sent. Deliveries to Turkey increased by 21.8% to $481.9 million, but to China, they more than doubled from $609.3 million to $253.1 million.

Import

As for imports, food supplies remain at a high level: grains and products from them - $957.5 million (+30.1%), various food products and drugs - $438.4 million (almost twice), sugar, sugar and honey products - $518.9 million (+49.6%), meat and meat products - $283.9 million (+80.8%).

Imports of oil and oil products also increased - $1.09 billion (+17.9%), coal, coke and briquettes - $266.1 million (72.3%), electric current - $105.8 million (+23, 9%), while gas supplies fell to $104.8 million (-23.2%).

Imported medical and pharmaceutical products worth $1.44 billion (+1.9%), plastics - $769.7 million (+39.7%), iron and steel - $2.27 billion (+25.6%), cars — $1.92 billion (+11.1%).

Trade with countries

Dynamics of major partner countries in the foreign trade turnover of Uzbekistan (for January-November, million US dollars).

Russia again regained its leadership in foreign trade with Uzbekistan - $ 8.34 billion (share - 18.6%). The volume of exports to Russia increased by 49.5% to $2.8 billion, while imports increased by 17.3% to $5.54 billion.

China dropped to second place with $8.18 billion (18.2%). Next comes Kazakhstan - $4.2 billion (9.3%), Turkey (6.5%) - $2.93 billion and the Republic of Korea - $2.17 billion (4.8%).

Trade with Russia and China proliferates (26.7% and 21.6%, respectively). While the growth of trade with Kazakhstan has slowed down: if the indicator for the same period in 2021 increased by 34.7%, then this year it is 18.7%.

Foreign trade with Turkey began to fall: if last year the indicator increased by 61.8%, then this year the decline was 3.5%. This may be due to the lira devaluation and logistics problems.

Trade relations with Korea after falling in 2021 (-12%) increased by 29.1%.

Trade with Kyrgyzstan increased by 31.3%, with Turkmenistan - at 12.7%, Tajikistan - at 11.8%, and Afghanistan - at 11.3%.

Uzbekistan is increasingly expanding trade relations with the CIS countries. Due to the decrease in trade turnover with other foreign countries, the share of the CIS countries increased to 40% (it was 36.9%). Dependence on export markets in the CIS also increased from 31.5% to 41%, mainly due to Russia.

 

Source: gazeta.uz

The Ministry of Investment and Foreign Trade of Uzbekistan (MIFT) held a meeting with Deputy Director General of the Directorate of Research and Exploration of Minerals of Turkey Nail Yildirim and project Manager Mustafa Tokoglu.

According to MIFT, the Directorate of Mineral Research and Exploration (MTA) of Turkey was founded in 1935 as a geological research organization. The head office is located in Ankara. The main activity of the organization is the provision of services for geological exploration. MTA has been operating in Uzbekistan since 2018.

During the meeting, MTA representatives highly appreciated the conditions created in Uzbekistan for comfortable activities of foreign investors and expressed their readiness to take an active part in the implementation of new joint projects.

Prospects for increasing investment cooperation were discussed, bearing in mind the implementation of new projects in the field of mineral exploration. It was noted that there are opportunities to intensify joint work, exchange experience and technologies, and improve the skills of specialists from both countries.

At the end of the meeting, the parties agreed on the format and measures for the development of further partnership within the framework of the implementation of the discussed areas of cooperation.

 

Source: dunyo.info

As part of the visit of the delegation of Uzbekistan headed by Foreign Minister Vladimir Norov, First Deputy Chairman of the Senate of the Oliy Majlis Sodik Safoev met with Senator Roger Wicker (Mississippi), as well as Congressmen Adam Smith (Washington), Pete Sessions (Texas), Don Bacon (Nebraska) in Washington on December 12-14, by Ami Bera (California), Steve Chabot (Ohio) and Lloyd Smacker (Pennsylvania).

According to the Embassy of Uzbekistan, during the talks, the American side was thoroughly acquainted with the current dynamics of relations between our country and the United States, the ongoing reforms in the republic, as well as the efforts being made to join the WTO. During the negotiations, the objective and comprehensively reasoned position of Uzbekistan on the Jackson-Vanik amendment was also brought to the congressmen and a request was voiced to support the abolition of its application against the republic.

During a meeting with a Republican senator from Mississippi Roger Wicker, the American legislator highly appreciated the achieved level of bilateral relations, confirmed his readiness to contribute to strengthening and expanding the strategic partnership of the United States with Uzbekistan.

Senator Roger Wicker supported Uzbekistan's position on the Jackson-Vanik amendment, as, according to him, the document has lost the legal grounds for its application to independent states, including Uzbekistan. "I will call on my colleagues in the Senate to support the repeal of the Jackson-Vanik amendment in relation to Uzbekistan," the senator stressed.

During negotiations with the Chairman of the Subcommittee on Asia, Pacific and Central Asia in the Committee on Foreign Affairs of the U.S. Congress, Ami Bera and his deputy According to Steve Chabot, the American legislators assured of providing all possible assistance in Uzbekistan's accession to the World Trade Organization, stressing that this is important for the development of bilateral trade. According to them, Tashkent's resolute policy towards accelerated accession to the WTO testifies to the country's readiness to carry out equal and open trade relations with all countries of the world. "This is a clear signal to external investors to launch major projects in Uzbekistan," the congressmen said.

Chairman of the House Armed Services Committee, Congressman Adam Smith welcomed Tashkent's active regional policy, which has become a decisive factor in deepening cooperation between the Central Asian countries. Congressman Adam Smith was informed of Uzbekistan's position on the importance of ensuring the interconnectedness of the regions of Central and South Asia and, in this regard, the development of a network of transport corridors. In this context, the need to support the construction projects of the trans-Afghan transport corridor was emphasized. The Congressman agreed that the implementation of this project will contribute to regional development.

During negotiations with a member of the "Caucus on Uzbekistan" in the US Congress, a congressman Don Bacon paid special attention to the implementation of the agreements reached during the visit of the US Congressional delegation to Uzbekistan in 2021. The Congressman intends to promote the establishment of partnership between Uzbekistan and Nebraska technology companies in the production of modern irrigation systems. In this regard, the Congressman assured that his office will soon submit concrete, well-founded project proposals for joint implementation with the Government of Uzbekistan.

Republican Congressman Pete Sessions said that Uzbekistan is a very important partner for the United States. According to him, bilateral relations should increasingly acquire the spirit of strategic cooperation. Pete Sessions said that, as a member of the "Caucus on Uzbekistan", he is determined to actively protect and promote the interests of our republic in Congress. He stressed that he is ready to become a co-author of resolutions in support of Uzbekistan, as well as to involve other American legislators in the Caucus.

A member of the House Committee on Ways and Means, Congressman Lloyd Smacker said that today Uzbekistan and the United States have significantly expanded their bilateral political and economic partnership. In this regard, as he noted, the existence of discriminatory acts on interaction with the republic, even nominal ones, does not correspond to the spirit of strategic partnership. According to him, the Jackson-Vanik amendment is a relic of the last century. The American legislator will work with his colleagues from the Ways and Methods Committee and urge them to speed up the process of adopting the relevant bill at the upcoming hearings of the US Congress.

During the meetings, representatives of the Congress highly appreciated the efforts of the Government of Uzbekistan to intensify the process of the country's accession to the WTO. According to them, the accession of Uzbekistan will give US companies a competitive advantage in the Uzbek market, affecting the creation of jobs and the growth of American exports.

According to the Embassy of Uzbekistan, following the meetings with American legislators, an agreement was reached to maintain regular contacts on topical issues of the bilateral agenda, including inter-parliamentary relations. Representatives of the US Congress expressed their readiness to receive parliamentary delegations of Uzbekistan, as well as to consider the possibility of joining the next visit of the Congressional delegation to Uzbekistan in 2023.

 

Source: dunyo.info

In the total volume of investments in fixed assets mastered in the Republic of Karakalpakstan in January-September 2022, the share of investments financed from non-centralized sources of financing amounted to 72.5%, or 5120.9 billion soums, and the growth rate was 126.9 % in relation to the volume of the corresponding period of the previous year.

Accordingly, the share of investments in fixed assets financed from centralized sources of financing is 27.5%, or 1938.1 billion soums and the growth rate was 102.0% compared to the corresponding period last year.

 

Souce: stat.uz

The state visit of the President of Kazakhstan Kassym-Jomart Tokayev to Uzbekistan will take place on December 21-22.

The visit will be one of the first foreign visits of the leader of Kazakhstan after his re-election as President of the country, which indicates a high level of interaction and commitment to further strengthen the allied relations of the two states.

It should be noted that the Central Asian region has recently become a center of international diplomacy and political activity. Only recently, a number of multilateral high-level meetings have been held in the capitals of Uzbekistan and Kazakhstan, as well as the ancient city of Samarkand. Among them are the summits of the Shanghai Cooperation Organization (Samarkand, September) and the Organization of Turkic States (Samarkand, November), Meetings on Interaction and Confidence-building Measures in Asia and the Commonwealth of Independent States (Astana, October), summit meetings in the formats "Central Asia–Russia" and "Central Asia–EU" (Astana, October).

The leaders of Uzbekistan and Kazakhstan are steadily promoting the agenda of good neighborliness and regional partnership, realizing that the long-term and sustainable development of each country is inextricably linked with the stability and well-being of the entire region. As a result of joint efforts, a completely new political atmosphere has been formed in Central Asia. Regular Consultative meetings of the heads of Central Asian states, the initiative to hold which was put forward by the President of Uzbekistan in 2017 during the 72nd session of the UN General Assembly, have become an effective mechanism.

Uzbekistan and Kazakhstan are good neighbors with historical, spiritual and cultural affinity, as well as reliable strategic partners who contribute to strengthening the potential of Central Asia, ensuring peace and prosperity throughout the region.

Diplomatic relations between the two States were established on November 23, 1992. Throughout the history of Uzbek-Kazakh cooperation, the parties have demonstrated an exemplary model of bilateral and multilateral cooperation in the socio-political, trade, economic, cultural and humanitarian spheres.

A powerful impetus to cooperation at a new stage was given by the state visit of President of Uzbekistan Shavkat Mirziyoyev to Kazakhstan on March 22-23, 2017 and the state visit of President of Kazakhstan Kassym-Jomart Tokayev to Uzbekistan, held on April 14-15, 2019. As a result of these visits, over 20 intergovernmental and interdepartmental documents were signed, as well as packages of agreements in the field of trade and economic cooperation.

Strengthening friendship and good-neighborliness with Kazakhstan is one of the most important priorities of Uzbekistan's foreign policy. The two countries support each other in matters of international politics, fruitfully cooperate within the framework of such international organizations as the UN, SCO, CIS, Economic Cooperation Organization, Organization of Islamic Cooperation, Organization of Turkic States, International Fund for Saving the Aral Sea, and others. The positions of the parties on many issues of regional and international importance are similar or close.

Kazakhstan is one of the important trade and economic partners of Uzbekistan. Over the past five years, the trade turnover between our countries has been steadily growing, despite the consequences of the pandemic. In January-November 2022, this figure amounted to 4.2 billion US dollars. Following the results of the state visit of President Shavkat Mirziyoyev to Kazakhstan in 2021, a practical Action Plan was signed to bring the trade turnover between the two countries to $ 10 billion in the next five years.

Today there are more than 1100 Kazakhstani enterprises operating in Uzbekistan, and more than 1400 enterprises with Uzbek capital in Kazakhstan.

The sphere of transport communications is one of the priority areas for the development of the Uzbek–Kazakh partnership. The highways and railways of our countries are mutually integrated. This important communication network also performs a transit function for third States. Among the promising projects in this area, it should be noted the construction of a new corridor on the Uchkuduk – Kyzyl-Orda section.

Other points of growth of bilateral trade and economic cooperation in various sectors of the economy are investments, industrial cooperation, cooperation in the agricultural industry, energy, pharmaceuticals and construction.

To give additional impetus to these efforts, it was decided to create a joint International center for industrial Cooperation.

Interregional contacts are becoming the driver of increasing interaction. Since 2018, a new mechanism of bilateral cooperation has been launched – the Forum of Interregional Cooperation. To date, three such forums have been held, the last of them was held on November 25-26, 2021 in Turkestan (Kazakhstan). The heads of the border regions of the two countries closely cooperate in the issues of mutual supplies of products and the development of new cooperation projects.

Cultural and humanitarian cooperation between Uzbekistan and Kazakhstan is carried out on the basis of the intergovernmental Agreement on deepening cooperation in the fields of culture, health, science, education, tourism and sports dated January 10, 1994. Direct contacts are maintained between scientific and educational institutions of the two countries in the field of exchange of teachers and students, educational and methodological materials. Universities in Uzbekistan have existing cooperation agreements with more than 50 universities in Kazakhstan.

Fruitful cooperation between the Academies of Sciences of the two countries is traditionally carried out at the level of specialized institutes. Representatives of Kazakhstan regularly take part in the international music festival "Shark Taronalari" in Samarkand.

The dialogue of the heads of State invariably emphasizes the commitment to further intensification of cooperation in the fields of science, education, culture, art, tourism, sports and other fields.

It should be noted that today more than 800 thousand Kazakhs live in Uzbekistan, and the Uzbek community in Kazakhstan has about 500 thousand people. They make a significant contribution to the development and prosperity of the two states, as well as the strengthening of friendly and fraternal ties between our peoples. Thus, more than 600 Uzbek citizens of Kazakh nationality and more than 20 citizens of Kazakhstan – Uzbeks were awarded state awards of the two countries.

Since 1992, the Kazakh Cultural Center has been operating in Uzbekistan, which has about 30 regional and regional branches. All conditions have been created for representatives of the Kazakh nationality in our country to preserve their original culture, traditions and language. Thus, 400 schools conduct classes in the Kazakh language, there are 162 schools with only the Kazakh language of instruction. Faculties and departments of Kazakh language and literature have been established at Tashkent State Pedagogical University named after Nizami, Karakalpak State University, Gulistan State University, Nukus, Jizzakh and Navoi State pedagogical institutes to receive higher and professional education in the Kazakh language.

In November 2022, the Days of Culture of Uzbekistan were successfully held in Astana, which once again demonstrated the cultural and spiritual closeness of the two peoples, the fortress of good-neighborly and friendly ties formed by history itself.

On December 19, on the eve of the visit, the exhibition "Abai. Heritage of Fraternal Peoples", dedicated to the life and work of Kazakh writer and thinker Abai Kunanbayev, who preserved the humanistic traditions of the great thinker Alisher Navoi. The opening of the exhibition was a vivid confirmation of the attention paid by the leadership of our country to the preservation and restoration of the Turkic cultural heritage. This event also symbolizes the fortress of friendship between the peoples of our countries.

And today Uzbekistan and Kazakhstan are determined to further strengthen centuries-old friendship, good-neighborliness, mutual trust and full-scale partnership. There is no doubt that the upcoming state visit of President Kassym-Jomart Tokayev to Uzbekistan will enrich the multifaceted cooperation of the two fraternal countries with concrete content and bring bilateral relations to a qualitatively new level.

 

Source: dunyo.info

In November this year, in the regional context, the Jizzakh region showed the highest growth; the number of banking operations increased in 11 regions, and the intensity of raw materials purchases on the commodity exchange increased by 5.8%.

In November 2022, the Business Activity Index (BAI), calculated by the Center for Economic Research and Reforms, amounted to 1,040 points and, compared with the previous month, increased by 4.0%. And there is also a 9% increase in the BAI compared to last year's period.

The following changes were observed in the BAI components

The BAI in November 2022 increased by 4.0% compared to the previous month and amounted to 1,040 points due to changes in the following components:

  • the number of transactions on bank accounts of business entities increased by 7.2%;
  • the component of operating business entities increased by 1.0%;
  • the intensity of the purchase of raw materials on the commodity exchange increased by 5.8%;
  • the component of trademarks decreased by 37.8%.

In the regional context, the Jizzakh region showed the highest growth

In November 2022, the BAI for all regions increased compared to the previous month. Significant growth was observed in the Jizzakh (50.2%), Samarkand (48.2%), Tashkent (40.4%), Surkhandarya (38.9%), Bukhara (37.8%) and Ferghana (34.3%) regions (Fig.2).

TRANSACTIONS WITH BANK ACCOUNTS

The number of interbank payment transactions in November 2022 amounted to 6,125,2 thousand and increased by 411,4 thousand transactions (an increase of 7.2%), compared with October 2022.

The number of banking operations in 11 regions has increased.

In November 2022, the number of banking transactions between legal entities increased in 11 regions compared to the previous month. In particular, the most significant growth was observed in Andijan (27.7%), Samarkand (10.8%), Ferghana (6.7%) regions and Tashkent (8.0%). At the same time, there was a decline in the Jizzakh (-5.7%), Syrdarya (-4.0%) and Kashkadarya (-1.7%) regions.

ACTIVITY ON THE COMMODITY EXCHANGE

In November 2022, the exchange component of the BAI was 1.0584. This means an increase in the component level by 5.8% compared to the previous month, which is due to an increase in the average physical volume of goods purchased in each transaction by 11.5%, as well as an increase in the number of transactions by 0.1%.

At the UzEx, the total turnover in November 2022 amounted to 6,355.2 billion sums, 1.3% less than in the previous month.

ACTIVITY OF ECONOMIC ENTITIES

The component of operating business entities in November 2022 amounted to 1.0103, which means an increase of the component by 1.0% compared to the previous month's level. This indicator also has a positive value in relation to the same period last year, with an increase of 13.1%.

The number of operating business entities in November 2022 increased by 8,144 units compared to the previous month of 2022 (624,907 units) and amounted to 633,051 units.

The number of large enterprises increased by 16 units.

During the reporting period, the number of small enterprises increased from 512,637 to 520,199 units (an increase of 7,562 units). Also, the number of farms increased from 108,633 to 109,199 units (an increase of 566 units). The number of operating large enterprises amounted to 3,653 units, an increase of 16 units compared to November 2022.

BRAND REGISTRATION

In November 2022, the index of protected trademarks was 0.6221, which means a significant decline of 37.8% compared to the previous month. In November of this year, 163 trademarks and trade names were registered by legal entities.

 

Source: review.uz

In January-September 2022, in the Republic of Uzbekistan, foreign investments and loans in fixed assets were disbursed for such activities as manufacturing accounted for a significant share - 46.8% of their total volume, or 33.7 trillion. sum. Also, this indicator of transportation and storage is 4,689.4 billion soums or 6.5%, agriculture - 5,216.0 billion soums or 7.2%, construction - 1,744.1 billion soums or 2.4 % and information and communication - 1,043.5 billion soums 1.4% of the total volume of foreign investments and loans.

 

Source: stat.uz

Information was provided on which areas there are many enterprises with the participation of foreign capital in the Republic.

As of December 1, 2022, the number of enterprises operating in the Republic with the participation of foreign capital was 15,497, of which joint ventures were 6,401 and foreign enterprises were 9,096.

According to the State Statistics Committee, the number of enterprises operating with the participation of foreign capital by industry was recorded in the largest number of sales – 4,700.

This indicators are as follows in the section of the remaining areas:

industry-4 280;
Construction-1 247;
Agriculture, Forestry and Fisheries – 763;
living and eating services-635;
information and communication-718;
transportation and storage-446;
health and social services-229;
others-2 479.

 

Source: kun.uz

Information is given on the number of enterprises with the participation of foreign capital in Uzbekistan.

As of December 1, 2022, the number of enterprises and organizations with the participation of foreign capital operating in the republic was 15,497.

According to the data of the State Statistics Committee, the number of operating enterprises with participation of foreign capital has increased by 2,389 compared to the same period last year.

The number of enterprises operating with the participation of foreign capital in the cross-section of countries:

  • Russia - 3,055;
  • Turkey - 2,171;
  • China - 2,115;
  • Kazakhstan – 1,235;
  • Korea - 919.

The number of newly established enterprises with the participation of foreign capital in November 2022 in the cross-section of countries:

  • Russia - 842;
  • Turkey - 331;
  • China - 245;
  • Kazakhstan - 174.

 

Source: kun.uz

In total, in the Surkhandarya region in January-September 2022, 3359.0 billion soums of foreign investment and loans in fixed assets were disbursed.

Also, as part of foreign investments and loans disbursed into fixed capital, the volume of foreign direct investment amounted to 1448.6 billion soums. In comparison, foreign loans guaranteed by the Republic of Uzbekistan amounted to 453.8 billion soums, and other foreign investments and loans amounted to 1456.6 billion soums. 

 

Source: stat.uz

In total, in the Samarkand region in January-September 2022, 4,598.4 billion soums of foreign investment and loans in fixed assets were disbursed. Also, as part of foreign investments and loans disbursed into fixed capital, the volume of foreign direct investment amounted to 2523.0 billion soums, while foreign loans guaranteed by the Republic of Uzbekistan amounted to 829.4 billion soums and other foreign investments and loans amounted to 1246.0 billion soums.

 

Source: stat.uz

A forum was held at the Chamber of Commerce and Industry of the Japanese city of Osaka, which was attended by the delegation of the Fergana region, the leadership of the Chamber of Commerce and Industry and the Osaka Business Development Agency, as well as more than 40 representatives of Japanese companies and entrepreneurs - compatriots from the Fergana region working in Japan.

The head of the Fergana Regional Department of the Ministry of Investments and Foreign Trade, Ikboljon Ergashev, presented the Fergana region's investment, trade and economic potential to the forum participants. During the presentation, special attention was paid to the growth of investment and export indicators of the region in recent years, including in the areas of industry, agriculture and tourism, as well as promising projects and initiatives proposed for implementation together with Japanese companies.

Chinori Tokia, head of the Masui company, which has been cooperating with Uzbekistan in the textile sector for many years, emphasized the opportunities created for investment and export cooperation between the Fergana region and Japan in the textile sector. He also noted a significant increase in interest in Uzbek textile products in the Japanese market.

In turn, representatives of the Chamber of Commerce and the Osaka Business Development Agency voiced their readiness for mutually beneficial cooperation and shared specific plans to deepen partnerships in the near future.

The meetings organized during the business forum in the "b2b" and "b2g" formats made it possible to work out the financial and technical aspects of creating joint ventures and concluding mutually beneficial trade agreements in detail.

As a result of the visit of the delegation of the Fergana region to Japan, five investment agreements were signed for a total of $81.5 million.

 
 
Source: mift.uz

On December 12-14, 2022, a delegation of Uzbekistan headed by Foreign Minister Vladimir Norov will visit the United States to participate in the second meeting of the Strategic Partnership Dialogue between Uzbekistan and the United States.

According to the Foreign Ministry, Uzbek Foreign Minister Vladimir Norov will meet with Secretary of State Anthony Blinken and talk with other US officials during the visit.

Recall that the first meeting of the Strategic Partnership Dialogue between Uzbekistan and the United States was held on December 13, 2021, in Tashkent.

 

Source: dunyo.info

First Deputy Chairman of the Senate of the Oliy Majlis Sodik Safoev received the Ambassador of Egypt to Uzbekistan Amira Fahmy.

According to the upper house of Parliament, the meeting discussed the current state and prospects of relations between Uzbekistan and Egypt, including issues of deepening inter-parliamentary ties and developing cooperation in education.

During the dialogue, the importance of strengthening friendly relations between the two countries was emphasized, including further intensifying mutually beneficial cooperation in tourism, science, education, culture, and the training of young diplomats.

At the end of the meeting, the parties expressed their readiness to develop further and strengthen multilateral cooperation.

 

Source: dunyo.info

The Special Representative of the President of Uzbekistan for Afghanistan, Ismatulla Irgashev, held talks with US Ambassador Jonathan David Hannick.

According to the Foreign Ministry, during the meeting, the sides discussed the current situation in Afghanistan and prospects for the development of Uzbek-American relations in the Afghan direction.

The Ambassador highly appreciated the policy pursued by the Uzbek leadership to provide humanitarian assistance to the people of Afghanistan and also highlighted the importance of further close bilateral cooperation on the peaceful settlement of the Afghan problem.

The parties agreed on the need to achieve national reconciliation in Afghanistan as soon as possible, as well as to fulfil the obligations assumed by the country's new authorities to the international community.

 

Source: dunyo.info

On December 5, 2022, Minister of Foreign Affairs of the Republic of Uzbekistan Vladimir Norov received Deputy Secretary General of the United Nations, Director General of the UN Office in Geneva Tatiana Valovaya.

During the talks, the state and prospects of cooperation between Uzbekistan and the UN were discussed.

Vladimir Norov stressed that Uzbekistan pays great attention to comprehensive and mutually beneficial cooperation with the UN and its institutions.

It is stated that today our country actively participates in the work of the UN, puts forward important international initiatives to address pressing global and regional issues.

The UN Deputy Secretary-General emphasized the increasing activity of Uzbekistan in the international arena, primarily within the framework of the UN, as well as the broad support of the world community for global and regional initiatives of the country's leadership.

The issues of comprehensive development of relations on topical aspects of the international and regional agenda, ensuring human rights, gender equality, and youth support were discussed at the meeting.

During the negotiations, special attention was paid to ensuring regional security, combating climate change and protecting the environment in the context of mitigating the consequences of the Aral Sea ecological disaster.

 

Source: uzdaily.uz

On December 5 of this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjayev held talks with the new Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Uzbekistan Jonathan Henick. The sides discussed topical issues of bilateral cooperation in investment, trade and economic spheres.

First of all, Jamshid Khodjaev congratulated Jonathan Henik on assuming his new position and wished him success in his professional activities.

During the conversation, an exchange of views took place on the effectiveness of platforms for joint resolution of issues of bilateral cooperation, in particular, the potential of the Strategic Partnership Dialogue was noted, the first meeting within the framework of which was held in December 2021.

They also stressed the commitment of the two countries to continue close cooperation on the regional agenda, including within the framework of the C5+1 initiative, which has become an effective and important tool for strengthening peace, stability and prosperity in Central Asia.

At the same time, the participants of the meeting reviewed the current state of the process of Uzbekistan's accession to the WTO, bearing in mind the reduction in the scale of state participation in the economy, the improvement of customs administration, issues of technical regulation and ensuring intellectual property rights. The American side expressed readiness to continue assisting Uzbekistan in the process of joining the Organization.

The progress of the implementation of previously reached agreements within the framework of Uzbekistan's cooperation with the International Development Finance Corporation (DFC) in the field of energy, transport, education, healthcare, implementation of PPP projects with the involvement of DFC financing was discussed. The parties agreed to consider the possibilities of expanding cooperation in this direction.

Among other topics discussed at the talks were the prospects for partnership in the textile sector. In this context, the prospects of granting preferential trade treatment for the export of Uzbek textile products to the US market were discussed.

Following the conversation, mutual commitment was expressed to continue close cooperation in priority areas of the bilateral agenda.

 

Source: mift.uz

On December 1 of this year, an Uzbek-Russian business forum was organized and held in Samarkand with the participation of the Agency for Attracting Foreign Investment under the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, which was attended by heads of ministries and departments, regions, industry associations and associations, as well as over 500 representatives of leading companies and corporations of the Republic of Uzbekistan and the Russian Federation.

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The Uzbek delegation at the event was headed by Deputy Prime Minister - Minister of Investment and Foreign Trade Jamshid Khodjaev, and the Russian delegation was headed by Minister of Economic Development of the Russian Federation Maxim Reshetnikov.

In their speeches, the heads of delegations stressed the high level of multifaceted cooperation between the two countries, as well as the consistent increase in the number of joint investment projects and the establishment of long-term trade ties.

The positive dynamics of the growth of trade turnover between Uzbekistan and Russia was emphasized. Over the past five years, the trade turnover between the countries has grown by 170%, and by the end of 2021 – by another third, exceeding the figure of 7.5 billion dollars. Both sides expressed interest in bringing the volume of mutual trade to $ 10 billion.

The sides highly appreciated the intensification of investment cooperation and industrial cooperation in recent years. The number of enterprises established in Uzbekistan with the participation of Russian capital has increased 3 times over the past 5 years, exceeding 3 thousand units. Today, Uzbekistan is implementing about two hundred joint projects with Russian companies worth over $ 20 billion in the fields of petrochemistry, energy, mining metallurgy, healthcare and pharmaceuticals, light industry, production of building materials, as well as fruit and vegetable processing.

At the same time, it was announced that the economic potential of the two countries forms prerequisites for further expansion of cooperation in priority areas, including in the chemical and textile industries, agriculture and pharmaceuticals, production of building materials, etc.

The necessity of continuing joint work on the development of interregional cooperation in order to work out new projects of industrial cooperation and trade agreements was noted. In the near future, schedules of mutual visits of the regions for the upcoming 2023 will be approved, and a specific date for the next third Interregional Forum will be agreed.

The Business Forum has become an effective platform for the dialogue of experts. The potential of a number of industries in Uzbekistan and Russia was widely disclosed here, promising investment cases were presented. Within the framework of the event program, several panel sessions were also held, focusing the attention of participants on such priority areas as the joint development of industrial clusters, the formation of industrial cooperation chains, the implementation of large joint investment projects in the fuel and energy sector, industry and transport, increasing export volumes, establishing business contacts between small and medium-sized businesses in the agro-industrial complex, introduction of IT technologies, digitalization of trade and economic relations, development of marketplaces.

The forum also hosted meetings between representatives of the business community of the two countries, during which the parties discussed the possibilities of implementing joint investment projects and concluding mutually beneficial trade agreements.

The exhibition "Made in Uzbekistan" was also organized on the sidelines of the event, which demonstrated the industrial potential of our country in a whole range of industries and directions. The exposition aroused the interest of representatives of Russian business, giving new ground for discussing promising areas for cooperation.

In general, the business forum allowed representatives of the business circles of the two countries to replenish their notebooks with new useful contacts, discuss in detail the technical and financial aspects of new mutually beneficial projects and initiatives, outline points of contact of interests for the long term and in a constructive format revealed new facets of partnership between Uzbekistan and Russia.

With the participation of the Agency for Attracting Foreign Investment under the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, a business forum was organized and held.

 

Source: mift.uz

A video conference was held at the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan under the leadership of First Deputy Minister Nozimjon Kholmurodov, which was attended by heads of industry associations, commercial banks and local authorities.

During the meeting, measures were discussed to use existing opportunities and new reserves for the development of the industrial potential of the regions, problems identified during the study of industrial enterprises in various industries and the formation of regional investment programs for 2023.

The reports of the responsible heads of commercial banks and regions, as well as the heads of republican working groups, including the results of the study of the activities of industrial enterprises in the regions of the country, were heard in a critical manner. The working groups studied the activities of more than 45 thousand industrial enterprises, in 5 thousand of which various problems were identified, for the operational solution of which targeted "Road Maps" were developed. In particular, 1,700 enterprises faced problems in obtaining credit funds, 1,300 – with connection to the appropriate infrastructure communications.

Following the meeting, the relevant managers were given specific instructions for the timely implementation of the Roadmaps and the elaboration of additional promising investment projects based on the potential of each region.

 

Source: mift.uz

The progress of the implementation of joint socially significant projects in the field of healthcare and pharmaceuticals worth more than 500 million dollars was discussed with the delegation of the Eximbank of South Korea at MIFT

According to MIFT, during the negotiations, the progress of the implementation of joint socially significant projects in the field of healthcare and pharmaceuticals worth more than 500 million US dollars, carried out with the support of the Fund, was discussed. Among them are projects for the construction of a National Cancer Center and a multidisciplinary medical clinic for adults and the creation of a pharmaceutical university on the territory of the Tashkent Pharma Park cluster (1st stage).

At the same time, the issue of speeding up the signing of the Protocol of Intent on the implementation of the projects "Creation of a medical university" and "Creation of research and educational components of the innovative research and production pharmaceutical cluster "Tashkent Pharma Park" (2nd stage) was separately considered.

The parties also discussed the possibility of simplifying the procedures preceding the signing of loan agreements and outlined new promising areas of cooperation, including the development of regional road and rail communications and digitalization of the healthcare sector.

Following the meeting, the parties agreed to continue active cooperation for the purpose of high-quality and timely implementation of the discussed initiatives, as well as new projects planned for implementation in 2023-2024.

 

Source: dunyo.info

Representatives of the Ministry of Investment and Foreign Trade (MIFT) of Uzbekistan take part in the plenary session of the Transport Committee of the Economic and Social Commission for Asia and the Pacific (ESCAP), which opened in Bangkok in the form of a videoconference.

According to the MIFT, during the plenary session, delegations from 53 member countries and 9 associate members of ESCAP considered issues of strategic importance for the development of regional transport and the implementation of the Ministerial Declaration on Sustainable Transport Development in the Asia-Pacific region.

Within the framework of the ESCAP Regional Program for 2022-2026, projects for the development of international transport corridors "China - Kyrgyzstan - Uzbekistan", "Mazar-i-Sharif - Kabul - Peshawar", "Uzbekistan - Turkmenistan - Iran - India", as well as initiating projects in Uzbekistan to improve the security of international freight traffic.

Recall that ESCAP is one of the five regional commissions of the UN Economic and Social Council, located in Bangkok (Thailand). It was organized in 1947 to stimulate the economic cooperation of the participating countries.

 

Source: dunyo.uz

On November 22 this year, the Deputy Minister of Investment and Foreign Trade Badriddin Abidov met with the Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great Britain and Northern Ireland to the Republic of Uzbekistan Tim Thorlot.

During the meeting, an exchange of views took place on the current state and prospects for the development of bilateral trade and economic cooperation.

In particular, practical aspects of further cooperation to support the process of Uzbekistan's accession to the WTO, strengthening cooperation within the framework of the enhanced system of preferences Enhanced GSP +, as well as organizational issues of holding the next 26th meeting of the Uzbek-British Council on Trade and Industry, which will be held on November 30, were discussed. this year in Tashkent.

The parties noted the increased interest of the business circles of the two countries to participate in the Council, which has already registered about 200 representatives of leading companies operating in various industries.

The foreign side also expressed readiness to continue providing support to our country as part of the process of Uzbekistan's accession to the WTO by providing consulting and technical assistance.

Following the meeting, the parties agreed to intensify interaction to successfully implement all the discussed projects and initiatives.

about 200 representatives of leading companies operating in various industries have registered.

 

Source: mift.uz

On November 23 this year, Hilton Tashkent City hosted an event to launch the step-by-step trade information platform Uzbekistan Trade Info, developed in cooperation with the Ministry of Investment and Foreign Trade and the State Customs Committee with the UNCTAD/WTO International Trade Center (ITC) as part of the Ready4Trade Central Asia project funded by the European Union.

The event was opened by Deputy Minister of Investments and Foreign Trade Badriddin Abidov.

In his speech, he noted the importance of the consistent efforts of the Government of the Republic of Uzbekistan aimed at supporting business and providing favourable conditions for the development of trade, as well as increasing trade relations with the European Union and world markets.

During the event, the official launch ceremony and presentation of the step-by-step trade information platform Uzbekistan Trade Info, as well as a discussion of the potential of the platform for entering Uzbekistan and Central Asia into international markets, took place.

The online tool will help provide free and permanent access to information related to cross-border trade, reduce time and costs for entrepreneurs, and help remove regulatory and procedural barriers to trade.

The development of the platform was carried out by a team together with government agencies and the private sector to ensure that information is constantly updated and provided in an up-to-date form.

The platform was launched as part of a 4-year "Ready4Trade - Central Asia" project funded by the European Union. A regional project aimed at expanding trade relations supports the development of intra-regional and international trade in the five countries of Central Asia, such as Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

The step-by-step trade information platform Uzbekistan Trade Info will be an effective tool to facilitate cross-border trade, complement existing national online services, and help the private sector of Uzbekistan to use all the opportunities of international trade.

 

Source: mift.uz

At the invitation of French President Emmanuel Macron, President of Uzbekistan Shavkat Mirziyoyev is on an official visit to this country on November 21-22.

During the visit of the President of Uzbekistan, Shavkat Mirziyoyev, to France, it is planned to sign 14 documents on cooperation in the field of education, science, cultural heritage, civil aviation, public service and the fight against corruption.

On the eve of this event, the Center for Economic Research and Reforms (CERR) prepared infographics that present an analysis of the development of Uzbekistan's foreign trade relations with France over five years and the trade potential of the two countries.

In recent years, there has been a consistent strengthening and expansion of Uzbek-French cooperation. The current dynamics positively affect the deepening of trade and economic relations within the framework of cooperation between Uzbekistan and France.

Following the results of the first official visit of the head of Uzbekistan to France in October 2018, 10 documents were signed on road transport, tourism, military-technical cooperation, space exploration, financing of investment projects, culture and other spheres. At the same time, the companies of Uzbekistan and France signed agreements on investment projects worth 5 billion rubles. euro.

Thus, all conditions were created for further effective cooperation.

Uzbekistan's trade with France

Over the past 5 years, the trade turnover between Uzbekistan and France amounted to $1.43 billion. and it grew from $257.2 million in 2017 to $280.8 million in 2021. There was a decrease in exports to $670.9 million. At the same time, the volume of imports increased 2.4 times to $259.9 million, in particular, due to the purchase of aviation equipment, necessary machinery and equipment, pharmaceutical products, medical equipment, etc.

According to estimates, due to Uzbekistan receiving the GSP+ beneficiary status in 2021, there was a moderate increase in exports of fruit and vegetable products, in particular nuts, textile products, carpets, and certain types of electrical products.

Untapped trading potential

Despite a certain imbalance in our trade relations, the trade turnover between Uzbekistan and France has grown by 10% over the past five years. There is significant untapped potential in trade and economic cooperation.

 

Source: review.uz

Today, on November 21, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, as part of his official visit to France, held a meeting in Paris with the heads of leading companies and financial structures of this country.

The event was attended by Philippe Gautier, General Director of the MEDEF French Enterprise Movement, and heads of about 20 largest companies and banks, such as Airbus, Orano, Suez, Alstom, Total Eren, EDF, Schneider Electric, Natixis and others.

Welcoming the participants of the current meeting, President Shavkat Mirziyoyev drew attention to the fact that the first day of the program of his official visit was devoted to the business agenda.

“This once again testifies to the firm commitment of Uzbekistan to expanding economic cooperation with France, our important and reliable partner,” the head of our state said.

It was noted that today wide opportunities for foreign investors had been created in Uzbekistan. The foreign exchange market has been liberalized, all restrictions on the repatriation of profits have been lifted, a program has been launched for the privatization of banks, and large industrial and infrastructure facilities and public-private partnership mechanisms are being actively introduced.

Following the Development Strategy of New Uzbekistan, specific measures are being implemented to stimulate business further and ensure investor rights protection and the inviolability of private property and other areas.

- We strive to ensure that Uzbekistan is associated with a foreign investor, first of all, with stability and predictability, - said Shavkat Mirziyoyev.

It was noted that in the current conditions of instability in the world, the deepening of a multifaceted and constructive partnership based on consideration of each other's interests and mutual trust is particularly important.

In this context, French businesses have huge prospects of entering the Uzbek market. Its attractiveness is also because it is the largest country in Central Asia in terms of population. Uzbek products enter duty-free on the capacious market of the CIS countries.

Readiness was expressed to provide entrepreneurs from France with all the necessary production infrastructure, broad support in benefits and guaranteed purchases, and other assistance measures.

President Shavkat Mirziyoyev identified the most promising areas for long-term and mutually beneficial cooperation, including the creation of joint production of high-value-added goods, green energy, the food industry, the chemical and automotive industries, electrical engineering and electronics, and healthcare.

A detailed exchange of views took place on plans to expand the partnership. In their speeches, French business circle representatives highly appreciated Uzbekistan's economic reforms. We shared our vision of specific projects they intend to implement in our country.

After talking with each member of the French business delegation, the head of our state invited entrepreneurs to visit our country and ensure that Uzbekistan is the best place for investment.

Following the meeting, the responsible leaders from the Uzbek side were instructed to develop and approve the Plan of Practical Measures, including all the voiced initiatives and indicating step-by-step mechanisms, specific deadlines and executors.

 

Source: president.uz 
(Unofficial translation)

Today, on November 21, in Paris, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, as part of an official visit to France, received the Director General of the French Development Agency (AFD) Remy Riou.

Issues of further expansion of cooperation between Uzbekistan and the French Development Agency and filling it with new promising projects were considered.

The high level of interaction achieved recently was noted with satisfaction. The portfolio of joint projects reached 1 billion euros. With the participation of the Agency, important programs for the development of infrastructure, sectors of the economy and the social sphere are being implemented today.

The head of the FAR, noting the impressive results of the ongoing reform program in New Uzbekistan, highly appreciated the current dynamics and potential for interaction.

During the conversation, special attention was paid to the issues of deepening practical partnerships in such priority areas as the introduction of effective public-private partnership mechanisms, primarily in the areas of education, healthcare and infrastructure, expanding support for green economy projects in transport and energy, support for the agro-industrial complex, promotion of projects for training and financing women's and youth entrepreneurship.

The importance of actively using mechanisms for mixed financing of projects, including those involving direct investment by French companies, was emphasized.

The parties agreed to prepare a "road map" for the implementation of all agreements reached.

At the end of the meeting, a signing ceremony was held between the Government of the Republic of Uzbekistan and the French Development Agency for a new Strategic Cooperation Program until 2025 worth over 1 billion euros, which provides for specific joint projects in the field of agriculture, energy, green economy, urban development, water supply, banking and financial sector and transport.

 

Source: president.uz

In January-September 2022, in the structure of foreign investment and loans, the foreign investment amounted to 28.6 trillion. soums or 39.8% of the total, and foreign loans, 43.4 trillion. soums or 60.2 % respectively.

 

Source: stat.uz

On November 17 this year, as part of the Government delegation's visit to France, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held several meetings with the leadership of leading French companies.

The heads of interested ministries and departments of our country also took part in the negotiations to discuss the prospects for companies' participation in joint investment projects.

In particular, during the conversation with the CEO of Alstom, Henri Poupart-Lafarge, the possibilities of implementing the company's solutions in organizing urban public transport were discussed, meaning the modernization of the electric fleet.

For reference: founded in 1928, Alstom is one of the largest machine-building companies in the production of railway transport. The number of personnel is about 74 thousand people. The company also develops solutions for the digital management of transport and passenger traffic. The company's sales in 70 countries in 2021 amounted to 15.5 billion euros.

During the meeting, the parties agreed to continue joint work detailing new project initiatives' technical and economic parameters.

The prospects for the company's participation in implementing several investment projects for the construction of solar and wind power plants in Uzbekistan were discussed with Sebastien Klerk, CEO of Voltaliya.

For reference: Voltalia was founded in 2005. The total capacity of the company's facilities exceeds 1.9 GW, and the portfolio of promising projects is 10.7 GW. The company is represented in 20 countries around the world.

During the dialogue, the company's extensive experience building power generation facilities worldwide while maintaining facilities' reliability and a high level of work quality was emphasized. The company, in turn, expressed interest in opening a representative office and building alternative energy facilities in Uzbekistan.

At a meeting with the CEO of Orano Mining, Nicolas Mays, the parties constructively discussed the current state and prospects for expanding investment cooperation.

The management of Orano, a company specializing in developing and producing equipment for the energy industry, expressed interest in further building up cooperation. In this regard, during a substantive discussion of specific projects, the Uzbek side emphasized its readiness to continue providing full support to investors in implementing joint projects in Uzbekistan.

As a result of the meeting, an agenda was developed for further actions to promote the considered areas of interaction.

 
Source: mift.uz

On November 16-17 this year, Almaty hosted the Economic Forum of the UN Special Program for the Economies of Central Asia (SPECA), convened with the assistance of the UN Economic and Social Commission for Asia and the Pacific, the UN Economic Commission for Europe.

The event, held in a hybrid format, was attended by representatives of the Ministry of Investment and Foreign Trade, other key ministries and departments of Uzbekistan.

The work of the Forum was aimed at developing a strategy for cooperation in such priority areas as economic recovery after the COVID-19 pandemic, economic transformation and sustainable growth in the SPECA region, sustainable energy transition, digital transformation, gender equality, women's empowerment and other areas.

At the high-level plenary session, the Uzbek delegation presented projects implemented in the country under the SPECA program, as well as ongoing reforms in the field of digital transformation of the economy, diversification of foreign trade, development of alternative energy, improvement of the environment, ensuring gender equality, strengthening regional and interregional interconnectedness, development of international transport corridors "China - Kyrgyzstan - Uzbekistan", "Termez - Mazar Sharif - Kabul - Peshawar - Karachi", "Uzbekistan - Turkmenistan - Iran - India".

As a result of the Forum, specific decisions were made to strengthen international cooperation within the framework of the issues discussed.

Note: SPECA is a special UN Program for the countries of Central Asia and the Republic of Azerbaijan.

 

Manba: mift.uz

On November 10 of this year, on the eve of the First Summit of the Organization of Turkic States, the Uzbek-Hungarian business forum was held in Samarkand. It was attended by heads of key ministries and departments, industry associations, and commercial banks of Uzbekistan, as well as representatives of about 200 large Hungarian and Uzbek companies engaged in the fields of ICT, construction, engineering, agriculture, food and light industry, medical and pharmaceutical industries, transport, logistics and other areas.

The opening ceremony of the forum was attended by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan, Jamshid Khodjaev, and the Minister of Foreign Affairs and Foreign Economic Relations of Hungary, Peter Szijjarto.

Emphasizing the high level of trusting relations between the leaders of the two countries as one of the determining factors for the positive dynamics of the development of relations between the two countries, Jamshid Khodjaev outlined the key achievements of Uzbekistan in developing the economy, trade, industry and improving the investment climate. In particular, the improvement of legislation on investor protection, infrastructural development, availability of energy resources, reduced participation of the state in the economy and the launch of privatization processes, the creation of benefits and preferences for both domestic business and foreign investors, free access to the EU markets under the GSP + and markets of the CIS countries, diversification of interregional transport corridors.

The most promising areas for implementing joint investment projects were identified, such as developing alternative energy, mining and deep processing of minerals, agriculture, automotive industry, pharmaceutical production and tourism.

The importance of intensifying business contacts between the two countries was also noted, while readiness to provide comprehensive state support in implementing all joint projects and initiatives was voiced. Representatives of the Hungarian investment and trade circles were assured of the commitment of the government of Uzbekistan to the accelerated development of Uzbek-Hungarian business cooperation.

During the business forum, "G2B" and "B2B" meetings were also organized between the heads of ministries, departments, industry associations and leading companies of Uzbekistan and Hungary, where participants were able to substantively discuss the creation of joint ventures and the conclusion of mutually beneficial trade agreements.

As a result of the event, 8 documents were signed, including several Agreements and agreements on cooperation in the automotive industry, the provision of transport and logistics services, light industry, poultry farming, as well as Memorandums of Understanding in the field of medical and pharmaceutical products, scientific and technical fields and fish farming.

 

Dear participants of the press conference!

Dear Mr. Amreev!

Today, my colleagues and I held the 11th meeting of the Ministers of Economy and Trade of the Organization of Turkic States in Samarkand in a very meaningful and productive way. We discussed all areas of development of multilateral cooperation and identified further steps to accelerate economic cooperation.

We exchanged views on continuing our joint efforts to accelerate the economic development of all participating and observer countries of the Organization through implementing initiatives in the field of trade, investment, transport and, in general, multilateral partnerships.

In particular, to further deepen trade, economic and investment cooperation, we agreed to complete and sign the Agreement on establishing the Investment Fund of the Organization of Turkic States. I believe the creation of the Investment Fund will give a new impetus to developing our multilateral relations.

Also, within the framework of the first summit of the Organization of Turkic States, a “Trade Facilitation Strategy” will be signed, which will help eliminate quantitative and non-tariff restrictions between the countries of the Organization.

Ensuring the stability of trade and economic relations is one of our priority tasks. In this regard, agreements were reached on a unified approach of the UTC member states and observers to ensure the continuous operation of transport corridors, customs-border checkpoints and logistics centres, as well as to develop specific measures to improve the existing conditions further.

The 21st century is the century of innovations and digital technologies! During today's meeting, we agreed to introduce a system for assessing the state of the digital economy and e-government in the sectors of the economy, the social sphere and regions, and also identified the main criteria and steps to coordinate our efforts in this direction.

Part of our conversation with colleagues was devoted to the discussion of the Strategy for 2022-2026 within the framework of the Organization of Turkic States. We agreed on specific measures to ensure the implementation of this document, which covers the development of the political, trade, economic, social, cultural and security spheres.

Dear participants of the press conference!

I want to emphasize our initiatives, which were firmly supported by the distinguished President of the Republic of Uzbekistan, Shavkat Miromonovich Mirziyoyev.

Our country remains a constant and reliable partner of the Organization of Turkic States and is always ready to support and, most importantly, implement joint projects and initiatives of mutual interest.

Taking this opportunity, I would like to wish all the participants of the press conference fruitful work and success in the further development of cooperation between our countries, as well as express gratitude to the representatives of the media and respected journalists.

 

Thank you for your attention!



Source: mift.uz
(non-official translation)

A meeting of delegations headed by the Deputy Prime Minister of the Republic of Uzbekistan - Minister of Energy Zh. Mirzamakhmudov and the President of the China National Chemical Engineering Corporation of the People's Republic of China - Wen Gan took place.

During the negotiations, it was noted that the scale of mutual cooperation between the Republic of Uzbekistan and the People's Republic of China in the field of the chemical and gas chemical industry is significantly increasing from year to year and cooperation with the National Chemical Engineering Corporation (CNCEC) plays a special role.

“For the first time in the last ten years I visited Uzbekistan and I see that Uzbekistan has made significant progress in all areas. I am confident that our cooperation will continue to develop,” said Wen Gang, President of the corporation.

During the dialogue, issues of further development of the chemical and gas chemical industries of the two countries were discussed and subsequent stages in the development of promising areas were noted. During the meeting, the parties signed an Agreement on the further development of strategic cooperation in the chemical and gas chemical industries between the two countries.

At present, China National Chemical Engineering No. 7 Construction Co., Ltd., which is part of CNCEC, implements such projects as the "Organization of the production of ammonia and urea", "Construction of a complex for processing methanol into polypropylene (MTP)", "Construction of a complex for processing methanol into olefins (MTO )”, “Organization of production of polybutylene dipterephthalate (PBAT)”.

The foreign side expressed interest in implementing projects for the construction of treatment facilities and infrastructure, the construction of highways, the development of renewable green energy and the decarbonization of industries.

 

Source: minenergy.uz

On November 1 this year, First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Laziz Kudratov met with the head of the Delegation of the European Union to the Republic of Uzbekistan Charlotte Adrian.

During the meeting, the parties exchanged views on topical issues of preparation for the upcoming EU-Central Asia Connectivity Conference in the city of Samarkand, as well as prospects for further bilateral cooperation within the GSP + system, Uzbekistan's accession to the WTO and accelerating the process of signing the Enhanced Partnership and Cooperation Agreement (SRPS) between the Republic of Uzbekistan and the European Union.

The high level of organization of the visit of the President of the European Council Charles Michel to Uzbekistan and a wide range of agreements reached during the negotiations at the highest level were noted.

The current state and prospects for increasing the volume of bilateral trade are considered. In January-September of this year, mutual trade between Uzbekistan and EU member states increased by almost 15% compared to the same period last year and reached $3.1 billion, which became possible due to Uzbekistan obtaining the status of a GSP+ beneficiary. In this context, the European side expressed gratitude for the comprehensive support within the framework of the first EU monitoring mission to our country.

The course of joint work within the framework of the preparation of the Agreement on Enhanced Partnership and Cooperation was studied. An agreement was reached to intensify the process of consideration of mutual proposals to the text of the Agreement with a view to its speedy conclusion for signing.

Following the meeting, the parties expressed mutual commitment to further expanding cooperation in all discussed areas of bilateral cooperation.

 

Source: mift.uz

On November 1, the President of the Republic of Uzbekistan Shavkat Mirziyoyev received a German delegation led by the Federal Minister for Foreign Affairs Annalena Baerbock, who is in Uzbekistan on an official visit.

During the meeting, the main attention was paid to the issues of further enhancing multifaceted cooperation between Uzbekistan and Germany. The views on the current regional and international agenda were exchanged.

The importance of continuing productive exchanges and consultations at the level of the two countries’ foreign ministries, the effective use of mechanisms to support joint business initiatives and business projects, as well as holding cultural and humanitarian events was noted.

The growth of mutual trade and investment indicators were welcomed. Since the beginning of this year, trade has grown by 45%. At the end of the current year, the volume of attracted investments will amount to up to 1 billion euros. In particular, over 200 leading German companies are successfully operating in Uzbekistan.

In addition, financial and technical cooperation is enhancing, including through the KfW Development Bank and the German Society for International Cooperation.

Foreign Minister Annalena Baerbock emphasized Germany’s commitment to fully support the program of democratic transformations and socio-economic reforms in the New Uzbekistan.

The interest in further development of practical interaction in such priority areas as the green economy, alternative energy, innovations, the use of resource-saving and environmentally friendly technologies, and the introduction of advanced educational methods was noted.

 

Source: president.uz

On October 29 this year, within the framework of the government delegation's visit to Turkey, Deputy Prime Minister - Minister of Investments and Foreign Trade Jamshid Khodjaev held several bilateral meetings and negotiations with foreign colleagues. The focus is on the current state and prospects for the development of cooperation in priority sectors.

During the meeting with the Minister of Trade of the Republic of Turkey Mehmet Mus, the dynamics of growth in the volume of mutual trade were emphasized. Over the past five years, the volume of bilateral trade has doubled and amounted to $3.4 billion in 2021 and $2.4 billion in the first 9 months of this year. The parties agreed to intensify cooperation within the framework of diversifying the structure of the trade.

An exchange of views also took place on issues of cooperation in the field of transport and logistics. The possibility of Turkey joining international agreements on the transit of goods was considered. It was also decided to intensify cooperation on diversifying trade corridors, optimizing and simplifying transit processes, and developing transport infrastructure.

During the negotiations with the Minister of Agriculture and Forestry Vahit Kirishdzhi, the main focus was on the application of Turkish experience in rural development in Uzbekistan, including by supporting business initiatives and allocating grants for the implementation of projects in the field of animal husbandry, poultry farming, milk and meat production in the countryside.

At a meeting with the Minister of Environment, Urban Development and Climate Change Murat Kurum, an agreement was reached on the use of Turkey's experience in Uzbekistan in terms of implementing a social housing construction project, as well as the implementation of joint projects aimed at ensuring public health and increasing employment in the Aral Sea region.

On the same day, with the participation of the President of Turkey Recep Tayyip Erdogan, the opening ceremony of the plant for the production of electric vehicles TOGG was held.

For reference: the TOGG plant is located in the Bursa province of Turkey. 3.7 billion dollars have been invested in its construction, and it is planned to produce 175 thousand per year, and by 2030 - 1 million electric vehicles with bodies such as sedans, hatchbacks, crossovers and others. The company employs more than 800 people. TOGG is also building an infrastructure of more than 600 charging stations in 81 provinces in Turkey.

 

Source: mift.uz

At the Uzsungwoo joint venture in the Fergana region, the only shop in Central Asia for heat treatment of metal with a design cost of $10 million was put into operation.

The opening ceremony was attended by the leadership of the regional department of the Ministry of Investment and Foreign Trade.

The workshop is fully automated, works on the basis of the latest technologies and is equipped with equipment for cutting, hot pressing and laser cutting of metal from such leading manufacturers as Schuler, Prima Power, Benteler, Aotto.

As a result of the launch of the new line, 120 new jobs were created, and the annual production of the enterprise will reach 95 million dollars. The capacity of the cast iron processing line itself is 2.4 million items worth more than $19 million per year.

The new technological process will also make it possible to localize 20 types of components for Tracker and Onix cars produced in our country.

For reference: since its establishment in 2012, Uzsungwoo LLC JV has invested about $60 million in the region. The enterprise, which has a strong position in the automotive industry of Uzbekistan, has been producing more than 300 items of stamped and welded parts for large and medium-sized cars for 10 years. 900 specialists are provided with jobs here.

 

Source: mift.uz

The First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Laziz Kudratov met with the Deputy Minister of Trade of the Republic of Turkey Uzgur Volkan Agar at the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, during which the current state and prospects for the development of trade and economic relations between the two countries were discussed.

In particular, after exchanging views on the positive trend in the growth of bilateral trade, the parties expressed their readiness to take comprehensive measures to expand the range and increase the volume of bilateral trade, including by intensifying the process of ratifying the Preferential Trade Agreement, removing barriers and obstacles in the field of trade, simplification of customs procedures in the implementation of trade operations and the introduction of digital solutions in this area.

As noted, a number of additional bilateral and multilateral measures to develop mutual trade can be taken within the framework of the Summit of the Organization of the Turkic States, which is expected to be held in 2022 in Samarkand, and the 3rd meeting of the Joint Customs Council, which is scheduled to be held in Uzbekistan in the coming months.

The prospects for the implementation of practical measures to develop transport infrastructure, diversify routes and increase the volume of direct and transit cargo transportation between the two states were considered. The parties agreed to strengthen cooperation to support positive dynamics in the transport and logistics sector.

As a result of the meeting, an agreement was reached on strengthening cooperation in order to implement the discussed projects and initiatives.

 

Source: mift.uz

To assess the economic situation in the country, the Center for Economic Research and Reforms conducts a monthly assessment of the state of business activity at the regional and district levels.

Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the Republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UzEX).

The monitoring results showed that the volume of tax revenues of the republic in the period from January 1 to September 30 this year increased by 17.3% compared to the same period last year.

At the same time, a significant increase in tax revenues was recorded in Ferghana (by 39.5%), Samarkand (by 35.4%), Syrdarya (by 33.2%), Khorezm (by 32.7%), Bukhara (by 32.2%) regions, in the Republic of Karakalpakstan (by 33.4%) and in Tashkent (by 42.2%).

The increase in tax revenues as a whole during the period under review was influenced by a number of several growth factors at once.

Thus, budget revenues have increased due to the expansion of the introduction of electronic invoices, online cash registers, the introduction of the procedure for returning 1% of the purchase price to the population as cashback, value added tax (revenue growth in the republic of 32%) and turnover tax (49%).

As a result of the growth of economic activity and an increase in the level of profitability, income from income tax paid by taxpayers increased by 38%.

Receipts on customs payments for the analyzed period increased by 40.3% compared to the same period in 2021. The largest increase in customs receipts was observed in Andijan (by 61.2%), Syrdarya (by 48.0%), Jizzakh (by 45.8%), Khorezm (by 45.1%) regions, in the Republic of Karakalpakstan (by 56.9%) and Tashkent (by 46.5%).

According to the analysis of the CERR, the main factors that influenced the increase in revenue from customs payments were an increase in the volume of imports in January-August 2022 by almost 20% compared to the same period last year.

According to the State Customs Committee, the volume of exports of goods from the beginning of this year to September 30 increased by 25.5% compared to the same period last year. A significant increase in the volume of exports of goods was noted in Samarkand (by 35.5%), Andijan (by 35.3%), Syrdarya (by 31.0%), Kashkadarya (by 29.2%), Namangan (by 29.1%) regions and in Tashkent (by 55.3%).

The increase in Uzbekistan's exports is explained by the growing growth rates of exports of industrial goods, food products, chemicals and agri-food products.

A decrease in exports of goods was observed in Surkhandarya (by 10.0%), Bukhara (by 5.4%) regions and in the Republic of Karakalpakstan (by 10.2%).

The reduction in exports in Surkhandarya region is associated with the reduction in exports of fruit and vegetable products (beans, tomatoes, mash, onions) and yarn, and in the Bukhara region with the direction of cotton fibre to the domestic market. In the Republic of Karakalpakstan with the reduction of exports of plastics, pharmaceutical products (from liquorice root) and yarn.

The volume of loans issued by commercial banks in the period from January 1 to September 30 this year increased by 6.6% compared to the same period last year.

A significant increase in the issuance of loans was noted in Ferghana (by 29.8%), Tashkent (by 24.0%), Samarkand (by 17.7%), Andijan (by 16.1%) regions, the Republic of Karakalpakstan (by 18.3%) and Tashkent (by 11.3%).

The volume of transactions on the UzEX for the analyzed period increased by 41.3%. A significant increase in exchange activity is observed in Khorezm (by 60.5%), Jizzakh (by 58.3%), Navoi (by 46.6%), Samarkand (by 46.1%) regions and in Tashkent (by 53.6%).

The growth in the volume of transactions in these regions is ensured by increasing the sale of such goods as mineral fertilizers, technical seeds, automobile gasoline, diesel fuel, construction and household materials, vegetable oil, wheat flour, wheat, sugar, cotton fibre, rolled ferrous and non-ferrous metals, polyethene, polypropylene, ethyl alcohol, etc.

During the analyzed period, 70,563 new economic entities were created, the largest number of which were registered in Samarkand (8,398), Kashkadarya (6,812), Ferghana (6,720), Tashkent (5,212), Khorezm (4,567) regions and in Tashkent (11,700).

 

Source: review.uz

The World Bank provided a report with recommendations on increasing the inflow of foreign direct investment (FDI) to Uzbekistan and creating new sources of economic growth here.
The report will serve as a basis for further work of interested government bodies to develop a new strategy for attracting foreign direct investment until 2026, as well as their retention in the country, as well as wider distribution across industries and regions.
The impact of the COVID-19 pandemic, climate change, the war in Ukraine and shifts in global production and trade chains have influenced the rethinking of the approaches of multinational corporations in their international investment strategies. Given this context, the WB report offers the government of Uzbekistan a strategic vision and specific targets for attracting FDI (foreign direct investment).
In order to develop a targeted investment promotion program, the report uses a special methodology to identify industries that are most attractive to investors. They fall into two categories:
1) "ready for promotion" to attract FDI
2) "promising" to attract FDI.
In the sectors belonging to the first category, there is a high probability of attracting FDI in the short and medium term (production of electrical equipment, packaging materials, banking and renewable energy sources, etc.).
Industries belonging to the second category require the implementation of additional government policy measures and reforms to fully unlock their potential in order to increase their attractiveness to investors (food industry and production of building materials, etc.).
The report makes recommendations for implementing reforms that will help improve the country's competitiveness in terms of attracting quality foreign investment. These include reforms in the following areas:
- modernization of investment legislation;
- streamlining and modernizing incentives for foreign investors;
- improvement of the investment climate in priority sectors of the economy;
- strengthening the processes and institutions responsible for promoting and realizing investment opportunities;
- using the potential of the process of privatization of state enterprises and public-private partnerships (PPP) in order to attract additional FDI.

 

Source: uznews.uz

The Ministry of Investments and Foreign Trade of the Republic of Uzbekistan has published the Investment Guide Uzbekistan mift.uz. The guide provides the latest information and comprehensive insight on English, Russian and Japanese languages for potential investors and business communities to assist them in making sound investment decisions.

The representative office of the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan in the UAE organized negotiations between the leadership of the Dubai Multi Commodities Centre(DMCC) and representatives of the Uzbek Republican Commodity Exchange (UZEX). Issues of establishing cooperation were discussed, in particular, attracting the best practices of DMCC to improve the efficiency of the UZEX platform, as well as creating the UZEX trading platform in the UAE market. Agreements were reached on organizing a visit of the UZEX delegation to the UAE in the near future in order to start practical steps of cooperation.

 

Source: mift.uz

Following the summit talks held in Budapest, a ceremony of signing bilateral documents was held.

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President Shavkat Mirziyoyev and Prime Minister Viktor Orban signed a Joint Statement on the development of a strategic partnership between the Republic of Uzbekistan and Hungary.

The document emphasizes the friendly, open and constructive spirit of the past negotiations, provides for the intensification of all-around mutually beneficial cooperation, and also marks the 30th anniversary of the establishment of diplomatic relations.

In addition, 14 documents were signed at the level of governments, ministries and departments of the two countries, providing for further building up the Uzbek-Hungarian strategic partnership.

Among them is the Joint Program for the Development of Industrial Cooperation for 2023-2024, the Action Plan for the Development of Cooperation in the Field of Science and Technology, the Action Plan for Expanding Cooperation in the Field of Agriculture, and the Agreement on Cooperation in the Field of Physical Culture and Sports.

Memorandums were also signed on cooperation in the areas of customs, justice, environmental protection, horticulture and greenhouses, viticulture, and investments, as well as on cooperation between the Academy of Public Administration of the Republic of Uzbekistan and the University of Public Administration of Hungary, Samarkand region and Hajdu-Bihar district, Information and analytical centre for international relations and the Institute of Foreign Affairs and Trade, Tashkent State Agrarian University and the Hungarian University of Agriculture and Natural Sciences.

 

Source: president.uz

The President of the Republic of Uzbekistan Shavkat Mirziyoyev completed his two-day official visit to Hungary.

The President of Uzbekistan met with the President of Hungary Katalin Novák. Plans for the implementation of specific investment projects in Uzbekistan were considered by the businesspeople of this country.

Talks were held with Prime Minister Viktor Orban, following which a solid package of documents was signed.

Following the visit, Minister of Economic Development Márton Nagy and other officials saw off the distinguished guest at the Liszt Ferenc International Airport.

 

Source: yuz.uz

Chairperson of the Senate of the Oliy Majlis of the Republic of Uzbekistan Tanzila Narbayeva received US Acting Assistant Secretary for Global Affairs Elizabeth Kennedy Trudeau.

The parties discussed the current state and prospects of cooperation between Uzbekistan and the United States, including issues of enhancing inter-parliamentary interaction.

Views were exchanged on the development of political, trade, economic, social, cultural and humanitarian cooperation, including women’s entrepreneurship, strengthening the role of women in society, and ensuring gender equality.

Issues of development of trade and economic relations, the intensification of regular political contacts between the governments of the two countries, the establishment of close ties with local authorities, and mutual visits of heads of individual industries were considered.

 

Source: uzdaily.uz

On October 3 this year, on the eve of the visit of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to Hungary, the Uzbek-Hungarian business forum was held in Budapest, in which representatives of the business circles of the two countries took part.

The work of the forum is aimed at comprehensively strengthening ties between the business community of Uzbekistan and Hungary, as a fundamental condition for the further development of investment and trade and economic cooperation.

The opening ceremony of the forum was attended by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev and the Minister of Foreign Affairs and Foreign Economic Relations of Hungary Peter Szijjarto.

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Opening the event, Peter Szijjarto noted the positive dynamics in the development of relations between the two states and the Hungarian government's support for initiatives to consistently expand economic partnerships in priority areas for both countries, and also called on Hungarian business representatives to establish and strengthen cooperation with Uzbek entrepreneurs.

The Uzbek side emphasized the favourable conditions created in the country for doing business, including a visa-free regime, the liberalization of foreign exchange policy, the adoption of a new Development Strategy aimed at further stimulating entrepreneurial activity, ensuring the protection of investor rights, and the inviolability of private property.

Readiness was expressed to support Hungarian entrepreneurs in every possible way. In this regard, such specific measures were noted as the allocation of a separate industrial zone in Uzbekistan for Hungarian companies, the provision of exclusive preferences and guaranteed purchase of products, as well as the joint implementation of promising ideas, including through the funds of the created joint fund for financing priority projects.

During the Forum, Hungarian companies were provided with detailed information on investment opportunities, including in the fields of pharmaceuticals, and agriculture, as well as electronics and electrical engineering, textile, automotive, chemical and construction industries.

Of great interest to Hungarian manufacturers were the prospects for building effective chains of industrial cooperation with preferential access to the CIS and EU markets thanks to the status of GSP+ beneficiary received by Uzbekistan in April last year.

During the business forum, "G2B" and "B2B" meetings were also organized between the heads of ministries, departments, industry associations, banks and leading companies of Uzbekistan and Hungary, during which the participants were able to work out in detail the aspects of creating joint ventures and concluding mutually beneficial trade agreements.

As a result of the Forum, a number of bilateral documents, investment agreements and export contracts were signed, opening up new prospects for the development of economic and investment cooperation between Uzbekistan and Hungary.

 

Source: mift.uz

On October 3, President Shavkat Mirziyoyev arrived on an official visit to Budapest.

Hungary is a strategic partner of Uzbekistan. The visit is expected to start a new stage in the history of bilateral cooperation, which will be celebrating its 30th anniversary this year.

At the modern stage, cooperation between two countries is steadily developing. This is supported by high-level political dialogues established in recent years. It is known that the President of Uzbekistan Shavkat Mirziyoyev met with the Prime Minister of Hungary Viktor Orban at the meeting of the Cooperation Council of Turkic-speaking countries held in Baku (Azerbaijan) in October 2019.

On March 29-30, 2021, Hungarian Prime Minister Viktor Orbán came to Uzbekistan on an official visit, and as a result of his visit, more than 10 bilateral documents were signed.

According to experts, the high-level Uzbek-Hungarian summit in Tashkent has become a historical event with its importance and successful results. The talks between the leaders of the two countries brought the comprehensive interstate dialogue to a qualitatively new level. A Joint declaration on strategic partnership was signed. In this way, Hungary became the first country of the European Union to bring cooperation with Uzbekistan to the highest political level.

During the visit to Uzbekistan, the Hungarian Prime Minister was accompanied by representatives of more than 30 large national companies. They participated in the first meeting of the Joint Business Council and held bilateral talks. The agreements gave a new impetus to bilateral relations. The signed documents defined plans for interregional cooperation, personnel training in the field of peaceful use of nuclear energy, innovative development, and cooperation in irrigation and water management.

Also, during regular phone conversations between the leaders of the two countries, the issues of further strengthening of strategic partnership relations, the progress of the implementation of the agreements and the cooperation projects are discussed, as well as exchange views on current international and regional problems.

High-level contacts have become significantly active, and inter-parliamentary relations are steadily developing. Friendship groups operate in the representative bodies of the two countries.

Constructive cooperation between the foreign ministries of the two countries is developing actively. To date, four rounds of inter-ministerial political consultations have been held. Since 2016, the Hungarian embassy has been operating in Tashkent, and the diplomatic mission of our country in Vienna is concurrently accredited to Hungary.

The Minister of Foreign Affairs and Trade of Hungary Peter Siyyarto visited Uzbekistan several times and was received by the President of our country, as well as participated in important bilateral and multilateral events.

In September 2022, within the framework of the 77th session of the UN General Assembly, a meeting was held between the Minister of Foreign Affairs of Uzbekistan Vladimir Norov and the Minister of Foreign Affairs and Trade of Hungary Peter Siyyarto. During the dialogue, the parties confirmed their commitment to the implementation of the decisions by the leaders of Uzbekistan and Hungary.

At this point, it is appropriate to note that Uzbekistan and Hungary are successfully cooperating within the UN, OSCE, Organization of the Turkic States and other international institutions. The points of view of the two countries on current issues of the global agenda are close or coincide with each other, and the parties mutually support each other in promoting international initiatives.

Cooperation in trade, economy and investment is also developing rapidly. The most favourable trade regime has been established for trade between the two countries. Over the past 4 years, the volume of Uzbekistan-Hungary trade has increased by 2.5 times. Even in 2020-2021, despite the negative consequences of the pandemic, there was an increase in this regard. Thus, by the end of 2021, the trade turnover has exceeded $114 million, and during the six months of this year, it was almost $50 million.

10 enterprises established with the participation of Hungarian investors are operating in Uzbekistan, while six of them are joint ventures and four are sole proprietorships.

The Uzbekistan-Hungary Intergovernmental Commission on Economic Cooperation has been operating since 2013. Its 7th meeting was held in Tashkent on May 3-4, 2022. During the meeting, issues of further development of cooperation in investment, industry, trade-economic, banking-finance, and cultural-humanitarian spheres were discussed and agreed upon.

The desire of both countries to consistently expand the scope of mutually beneficial cooperation in areas of common interest remains unchanged. Uzbekistan and Hungary have a significant potential to diversify markets and trade flows and increase the volume of supply of chemical, food, engineering, pharmaceutical and textile industry products. The parties are ready to strengthen mutual partnership in the fields of investment, trade, tourism, financial-technical, cultural-humanitarian and interregional dialogue.

It should also be noted that Hungary is interested in expanding the scope of business activities in Uzbekistan. The country also highly assesses the significant industrial potential of Uzbekistan's economy. To date, preliminary agreements have been reached on the creation of high-tech industries which will allow to manufacture products with high added value and export them to the markets of third countries in the future.

Scientific-educational, cultural-humanitarian exchanges between Uzbekistan and Hungary are expanding. Scientists of the two countries have many years of experience in scientific and technical cooperation in the fields of materials science, microelectronics, instrument engineering, medicine, pharmacology, mechanical engineering, and the production and processing of agricultural products.

In the regional museum of local history in Bukhara, a memorial plaque was installed in honour of Arminy Vambery, a famous Hungarian orientalist and traveller of the 19th century. Arminy Vamberi travelled to Central Asia in 1863 and visited Khiva Khanate, Bukhara Emirate, and Samarkand. Based on the results of his travels, he wrote the books "History of Bukhara or Transoxania from ancient times to the present day" and "Travel across Central Asia".

Since 2018, Hungary has been annually providing scholarships to citizens of Uzbekistan to study at universities in this country. Since 2021, the number of these scholarships has reached 150. Mutual cooperation between universities is implemented within the framework of "Erasmus" projects.

The issue of establishing cooperation between the Tashkent Medical Training Institute and Semmelweis Budapest Medical University is being discussed. Fraternal relations were established between the cities of Tashkent and Budapest, Fergana region and Dabash city. Practical cooperation has been established between the administration of the Surkhandarya region and the mayor's office of Peshtin region.

An agreement on cooperation in the field of tourism was signed within the framework of the meeting of the Intergovernmental Joint Commission held in 2022. The agreement is encouraged to create favourable conditions for strengthening mutual tourist flows. It should also be noted that since February 2018, a simplified visa regime for Hungarian citizens has been in force in Uzbekistan.

In short, Uzbekistan and Hungary are striving to further expand the scope of cooperation. The significant potential of the two countries, a common interest in its implementation, deep historical roots and sincere friendly relations between the Uzbek and Hungarian people are creating a good basis for further development of the strategic partnership.

 

Source: dunyo.info

As part of a working visit to South Korea by a delegation of Uzbekistan, consisting of employees of the Vatandoshlar Public Foundation and the Agency for External Labor Migration, a meeting was organized with the head of the Chungcheongbuk-do province.

Issues of cooperation in the fields of economy, innovation and tourism were discussed at the meeting. Relations on labour migration were also studied, particularly the prospects for attracting citizens of Uzbekistan to seasonal agricultural work.

Representatives of the province of Chungcheongbuk-do expressed interest in establishing cooperation to attract citizens of Uzbekistan to temporary work. 

As a result of the meeting, an agreement was reached on developing cooperation with Chungcheongbukto province in mutually beneficial areas, organizing meetings and visits between relevant organizations of the two states, and hiring citizens of Uzbekistan in various fields.

 

Source: dunyo.info

On September 30 this year, as part of the visit of the government delegation of the Republic of Uzbekistan to Hungary, Deputy Prime Minister - Minister of Investments and Foreign Trade Jamshid Khodjaev held talks with the First Deputy Minister of Foreign Affairs and Foreign Economic Relations of Hungary Levente Magyar.

During the meeting, the prospects for the development of multifaceted Uzbek-Hungarian cooperation in trade, economic, investment, scientific, technical and innovation areas were discussed.

In particular, the parties worked out in detail the economic agenda for the short and medium term, including the development of new high-margin investment projects and trade agreements in such areas as agriculture, water-saving technologies, the food industry, pharmaceuticals, electronics, automotive, textile, chemical and metallurgical industry, as well as science, innovation and education.

Issues of developing industrial cooperation, transport and logistics, interregional cooperation, as well as prospects for the participation of Hungarian investment circles in the process of transformation and privatization of state enterprises and assets of Uzbekistan were discussed separately.

At the end of the meeting, an agreement was reached to support direct contacts and further strengthen interaction in all areas of multifaceted partnership.

On the same day, the Deputy Prime Minister - Minister of Investments and Foreign Trade of Uzbekistan Jamshid Khodjaev held talks with the leadership of leading Hungarian companies and banks, such as Wizz Air, MasterGood, KITE, Eximbank, Rába, at which the prospects for establishing partnerships and implementing joint investment projects were discussed.

 
 

Deputy Foreign Minister of Uzbekistan Furkat Sidikov today met with Israeli Ambassador Ziavet Ben Hillel.

According to the Foreign Ministry, during the conversation, the state and prospects for the development of Uzbek-Israeli relations, primarily in the trade, economic, investment and humanitarian spheres, were discussed.

The parties also exchanged views on some issues of regional and international issues.

 

Source: dunyo.info

For the first time since 2011, the U.S. Department of Labor (TDA) has ranked Uzbekistan in the best category of “significant progress” in terms of the effectiveness of efforts to eliminate the worst forms of child labour.

It is emphasized that this became possible due to the effective state policy in the fight against forced and child labour, as well as the tightening of criminal liability in this area in full compliance with international standards.

“Uzbekistan is truly becoming a model country that can achieve impressive progress in a short period of time,” said Marcia Eugenio, head of the U.S. Department of Labor’s Office of Child and Forced Labor.

In addition, given the achievements of Uzbekistan, the US Department of Labor announced the exclusion of cotton produced in the country from the so-called. "List of goods produced with the use of child and forced labour." This decision cancels formal restrictions on the import of cotton produced in Uzbekistan and products from it into the United States, thereby opening up new opportunities for the export of textile products.

 

Source: nigoh

By the decision of Shavkat Mirziyoyev:

➖khokim of Asaka region M. Alikhanov and khokim of Ferghana region Sh. Muminov (for non-compliance with legal acts on regulation of land relations and other gross violations of the law in their activities);

➖khokim of Pakhtaabad district E.Usmanov, khokim of Nurabad district Sh.Yuldashev (for non-compliance with the rules of leadership ethics, evasion of the authority of the service and committing other offences);

➖Director of the agency "Uzbekchorvanasl" B.Atamuradov (for inappropriate behaviour in a hotel during a business trip to the Namangan region and other shortcomings in work);

➖Khokim of Andijan region A. Egamberdiev was relieved of his post (for actions that do not correspond to the ethics of a civil servant, do not support the culture of leadership, disrespectful attitude towards citizens at receptions and other shortcomings in work).

A disciplinary measure was applied to the khokim of Surkhandarya region T. Bobolov for not organizing his activities in accordance with state policy and ongoing reforms, for insulting the meeting participants without meeting the requirements for khokims, which caused public discontent

 

Source: nigoh

On September 27 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev received a delegation from the European Bank for Reconstruction and Development headed by EBRD Vice President Jurgen Rigterink.

The meeting was also attended by EBRD Secretary General Koguchi Kazuhiko, EBRD Managing Director for Central Asia and Mongolia Zhuzhanna Hargitai and the leadership of the EBRD Office in Uzbekistan.

During the conversation, the current state and prospects for deepening cooperation between the financial institution and Uzbekistan in priority areas were discussed.

In particular, it was noted that Uzbekistan over the past two years has become the largest recipient of EBRD funds in the region and the 5th largest direction of EBRD investments in 2021. The parties also noted with satisfaction the compliance of the current EBRD country strategy for 2018-2023 with the New Uzbekistan Development Strategy for 2022-2026. We are talking about such areas as supporting the development of the private sector, expanding regional and international cooperation and integration, as well as promoting environmentally friendly energy and resource solutions.

The progress of investment cooperation was considered: from 2018 to the present, the EBRD has been implementing 13 projects in Uzbekistan in the areas of development of the energy sector, water supply and solid waste disposal. In addition, the portfolio of investment projects under development consists of 8 projects worth more than $924 million. The parties outlined the format for further interaction on the accelerated promotion of current and new project initiatives.

The prospects for EBRD support for such priority economic and structural reforms in Uzbekistan as the privatization of state-owned enterprises and the development of the capital market were discussed. Opening the topic, the bank's management highly appreciated the consistency and timeliness of the structural reforms being carried out in the country, expressing readiness to strengthen cooperation in the framework of their implementation.

The parties also considered the preparation of international events at a high organizational level, including the Annual Meeting of the EBRD Board of Governors in Samarkand in 2023. An agreement was reached to continue close interaction with the technical mission of the EBRD, with the aim of holding events at the highest organizational and substantive level.

As a result of the meeting, further actions were identified to promote joint programs and initiatives considered during the negotiations.

 

Source: mift.uz

On September 26 this year, an open dialogue was held at the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade Jamshid Khodjaev with manufacturers and exporters of the country's textile and clothing products.

For reference: During 2017 - 2022. 340 projects worth $2.9 billion were implemented in the industry, facilities for the full cycle of processing cotton fibre were created, as a result of which production volumes increased 5 times to 64 trillion soums, export indicators increased 4 times to $2.9 billion, geography exports amounted to 66 countries, and the total number of jobs in the industry increased from 124 thousand to 378 thousand people.

At the meeting, which was attended by representatives of more than a hundred enterprises, the existing systemic problems that hinder the further development of the textile and clothing and knitwear industry, as well as private issues that entrepreneurs face in their activities, were discussed in detail.

In particular, problems related to the supply of raw materials, an increase in export volumes, the introduction of international standards into production, and constructive proposals were developed to eliminate them.

Responsible managers were instructed to take immediate measures to provide comprehensive support in resolving issues of entrepreneurs and developing centralized measures to systematically improve the situation in the industry.

At the end of the dialogue, a question and answer session was held, during which entrepreneurs received detailed information on all issues of interest to them.

 

Source: mift.uz

The Agency for International Cooperation and Development under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, together with the Asian Development Bank (ADB) and the World Bank, held meetings on the analysis of the implementation of current projects implemented in Uzbekistan with the involvement of funds from international financial institutions.

Thus, during a meeting with the ADB, held via videoconference, it was noted that the current portfolio of the Bank in Uzbekistan consists of 21 projects totalling $3.3 billion, implemented in such socially significant areas as the improvement of settlements and infrastructure development, expanding access of the population to clean drinking water, healthcare and other areas. The progress of the implementation of each project is considered, including from the standpoint of the execution of network schedules at each stage of implementation.

In a similar constructive spirit, negotiations were held with representatives of the World Bank (WB). During a personal meeting, the parties analyzed the projects implemented in the country with the assistance of the World Bank. Recall that the Bank finances 28 projects in Uzbekistan for a total of $4.9 billion in priority areas such as agriculture and water management, transport, energy, urbanization, education and healthcare.

During the meeting, a number of constructive proposals were put forward to improve project management processes, including the purchase of equipment and materials, as well as the further development of professional skills and knowledge of employees of ministries and departments responsible for their implementation.

As a result of the meetings, the relevant Roadmaps were approved, which reflected the specific deadlines for the implementation of projects and identified the responsible heads of ministries and departments who received targeted instructions to ensure the development of funds allocated by financial institutions and the timely commissioning of projects.

 

Source: mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of Uzbekistan Jamshid Khodjaev received the leadership of International Development Ireland (IDI, Ireland).

According to the Ministry of Investments and Foreign Trade (MIFT), a group of experts over the past year has been working to develop the investment potential of the Bukhara and Khorezm regions.

Representatives of the company presented reports on the work done on the first block under the contract concluded between the Center for the Development of Investment Projects at the MIFT and IDI. In particular, it was noted that the company has developed comprehensive Strategies for the development of the investment potential of Bukhara and Khorezm regions, and completed training on a professional development program to attract foreign direct investment in a full-time and online format for the leadership and employees of the ministry and organizations responsible for attracting investments. Experts from the Investment Promotion Agency of Ireland took part in the classes.

With the assistance of the khokimiyats of Bukhara and Khorezm regions, the company's specialists also opened regional IDI offices and completed an assessment of investment opportunities for 25 companies in both regions. 620 investors were informed about the existing regional opportunities, and 16 of them showed interest and started negotiations on the implementation of mutually beneficial investment projects. We are talking about the areas of medical and hotel services, food production, animal husbandry, production and sale of finished textile products, building materials, and medical products.

Following the meeting, representatives of the company expressed their readiness to continue their activities in Uzbekistan. IDI will develop and present a concept for further activities, including the direction of transforming and improving the efficiency of the ministry's territorial structures, which will be considered during subsequent negotiations.

 

Source: dunyo.info

On September 26 this year, negotiations were held in an expanded format between the delegations of Uzbekistan, headed by Deputy Prime Minister - Minister of Investment and Foreign Trade Jamshid Khodjaev and Kazakhstan, led by Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin. The meeting was also attended by responsible heads of relevant ministries and departments, and industry associations of the two countries.

During the conversation, the current plan of bilateral cooperation were discussed, as well as concrete further steps to expand it. The parties noted the existence of real opportunities for the breakthrough development of multifaceted bilateral cooperation, and also expressed their readiness to take all measures to use them.

In particular, questions about the development of industrial cooperation are considered. An agreement was reached as soon as possible to develop the design and estimate documentation for the organization of the external
and internal infrastructure of the International Center for Industrial Cooperation (ICPC), as well as the corresponding Intergovernmental Agreement on regulating the activities of the ICPC.

At the same time, the parties considered the possibility of implementing joint projects in the automotive industry, the production of phosphate and complex mineral fertilizers, and the electrical industry in the territories of the two states.

Issues of building up cooperation in the field of pharmaceutical production and agriculture were discussed. The parties agreed to simplify the registration of medicines and organize joint production of agricultural products with the conclusion of forwarding contracts for their supply.

The prospects for developing transport and logistics cooperation are analyzed, bearing in mind the diversification of rail and road routes and an increase in the number of flights between the two countries.

The issues of organizing the next 20th meeting of the Joint Intergovernmental Commission on Bilateral Cooperation between Uzbekistan and Kazakhstan and the 4th Joint Interregional Forum within its framework in Tashkent were also considered.

Following the talks, the parties expressed their mutual commitment to continue close joint work in all the discussed areas of cooperation.

 

Source: mift.uz

As part of Milan Fashion Week, another international exhibition of leather, accessories, components, and fabrics - Lineapelle - has started its work. The exhibition brings together more than 26,000 visitors from the world of fashion and the leather industry. More than 10,000 of them are representatives of foreign companies, buyers and retailers from more than 114 countries of the world.

Tannery enterprises, members of the Uzcharmsanoat Association, presented domestically produced leather at a collective stand with an area of ​​48 square meters.

On the first day of the exhibition, negotiations were held with representatives of the Italo-Uzbek trading house. The main topic of discussion is the sale of leather and footwear from Uzbekistan in the Italian market. Also, the Italian company Tecon, along with the technological renewal of the production processes of Uzbek enterprises, expressed interest in purchasing finished products.
Promising areas of cooperation will be discussed in detail at the 13th international exhibition UzCharmExpo-2022 in Tashkent, contracts are expected to be signed.

As part of the Italian exhibition, Uzbek enterprises will sign 15 investment and export contracts with foreign companies.

 

Source: uzcharm.uz

In January-August 2022, the foreign trade turnover of the Republic of Uzbekistan amounted to 32.1 billion US dollars.

This is almost $7 billion more than in the same period last year.

Foreign trade turnover 32.1 billion US dollars

Export - 12.7 billion.

         Goods -10.3 billion

            Services - 2.4 billion

Import - 19.4 billion.

            Goods - 17.8 billion

            Services - 1.6 billion

 

Source: stat.uz

On September 21 this year, under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev, a meeting was held with entrepreneurs providing services in the field of transport and logistics. The focus was on further increasing the volume of international traffic and diversifying transport corridors.

The meeting was attended by heads of ministries and departments, industry associations, and commercial banks, as well as more than 50 heads of large freight forwarding companies, manufacturers and exporters.

During the dialogue, issues and proposals related to the transportation of export products to international markets, particularly the problems facing air carriers, railway and road transport companies, were comprehensively considered.

The consistent growth of the country's production and export potential, which became possible due to the attraction of foreign direct investment in the economy, was emphasized. In 2026, the volume of gross domestic product is planned at the level of 100 billion dollars, and the volume of exports is 30 billion dollars. In this context, the issues and obstacles that arise during export-import operations are analyzed. The heads of relevant ministries and departments reported on the measures taken to solve emerging problems and level their consequences.

Based on the analysis of the voiced questions and proposals, it was instructed to form a working group consisting of the heads of relevant ministries and departments to develop a set of targeted measures to ensure the stability of export supplies by domestic producers.

 

Source: mift.uz

On September 20, a meeting of the leadership of the Government Commission on Foreign Trade, Investments, Development of Local Industry and Technical Regulation with entrepreneurs was organized in Termez.

Each of the more than 100 business people invited to the dialogue voiced their case, which was considered in detail by the members of the Commission. The range of issues mainly consisted of problems related to financial support for initiators of investment projects and exporters from commercial banks, obtaining land plots, empty buildings and structures, promoting domestic products in foreign markets, obtaining various certificates and permits necessary for production activities, connecting to engineering and communication networks, as well as other topical issues.

Each problem was studied and analyzed with the involvement of the heads of relevant ministries, departments and local authorities of districts and cities of the region. Mechanisms for the practical solution of issues were developed and targeted instructions were given to the relevant managers, indicating clear deadlines for implementation.

In addition, entrepreneurs had the opportunity to voice existing proposals to improve the investment and business climate and support the development of entrepreneurship in the country.

In turn, the heads of ministries, departments, commercial banks and local authorities were instructed to take the most active measures for constant, systematic interaction with the business community, promptly resolve all emerging issues and effectively respond to incoming requests.

 

Source: mift.uz

President Shavkat Mirziyoyev held a meeting on September 20 to further accelerate reforms and ensure their effectiveness.

As you know, recent years have been a period of fundamental transformations in our country. Priority problems were solved in many areas.

In particular, free conversion of foreign currency was established. The tax system has been reformed and the number of taxes has been reduced. Opportunities for entrepreneurship have been expanded, customs procedures have been simplified, and information technologies are being introduced in all areas.

In agriculture, the transition to market mechanisms has been completed. An end was put to forced and child labour.

New systems of regional development and solution to social issues have also been introduced. Measures are being taken to improve the quality of education and medicine. In general, today reforms are carried out in more than 100 areas and directions.

Today, given the rapidly changing political and economic situation in the world, it is necessary to implement the next stage of reforms in order to continue stable growth and further improve the living standards of the population. The most important thing is that these reforms be carried out in a logical sequence and systematically, without haste, as was noted at the meeting.

To this end, by decree of the head of our state dated September 9, the Agency for Strategic Reforms under the President of the Republic of Uzbekistan was established.

At the meeting, issues of organizing the activities of this agency were discussed and priority areas of its work were identified.

- As a result of the reforms, there should be positive changes that people should feel in their lives. To do this, the agency should become a structure that determines priority reforms, coordinates and ensures their effectiveness, the President said.

The meeting outlined the main tasks in this direction. Among them is the development of proposals for reforming individual industries and areas, determining the priority and logical sequence of reforms, monitoring the implementation of government programs, identifying systemic problems and taking appropriate measures.

For example, the analysis shows that the goals set earlier in such areas as agriculture and water management, land relations, reducing the presence of the state in the economy, in transport, utilities, and healthcare have not been fully achieved. The Agency for Strategic Reforms will critically analyze such problems and identify concrete measures to accelerate work.

Equally important is the identification of priority sectors of the economy in terms of increasing the number of jobs and increasing the income of the population.

In this regard, the head of our state gave instructions to develop a "road map" for reforms that will have a positive effect on all segments of the population. He stressed that it is necessary to pay attention to those areas that receive the most requests from citizens, specifically indicating what results will be achieved and how this will affect the life of the people.

The task was set to form Project Groups for the reform and coordination of priority areas, consisting of qualified specialists from ministries and departments, and international experts.

 

Source: president.uz

On September 19 this year, the Government Commission on Foreign Trade, Investments, Development of Local Industry and Technical Regulation under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev and consisting of the heads of ministries, departments and commercial banks left for the Surkhandarya region in order to study the current state of the socio-economic development of the region, developing effective measures to further strengthen the investment, industrial and export potential, as well as providing support to entrepreneurs in the region in solving urgent problems that they face in the course of their activities.

The first address to get acquainted with the opportunities was Termez National Carpets LLC, which specializes in the production of carpet products. The cost of the project launched this year is 236 billion soums. Equipment from Germany, Belgium and Turkey is installed in the production. The production capacity of the plant, which employs about 250 specialists, today is 4.5 million square meters of products per year.

Another major investment project on the route is Termez-Agro-Impeks LLC, worth $2.2 million. The enterprise produces 300 tons of agricultural products per year, 80% of which are exported. Here 45 people are provided with work, and the company owns refrigerated storage rooms.

Furthermore, the Government Commission studied the progress of work on the creation of a free trade zone "Termez International Trade Center". The total cost of the project, on which buildings of transport and logistics, service, social services, shopping centres and production facilities are being built, is 750 billion soums. The launch of the facility is expected to take place in December of this year, with the employment of 6,000 individuals, 3,500 of which are women and youth.

During the dialogues on the ground, entrepreneurs shared their problems and proposals for improving the investment attractiveness of the republic. Responsible leaders were given targeted instructions to take measures to resolve all the issues raised and develop constructive proposals in the preparation of comprehensive decisions at the republican level.

The government commission continues its work in the region.

 

Source: mift.uz

On September 19 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev met via videoconference with ADB Vice President for Administration and Corporate Governance Bruce Gosper.

During the conversation, the current state and prospects for expanding bilateral cooperation between Uzbekistan and ADB were discussed.

At the meeting, the leadership of the ADB emphasized the wide opportunities for expanding the attraction of private and foreign investment in various sectors of the economy of Uzbekistan. It was announced that the current portfolio consists of 24 projects in the field of infrastructure construction, energy, housing and communal services, healthcare, and agriculture in the amount of $3.7 billion. As part of the business plan for ADB country operations for 2022-2024, an agreement was reached on the joint implementation of 27 projects worth $2.8 billion. This year, an agreement was signed on 1 investment project worth $274 million and negotiations were completed on 2 projects aimed at developing the mortgage market sector and supporting the budget for a total of $650 million.

Following the meeting, the parties expressed mutual commitment to the consistent continuation of cooperation within the framework of existing and new areas of interaction.

 

Source: mift.uz

In January-June 2022, investments in fixed assets financed from the own funds of enterprises and organizations in the Navoi region amounted to 3292.5 billion soums, or 41.0% of the total investment in fixed assets. 8.4% of the total investment in fixed capital, or 676.4 billion soums, was disbursed at the expense of the population.

 The volume of investments mastered through foreign direct investment amounted to 865.4 billion soums and amounted to 49.6% of the total investment in fixed assets mastered in this territory.

 

Source: stat.uz

On September 19, a videoconference was held under the chairmanship of President Shavkat Mirziyoyev on measures to further increase the potential of domestic and inbound tourism.

Diversification is the key to economic stability. Therefore, large-scale work is being carried out in our country on the structural transformation of the economy. In particular, the tourism industry has been identified as one of the drivers, and the necessary conditions are being created for its development.

For example, the issuance of visas to tourists was simplified, queues and unnecessary checks at airports were eliminated, green corridors were created, and currency exchange was liberalized. The rates of social tax and turnover tax for tourism enterprises are set at 1 percent, and the rates of land tax and property tax are reduced by 90 percent. The number of placements increased 3 times compared to 2017 and reached 125,000. There was a possibility of electronic registration of guests.

This year, tourism is recovering from the pandemic. By September of this year, the number of foreign tourists who came to our country had tripled compared to 2021. Since the beginning of the year, the volume of tourist exports amounted to 926 million dollars. The length of stay of foreign tourists has increased to an average of 4-5 days, and their spending - up to $305.

The number of domestic tourists also increased - 3.5 times compared to last year - and reached 7.5 million people.

It is not for nothing that the President pays special attention to this direction. Because 30 percent of the industry's income goes to people in the form of wages. In industry or other sectors, this figure does not exceed 10 percent. One job created in tourism creates two additional jobs in related industries. That is, tourism is an important resource for providing employment, increasing income and exporting services.

The meeting analyzed the state of tourism in the regions. Huge opportunities for this and tasks for their use are shown.

As is known, on the initiative of the head of our state, the International Tourist Center "The Great Silk Road" was established in Samarkand. Recently, it hosted a summit of the Shanghai Cooperation Organization at a high organizational level. This multifunctional centre includes 8 modern hotels, a congress hall, the Eternal City complex, an amphitheatre and many other facilities. It is capable of serving 2 million tourists a year. The Samarkand International Airport was also reconstructed.

The head of state gave instructions on attracting tourists to this complex, promoting the brand "Samarkand - the tourist gate of New Uzbekistan" in cooperation with embassies and foreign companies.

The Ministry of Transport was tasked with effectively using the capabilities of the modernized Samarkand International Airport, removing restrictions on flights of foreign airlines, and increasing the number of international flights.

At a meeting held on April 26 this year, measures were identified to increase the volume of tourism services in cities and regions, and to allocate 1 trillion soums of credit resources for industry projects. Analyzing the fulfilment of these tasks, the head of state pointed out the insufficiency of tourist places in the regions and the financing of entrepreneurs' projects.

The khokim of the Ferghana region reported on the work on the creation of the tourist ring "Golden Valley", covering 5 districts and 3 cities. The President emphasized the need to implement similar projects in other regions, to provide financial and organizational support to their initiators.

Opportunities for creating tourist zones in safe areas near water bodies and on forest fund lands were also noted. Proposals have been put forward for the development of safari tourism in the steppe regions of Karakalpakstan, Bukhara, Kashkadarya, Navoi, Surkhandarya, Fergana and Khorezm regions.

Another promising direction is pilgrimage tourism. There are more than 1.2 thousand shrines in our country. At the meeting, it was noted that by fully utilizing this opportunity, it is possible to attract at least 1 million tourists a year.

Instructions were given to increase flights from Indonesia, Malaysia, India, Pakistan, Bangladesh and Arab countries, train qualified guides, improve conditions and roads in places of pilgrimage.

In our country, 135 mahallas are defined as tourist mahallas. Since most of them are located in remote areas, the issue of infrastructure is acute.

Therefore, the President instructed to develop a program to solve problems with roads, electricity and water supply, and Internet access in tourist mahallas.

Road infrastructure is essential for travel. But over time, the number of cars increases. For example, five years ago, 25,000 cars passed along the Tashkent-Samarkand route, and today this figure has reached 35,000. Accordingly, the travel time also increased.

In this regard, the need to increase the frequency of rail and air communication between the cities of our country was emphasized.

The President focused on the issues of expanding amenities for tourists and simplifying the rules for the activities of industrial entities.

For example, today there are 97 requirements for opening a hotel. Taking into account the opinions of entrepreneurs, the task was set to simplify these requirements based on international standards.

There are inconveniences in the order of registration of tourists in the internal affairs bodies. In particular, a foreign tourist must be temporarily registered by the hotel within 2 days, and in the case of staying with relatives, within 3 days.

The Home Office has been tasked with reviewing this system and lifting excessive restrictions. Instead of temporary registration of foreign tourists, online notification will be used.

It is also planned to cancel the requirement for licensing the activities of travel agents with the introduction of a notification procedure. This will create an opportunity for the emergence of thousands more travel agents.

- Tourism means investment, exports, new jobs and poverty reduction. Therefore, it is necessary to pay serious attention to this direction in each region and attract more tourists, Shavkat Mirziyoyev said.

In general, it was indicated that there are opportunities to attract 7 million foreign and 12 million domestic tourists next year, increasing the export of tourism services to $ 2 billion. In this regard, specific areas of work were identified and those responsible for their implementation were identified.

 

Source: president.uz

Cooperation in the field of transport between states has a huge potential, and undoubtedly, contributes to the sustainable development of the cooperating countries and the strengthening of their trade and economic relations.

In this process, the further diversification of foreign trade transport corridors, the development of alternative and the creation of new routes is relevant.

It is necessary to separately note the efforts made by the three countries to implement the project for the construction of the Uzbekistan-Kyrgyzstan-China railway.

On September 14, within the framework of the SCO Samarkand summit, a trilateral cooperation agreement was signed between the Ministry of Transport of the Republic of Uzbekistan, the Ministry of Transport and Communications of the Republic of Kyrgyzstan, the State Committee for Development and Reforms of the People's Republic of China on the construction project of the Uzbekistan-Kyrgyzstan-China railway.

The document provides for the completion of all work on the development of a feasibility study for the construction of a railway in the Kyrgyz Republic in the first half of 2023. The parties also established the procedure for financing and distributing costs when developing a feasibility study for a trilateral railway project.

The implementation of the project will serve as the basis for expanding the geography of trade and transportation from China through Uzbekistan to Europe and to the Persian Gulf states through the Southern Corridor.

 

Source: mintrans.uz

In the city of Yangling in the Chinese province of Shaanxi, the 29th Yangling Exhibition of High Agricultural Technologies on the theme "Innovation, Cooperation and Food Security" is being held, which will last until September 19.

Yangling Fair is one of the major agricultural exhibitions in China, has a level of "5A" and has been held on an annual basis since 1997. The demonstration zone maintains cooperation with about 60 countries through 13 different exchange platforms.

At the same time, the SCO-2022 Agricultural Exhibition is being held, organized by the Secretariat of the Shanghai Cooperation Organization and the China Association for the Promotion of International Agricultural Cooperation.

Vice Chairman of the Standing Committee of the National People's Congress Ji Bingxuan, Governor of Shaanxi Province Zhao Yide and other dignitaries spoke at the opening of the event.

They talked about cooperation with foreign countries, China's international trade and economic activities, expanding transport and communication opportunities, and sustainable development efforts under the One Belt, One Road initiative.

The speakers stressed that comprehensive cooperation between Uzbekistan and China is developing dynamically.

Deputy Minister of Agriculture of Uzbekistan Alisher Turaev took part in the opening ceremony with a video message and briefed the participants on the development of Uzbekistan, its investment and export potential, and the achievements of the Uzbek-Chinese trade and economic cooperation.

A number of thematic forums and other events are held within the framework of the exhibition. In particular, on September 15, a round table was held on the development of modern agriculture within the framework of the SCO. The forum topic is "Poverty reduction and cooperation in the field of agricultural technologies."

The speech of the Deputy Minister of Agriculture of Uzbekistan at the round table provides detailed information on the economic and investment potential of Uzbekistan, including in the agricultural sector. Separately, the vast and unique potential of ecologically clean fresh vegetables, fruits, fruits, gourds and finished high-quality products of their industrial processing produced in the republic was noted.

Within the framework of the international exhibition, national stands of more than 50 countries, including Uzbekistan, were organized.

Due to the fact that this year Uzbekistan is the country chairing the SCO, it participates in this exhibition as a "guest of honour".

The exhibition presents confectionery products, mineral waters, natural honey, medicinal plants, agricultural products, dried fruits and other goods.

The Shaanxi Provincial Administration expressed its sincere gratitude to Uzbekistan for participating in the international exhibition as a “guest of honour” and with a large assortment of goods, despite the restrictions of the pandemic.

 

Source: dunyo.info

As of September 1, 2022, the total number of operating industrial enterprises (excluding farms and peasant farms) in the republic amounted to 95,761, an increase of 4.1% compared to the corresponding period of 2021. Of the total number of operating enterprises (565,982), 16.9% were industrial enterprises, of which 94,854 were small businesses.

The number of industrial enterprises operating by regions was distributed as follows:

In Tashkent - 16 419

In Fergana region - 10,591

In Andijan region - 9,748

In Tashkent region - 9,640

In Samarkand region - 8,576

In Namangan region - 7,553

In Kashkadarya region - 5,338

In Bukhara region - 4,970

In Surkhandarya region - 4,756

In Khorezm region - 4,671

In Jizzakh region - 3,936

In Navoi region - 3,860

In R. Karakalpakstan - 3,434

In Syrdarya region - 2,269

 

Source: stat.uz 

As of September 1, 2022, the number of enterprises with foreign capital in the republic amounted to 14,706, an increase of 1,617 compared to the same period last year.

The number of enterprises with foreign capital participation by regions:

Tashkent city - 8 926

Tashkent region - 1,563

Samarkand region - 687

Surkhandarya region - 604

Fergana region - 553

Andijan region - 407

Bukhara region - 376

Namangan region - 313

Navoi region - 251

Kashkadarya region - 242

Jizzakh region - 206

Syrdarya region - 212

Khorezm region - 185

Karakalpakstan - 181

 

Source: stat.uz

In the Republic of Karakalpakstan, in January-June 2022, the share of investments financed from non-centralized sources of financing in total investment in fixed assets amounted to 76.4% or 3190.1 billion soums, and the growth of 122.2%rate compared to the corresponding period of 2021.

Accordingly, the share of investments in fixed assets financed from centralized sources of financing is 23.6% or 985.8 billion soums, and the growth rate was 126.5% compared to the corresponding period last year.

 

Source: stat.uz

On September 14 of this year, in Samarkand, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held talks with Iranian Oil Minister Javad Avzhiy, who is in our country as part of the visit of the Iranian delegation at the highest level to participate in the Summit of the Shanghai Cooperation Organization.

During the meeting, the prospects for long-term and mutually beneficial cooperation in such areas as interaction in the framework of the exchange of experience and increasing human resources, joint production and organization of equipment supplies for the needs of the oil and gas and petrochemical industries were discussed.

In particular, the parties considered the possibility of joint implementation of projects for the modernization of oil refineries in Uzbekistan, the production of catalysts that meet the highest international standards for the needs of the petrochemical industry and the organization of the supply of drilling rigs under the most attractive conditions. The Iranian side expressed readiness to take measures to attract direct investment in the implementation of projects.

The prospects for establishing cooperation in the scientific field were discussed, bearing in mind the exchange of experience and advanced training of personnel in the oil and gas industry. An agreement was reached on the joint development of a training program for employees of enterprises, including in such priority areas as the production of gas condensate and liquefied gas using GTL technology with leading research centres in Iran.

Following the talks, the parties agreed to support partnerships further and jointly develop a roadmap to implement the discussed projects and initiatives.

 

Source: mift.uz

On September 15, the President of the Republic of Uzbekistan Shavkat Mirziyoyev and the President of the People’s Republic of China Xi Jinping held negotiations at the Congress Center of the Great Silk Road International Tourist Center in Samarkand.

At the beginning of the meeting, the leaders exchanged congratulations on the occasion of the 30th anniversary of the establishment of diplomatic relations and the 10th anniversary of the strategic partnership between the two countries.

The President of our country expressed his sincere gratitude for the signed article by Chinese President Xi Jinping published on the eve of the visit «Working Together for a Brighter Future of China-Uzbekistan Relations», which is of a guided nature and witnesses the long-lasting historical ties between our peoples. The President of Uzbekistan noted the tremendous achievements of the Chinese people under the leadership of the President and wished successful holding of the upcoming 20th Congress of the Communist Party of China.

In turn, Xi Jinping highly appreciated the ongoing program of large-scale reforms in New Uzbekistan, which demonstrates the impressive results in all spheres of life of the state and society.

The leaders held in-depth discussions on further ways of strengthening Uzbek-Chinese relations through a comprehensive strategic partnership.

It was noted that due to the regular contacts at the highest level, an unprecedented level of interstate cooperation has been achieved.

In particular, last year the trade turnover reached a record $8 billion, as well as since the beginning of this year it has grown by more than 30%.

The volume of investments in the economy of Uzbekistan has exceeded $10 billion over the past five years. A five-year program of full-scale economic cooperation is being successfully implemented. The joint projects in the key sectors of the economy and the social sphere are being successfully implemented.

The importance of further expanding trade and economic cooperation, through the development of e-commerce, as well as implementing breakthrough industrial cooperation projects, primarily in such areas as the automotive industry, green energy, and agricultural and infrastructure development, was emphasized.

Special attention is paid to continuing the extensive study and implementing the progressive Chinese experience in the field of poverty reduction, regional development, and professional training.

The sides called for the activation of interregional exchanges. In this context, it is proposed to hold the first Forum of the Regions of the two countries in Uzbekistan by the end of the year.

The historic agreement on the start of construction of the «China-Kyrgyzstan-Uzbekistan» railway, which has high strategic importance for consolidation and development of transport connectivity of the region was noted with deep satisfaction.

Particular attention was paid to humanitarian cooperation, including the expansion of programs in healthcare, vaccine production, science, education and culture.

The parties have agreed to hold the Year of Culture and Art of the Peoples of Uzbekistan and China next year, which shall further consolidate the friendship and mutual understanding between our peoples.

There was also an exchange of views on the topical issues on the regional and international agenda.

 The importance of continuing joint efforts to facilitate an Afghan peace process and economic restoration, as well as a systemic interaction as a part of the international and regional structures, including the «Central Asia-China» mechanism, was emphasized.

The President of China highly appreciated the activities of Uzbekistan as a host country of the Shanghai Cooperation Organization, which resulted in the adoption of important decisions to expand the Organization and strengthen its international authority.

As an outcome of the talks, agreements in trade, economic, investment, financial and technical cooperation on the implementation of priority projects totalling $15 billion were signed.

At the end of the talks, Chinese President Xi Jinping invited the President of Uzbekistan Shavkat Mirziyoyev to pay a return visit to China.

 

Source: president.uz

Following the productive negotiations between the President of the Republic of Uzbekistan Shavkat Mirziyoyev and the President of the People’s Republic of China Xi Jinping, a solid package of bilateral documents was adopted.

The Presidents signed a Joint Statement, which sets out the main agreements, as well as reflects the assessment of the state and prospects for strengthening the two countries’ comprehensive strategic partnership.

As a part of the highest-level visit, 15 documents were also signed, including:

- a memorandum on promoting investment cooperation in the field of «green» development;

- a memorandum of cooperation on strengthening the investment cooperation in the digital economy;

- a memorandum of cooperation in the field of mineral development;

- a memorandum of cooperation in the field of preventing and combating corruption;

- a memorandum of cooperation in the field of construction;

- a program of cultural exchange for 2022-2025;

- an agreement on cooperation between the national news agencies;

- an agreement on establishing a partnership between the Samarkand Region and the Shandong Province;

- an agreement on establishing a partnership between the Tashkent Region and the metropolis of Chongqing;

- an agreement on establishing a partnership between The Bukhara Region and the Yunnan Province;

- an agreement on establishing a partnership between the cities of Bukhara and Kunming.

The arrangements were also reached, as well as agreements were signed in the fields of trade, economic and investment cooperation amounting to $ 15 billion.

 

Source: president.uz

The increased transparency and bold reforms of the last five years have seen Uzbekistan’s economy grow at a speed few predicted. But can President Shavkat Mirzyoyev achieve his dream to create the Commonwealth of Independent States’ second highest economy after Russia?

Only after significant investment, both at home and internationally. At an open dialogue event held in Tashkent on August 22, Mirziyoyev made clear his determination to allay any concerns for potential investors, to tame inflation and to push the country’s sovereign rating higher.

The event was attended by heads of ministries and departments responsible for the economy, trade, construction and investment, as well as business executives.

Creating a fertile business environment

In the 12 months since President Mirziyoyev declared that August 20 would become a national ‘Day of Entrepreneurs’ as part of an ongoing drive to attract foreign investment, the country has seen a record amount of new businesses opening – more than 55,000. Some 26,000 of these enterprises have revenues of over US$1 million.

“We are entering a very important and decisive stage on the path of building a New Uzbekistan,” President Mirziyoyev told those present at the event. “Your selfless work, innovative thinking and approach are more important today than ever, and I believe that you will set an example for the representatives of all spheres.”

The idea of the open dialogue is to address current and potential entrepreneurs’ concerns, in nine thematic sessions.

The number of appeals from business owners has almost halved (8,500 in 2022, down from 15,000 in 2021), and it is clear many issues have already been resolved in the government’s drive to streamline bureaucracy, simplify legislation and protect businesses over the last year.
 
Different ways in which support would be given to local businesses and foreign investors were discussed. A key session covered property, ownership and the division of buildings, since many of the issues raised by entrepreneurs related to this.

Islam Zhasimov, first deputy chairman of Uzbekistan’s Chamber of Commerce and Industry, had reassuring words for those present. “Our most important task is to increase the freedom of entrepreneurship in Uzbekistan,” he said. “This is a very important indicator that determines the attractiveness of entrepreneurial activity. And how free do our entrepreneurs feel, free to get a loan, to get land, to buy a building, to export, to protect their property and interests?”
 
Among the initiatives introduced at the event were a lower flat rate of tax for small businesses, with extra tax incentives during the first 12 months. Around 370,000 entrepreneurs would stand to benefit from this at present.
 
Financing for small businesses has also been announced, and guarantees from the country’s Entrepreneurship Fund are to be doubled. This will enable at least 15,000 entrepreneurs to secure loans.
 
A drop in VAT (to 12 per cent) will take effect on January 1 2023, and should further reduce the tax burden for businesses.
 
Potential foreign investors have been particularly targeted in recent years, and treaties to avoid double taxation have been arranged with 54 countries. To date more than 12,000 businesses have been set up using foreign capital.
 
Uzbekistan is a member of the Free Trade Area of CIS countries, and in tandem with its widescale economic reforms, it is currently negotiating its accession into the World Trade Organization.

A thriving economy against the odds

Despite the pandemic and recent global economic crises, Uzbekistan has exceeded financial predictions. In 2022, according to the World Bank’s report in June, the country’s GDP per capita rose to US$2,100, a rise of 4.3 per cent. The World Bank noted that GDP growth in 2023 could be 5.3 per cent.

Forecasters predict that GDP will reach US$4,000 by 2030, allowing Uzbekistan to join the ranks of “states with an upper-middle income”

The country’s economic growth is spread across various sectors. Its natural resources include natural gas, oil, gold, silver, uranium, coal and copper. It is one of the world’s leading producers of cotton and silk, a practice that dates back to the 4th century.

Mild winters and 320 days of sunshine provide a solid bedrock for agriculture, and Uzbekistan has extensive orchards and vineyards. Other industries include construction, textiles, leather processing, fertiliser production, pharmaceuticals and the automobile industry.

Tourism, too, is on the rise. There are almost 7,500 historic cities in Uzbekistan, and the cities of Bukhara, Samarkand, Khiva and Shakhrisabz have been included in the UNESCO World Heritage list, as has the Tian Shan ‘Heavenly Mountain’ range.

Opening up Uzbekistan’s borders is part of the government’s push to become an international player, and can only increase confidence in those looking to invest in a fast-growing economy.

 

Source: euronews.com

In Navoi region, in January-June 2022, the share of investments financed from non-centralized sources of financing in the total volume of investments in fixed assets amounted to 93.8% or 8023.3 billion soums.

 Accordingly, the share of investments in fixed assets financed from centralized sources of financing is 6.2% or 534.9 billion soums.

 

Source: stat.uz

 

For goods that are not household, kitchen and computer equipment, it is proposed to cancel the restriction on duty-free import in time and quantity (restrictions on the total amount of import remain). The goal is to provide the population with socially significant goods in the face of food shortages in the world.

The Ministry of Investments and Foreign Trade of Uzbekistan proposed to abolish the quantitative norm for duty-free importation of a number of goods imported by individuals through road (pedestrian), railway and river border checkpoints.

We are talking about tableware, as well as goods that are not household, kitchen and computer equipment (except for alcoholic products, including beer, tobacco products, perfumes and toilet water and jewellery).

The proposal is substantiated by the goals of "providing the population in the conditions of a shortage of food products in the world with socially significant goods, preventing an increase in prices for food products in the domestic market and creating conditions for citizens of the country to import products for personal needs."

Now there is a restriction on the import of one set of tableware for six months, for other goods - 2 kg of each item (with the exception of indivisible goods), but not more than 10 kg of total weight during the month.

In the explanatory note to the draft government decree, the MIFT notes that now the listed goods are subject to both quantitative and value import norms.

Due to the presence of quantitative restrictions, individuals cannot pass through the "green" customs corridor with such products but are forced to go through the "red" one.

“In foreign countries, there are no restrictions on the number of goods transported through border posts, only the total value of goods is limited,” the document says.

At the same time, restrictions on the import of household and computer equipment in the form of one unit every six months remain in force.

A quantitative restriction on the duty-free import of a number of goods, including refrigerators, air conditioners, washing machines, vacuum cleaners and other household appliances, as well as computer equipment (one unit per month) was introduced in July 2018. Already in October of that year, this period was extended to six months. When importing all these goods in excess of the established norm and/or frequency, customs payments are levied.

Since February of the same year, there has been a restriction on the total amount of passes imported through road (pedestrian) passes - $ 300 (through railway and river points - $ 1,000, international airports - $ 2,000).

 

Source: www.gazeta.uz

Historically, U.S. foreign policy has been replete with examples of over-involvement and under-involvement with the rest of the world. And we tend to go for ill-advised military adventures, which, when they inevitably go wrong, lead America to head for the exits, forgetting that the rest of the world continues to matter. 

So is the danger for U.S. foreign policy following the 20-year war in Afghanistan. While that exercise in mission creep is rightly being used as a primary warning for the avoidance of fighting wars without clear missions, we must be careful not to “throw out the baby with the bathwater” when it comes to strategy. The war in Afghanistan was a nation-building folly, but Central Asia remains a region where America can and must — based on its national interests — continue to play a role. 

Indeed, the war in Ukraine has heightened awareness among Central Asian states of their vulnerability to pressures from Russia and China. It also has strengthened their resolve to cooperate with each other, and with the West, as a means of retaining strategic agency. The United States can play a constructive role in this geopolitical process by deepening the strategic partnership with Uzbekistan, the key player in a region that forms a crossroads between Asia and Europe. 

At their joint July presidential summit, initiated by Uzbekistan, leaders of the five Central Asian countries set an agenda for cooperation that promotes interconnectivity through free trade, green energy, tourism, water sharing and hydropower investments. The summit also opened the door to deeper American engagement. Washington has been hesitant to pursue closer ties with countries that are not viewed as model democracies, but such an approach is short-sighted in realist terms, especially given the current strategic environment in Eurasia.  

Specifically, Uzbekistan is preparing to hold a referendum in the coming months on a new version of its constitution that includes strengthening civil rights, extending the presidential term from five to seven years, and restarting the count of presidential term limits. The latter proposals have been criticized by Western human rights groups for potentially curtailing democracy even though Tashkent argues that they are designed to ensure political stability — a vital necessity in these dangerous times — and will not afford the president any additional powers. 

Uzbekistan’s government moved quickly to engage in damage control after an earlier constitutional draft envisioned curbing the autonomy of the country’s Karakalpakstan autonomous region. Public protests taught the government the central lesson that open debate and consultations with local leaders are essential to ensure stability and support. Uzbekistan’s President Shavkat Mirziyoyev subsequently dropped plans to curtail Karakalpakstan autonomy, indicating government responsiveness to social demands. 

The planned constitution also includes several amendments intended to boost governmental accountability. One change envisions transferring the authority to appoint the heads of the anti-corruption agency and Accounts Chamber, which has formal oversight over government spending, from the president to the Senate. Over the coming weeks, all these planned constitutional amendments will be put to a nationwide referendum, as the government has pledged, which will be closely monitored by the Organization for Security and Cooperation in Europe (OSCE) observation mission. 

The U.S. ought to play a supportive role in Uzbekistan by encouraging official accountability and public oversight, and developing stronger economic and security links. Since coming to power in 2016, Mirziyoyev has staked his reputation on modernizing Uzbekistan and his reforms have led to economic growth and foreign investment.  

Uzbekistan is Central Asia’s breadbasket and home to some 35 million people — nearly as many as all other countries in the region combined. It won The Economist’s “country of the year” award in 2019 for its far-reaching reforms, including ending child labour in the cotton fields and opening up to international capital markets. Foreign direct investment rose by a stratospheric 266 percent that year and has remained consistent ever since. The International Monetary Fund forecasts that, given the trajectory of economic reforms, the country is well placed to continue its growth. For all these reasons, Uzbekistan amounts to an opportunity for the U.S., not a problem.  

If Central Asian regional security is to be truly promoted, the expansion of transportation routes involving Uzbekistan remains essential. Here, too, there are encouraging signs. On Aug. 2, the foreign, economy and transport ministers of Uzbekistan, Azerbaijan and Turkey signed the Tashkent Declaration to enhance cooperation between the three Turkic-speaking countries. A centrepiece of this initiative is the international transport corridor — the Trans-Caspian International Trade Route (TITR) — that can boost trade and energy flows and bypass an unreliable Russia.  

U.S. big-picture attempts to forge a global international coalition of democracies is too simplistic to work in a world full of as much grey as black and white; America must not neglect states where pluralism is still a promising work in progress and where greater U.S. involvement will help limit pernicious Russian and Chinese Communist Party influence. 

It is also worth remembering that democracy has less chance of bearing fruit in the absence of national security and regional stability and that consistent U.S. engagement can strengthen both. There is a magical middle intellectual ground here between over-involvement and under-involvement. Greater U.S. diplomatic and economic ties with Uzbekistan, and Central Asia as a whole, serve American interests in the challenging era we find ourselves in.

 

Source: thehill.com

On September 7-9 this year, a delegation of SOCAR visited Uzbekneftegaz JSC and production facilities. This visit was carried out in accordance with the "Roadmap", developed in order to expand cooperation in the field of oil and gas between Uzbekneftegaz JSC and SOCAR.

During the visit, a presentation was made on the current state and prospects for the development of the field of deep oil and gas processing in Uzbekistan.

During the discussion, petrochemical projects, as well as areas of activity of SOCAR were considered.

The parties exchanged views on the reforms being carried out in the direction of reforming, transforming and digitalizing the corporate governance system, and the experience gained in the course of activities.

Members of the delegation visited the production facilities of the Uzbekistan GTL plant, the Shurtan gas chemical complex and the Shurtan oil and gas production department in the Kashkadarya region, and got acquainted with the technological capabilities and production processes of the enterprises.

Members of the SOCAR delegation especially noted the contribution of Uzbekneftegaz JSC to the oil and gas industry in the region and in the countries of the Commonwealth of the Independent States as a whole. We highly appreciated the prospects for ongoing projects of Uzbekneftegaz JSC.

Following the visit, the members of the delegation expressed their readiness to continue the joint work of the two companies and establish points of contact between the interests of the parties. The partners noted that Uzbekneftegaz JSC had all the resources to implement modern high-performance projects.

For reference: SOCAR is the largest oil and gas company in Azerbaijan and operates in the Caspian Sea region and in many countries of the world (Georgia, Romania, Kazakhstan, Turkey, etc.).

 

Source: www.ung.uz 

To assess the economic situation in the country, the Center for Economic Research and Reforms conducts a monthly assessment of the state of business activity at the regional and district levels.

Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the Republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UzEX).

The monitoring results showed that the volume of tax revenues of the Republic in the period from January 1 to August 31 this year increased by 16.5% compared to the same period last year.

At the same time, a significant increase in tax revenues was recorded in Ferghana (+38.7%), Samarkand (+36.3%), Syrdarya (+35.5%), Surkhandarya (+34.4%), Bukhara (+32.3%), Khorezm (+31.9%) regions and in Tashkent (+42.8%).

The growth of tax revenues was ensured due to positive changes in the economy, improvement of the tax administration system, including the introduction of new administrative tools, digitalization and automation of processes, legalization of entrepreneurial activity and simplification of the procedure for compliance with tax legislation.

Revenues from customs payments for the analyzed period increased by 40.0% compared to the same period in 2021. The largest increase in customs receipts was observed in the Republic of Karakalpakstan (+59.0%), Andijan (+51.9%), Khorezm (+48.6%), Bukhara (+46.8%), Syrdarya (+44.3%) regions and in Tashkent (+46.2%).

The increase in customs revenues was achieved due to the growth of foreign trade turnover, the increase in the country's production capacity, simplification of customs administration procedures, digitalization and automation of processes, including the widespread use of the risk management system by customs authorities.

According to the State Customs Committee, the volume of exports of goods from the beginning of this year to August 31 increased by 23.0% compared to the same period last year. A significant increase in the volume of exports of goods was noted in Samarkand (+35.9%), Kashkadarya (+35.9%), Andijan (+35.1%), Namangan (+30.7%), Syrdarya (+27.7%) regions and in Tashkent (+45.3%).

The increase in Uzbekistan's exports is explained by the growing growth rates of exports of industrial goods, food products, chemicals substances and agri-food products.

The decrease in exports of goods was observed in Bukhara (-10.7%), Surkhandarya (-7.3%) regions and in the Republic of Karakalpakstan (-16.1%).

The reduction in the volume of exports in the Bukhara region is due to the direction of cotton fibre to the domestic market. In the Republic of Karakalpakstan - the reduction of exports of plastics, pharmaceutical products (from liquorice root) and yarn. In Surkhandarya region, this is due to a reduction in exports of fruit and vegetable products (beans, tomatoes, mash, onions) and yarn.

The volume of loans issued by commercial banks in the period from January 1 to August 31 this year increased by 7.0% compared to the same period last year.

significant increase in the volume of loans issued is observed in Ferghana (+23.1%), Tashkent (+20.2%), Andijan (+16.0%), Samarkand (+7.3%) regions, the Republic of Karakalpakstan (+7.7%) and in Tashkent (+16.6%).

reduction in the issuance of loans is observed in Syrdarya (-48.9%), Navoi (-30.5%), Surkhandarya (-19.3%), Bukhara (-13.0%), Kashkadarya (9.9%), Jizzakh (-8.1%) and Namangan (-0.5%) regions, which is associated with the issuance of large loans in the same period of 2021 for textile and other industrial projects in these areas.

The volume of transactions on the UzEX for the analyzed period increased by 42.6%. A significant increase in exchange activity is observed in Jizzakh (+62.6%), Navoi (+55.7%), Khorezm (+53.4%), Tashkent (+45.3%) regions and in Tashkent (+54.2%).

The growth in the volume of transactions in these regions is ensured by increasing the sale of such goods as mineral fertilizers, technical seeds, automobile gasoline, diesel fuel, construction and household materials, vegetable oil, wheat flour, wheat, sugar, cotton fibre, rolled ferrous and non-ferrous metals, polyethene, polypropylene, ethyl alcohol, etc.

During the analyzed period, 62,685 new economic entities were created, the largest number of which were registered in Samarkand (7,822), Kashkadarya (6,158), Ferghana (5,989), Tashkent (4,604), Andijan (4,089) regions and in Tashkent (10,299).

 

Source: review.uz

From 8 to 10 September, the largest international food and beverage exhibition 
"RIGA FOOD 2022" is being held at the Riga International Exhibition Center.

"RIGA FOOD 2022" is the largest food exhibition in the Baltic States, aimed at marking the development of the industry as a whole, demonstrating new products and providing an opportunity to get acquainted with serious 
and reliable industry enterprises.
Every year, this site is visited by about 20 thousand professional visitors and more than 400 exhibitors take part.

Opening the doors to new opportunities, the exhibition expands from year to year 
and has great worldwide fame, thanks to the promotion of the products of participating companies.

In this regard, Uzbekistan does not miss the opportunity. Products presented at the national stand "Made in Uzbekistan" 
and manufactured according to international standards can arouse serious interest due to their quality.
The stand organized by the Export Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan gathered 20 Uzbek companies.

Various products are widely presented at the stand, namely: creamy 
and confectionery products, juices and drinks, pasta and flour products, ice cream and semi-finished products, legumes, dried and fresh fruits and vegetables, ready-made breakfasts for children and adults, and kitchen utensils.
The exhibition opens up a wide range of export opportunities 
for Uzbek participating companies not only in the Baltic countries but also in the markets of the European Union.

We wish good luck to Uzbek companies and look forward to establishing fruitful cooperation with foreign companies!

 

Source: epauzb.uz

On September 15-16, the events of the 22nd meeting of the Council of Heads of State of the Shanghai Cooperation Organization will be held under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev in the city of Samarkand.

The summit will be attended by the leaders of the SCO Member States - the Republic of India, the Republic of Kazakhstan, the People’s Republic of China, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan, as well as the observer states to the Organization - the Republic of Belarus, the Islamic Republic of Iran and Mongolia.

The Presidents of the Republic of Turkey, the Republic of Azerbaijan, Turkmenistan and the Republic of Armenia, as well as the heads of the United Nations and other authoritative international and regional organizations, are invited as honorary guests.

In accordance with the agenda of the Samarkand Summit, the topical issues of further expanding the multilateral cooperation, the practical aspects and priority tasks of the SCO development will be considered. There will be an exchange of views on international and regional issues.

As a result, it is planned to adopt a solid package of documents to expand the Organization’s activities and deepen the regional cooperation in the priority areas.

It should be noted that the upcoming meeting will be the first face-to-face meeting of the SCO leaders in the last three years after the outbreak of the coronavirus pandemic in 2020.

This event will also complete Uzbekistan’s chairmanship in the Organization, within which more than 80 major events have been held.

 

Source: president.uz

Uzbekistan’s chairmanship in the SCO has fallen on a dynamic period, fraught with various events and trends – the period of the «historical rift», when one era comes to an end and another begins – thus far unpredictable and unknown.

The modern system of international cooperation, based on universal principles and norms, begins to falter. One of the main reasons for this is a deep crisis of trust at the global level, which, in turn, provokes a geopolitical confrontation and the risk of reviving the bloc thinking stereotypes. This process of mutual alienation complicates the return of the world economy to its former course of development and the restoration of global supply chains.

The ongoing armed conflicts in different parts of the world destabilize trade and investment flows, exacerbate the problems of ensuring food and energy security.

Along with this, global climate shocks, growing scarcity of natural and water resources, the decline in biodiversity, and spread of dangerous infectious diseases have exposed the vulnerability of our societies as never before. They lead to the destruction of existential common goods, threatening the basis of people’s lives and reducing sources of income.

In these circumstances, it is obvious that no country alone can hope to avoid or cope with these global risks and challenges.

There is only one way out of the dangerous spiral of problems in an interconnected world where we all live today - through constructive dialogue and multilateral cooperation based on consideration and respect for the interests of everyone. It is exactly at the time of crisis when all the countries – whether they are large, medium or small by size – must put aside their narrow interests and focus on such mutual interaction, unite and multiply the common efforts and possibilities to counter the threats and challenges to peace, security and sustainable development that are related to each of us.

Effective international cooperation makes the world more stable, predictable and prosperous. This is the most viable, accessible and closest way to solving common problems of our time as well as a universal insurance policy against future challenges and shocks.

 

A Model for Successful Regional Cooperation

The international cooperation that lies in the interest of everyone is impossible without multilateral institutions. Despite the certain shortcomings, they continue to serve as the most important agents of interaction between the countries - at the regional and global levels. The international and regional organizations help countries to overcome differences and strengthen mutual understanding, to develop political and economic cooperation, expand trade and stimulate cultural and humanitarian exchanges.

These are the goals and objectives that are pursued by one of the youngest multilateral institutions - the Shanghai Cooperation Organization (SCO). In fact, it is a unique interstate structure that has managed to unite countries
with different cultural and civilizational codes, their own foreign policy guidelines and models of national development. In a relatively short historical period, the SCO has come a long way, becoming an integral element of the modern global political and economic world order.

Today, the SCO family is the world’s largest regional organization, which has united a huge geographical space and about half of the population of our planet.

The basis for the SCO’s international attractiveness is its non-bloc status, openness, non-targeting against third countries or international organizations, equality and respect for the sovereignty of all participants, refusal to interfere in internal affairs, as well as prevention of political confrontation and unhealthy rivalry.

The SCO’s success concept is the promotion of multifaceted cooperation through ensuring regional security.

In fact, the Shanghai Cooperation Organization is called upon to become a pole of attraction without dividing lines, in the name of peace, cooperation and progress.

Therefore, the number of states that are ready to cooperate with the SCO is growing every year, and this is especially noticeable in the context of the transformation of the modern system of international and regional relations.

The economic value of the SCO is enhanced by the self-sufficiency of its space, where there are dynamically developing economies of the world with huge human, intellectual and technological potential, and the existence of large volumes of unused natural resources.

Today, the total GDP of the SCO member states has reached about a quarter of the global figure. This is already a very solid contribution to global sustainable development from a regional organization that has just crossed its 20-year threshold.

In a world with new challenges and opportunities, the SCO has excellent prospects for transformation and growth, not only through quantitative replenishment but also through the opening of new strategic vectors. These are transport and connectivity, energy, food and environmental security, innovations, digital transformation and a green economy.

 

Uzbekistan’s Chairmanship: towards Common Success through Joint Development

Accepting the responsible mission of Chairmanship in the SCO, the Republic of Uzbekistan has relied on the strategy of advancing the development of the Organization by opening up new horizons for cooperation and launching usage of untapped reserves that each of its members has.

Our slogan is «The SCO is strong if each of us is strong». Implementing this, we have made serious efforts to make the Organization even stronger from the inside and more attractive from the outside to our international partners.

At the platforms of more than eighty major events held during the year, a comprehensive agenda was formed for the SCO – starting from the issues of further expanding cooperation in security, strengthening transport and economic connectivity and positioning the Organization in the international arena up to the search for new ways and points for development.

All these promising directions of cooperation for the SCO at the new stage of its historical development are reflected in more than thirty conceptual programs, agreements and decisions prepared during our chairmanship period.

I would say even more. Uzbekistan’s chairmanship in the SCO is a logical continuation of an active and open foreign policy course that has been pursued by our country in the last six years. Above all, this policy is embodied in Central Asia, the geographical core of SCO, where positive and irreversible processes of strengthening good-neighbourliness and cooperation are now taking place.

All SCO member states are our closest neighbours, friends and strategic partners.

The Chairmanship has given us a good opportunity to further strengthen multilateral collaboration and expand bilateral cooperation with each of them, as well as set new targets for even deeper partnership. 

I am full of confidence that it is important and necessary for the SCO to share its success story with Afghanistan. This country is an integral part of the larger SCO space. The Afghan people need good neighbours and their support now more than ever. It is our moral obligation to extend a helping hand, to offer them effective ways of overcoming the years-long crisis by promoting socio-economic growth of the country, and its integration into regional and global development processes. 

Afghanistan which has played for centuries the role of a buffer in the historical confrontations of global and regional powers should try on a new peaceful mission of connecting Central and South Asia.

The construction of the trans-Afghan corridor could become a symbol of such mutually beneficial inter-regional cooperation. It is also important to understand that by implementing joint infrastructure projects such as the Termez – Mazar-i-Sharif – Kabul – Peshawar railroad we are not just solving socio-economic, transport and communication problems, but also making a significant contribution to ensuring regional security.

By bringing our positions closer to each other, together we can develop a new SCO agenda for a more peaceful, stable and prosperous Afghanistan. Only in this way can we create a truly stable and sustainable SCO space with indivisible security.

 

 «Samarkand Spirit» - the Embodiment of Cooperation, Mutual Understanding and Friendship

After a three-year pandemic pause that has caused severe disruption in trade, economic and industrial ties, the countries and peoples of the SCO need to communicate directly.

The ancient city of Samarkand, the jewel of the Great Silk Road, is ready to welcome the leaders of fourteen countries with new breakthrough proposals and initiatives designed to serve for good and prosperity of the SCO and each of its members.

There is no doubt that this legendary city will open another chapter of the SCO success story. The glorious historical heritage of Samarkand will contribute to this. 

For many centuries, this city has been threading together countries from Europe to China, merging North and South, East and West into a single node.

Historically Samarkand has been a melting pot of ideas and knowledge, that was “cooking” a common goal of living better, being more successful and becoming happier. And everybody has known that friendly neighbours are half of your wealth, you yourself are a blessing to them because you know that cooperation, trade, oeuvre, science, art and the best ideas do good, enrich and bring nations together. 

These unique qualities of Samarkand, which today has a modern and dynamically developing infrastructure, turn it into the most suitable and demanded platform for joint discussions, searching for necessary responses to regional and global challenges.

The integrity and interconnectivity of mankind are such that most challenges require joint work not only at the regional level but also in the global arena.

Relying on the experience of our many years of joint work, we are confident that the Samarkand SCO summit will set an example of how we can launch a new, inclusive dialogue based on the principles of mutual respect, trust and constructive cooperation for the sake of common security and prosperity.

Samarkand can become the platform that can unite and reconcile states with different foreign policy priorities.

Historically, the world looked upon from Samarkand has been seen as single and indivisible, rather than fragmented. This is indeed the essence of the unique phenomenon of the «Samarkand spirit», which can serve as the basis for a fundamentally new format of international interaction, including within the Shanghai Cooperation Organization.

The «Samarkand spirit» is designed to naturally complement the very «Shanghai spirit», thanks to which more than 20 years ago our countries decided to create a new and eagerly sought organization.

Therefore, we are confident that in Samarkand we shall witness the birth of a new stage in the life of SCO – the number of its members will grow, and its future agenda will be formed, and this is highly symbolic.

We are full of optimism and are convinced that the decisions of the upcoming summit of the Shanghai Cooperation Organization will make a feasible contribution to strengthening the dialogue, mutual understanding and cooperation both at the regional level and on a global scale.

 

Shavkat Mirziyoyev

President of the Republic of Uzbekistan

 

Source: president.uz

IFC has finalized an agreement to finance the first wind power plant in Uzbekistan, a 500-megawatt facility in the Navoi region that will power hundreds of thousands of homes. IFC's investment will support Uzbekistan's efforts to strengthen its electricity supply, diversify its energy mix with clean energy, and address climate-change-related challenges.

The Zarafshon wind power plant is being developed by Abu Dhabi Future Energy Company (Masdar), a leading renewable energy company based in the United Arab Emirates and a longstanding IFC client. IFC is leading a $94 million financing package for Shamol Zarafshan Energy Foreign Enterprise, a special purpose vehicle established by Masdar, to build and operate the plant.

With a capacity of 500 megawatts, the project is set to be among the largest wind farms in Central Asia. Once operational, it is expected to power 500,000 homes while preventing the release of more than 1 million tons of carbon dioxide per year.

Wind is one of the world's fastest growing and most-affordable sources of new power generation, with over 743 gigawatts of global installed capacity. The Zarafshon wind farm will significantly contribute to achieving Uzbekistan's goal of adding 3 gigawatts of wind power capacity by 2026.

"Uzbekistan is aiming to derive 25 percent of its energy from renewable sources by 2026, and we are grateful to Masdar and financial institutions who are contributing to this goal through solar, wind, and other renewable energy projects," said Shukhrat Vafaev, Deputy Minister of Investment and Foreign Trade. "Going forward, we will continue to work with lenders, development partners, and the private sector to promote renewable energy solutions to fuel Uzbekistan's green growth."

IFC is one of the anchor lenders in the Zarafshon project, providing a $42 million loan while mobilizing $52 million from the Japan International Cooperation Agency and the Dutch Entrepreneurial Development Bank (FMO). Further parallel loans will be provided by the European Bank for Reconstruction and Development, Asian Development Bank, Natixis, and First Abu Dhabi Bank.

Wiebke Schloemer, IFC Director, Türkiye and Central Asia, said, "The Zarafshon wind power plant is a landmark project, which demonstrates that the Uzbek government's recent energy sector reforms are conducive to attracting private participation in the development of energy projects in the country. We are very proud to support these reforms and help green Uzbekistan's power sector by adding wind power as an energy source."

IFC has been advising the government of Uzbekistan on attracting private investments in the energy sector on transparent and competitive terms and in line with the highest environmental, social, and governance standards since 2018. Supporting renewable energy projects and opening the sector to private investments is a pillar of IFC's work in Uzbekistan and the Central Asia region.

 

Source: ifc.org

Nail Hannigan, Director of Financial Affairs at Masdar UAE, assessed the current work on the development of renewable energy sources in Uzbekistan, the company's projects and their prospects.

- The first of them is that the Head of State has a clear strategy and big ambitions to get more than 25% of energy from renewable sources by 2030.

At the same time, a strong legal framework in this area strengthens the confidence of foreign investors in your country.

A big plus is the support of the country's renewable energy projects by international financial institutions, including the International Finance Corporation, the European Bank for Reconstruction and Development, and the Islamic Development Bank.

We are currently implementing five projects in Uzbekistan. In the future, we want to actively participate in tenders and implement more joint projects. At the same time, there are plans to expand the already started joint projects.

We entered the country's market through the Nur Navoi project and are proud to be one of the first in Uzbekistan in the field of renewable energy sources.

We are confident in the long-term nature of our cooperation and we would like to note that today we have partnership plans for at least 25-30 years.

This is natural because now we are implementing five projects here with a total capacity of about 1,500 MW. And taking into account the fact that Uzbekistan has set itself big and ambitious goals for the development of renewable energy, we have a lot of joint work to do.

Moreover, the state creates all the necessary opportunities and favourable conditions for this, which constantly increases the investment attractiveness of the country for investors like us. Therefore, we are focused on long-term cooperation with Uzbekistan," said Nail Hannigan.

 

Source: minenergy.uz

On September 3 this year, as part of the visit of the government delegation of Uzbekistan to the Russian Federation, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held a meeting with representatives of a number of large Russian companies representing such areas as construction, textile industry, agriculture, retail, green economy and real estate.

In the format of open dialogue, the prospects for cooperation in many areas were discussed, including the joint implementation of investment projects, the exchange of experience and technologies, the introduction of innovations, the attraction of investments in the economy of Uzbekistan and other issues of mutual interest.

 

Soure: mift.uz

On September 1-2 this year, as part of the visit of the government delegation of Uzbekistan to the Russian Federation, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held a series of meetings and negotiations with members of the Government of the Russian Federation, during which the current state and development prospects were discussed bilateral trade, economic and investment cooperation, as well as deepening cooperation in the fields of transport and agriculture.

So, on September 1, during negotiations with the Deputy Prime Minister of the Russian Federation Denis Manturov, a joint analysis of the possibilities of increasing the supply of demanded products of Uzbek manufacturers to the Russian market, including textile, electrical household products and building materials, was carried out. In addition, the progress of the implementation of joint investment projects, which ensure the expansion of industrial cooperation between the enterprises of the two countries, was considered in detail.

During the conversation with Deputy Prime Minister of the Russian Federation Alexei Overchuk, issues of trade and economic cooperation were discussed. Particular attention was paid to the expansion of investment interaction, strengthening cooperative ties in industry and development of international transport and logistics communications in Central Asia.

At a meeting with the Minister of Economic Development of the Russian Federation Maxim Reshetnikov, issues of increasing mutual supplies of products with high added value, expanding interregional cooperation and other issues of the current Uzbek-Russian cooperation agenda were discussed. The parties also discussed holding upcoming bilateral events this year.

On September 2, the meeting with the Deputy Prime Minister of the Russian Federation Victoria Abramchenko was devoted to the issues of ensuring food security and increasing mutual supplies of agricultural products. It was noted that for the period January-July this year, the export of farm products from the Republic of Uzbekistan to the Russian Federation amounted to $222.5 million, an increase of 52% compared to the same period in 2021. An agreement was reached to increase cooperation in this direction.

Also on September 1-2, meetings were held with the leadership of the Ministry of Energy, the Ministry of Agriculture of the Russian Federation, and JSC Russian Railways, as well as with representatives of large Russian companies. Agreements were reached on deepening cooperation and implementing investment projects in agriculture, developing transport and logistics communications in Central Asia, as well as on other issues of mutual interest.

 

Source: mift.uz

The Center for Economic Research and Reform (CERR) estimated the projected GDP figures for 2022 using a novel approach (nowcasting) which is based on high-frequency big data.

Based on the collection of about 250 weekly Google search results for 20 categories of indicators combined with estimates of prices for individual products (including changes in gold and oil prices) as well as fundamental variables of gross imports and reserves, a weekly forecast of the GDP of the Republic of Uzbekistan was carried out.

Uzbekistan's economy has been significantly affected by negative external shocks. The analysis takes into account the negative factors that the country was exposed to in the 1st half of 2022 (political unrest in Kazakhstan, large-scale power outage and the conflict in Ukraine).

The forecasts revealed specific aspects of GDP that cannot be identified in quarterly figures. In particular, a significant slowdown was observed during February and March of this year. Nevertheless, the subsequent economic recovery was also significant.

Uzbekistan's economic growth in the first quarter is usually lower due to seasonal factors. During 2018-2021, Uzbekistan's GDP growth in the first quarter was on average 0.43% less than the annual GDP growth. Therefore, negative factors exacerbated the economic consequences and slowed down GDP growth in the first quarter of 2022.

Forecasted weekly growth rates of GDP for 2022

Taking into account the above-mentioned factors, as well as consolidating weekly forecast indicators of GDP dynamics, the estimated economic growth in the 1st half of 2022 compared to the 1st half of 2021 amounted to 4.99%.

Thus, there is a growing trend in the weekly dynamics of GDP for the 2nd half of 2022, which will increase the GDP growth rate by at least 0.68% yearly. Accordingly, real GDP growth for 2022 is projected at 5.77%.

Based on this, the projected range of economic growth in Uzbekistan is set at 5.67%-5.87% for 2022.

For reference: nowcasting is a method that is widely used in the development of national economic policy in many developed countries, including the Bank of England, the European Central Bank and the OECD. Models of this kind have similar characteristics to current traditional models, but significantly exceed them during "crisis" episodes (for example, 2008-2009, 2020 and the current situation). The current method is relevant because the main statistical data are available with a significant delay, especially for quarterly GDP figures. This forecast is also used to assess specific aspects of the state of the economy, such as the labor market and the welfare of the population.

 

Source: review.uz

On August 28 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev visited the Uzcharmsanoat Association. During the presentations, the leadership of the Association provided detailed information on the current state and prospects for the development of the leather and footwear industry.

The following data are given: if in 2017, enterprises of the industry implemented 17 projects worth $18 million and created 800 jobs, then in 2021 there will be 112 projects worth $202 million with the creation of 12,000 new jobs. Thanks to government support, by 2026 it is planned to implement 555 projects worth over $1 billion, which will create 50,000 new jobs.

Production volumes showed a similar growth: in 2017, products worth 760 billion soums were produced, in 2021 - for 4.4 trillion soums, and in 2026 it is planned to make leather and footwear products for 18.6 trillion soums. In terms of exports, growth was also observed - so in 2017 products worth $105 million were delivered to foreign markets, in 2021 - by 421 million dollars, and in 2026. industry enterprises intend to export goods worth $1.2 billion.

In the course of a detailed analysis of the prospects for the development of the leather and footwear and fur and fur industries, problems and proposals were voiced in terms of high-quality procurement of raw materials, optimization of the production process, implementation of projects as part of clusters, in small industrial zones. In addition, the topics of increasing exports of products, improving the system of training and retraining of personnel, participation of enterprises from Uzbekistan in specialized international exhibitions, financing innovative projects in the industry, and creating shopping centres in the country and large wholesale centres abroad were touched upon.

Based on the discussion results, the Association's leadership was instructed to study the issues raised in detail and develop further steps for the integrated development of the industry.

 

 

On August 25 this year, as part of the visit of a government delegation, to Minsk, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodzhaev held talks with Deputy Prime Minister of the Republic of Belarus Petr Parkhomchik.

During the meeting, the parties exchanged views on the current Uzbek-Belarusian cooperation.

In particular, the possibilities of organizing joint production of special mining and agricultural equipment in Uzbekistan were considered. An agreement was reached to speed up the negotiation process and approve a detailed "Roadmap" for the implementation of the project.

The areas of industrial cooperation and investment cooperation were named promising. In this context, the possibility of implementing new projects was discussed. In particular, it was about the joint production of cable and wire products in the Tashkent region with the Energokomplekt company.

During the talks, the potential for cooperation in the furniture industry was identified as special. The parties agreed to study the possibilities of cooperation and, based on a detailed analysis, develop specific joint investment projects.

Following the talks, a decision was made to prepare a joint action plan to implement the agreements and initiatives reached during the meeting.

 

Source: mift.uz

In Minsk, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodzhaev held a meeting with the Minister of Agriculture and Food of Belarus Igor Brylo.

During the conversation, issues of mutual supplies of food products, the implementation of joint investment projects and cooperation in the field of research activities were discussed.

The process of formation on an annual basis of a joint balance of demanded food products was analyzed, as a result of which an agreement was reached to increase systemic mutual supplies of potatoes, grains and oilseeds, fruits and vegetables using forward and futures contracts. The parties agreed to form a list of reliable suppliers and importers of agricultural products to establish direct supplies of agricultural crops, as well as to adopt a Roadmap that provides for organizational, financial and insurance mechanisms for mutual supplies of food products in demand. 

The prospects for the joint implementation of a project to create a meat and dairy complex in the Yangiyul district of the Tashkent region together with Gomelagropromproekt were discussed. An agreement was reached to intensify the process of implementing the project, including the involvement of funds from Belarusian investment structures.

The parties also expressed mutual readiness to support the establishment of cooperation between scientific and practical centres and research institutes of the two countries in the field of crop production, seed production and veterinary medicine with the organization of mutual visits to agree on a bilateral partnership program.

Following the meeting, the parties expressed their commitment to intensify interaction within the discussed areas of cooperation.

 

Source: mift.uz

Uzbekistan’s president has returned from a trip to Saudi Arabia with $14 billion in promised investments, his office says.

Of that, $12 billion is earmarked to address chronic energy shortages.

The agreements include a pledge for Saudi firm ACWA Power to build a 1.5 GW wind farm in Karakalpakstan. Uzbekistan’s Energy Ministry says it will be the world’s largest and will power 1.65 million homes. ACWA Power has already begun building two smaller wind farms in the Bukhara region.

This is welcome news to Uzbeks still sweating their way through a season of shortages.

With rising summer temperatures and drought putting strain on Central Asia’s hydropower networks, Uzbekistan has begun to experience electricity shortages in the hottest months in addition to the traditional blackout season of winter.

And plans for a Russian-built nuclear power plant look like no sure thing with Moscow under international sanctions. If the Saudis make good on their promises, analyst Kamoliddin Rabbimov suggested on his Facebook page, Uzbekistan may no longer need the Russian plant, which appears to be behind schedule.

ACWA also agreed to research the future of green hydrogen in Uzbekistan.

Shavkat Mirziyoyev and his Saudi hosts did not ignore fossil fuels altogether. A third document signed between the two Energy Ministries envisions investments in Uzbekistan’s natural gas industry. Uzbekistan is one of the world’s largest gas producers, but increasing domestic demand has forced it to phase out exports

Saudi media also reported that the two sides had inked an agreement to increase Uzbek labour migration to the kingdom. Millions of Uzbeks currently work in Russia.

At a meeting with the heads of some 20 large companies, Mirziyoyev pitched his privatization drive, an effort to roll back a legacy of statist policies pursued by the late Islam Karimov during his 25-year rule. By 2025 his government hopes to privatize, fully or partially, 75 percent of Uzbekistan’s nearly 3,000 state-owned enterprises (SOEs) and other assets, such as property. Many are small firms, but also up for sale are large enterprises in strategic sectors including energy and power generation; mining and minerals; and transportation. SOEs account for 55 percent of Uzbekistan’s economy. In the banking sector, that rises to over 80 percent, which Tashkent wants to cut by half.

But banks took a backseat in Mirziyoyev’s presentation. Whereas in the past "transparency" has been the buzzword at these types of conclaves, in Jeddah Mirziyoyev tailored his message to focus on "green energy” – exactly the kind of diversification that Saudi ruler Mohammed bin Salman has been pushing.

Mirziyoyev received an audience with the crown prince, making this the first state visit since Karimov visited in 1992. (Mirziyoyev attended a 2017 summit in Riyadh with Muslim countries and the United States.) The president also performed the umrah pilgrimage to Mecca. Before the trip, he signed a decree adding Saudi Arabia to the list of countries whose citizens can visit Uzbekistan visa-free.

 

Source: eurasianet.org

In January-June 2022, foreign investments and loans in fixed capital were disbursed for a total of 48.0 trillion sum, the growth rate compared to the corresponding period in 2021 amounted to 91.8%.

In its composition, investments through foreign direct investment and loans amounted to 105.2% compared to the corresponding period of 2021, and foreign loans guaranteed by the Republic of Uzbekistan were 44.7%.

 

Source: stat.uz

On August 24 this year, within the framework of the visit of the government delegation to Minsk, a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodzhaev and the Deputy Prime Minister of the Republic of Belarus Leonid Zaits, at which the course of the current trade, economic and investment cooperation between the two countries.

During the conversation, the parties expressed mutual interest in reaching breakthrough agreements in the framework of the upcoming 9th meeting of the Joint Intergovernmental Commission on Bilateral Cooperation between Uzbekistan and Belarus, which will expand cooperation in the areas of trade and economic cooperation, agriculture, healthcare and pharmaceuticals, transport, education, scientific and technical activities, cultural and humanitarian cooperation and tourism.

Since the beginning of this year, due to the increase in mutual deliveries of food products, non-ferrous metals, textiles, chemical products, petroleum products, timber and ferrous metals, trade turnover has grown by 12% compared to the same period last year and exceeded $250 million. In order to further expand the range and increase the volume of mutual trade, the parties agreed to sign a joint "Road Map" and agreed on the adoption of appropriate measures to create trading houses on the territory of the two countries with the organization of permanent "showrooms", trade and logistics centres in the territories of the two countries. countries.

The prospects for expanding industrial cooperation were discussed. Interest and readiness were expressed to provide all possible assistance to Belarusian companies in the implementation of projects to launch pharmaceutical production, localize the production of Belarusian tractors, as well as commercial, road construction and agricultural equipment in Uzbekistan.

The parties paid special attention to the organization of joint farms for the export of finished agricultural products to the markets of third countries, as well as the establishment of direct supplies of Uzbek fruits and vegetables to the Belarusian market based on the available resources and capabilities of the Agroexpress project.

As a result of the talks, further steps were identified to deepen the partnership and put into practice the agreements reached.

 

Source: mift.uz

The 9th meeting of the Joint Intergovernmental Commission on Bilateral Cooperation between the Republic of Uzbekistan and the Republic of Belarus was held in Minsk. The meeting was co-chaired by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Zh.Khodzhaev and Deputy Prime Minister of the Republic of Belarus L.Zaits. The heads of key ministries and departments of the two countries also took part in its work.

As part of the plan, a wide range of issues of investment, trade, economic, industrial, scientific, technical, cultural and humanitarian cooperation were considered.

It was noted that thanks to the efforts of the Heads of the two states, relations between Uzbekistan and Belarus are characterized by high and sustainable development dynamics, which creates prerequisites for deepening cooperation in priority areas.

The significant progress achieved within the trade and economic partnership framework between the two countries was emphasized. In 2021, the trade turnover between Uzbekistan and Belarus increased by more than 40% and amounted to $337.3 million. An agreement was reached on the establishment of a Working Group on the development of mutual trade among representatives of the responsible ministries and departments, as well as on the development and signing in the near future of an Agreement on the use of an electronic system for certification of the origin of goods.

Positive trends in the development of investment cooperation and industrial cooperation were discussed. Over the past three years, the number of enterprises with the participation of Belarusian capital in Uzbekistan has quadrupled and amounted to 157 units. In just seven months of this year, 58 enterprises were created. In turn, 101 enterprises with the participation of Uzbek capital operate in Belarus. Great prospects were noted for the implementation of new joint projects in mechanical engineering, textile, food, pharmaceutical industries, electronics and the production of building materials based on effective cooperation in the production of high-value-added products and their subsequent export to third countries using the logistics capabilities of the two states.

An exchange of views took place on issues of cooperation in IT and innovation. An agreement was reached to hold the 2nd meeting of the Belarusian-Uzbek Commission for Cooperation in Science and Technology in a full-time format in the first half of 2023 in Belarus, as well as to supplement the approved joint Executive Program for scientific, technical and innovative cooperation with new initiatives and projects in the field of IT, digitalization and high technologies.

Particular attention was also paid to cultural and humanitarian cooperation, in particular, interaction in the development of education and tourism. Readiness was expressed to organize special tour packages for Belarusian citizens, such as "Tourism for the family", "Sunny holidays", "Vitamin tour", and "Study and Travel". Belarusian colleagues were invited to take part in the work of the Tashkent International Tourism Fair in November this year and the 25th session of the General Assembly of the UN World Tourism Organization in 2023
in Samarkand. An agreement was reached on the development and approval of a joint Roadmap for 2023-2026. between the leading higher educational institutions of Uzbekistan and Belarus, as well as holding the Days of Belarusian Cinema in Uzbekistan and the Days of Uzbek Cinema in Belarus.

As a result of the meeting, the final protocol was signed, reflecting the key agreements reached during the events, as well as the Roadmap for the implementation of the agreements reached following the mutual visits of the Heads of Government of the two countries.

 

Source: mift.uz

In January-June 2022, 48 trillion UZS, or 39.4% of the total volume of fixed investments in fixed assets in the Republic of Uzbekistan, came from foreign investments and loans.
In the general structure of assimilated foreign investments and loans, foreign investments reached 18 trillion. UZS and, accordingly, 29 trillion. Soums fall on foreign loans.

 

Source: stat.uz

According to the results of January-July, the largest volume of communication and informatization services in the country was recorded in the city of Tashkent - over 7 trillion. soums.

According to the State Statistics Committee, for the first 7 months of the year in Uzbekistan, the volume of communication and informatization services amounted to more than 12 trillion. soums.

At the same time, in Ferghana (637.6 billion soums), Samarkand (582.4 billion soums), Tashkent (464 billion soums), Andijan (460 billion soums), Kashkadarya (422 billion soums), Namangan (407.2 billion soums) , Bukhara (344.2 billion soums), Surkhandarya (336.7 billion soums), Khorezm (289 billion soums), Jizzakh (222.2 billion soums), Navoi (195.3 billion soums), Syrdarya (155.9 billion soums) regions, as well as in the Republic of Karakalpakstan (301.7 billion soums).

 

Source: dunyo.info

On August 18, the President of the Republic of Uzbekistan Shavkat Mirziyoyev received the President of the Islamic Development Bank (IDB) as part of a state visit to Saudi Arabia Muhammad bin Sulayman Al Jassir.

The President has once again congratulated the IDB President on the successful holding of the 46th Annual Meeting of the Bank’s Board of Governors in Tashkent last September.

The President of Uzbekistan expressed satisfaction with the dynamic development of partnerships with the IDB, emphasizing the strategic role of the Bank in promoting the program of large-scale reforms in Uzbekistan.

Currently, the projects for the modernization of housing and communal infrastructure, rural development, healthcare, education, water management, entrepreneurship and others are being implemented in our country together with the IDB for a total of $1,2 billion.

During the negotiations, the issues of further expansion of cooperation were discussed. A separate program has been adopted, which provides for the Bank's approval by the end of the year of financing of the most important projects and programs in the amount of 1,6 billion dollars. As noted, this will be an important step towards bringing relations with the IDB to a qualitatively new level and adopting a country cooperation program for 2023-2026.

The importance of the earliest organization of the activities of a full-fledged representative office of the Bank in Tashkent and the introduction of new financing instruments were noted.

The confidence was expressed that the Fund for the Expansion of Economic Opportunities of Uzbekistan will be able to make an important contribution to solving the tasks of reducing poverty, improving the welfare of the population, and developing entrepreneurship, especially among women and the youth.

There was an exchange of views on the cooperation in implementing the important regional transport infrastructure projects, environmental programs in the Aral Sea region, as well as the provision of humanitarian assistance to Afghanistan and its socio-economic recovery with the support of a separate IDB trust fund.

An agreement was reached to consider the dates for holding the next meeting of the Arab Coordination Group, headed by the Bank and including the leading financial institutions of the Islamic world in Tashkent.

 

Source: president.uz

The President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting with heads of the leading companies and financial structures of the Kingdom of Saudi Arabia in the city of Jeddah.

The Minister of Investment Khalid al-Falih, as well as heads of around 20 major companies and corporations of the kingdom, such as ACWA Power, SABIC, Saudi National Bank, Al Rajhi Capital, Ma'aden, Petromin, Jamjoom Pharma, SEDCO, Salic, Albawani, Ajlan & Bros, Desert Technologies and others, attended the event.

During the course of foreign visits of the President, meetings with representatives of the business community are traditional, they allow to determine the common interests, prospects of industrial cooperation and investment collaboration.

Uzbekistan and Saudi Arabia have tremendous potential to bring relations to a qualitatively new level, primarily in the trade and economic sphere. In recent years, meetings of the Intergovernmental Commission and the Business Council are held regularly. Trade volumes are growing, and joint ventures are being created.

The President noted that during the talks held yesterday with the Crown Prince, agreements were reached on a multiple increases in bilateral trade, full support for business initiatives and financing of investment projects.

All this opens up broad opportunities for business partnerships. In particular, Uzbekistan is creating the most favourable conditions for entrepreneurs and expanding the amount of foreign capital.

The experience of a number of Saudi companies, which have been successfully operating in Uzbekistan for several years, was noted. For instance, a major energy project worth $2 billion 600 million in cooperation with ACWA Power has been launched.

The participant's attention is drawn to the unprecedented outcomes of the Uzbek-Saudi Business Council held prior to the visit. In particular, following the visit, the agreements on the implementation of projects worth more than $14 billion have been signed.

It is emphasized that there have been no such breakthrough agreements for 30 years, and work on creating better conditions for the Saudi partners will be extended.

The Uzbek President called on Saudi companies to work even more closely to develop and implement new projects.

During the meeting, President Shavkat Mirziyoyev revealed his vision of further building bilateral cooperation. Thus, Saudi business is invited to participate in the privatization processes of large banks, and industrial and infrastructure facilities held in Uzbekistan. One of the most promising for the implementation of joint projects is named the sphere of “Green Energy” and “Green Economy”.

The Uzbek side, as noted, is ready for active joint work on the construction of wind power plants, production of «green» hydrogen, development of alternative energy, deepening of the digitalization of industry and conducting joint scientific research.

The President emphasized Uzbekistan’s interest in expanding partnerships in the areas of the digital economy, bio- and nanotechnology, software, innovation and artificial intelligence.

It is proposed to pay special attention to the implementation of projects on the production of food products, in the spheres of healthcare and tourism.

Furthermore, in Uzbekistan, with the participation of the Saudi Fund for Development, it is planned to continue work on improving infrastructure projects in the areas of water and electricity supply.

Referring to the invitation to cooperation, the heads of companies, holdings and corporations of Saudi Arabia highly appreciated the conditions created in Uzbekistan for active business. In their speeches, they shared their plans to implement joint projects in the country, and their vision of the prospects for developing contacts and interaction in a wide range of areas.

President Shavkat Mirziyoyev carefully listened to the proposals and opinions of the Saudi partners and outlined that all projects will be closely monitored.

The responsible officials have been instructed to adopt a complex «Roadmap» with the indication of effective mechanisms and specific terms of implementation. Thus, the heads of the relevant ministries and departments will be personally responsible for the implementation of all the agreements reached as a part of the visit.

 

Source: president.uz

On the 9th of August, this year, in order to ensure the fulfilment of the instructions given during the presentation to the head of state on the development and diversification of international transport corridors, a delegation headed by the Minister of Transport Ilkhom Makhkamov visited the Republic of Poland.

 

During the visit, a meeting was held in Warsaw with the Deputy Minister of Infrastructure of Poland, Rafał Weber, and the President of the Polish Association of International Road Carriers (ZMPD), Jan Buček. At the meeting, the current state and prospects for the development of bilateral cooperation in the field of international freight transport by road were discussed.

 

In particular, an exchange of views took place on the creation of favourable conditions for national carriers in the process of international freight traffic, the exchange of additional permits for bilateral, transit and freight traffic to/from third countries, the development of alternative transport corridors, based on the current situation.

 

The parties agreed to exchange an additional 1,000 permits in order to develop cooperation in the field of international freight transportation by road, as well as to hold a meeting of the Joint Commission on Transport Issues in Tashkent at the first opportunity.

 
Source: mintrans.uz

On August 11 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev received Ambassador Extraordinary and Plenipotentiary of the Kingdom of Saudi Arabia (KSA) to the Republic of Uzbekistan Yusuf al-Utaibi.

During the talks, the current state and prospects for the development of Uzbek-Saudi relations, cooperation within international organizations, as well as preparations for a number of bilateral events in the near future were discussed.

The parties highly appreciated the intensification of the multidisciplinary dialogue between the two countries in recent years and, in particular, the dynamic expansion of partnership in the investment, energy and trade and economic spheres.

It was noted that the volume of mutual trade since the beginning of this year has increased 13 times compared to the same period last year, mainly due to the increase in mutual supplies of textiles, fruits and vegetables, and plastic and metal products. Emphasizing the existence of great opportunities for deepening trade relations, the parties expressed mutual interest in intensifying work to expand the range and increase the indicators of trade.

The parties noted with satisfaction the successes achieved in the field of investment cooperation. Currently, the number of joint ventures with the participation of Saudi capital operating in Uzbekistan has reached 36 units, 4 large investment projects worth $2.7 billion are being actively implemented, as well as a number of socially oriented projects with a total value of $287 million. Mutual readiness was expressed for joint work to find new "points of growth" for investment partnerships and develop specific proposals for the implementation of promising investment projects in various industries.

Measures to prepare for the bilateral events scheduled for the near future, aimed at intensifying interaction between the business and government circles of the two states, were substantively considered.

Following the meeting, the parties agreed to maintain close contact in order to accelerate the promotion of joint projects and initiatives, as well as monitor the implementation of existing agreements.

 

Source: mift.uz

On August 11, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held a meeting with the Governor of one of the largest provinces of the Republic of Korea Gyeongsangbukto Lee Chol U.

During the talks, the current state and prospects for the development of Uzbek-Korean cooperation were discussed with an emphasis on the areas of investment, trade and interregional cooperation.

In particular, the parties welcomed the opening of the Daegu Gyonbuk Machinery Cooperative marketing centre on the territory of Kor-Uz Textile Technopark, which took place in August this year. The Korean side expressed confidence that the centre will create every opportunity to deepen further industrial cooperation between the two countries, including the production of finished textile products with high added value for their subsequent export to the markets of third countries.

Opportunities were explored for establishing industrial cooperation between manufacturers in the regions of Uzbekistan and Korea, with a focus on the areas of "green" energy, electronics, automotive, pharmaceuticals and other promising areas. The prospects of organizing visits of delegations of business circles from Gyeongsangbukto province and various regions of Uzbekistan, holding joint business forums and negotiations in B2B and B2G formats were noted.

During the conversation, the prospects for cooperation in the field of vocational education were also considered. The Korean side expressed its readiness to assist in organizing the training of students from Uzbekistan in higher educational institutions of the province of Gyeongsangbukto with the prospect of their further employment in leading companies in the region. In addition, the importance of joint work on the implementation of joint start-up projects and the training of qualified personnel in the field of advanced technologies was noted within the framework of the signed quadripartite Memorandum between Inno Technopark and Akfa University from the Uzbek side and Gyeongbuk Technopark and Yongnam University from the Korean side.

Following the meeting, the parties agreed to hold talks on a regular basis, including via videoconferencing, in order to "align hours" on the implementation of current agreements, as well as to develop new areas of interaction.

 

Source: mift.uz

The infographics of the Center for Economic Research and Reforms present the socio-economic aspects of the Development Strategy of “New Uzbekistan" for 2022 - 2026.

To continue the ongoing reforms in all areas, the draft Development Strategy of "New Uzbekistan" for 2022-2026 and the "road map" for its implementation were presented for public discussion.

The draft Development Strategy is based on the election program of President Shavkat Mirziyoyev and consists of seven priority areas. Moreover, the tasks identified in the speech of the head of state at a joint meeting of the chambers of the Oliy Majlis, dedicated to the inauguration of the newly elected President.

The third direction of the “New Uzbekistan” strategy - (the development of the national economy, ensuring its growth rates) is presented in the infographics of the Center for Economic Research and Reforms.

In particular, GDP per capita is expected to increase 1.6 times over the next five years, and Income per capita will reach 4,000 US dollars by 2030, thanks to which Uzbekistan will be able to join the list of "states with an upper middle-income level".

The average annual growth rate of GDP in 2023-2025 will be 6.5 %. The annual growth rate of lending to the economy is planned at 16-18 %.

In the field of ensuring macroeconomic stability, it is planned to reduce the annual inflation rate from 9% in 2022 to 5% by 2023, at the same time, it is planned to decrease the state budget deficit, which from 2023 should not exceed 3% of GDP. A transition to a program budgeting system is also planned. The Civil Budget will be adopted and 5% of the budget of each district will be directed to solving urgent issues, based on the proposals of the population. 50% of the funds allocated for the repair of internal roads will be distributed on the basis of public opinion.

The amount of annual external borrowings will not exceed 4.5 billion US dollars. At the same time, the national debt will remain below 60% of GDP.

 

Source: review.uz

On August 16-17 this year, the II Economic Forum will be held in Tashkent within the framework of the Chairmanship of the Republic of Uzbekistan in the Shanghai Cooperation Organization.

The forum, held for the first time in June 2021 in Dushanbe (Tajikistan), has established itself as an effective dialogue platform that contributes to the development and further strengthening of partnerships within the Organization.

The main goal of the event is to draw the attention of the parties to the problems and prospects for the development of mutually beneficial trade, economic, investment, cultural and humanitarian cooperation, to develop effective measures to build up ties in the SCO space.

Plenary sessions, panel sessions, bilateral meetings, b2b contacts - the rich agenda of the Forum is designed to unlock the potential of the digital economy, green technologies, cooperation between regions, building up investment cooperation, industrial cooperation and other priority areas of partnership.

The SCO Economic Forum is intended to become an effective platform not only for establishing intergovernmental dialogue but also for interaction between representatives of business circles and enterprises, as well as for attracting investors to the regions of the SCO space.

 

Source: mift.uz

On August 3 this year, under the chairmanship of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev and with the participation of the heads of ministries and departments, industry associations, commercial banks, a meeting was held to discuss the preparation of the planned visit of the delegation of Uzbekistan to the Kingdom of Saudi Arabia.

Reports of responsible leaders on the work done in preparation for the visit were heard. Instructions were given to accelerate the development and approval of investment projects and trade agreements in the petrochemical, mining, construction, agriculture, medicine, banking and financial sectors to saturate the event agenda's content.

In particular, it was instructed to speed up the preparation of a package of joint projects for signing with Acwa Power, to negotiate with Dr Sulaiman Al-Habib Medical Group” and “Sabik” company, to prepare for signing a “Roadmap” for the implementation of joint projects with Al-Raji International. Instruction was also given to hold talks with Saudi companies to expand cooperation. On the sidelines of the visit, it is planned to sign a number of agreements and memorandums that secure the further development of cooperation between the two countries in the fields of energy, agriculture, innovative development, transport, education, tourism, sports, healthcare, etc.

Following the meeting, the heads of relevant ministries and departments were given additional instructions for the qualitative preparation of the upcoming visit.

 

Source: mift.uz

According to the results of January-June 2022, the share of industry in the GDP of the Republic of Uzbekistan amounted to 29.2%.

Navoi (72.3%) and Tashkent (49.3%) regions have the largest shares of industry in the sectoral structure of GRP. The smallest shares of industry were noted in Surkhandarya (6.1%), Khorezm (15.7%) and Jizzakh (15.9%) regions.

 

Source: stat.uz

A working group headed by the First Deputy Minister of Investments and Foreign Trade of Uzbekistan Aziz Voitov and consisting of the heads of ministries, departments and commercial banks yesterday got acquainted with the activities of a number of investment projects in the Andijan region.

According to the Ministry of Investments and Foreign Trade (MIFT), the purpose of the visit is to analyze the current state of socio-economic development on the ground, provide support to entrepreneurs in resolving emerging issues, and develop proposals for using the untapped resources of the region to enhance investment, production and export development.

The starting point of the route was a textile factory organized by Sayyora Favvorasi LLC in the Bustan region. The $10.5 million project covers an area of ​​1.5 hectares. Here, on equipment imported from Switzerland, Germany and Japan, 5.4 thousand tons of knitwear per year are produced. High quality allows the company to export 100% of its products to European countries.

When getting acquainted with the activities of the enterprise "Khantex Oil" LLC, specializing in the production of vegetable oil, special attention was paid to technological equipment from Turkey, Italy, Bulgaria, Spain, India and Germany. Thanks to the built-in production chain, on average, 72 thousand tons of seeds are processed here annually, and 10% of the production worth 1 million dollars is exported to the EU countries.

Another address of the visit was the company "Elegant shoes" LLC. The cost of the investment project is $2.5 million, the production capacity is 1 million pairs of shoes per year. All products are sent to foreign markets, with an annual export volume of 12 million dollars. 500 specialists are employed here, 200 of which are young people from the lists of the “youth notebook” and 250 women from the “iron notebook”.

In total, there were 9 production facilities on the route of this day, during the visit of which the working group paid special attention to the problems faced by entrepreneurs. Responsible managers were instructed to take measures to resolve the issues raised with the introduction of a system for monitoring the execution of instructions.

Also, during the visit to New Andijan, a meeting with manufacturers and exporters of the region was held in the Great Conference Hall. More than 100 entrepreneurs took part in the dialogue. In a relaxed and trusting atmosphere, 87 problematic issues that entrepreneurs face in the course of their direct activities were listened to and analyzed in detail, and algorithms for prompt resolution of each of them were developed. In addition, the voiced proposals to improve the investment attractiveness of the region were accepted for consideration in the development of comprehensive solutions at the republican level.

On August 3 this year, the Forum of Heads of Regions of the Shanghai Cooperation Organization (SCO) countries began its work in Tashkent. The event is held within the framework of the chairmanship of Uzbekistan in the organization and is intended to become a permanent dialogue platform for deepening interregional cooperation in a number of priority areas.

The agenda of the Forum was opened by a plenary session, which was attended by heads of ministries and departments, heads of regions and heads of delegations from Russia, China, India, Pakistan, Kazakhstan, Kyrgyzstan and Tajikistan.

The Uzbek delegation was headed by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev. In his speech on the sidelines of the forum, he noted the importance of further development of multifaceted strategic cooperation between the SCO member countries and emphasized the main goal of the current dialogue - the comprehensive deepening of interregional cooperation in trade, economic, investment, cultural, humanitarian and other priority areas.

In the context of trade and economic cooperation, it was noted that despite the ongoing pandemic, the trade turnover of Uzbekistan with the SCO member states in 2021 increased by 24% and exceeded $20 billion. For the first half of 2022, the figures increased by almost 30% to $12 billion. To maintain positive dynamics, a Joint Action Plan for the development of intra-regional trade within the Organization for 2023-2025 is being developed. The document, which is expected to be signed at the highest level this fall, includes measures to remove trade barriers, unify technical regulations, digitalize customs procedures, and facilitate mutual access to markets, which will bring intraregional trade between the SCO countries to a completely new level.

The achieved results and prospects for the development of industrial cooperation, where positive dynamics are also observed, are noted. The number of enterprises in Uzbekistan with the participation of the capital of the SCO member countries over the past few years has grown 4 times, exceeding the mark of 7.5 thousand. The volume of attracted investments from the countries of the Organization at the end of 2021 amounted to $ 4.6 billion, which indicates the presence of mutual interest to establish a joint business partnership.

An effective platform for the implementation of new joint projects within the framework of the Organization is called upon to become the industrial zone "Uzbekistan - SCO", which is being created in Samarkand. In order to fully reveal the possibilities on the territory of the industrial zone, it was also proposed to create a Center for the Development of SCO Investment Projects, the main task of which will be the mobilization of industrial, infrastructure, raw materials and human potential.

In addition, the Uzbek side put forward specific proposals regarding the intensification of cooperation in the field of food security and agriculture, the expansion of partnerships in the areas of ecology, health, as well as pilgrimage tourism and other issues.

The heads of delegations of the SCO member states in their speeches noted the fruitful chairmanship of Uzbekistan in the organization and expressed their vision for the further development of dialogue within this dialogue platform between the regions.

The event continued with panel sessions, where in an open dialogue experts discussed ways to expand interregional cooperation in trade, economic, investment, cultural, humanitarian and other priority areas. 

On the second day of the Forum, a business forum in the round table format is expected, as well as a series of meetings and negotiations between representatives and heads of business structures. This format will allow business people to exchange contacts and identify real prospects for cooperation.

 

As it is well-known, the President held for the first time an open dialogue with entrepreneurs on August 20, 2021. This day is celebrated as Entrepreneurs’ Day in Uzbekistan, and it was decided to hold such a meeting annually.

The large-scale preparations are being carried out for this year’s meeting. A national headquarters and a call centre were established to collect questions and proposals from the entrepreneurs. To date, more than 7,2 thousand proposals and appeals have been received. The members of the national headquarters discuss, on a daily basis, the systemic and specific issues raised in the appeals. Most of the issues are solved on the spot.

The President specifically focused on the systemic problems in the sphere at the meeting.

According to the analysis, lending, allocation of land and facilities, protection of private property, bureaucracy in obtaining licenses and permits, tax administration, and infrastructure are the most pressing issues. The causes of these problems and measures taken to address them were discussed at the meeting.

The President emphasized the need for taking special control over each appeal, especially the issues concerning small and medium-sized businesses. It was instructed to continue trips to the regions, improve conditions and simplify business processes on the basis of the problems and proposals of entrepreneurs.

The decision was made to hold a week of dialogue with entrepreneurs in mid-August with the participation of ministers and khokims (governors). The closing event and culmination of the week will be the meeting of the President of the Republic of Uzbekistan with businesspeople.

 

Source: president.uz

Under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev, a meeting was held in the building of the Uzeltekhsanoat Association to analyze the current state of the electrical industry and the main tasks for the near future.

In particular, growth trends over the past five years were noted, as well as the results of the implementation of comprehensive measures as part of the implementation of the tasks set by the Head of State at a meeting on the development of the electrical industry held on May 6 this year.

In particular, in order to increase copper production in the Akhangaran district of the Tashkent region, a new Copper Cluster is being created. As part of 7 new projects worth $834 million, additional copper processing capacities in the amount of 128,000 tons will be created.

In addition, it was noted that in order to expand the production of renewable energy sources in the country, the Cluster of Alternative Energy Sources project is being implemented in the Chirokchi FEZ of the Kashkadarya region. 7 projects with a total capacity of 500 MW are being implemented here, and 500 new jobs will be created in parallel. Work is underway to create an innovative research and production cluster.

Within the framework of the meeting, a complex for the production of ultra-thin copper foil was also presented, which is planned to be created jointly with the South Korean company SK NEXILIS, as well as a testing laboratory complex organized by the association Uzeltekhsanoat.

As a result of the meeting, relevant instructions were given on the timing and quality of project implementation, as well as specific tasks were set for the further development of the industry as a whole.

 

Source: mift.uz

On August 2 this year, under the chairmanship of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev, a regular meeting of the Interdepartmental Commission for Work with the World Trade Organization (WTO) was held.

During the event, the results of the 5th meeting of the Working Group on Uzbekistan's accession to the WTO and the main tasks in the framework of the negotiation process on accession in the near future were discussed.

It was noted that during the multilateral and bilateral negotiations within the framework of the 5th meeting of the Working Group, the WTO member countries were provided with full and comprehensive answers to all questions about the country's foreign trade regime. Also, in accordance with practice, following the results of negotiations by the WTO member states at the end of July this year, sent additional written questions.

The main tasks have been determined until the end of this year. within the framework of accession to the WTO, incl. conducting active bilateral negotiations, as well as preparing and submitting separate additional documents.

It was emphasized that in order to hold the next, 6th meeting of the Working Group on Uzbekistan, by the end of this year. the republic needs to submit to the WTO Secretariat answers to additional questions of the member countries of the Organization and documents updated in accordance with requests, including technical regulation, intellectual property, etc.

The heads of ministries and departments should carry out high-quality, timely and comprehensive work to prepare for the 6th meeting of the Working Group.

In general, the members of the Interdepartmental Commission were given strict instructions to accelerate the process of Uzbekistan's accession to the WTO, ensure the implementation of all tasks at a high professional level and increase the level of coordination between ministries and departments on a systematic basis. At the same time, the inadmissibility of delaying the established deadlines was especially emphasized.            

As a result of the meeting, it was decided to hold weekly workshops to analyze the current accession status and develop proposals for the effective and high-quality organization of further negotiations on the republic's accession to the WTO.

 

Source: mift.uz

On August 2, President of the Republic of Uzbekistan Shavkat Mirziyoyev received the High Commissioner for National Minorities of the Organization for Security and Cooperation in Europe (OSCE) Kairat Abdrakhmanov, who is visiting our country.

Issues of establishing practical cooperation, as well as prospects for the implementation of joint projects and programs in the field of ensuring interethnic harmony and sustainable development were considered.

The current level of constructive dialogue and fruitful interaction with the OSCE institutions in priority areas - in the field of security, the spheres of the economy and ecology, and the humanitarian dimension, was noted with satisfaction. A "road map" is being jointly implemented, which provides for about 50 activities for the medium term.

During the meeting, the High Commissioner praised the policy pursued in our country to develop a culture of tolerance and humanism, ensure interethnic and civil understanding and harmony, and educate the younger generation on this basis.

Uzbekistan supported the initiatives of Uzbekistan to strengthen relations of friendship, good neighbourliness and multifaceted partnership in the Central Asian region, to promote peaceful development and economic reconstruction of Afghanistan.

Agreements were reached on holding a number of joint events - a regional seminar on ensuring interethnic harmony and presentation of international experience and recommendations of the OSCE, as well as the participation of the Uzbek delegation in a round table on interethnic relations.

It is also envisaged to implement projects in the field of multilingual education, including within the framework of the Central Asian Educational Program.

 

Source: president.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev met with the Minister of Trade of the Republic of Turkey Mehmet Mus.

During the meeting, the parties exchanged views on the development of bilateral cooperation with a focus on enhancing mutual trade.

It was noted that over the past five years, the volume of mutual trade has doubled and reached $3.4 billion in 2021. Mutual readiness was expressed to continue joint work in this direction with the aim of bringing the volume of the Uzbek-Turkish trade to $5 billion in 2023 and $10 billion in the foreseeable future.

In this vein, the parties agreed to speed up the process of agreeing on the Preferential Trade Agreement with a view to reaching its ratification in the near future. Further steps are also outlined to eliminate trade barriers, simplify customs procedures in the implementation of trade operations and introduce digital solutions in this area.

The participants of the meeting paid special attention to the issues of deepening cooperation in the transport and logistics sector. Given the positive dynamics of road and air transportation between the two countries, the parties spoke in favour of implementing practical measures to develop transport infrastructure and increase the volume of direct and transit cargo transportation between the two states.

As a result of the meeting, the parties outlined further steps for the practical implementation of the voiced initiatives and determined the format of interaction in all the areas considered.

 

Source: mift.uz

The first trilateral meeting of the ministers of foreign affairs, trade, economy and transport of Uzbekistan, Azerbaijan and Turkey took place. A completely new dialogue mechanism, organized in accordance with the agreements of the Presidents of the three states, made it possible to find points of convergence of interests on many priority issues.

Thus, at the meeting, an exchange of views took place on foreign policy issues and opportunities for regional cooperation, activities to realize the full potential of the partnership of the three countries in the fields of economy, trade, investment and transport.

It was announced that over the past five years, the trade turnover of Uzbekistan with Azerbaijan and Turkey has doubled, by the end of 2021 the figures reached $3.5 billion. First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Laziz Kudratov noted that there are all prerequisites to double the trade turnover between the countries. This is one of the priority areas for strengthening relations. Uzbekistan has the opportunity to increase the volume of supplies to Azerbaijan and Turkey of equipment, Uzbek textiles, footwear and food.

To facilitate mutual access to markets, it was proposed to create a new e-commerce platform. It will simplify the communication of entrepreneurs, exporters, and importers in order to sell goods at more affordable prices.

They also considered the possibility of implementing joint projects to develop industrial cooperation, and cooperation in the energy sector and use the high transit potential of the three countries. The priority is also the deepening of interregional cooperation, and in this regard, it was proposed to organize an annual interregional forum Uzbekistan-Azerbaijan-Turkey and hold its first meeting in Tashkent.

As a result of the meeting, the Tashkent Declaration was signed, which absorbed all the agreements on the sidelines of the Forum, the implementation of which is designed to strengthen cooperation on many regional and international issues.

 

Source: mift.uz

On August 1 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev met with a deputy of the House of Representatives (lower house of Parliament) of Japan Keiji Furuya.

During the talks, the parties discussed the current agenda of bilateral cooperation and the prospects for its expansion. It was noted that the Uzbek side is determined to continue working closely with the Japanese Parliament to fully implement all the agreements reached earlier and give new momentum to an intercountry partnership.

The important role of legislative bodies in maintaining a high level of relations between the two states and its positive impact on economic and social development was noted, in connection with which the parties expressed their readiness to consistently expand parliamentary diplomacy through the revitalization of the Japanese Parliamentary Friendship League and the Inter-Parliamentary Cooperation Group.

At the end of the talks, the parties reaffirmed their common position on the importance of establishing an exchange of experience in expanding the democratic foundations in the public administration system, exercising parliamentary control over executive authorities and improving the legislative framework, including regulating relations with businesses and investors.

 

Source: mift.uz

On August 2 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev met with the UN Resident Coordinator in the Republic of Uzbekistan Roli Astkhana.

During the conversation, cooperation was discussed within the framework of the implementation of approved projects to improve the standard of living in the Aral Sea region, as well as prospects for developing cooperation within the framework of the UN Multi-Partner Trust Fund for Human Security for the Aral Sea Region.

In particular, the parties considered the implementation of the multilateral "Roadmap" to ensure the ecological balance and socio-economic development of the Aral Sea region, adopted to implement the UN General Assembly Resolution "On declaring the Aral Sea region a zone of environmental innovations and technologies." The document includes 14 priority areas and 230 project proposals totalling $210 million.

The parties discussed the importance of further mobilization of investments in the region and the prospects for expanding the activities of the Trust Fund. So, up to now, within the framework of the Fund's strategy, about 244 million dollars have been mobilized to finance various projects in accordance with the priorities of the socio-economic development of the Aral Sea region. In addition, the Fund has already financed 5 joint programs, which, in turn, has affected the improvement of the quality of life of 48,000 residents of Karakalpakstan.

The parties expressed their commitment to the implementation of the next cycle of the Fund's activities for 2024-2030, in connection with which a new strategy of the Fund will be developed and work to attract donors will be intensified.

Following the meeting, the parties agreed on further steps for interaction within the discussed areas of cooperation
and agreed to maintain close contact for the prompt development of priority issues.

 

Source: mift.uz

Almost 7,000 requests were received from entrepreneurs for an open dialogue with the president. Most of them are related to the problems of financing, credit and subsidies, as well as the tax system and land allocation.

As of August 1, entrepreneurs sent 6916 appeals for an open dialogue with the President of Uzbekistan Shavkat Mirziyoyev. This was reported by the press service of the Ministry of Investment and Foreign Trade.

In particular, 6344 (91.7%) statements represent individual business issues, and 554 (8.3%) concern systemic issues. In 2021, the share of personal problems accounted for 86% of the total number of requests.

Financing, lending and subsidies remain the most urgent problem for entrepreneurs - the headquarters received 2119 (30.6%) applications on this issue. Next come the appeals related to the tax system (755/10.9%) and the allocation of land (707/10.2%).

Businesses also filed 260 applications regarding engineering and communication infrastructure, 159 - corruption and bureaucratic obstacles, 90 - allocation of buildings and privatization, 90 - activities of government agencies and their intervention in the economy, 87 - ideas to start a business, 85 - trade, including tariff and non-tariff customs obstacles.

In addition, the republican headquarters received 73 appeals for the protection of private property, 66 for benefits and preferences, 57 for the construction sector, 51 for issuing permits and licenses, and certification, 24 for the activities of the stock exchange, and 10 for public procurement.

Last year, about 42% of requests were for interest rates and short-term loans, and 21% for access to land and buildings.

In the context of regions, Tashkent is the leader in terms of the number of applications received - 613 (8.9%). Next come Surkhandarya (605), Kashkadarya (580), Namangan (571), Samarkand (558) and other regions.

Entrepreneurs could submit problems and suggestions for their activities by July 31st. The second open dialogue with the head of state is scheduled for August 20.

 

Source: www.gazeta.uz

The Embassy of our country organized online negotiations between the Deputy Khokim of the Tashkent region Nazhmiddinhoja Sharipov, representatives of the Foreign Investment Promotion Agency under the Ministry of Investments and Foreign Trade of Uzbekistan and the director of the Malaysian company LJACK Tew Sing Chew regarding the possible implementation of a copper processing project.

The products manufactured by the LJACK company founded in 1998 are exported to 20 countries of the world, including all the states of Southeast Asia. The company has its own research and development center to continuously upgrade the production line and develop new products.

During the meeting, the Malaysian side was informed about the procedure for purchasing raw materials for the implementation of the copper cathode processing project, as well as about the allocation of land, infrastructure and labor provided by the project.

In turn, the head of the Malaysian company said that this project will be implemented in two stages, the cost of the project at the first stage is about 2 million US dollars, and the products will be fully exported.

As a result of negotiations between the parties, an agreement was reached that the head of the Malaysian company would organize a trip to the Tashkent region to study the possibility of implementing the project.

 

Source: dunyo.uz 

An article about the potential of Uzbekistan in the textile sector has been posted on the professional Belgian Internet platform of the fashion industry Fashionunited.

It reports that in March the International Labor Organization (ILO) confirmed that Uzbekistan had succeeded in completely eradicating forced and child labour from the cotton production cycle, and the Cotton Campaign lifted the global boycott of Uzbek cotton.

“Now the ILO is calling on international buyers to return to the country, which is counting on international companies and retail chains to buy Uzbek cotton again,” the publication says.

“The textile sector of Uzbekistan is once again becoming one of the key sectors of the country’s economy, employing about 350,000 people in 2021,” the article says. - In 2021, textile export growth doubled from the previous year, reaching US$3 billion. Exports are expected to reach $3.8-4.3 billion in 2022 and $7 billion in 2025, putting Uzbekistan on a par with countries like Sri Lanka and Pakistan.”

It is noted that in general in Uzbekistan there are more than 130 economic clusters engaged in the cultivation and processing of cotton, which accounts for almost 18% of the annual cotton production. As a result, fibre processing increased by 2.5 times in just two years.

It is emphasized that the international textile industry is again interested in Uzbekistan. With reference to the German agency Berliner Korrespondentenbüro, it is noted that there are many factors that again make Uzbekistan attractive for German and international companies: in addition to the availability of raw materials, the country has low production costs, a motivated workforce and many years of production experience.

“Moreover, since April 2021, Uzbekistan has been included in the EU Generalized System of Preferences (“GSP+”), which means economic incentives such as lower export duties. This facilitates foreign trade and experts expect annual exports to the EU to reach $250 million by 2022,” concludes Fashionunited.

 

Source: dunyo.info

For the first time, trilateral talks between the heads of the ministries of foreign affairs, trade and transport of Uzbekistan, Turkey and Azerbaijan will be held in Tashkent. “This is a completely new mechanism,” said a spokesman for the President of Uzbekistan.

This week, for the first time, trilateral talks between the heads of the ministries of foreign affairs, trade and transport of Uzbekistan, Turkey and Azerbaijan will be held in Tashkent. This was announced at a briefing on Monday by the press secretary of President Sherzod Asadov. The Uzbek Foreign Ministry specified that the dialogue will take place on August 2.

“This is a completely new mechanism,” he said, recalling that the negotiations are organized in accordance with the agreements of the presidents of the three states.

“The agenda of the talks included issues of further development of interregional cooperation, prospects for cooperation in the areas of investment, innovation, transport, and communications,” Sherzod Asadov said.

It is expected that President Shavkat Mirziyoyev will receive Turkish and Azerbaijani Foreign Ministers Mevlut Cavusoglu and Jeyhun Bayramov.

 

Source: www.gazeta.uz

A consortium of international banks, including JPMorgan Chase, Citi, Societe Generale and Credit Suisse, provided NMMC with a $1.2 billion loan to implement the investment program.

The Navoi Mining and Metallurgical Combine (NMMC) has attracted a $1.2 billion loan from an international consortium of banks to implement an investment program, the press service of the plant reported.

An unsecured long-term syndicated loan was issued for a period of five years. The consortium of banks included American JPMorgan Chase and Citi, French Societe Generale, Swiss Credit Suisse, Chinese ICBC Standard, Kazakh Halyk Bank and German Deutsche Bank.

In September last year, the Russian VTB announced that it would open a credit line for a total of $1 billion to finance NMMC's investment program, the parties then signed a corresponding agreement.

NMMC plans for 2017-2026 to implement 27 projects for the modernization of existing and construction of new production facilities with a total value of more than $3 billion, their implementation will increase the production capacity of the plant by 30%.

 

Source: www.gazeta.uz 

In Delhi, within the framework of the visit of the government delegation to India, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held a number of bilateral meetings and negotiations with investors, representatives of large companies. Thus, in particular, issues of mutual interest were discussed with the Director of Indorama Industries Prakash Kejriwal, as well as the Chief Executive Officer of Adani Group Sudipta Bhattacharya.

The meetings were of an informal nature, which made it possible to most fruitfully discuss new projects, topical issues and prospects for building up cooperation in a number of areas.

 

Source: mift.uz

On July 28 this year, as part of the visit of the government delegation of the Republic of Uzbekistan to India, Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held talks with the Minister of Agriculture and Farmers Welfare of India Narendra Singh.

During the meeting, it was noted that the two countries have managed to diversify trade in the agricultural sector over the past few years, but there is still significant untapped potential.

The parties agreed on the need to increase the volume of trade, including by creating additional favourable conditions for mutual access of products of national agricultural producers to the markets of the two countries. Uzbekistan has granted phytosanitary permits for the import of 6 Indian commodities, including bananas, mangoes, soybeans and rice. In turn, the Indian side is considering the possibility of granting permits for Uzbek agricultural products, such as grapes, pomegranates, apples, persimmons, chilli peppers, tomatoes, almonds and watermelon.

During the talks, issues of investment plans of individual agricultural companies were discussed. So, at present, the Indian Indo Organics, through direct investment, intends to launch the production and processing of agricultural products in the Namangan region of Uzbekistan. Mutual readiness was expressed to provide practical assistance in the implementation of such technological projects.

Following the meeting, the parties stressed their commitment to further continuation of close cooperation for the effective development of new projects and the implementation of all agreements reached in practice.

 

Source: mift.uz

In Delhi, as part of the stay of the government delegation of Uzbekistan in India, the Uzbek-Indian business forum was held.

The event was attended by Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev, State Minister of Trade and Industry of the Republic of India Anupriya Patel, heads of relevant ministries, departments, industry associations, as well as more than 50 representatives of business circles of the two countries.

In their speeches at the opening ceremony of the Forum, the heads of delegations emphasized that relations between Uzbekistan and India over the past five years have reached a qualitatively new level.

Thus, in particular, the trade turnover between the two countries during this period increased by more than 50%. The positive dynamics continue to grow, and in the first half of 2022, mutual trade increased by almost 30%, exceeding $324.5 million.

In the context of the effectiveness of the reforms carried out in Uzbekistan, the effectiveness of measures to support entrepreneurial activity and create a favourable climate for investors was noted. Thanks to this, the number of enterprises operating in Uzbekistan with the participation of Indian capital has increased almost 5 times since 2017. In 2021 alone, about seventy enterprises began operating, and their total number reached 357. Currently, over 80 joint projects worth more than $3 billion are being implemented in various industries.

During the event, the Uzbek side came up with initiatives to mobilize untapped resources in all areas of partnership. Among the promising areas of cooperation are: agro-industrial cooperation through the creation of joint ventures for the cultivation of crops and the production of popular food products, the IT sector and investments in infrastructure projects, the joint production of pharmaceuticals and their export to third countries, close cooperation in the textile industry, as well as production of building materials

As part of the business forum program, presentations on the investment potential of Uzbekistan in various sectors were also held. And the mutual interest of business circles in building ties and working together was revealed by the B2B negotiations session, during which entrepreneurs and investors were able to get to know each other, find common ground and discuss new promising ideas with a focus on reaching firm agreements in the near future.

As a result of the forum, a number of agreements were signed in such areas as private medicine, pharmaceuticals, the production of footwear and leather products, as well as the training of highly qualified personnel.

 

Source: mift.uz

On August 3-4 this year, within the framework of the Chairmanship of the Republic of Uzbekistan in the Shanghai Cooperation Organization, the Forum of the Heads of the SCO Regions will be held in Tashkent.

The main goal of the Forum is to draw the attention of the SCO member countries to the issues of further development of tourism, culture and agriculture.

The program of the two-day event includes a plenary session and three panel sessions, as well as a business forum with representatives of business circles from the countries of the Organization.

Participants during the panel sessions will focus on joint high-tech projects for the production and processing of agricultural products, the introduction of innovative technologies in agriculture, including the food sector, as well as cooperation in tourism and transport logistics.

The Forum of Heads of Regions acts as a dialogue platform that allows the countries of the region to jointly and comprehensively consider promising areas for the further development of the region.

 

Source: mift.uz

In January-June 2022, 41.5 trillion soums of investments in fixed assets, or 34.1% of their total volume, were disbursed from the own funds of enterprises and organizations.

It should be noted that, with an increase in growth rates compared to the corresponding period of 2021 by 35.0%, the bulk of the assimilated investments in fixed assets were disbursed at the expense of enterprises and organizations' own funds.

 

Source: stat.uz 

Deputy Prime Minister - Minister of Investments and Foreign Trade Jamshid Khodjaev received the Ambassador Extraordinary and Plenipotentiary of the People's Republic of Bangladesh to the Republic of Uzbekistan M. Alam. During the meeting, the prospects for expanding multifaceted cooperation between the two countries were discussed.

In terms of mutual trade, it is planned to take specific practical measures to increase its volume, including through the simplification of customs procedures, and the organization of mutual exhibitions and fairs.

It was noted that 36 enterprises created with the participation of Bangladeshi investments were registered in Uzbekistan, including 35 with 100% foreign capital. These figures do not reflect the real potential for interaction between the two countries, in this regard, the importance of building up investment cooperation was emphasized.

When considering promising areas, it was proposed to organize in Uzbekistan, the production of synthetic fibres and mixed fabrics, finished textiles, and medicines, to develop projects for the deep processing of vegetables and fruits.

Other issues of mutual interest were also discussed during the meeting. As a result, the parties expressed confidence that the practical implementation of the agreements would give impetus to the development of relations between Uzbekistan and Bangladesh.

 

On July 25, 2022, under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev, a meeting was held via videoconferencing to discuss the current state of innovation activity in the republic and the prospects for its development.

The dialogue was attended by heads of ministries, departments, industry associations, local authorities, as well as higher education institutions and research centres of the country.

The focus of attention of the participants was on the implementation of the Strategy for Innovative Development of the Republic of Uzbekistan for 2022-2026. It was noted that this program document, approved by the relevant Decree of the Head of State, includes clear target parameters. In particular, it is expected that in 2026 Uzbekistan will enter the 50 most innovative countries in the world, over 1,700 innovative projects will be implemented in various sectors of the economy and the social sphere, and the number of innovative activity entities will increase from 613 to 2,250, and the number of innovative infrastructure entities will increase to 3 times. It is also expected that the number of new jobs created as a result of the implementation of investment projects involving the introduction of innovations will increase by 4 times.

It was emphasized that in order to effectively achieve the set goals, it is important to build a systemic interaction between entrepreneurs, industry associations, research institutes and educational centres.

During the meeting, responsible managers reported on the implementation of the main tasks in the framework of the formation of innovative programs. Targeted instructions were given on the development and approval of network schedules for financing and implementing high-tech innovative projects, which will correlate with the deadlines for completing the tasks stipulated by the Strategy.

The leadership of the Ministry of Higher and Secondary Specialized Education pointed out the need to develop and widely implement educational programs in the areas of: "Innovation Management", "Project Management", "Commercialization", and "Intellectual Property Management".

As a result of the meeting, the responsible executors were given additional instructions in their core areas and the deadlines for their implementation were indicated.

 

Source: mift.uz

On July 25 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev held negotiations via videoconference with Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic B.Torobaev. The parties exchanged views on topical issues of bilateral cooperation.

For reference: in 2021, the trade turnover between Uzbekistan and Kyrgyzstan exceeded $953.5 million, and in the first half of 2022 - $590 million (an increase of 39% compared to the same period last year).

During the meeting, practical measures for developing industrial cooperation were considered in detail. Thus, 289 enterprises with Kyrgyz capital are currently operating in Uzbekistan, of which 129 are joint ventures and 160 are with 100% foreign capital. Readiness was expressed to increase the number of joint projects in the energy, light, pharmaceutical, and automotive industries, production of building materials and agricultural products, as well as agricultural machinery, cars and basalt fibre.

Other priority areas of interaction included in the Program for Trade and Economic Cooperation and the Development of Industrial Cooperation between the two countries for 2022-2025 were also discussed.

As a result of the meeting, a mutual commitment was expressed to support the practical implementation of the discussed projects and initiatives.

 

Source: mift.uz

In January-June 2022, the number of newly created small businesses (excluding farms and dekhkan farms) amounted to 49,765

The number of newly created small businesses by type of economic activity:

On sale - 18 353

In industry - 9 249

In agriculture, forestry and fisheries - 7,757

In the field of accommodation and food services - 3,088

In construction - 2 633

During transportation and storage - 1,584

Information and communication - 1 353

In health and social services - 824

In other industries - 4,924

 

Source: stat.uz

On July 19, the President of the Republic of Uzbekistan Shavkat Mirziyoyev received the Vice-President of the Islamic Republic of Iran Sorena Sattari, who arrived in Uzbekistan on a working visit.

The issues of further enhancing the multifaceted relations between Uzbekistan and Iran were considered. Special attention was paid to the promotion of joint programs and projects in science, innovation and technology.

Sorena Sattari conveyed to the President of Uzbekistan the sincere greetings and the best wishes of the President of Iran Ebrahim Raisi.

The sides have noted with satisfaction the intensification of bilateral contacts and mutual exchanges observed in recent years. The trade indicators and the number of cooperation projects are also growing. Last year, the trade turnover increased by 73%, and since the beginning of this year – by another 22%.

The opportunities for enhancing practical cooperation in the joint scientific and applied research, attracting the private sector to finance exploration work and venture initiatives, supporting the university programs, and implementing the joint projects in bio- and nanotechnology, IT sector, pharmaceutical and other industries were noted.

An agreement was reached on the adoption of a «roadmap» for the implementation of joint decisions and signed agreements, including as a part of the upcoming Uzbekistan – Iran Innovation Forum and business events.

 

Source: president.uz

 

On July 19 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev met with the Vice President for Science and Innovation of the Islamic Republic of Iran Suren Sattoriy.

During the dialogue, a positive assessment was given to the effectiveness and growth rates of the Uzbek-Iranian trade cooperation in recent years. So, in 2021, the volume of trade increased by 73%, exceeding $430 million. In the first half of 2022, the figure has already reached $239 million. The importance of expanding the range of supplied goods and services on a mutual basis was noted.

The current state and prospects for expanding investment cooperation between our countries were considered. Currently, 366 enterprises with the participation of Iranian capital operate in Uzbekistan. Mutual interest and government support create favourable conditions for expanding contacts, developing modern projects, and creating new industrial facilities. As a result, in the first 6 months of 2022, another 69 new enterprises created jointly with the Iranian side were registered in our country.

During the dialogue, the parties also touched upon the development of new projects, the introduction of mechanisms to support start-ups, and joint research.

As an example, the Iranian side expressed interest in sharing new technologies for extracting groundwater and treating it.

We agreed to speed up the coordination of a number of documents aimed at intensifying cooperation in the field of fruit and vegetable growing, as well as organizing special training courses in cotton and grain growing.

Following the meeting, the parties expressed confidence that the practical implementation of the agreements reached would give additional impetus to the development of relations between the two countries.

 

Source: mift.uz

In January-March 2022, in the technological structure of assimilated investments in fixed assets, investments in the Syrdarya region for the purchase of machinery, equipment, vehicles and inventory of the region amounted to 1695.5 billion soums. Also, investments in construction and installation works amounted to 479.9 billion soums and other costs of 814.4 billion soums of investment. 

 

Source: stat.uz

In January-March 2022, in the technological structure of assimilated investments in fixed assets, investments in the Tashkent region for the purchase of machinery, equipment, vehicles and inventory of the region amounted to 1868.3 billion soums. Also, investments in construction and installation works amounted to 2376.0 billion soums and other costs 765.9 billion soums of investments.

 

Source: stat.uz

In the Japanese capital, representatives of the Embassy of Uzbekistan held talks with Takayuki Murakawa, General Manager of NIPPON STEEL, Tomohira Kagami, Assistant General Manager of Sumitomo Electric, and Hideaki Kitamura, Assistant Manager, Dunyo news agency reported.

During the meeting, representatives of NIPPON STEEL and Sumitomo Electric presented an electric cable that reduces the loss of electrical energy during transmission. Manufactured using new technologies and a specially designed core by NIPPON STEEL, the cable, compared with existing analogues, can reduce power losses during transmission by 15-25%, increase strength, reduce the diameter and ensure a service life of up to 40 years.

During the meeting, representatives of Japanese companies expressed their interest in cooperation with the Ministry of Energy of our country, National Electric Networks JSC, Thermal Power Plants JSC, Energosetproekt design institute and construction companies of the republic in the design and construction of power lines using the developed technology.

 

Source: dunyo.info

On July 18, a government delegation of Georgia headed by Prime Minister Irakli Garibashvili arrived in Tashkent. At the airport, the distinguished guest was met by the Prime Minister of the Republic of Uzbekistan Abdulla Aripov, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev and other officials.

The program of the visit began with a visit to the Yangi Uzbekiston park, where I. Garibashvili laid flowers at the Independence Monument, as a tribute to the depth of history and bright modernity of Uzbekistan.

The next on the delegation's route was Technopark, where the guests got acquainted with the production process and the range of localized high-tech products.

In terms of economic relations, it is worth noting that there is a free trade regime between the countries. Uzbekistan supplies Georgia mainly with industrial goods, chemical products, beverages, cars and transport equipment. Georgia, in turn, imports pharmaceutical products, transport equipment, food products and other items. On the territory of Uzbekistan, there are 69 enterprises with the participation of the Georgian capital. In Georgia, there are 23 enterprises with the participation of Uzbek investments. Trade between the countries has grown by 34.3% since 2017, reaching $127.4 million. But this, as noted, is far from the limit, the countries have a mutual desire, and hence a real opportunity to achieve much greater results.

When visiting the Technopark, which unites 17 modern, export-oriented and import-substituting industries, the Prime Minister of Georgia drew attention to the huge investment and industrial potential of Uzbekistan, in light of which the priority of bilateral partnership today remains to build up direct contacts between the business circles of the two countries in order to develop and implementation of new joint projects.

 

Source: mift.uz

Deputies of the Legislative Chamber of the Oliy Majlis at a meeting on July 16 considered and approved the candidacy of Jamshid Khodjaev for the post of Deputy Prime Minister for Investments and Foreign Economic Relations - Minister of Investments and Foreign Trade of Uzbekistan, the press service of the lower house of parliament reported.

Earlier today, we reported that Sardor Umurzakov, who previously held this position, was appointed to the post of head of the Presidential Administration.

Jamshid Khodjaev (born in 1979) graduated from the Tashkent State University of Economics (2000) and the University of Birmingham, UK (2003). He has been working in the banking system since 2000, out of 14 years of work in the structure of the Central Bank of Uzbekistan, he held a senior position for 8 years.

In 2017, he worked as First Deputy Chairman of the National Bank for Foreign Economic Affairs of Uzbekistan, where he supervised the departments of the treasury, foreign economic activity, information technology, project financing and others.

In August 2017, he took the position of First Deputy Chairman of the Accounts Chamber - Head of the Inspectorate for Control over the Completeness of State Budget Revenues.

In November 2017, he was approved as Minister of Foreign Trade and in January 2019 appointed as Minister of Agriculture.

 

Source: www.gazeta.uz

By the decree of the President of the Republic of Uzbekistan, Umurzakov Sardor Uktamovich was appointed to the post of head of the Administration of the President of the Republic of Uzbekistan, in connection with which he was relieved of the post of Deputy Prime Minister for Investments and Foreign Economic Relations - Minister of Investments and Foreign Trade.

 

Source: t.me

The Law "On amendments and additions to the Tax Code of the Republic of Uzbekistan" (LRU No. 783 of 12.07.2022) was signed by the President.

The additions made set the deadlines for granting income tax benefits to participants in special economic zones. According to the law, when exempted from income tax, their grace period depends on the size of the investment:

- for investments from 3 million US dollars to 5 million US dollars - 3 years;

- for investments from USD 5 million to USD 15 million - 5 years;

- for investments from 15 million US dollars and more - 10 years.

The specified terms are calculated from the date of acceptance of the production facility into operation.

The law comes into force from the day of its official publication.

 

Source: www.uzdaily.uz

On July 13, 2022, the United Nations Development Program (UNDP) and the Ministry of Agriculture of the Republic of Uzbekistan held a joint training seminar in Tashkent. This workshop, within the framework of the European Union-funded project " Supporting the inclusive transition of the agri-food sector to a "green economy" and developing a climate-oriented agricultural knowledge and innovation system " was conducted by an international consultant, a specialist with 40 years of experience in the development of the agrarian sector, Briton David Kahan.

The event was attended by ACIS Agricultural Services Centers of Fergana, Kashkadarya and Tashkent regions, research institutes in the field of agriculture and their research and experimental stations in the regions, employees of local higher and vocational educational institutions specializing in agriculture, and representatives of farms.

In his speech, David Kahan presented information about the concept of "Innovation groups" in the development of agriculture, identifying and eliminating existing problems and shortcomings in the production of products based on their research.

UNDP National Project Coordinator Ulugbek Islamov emphasized that the main goal of the project is to ensure the effectiveness of links between science, research, services and production, noting the need to establish cooperation with public and private sector organizations in the field of water resources use.

Also, during the training seminar, the participants were divided into groups and, with the help of practical exercises, analyzed the problems associated with grain, cotton, animal husbandry, horticulture, and water resources. They studied the impact of identified problems on the environment and natural resources and made presentations on how to solve them.

As noted at the event, "Innovation Groups" develop and implement innovative projects with scientific and practical solutions to adapt to climate change in agriculture and mitigate its negative consequences. The groups consist of representatives of farmers, dekhkan farms, researchers, representatives of agribusiness, entrepreneurs and other organizations associated with the industry. The best and most innovative projects are awarded special grants from this project based on a transparent competition.

 

Source: www.agro.uz

The ceremony of signing documents following the outcomes of the Uzbek –Turkmen negotiations at the highest level was held at the Kuksaroy Residence.

Shavkat Mirziyoyev and Serdar Berdimuhamedov signed a Joint Statement, which secures the major arrangements and defines the long-term tasks for further building up the multifaceted cooperation and strategic partnership between the two countries.

In the presence of the Presidents, the agreements were also signed by the heads of ministries and agencies of the two countries. A total of 19 documents were signed, including:

- Agreement on the development of transport and transit cooperation;

- Agreement on cooperation in the field of tourism;

- Agreement on the management, protection and rational use of the water resources of the Amudarya River;

- Agreement on holding a joint competition of initiative research projects;

- Program of trade and economic cooperation and development of industrial cooperation for 2022-2025;

- Program on scientific and technical cooperation for 2022-2024;

- Program of cooperation between the Ministries of Foreign Affairs for 2023-2024;

- Action plan for the practical implementation of the provisions of the intergovernmental Agreement on the establishment and regulation of the Uzbek -Turkmen border trade zone - Trade Center.

A number of documents were also signed on the cooperation in the chemical industry, customs issues, railway communication, forestry, museum business, justice, youth policy, television and radio broadcasting, and others.

 

Source: president.uz

On the eve of the visit of the President of Turkmenistan to the Republic of Uzbekistan, the first Uzbek-Turkmen interregional Forum was held in Bukhara.

At the event, the delegations of the two countries were headed by Deputy Prime Minister – Minister of Investments and Foreign Trade Sardor Umurzakov from the Uzbek side, and Deputy Chairman of the Cabinet of Ministers Batyr Atdayev from the Turkmen side. The delegations included heads of ministries, agencies, industry associations, commercial banks, chambers of commerce and industry, heads of local administrations and representatives of business circles from various regions of the two countries.

Addressing the participants of the event with a welcoming speech, the heads of delegations noted the growing dynamics of the partnership between Uzbekistan and Turkmenistan, characterized by depth and intensity. At the same time, the attention of the participants was drawn to the presence of untapped reserves in a wide range of areas in bilateral cooperation.

Emphasizing in this vein the importance of strengthening interregional ties and developing joint breakthrough initiatives, the parties expressed their readiness to implement joint practical measures to advance cooperation in this direction. The organization of regular mutual visits of heads and business missions of the regions of the two countries will be established. In addition, it was announced that permanent working groups will be created between the regions, whose task will be to develop new areas of cooperation, develop and coordinate promising projects, and interact in order to solve all issues related to the implementation of those initiatives and projects.

The Forum participants focused on the most promising areas in terms of investment, and industrial and trade cooperation: agriculture, automotive, chemical, textile, leather and footwear and electrical industries.

In the context of the development of interregional ties, the importance of the accelerated launch of cross-border trade zones, the opening of trading houses and the implementation of joint projects aimed at creating high-tech industries was emphasized.

At the end of the speeches, the heads of delegations expressed their commitment to active cooperation to strengthen direct contacts between the regions of Uzbekistan and Turkmenistan, the implementation of joint projects and the exploration of new growth points for interregional cooperation.

Heads of chambers of commerce and industry, heads of regions and relevant departments of the two countries also spoke during the Forum. The potential and prospects for expanding investment cooperation were presented, as well as specific proposals regarding the organization of industrial cooperation between entrepreneurs of the regions of the two countries.

In addition, targeted meetings of participants in the "B2G" and "B2B" format, as well as a signing ceremony of bilateral documents were held on the sidelines of the event. As a result of the Forum, investment and trade agreements totalling $451 million were signed.

 

Source: mift.uz

On July 13, The President of the Republic of Uzbekistan Shavkat Mirziyoyev received a delegation of the Islamic Republic of Iran headed by the Chairman of the Islamic Council Assembly Mohammad Bagher Ghalibaf.

The issues of further development of the Uzbek-Iranian multifaceted relations, as well as the current regional agenda, were considered.

The President has noted with satisfaction the active contacts and productive exchanges that contribute to maintaining the high dynamics and expanding mutually beneficial cooperation between Uzbekistan and Iran in the priority areas.

There is an increase in the cooperation indicators in the trade and economic sphere – since the beginning of the year, the trade turnover has grown by 40%, the number of joint ventures and projects has exceeded 360. In February, a regular meeting of the Intergovernmental Commission and a business forum were successfully held with the participation of representatives of businesses and the leading enterprises of the two countries. A number of important bilateral events are planned for the coming months.

The Chairman of the Islamic Council Assembly conveyed the sincere greetings and the best wishes of the President of Iran Ibrahim Raisi to the Leader of Uzbekistan, emphasizing the commitment of the Iranian side to deepening the comprehensive relations between the two friendly states and filling them with the concrete substance.

During the negotiations, special attention was paid to the issues of creating favourable conditions for increasing the volume of mutual trade, promoting joint projects in transport and logistics, implementing scientific and technical exchange programs, as well as intensifying contacts at the regional and business levels.

It was agreed to continue a productive inter-parliamentary dialogue to implement agreements in practice and promote promising projects of mutually beneficial cooperation.

There was also an exchange of views on the situation
in Afghanistan. The importance of expanding assistance to achieve long-term peace and socio-economic reconstruction of this country was emphasized.

In addition, the interactions at the international organizations, including the agenda for the upcoming summit of the Shanghai Cooperation Organization in the city of Samarkand in September this year, were discussed.

 

Source: president.uz

On July 12, President Shavkat Mirziyoyev got acquainted with a presentation on the implementation of major energy projects in partnership with the United Arab Emirates.

Uzbek-Emirati cooperation is developing dynamically. Since the beginning of this year, the volume of mutual trade has doubled, and 45 new enterprises have been created in our country with the participation of capital from the UAE.

The mutually beneficial partnership covers many sectors of the economy, of which one of the most important is energy.

Last year, together with the Emirati company Masdar, the first large solar power plant in our country was launched in the Navoi region. Today it supplies 1 million 180 thousand kilowatt-hours of electricity per day.

The implementation of another 5 large energy projects, the total cost of which is almost $3 billion, has been agreed upon. These are the privatisation and increase in the capacity of the Talimarjan TPP with the companies Mubadala and TAQA, the construction of a wind power plant in the Navoi region and photovoltaic stations in the Surkhandarya, Samarkand and Jizzakh regions with the Masdar company.

It should be noted that this year a new mechanism for the development and coordination of economic cooperation with the UAE was launched.

The meeting considered the implementation of these projects based on this system.

Responsible persons provided information on the current status of projects and activities planned until the end of the year.

The head of state noted that these projects would create the basis for the stability of the energy system and a further increase in the inflow of investments in the economy.

Speaking about the privatization of the Talimarjan TPP, the President stressed that the project should become a model for the management of the republic's thermal power plants and efficient electricity production.

The projects to be implemented in the field of renewable energy together with Masdar will be an important step towards bringing the share of green energy to 25 percent by 2030.

In this regard, the need was emphasized to speed up the process of signing the necessary agreements and documents in order to launch practical work on the implementation of these projects.

 

Source: president.uz

On July 4, the President of the Republic of Uzbekistan Shavkat Mirziyoyev received his Adviser for Economic Development, Effective Governance and International Cooperation Suma Chakrabarti.

The issues of further continuation and enhancement of the effectiveness of economic reforms in our country in the context of implementing the New Uzbekistan Development Strategy for 2022-2026 were discussed at the meeting.

Adviser Chakrabarti highly appreciated the large-scale program of socio-economic reforms being implemented under the leadership of the President of Uzbekistan, including the modernisation and improvement of the competitiveness of key economic sectors, transformation and digitalisation of all spheres of society, development of the investment and business environment in the country, as well as a new generation training.

It was noted that the constitutional reform initiated in Uzbekistan, carried out in full compliance with the democratic principles and legal norms, based on advanced national and international experience in the constitutional construction, will contribute to bringing the transformations, carried out in the country, to a qualitatively new level.

Suma Chakrabarti expressed his readiness to make the utmost effort to promote the Government of Uzbekistan in finding and implementing new growth points.

Before the appointment as an Adviser to the President of Uzbekistan, Suma Chakrabarti held the office of the President of the European Bank for Reconstruction and Development for eight years.

 

Source: president.uz

On July 4 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received a French delegation headed by the Chairman of the France-Uzbekistan Business Council of "MEDEF International" French Entrepreneurs Movement, Chairman of the Board of Orano Claude Imauven.

The delegation also included the Ambassador Extraordinary and Plenipotentiary of the French Republic to the Republic of Uzbekistan Aurelia Bouchez, the leadership of the French companies Orano Mining, SUEZ, Voltalia, EDF, MEDEF International and Alstom.

The parties constructively discussed the current state and prospects for expanding investment cooperation with French companies. It was noted that at the moment about 50 French companies are operating in the country in such areas as geological exploration, energy, infrastructure, tourism and agriculture.

The management of MEDEF stressed that Uzbekistan is an active and reliable economic partner of France and expressed readiness to intensify efforts to attract large French businesses to implement new projects in the country.

Representatives of the French business community announced their plans to work in Uzbekistan and spoke about the current cooperation with Uzbek partners in the framework of working out joint projects and initiatives in specialized areas.

Directly during the meeting, the participants, among whom were also representatives of relevant ministries and agencies of Uzbekistan, were able to develop an agenda for further actions to promote the areas of cooperation considered.

The Uzbek side expressed readiness to support every French entrepreneur interested in implementing projects in Uzbekistan.

Following the meeting, an agreement was reached to continue practical cooperation aimed at supporting the business circles of the two countries in establishing partnerships and reaching specific agreements.

 

Source: mift.uz

On July 4 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received a delegation of Afghanistan headed by Acting Minister of Industry and Trade Nuriddin Azizi.

During the meeting, the sides exchanged views on the agenda of Uzbek-Afghan cooperation in the field of investments, trade, transport and logistics. Further steps were agreed to implement joint initiatives in each of the above areas.

An agreement was reached on the joint preparation of proposals to increase bilateral trade and expand the volume of cargo transportation through the territories of the two countries. The prospects of joint work on establishing direct ties between Uzbek and Afghan business circles in order to explore the existing potential for a mutually beneficial partnership were also noted.

In the context of the dialogue, the participants of the meeting considered measures for the implementation of the trans–Afghan railway construction project "Termez – Mazar-i-Sharif – Kabul – Peshawar". The practical aspects of organizing field research along the route of the railway in the second half of July this year were discussed.

The Uzbek side expressed readiness to continue providing humanitarian assistance to the Afghan people and to develop cooperation with Afghanistan in priority areas.

Following the meeting, the parties agreed to maintain a constant contact to discuss and resolve topical issues of Uzbek-Afghan cooperation.

 

Source: mift.uz

Nur-Sultan, Kazakhstan – Sixth Eurasian Business Forum “Green Energy & Waste Recycling Forum” (GEWR) kicked off today gathering over 150 government officials from Central Asia (CA), representatives of the European Union (EU), international organizations, non-governmental organizations and business.

GEWR is the largest forum in Central Asia on waste management and renewable energy, which has been held annually since 2016. It brings together decision-makers and experts to share knowledge, experience, successful cases and the best technologies for the disposal and recycling of waste.

This year, GEWR was organized by the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan and the KazWaste Association in partnership with the EU-funded project “European Union – Central Asia Water, Environment and Climate Change Cooperation” (WECOOP), UN Environment, UNDP, Green Finance Centre, Green Technology Hub, WestDala, ArcelorMittal, CocaCola, PlastNet, and Bausano.

In the EU, the traditional approach to waste management has been replaced with the concept of circular economy, which defines all types of waste as a resource rather than a material that has to be disposed of. This new concept is based on the strict hierarchy of waste management, that sees avoiding waste generation, reuse of materials and waste recycling as a priority. Furthermore, according to recent statistics, the EU is a global leader in renewables and its leading position is expected to even strengthen in the years to come. Under the new REPowerEU plan to shift away from fossil fuels and fast forward the green transition, the EU is planning to increase the share of renewables up to 45 % by 2030.

Addressing the participants at the Opening Ceremony, Mr Johannes Stenbaek Madsen, Head of Cooperation at the EU Delegation to Kazakhstan, stated: “Under the European Green Deal, we aim to become the first climate-neutral continent by 2050. The promotion of circular economy and green energy together with energy savings and energy efficiency represent the core instruments to achieve this main goal. The majority of concepts and approaches in these fields developed and implemented within the EU are applicable in other countries, including Central Asia. At present, the EU has 15 ongoing regional programmes covering the sustainable use of water, energy, environment and the water-food-energy nexus in Central Asia for a total amount of about EUR 100 million. In line with the EU Strategy on Central Asia, we will continue working with the partners in the region supporting them on their green transition, including through targeted investments.”

At the session “Prospects for Cooperation between the Central Asia countries in green energy and waste management”, co-financed by the WECOOP Project, the participants discussed the development of renewable energy and waste management sectors in the region, ways to improve the national legislations, joint implementation of projects, establishment of the Central Asian Hub of Climate Projects and Green Financing, as well as the EU–Central Asia cooperation in these fields.

Background: The EU-funded project “European Union – Central Asia Water, Environment and Climate Change Cooperation” (WECOOP) (the third phase from October 2019 to April 2023) aims to enhance the environment, climate change and water policies at national levels in Central Asia through approximation to EU standards and to promote investments in relevant sectors with the aim of contributing to measurable reductions in man-made pollution, including CO2 emission. The project activities include support to the EU–CA Platform for Environment and Water Cooperation and its Working Group on Environment and Climate Change, as well as the implementation of the EU Green Deal’s international dimension in Central Asia to advance climate action.

 

Source: eeas.europa.eu

On 4 July, Tashkent hosted the Uzbek-Korean business forum, which was attended by representatives of ministries and departments and business circles of the two countries. In particular, Korean business was represented by such companies as KAKAO Group, Somang Global, Hanshin Engineering & Construction, Posco International, HYUNDAI Construction, DRB Group, Dae Woo Construction, ERA KOREA Co.Ltd, etc.

Opening the solemn part of the Uzbek-Korean business forum, First Deputy Minister of Investments and Foreign Trade L. Kudratov drew the attention of the participants to the special level of bilateral strategic cooperation between our countries. The active desire of the two countries to further expand multifaceted cooperation and establish strong direct ties between business circles was noted. And against this background, the successes in investment, industrial and trade cooperation were emphasized.

As part of the event, speeches were also heard by the Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to the Republic of Uzbekistan Kim Sang-hee, as well as the heads of relevant departments. The speeches noted the untapped potential of the economies of the two countries and a solid potential for building up cooperation in such areas as agriculture, textile, mining, electrical engineering, pharmaceutical industries and other industries.

The interest business in interaction was also reflected in the meetings between representatives of the business circles of the two countries, organized on the sidelines of the forum in the B2B and B2G formats. In an open dialogue face to face, the parties were able to substantively discuss the prospects for business cooperation based on specific project proposals.

The program of the visit of the delegation of business circles of the Republic of Korea will last until 6 July and will include visits to industrial facilities in Tashkent and Syrdarya regions, where business meetings will also be held. Based on the results of familiarization with the economic potential of the regions, a solid package of agreements on the creation of joint ventures is expected to be signed.

 

Source: www.uzdaily.uz

In the first quarter of 2022, the largest share of small enterprises and micro-firms that assessed the prospect of changes for the next three months as favourable was in Kashkadarya region - 65.6%, Jizzakh region - 55.4%, Surkhandarya region - 52.3%, and in the Republic of Karakalpakstan - 43.4%.

 

Source: stat.uz

To assess the economic situation in the country, the Center for Economic Research and Reforms conducts a monthly assessment of the state of business activity at the regional and district levels.

Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the Republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UzEX).

The monitoring results showed that the volume of tax revenues of the Republic in the period from January 1 to June 27 this year increased by 15.3% compared to the same period last year.

At the same time, a significant increase in tax revenues was recorded in Ferghana (+37.6%), Surkhandarya (+37.5%), Samarkand (+35.9%), Bukhara (+35.9%), Khorezm (+35.2%), Andijan (+33.6%) regions and Tashkent (+44.6%).

The growth of tax revenues was ensured due to positive changes in the economy, improvement of the tax administration system, including the introduction of new administrative tools, digitalization and automation of processes, legalization of entrepreneurial activity and simplification of the procedure for compliance with tax legislation.

Revenues from custom duty payments for the analyzed period increased by 41.2% compared to the same period 2021. The largest increase in customs receipts was observed in Khorezm (+77.9%), Syrdarya (+70.6%), and Andijan (+61.3%), Bukhara (+56.3%), Jizzakh (+49.8%) regions and in the Republic of Karakalpakstan (+68.0%).

The increase in customs revenues is associated with the growth of foreign trade turnover, measures taken by customs authorities to simplify customs procedures, accelerate the release of goods into free circulation and the introduction of new methods of customs administration.

According to the State Customs Committee, the volume of exports of goods from the beginning of this year to June 27 increased by 25.4% compared to the same period last year. A significant increase in the volume of exports of goods was noted in Kashkadarya (+61.6%), Navoi (+52.5%), Samarkand (+44.5%), Andijan (+33.5%), Namangan (+26.9%) regions and Tashkent city (+53.0%).

The increase in Uzbekistan's exports is explained by the growing growth rates of exports of industrial goods, food products, chemicals substances and agri-food products.

At the same time, the decrease in exports of goods was observed in Bukhara (-22.2%), Surkhandarya (-6.8%) regions and in the Republic of Karakalpakstan (-17.0%).

The reduction in the volume of exports in the Bukhara region is caused by the fact that in January-June 2022, exports of cotton fiber decreased in the region, which is due to the direction of these products to the domestic market.

The decrease in exports in the Republic of Karakalpakstan is explained by a reduction in exports of plastics and products made from them and yarn, pharmaceutical products and the complete cancellation of exports of cotton fiber with the redirection of these products to the domestic market.

In turn, the decrease in exports to Surkhandarya region is associated with a reduction in exports of fruit and vegetable products and the redirection of cotton fiber and yarn to the domestic market.

The volume of transactions on the UzEx for the analyzed period increased by 42.8%. A significant increase in exchange activity is observed in Khorezm (+68.1%), Navoi (+65.4%), Jizzakh (+54.6%) regions, in the Republic of Karakalpakstan (+49.8%) and in Tashkent city (+68.5%).

The growth in the volume of transactions in these regions is ensured by increasing the sale of such goods as technical seeds, mineral fertilizers, sugar, vegetable oil, ethyl alcohol, automobile gasoline, diesel fuel, construction and household materials, rolled ferrous metals, etc.

At the same time, a decrease of 7.2% was observed in the Syrdarya region, which is explained by a decrease in the number and volume of transactions to trade in polypropylene, cotton fibre, technical seeds, vegetable oil, meal and husk, ferrous metal, cement, wheat, soap product and livestock feed.

 

Source: review.uz

On June 28-29, an Uzbek-Israeli business forum was held in Tel Aviv.

The forum was organised by the Embassy of Uzbekistan with the assistance of the Israel-Uzbekistan Chamber of Commerce, the Israel Export Institute and the Israel Industrialists Association, Honorary Consul of our country.

It is important to note that an event of this format in the history of bilateral relations is held in Israel for the first time in the last decade.

Representatives of official and business circles, in particular, associations of the textile, chemical, electrical, pharmaceutical, leather industries, and enterprises of the Tashkent and Samarkand regions took part in the forum from the Uzbek side.

In his welcoming speech, the President of the Israel-Uzbekistan Chamber of Commerce, Ron Doron, emphasized the significant remaining potential for expanding trade and cooperation between the two countries. The recently created Chamber of Commerce he headed is focused on promoting business interaction.

Ambassador of Uzbekistan Feruza Makhmudova paid special attention to the relevance of opening new areas for Uzbek-Israeli business partnerships and projects, particularly in the chemical, electrical, and pharmaceutical industries, not limited to the traditional areas of agriculture and water management.

The delegation of Uzbekistan, headed by the First Deputy Director of the Center for the preparation of investment projects of the Ministry of Investments and Foreign Trade Murad Mirzaev, held presentations on investment opportunities and export potential of the country, including Samarkand and Bukhara regions.

Within the framework of B2B meetings, contacts were established to promote trade and export operations and cooperation in the fields of textile, electrical, leather, chemical and pharmaceutical industries. Agro-industrial companies of Uzbekistan have reached an agreement on further cooperation in the areas of attracting agricultural technologies, launching dairy farms, and irrigation solutions.

As part of the forum, the delegation visited agro-industrial enterprises, where they got acquainted with the best practices and innovative technologies in the field of animal husbandry and greenhouses.

Representatives of pharmaceutical companies, headed by the Deputy Director of the Agency for the Development of the Pharmaceutical Industry of Uzbekistan, Jamshid Eshmuratov, held talks with the leadership of the Institute for Standardization and Control of Medicines under the Ministry of Health of Israel, as a result of which agreements were reached on the exchange of experience in the fields of registration of medicines, medical devices and medical equipment.

 

Source: dunyo.info

The Cabinet of Ministers approved the procedure for providing infrastructure for large projects implemented by local and foreign investors. The decision was published in the Lex.uz database.

The document notes that the decision is designed to create an attractive investment environment and ensure the flow of funds from private investors to modernize production facilities and provide them with technologies.

The minimum cost of the investment project, which will be provided with communications at the expense of the state budget, is 200 billion soums . This is the amount indicated in the presidential decree in August last year.

An exception is made for Karakalpakstan and Khorezm - there, at the state expense, they will conduct communications to projects from 50 billion soums. At the same time, in a project worth 50-200 billion soums, infrastructure costs should not exceed 20%.

The costs are divided as follows:
  • for access roads, water supply, and sewerage - 90% under the Republican program for the development of social and industrial infrastructure, 10% from the regional budget;
  • for electrification and gasification - 100% from the state budget, in the form of a loan for three years at 5% per annum;
  • for communication infrastructure - at the expense of service providers and the investor himself.

special commission is being established to assess the feasibility of allocating budgetary funds to provide infrastructure for large projects. Its working body is the Ministry of Economic Development.

Locally, it was instructed to create working groups that will consider the proposed investment projects and recommend the selected plans to the commission. They will also calculate the preliminary costs of infrastructure and choose the best places for connection.

Infrastructure works and their financing will begin when the investment project is implemented by at least 50% .

First, the investor must apply to the Center for Due Diligence of Projects and Import Contracts for an assessment of the project for economic feasibility, compliance with the cost-sharing rate (25%) and other criteria. The Center will provide a conclusion within 15 days.

After that, the investor submits to the local working group an application, a business plan for the project, the conclusion of the Center and other necessary information. The group will review the application within 20 days and submit it to the special commission.

Until the end of the quarter, the commission will study the project, make a decision and send a written response to the applicant. With him, the latter addresses the working group after the conditions for the start of work are met, after which he requests the cost of the work from the service providers.
 
 
Source: www.spot.uz

According to the results of January-March 2022, in the structure of the value-added of the manufacturing industry, the largest share fell on:

– metallurgical and metalworking industry (except for machinery and equipment), which reached 43.2%;

- production of textiles, clothing, leather goods and related products -14.7%;

- production of food, beverages and tobacco products - 11.8%;

- production of chemical products - 7.9%;

- production of rubber, plastic products and other non-metallic mineral products - 6.2%;

- production of vehicles, trailers, semi-trailers and other transport equipment - 5.5%;

– production of coke and refined products – 2.0%;

- production of basic pharmaceutical products and preparations - 1.7%;

– production of other manufacturing products – 7.0%.

 

Source: stat.uz

A meeting was held at the Ministry of Investments and Foreign Trade with a delegation of the BNK Financial Group headed by a member of the Board of Directors of BNK Financial Group - Executive Director of BNK Capital Lee Doo-Ho.

During the negotiations, issues of the company's investment plans regarding entry into the banking and financial market of Uzbekistan were discussed in detail. The foreign party provided detailed information about the company's activities and international experience.

For reference: BNK Financial Group is a South Korean financial group consisting of Busan Bank, Kyongnam Bank, BNK Capital and other financial companies, founded in 2011 in Busan (South Korea). BNK Financial Group has 379 branches and 114 branches in South Korea, as well as 28 branches and 3 representative offices abroad. The assets of BNK Financial Group amount to more than 100 billion US dollars.

In the context of mutual interest, special attention at the meeting was paid to a substantive discussion of the legislative framework of Uzbekistan, which secures the protection of the rights of foreign investors operating in the country.

Following the talks, the parties agreed to hold a series of new meetings, the purpose of which is to help the financial group of South Korea enter the market of Uzbekistan in a constructive dialogue. To do this, a joint plan of interaction will be developed.

 

Source: mift.uz

On June 7, Aziza Umarova, CEO of SmartGov Consulting and an international expert on institutional, policy and governance reform, held a master class on “Strategic Management” at the Investment Promotion Agency. During the event, detailed information was provided on the concept of Forsyth, the development of various events and the widespread introduction of other elements of strategic management, as well as the experience of Singapore and a number of other countries in the use of strategic management in public service. At the same time, the participants exchanged views on the experience, opportunities and prospects of using strategic management tools in Uzbekistan. At the end of the conversation, the international expert answered the questions of the Agency's staff.

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Sanoat Energetika Guruhi (operating under the Jizzakh Petroleum brand) has received a license to trust assets in the securities market. This was reported in the Ministry of Finance.

The company applied for the document on May 24. The ministry considered the application in the prescribed manner and decided to satisfy it, the report says.

Trust management  is the transfer of the function of managing an enterprise to a business entity in the interests of the state. This means market management based on market relations, as well as independently of the influence of state bodies.

According to the Ministry of Finance, there are currently 40 companies operating on the stock market with licenses for trust management of investment assets. There are also 50 licensed investment intermediaries (brokers) and 54 investment consultants in Uzbekistan.

In recent years, several enterprises have been transferred to private companies for trust management. The most famous example is SFI Management Group, which from 2018 to 2021 managed state shares in AGMK, Uzmetkombinat and Uzvtortsvetmet.

Sanoat Energetika Guruhi also has experience as a trustee. The company took control of the Fergana Oil Refinery before buying it for $100 million.

Who owns Jizzakh Petroleum now?

The Jizzakh Petroleum JV was established in June 2017 by Uzbekneftegaz and Gazprom's subsidiary Gas Project Development Central Asia. Initially, the Uzbek side owned a share of 60%, the Russian - 40%. In the future, it was planned to increase the share of foreign investors.

After several redistributions, at the beginning of 2021, Uzbekneftegaz owned 49% in the enterprise, Gas Project Development Central Asia - 2%. Another 49% was owned by the Cypriot offshore Belvor Holding Limited.

At the end of October 2021, Uzbekneftegaz withdrew from the founders of the joint venture, transferring its share to Belvor Holding. Now Cyprus offshore owns 98% of Jizzakh Petroleum.

Currently, the company owns subsoil use rights for 103 fields and accounts for about 80% of oil production and about 22% of proven gas reserves. The company also produces high value-added products from hydrocarbons.
 
Source: www.spot.uz

In January - May 2022, the total number of newly created enterprises amounted to 42,652, which, by type of economic activity (excluding farms and dekhkan farms), were formed as follows:

in trade - 14 845

in the industry - 7 587

in agriculture, forestry and fisheries - 6,834

in the field of accommodation and food services - 2,466

in construction - 2 236

during transportation and storage - 1,307

information and communication - 1 121

in health and social services - 737

in other industries - 5,519

 

Source: stat.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held talks with the leadership of the Turkish company Limak Holding represented by its honorary president Nihat Ozdemir.

During the dialogue, the prospects for organizing the activities of a Turkish company in Uzbekistan were discussed, bearing in mind the implementation of large investment projects in the areas of heat and hydropower, processing of agricultural products and the development of tourism infrastructure.

The Turkish side presented an overview of the company's activities, and plans for the near future, and also expressed interest in working in Uzbekistan and readiness for close cooperation to work out the practical aspects of the implementation of the projects under consideration.

An agreement was also reached on the creation of a joint working group with the involvement of experts and specialists from Limak Holding in order to exchange experience and introduce advanced Turkish technologies in the field of construction of energy infrastructure facilities.

Following the meeting, the parties agreed on further steps for interaction within the discussed areas of cooperation and agreed to maintain close contact for the prompt study of emerging issues.

 

Source: mift.uz

On June 7 this year, Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received the Deputy Secretary of State for International Trade (Minister for Exports) Mike Freer. The British delegation also included representatives of the London Stock Exchange and financial corporations Standard Chartered and TheCityUk.

During the meeting, the current state and prospects for deepening the Uzbek-British partnership in the field of investment, trade and industry were discussed.

The parties noted with satisfaction the positive trends in the development of mutual trade: in 2021, the volume of trade between the two countries increased by 65 percent, while exports from Uzbekistan to the UK increased by 2.5 times. In many respects, this was facilitated by Uzbekistan's obtaining the status of a beneficiary of Great Britain's Enhanced Generalized System of Preferences scheme (“GSP Enhanced Framework”). The positive dynamics in bilateral trade continue in 2022: between January and April, trade increased by 68 percent compared to the same indicator last year, while Uzbek exports to the United Kingdom increased by 2.6 times.

An agreement was reached on the development of joint measures to attract British investors to the creation of joint export-oriented industries in Uzbekistan, as well as the organization of training and workshops for Uzbek manufacturers and exporters on the effective use of the preferences of the GSP Enhanced Framework system.

The prospects for intensifying investment cooperation were also discussed. It was emphasized that over the past few years, the number of British enterprises operating in Uzbekistan has increased by 40 percent. The prospects for cooperation in the framework of attracting new British companies to implement projects in the field of processing agricultural products, animal husbandry, biopharmaceuticals, the textile industry, information and communication technologies and green energy were discussed.

In this context, the parties agreed to intensify work on the preparation of the 26th Uzbek-British Trade and Industry Council (UBTIC), which will be held in October this year in Tashkent. The event will strengthen ties between the business circles of the two countries, identify new “growth points” for economic partnership and attract British investment and technology to promising sectors of the economy of Uzbekistan.

As a result of the meeting, the format of further interaction within the framework of each of the considered areas of cooperation was determined.

 

Source: mift.uz

On June 8 this year, the Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov met with the Resident Coordinator of the United Nations in Uzbekistan, co-chairman of the Steering Committee of the Multi-Partner Trust Fund for Human Security for the Aral Sea region Roli Astkhana.

During the meeting, the current results of the work of the Trust Fund in the context of interaction with donor countries, international organizations and development partners, as well as topical issues and mechanisms for further cooperation in mobilizing resources and implementing targeted projects in the Aral Sea region were discussed.

In particular, it was announced that the Fund's Technical Secretariat summarized the results of the assessment and developed recommendations for the co-chairs of the Steering Committee on the selection of specific project proposals for funding and their subsequent approval.

It was also decided to submit to the Steering Committee for consideration three strategic documents developed jointly with the Ministry of Investment and Foreign Trade: the Resource Mobilization and Partnership Strategy, the Communication, Branding and Marketing Strategy and the Monitoring and Evaluation Guide.

These issues will be considered during the 5th meeting of the Steering Committee, which is scheduled to be held in the near future.

A regular meeting of the Fund's Advisory Committee will also be held, which will make it possible to develop specific solutions to all existing issues within the framework of the tasks set.

During the meeting, issues related to the holding of the First Aral Sea High-Level International Forum in Uzbekistan in the autumn of this year were also considered. The agenda of the Forum will be focused on discussing promising solutions for the further development of the "green" economy in Uzbekistan, measures for the practical implementation of the UN General Assembly Resolution on the creation of a zone of environmental innovations and technologies in the Aral Sea region, as well as mechanisms for establishing investment partnerships with development partners for the implementation of projects, focused on the sustainable development of the region.

The parties agreed in an expedited manner to complete the development of the concept of the event and work out all issues of an organizational and substantive nature.

 

Source: mift.uz

The Secretariat of the World Trade Organization circulated a message on the date of the next, 5th Meeting of the Working Party on Uzbekistan's accession to the WTO.
It will take place on June 21-22, 2022 in Geneva.

Joining the organization is an absolute priority, which will follow by the further integration of Uzbekistan into the world economic community and multilateral trading system.

In this regard, the Ministry of Investments and Foreign Trade has prepared a smart release - an infographic in a new informative format, where we tried to reflect the full scale of the work done by Uzbekistan so far in this process.

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Source: mift.uz

On June 6, Ulugbek Kasimkhodjayev, Director of the Investment Promotion Agency, met with Do Xuan Hoang, CEO of Mareven Food Central LLC, and Bernard Vavrzhin, CEO of Mareven Food Tian-Shan. The Mareven group of companies exports its products to more than 20 countries around the world.



During the meeting, the company's representatives shared their plans to implement an investment project worth $ 40 million in Uzbekistan. In the first stage, it is planned to build a logistics & manufacture complex for the production and distribution of a wide-range line of food products (including brands Rollton, Big Bon, Sunbel etc.) and processing of agricultural products, at the cost of about $ 20 million. In the following stages, it is planned to expand production capacities by adding all existing and new types of products (pasta, drinks, sauces, bouillons, purees, spices and other culinary products) and increasing the total investment to $ 40 million.


The implementation of the project will provide products not only for the internal needs of the Uzbek market but also for export markets.

On June 6 this year, negotiations were held at the Ministry of Investment and Foreign Trade with the newly appointed Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to the Republic of Uzbekistan
Kim Hee Sang.

During the meeting, the current agenda of the Uzbek-Korean partnership, the implementation of the agreements reached, as well as the state of preparation for upcoming events were discussed.

A number of successfully implemented projects in the fields of education, healthcare, infrastructure, information and communication technologies and other areas, implemented through direct investment and funds from Korean financial institutions, such as Eximbank, the Korea International Cooperation Agency (KOICA), the Fund for Economic Cooperation and Development ( EDCF) and the Economic Development Promotion Fund (EDPF).

Today, about 100 investment projects totalling more than $14 billion are being implemented in Uzbekistan together with Korean companies. The volume of accumulated direct Korean investments in the economy of Uzbekistan exceeded $7 billion.

Over the past five years, the number of enterprises with Korean capital in Uzbekistan has doubled (900 as of June 1).

No less attention was paid to the intensification of trade between countries. Over the past five years, trade has doubled and reached $1.8 billion in 2021. According to the results of the first quarter of this year, this indicator increased by 51 percent (630.4 million dollars). The parties agreed to intensify efforts to achieve the goals set by the leadership of the two countries and bring the volume of mutual trade to $5 billion by 2025.

The prospects for introducing new mechanisms of interaction between the Ministry of Investment and Foreign Trade, the Ministry of Economy and Finance of Korea, and the diplomatic missions of the two countries aimed at monitoring existing and promising projects, coordinating projects implemented through the Korean Official Development Assistance (ODA) program were discussed.

As a result of the meeting, an agreement was reached to continue an active dialogue in order to accelerate the progress of all the issues discussed.

 
Source: mift.uz

First Deputy Minister of Energy of Uzbekistan Azim Akhmedkhadzhaev held talks with Canadian Ambassador Alison Mary Leclerc. 

During the meeting, the foreign side was informed about the reforms carried out in the energy sector of Uzbekistan, the development of renewable energy, including the wide participation of leading world companies in tenders for renewable energy projects.

Also, information was provided on the activities of the Institute for Renewable Energy Sources, established in 2021 under the Ministry of Energy, the Applied Laboratory for Hydrogen Energy, operating under this Institute.

The Canadian Ambassador noted the importance of the results achieved in the country's energy sector in the course of ongoing reforms.

Alison Mary Leclerc proposed to consider in detail a number of promising areas of partnership, including cooperation with leading technical universities in Canada in the field of experience exchange; joint projects in the field of hydrogen energy and environmental safety (ESG).

As a result of the meeting, the parties reached an agreement to organize a series of webinars to discuss the possibilities of cooperation in the field of training and advanced training of personnel, as well as hydrogen energy.

 

Sorce: minenergy.uz

On June 3-4 this year, a government delegation of Uzbekistan headed by Deputy Prime Minister - Minister of Investments and Foreign Trade Sardor Umurzakov visited Moscow (RF). During the two-day visit, meetings were held with a number of officials of the Russian Federation, in particular, Deputy Prime Minister Alexei Overchuk, Foreign Minister Sergei Lavrov, and Economic Development Minister Maxim Reshetnikov.

During the meetings, the current state of bilateral cooperation, the implementation of existing agreements, as well as aspects of the further development of Uzbek-Russian relations were discussed.

The stable nature of bilateral contacts and active interaction in all areas of the multifaceted partnership between the two countries was noted. A mutual commitment was expressed to work together to promote previously agreed projects, programs and initiatives.

Particular attention was focused on investment, trade, economic, industrial, transport, and logistics cooperation issues. Common positions have been worked out on practical mechanisms for deepening the mutually beneficial partnership between the two states.

Following the meeting, the parties exchanged proposals on further steps to resolve issues of common interest and agreed on a format for practical interaction in all the areas of cooperation considered.

 

Source: mift.uz

The State Assets Management Agency of the Republic of Uzbekistan announces the start of applications collection for pre-qualification in order to select potential investors to participate in the privatization of a share in the equity capital of Ferganaazot in the amount of 99.02%, reported on the official website of the agency.

The number of responses to the previously published announcement of the collection of applications for expressing interest in participating in the transaction showed a high level of interest on the part of market participants. In this situation, in order to ensure maximum transparency and a competitive environment for the transaction, the AUGA decided to include a pre-qualification stage in the process, the statement said.

It should be noted that within the framework of the qualifying stage, all applications of applicants for the purchase of a stake in Ferganaazot will be evaluated for their compliance with the announced criteria. Those who successfully complete the prequalification process will be allowed to participate in the solicitation of binding proposals. The terms and conditions will be announced to them by direct communication via e-mail.

According to the agency, Deloitte's international company will act as the lead consultant on this transaction. Strategic consultant - International Finance Corporation (IFC).

Applications for preliminary selection of applicants can be sent no later than July 18, 2022.

 

Source: kapital.uz

In January - April 2022, the number of newly created business entities amounted to 32,991.

Dynamics of newly created business entities as of January-April by years:

In 2018 - 18 110

In 2019 - 39,147

In 2020 - 28 350

In 2021 - 36,275

In 2022 - 32,991

 

Source: stat.uz

On June 2 this year, at the Investment Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, a meeting was held between the director of the agency, Ulugbek Kasimkhodzhaev, and the ambassador of the Emirate of Kuwait, Ahmad Khaled Aljeeran, on the further development of bilateral cooperation and foreign trade relations with the Republic of Uzbekistan and the Emirate of Kuwait. During the meeting, an exchange of relevant information took place on the development of foreign trade relations and the implementation of investment projects, the investment climate and opportunities created for investors.

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Also, the Director of the agency expressed his gratitude to Ahmad Khaled Aljeeran and provided information on the Ministry of Investment and Foreign Trade, the activities of the agency, the new system is introduced, the "Project Groups" created and the ongoing reforms, and also proposed joint implementation of projects with the Emirate of Kuwait in the fields of energy, electrical engineering, pharmaceuticals, textiles, tourism and agriculture, and said the agency is ready to support Kuwaiti investors.
The ambassador said that oil prices have risen sharply and this has affected the economy of the Emirate of Kuwait, as a result of which large Kuwaiti companies are looking for new markets. It was also noted that among the countries of Central Asia, Kuwait is interested in Uzbekistan because it is a dynamically developing and stable country. During the conversation, special attention was paid to agriculture and animal husbandry. In order to further develop bilateral cooperation, Ahmad Khaled Aljeeran suggested organizing mutual business forums, conferences and round tables with large Kuwait companies, organizing an exhibition of products manufactured in Kuwait and Uzbekistan, holding presentations on the investment potential of Uzbekistan, as well as organizing visits of Kuwaiti investors to Uzbekistan.

On June 2 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received a delegation from the Ivanovo region of the Russian Federation, headed by its governor Stanislav Voskresensky. The meeting was also attended by the leadership of the Chamber of Commerce and Industry of the Republic of Uzbekistan and the Uztekstilprom Association.

During the meeting, issues of establishing interregional cooperation between the Ivanovo region of Russia and the regions of Uzbekistan in the field of industry, trade and education were discussed.

In particular, the prospects for cooperation in the textile industry were considered, bearing in mind the organization of the production of a wide range of high-tech and competitive products. The prospects of creating joint textile clusters, production of garments and knitwear, and development of the design and modelling of clothing using high-tech fabrics were noted.

Measures were also considered to establish cooperation in the field of specialized higher education for specialists in the textile industry of Uzbekistan and to create centres of competence in the field of light industry in the country.

Following the meeting, the parties agreed to intensify work on the implementation of specific initiatives in the framework of the areas considered.

 

Source: mift.uz

Under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a videoconference was held to discuss the current indicators of the country's investment and foreign trade activities, as well as further measures to increase them.

The meeting was attended by heads of ministries, departments, industry associations, commercial banks and local authorities of the Republic of Karakalpakstan, regions and Tashkent city.

According to the results for the last 5 months, the volume of assimilated foreign investments exceeded the figures for the same period last year by 42 percent. At the same time, the analysis revealed a number of problems associated with the implementation of investment projects in certain industries and regions. It was instructed to conduct an inventory of ongoing projects, develop targeted measures to address existing issues within the established time frame and identify responsible executors.

Similarly, foreign trade indicators were considered: as of June 1 of this year, the actual volume of exports in the country exceeded the figures for the same period last year by 21 percent. Following the discussion of the current situation with exports in the context of industries and regions, it was instructed to establish control over the prompt response of the responsible ministries, departments and local authorities to emerging problems related to the export activities of domestic entrepreneurs and to intensify work with exporters, meaning the provision of effective support in their activities and the development of measures to increase the volume of export deliveries.

As a result of the meeting, disciplinary measures were taken for omissions and shortcomings in supporting exporters and investors. Thus, in particular, the deputy khokims for investment and foreign trade of the Bozatau district and the city of Zarafshan were relieved of their posts.

Reprimands were issued to 19 deputy khokims who did not provide timely support to the initiators of investment projects, which led to the failure of the commissioning of 32 investment projects and the backlog in the creation of 395 jobs.

In addition, the deputy khokims for investment and foreign trade of Shumanai, Chartak and Kanimekh districts were given a trial period of 3 months to correct the shortcomings in their work.

Additional installations are given for the qualitative and timely completion of the assigned tasks. Responsible managers were warned of personal responsibility for the effectiveness of work to provide timely support to exporters and investors.

 

Source: mift.uz

In Tashkent, on the eve of the visit of the President of the Republic of Tajikistan to the Republic of Uzbekistan, the Uzbek-Tajik business forum was held, which brought together more than 200 representatives of official and business circles of the two countries.

The forum was opened by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov and First Deputy Prime Minister of the Republic of Tajikistan Davlatali Said.

During the speeches, the heads of delegations of the two countries noted the significant potential for expanding economic partnership, creating joint high-tech industries, establishing cooperation ties to produce products in demand and develop promising markets and called on representatives of the Uzbek and Tajik business communities for active and successful cooperation, at the same time emphasizing the readiness of the governments of the two countries to provide any necessary support in the implementation of joint projects.

It was announced that in order to intensify mutual trade and stimulate the development of industrial cooperation, in the near future it is planned to create a border trade and industrial zone "Uzbekistan - Tajikistan" in the area of ​​​​the Oybek and Fotekhobod checkpoints, where production facilities, logistics centres and necessary infrastructure.

It was also announced the intentions of the two countries were to intensify work to further deepen industrial cooperation in such areas as light industry, the production of agricultural products and building materials, pharmaceuticals, electrical engineering, mining and energy. In this vein, the opportunities of the Uzbek-Tajik Investment Company established in 2021 as an effective tool to support private sector projects were emphasized.

During the Forum, it was also told about joint projects and initiatives in the areas of transport, logistics and interregional cooperation.

Also on the sidelines of the event, targeted meetings of participants in the B2G and B2B formats took place. As a result of the forum, 75 trade and economic documents worth $1,062.6 million were signed.

 

Source: mift.uz

The meeting of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov with the First Deputy Prime Minister of the Republic of Tajikistan D. Said was held at the Ministry of Investments and Foreign Trade.

During the meeting, the current state and measures to expand bilateral cooperation in the field of investment, trade, energy, water management, transport and logistics were discussed.

It was emphasized that investment cooperation and industrial cooperation between the two countries are characterized by growing dynamics: now 64 enterprises with Uzbek capital operate in Tajikistan, and 252 Tajik companies operate in Uzbekistan. The parties discussed issues related to the implementation of current projects, and also agreed to speed up work on the development and coordination of new promising initiatives.

It was noted that over the past 5 years, the volume of mutual trade has increased significantly - almost 3 times, and in the first four months of this year, this figure increased by 35 percent compared to the same period of the previous year. The parties spoke in favour of intensifying joint work to increase the Uzbek-Tajik trade in order to bring its value to $1 billion and discussed mechanisms for further cooperation in this direction.

In this vein, opportunities were considered for creating a free industrial and trade zone "Uzbekistan-Tajikistan" in the border zone, which includes manufacturing enterprises, as well as logistics and wholesale distribution infrastructure.

Issues of cooperation in the field of energy and water resources were considered in a separate order, bearing in mind the implementation of joint projects for the construction of new energy-generating capacities.

Following the meeting, the participants outlined further steps for the qualitative and timely implementation of tasks to expand multifaceted cooperation between the two countries.

 

Source: mift.uz

On June 1 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov received the Ambassador Extraordinary and Plenipotentiary of Canada to the Republic of Uzbekistan E. Leclerc.

The conversation made it possible to discuss the most pressing issues of bilateral cooperation in the political, investment, trade and economic spheres.

It was noted that in many areas of interaction there is significant untapped potential, in connection with which the parties developed mechanisms for intensifying cooperation and outlined specific tasks for the near and medium-term.

Thus, in particular, measures were considered to attract Canadian financial and industrial companies to invest and implement projects in Uzbekistan. There are good prospects for Canadian business in the mining, chemical, petrochemical and textile industries, as well as in agriculture in Uzbekistan.

No less attention was paid to the development of mutual trade. It was emphasized that in 2021 the Uzbek-Canadian trade increased by 40 percent, in connection with which the parties agreed to develop specific proposals for diversifying and increasing mutual supplies.

In this context, the prospects for holding the Uzbek-Canadian business forum this year, as well as the Made in Uzbekistan and Made in Canada industry exhibitions in both countries, were discussed.

During the conversation, the parties also discussed the progress of work on Uzbekistan's entry into the World Trade Organization, the participation of the Canadian side in the implementation of projects and programs within the framework of the activities of the UN Multi-Partner Trust Fund for Human Security for the Aral Sea region, issues of establishing close ties and mutually beneficial cooperation between the regions of the two countries, in particular, between the Tashkent region and the province of Ontario, the Navoi region and the province of Quebec, as well as the Kashkadarya region and the province of Alberta.

 

Source: mift.uz

In accordance with the decisions of the Head of State and Government, a number of heads of structural divisions of the Ministry of Investment and Foreign Trade received new appointments:

- Head of the Department of Social Sphere and Pharmaceutical Industry Egamov Ulugbek Abduvalievich was appointed First Deputy Director of the Agency for the Development of the Pharmaceutical Industry;

- Head of the Department of Light and Electrical Industry Sultanov Mirmukhsin Mirsodikovich was appointed First Deputy Chairman of the Association "Uztekstilprom";

- Deputy Head of the Department of Geology, Mining, Metallurgy, Mechanical Engineering and Building Materials Egamberdiev Bunyod Bakhtiyarovich was appointed adviser on trade and economic issues and tourism at the Embassy of the Republic of Uzbekistan in the Republic of Indonesia;

- Head of the Main Department for Cooperation with the People's Republic of China Zhumaev Shokhzhakhon Shokirovich was appointed Deputy Chairman of the Board of the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan.

On June 1, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, during a meeting with the staff of the Ministry, sincerely congratulated them on their appointment and wished them success in their future professional activities.

 

Source: mift.uz

The State Statistics Committee announced the number of enterprises with foreign capital in Uzbekistan.

According to the Committee, as of May 1, the number of enterprises with foreign capital increased by 2.3 times compared to the corresponding period of 2018.

This figure was 5978 in 2018, 8536 in 2019, 10930 in 2020, 12487 in 2021, and 13877 in 2022.

 

Source: dunyo.info

In order to study the work carried out by the "project groups" of districts and cities of the Tashkent region, and the problems of 37 enterprises with the participation of foreign capital operating in the region, May 24-27 this year. Representatives of the UzIPA conducted a study in a number of districts and cities of the Tashkent region.

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During the study, the work teams carried out the following:
• Studied the activities of the "Project Groups" created in the regions and cities.
• Analyzed the economic potential of the regions and promising projects in the direction of identified "growth points".
• Familiarized with large industrial enterprises created in the regions with the participation of foreign capital.

Based on the observations, the existing problems and proposals of the "Project Groups" and large industrial enterprises with the participation of foreign capital were considered and appropriate instructions were given.

As of May 1, 2022, the number of registered business entities was 517,501, of which 484,935 are active business entities. Of the existing business entities, 481,138 are small businesses and 3,797 are large enterprises.

By organizational and legal form:

- 316 903 limited liability company,

- 89,148 private enterprises,

- 52,495 family businesses

By type of economic activity:

- in trade 157 107 units,

- in industry 91,066 units,

- agriculture, forestry and fisheries 46,045 units,

- construction 43,658 units.

 

Source: stat.uz

The solution from UZCARD and Innotech will help to apply the API for the development of products and services.

UZCARD and the Innotech group of companies have agreed on the joint use of the Universal Integration Platform in Uzbekistan. This is reported by the magazine PLUS.

The parties signed the corresponding agreement on May 26 during the international PLUS forum in Tashkent. The project will be unique for the Uzbek market and will give local players the opportunity to effectively develop in the fintech sector.

The universal integration platform is an ecosystem for the interaction of Uzbek companies and organizations in a one-stop-shop. It includes all required services, and participants will be able to work according to general rules and standards.

“[The platform] opens up new opportunities for digital transformation and growth in business efficiency in Uzbekistan. It will help create personalized recommendations, support products and services based on gender, location, customer behavior and other factors,” said Alexey Volynkin, Director of Business Development at Innotech.

The development of Innotech combines data on accounting for the use of API by external consumers in order to determine the cost of services. Organizations that need data from government agencies, insurance companies, banks, etc. will be able to find the data they need by purchasing access to the platform.

There are no such decisions in Uzbekistan, UZCARD Director-General Farrukh Ziyaev emphasized. According to him, the service will allow companies in Uzbekistan to respond flexibly to user requests in a rapidly changing market and business requirements.

 

Source: www.spot.uz

In May this year, the Ministry of Investments and Foreign Trade, together with the University of World Economy and Diplomacy (UWED), launched a pilot project to improve the skills of the heads of the regional departments of the department, who are also deputy khokims of districts and cities. The courses, which were held in the format of interactive seminars and discussions, were held on the basis of the Executive Education curriculum in the areas of Attraction of Foreign Investments and International Investment Law and Arbitration with the involvement of professors from the University of Glasgow and Oxford University (UK), as well as Columbia University and the University of California, Berkeley (USA). The programs are aimed, among other things, at developing leadership qualities, developing the ability to generate creative ideas,

On May 28, the course participants met with the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, where they were able to share their impressions and acquired skills.

An open and relaxed conversation made it possible to discuss topical issues and problems that the heads of regional departments of the MIFT face in the course of their work in the regions, consider aspects of interaction with foreign partners, and discuss the most effective mechanisms for attracting investments for the implementation of projects in Uzbekistan on the example of specific cases, taking into account local conjuncture.

The leadership of the Ministry noted the importance of effective application of the acquired skills in work on the ground and direct interaction with entrepreneurs in order to provide them with practical assistance - from the stage of developing investment projects to supporting the activities of enterprises being put into operation.

It is emphasised that in this context, the presence in the regions of specialists with analytical skills, strategic thinking and the ability to work for results is a key factor in the effective operation of the Ministry in the framework of the qualitative implementation of the tasks set.

Following the meeting, the participants exchanged views and proposals on the further organisation of the work of the MIFT in the regions based on the skills and knowledge gained during the courses.

 

Source: mift.uz

The bank will cover up to 75% of expenses for the implementation of international standards and management.

The European Bank for Reconstruction and Development will provide grants to small and medium-sized textile enterprises in Uzbekistan, the press service of Uztekstilprom writes.

EBRD representatives held talks with Textile Standard Services on 24 May. This is a subsidiary structure of the association, which is engaged in the implementation of international industrial standards at local enterprises.

The parties agreed to work together to support small and medium enterprises in the textile industry. We are talking about enterprises with 250 or fewer employees.

The EBRD, together with the company, will help them implement international standards, quality management systems, automation and marketing. The Bank will cover up to 75% of their expenses on a grant basis.

Textile Standard Services remains an accredited partner of the EBRD, the report says. The Bank will continue to invest in projects that facilitate the transition to an open market economy and the development of entrepreneurship.

Prior to this, Shavkat Mirziyoyev approved new benefits for the industry. In particular, exporters of dyed fabrics and finished textile and knitwear, which receive more than 80% of their revenue from abroad, will pay social tax at a rate of 1% until 2025.

 

Source: www.spot.uz

On May 25 this year, the Uzcharmsanoat Association, with the assistance of the Ministry of Investment and Foreign Trade, launched the 12th International Exhibition-Fair of Leather, Shoes, Leather Goods, Fur and Wool "UzCharmExpo - 2022", which is considered one of the largest exhibition events in Central Asia in this industry.

The opening ceremony of the exhibition was attended by the leadership of the Ministry of Investment and Foreign Trade, the Uzcharmsanoat Association, foreign guests, entrepreneurs, manufacturers and exporters from the leather, footwear and other industries.

It was noted that the country is pursuing a consistent policy of transforming the domestic industry in order to deepen the processing of raw materials, increase the output of finished products with high added value and increase the export potential of industries by increasing the competitiveness of manufactured goods.

The leather and footwear industry of Uzbekistan is in this regard one of the fastest-growing industries with significant potential for sustainable growth. The volumes and range of export-oriented finished products based on the deep processing of raw hides are expanding. Practical measures are being taken to provide comprehensive support to entrepreneurs working in this area in order to ensure the smooth operation of existing industries and encourage manufacturers to implement new projects.

Over the past 5 years, the total investment in the industry has exceeded $632 million, the annual production of leather and footwear has increased 5.8 times, and the export volume has reached $420 million.

Traditionally, the geography of the exposition is represented by Russia, Belarus, Great Britain, Italy, Germany, India, Turkey, Spain, Poland and other countries. Among the guests of honour are the heads of the International Council of Tanners, the International Fur Federation, foreign industry associations and unions. This year, representatives of more than 400 domestic and foreign companies submitted applications for participation in the exhibition. The exposition pavilions demonstrate a solid scale, impressive design and, most importantly, become a platform for establishing direct links between local and foreign industry manufacturers.

UzCharmExpo not only introduces the production potential of industrial enterprises from various regions but also invites those who wish to dialogue. The format of "B2B" and "G2B" negotiations, direct communication and presentations allows you to find common ground, develop new projects and sign contracts on the spot, which will undoubtedly be reflected in the final results. But so far, UzcharmExpo has 3 days of fruitful work ahead - until May 27 inclusive.

 

Source: mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held a meeting with the head of the Bright Uzbekistan media project Davron Abdullayev.

At the meeting, the author of the project presented the current information policy and content of the magazine, its focus on highlighting and promoting the export-import and investment potential of Uzbekistan in the international arena, including various industrial fairs and exhibitions, international events, meetings and forums, meetings of intergovernmental commissions held as in Uzbekistan and in other states.

The well-established cooperation of the project with a number of ministries and departments of the republic was noted, which makes it possible to receive first-hand information and cover the most relevant events in the field of business and entrepreneurship.

As chairman of the editorial board of the journal, Sardor Umurzakov at the meeting considered a number of new promising projects and agreed on a proposal to develop an appropriate "Roadmap" for their further implementation.

The issue of regular interaction and participation in the formation of the information content of the upcoming issues of the journal with the Agency for Strategic Development was also discussed.

 

Source: mift.uz

On May 23, 2022, a master class was held at the Investment Promotion Agency under the Ministry of Investment and Foreign Trade by Paul Sheahan and Kevin Thompstone, experts from the International Development Ireland (IDI).

Currently, the IDI is carrying out practical work to increase the investment potential of the Bukhara and Khorezm regions of the country, giving priority to the development of the agri-food industry, tourism and industrial development. According to him, in attracting investors, it is important to create and strengthen infrastructure, including roads, telecommunications, high-quality technologies, tax incentives, labour force availability, and transport accessibility.

Mr Thompstone emphasized the need to accurately convey information that investors are interested in so that we can provide complete information to investors who want to invest in our country. Paul Sheahan also shared Ireland's experience in the field of collective approach and legislation and institutional changes. At the end of the meeting, the agency staff received answers to their questions from Irish experts.

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According to UZEX, commodities for nearly 2.5 trillion soums were sold at all stock exchange platforms.

Over the past week, that is, for the period from February 21-27, goods worth 2,495.3 billion soums were sold on all trading platforms of the Uzbek Republican Commodity Exchange JSC, which is 10.5% more than in the previous week Of these, 88.3% of sales came from exchange auctions, 0.5% from the exhibition and fair sales, 10.9% from government purchases, and 0.3% from online auctions of license plates.

The total volume of transactions involving small businesses and private entrepreneurship amounted to 731.5 billion soums. As a result of electronic auctions for public procurement, the total savings of budgetary and corporate customers amounted to 45.4 billion soums.

During the period under review, 3,526 license plates were sold in the amount of 8.7 billion soums through an online auction. As a result of competitive bidding, 5.2% of completed transactions were for premium autonumbers; 7.7% of transactions for the 2nd category; 8.8% for the 3rd category; 11.8% for the 4th category; 23.3% for the 5th category; as well as 43.3% for the 6th category of license plates.

Exchange trading
During the reporting period, commodity resources worth 2,203.8 billion soums were sold at open exchange auctions. Selling enterprises put goods up for exchange auctions in accordance with approved schedules, including:

Sugar
A drop in prices was recorded on the sugar exchange market. During the past week, 7,855.0 tons of sugar were sold.

During the period under review, the daily average price for sugar of all categories decreased from 8,308.5 thousand soums to 8,264.5 thousand soums per ton.

Cement
Last week, 207.9 thousand tons of cement were put up for sale, of which 135.4 thousand tons, or 65.2%, were sold. The daily volume of cement sales averaged 27.1 thousand tons.

During the period under review, the daily average price for cement of all grades decreased from 572.9 thousand soums to 556.8 thousand soums per ton, or by 2.8%. Every day, an average of 310 buyers took part in the exchange auctions.

Liquefied gas
On the exchange market of liquefied natural gas, a decrease in prices was recorded. During the past week, 4,411.0 tons of liquefied gas were put up for sale, of which all 100.0% were sold.

During the period under review, the daily average price for liquefied gas decreased from 3,774.0 thousand soums to 3,730.5 thousand soums per ton, or by 1.2%.

As a result of exchange trading, the weekly weighted average price for liquefied gas amounted to 3,809.4 thousand soums per ton.

 

Source: review.uz

In January-April, the foreign trade turnover of Uzbekistan reached $17.2 billion US dollars.

According to the State Statistics Committee, compared with the corresponding period last year, this figure increased by $6.5 billion.

At the same time, in the structure of foreign trade turnover, exports amounted to $7.1 billion, of which goods ($6.2 billion) and services ($837 million).

Imports ($10.1 billion) - goods ($9.4 billion) and services ($727 million).

The balance was - 3 billion US dollars.

 

Source: dunyo.info 

The Deputy Prime Minister - Minister of Investments and Foreign Trade S. Umurzakov met with the Vice President of the Asian Development Bank (ADB) Ashok Lavas at the Ministry of Investments and Foreign Trade.

During the meeting, the current state and prospects for expanding bilateral cooperation between Uzbekistan and ADB were discussed.

The ADB leadership announced that in recent years Uzbekistan had created ample opportunities to strengthen the role of the private sector in almost all sectors of the economy. In this regard, issues of expanding the attraction of Bank resources to support private sector projects, especially women's and youth entrepreneurship, were discussed.

The parties considered joint projects using public-private partnership mechanisms to develop infrastructure, healthcare, education and the social sphere. Ashok Lavasa noted that the Bank is interested in expanding cooperation in the field of PPP, as evidenced by the inclusion in the cooperation agenda of projects to modernize schools and institutions in Tashkent and the Tashkent region, as well as the construction of multidisciplinary hospitals in Andijan and Bukhara using PPP mechanisms.

During the meeting, measures were agreed upon to promote ongoing projects, involve ADB experts in developing and implementing a public-private partnership mechanism for implementing projects in the transport, electricity and health sectors, and expand the volume of credit lines provided to commercial banks in Uzbekistan.

Issues on individual projects and initiatives were also considered, including the Program for the Modernization and Equipping of Primary Schools in the Regions of the Country, the project “Introduction of STEM Methods (Science, Technology, Engineering and Mathematics) in Secondary Education”, as well as the Program for Supporting Women Entrepreneurs “ WeFi.

Following the meeting, Vice President A. Lavasa informed about the decision of the ADB President to nominate the ADB Governor from Uzbekistan as the Chairman of the ADB Remuneration Committee, which determines the level of remuneration of the President, and Vice Presidents and members of the ADB Board of Directors. Previously, this position was traditionally held by representatives of the G20 countries.

 

Source: mift.uz

On May 20, 2022, a meeting was held between the First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Laziz Kudratov and the Deputy Minister of Foreign Affairs of Malaysia Kamarudin Jaffar.

During the talks, issues of further building up bilateral trade and economic cooperation were substantively discussed.

Particular attention was paid to increasing bilateral trade, including through the expansion of mutual deliveries of products that are in demand in the markets of the two countries.

Separately, the prospects for deepening cooperation in the field of introducing halal certification standards in order to increase the export potential of enterprises of the Republic of Uzbekistan were considered.

Along with this, the issues of increasing mutual tourist flows through the resumption of regular direct passenger flights between the two countries were discussed.

The parties agreed to organize a visit of representatives of Malaysian business circles to Uzbekistan in November of this year. to negotiate with Uzbek entrepreneurs on the implementation of new joint investment projects and the conclusion of trade contracts.

 

Source: mift.uz

In order to implement projects and create new jobs through direct investment in other industries in addition to the pharmaceutical sector in the Baysun district of the Surkhandarya region, as well as to further expand the activities of the Termez free economic zone, the Decree of the President of the Republic of Uzbekistan DP-37 “On measures to expand the territory of the free economic zone "Termez" was approved.

According to the Decree, as a result of the implementation of projects through direct investment in the Boysun district in various industries in addition to the pharmaceutical industry and the inclusion of the territory of the free economic zone "Boysun-pharm" into the free economic zone "Termez", the state unitary enterprise directorate of the FEZ "Boysun -farm" is being liquidated.

Participants of FEZ "Boysun-farm" are participants of FEZ "Termez" from the date of liquidation of FEZ "Boysun-pharm" in accordance with the established procedure. At the same time, no fee was charged for inclusion in the register of participants in the FEZ "Termez".

Business entities that have become participants in the Termez FEZ in accordance with the document are fully covered by all the benefits and guarantees established by law.

In accordance with the above Resolution, the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 179 dated April 12, 2022 “On measures to further improve the system for providing information on public services provided to the population and business entities” was adopted.

In connection with the liquidation of the state unitary enterprise Directorate of FEZ "Boysun-Pharm", creditors can present their claims to the administration of the free economic zone "Termez".

Address: Surkhandarya region, Termez city, At-Termizi street, house 1A. Contact phone: +998 97 244 00 02.

 

Source: mift.uz

The State Statistics Committee has published information on the activities of structures that are part of special economic zones (SEZ), small industrial zones (SIZ), technology parks and clusters in Uzbekistan.

According to the State Statistics Committee, as of April 1, there are 20 free economic zones, 116 MPZ directorates, 12 technology parks and 440 clusters in the country.

The FEZ included 512 enterprises, MPZ - 1865, technology parks - 58 and clusters - 446 enterprises.

At the same time, the volume of industrial production for the specified period totalled 13877.4 billion soums, including: in the FEZ - 5454.5 billion soums, refineries - 947.9 billion soums, technology parks - 111 billion soums and clusters - 7364 billion soums.

 

Source: dunyo.info

On May 19 of this year, a working group led by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and consisting of the heads of ministries, departments, industry associations, commercial banks and local authorities on-site monitored the ongoing work to study the current state and stimulation of accelerated industrial and socio-economic development of the Tashkent region.

Industrial production facilities and enterprises were visited, the example of which issues of the development of various industries were studied, as well as ongoing measures to create new jobs.

The members of the working group, through a direct dialogue with entrepreneurs and exporters, discussed the existing problems that they face in the process of production and export activities and developed algorithms for solving them. Responsible leaders directly on the ground were given instructions for their implementation.

Special attention was paid to the issues of industrial development of the region. The importance of intensifying the attraction of investments in the implementation of projects aimed at increasing the localization of products, for which there is an increased demand in the domestic market, which is mostly met through imports, was noted. In this regard, instructions were given to conduct a detailed analysis of the structure of regional imports, identify specific commodity items and develop project proposals in order to establish the production of these types of products in the Tashkent region.

It was also instructed to make an inventory of the existing problems in providing the population with infrastructure and social services, and develop specific practical measures to eliminate them, indicating the responsible leaders and deadlines.

Currently, the working group continues to work on studying the problems existing in the region and developing effective measures to solve them.

 

Source: mift.uz

On May 17, the Courtyard by Marriott Tashkent hosted an interactive training on attracting investments and servicing new and existing investors by international expert Robert Hayzak. The training was held as part of an IFC project supported by the Japanese government. The event was attended by employees of the Strategic Development Agency under the President of the Republic of Uzbekistan, the Ministry of Investments and Foreign Trade and the Investment Promotion Agency of Uzbekistan. During the event, ways to attract investors, the formation of joint ventures, the principles of the CRM system, as well as measures to address emerging issues were discussed. The training was concluded by a Q&A session where the participants received answers to their questions.

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The Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov met with the President of the Berlusconi Finanzaria investment fund Paolo Berlusconi and the President of the Energy System company Roberto Tucci.

During the meeting, the prospects for establishing and expanding investment activities in Uzbekistan by Italian entrepreneurs were discussed. The Italian side expressed interest in the implementation of major projects in the fields of energy and household waste processing. Plans were announced to increase the volume of saffron grown in the regions of Uzbekistan, which will strengthen the position of Uzbek farmers in this commodity niche on the international market and create additional jobs.

The parties substantively considered all the existing issues related to the implementation of these projects, and developed mechanisms for interaction for their prompt resolution, which will speed up the process of their implementation.

An agreement was reached to maintain an active and regular dialogue in order to accelerate the progress of the considered projects.

 
Source: mift.uz

The State Statistics Committee has published data on countries with a high share of exports from Uzbekistan, as well as countries importing Uzbek products for January-March 2022.

According to the data, China ranked first in the top ten countries to which Uzbekistan exported products in the first quarter of the year. Export volumes to China amounted to 526 million US dollars.

The countries are listed in the following order:

Russia - $485 million;

Turkey - $381 million;

Kazakhstan - $231 million;

Kyrgyzstan - $183 million;

Afghanistan - $171 million;

Tajikistan - $103 million;

Canada - $67 million;

Ukraine - $35.6 million;

Iran - $35 million.

China and Russia are also leaders in the list of countries from which imports went to Uzbekistan in January-March. The volume of imports from them amounted to 1.661 and 1.380 billion dollars, respectively.

The countries are listed in the following order:

Kazakhstan - $762 million;

Korea - $620 million;

Turkey - $395 million;

Germany - $364 million;

Turkmenistan - $155 million;

India - $154 million;

United States - $116 million;

Ukraine - 104.5 million dollars.

 

Source: dunyo.info

The Deputy Prime Minister - Minister of Investment and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received a delegation of the State of Israel headed by the Minister of Tourism, Co-Chairman of the Intergovernmental Commission between Uzbekistan and Israel Yoel Razvozov. The meeting was also attended by the heads of the foreign ministries and diplomatic missions of the two countries.

The conversation was constructive and allowed to discuss a number of important issues of Uzbek-Israeli cooperation in the fields of politics, economy, investment, trade, culture and tourism.

Mutual interest was expressed in strengthening inter-parliamentary ties and intensifying interaction within the framework of global and regional international organizations, in particular, in developing cooperation within the United Nations, as well as increasing the number of mutual visits at various levels.

The parties noted the relevance of joint work to build up trade and economic partnership. An agreement was reached to develop joint measures to increase the volume and diversify the range of mutual trade, and in this regard to create a joint working group consisting of deputy heads of the foreign trade departments of the two countries.

Further steps were also outlined to attract Israeli companies to implement projects in Uzbekistan in such areas as the textile, chemical and pharmaceutical industries, agriculture, healthcare and tourism.

During the dialogue, the prospects for holding this year the first meeting of the Uzbek-Israeli intergovernmental commission on trade, economic, investment, scientific and technical cooperation, as well as a business forum with the participation of representatives of business circles of the two countries, were also considered.

Following the meeting, the parties expressed their commitment to close and constructive cooperation in all areas considered and agreed on further steps to promote joint initiatives.

 

Source: mift.uz

In a recent speech at a meeting of the Senate, the Minister of Justice of Uzbekistan Ruslanbek Davletov noted that Uzbekistan needs to switch to concluding contracts according to the standards of the International Federation of Consulting Engineers FIDIC in the field of construction.

Full article at: uzace.uz

On May 13, Diana Bayzakova, Director of the Tashkent International Arbitration Centre (TIAC) at the Chamber of Commerce and Industry, held a master class at the Investment Promotion Agency under the Ministry of Investments and Foreign Trade. During her presentation, the director of the Arbitration Center spoke about the recent developments and the reforms in this field that took place in our country. At the end of the event, the participants received detailed answers to their questions.

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The money will be allocated for agriculture, handicrafts, small businesses and vocational training.

The Cabinet approved the amount of subsidies allocated to citizens for the development of their own business. This is reported by the Ministry of Justice.

The money will be allocated through the Fund for Involving the People in Entrepreneurship, operating under the Agency for Entrepreneurship Development. The types of subsidies and their amounts are listed below.

Agriculture

Citizens engaged in agriculture can count on the following payments:

 

 

  • for the construction of greenhouses made of lightweight structures - up to 30 BFS ( 8.1 million soums );
  • for the purchase of equipment for irrigation - up to 10 BDS ( 2.7 million soums );
  • for the purchase of seedlings and seeds - up to 3 BDS ( 810,000 soums );
  • unemployed citizens, migrants and people from low-income families who returned from abroad, to join agricultural cooperatives - up to 10 BRF ( 2.7 million soums );
  • to reimburse the costs of training in fish farming, from April 1, 2022 to January 1, 2025 - up to 2 DBF ( 540,000 soums );

Members of the Pasture Development Association will also be able to reimburse the costs of handicraft tools if they create at least one job. The amount is up to 10 BRV ( 2.7 million soums ).

Entrepreneurship

  • Persons included in the “notebooks” who wish to work as self-employed will be given up to 7 million soums for the purchase of the necessary tools and equipment (women - up to 10 million soums );
  • Unemployed people who want to start a business will receive a one-time payment to offset the costs of registering an individual entrepreneur or small business.
  • Beginning entrepreneurs can receive up to 10 BRF ( 2.7 million soums ) to pay for the rent of a building and premises rented less than 3 months ago.

Craft

  • When registering with the Hunarmand Association, artisans will be reimbursed the membership fee.
  • Masters teaching the craft to students will receive at least 2 BRD ( 540,000 soums ) per month for their training, salary and purchase of raw materials, for 6 months.
  • Pupils starting independent activities will receive compensation of 50% of the cost of equipment (the maximum amount is 25 BRD or 6.75 million soums ).
  • The same compensation is due to craftsmen for creating their websites and selling products via the Internet.

Vocational training

Vocational training centers operating in challenging environments may also receive subsidies. Within 3 months, for each student of one teacher, an amount of up to 4 BRD ( 1.08 million soums ) will be paid.

The standard applies to the following areas of professional training:

  • autotuning;
  • installation and repair of household appliances;
  • repair and setup of computers;
  • professional photo and video shooting;
  • assembly and repair of furniture;
  • hairdressing, manicure, pedicure;
  • cosmetology;
  • creation and processing of multimedia, design projects;
  • development and maintenance of software, information systems, mobile applications, websites.

To receive a subsidy, you need to contact the hokim's assistant in the mahalla where they permanently reside, or on the Online Mahalla platform. The money will be allocated after studying the information provided by the applicant.

 

Source: www.spot.uz

The parties will cooperate in the design of solar and wind power plants.

UzAssystem will promote the development of renewable energy in Kyrgyzstan. Writes about it Renewables Now.

The joint venture has signed a memorandum of understanding with the National Energy Holding Company of Kyrgyzstan. The document outlines the intentions to implement joint energy projects in the republic.

The parties will jointly develop projects for hydroelectric power plants, and solar and wind power plants, as well as cooperate in the management of these projects. They will also create a digital model of the Kyrgyz power grids.

In addition, energy companies will work together on smart grid systems and energy storage. Finally, they will be engaged in the modernization of standards in the field of electrical engineering.

It is noted that Kyrgyzstan plans to reduce atmospheric emissions by 44% by 2030. Now the absolute majority of the republic's power generation is accounted for by hydroelectric power plants - 92%.

UzAssystem was established in 2019 at the initiative of the Ministry of Energy and the international engineering company Assystem. She is engaged in the design and management of projects aimed at transforming the energy sector in Uzbekistan.

How is the development of renewable energy in Uzbekistan

In recent years, the government has been betting on "green" energy as a quick and environmentally friendly solution to the energy shortage. The key role is assigned to solar energy - according to the plan of the Ministry of Energy, by 2030 it will account for 17% of all electricity.

The first industrial photoelectric power plant in Uzbekistan started operating in August 2021 in the Navoi region. Now a number of similar facilities are being built around the country.

In addition to them, solar panels are installed in settlements and on the roofs of houses - from Namangan to Karakalpakstan. Enterprises such as the Mubarek Gas Processing Plant are also launching their own solar power plants.

It is getting cheaper to provide a house with renewable energy - according to the calculations of the Ministry of Energy, a block of photopanels for 2 kW, together with the installation, will cost 18-30 million soums. The state budget will compensate part of the costs of their installation, and will also provide a number of benefits.

Solar panel owners can also earn additional income by selling the generated electricity to local grids. The first such agreement was concluded in early November (Spot later published a detailed account of this practice).

 

Source: www.spot.uz

Earlier, the company's deputy chairman announced plans to place shares in Uzbekistan by the end of 2024.

Almalyk Mining and Metallurgical Combine are preparing to list its shares on the stock exchange (IPO). This follows from the data of the tender section of the UZEX website.

The company is looking for an underwriter for the initial placement of securities on local and foreign sites. Now 98.8% of its shares are owned by the state represented by the AUGA.

According to the annexes, AGMK will list up to 5% of its shares on the Tashkent Stock Exchange by the end of 2022. Also, during 2023-2024, the plant will hold a foreign IPO - up to 25% of the company will be put up for it.

The platform for foreign placement and its exact volume will be selected based on the recommendations of the underwriter. It is stipulated that the IPO period can also be shifted depending on market conditions.

 

 

Applicants will be judged on a number of criteria. This includes experience on stock exchanges (in particular, in the CIS and in the metallurgy industry), qualifications for working with investors, working out an IPO plan with calculations of its term and volume, a list of services, and so on.

Foreign companies can only participate in the form of a consortium with a consulting firm holding an Uzbek license. The winner must comply with confidentiality requirements.

The starting price of the services offered by Uzavtosanoat is $9 million , the completion period will be 365 days (1 year). Applications are accepted until June 7th .

Talks about the IPO of the plant have been going on for more than a year. Back in January 2019, Shavkat Mirziyoyev decided to reform the mining and metallurgical industry. The shares of AGMK were supposed to be listed on the stock exchange in 2023.

In November 2020, it became known that the plant had attracted international consultants for the transformation. Specifically, IPO readiness was assessed by KPMG. In addition, the plant plans to issue Eurobonds for $500 million.

As Abdulla Azizov, deputy head of the board of AGMK, said at a recent Tashkent investment forum, the placement on the local stock exchange was intended to be held in 2023-2024. Based on its results, they would prepare for a foreign IPO.

At the moment, only two large companies in Uzbekistan have carried out an IPO. The first was Quartz at the turn of 2017-2018, the second was Jizzakh Plastmassa from the end of 2019 - to the beginning of 2020.

Several other companies are preparing for an IPO. In particular, Uzmetkombinat plans to conduct an initial issue of shares in 2023. UzAuto Motors is looking for an underwriter to offer a 5% stake on the local stock exchange by the end of 2022.

In April, the president instructed to speed up the privatization of the largest state-owned companies. Thus, the IPO of UzAuto Motors and Uzairways should take place before the end of the year.

 

Source: www.spot.uz

The purchase price of wheat for the state reserve will double - from 1.55 million to 3 million soums.

Starting from June 1, the state will start selling and buying grain at market prices. Shavkat Mirziyoyev announced this at a meeting on reforming grain procurement, press secretary of the head of state Sherzod Asadov reports.

The President noted that food prices in world markets are growing rapidly. Today, 1 ton of wheat is sold on international exchanges for $400, which is 30% more expensive than at the beginning of the year.

To ensure price stability, it is necessary to increase the supply on the market - by ensuring the interest of farmers. All conditions will be created for farmers and clusters to sell their grain on the stock exchange, the president added.

Both Uzdonmakhsulot and private enterprises will buy grain through the exchange, at market prices - they are allocated 800 billion soums to replenish their working capital. In the future, the purchase of grain for the state reserve will also move to the stock exchange.

 

 

The Agriculture Fund will start selling previously purchased 1,783,000 tons of grain monthly, depending on demand.

The state will almost double the purchase price of wheat - from 1.55 million soums to 3 million soums. Based on the average prices on the exchange in July-August, farmers will be paid a positive difference.

For example, if the exchange price of a ton of grain in August is 3.5 million soums, the farmer will receive another 500,000 soums. More than 6 trillion soums will be allocated for these purposes .

Within two weeks, it was instructed to register all grain producers on the stock exchange. They will not be charged exchange fees this season.

Besides:

  • 500,000 tons of wheat, which will remain at the disposal of farmers, will be accepted for temporary storage at grain enterprises, and from July 1, for the first time, farmers and clusters themselves will put it up for sale at market prices;
  • the state will cover the costs of temporary storage of 500 thousand tons of wheat in grain farms, for which 100 billion soums will be allocated;
  • if there is a desire to sell the surplus grain grown by farmers and clusters, they sell it to state and private grain enterprises at negotiated prices.

In total, the state will provide 7.6 trillion soums for harvesting the current crop. The allocation of this money to the address, as well as the situation in the bread and flour market, will be monitored daily.

Farmers and clusters are the real owners of grain, Mirziyoyev pointed out . Therefore, it is forbidden to withdraw it from them under the pretext of the need for animal or poultry farming in feed.

The sale of grain through the exchange should not be subject to local restrictions - it must be ensured its unhindered delivery to enterprises in any locality. Khokims must compensate for the cost of its delivery to remote areas.

 

 

By August 1, state shares in 20 grain-growing enterprises were instructed to be put up for sale. The bakery workshops and shops created under them will be entered into the register and also put up for auction.

The heads of the regions are personally responsible for ensuring stable prices for flour and bakery products, the President stressed. According to him, reducing their production or unreasonably inflating prices will be considered sabotage.

 

Source: www.spot.uz

In January-March 2022, the highest share of investments in fixed assets aimed at new construction was observed in the Syrdarya region, where it amounted to 76.2% of the total investment in the region.The smallest share was noted in the Andijan region - 29.4% of the total investment in the region.

 

Source: stat.uz

From a studio in Ferghana, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting via videoconference to discuss the progress in the field of innovation and implementation of projects financed by international financial institutions.

The meeting was attended by heads of ministries, departments, industry associations, commercial banks, local authorities of the Republic of Karakalpakstan, regions and Tashkent.

The results achieved in the field of innovations in a number of areas, in particular, in the field of geology, mining and chemical industries, which are the "drivers" of the country's economy, were noted.

At the same time, during the meeting, a number of leaders of industry associations were pointed out the need to expand innovation activities, bearing in mind the organization of systematic work on the creation and implementation of new developments, conducting scientific research, involving the country's research institutions in solving specific practical issues and tasks in various industries.

Clear tasks have been set to staff specialized institutions with qualified specialists to coordinate the process of introducing innovations, develop a plan of measures to improve the country's performance in the international ranking of the Global Innovation Index and improve the material and technical base of scientific and educational organizations.

Targeted instructions were given to analyze the current state of the innovative development of industries and regions, as well as to increase the number of projects aimed at the production of innovative high-tech products.

It was also instructed to study the work of research organizations and higher educational institutions and evaluate the effectiveness of the work of deputy heads of state bodies and heads of scientific and educational institutions responsible for innovative development.

The heads of ministries and departments were instructed to ensure the preparation of "Roadmaps" that provide for the implementation of projects for the commercialization of innovative developments in 2022, as well as to develop and submit targeted programs for innovative development for 2023.

Local authorities were instructed to identify additional districts (cities) as new innovation zones, with proposals on specific development programs for these zones in 2022-2023.

In general, the Ministry of Innovative Development was instructed to prepare a draft Strategy for Innovative Development of the Republic of Uzbekistan for 2022-2026. for its further submission to the leadership of the republic.

During the meeting, the current state of the implementation of projects financed from the funds of international financial institutions was also discussed. It was announced that in January-February of this year, 105 projects implemented with the participation of international financial institutions disbursed $296 million, which is 100% of the planned parameters.

At the same time, the state of work on the coordination of pre-project documentation for a number of projects under development in the areas of water supply, hydropower, railway transport, and healthcare was reviewed in a critical manner. The practical aspects of the implementation of projects in the pharmaceutical, agricultural, and industrial sectors were considered, in connection with which disciplinary measures were taken against a number of responsible employees.

In the context of ministries and departments, the progress of the implementation of 29 projects totalling $2.4 billion, which should be put into operation before the end of this year, was considered.

Based on the results of the meeting, the heads of relevant ministries and departments were given targeted instructions to take prompt measures for the timely implementation and commissioning of relevant projects.

 

Source: mift.uz

 

The Ministry of Infocom and the Uzbekcosmos Agency met in Tashkent with a representative of SpaceX. The company received an offer to open a representative office and attract the Starlink project to Uzbekistan.

On May 10, Minister for the Development of Information Technologies and Communications Sherzod Shermatov held a meeting with  Ben McWilliams, Starlink project manager of the American company SpaceX for access to the markets of the Middle East, South and Central Asia, as part of the Space Technology Conference STC-2022 in Tashkent.

According to the press service of the Ministry of Information and Communications, the minister suggested that SpaceX open a representative office in Uzbekistan "to expand mutually beneficial cooperation."

According to the ministry, a company representative announced his readiness to implement large projects in Uzbekistan, as well as in other countries.

On May 9, Director General of the Uzbekcosmos Agency Shukhrat Kadirov also met with Ben McWilliams.

“The parties discussed the issue of bringing the Starlink project, which is being deployed by SpaceX, to the Uzbek market,” the agency’s press service said.

Starlink is a global satellite system created by SpaceX to provide high-speed broadband satellite Internet access in places where it is unreliable, expensive or completely unavailable.

 

Source: www.gazeta.uz

The International Agricultural University will accept the first students this year. It will train specialists for the agricultural sector on a grant and contract basis and issue a diploma from a partner university - the Royal Agricultural University of Great Britain.

The International Agricultural University will open in Tashkent this year. It is being created by the Ministry of Agriculture of Uzbekistan jointly with the Royal Agricultural University of Great Britain (Royal Agriculture University, RAU).

Gazeta.uz wrote about plans to open a new university last year. Its graduates will receive a diploma from the RAU, the oldest agricultural university in the UK, founded in 1845 and under the royal patronage of the Prince of Wales.

According to the decree of the President of Uzbekistan Shavkat Mirziyoyev dated May 7, the university is granted full academic and financial independence. Education in it will be conducted both on the basis of a grant and on a paid contract basis.

The main activity of the university is the training of "highly qualified, possessing modern knowledge and skills, independently thinking, patriotic, professional personnel based on the principle of "scientifically based, practice-oriented (science-based, practice-oriented) education", which is adapted to reflect the development agrarian sector, global trends and experience combined with national traditions”.

In addition, the university will conduct scientific research "covering the introduction of scientific achievements and innovations into production, the development of agricultural technologies and environmental sustainability practices, business development and operational efficiency in agriculture."

Directions of undergraduate education for the 2022/2023 academic year: smart agriculture, agronomy, biotechnology, agroeconomics, livestock development, food security, agrologistics. In the future, magistracy and doctoral studies will be opened.

The rector of the university will be proposed by Uzbekistan and appointed by the Minister of Agriculture in agreement with the Supervisory Board. The Supervisory Board of the University, consisting of 11 people, chaired by the Minister of Agriculture, will determine the admission parameters, forms, types and language of education, admission conditions, the amount of tuition fees, the opening of areas of education in the bachelor's degree, specialities of the master's and doctoral studies and other issues.

Starting from the 2023/2024 academic year, the university will operate a network Center for retraining and advanced training of personnel (Capacity Building Center) in the field of agriculture. By the end of this year, the university will open the Agro Innovation Incubator Center, which is engaged in the creation and implementation of start-up projects based on the scientific developments of students, undergraduates and scientific researchers, as well as professors-teachers, funded by international financial institutions.

From 2023, a specialized scientific council will begin to work to increase the scientific potential of the university, 50% of whose members will be selected from among international partners and compatriots living abroad.

The university will be located on the territory of the Tashkent Agrarian University. He is allowed to temporarily use the sports complex, hostel and laboratories of the university. By the 2024/2025 academic year, a new educational campus should be built for it - at the expense of grant funds from international financial institutions.

To finance the activities of the new university, funds from the European Union budget support program for the agricultural sector in the amount of $6 million and the World Bank - in the amount of $11 million are attracted. Financing will also be provided from funds coming from student education, economic, and scientific activities and the provision of services, charitable donations, grants and other sources.

 

Source: www.gazeta.uz

With the assistance of the Embassy of Uzbekistan, the China Association for Trade and Services and the Institute for Regional Economic Cooperation of Central Asia, representatives of Uzbek export enterprises and organizations are participating in an international training on the topic “Cross-border e-commerce”.

More than a thousand participants from about 100 countries of the world, including 30 Uzbek entrepreneurs, take part in the trainings, held every Saturday from March 2 to July 19 of this year.

During the trainings, representatives, specialists and experts of the world's leading companies in the field of online commerce will introduce participants to the latest news in the modern globalized world of e-commerce, related opportunities and specific factors, as well as knowledge and skills in using e-commerce platforms and resolving emerging conflicts.

On May 7, an official event dedicated to these trainings took place. It was attended by representatives of the State Council of China, the Asian Development Bank, such large e-commerce companies as ebay and Amazon.

Representatives of the Embassy of Uzbekistan in China informed the participants of the event about the ongoing reforms in our country in the trade and economic direction, their current positive results, as well as the conditions for supporting entrepreneurship created for domestic and foreign entrepreneurs.

The participants were introduced to a wide range of activities carried out for the development of e-commerce in Uzbekistan.

At the end of the event, it was noted that the organization of such trainings and training courses contributes to providing comprehensive support to young entrepreneurs in this industry, as well as creating opportunities for extensive trade between countries through electronic platforms in the future.

 

Source: dunyo.info

Central Asia’s two biggest economies still want in on the craze, but with safeguards for their grids.

Kazakhstan and Uzbekistan have introduced new regulations for cryptocurrency mining. The changes indicate anxieties over the technology’s grid-busting electricity consumption. 

Kazakhstan has added reporting requirements for existing investors in the sector, with would-be miners expected to produce a detailed plan before getting the green light. 

In Uzbekistan, the new rules aim to boost renewable energy, while also, like Kazakhstan, punish illegal farms.

In both cases, the changes entered force in late April but were reported by media this month. 

Central Asia’s relatively cheap energy has made it an attractive destination for crypto miners, with Kazakhstan emerging as a particular honeypot after China all but banned mining last summer.  

But the investments have proven a double-edged sword.  

Kazakh energy officials have for the past year or so been blaming crypto mining – especially so-called “grey miners” – for an unsustainable uptick in energy consumption. 

These new changes to the legal framework governing the industry were approved by the innovation ministry, which has championed crypto investments, and the energy ministry, which has been more sceptical for obvious reasons. 

Those hoping to enter the field should present a plan of their activities to officials 30 days before starting work. All operators will be asked to plan energy consumption in advance and break down their investment plans.

Uzbekistan’s new mining rules are a mixture of carrot and stick. 

On April 27, President Shavkat Mirziyoyev signed off on legislative changes that limit crypto mining to legal entities and offers significant incentives to use renewables.

Registered cryptocurrency miners connected to the national electricity grid will now have to pay double the rates of typical consumers and additional fees during periods of peak consumption. 

Miners that connect to the grid while ignoring these terms – i.e illegally – will be back-charged at five times the regular tariff if they are caught. 

None of this will apply to crypto miners that bring their own solar panels, however. 

Uzbekistan strongly encourages this model by offering tax and customs preferences for anyone bringing panels into the country to set up mining farms.

Illegal crypto-mining takes a variety of forms and can be difficult to stop, even if news of farm busts is now rivalling reports of drug busts in terms of prevalence in local media.  

In Uzbekistan’s central Syrdarya region authorities busted a farm with 1,500 mining installations and 9,280 Graphics Processing Units (GPUs) at the end of March. In its agreement with the grid, the farm had presented itself as a farm of a different sort – breeding rabbits – the national security service said.  

The same month, Kazakhstan said it had shut down more than a hundred grey miners. But officials there admit that many survive the culls. 

Back in 2018, the Uzbek financial news portal Spot.uz calculated that setting up a small crypto farm with 12 GPUs would cost $8,000 and would pay for itself in about half a year. 

Such calculations are changing all the time, in tune with highly volatile crypto prices. At present, cryptocurrencies are in something of a trough, with one bitcoin currently trading around $32,200, or just below half its all-time high. Price surges, such as the one in the second half of last year, typically lead to a boom in mining at the household level

If bitcoin spikes again, it seems, that no amount of regulation will save Central Asia’s embattled grids.

 

Source: eurasianet.org

In January-March 2022, the highest share of construction and installation works in the total volume of investments in fixed assets was observed in Kashkadarya region - 53.5%, or 1962.2 billion soums.

The lowest level of this indicator was noted in the Syrdarya region - 16.1%, or 479.9 billion soums. Jiak region recorded the highest share of expenses for the purchase of machinery, equipment and inventory - 62.3%, or 1123.3 billion soums.

 

Source: stat.uz

IT Park of Uzbekistan has initiated the Tumaris.TECH project, which can be attended by women and girls who conduct entrepreneurial activities in information technology in Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

The development program is designed for a year and is aimed at supporting women's initiatives in information technology. The project will include workshops, acceleration programs, startup exhibitions, financial literacy courses, and other relevant topics.

Beeline Uzbekistan, part of the VEON Group of Companies became a Digital-partner of Tumaris.TECH large-scale international project.

It was noted that the representatives of the Group will become members of the jury and mentors of the hackathon, and share their experience during the June incubation and acceleration program, where Beeline organizes a training module in digital areas. The second wave of the hackathon and incubation program will start in September. The final exhibition of startups created during the entire project is scheduled for February next year.

The first joint event of the partners is Tumaris online hackathon. The HACK is scheduled for May 27-29. Applications continue to be accepted.

Girls from Central Asian countries will have to create prototypes of digital products that solve current socio-economic problems in financial services, e-commerce, Deep Tech, and other areas.

The goal of the project is to provide Tumaris.TECH participants with new knowledge, create favorable conditions for the implementation of interesting startups.

 

Source: uza.uz

The President instructed to take measures to increase the volume of production and exports in the industry.

Shavkat Mirziyoyev held a meeting on the development of the electrical industry, press secretary of the President Sherzod Asadov writes .

Over the past 5 years, $465 million of investments have been attracted to the sphere, for which more than 160 projects have been launched. The volume of production of electrical products quadrupled (up to 17 trillion soums), exports tripled (up to $565 million).

By 2026, the task was set to double production and triple exports. The output of electrical engineering this year should grow by at least 20%. The President outlined the need for a constant search for new initiatives to the leadership of Uzeltekhsanoat.

The current 86 projects planned in the industry are not enough for this, Mirziyoyev added. Khokim of each region should launch new projects in the electrical field for at least $ 100 million , in total - for $ 1.5 billion.

In Tashkent, Samarkand and Fergana regions, it was instructed to create clusters of electrical engineering on the model of the Technopark in the capital.

In addition, the head of state ordered to deepen the processing of local copper for the supply of competitive finished products abroad. By the end of the year, it is necessary to ensure the processing within the country of 50% of the volume of metal, by 2026 - 70% .

A new copper cluster will be created near Akhangaran , which includes 12 projects worth $168 million . Its launch will ensure the processing of 90,000 tons of copper.

The use of renewable energy with local components will also be expanded. Households will be reimbursed 30% of the cost of installing water heaters powered by it.

It was instructed to adopt a special program to install solar water heaters in schools, hospitals and other social institutions, and lamps powered by photo panels on the streets. 100 billion soums a year will be allocated for these purposes.

Mirziyoyev stressed the importance of bringing the export of electrical equipment to $1 billion by the end of 2023. For this, the assembly of household appliances will be organized in the mode of processing on the customs territory - 20 billion soums will be provided to expand its exports.

It was instructed to strictly control the introduction of labeling for household appliances , approved in early April. This will prevent the import of low-quality and counterfeit goods.

Research and development centers (R&D, R&D) will be established at the main enterprises of the industry . They will be provided with grants up to 10 billion soums, as well as tax benefits:

  • social tax - at a rate of 1%;
  • land and property taxes - 1% of the calculated amount.

 

Source: www.spot.uz

On April 19, the President of the Republic of Uzbekistan adopted the Resolution “On measures to further expand the mechanisms for financing entrepreneurial projects in the regions”, which served as an additional incentive for small and medium-sized businesses. We are talking about solid financial support for entrepreneurial projects implemented in the regions, ensuring the timely implementation of entrepreneurial initiatives.

According to the document, commercial banks of the republic are provided with a credit line in the equivalent of 300 million US dollars at the expense of the Fund for Reconstruction and Development - to finance the activities of small businesses.

Any entrepreneur can get a loan, however, its size depends on the time of the enterprise.

  • less than 6 months - up to 1 billion soums;
  • 6-12 months - up to 2 billion soums;
  • 1-2 years - up to 3 billion soums;
  • 2-3 years - up to 4 billion soums;
  • over 3 years - up to 5 billion soums.

A soft loan is allocated for all projects in the field of production and provision of services, but there are restrictions. Within the framework of this initiative, loans are not available to initiators of projects in the field of construction, trade, intermediary activities, manufacturers of excisable goods, in addition, to state-owned enterprises and legal entities with a state share in the authorized capital, as well as to replenish working capital.

On the other hand, entities that meet the criteria will be able to receive a loan at 14% per annum for 5 years (including a 2-year grace period).

It is important to note a significant innovation - at least 70 percent of the loan will be allocated to those entrepreneurs who carry out their business in the territory outside the city of Nukus, administrative centers of regions and cities of regional subordination. Thus, the development of business and infrastructure, the creation of jobs in rural areas is stimulated.

The Ministry of Investments and Foreign Trade, which is entrusted with coordinating the effective use of the credit line allocated under this document, is carrying out a number of tasks to implement its provisions. In particular, work is underway to ensure the distribution of credit line resources by regions and commercial banks based on needs, measures are being taken to develop high-quality design and pre-project documentation by project factories and local groups in cooperation with commercial banks. A mechanism is also being introduced to carry out systematic monitoring of the effective and targeted use of the credit line by all participants in the process.

To prevent various kinds of delays, the document provides for the placement of resources requested by banks within three days after receipt of applications.

It is expected that as a result of the implementation of investment projects financed under this Decree of the Head of State, new jobs will be created - mainly in rural areas of the republic, the introduction of innovations and new technologies will be activated, new modern production facilities will be launched.

 

Source: mift.uz

The authoritative South Korean magazine "The Korea Post" published an article "The Urgut Free Economic Zone continues to provide great opportunities for investors.

The article notes that the Urgut Free Economic Zone (FEZ), created in 2017 at the initiative of the President of Uzbekistan, specializes primarily in mechanical engineering, automotive industry, as well as the processing of fruits and vegetables.

“Currently, 63 projects are being implemented in the economic zone with a total cost of 302.7 million US dollars. About 5,000 people received new jobs in the SEZ, the article says. “There is a special economic regime for investors in the territory, which gives financial and customs preferences, which makes it possible to reduce the cost of starting production.”

In conclusion, the publication gives 11 advantages of investing in the Urgut FEZ:

  • stable macroeconomic indicators and constant growth;
  • strategic location and potential of foreign markets;
  • tax and customs preferences;
  • skilled workforce with competitive wages;
  • the lowest tax rate in the region;
  • well-developed logistics system and convenient access to the CIS countries;
  • visa-free regime in 101 countries;
  • continuous growth of the ease of doing business index;
  • beneficial cooperation with international organizations;
  • economically efficient natural resources;
  • guaranteed installation of engineering and communication systems.

 

Source: dunyo.info

The United Nations Industrial Development Organization (UNIDO) will develop the "Sustainable upgrading of textile and garment industry in Uzbekistan" project, the communications officer of UNIDO Charles Arthur said.

Arthur said the project is in the pipeline, with a tentative budget of $2 million.

"The project will focus on improved access to local and export markets for textile and garment industries. Specifically, it will strengthen the productivity, competitiveness and collective export capacities of manufacturing companies, as well as applying innovative approaches and methodologies for branding, marketing and product design," the communications officer said.

According to him, the project will benefit from UNIDO’s "Branding for Competitiveness and Sustainable Growth" technical module, which focuses on brand creation for a pilot group of enterprises, aiming to strengthen their capacity to enter new market niches with innovative, high-quality, unique products that meet international standards.

"In the Joint Declaration, signed in December 2020, UNIDO and Uzbekistan’s Ministry of Economic Development and Poverty Reduction commit to promoting cooperation in various areas, including green industry, a circular economy, renewable energy and energy efficiency, agro-industrial clusters and light industry modernization. UNIDO has so far developed two projects to support the implementation of the Joint Declaration, "Arthur said.

The joint declaration was signed by the Minister of Economic Development and Poverty Reduction of Uzbekistan, Jamshid Kuchkarov, and the then Director General of the United Nations Industrial Development Organization, Li Yong, for an initial period of four years (2020-2024).

 

UNIDO is also carrying out research and analysis to provide input for the "Industrial Development Strategy of the Republic of Uzbekistan until 2030".

 

Source: en.trend.az

On May 4 this year, the 7th meeting of the Uzbek-Hungarian Intergovernmental Commission on Economic Cooperation (IGC) was held in Tashkent under the chairmanship of Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov and Minister of Foreign Affairs and Trade of Hungary Péter Szijjártó.

The meeting was attended by the heads of key ministries, agencies, industry associations, commercial banks and educational institutions, as well as diplomatic missions of the two countries.

During the meeting, issues of further development of cooperation in investment, industrial, trade and economic, banking and financial, cultural and humanitarian areas were considered and agreed upon.

During their speeches, the heads of delegations of the two countries noted the regular and systematic nature of bilateral interdepartmental contacts at the level of leaders and experts, as well as the constant focus of the two states on the progressive expansion of mutually beneficial cooperation in areas of common interest. A significant impetus to the development of Uzbek-Hungarian relations was given largely thanks to the efforts and will of the Heads of the two states. Mutual readiness to strengthen partnership in the fields of investment, trade, tourism, financial and technical, cultural and humanitarian and interregional cooperation was expressed.

It was noted that over the past 4 years, the volume of Uzbek-Hungarian trade increased 3 times and showed growth even in 2020-2021, despite the negative consequences of the pandemic. Significant potential for diversification of markets and trade flows, as well as increasing mutual supplies of chemical, food, machine-building, pharmaceutical and textile industries was noted. In this context, the parties welcomed the approval and signing of a Joint Action Plan between the Hungarian Export Promotion Agency and the Export Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan on the sidelines of the IGC, stressing that this step will give a significant impetus to the further expansion of mutual trade.

Special emphasis was placed on joint actions to develop industrial cooperation between entrepreneurs of Uzbekistan and Hungary. The prerequisites for this are the growing interest of Hungarian business in expanding its activities in Uzbekistan and the significant industrial potential of a number of sectors of the Uzbek economy, including the information and communication sector, electronics, biotechnology, construction materials production, mechanical engineering, chemical and textile industry. The heads of the relevant sectoral agencies of the two countries made specific project proposals, outlining vectors for further deepening practical cooperation within each direction. Preliminary agreements were reached on the implementation of joint investment projects aimed at creating high–tech industries with the aim of setting up production of with high added value products and, in the future, exporting them to third-country markets.

In this context, the parties spoke in favor of intensifying joint work to bring the business communities of the two countries closer together and agreed to hold a regular meeting of the Uzbek-Hungarian Business Council and a business forum with the participation of Uzbek and Hungarian entrepreneurs this year.

An agreement was also reached on the development and approval of a joint Industrial Cooperation Program for 2022-2023 with the inclusion of promising projects in priority sectors in the near future.

Further steps to promote the activities of the launched Uzbek-Hungarian Startup Program for financing joint investment projects were discussed. It is worth noting that as of now, the implementation of 9 joint projects has already started. The parties considered issues related to their practical implementation and outlined directions for the development and selection of new project initiatives.

Special attention was paid to the development of interregional cooperation. The meeting participants discussed concrete steps to intensify practical cooperation at the regional level within the framework of the Interregional Cooperation Agreement signed last year. An agreement was reached on the establishment of permanent working groups under the leadership of the deputy heads of the regional administrations of the Tashkent, Navoi and Jizzakh regions of Uzbekistan and Pest, Veszprém and Fejér regions of Hungary, respectively, as well as the development of step-by-step interregional cooperation programs, including mutual exhibitions, business forums and trade missions. It was agreed to hold a joint Forum of Regions in Uzbekistan in the second half of this year with the participation of representatives of the business circles of the two countries.

A number of agreements were also reached in the cultural, humanitarian and tourism areas: holding Days of Cinema and Culture of Uzbekistan and Hungary in the second half of this year, allocation of additional quotas for Uzbek students for studying in Hungarian universities within the framework of the scholarship program of the Hungarian government "Stipendium Hungaricum", accelerated launch of activities in Tashkent branch of the University of Debrecen, development of joint educational programs with the involvement of leading Uzbek and Hungarian educational institutions, as well as holding a joint another Forum of Rectors of Universities of Uzbekistan and Hungary. The parties particularly noted the signing of an Agreement on Cooperation in the field of Tourism on the sidelines of the IGC, designed to create favorable conditions for increasing mutual tourist flows.

Following the meeting, the final protocol was signed, reflecting all the agreements reached, as well as the joint projects and initiatives.

 

Source: mift.uz

The starting price of the lot is 80 billion soums

The founder of the project-cluster "Marmar Obod" in the Navoi region (Gazgan city) "NBU Gazgan Invest" put up for auction 99.9% of the company's shares, according to data portal E-auksion.

A 99.9% share in the authorized fund of Marmar Obod is sold subject to the condition that the winner of the auction assumes the following obligations:

- to make an advance payment to the seller in the amount of 50% no later than 2 months and the remaining 50% payments in installments within 5 years without accruing interest on the remaining amount in accordance with the sale and purchase agreement concluded following the auction with the seller;

 on reimbursement of expenses for the provision of collateral, organization and conduct of the auction;

- on joint and several payment of the debt of "Marmar Obod" to the Navoi branch of the National Bank and Asakabank on loans, to "NBU Gazgan Invest" and "NBU Invest Group" on financial assistance and to the contractor;

 to ensure the fulfillment by Marmar Obod of the obligations assumed under the concluded export contracts.

According to the documents, "Marmar Obod" has licenses for the extraction of granite in the following 5 quarries for a period up to 2050:

 Pashot-Gazgan

 Kontahta

- Pashshot-Barkash, located in the Nurata region;

- Pargot-2, located in Gazgan;

- Kurasayskoe, located in the Khatirchi district.

The enterprise occupies an area of ​​6 hectares, excluding the land plot of 5 quarries belonging to the enterprise. The area of ​​buildings is more than 15 thousand square meters. The authorized capital of the company is slightly more than 71 million soums. The net profit of the enterprise for 2021 amounted to 306.8 million soums.

Proposals are accepted until May 13 of the current year. The closing date for applications and the announcement of the winner is at 10:00 am on the same day.

 

Source: kapital.uz

On April 28 this year, in the format of a video conference, under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a meeting was held to discuss the issues of investment and trade and economic cooperation between Uzbekistan and Hungary, Kyrgyzstan and Tajikistan, as well as practical measures for its activation.

The meeting was attended by heads of ministries, departments, industry associations, commercial banks, local authorities of regions, the Republic of Karakalpakstan and the city of Tashkent, heads of diplomatic missions of Uzbekistan in Hungary, Kyrgyzstan and Tajikistan, as well as representatives of business circles with counterparts from the above countries.

The high practical significance and effectiveness of the high-level events with Hungary, the Kyrgyz Republic and the Republic of Tajikistan, held in 2021, were emphasized, as a result of which the relevant Roadmaps were adopted. During the meeting, the implementation of the agreed agreements was substantively considered, the existing issues were analyzed, algorithms for their prompt solution were developed, and appropriate instructions were given.

In particular, it was instructed to conduct an inventory of bilateral agreements with these states, organize additional negotiations with foreign partners in order to work out problematic issues, as well as ensure the timely implementation of approved investment projects and the provision of practical assistance to their initiators.

The heads of industry associations presented reports on the current state, as well as plans for the development of investment and trade cooperation. Installations are given to maximize the use of the existing potential for deepening economic partnership with the above countries.

Following the meeting, it was instructed to submit lists of new promising investment projects and trade agreements to the Ministry of Investment and Foreign Trade as soon as possible, as well as to intensify negotiations with foreign partners in order to accelerate the achievement of firm agreements.

 

Source: mift.uz

On April 25 this year, the International Industrial Exhibition "Innoprom. Central Asia" - the largest event in the region aimed at enhancing investment, industrial, trade and economic cooperation, as well as establishing new business contacts and developing industrial cooperation between enterprises of Central Asian countries - started. The organizers are the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan as well as the Ministry of Industry and Trade of the Russian Federation.

The key objective of the exhibition is to build a dialogue between regions and countries in order to find points of common interest to give new impetus to the growth of investment, industrial, trade and economic cooperation, as well as to increase the number of mutually beneficial projects.

This year, more than 5,000 participants, over 200 foreign companies and business delegations from CIS countries, France, Italy, the Netherlands, India, Ireland and Japan have registered to participate in the exhibition as well as official delegations, including from the Russian Federation, Tajikistan, Belarus, the Kyrgyz Republic, Azerbaijan, Turkmenistan and Mongolia.

The key event of the first day of the exhibition was the main plenary session, held under the slogan "Central Asia - space for a technological breakthrough", which was attended by the heads of delegations of the participating countries: Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov, Minister of Industry and Trade of the Russian Federation D.Manturov, Minister of Industry of the Republic of Belarus P.Parkhomchik, Minister of Economy and Commerce of the Kyrgyz Republic D.Amangeldiev, Minister of Economy of the Republic of Armenia V.Kerobyan, Minister of Industry and New Technologies of the Republic of Tajikistan Sh.Kabir and other officials.

Speaking during the plenary session, the head of the Uzbek delegation S.Umurzakov outlined the successes achieved by Uzbekistan in implementing large-scale socio-economic reforms, improving the public administration system, building a transparent market economy and increasing the role of the private sector in it, improving the investment climate and eliminating trade barriers. He also announced priority areas for further development of the country's economic and investment potential, including the implementation of effective administrative reforms, reduction of the state's share in the economy, digitalization of industry, business support, infrastructure development, stimulation of production with high added value through deep processing of raw materials and the creation of complete commodity and raw material chains, human capital development and liberalization foreign trade.

"The Central Asian countries have great potential for building up trade and economic relations. Today's realities require us to take decisive steps to form a new model of economic cooperation in Central Asia. Our economic partnership can be much larger and developed on the basis of complementarity and effective cooperation. In Uzbekistan, we have been working on an ongoing basis with each of the neighboring countries in Central Asia and a number of other countries for several years in order to find "growth points" to combine the capabilities of our economies and achieve breakthroughs in industrial cooperation," S.Umurzakov noted in his speech.

In turn, Minister of Industry and Trade of the Russian Federation D. Manturov stressed the international and purely economic nature of this year's exhibition. Innoprom carries the definition of how industry should be represented today in its global cooperative format, and Innoprom is international industrial cooperation. This is not a political, but a purely economic, purely practical platform on which new cooperative relations are being built, which create the basis for the development of the economies of our countries," he said. On the sidelines of the session, the participants exchanged views and identified points of mutual contacts in the context of further development of industrial cooperation and economic cooperation, voicing specific proposals and initiatives for further joint study.

The exhibition will continue its work on April 26 and 27. Within the framework of the business program, panel discussions and thematic sessions are scheduled to discuss issues of international cooperation in the field of introduction of new technologies, coordination and implementation of regional industrial policy, exchange of experience and proven practices of state support for stimulating industrial development, improving the urban environment, building cooperation mechanisms in the field of production, digitalization and automation, introduction of innovative financial products for implementation of joint projects, as well as deepening the economic partnership of the countries of the region.

Presentations of the investment and industrial potential of various sectors of Uzbekistan, educational sessions and other events covering the main issues of industrial production and cooperation with Central Asian countries, as well as a B2B contacts exchange will be organized on the sidelines of the international exhibition. Some events are aimed at building links between the administrations and industrial companies of the regions of Uzbekistan and the participating countries of the exhibition. The whole range of opportunities in this context will be reflected by expositions of innovative industrial developments and products of large manufacturers, a number of national, regional and corporate stands.

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Source: mift.uz

 A Presidential Decree (UE No. 115 dated 04.25.2022) "On additional measures to simplify the application of the customs regime" processing in the customs territory "was adopted.

According to the Decree, from May 1, 2022, a simplified procedure for applying the customs processing procedure will be introduced in the customs territory. Wherein:

packaging, packaging (including repackaging), sorting, cleaning of goods, its adjustment to other goods and modernization of equipment are considered processing operations in the customs territory;

when placing goods under the customs regime "processing in the customs territory", mandatory confirmation of the compliance of goods with the requirements of regulatory enactments in the field of technical regulation and the submission of a sanitary and epidemiological conclusion are not required;

the norms for the output of processed products are approved by the subject of processing and submitted to the customs authority;

for the processing of the same type of goods, regardless of the number of contracts, the customs authority issues a general permit for a period not exceeding 2 years;

the procedure for ensuring the payment of customs payments does not apply to participants in special economic zones and authorized economic operators;

when registering waste generated in the process of processing in the customs regime "release for free circulation", customs duty is not levied.

Customs duty rates for the export of goods, benefits, preferences and other export support measures also apply to processed products exported under the "re-export" customs regime.

In cases where the purpose of applying the customs regime "processing in the customs territory" is the repair of goods, a permit for the processing of goods in the customs territory is not required.

A permit for the processing of goods in the customs territory may later be transferred by a participant in foreign economic activity to another person (if this person assumes all obligations under this permit).

According to the Decree, the Department for Improving the Customs Regime "Processing on/Out of the Customs Territory" was established under the State Customs Committee.


Source: uzdaily.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov received Minister of Industry and Construction Production of Turkmenistan B.Annamamedov.

During the meeting, the sides exchanged views on topical issues of bilateral cooperation. The parties stressed the tangible growth in the indicators of economic partnership between the two states and spoke in favor of intensifying joint efforts to expand them further.

It was noted that over the past 4 years, the volume of Uzbek-Turkmen trade turnover has increased 5 times, and in 2021, the growth of mutual trade amounted to 65 percent compared to the previous year. A number of trade contracts signed following the results of the high-level events held in September 2021 are at the stage of practical implementation.

Measures to intensify industrial cooperation and create complete value chains involving production facilities stationed on the territories of the two countries were discussed. Proposals were put forward to expand cooperation in the field of industry in new promising areas identified on the basis of the competitive advantages of the economies of Uzbekistan and Turkmenistan.

The mechanisms for strengthening interregional cooperation were considered. The parties agreed to strengthen the coordination of the administrations of the regions of the two countries in order to develop new projects of industrial cooperation and trade contracts.

Mutual readiness was expressed to organize visits of delegations of ministries and agencies of Uzbekistan and Turkmenistan to exchange experience in the field of food security.

Following the meeting, an agreement was reached to continue constructive interaction in all areas of bilateral relations and to work together to provide practical assistance in elaboration and resolution of existing issues.

 

Source: mift.uz

On April 22 this year an event was held at which the Chairman of the Yakkasaray Interdistrict Court for Civil Cases G. Ergashev and the Deputy Chairman of the Court G. Khamrayeva made a presentation to the staff of the Foreign Investment Agency, the Export Promotion Agency and the Agency for International Cooperation and Development under the Ministry of Investment and Foreign Trade on anti-corruption system in Uzbekistan. During his speech, the chairman of the court spoke about the step-by-step measures taken in Uzbekistan to prevent corruption as part of the implementation of the Development Strategy of New Uzbekistan for 2022-2026, as well as to reduce the human factor through the digitalization of decision-making on the ground.
At the end of the event, the participants received detailed answers to their questions.

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In January-March 2022, the foreign trade turnover of the Republic of Uzbekistan amounted to 13.2 billion US dollars.

Foreign trade turnover - 13.2 billion US dollars

Export - 5.8 billion.

          🔹 goods - 5.2 billion.

          🔸 services - 568 million.

Import - 7.4 billion.

          🔹 goods - 6.8 billion.

          🔸 services - 530 million.

Balance - 1.6 billion.

 

Source: stat.uz

In Uzbekistan, from July 1, certain requirements and conditions for obtaining certain types of licenses and permits in the field of medicine, pharmaceuticals, architectural and urban planning documentation, labour activity and others are cancelled.

From July 1, certain requirements and conditions for certain types of licenses and permits are cancelled in Uzbekistan. This is provided for by the presidential decree of April 20.

In particular:

No. Name of license or permit

Cancellable requirements and conditions of a permissive nature

one License for medical activity The presence of the right of ownership or another legal basis of the relevant buildings, premises, equipment and inventory when organizing remote medical consultations and examinations in the field of medical activity using mobile applications.
2 License for pharmaceutical activity (in the direction of retail sale of medicines and medical products) The presence of a pharmacist in the staff of a legal entity during the delivery of medicines and medical products paid by the buyer
from pharmacies to buyers;

availability of pharmaceutical education
for a pharmacy employee for the delivery of medicines
and medical products
upon consultation by means of communication.
3 License for the development of architectural and urban planning documentation Availability on the right of ownership or other
legal basis of the relevant buildings,
premises, equipment and inventory;

compliance with national standards
and requirements for orders received from
abroad.
4 Registration card of a cash register with fiscal memory The presence of a stationary point for the
use of cash registers
with fiscal memory when accounting for cash
in the sale of goods,
works and services, as well as the existence of an agreement
with a servicing bank on the collection of
cash proceeds.
5 Confirmation of the right to carry out
labour activities in the territory of Uzbekistan
Obtaining confirmation of the right to
carry out labour activities
in the territory of Uzbekistan when
carrying out activities in a remote
(online) form, while abroad.
6

Notification of the commencement or termination of activities for the sale of jewellery and other products made of precious metals and precious stones

The presence of relevant buildings and structures on the basis of ownership or other real rights for business entities in the form of an online store in the direction of selling jewellery and other products made of precious metals and precious stones.

From July 1, the same decree abolishes the collection of public utilities, including business entities, a number of information and documents.

 

Source: www.gazeta.uz

In the first quarter of 2022, the economy of Uzbekistan was under increased pressure from the external environment: instability in the main trading partner countries, increased volatility in the world market of goods, and disruption of logistics chains. Meanwhile, the economy of Uzbekistan in the first three months demonstrated not only resistance to large-scale external challenges, but also positive growth dynamics.

Source: Review.uz

According to the State Statistics Committee of the Republic of Uzbekistan, the gross domestic product (GDP) of Uzbekistan increased by 5.8% in January-March against an increase of 2.6% in the first quarter of 2021.

The economic situation in the main trading partner countries remained generally stable in the first months of this year. In Kyrgyzstan, the economy grew by 4.5% in January-March, against a decline of 9% over the same period in 2021. In Kazakhstan, despite the shocks of January, economic growth of 4.4% is noted, whereas in the first three months of last year there was a decline of 1.4%. China's GDP grew by 4.8% over the period under review, accelerating by 1.3% by the 4th quarter of 2021.

It is still difficult to judge the Russian economy since there are no official statistics for three months. Meanwhile, VEB.RF estimated Russia's GDP growth for January-February at 3.6%. At the same time, it is expected that the events of March will have a serious impact on the economic indicators of the first quarter and the year as a whole. The economic turmoil of March related to the Russian-Ukrainian conflict is likely to begin to affect the economic performance of Central Asian countries in the coming months.

 

Source: review.uz

In January-March 2022, the gross domestic product (GDP) of Uzbekistan at current prices amounted to 162.8 trillion. soums.

Compared to the corresponding period in 2021, the growth was 5.8%.

In January-March 2022, GDP per capita at current prices amounted to 4,604.6 thousand soums ($420), an increase of 3.7% compared to the corresponding period of 2021.

 

Source: stat.uz

During the visit of the Government delegation of the Republic of Uzbekistan to Saudi Arabia, the heads of relevant ministries and departments of the country held a number of meetings and negotiations with Saudi partners and businessmen to discuss promising areas of multifaceted bilateral cooperation and search for new growth points of mutually beneficial partnership.

So, in particular, negotiations were held with the leadership of the Saudi companies ACWA Power, Al Rajhi, Dr. Sulaiman Al-Habib, Saudi German Hospitals, Saudi National Bank, Ma'aden, Dar Al Arkan and Al Hokair.

Prospects for the implementation of new projects in the fields of fruit and vegetable growing and animal husbandry, extraction and processing of natural resources, textile industry and construction were considered in a substantive and constructive manner.

Special attention was paid to the healthcare sector – preliminary agreements were reached on the creation of multidisciplinary medical institutions and medical clusters combining diagnostic, educational and research units, as well as cooperation in the digitalization of medical services.

The possibilities of cooperation in the privatization of Uzbek commercial banks were discussed with representatives of Saudi banks.

Measures to increase the volume of passenger and cargo air transportation between Uzbekistan and Saudi Arabia were also considered.

The parties will continue close cooperation and negotiations at the leadership and expert levels to reach firm agreements and sign relevant contracts in the near future.

 

Source: mift.uz

On April 19, the Investment Promotion Agency of Uzbekistan under the Ministry of Investments and Foreign Trade held a meeting with Botir Arifzhanov, the founder of Astrum Academy and a number of other major projects.

During the meeting, an experienced entrepreneur and investor shared his views on the development of the investment climate in Uzbekistan and the establishment of mutually beneficial relations with investors.
At the end of the meeting, the agency staff received detailed answers to their questions from an experienced entrepreneur and investor.

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On March 31, 2022, in London, the international rating agency Moody's Investors Service assigned ALFA INVEST insurance company JSC an insurance financial strength rating (IFSR) in national and foreign currency with a level of "B2" with a "stable" outlook.

According to a report by Moody's Investors Service, the assigned 'B2' rating reflects the company's stable position in the growing insurance market of Uzbekistan, a diversified range of insurance products, strong capitalization in relation to the risks taken, as well as stable historical results of insurance activities.

Today, ALFA INVEST is one of the ten largest insurers in Uzbekistan with a market share of 5 to 7% in dynamics, and is also one of the largest leading private insurance companies in Uzbekistan, providing insurance services since 2003. A stable position in the insurance market of Uzbekistan is supported by the presence of a wide agent network, branches in all regions of Uzbekistan and a rapidly growing portfolio of general insurance.

The financial results of the company are confirmed by the positive opinion of the audit organization Grant Thornton. The growth rate of the company in collecting insurance premiums in the amount of 160.7% and payments made in the amount of 132.3% at the end of 2021 reflect the stable dynamics and sustainable development of ALFA INVEST.

Separately, it should be noted that the company pays special attention to the development of the service and online insurance. So, in 2021, the company’s website launched the possibility of registering an E-OSAGO, which greatly simplified the interaction between customers and the company.

In turn, ALFA INVEST does not stop at the achieved recognized financial results and strives to become an insurance company whose success is based on continuous cooperation with existing clients and expanding cooperation with international insurance and reinsurance markets. The company prioritizes maintaining first-class customer service, innovation in the field of online insurance, professionalism and teamwork.

 

Source: kapital.uz

Today, at the headquarters of the Shanghai Cooperation Organization in Beijing, a presentation of the Development Strategy of New Uzbekistan for 2022-2026 will take place. 

The event is organized by the Embassy of Uzbekistan in China with the support of the SCO Secretariat, together with the Center for Development Strategies and the Tashkent State University of Oriental Studies.

It will be attended by representatives of diplomatic missions, the SCO Secretariat, ministries and departments, expert, analytical, socio-political, scientific and academic circles and the Chinese media.

The Development Strategy of New Uzbekistan in 2022-2026, at the initiative of the Embassy, ​​was translated into Chinese and published as a separate brochure.

 

Source: dunyo.uz

On April 18 this year, a government delegation of the Republic of Uzbekistan consisting of heads of key ministries and agencies led by Deputy Prime Minister - Minister of Investments and Foreign Trade S.Umurzakov visited Riyadh to hold negotiations on further expansion of bilateral cooperation in priority areas.

The first event during the visit was the meeting of Deputy Prime Minister - Minister of Investments and Foreign Trade S.Umurzakov with Minister of Energy of the Kingdom of Saudi Arabia Prince Abdulaziz bin Salman Al Saud.

During the meeting, the current state of the Uzbek-Saudi partnership in the energy sector, the implementation of joint projects and prospects for expanding the joint investment portfolio in this sector were discussed.

Saudi Arabia is currently one of the largest foreign investors in the energy sector of Uzbekistan. In many ways, this has been achieved thanks to the successful activities of Saudi "ACWA Power" in the country with a total portfolio of projects worth over $2.5 billion. Currently, a project for the construction of a combined-cycle gas power plant with a capacity of 15 GW in the Syrdarya region and projects for the construction of two wind farms with a total capacity of 1 GW in the Bukhara region are under implementation. In February this year, the construction of another wind power plant with a capacity of 100 MW was launched in the Republic of Karakalpakstan.

During the dialogue, significant prospects for further deepening cooperation in the field of renewable energy to bring the share of alternative energy sources in the total energy balance of the country to 25 percent by 2026 were noted. The parties agreed to work out new directions for the implementation of joint investment projects, taking into account the successful experience gained by Saudi investors in this area. In particular, attention was paid to projects to increase the production of natural gas and its further processing in order to produce raw materials for the chemical industry. In the near future, a visit of the heads of leading Saudi companies to Uzbekistan will be organized to develop practical aspects of cooperation.

Following the meeting, further steps were outlined to deepen mutually beneficial cooperation and work out new areas of partnership.

 

Source: mift.uz

In Riyadh, during a personal meeting, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov discussed with Minister of Investment of the Kingdom of Saudi Arabia Khalid al-Falih current state and prospects for expanding investment, trade and economic cooperation between the two states.

Currently, there are about 40 enterprises with Saudi capital operating in Uzbekistan. Projects with such leading Saudi companies as ACWA Power, Al-Habib Medical Group and others have been successfully implemented and are under implementation. At the same time, taking into account the significant untapped potential for the development of investment cooperation, the parties discussed the prospects for the implementation of new projects in such areas as chemical, metallurgical, mining and textile industries, as well as agricultural industry and agreed to work together to attract Uzbek and Saudi businesses to participate in these projects.

Further steps were discussed to increase the success of Saudi companies in the energy sector of Uzbekistan. The meeting participants analyzed the current state of the projects under implementation and exchanged proposals for their accelerated completion as well as commissioning of the generating capacities under construction.

Special attention was paid to projects aimed at ensuring food security. The parties agreed to form a separate investment portfolio in the field of agriculture and processing of agricultural products, providing for the introduction of innovative and water-saving technologies. Cooperation in the textile industry was also discussed.

Also during the conversation, the parties reviewed the implementation of the agreements reached during the 5th meeting of the Uzbek-Saudi Intergovernmental Commission on Trade, Economy, Science and Technology, Culture, Sports and Youth held in March this year in Tashkent and the 3rd meeting of the Uzbek-Saudi Business Council, and worked out a number of questions for more active promotion of agreed projects and initiatives.

In the context of further expansion of the Uzbek-Saudi investment partnership, the possibilities of the Economic Empowerment Fund, established in Uzbekistan in 2021 jointly with the Islamic Development Bank, as well as the potential of Saudi Fund for Development, which has already allocated about $200 million for the implementation of social and infrastructure projects in Uzbekistan, were noted. The parties agreed to work out opportunities for the implementation of new projects involving the resources of the abovementioned financial institutions.

Following the meeting, further joint actions aimed at finding new points of intersection of mutual interests and expanding mutually beneficial investment cooperation between the two countries were determined.

 

Source: mift.uz

Startup Campus will help set up a program to support innovative companies and ideas.

Uzbekistan and Hungary are working on organizing a joint start-up accelerator, the press service of the Ministry of Innovation reported.

Employees of the National Innovation Office arrived in Budapest to study the work of acceleration programs and the startup ecosystem in Europe. As part of the visit, they visited the Hungarian office of Startup Campus, the European partner of the project.

The parties signed a cooperation agreement on March 17. Within its framework, Startup Campus will help organize an accelerator in Uzbekistan according to international standards, as well as bring the companies participating in it to foreign markets.

The accelerator will be open to projects in the areas of healthcare, agriculture, urbanization and energy. The program is divided into two areas:
  • the university accelerator will attract and support university students who develop innovative ideas in one of the listed areas;
  • the corporate accelerator will help small and medium-sized enterprises presenting innovative promising technologies for Uzbek and Hungarian businesses.

The program aims to accelerate companies preparing solutions for projects in the field of import substitution and localization of innovative industries.

In November 2021, Uzbekistan and Hungary signed an agreement to expand cooperation in the field of science and innovation. It provides for an increase in the number of joint research in a number of industries, as well as a quota for Uzbek scientists in Hungarian universities.

 

Source: www.spot.uz

Wind and solar hit a tenth of global electricity, but the global electricity transition needs to sustain very high growth rates to replace coal and reduce emissions.

Solar generation rose 23% last year, and wind by 14%. Combined, this takes them to more than 10% of global electricity generation. All clean electricity sources generated 38% of the world’s electricity in 2021, more than coal (36%).

To be on a pathway that keeps global heating to 1.5 degrees, wind and solar need to sustain high compound growth rates of 20% every year to 2030. That’s the same rate of growth as their average over the last decade. 

This is now eminently possible: wind and solar are the lowest cost source of electricity on a levelised basis, with ever-increasing global experience of integrating them into grids at high levels. With 50 individual countries now generating more than 10% of their electricity from these quick-to-deploy resources, and three countries already generating over 40%, it is already clear that these technologies are delivering.

Governments like the US, Germany, UK and Canada are so confident in clean electricity that they are planning to shift their grid to 100% clean electricity within the next decade and a half. But with coal still rising and electricity demand continuing to increase, all governments with carbon intensive grids now need to act with that same boldness and ambition.

Wind and solar generated over a tenth (10.3%) of global electricity for the first time in 2021, rising from 9.3% in 2020, and twice the share compared to 2015 when the Paris Climate Agreement was signed (4.6%). Combined, clean electricity sources generated 38% of the world’s electricity in 2021, more than coal (36%).

Fifty countries have now crossed the 10% wind and solar landmark, with seven new countries in 2021 alone: China, Japan, Mongolia, Viet Nam, Argentina, Hungary and El Salvador. Three countries—the Netherlands, Australia and Viet Nam—shifted over 8% of their total electricity demand from fossil fuels to wind and solar in just the last two years.

 

Source: ember-climate.org

 

First Deputy Minister of Investments and Foreign Trade A. Voitov held talks with Special Advisor to the Secretary-General on Education Policy, Head of the Department for Education and Skills of the Organization for Economic Cooperation and Development (OECD) Andreas Schleicher, who is visiting our country from April 10 to 13 in order to prepare for international studies in the field of education and participation in them of educational institutions of Uzbekistan.

The purpose of the visit is also to study the work carried out in Uzbekistan on the implementation of the International Student Assessment Program (PISA), as well as the prospects for further expansion of cooperation with the OECD in this direction.

During the meeting, issues of monitoring the quality of education, measures for the practical implementation of the PISA program, providing special assistance to students in the use of knowledge and solving practical problems in the field of economics and production were discussed.

During the conversation, mechanisms for attracting additional investment in this area were also considered in order to ensure wide access of the population to educational services, improve their quality and improve the functioning of the national education system, including through targeted programs of the OECD.

For reference: The International Student Assessment Program (PISA) is aimed at assessing the level of reading, mathematical and science literacy of 15-year-old students using various tests. This project evaluates the creative and critical thinking of young people, their ability to apply the acquired knowledge in practice and motivates them to develop these skills.

 

Манба: mift.uz

The giant plant in Uzbekistan will process 3.6 billion cubic meters of gas per year and produce 1.5 million tons of oil products. These are diesel fuel, jet fuel, naphtha and liquefied gas.

The GTL in the Kashkadarya region of Uzbekistan can start producing oil products in May, and reach full capacity by the summer.

Today, the plant employs about 850 specialists. By the time it reaches full capacity, the number of specialists is planned to increase to 1000 people.
According to Karimov, the main backbone of the staff will be engineering and technical personnel.
The grand opening of the Uzbekistan GTL plant took place on December 25 last year. The President of the Republic Shavkat Mirziyoyev personally participated in the opening ceremony.
The giant plant has 10,000 pieces of equipment from around the world. The enterprise can process 3.6 billion cubic meters of natural gas per year.
It is planned that the plant will produce liquid synthetic fuel worth more than $1 billion. In addition, 307,000 tons of jet fuel, 724,000 tons of diesel fuel, 437,000 tons of naphtha and 53,000 tons of liquefied gas will be produced here.
Also, the plant will annually produce 380 thousand tons of polyethene and polypropylene.
The project was financed by such Russian structures as JSC Gazprombank, JSC Roseximbank, the Russian Export Credit and Investment Insurance Agency (EXIAR).
The total cost of Uzbekistan GTL amounted to $3.42 billion.
 
 

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held talks with the Minister of Foreign Affairs of the Kyrgyz Republic R.Kazakbaev in Bishkek.

During the constructive and trusting dialogue, the current state of bilateral cooperation and ways to strengthen Uzbek-Kyrgyz relations were discussed.

Practical measures to expand cooperation in the political, economic, transport and logistics, cultural and humanitarian areas, as well as in the field of interregional cooperation were discussed.

The progress of work on updating a number of bilateral interstate documents, including the Intergovernmental Agreement on checkpoints on the Uzbek-Kyrgyz border and the Agreement on Mutual Travel of Citizens, was reviewed.

The issues of organizing a number of international and regional events with the participation of the delegations of Uzbekistan and Kyrgyzstan scheduled for this year, in particular, the consultative meeting of the Heads of Central Asian States, as well as the summit of the Shanghai Cooperation Organization, were discussed.

In addition, the progress made in the framework of cooperation in the field of education and culture was reviewed and prospects for the development of cooperation to increase mutual tourist flows were discussed.

As a result of the negotiations, an agreement was reached to intensify the dialogue aimed at further deepening the multifaceted Uzbek-Kyrgyz cooperation.

 

Source: mift.uz

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On April 13, Sardor Kushnazarov, Founder and CEO of Investa LLC visited the Foreign Investment Promotion Agency under the Ministry of Investment and Foreign Trade. During the visit, the guest speaker and the staff of the Agency had a lively discussion on new trends in world stock exchanges, economic developments and the investment climate in Uzbekistan and measures for its development. During the event, Sardor Kushnazarov gave detailed answers to the questions of the staff based on his rich experience.

 

The Ministry of Energy hosted a meeting with Italy’s Imagro Group CEO, Massimo Pollio.

The parties discussed the possibility of implementing joint projects in Uzbekistan.

According to the Ministry of Energy, Imagro Group CEO noted that all spheres of the country’s economy are developing thanks to the vector of development of Uzbekistan. Economic relations between Uzbekistan and Italy are being strengthened. Italian companies and financial institutions are showing interest in cooperation and project implementation.

The parties considered the possibility of participation of the Italian company in generation projects based on renewable energy sources. Information was provided about upcoming projects.

The sides expressed interest in further elaboration of the discussed issues.

 

Source: dunyo.info

As part of the implementation of the Decree of the President of the Republic of Uzbekistan dated August 21, 2020, No. PP-4812, effective work is being carried out in the system of Uzbekneftegaz JSC to ensure the uninterrupted operation of industrial facilities, increase the volume and range of domestic production, expand the participation of domestic producers in intersectoral cooperative ties and the system purchases, as well as a gradual reduction in the need for imports.

In particular, in January-March of this year, within the framework of 7 projects of the Uzbekneftegaz localization program, products worth 295.5 billion soums were produced, and the plan was fulfilled by 147%.

Also, at the initiative of the Chairman of the Board of JSC "Uzbekneftegaz" Mekhriddin Abdullayev, a completely new form of cooperation has been established with local enterprises for the production of previously imported products for the needs of the enterprises of the system. As a result of this work, this year, within the framework of the import reduction program of Uzbekneftegaz JSC, a reduction in imports is the equivalent of $47.5 million (122.3% of the plan) was achieved.

In particular, 25.5 million dollars (147% of the plan) falls on the previously purchased imported part of the products produced under the localization program, and 21.6 million dollars (101.7% a) - for the expansion of cooperation ties.

In addition, the system of Uzbekneftegaz JSC pays special attention to the issue of establishing links on the principle of "Industry-territory" between the direct producer and the buyer in the shortest possible time, without any intermediaries between them.

At the same time, cooperation processes are organized on the basis of the Single Portal of Electronic Cooperation of the Republic, in the sections on procurement, localization and cooperation relations, on the official website of the society, as well as other procurement portals.

As a result, in January-March 2022, through the electronic cooperation portal, Uzbekneftegaz JSC signed 472 contracts totalling 206.8 billion soums, covering about 100 domestic producers in all regions of the republic, the Republic of Karakalpakstan and the city of Tashkent.

At present, the pace of work on localization, and the development of cooperative ties is being activated in the system of Uzbekneftegaz JSC, and targeted work is being carried out.

 

Source: ung.uz

A delegation of the Ministry of Energy of Uzbekistan paid a working visit to Bangladesh in order to discuss the possibility of developing mutually beneficial relations in the oil and gas sector.

According to the Ministry of Energy, negotiations were held at the PetroBangla National Oil and Gas Company of Bangladesh. During the meeting, the chairman of the company, Nazmul Ahsan, voiced his interest in new technologies and the exchange of experience in drilling wells, in particular, those used in difficult geological conditions with a high content of hydrogen sulfide at the Uzbek M-25 field.

In addition, in Dhaka, the delegation held talks with Bangladesh Energy Minister Nazrulo Hamid and industry experts. The Uzbek delegation also included members of the management of large companies in the oil and gas industry and the construction industry "ERIELL Group" and "Enter Engineering". Over the past 10 years, ERIELL Group has been providing oil and gas services in a number of fields in Bangladesh. Minister of Energy Nazrul Hamidom praised the company's work in drilling and testing 17 exploratory wells, which gave mostly positive results with indications of industrial natural gas inflow of 600-700 thousand cubic meters per day. It was noted that the specialists of Uzbekistan have extensive experience in the petrochemical and hydrocarbon sectors.

Cooperation between the two countries also has great potential in the construction of gas pipelines and in the renewable energy sector.

Taking into account the existing positive experience of joint work, the possibilities of drilling exploratory wells up to 5500-6000 meters deep in various fields were discussed, which had not previously been performed due to the lack of the necessary drilling rigs and blowout prevention equipment.

Energy Minister Nasrul Hamid spoke positively about cooperation in the energy sector, noting that Bangladesh can use the experience of Uzbekistan in the hydrocarbon sector, including in upgrading the skills of Bangladeshi engineers. He also accepted an invitation to visit Uzbekistan for a detailed study of the plans for further cooperation.

 

Source: dunyo.info

A number of toll roads, wind and solar power plants in Uzbekistan are planned to be built on the basis of a public-private partnership. With the involvement of private companies, they will also modernize international airports and the infrastructure of Tashkent and other cities.

A number of tenders are planned for 2022-2023 to attract private companies to implement large projects in partnership with the state. The list of these projects was approved by the decree of President Shavkat Mirziyoyev No. UP-101 of April 8.

The Decree provides for holding tenders for construction in the field of transport:

  • toll road "Tashkent - Andijan" with the assistance of the World Bank;
  • toll road "Tashkent - Samarkand" with the assistance of the European Bank for Reconstruction and Development (EBRD);
  • construction and management of a new toll tunnel at the Takhtakaracha pass;
  • modernization and transfer to management on the basis of PPP of the international airport of Tashkent and other airports with low efficiency, as well as the international airports of Bukhara and Urgench.

Tenders in the energy sector:

  • the second stage of the tender for the construction and operation of photovoltaic plants with a total capacity of 500 MW in the Bukhara, Khorezm and Namangan regions with the assistance of the International Finance Corporation;
  • the second stage of the tender for the construction and operation of a 300 MW solar power plant in the Guzar district of Kashkadarya with the assistance of the Asian Development Bank (ADB);
  • construction and operation of a wind power plant with a capacity of 200 MW in Karauzyak and Beruni districts of Karakalpakstan with the assistance of the EBRD;
  • construction and operation of a wind farm with a capacity of 700 MW in Karakalpakstan with the assistance of the EBRD;
  • construction and operation of a PV power plant with a capacity of 100 MW in the Fergana region with the assistance of ADB;
  • construction of heat and cogeneration stations in Tashkent;
  • organization and management of hydroelectric power plants based on PPP.

It is planned to modernize and manage, with the participation of business, wastewater treatment facilities in Tashkent, modernize the heat supply system of the Bukhara region, as well as reconstruct and manage the city sewerage treatment facilities of Namangan.

The Khokimiyat of the city of Tashkent and the State Committee for Ecology and Environmental Protection will involve businesses in the sorting and processing of household waste in Tashkent and the Tashkent region.

In the healthcare sector, private companies plan to involve in partnership with the state in the following projects:

  • radiotherapy centres in Fergana, Khorezm, Tashkent and Samarkand regions with the assistance of the IFC;
  • multidisciplinary hospital in the Fergana region;
  • medical centres in Bukhara and Andijan regions;
  • acceleration of the organization of hemodialysis services in Tashkent, Khorezm and Karakalpakstan, etc.

Projects in education for private companies and the state:

  • construction, reconstruction and equipping of educational institutions with the assistance of the IFC, EBRD and ADB;
  • 16 secondary schools in Tashkent and the Tashkent region with the assistance of ADB;
  • construction of university dormitories, etc.

For many of the listed areas, project documentation has yet to be developed, and the expected volumes of project financing by the parties are not indicated.

 

Source: gazeta.uz

Uzbekneftegaz, Thermal Power Plants and Uzbekistan Airways are scheduled to be privatized. In addition, UzAuto Motors and transfer airports in Tashkent and in the regions will sell shares and be passed under the control of the private sector. The Road Committee will be reformed with the withdrawal of contracting and manufacturing enterprises.

On April 8, President of Uzbekistan Shavkat Mirziyoyev signed a decree "On the next reforms to create conditions for stable economic growth by improving the business environment and developing the private sector."

By the document, with the involvement of an experienced investment bank by May 1, it is planned to begin work on the privatization of Uzbekneftegaz by the end of the year, including through a public offering of shares (IPO) in the amount of at least 49%. Similar work is planned for the state share of 51% or more in Thermal Power Plants.

By September 1, on the basis of the conclusions of an international consulting company, it was instructed to submit for approval to the Cabinet of Ministers a strategy for reforming the Uzbekhydroenergo company. It is envisaged that in the process of building new small and medium-sized hydroelectric power plants, projects with the participation of the private sector, including those based on public-private partnerships, will now be considered a priority.

By September 1, it is planned to begin work on putting up for auction a state share of 51% or more in Uzbekistan Airways, including through an IPO.

By August 1, with the involvement of an international investment bank and consultants, it was instructed to conduct an IPO on the local stock market up to a 10% stake in UzAuto Motors and submit to the government a strategy for selling the rest of this company's share to strategic investors, as well as UzAuto Motors Powertrain and Samarkand Automobile Plant (SamAuto).

Within two months, it was instructed to prepare a draft resolution on the transfer of regional international airports subordinate to Uzbekistan Airports and Tashkent International Airport to the management of the private sector on the basis of PPP conditions to modernize and increase their operational efficiency. At the same time, measures should be provided for "the effective operation of airports in the Ferghana Valley by optimizing them."

A special working group will be engaged in reforming the Committee on Highways. It must, within two months, submit a draft resolution on reforming the committee by removing contracting and manufacturing enterprises from its composition for a specific delineation of regulatory and economic functions, demonopolization, attracting private sector enterprises and increasing the efficiency of using budget funds.

By September 1, it was also instructed to develop and submit for approval to the supervisory boards the strategies for reforming the companies Uzbektelecom and Uzbekiston pochtasi.

Tax and customs benefits, which were previously enjoyed by the associations "Uzbekipaksanoat", "Uzcharmsanoat" and others, are extended to all entities in these industries. Benefits were given in 2017-2019, their term expires on January 1, 2023. 

From May 1, a number of tax and customs benefits previously enjoyed by the associations Uzbekbaliksanoat, Uzbekipaksanoat, Uzcharmsanoat and others now apply to all manufacturers in these industries. This is provided for by the decree of President Shavkat Mirziyoyev No. UP-101 of April 8.

List of associations and benefits:

  • provided in 2017 to organizations that are part of Uzbekipaksanoat, exemption until January 1, 2023, from customs duties on imported spare parts of silk-winding and silk-weaving equipment, mulberry seeds and seedlings, as well as super-elite, elite and industrial silkworm grains, to extend to all enterprises in industries;
  • provided in 2018 to organizations belonging to Uzbekipaksanoat, exemption until January 1, 2023, from customs duties (excluding VAT) on the import of equipment, raw materials, chemicals, paints, etc. and land tax on mulberry plantations, apply to all organizations in the industry ;
  • provided in 2018 to organizations belonging to Uzbekipaksanoat, exemption from January 1, 2023, from paying property tax and land tax with the targeted direction of the released funds for the modernization of production, including the purchase of technological equipment, to extend to all organizations in the industry;
  • provided in 2017 to members of the Uzbekbaliksanoat association, territorial LLC Baliksanoat and legal entities that are part of Uzbekbaliksanoat, exemption until January 1, 2023, from the turnover tax on the production of larvae, juveniles and marketable fish, harvesting and processing of fish products apply to all manufacturers in the industry;
  • granted in 2017 to the members of "Uzcharmsanoat" when selling products, exemption until January 1, 2023 exemption from income taxes, property and turnover tax - for all organizations involved in the collection and procurement of leather, fur, fur, astrakhan raw materials and wool;
  • granted in 2019 to members of the Association of Organizations for the Production and Processing of Licorice and Other Medicinal Plants until January 1, 2024, exemption from paying land tax from legal entities, property tax for legal entities, income tax, turnover tax and customs payments, - for all organizations under cultivation and processing of liquorice and other medicinal plants.

 

Source: www.gazeta.uz

At the initiative of the Chairman of the Board of JSC "Uzbekneftegaz" Mekhriddin Abdullayev, measures were taken to implement a number of investment projects in order to increase the production of oil and gas chemical products, develop the production of new types of gas chemical products, as well as increase the export potential of the republic.

The projects are being implemented within the framework of the Decree of the President of the Republic of Uzbekistan dated December 30, 2021, No. PP-72 “On approval of the investment program of the Republic of Uzbekistan for 2022-2026 and the introduction of new approaches and mechanisms for managing investment projects”.

It should be noted that this year, within the framework of 10 investment projects totalling $5.9 billion, implemented by Uzbekneftegaz JSC, it is planned to use $1,090.5 million from all sources. Of these, 840.6 million dollars are foreign investments and loans.

According to the results of the first quarter of 2022, $236.3 million of investments were disbursed within the framework of projects. If we compare this indicator with the current period of 2021, then the growth was 142.5 percent.

This year, 50.9% of investments will be directed to the production and preparation of hydrocarbons, 32.1% - to the processing of hydrocarbons, 12.8% - to exploration and drilling of wells, 4.2% - to projects for the implementation of work on new construction, modernization and reconstruction.

In December 2021, in the Guzar district of the Kashkadarya region, the project "Expanding the production capacities of the Shurtan gas chemical complex" was launched for a total amount of about 1.8 billion dollars.

The project provides for the processing of synthetic naphtha and the production of an additional 380,000 tons of high-value new grade polyethene and polypropylene. This will increase the existing production capacity of the complex by 3 times. The project will be launched in 2024.

A program for 2017-2021 is being implemented to increase hydrocarbon production for a total of $3.0 billion. As part of the first stage of the program, drilling operations were completed at 296 wells and workover was carried out at 328 wells.

As part of the second stage, 152 wells were drilled out of 185. A block-modular air compressor unit was also put into operation at the Garbiy field, compressor stations at the Somontepa, Alan and Zevarda fields, a complex gas treatment unit at the Arslan field ”, 6th stage of the installation for gas purification from sulfur compounds at the Uchkir field and a compression compressor station.

As a result of the implementation of a set of measures, the volume of produced natural gas increased by 30.2 billion cubic meters, oil - by 182.1 thousand tons, gas condensate - by 902.2 thousand tons.

Within the framework of this program, this year it is planned to complete the construction of 2 compressor stations at the Denizkul and South Tandyrcha fields with a total cost of 161.9 million US dollars, as a result of the commissioning of facilities, an additional 470 million cubic meters of natural gas will be produced annually and 27 new jobs.

Foreign citizens will now be able to invest in real estate under construction in Uzbekistan (their list will be approved by the government). In addition, the amount of the cost of real estate in Tashkent and the Tashkent region has been reduced, by purchasing which you can get a residence permit in Uzbekistan. From May 1, foreigners will pay personal income tax equal to Uzbek citizens.

Since May 1, citizens of foreign countries have been allowed to invest in Uzbekistan in the form of acquiring new real estate objects under construction (with the exception of land plots) without requiring a residence permit in the country. The list of objects will be approved by the government. This is stated in the presidential decree of April 8 "On the next reforms to create conditions for stable economic growth by improving the business environment and developing the private sector."

The cost of real estate objects for investment should be (in accordance with contracts concluded during the construction period) in Tashkent, Samarkand and the Tashkent region not less than the equivalent of 150 thousand US dollars, and objects accepted for operation - 180 thousand. For other regions, the amount is 70 thousand and 80 thousand dollars, respectively.

The acquisition of real estate under this scheme is not a basis for obtaining permanent registration and residence permit in Uzbekistan.

The decree also reduced the amount of the cost of real estate in Tashkent and the Tashkent region, by purchasing which you can obtain a residence permit in Uzbekistan, from 400 thousand to 300 thousand dollars (for other regions, the amount ranges from 100 thousand to 200 thousand dollars). Citizens of 111 countries have the right to obtain a residence permit in this way.

From May 1, foreigners will pay personal income tax in Uzbekistan at a rate of 12% (previously it was 20%). Exceptions are dividends, interest and freight income.
 
 

Uzbekistan’s growth is expected to slow in 2022 due to lower investment and remittances from the Russian Federation before rising slightly in 2023, while green financing can support the country’s transition to a greener economy, a new Asian Development Bank (ADB) report says.

In its flagship annual economic publication, Asian Development Outlook (ADO) 2022, ADB projects Uzbekistan’s gross domestic product (GDP) growth to be 4% in 2022, slower than last year’s 7.4% growth, as moderating private consumption curbs expansion in industry and services. Growth is expected to rise again to 4.5% in 2023 but risks stem from a tense external environment and the possible emergence of new coronavirus disease (COVID-19) variants.

“Despite the unprecedented impacts of COVID-19, Uzbekistan experienced a strong growth recovery in 2021, mainly due to expansion in industry and services,” said ADB Country Director for Uzbekistan Cindy Malvicini. “Creating an enabling environment for private sector involvement in financing climate change mitigation and adaptation in industry and agriculture can help the government’s priorities for growth.”

Inflation is anticipated to slow to 9% in 2022, from 10.7% last year. The central bank has raised its policy rate from 14% to 17%. To hold down food prices, the government has retained import duty exemptions for essential foods such as edible oils, poultry, wheat flour, and rice until the end of 2022. Inflation is forecast to decelerate further to 8% in 2023.

Expansion in industry is expected to slow to 5% in 2022 after a strong recovery in 2021 in textiles, food, and mining and quarrying, before rising again to 5.5% in 2023. Meanwhile, growth in private consumption is expected to slow to 4.5% in 2022 with cooling post-pandemic demand and the anticipated drop in remittance inflow, which will curtail household income growth. Private consumption is then expected to edge up to 5% in 2023.

Exports of goods and services—notably of copper, gold, agricultural products, and petrochemicals—are projected to grow by 9% in both 2022 and 2023. However, growth in imports of goods and services is forecast to plunge by almost half to 12% in both years as demand cools for transport services and for imported capital and intermediate goods.

To help Uzbekistan transform into a green economy, the report suggests raising climate awareness, strengthening institutional coordination to plan green public investment, and creating an enabling environment to develop green financing. Expanding public–private partnerships and credit guarantees would help mobilize private investment in renewable power generation and other essential infrastructure.

According to the report, transforming into a green economy involves meeting the cost of phasing out or reducing fossil fuel subsidies to state-owned enterprises, mobilizing public and private investment in green technologies, and institutionalizing green finance by adopting in the banking system environmental, social, and corporate governance principles when assessing climate risk.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

Source: www.adb.org

On April 6 this year Government Commission on Issues of Foreign Trade, Investments, Local Industry Development and Technical Regulation consisted of heads of ministries, agencies, industry associations and commercial banks under the leadership of Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov visited Navoi region to examine the current state of social and economic development of the region, elaborate measures on its further stimulation as well as analyze and solve problems in the region.

During the visit to the region, a meeting was held with local business representatives to discuss urgent issues of systemic and private nature.

The event was attended by more than 250 entrepreneurs and exporters. The participants directly addressed the members of the Commission, raising their problems, each of which was subjected to a comprehensive study.

After the analysis of each case, the leadership of the Government Commission gave targeted instructions to the responsible executives to take measures to address the identified problems within a clearly defined time frame.

Also, heads of relevant ministries, agencies, commercial banks and local authorities were instructed to strengthen the work on the study of the economic, investment and industrial potential of the region in terms of cities, districts and mahallas to identify additional opportunities to increase production capacity, develop industries, improve the economic potential of free economic and small industrial zones while paying special attention to the support of the local population.

The event was broadcast online on the official resources of the Ministry of Investments and Foreign Trade, so entrepreneurs and exporters had the opportunity to address the leadership of the Government Commission on Facebook and Instagram social networks. The received appeals were also brought to the members of the Commission and were thoroughly studied, as a result of which specific solutions were developed for each issue.

The Prosecutor General's Office of the Republic of Uzbekistan is responsible for systematic monitoring of the implementation of the Government Commission's instructions.

 

Source: mift.uz

There are many fruit and vegetable processing enterprises in our country. In particular, the demand for frozen foods is growing more and more. In recent years, shock freezing has been actively introduced in the country, which is the most common type of food processing. Today, frozen fruits and vegetables are sold not only in the domestic market but also exported to foreign countries.

There are 9 fruit and vegetable processing enterprises operating in Uzbekistan with a capacity of 80,000 tons per year.

The Ministry of Agriculture plans to set up 20 quick freezing enterprises with a capacity of at least 125,000 tons in 2022-2026 as part of fruit and vegetable processing activities.

Processing enterprises of the country carry out quick freezing of cauliflower. This product is cleaned, sorted and processed before being placed in quick freezers. In 2021, enterprises exported about 13 thousand tons of cauliflower to Kazakhstan, Kyrgyzstan, Belarus, Moldova and Russia.

In 2021, 142.4 thousand tons of cauliflower were grown in the republic on 7.7 thousand hectares of area. In 2022, cauliflower was planted on 8,011 hectares on all types of farms, and 147.1 thousand tons of crops are expected.

According to the analysis, 15-20% of fruits and vegetables are processed worldwide, in particular 20% in the EU, 20% in France, 17% in Sweden, 10% in Belarus and 15% in Russia.

Some of the most popular food processing methods in the world today are blast freezing (57%), canning (38%) and drying (5%), and more recently, the demand for canned fruits and vegetables (the production of canned products with vinegar and sugar over the past 20 years has decreased by 10%) is declining from year to year, while the demand for frozen foods is increasing by more than 10 percent per year.

Prepared by the Multimedia Center of the Ministry of Agriculture of the Republic of Uzbekistan on the basis of information from the Department for the Development of Horticulture, Viticulture, Melon and Potato Growing and the Department for the Development of the Food Industry.

 

Source: www.agro.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held a meeting in Navoi city on issues of complex development of Navoi region.

The meeting was attended by heads of ministries, agencies, sectoral associations and local authorities of districts and cities of the region.

It is worth noting that a week earlier a working group comprising representatives of the aforementioned agencies, whose task was to deeply analyze the current state of economic growth, development of entrepreneurship and service sector, investment and export activity, improvement of infrastructure, agriculture and water management and social sphere, had been sent to the region.

During the meeting, heads of ministries, agencies and sectoral associations reported on the results of the work done and proposals submitted on further measures of socio-economic development of the region in the context of sectors and directions with reference to particular districts and cities.

Instructions were given to pay more attention to identifying untapped opportunities and reserves, the full use of which will stimulate the growth of investment, industrial and export volumes in the region.

The need to increase high-tech productions of full cycle in the region focused on the production of competitive products with high added value, the development of related industries, the introduction of modern technologies and the creation of new jobs, was pointed out.

The commission issued an instruction to improve the mechanism of targeted work with entrepreneurs and exporters, aiming to ensure an immediate response to incoming calls and the rapid resolution of issues raised.

As a result of the meeting, specific tasks were set before the responsible executives in the framework of further work in the region.

 

Source: mift.uz

The Decree of the President of April 6, 2022 “On additional measures to support foreign trade activities” was adopted. 

The decree establishes that from April 1, 2022:

  • until April 1, 2023:

- domestic enterprises (their authorized representatives) when exporting products with high added value to the countries of the European Union are provided with subsidies to compensate for transportation costs in the amount of up to 70 percent;

- when exporting high value-added products exported to neighbouring states, subsidies are provided to compensate for transportation costs in the amount of up to 50 percent;

  • the costs associated with the accreditation of conformity assessment bodies by an accreditation body that is a member of international organizations ILAC / IAF are compensated by the Export Promotion Agency;
  • the amount of prepayment required when exporting goods (except for special types of goods), works and services by business entities on the basis of invoices (invoices) without concluding an agreement is reduced from 100 percent to 50 percent.

 

The document also cancelled the ban on the use of benefits on customs payments during customs clearance of goods that are in the customs warehouse regime for more than six months.

 

The Government Commission for Foreign Trade, Investments, Development of Local Industry and Technical Regulation has been given the authority to extend the maturity of loans allocated from the Export Support Fund to finance pre-export and export-related trade operations for an additional six months in accordance with the requests of domestic enterprises -exporters. Also, based on the decisions of the Government Commission, it is allowed to allocate loans up to 500 thousand US dollars at the expense of the Young Entrepreneurs Support Fund.

 

In order to provide foreign trade companies with working capital, Uztrade and Uzsanoatexport joint-stock companies were allocated 10 million US dollars from the Export Support Fund.

 

The Decree also introduced amendments and additions to some legislative acts.


Source: www.norma.uz

An article titled “Business in Uzbekistan is a great opportunity for Polish logistics companies” was published on the Polish Internet portal “Obserwator logisticzny” (“Logistics Observer”), a Dunyo news agency correspondent reports.

The article was prepared by the Honorary Consul of Uzbekistan in Poland, Piotr Kotson, who took part in the Tashkent International Investment Forum on March 24-26 as part of a mission of Polish entrepreneurs.

According to the author of the article, the organizers set themselves the task of gathering in one place those who represent the most dynamic sectors of the economy of Uzbekistan and investors looking for new directions for developing their business. He believes that Uzbekistan has great potential, especially today when the geopolitical situation in the world puts many subjects at the same time in a difficult position. On the other hand, it opens up completely new possibilities.

“Uzbekistan is an interesting market for investors,” the article says. - It is characterized by access to many types of raw materials and natural deposits, such as gold, uranium, silver, tungsten or copper. It is also a producer of rare metals such as cadmium and bismuth. Energy resources, such as oil, gas or coal, are enough to easily cover the country's own needs, as well as establish export cooperation. The chemical, automotive and engineering industries are also experiencing dynamic growth.”

The purpose of the trip of Polish entrepreneurs was not only to participate in the International Investment Forum but primarily to meet with local businessmen and representatives of the government of Uzbekistan.

“Entrepreneurs and government representatives have been very helpful in organizing our economic mission. Thanks to the cooperation, we could count on comprehensive support in establishing new contacts that fully correspond to investment plans in many sectors of the country's economy. The visit, which was crowned with success for both the Polish and Uzbek sides, will be continued,” writes the honorary consul.

At the same time, he notes that the potential for cooperation between Poland and Uzbekistan is not limited only to interest in raw materials - it covers a much wider range, and logistics turned out to be one of the interesting areas. Thus, it is reported that during the visit, the president of the Polish company Świat Przesyłek met with the general director of Uzbekiston Pochtasi Alisher Fayzullaev. The parties discussed the development of the courier and postal sectors, as a result of which plans were outlined to start cooperation.

The incentive for open cooperation is the growing demand for postal and courier services and the significant development of e-commerce in the world, including in Uzbekistan. The economic mission initiated by the Honorary Consul is a project that will be continued and supported by the Uzbek side. The next trip to Tashkent is scheduled for May 2022.

“Uzbekistan is interested in the socio-economic reforms carried out in recent years,” the author sums up. “In 2021, Polish exports grew by 138.4% compared to 2020, making it one of the most attractive markets for the entire economy.”

On April 5 this year, the Government Commission on Foreign Trade, Investments, Development of Local Industry and Technical Regulation, led by Deputy Prime Minister of the Republic of Uzbekistan S. Umurzakov and composed of heads of ministries, departments, industry associations and commercial banks, left for the Samarkand region in order to study the current state of socio-economic development and the development of proposals for using the existing investment, industrial and export potential of the regions of the region.

During a visit to the region, a meeting was organized with entrepreneurs and exporters of the region at the Palace of Youth in Samarkand.

The purpose of the meeting was to discuss and analyze systemic issues and solve business problems through their prompt study with the involvement of responsible structures.

The event was attended by more than 200 entrepreneurs who had the opportunity to voice the issues they face during the implementation of investment projects, production and exports.

During the discussion, it became clear that most often entrepreneurs in the region face problems related to the allocation of credit funds for expanding production, implementing investment projects or replenishing working capital, allocating land, obtaining permits, certificates and licenses, as well as connecting to engineering and communication networks.

Each issue raised was comprehensively considered by the members of the Commission with the participation of the heads of relevant ministries, departments, local authorities. Mechanisms for the practical solution of each problem were developed and targeted instructions were given to the relevant leaders for their comprehensive solution, indicating clear deadlines for implementation.

Also, the heads of ministries, departments, commercial banks and local authorities were instructed to intensify interaction with entrepreneurs in order to promptly respond to incoming requests.

As a result of the meeting, responsible managers received targeted instructions for solving the problems of entrepreneurs and exporters. Control over the execution of the Commission's instructions will be carried out by the Prosecutor General's Office of the Republic of Uzbekistan.

 

Source: mift.uz

On April 4, Ambassador of Uzbekistan Abat Fayzullaev held talks with the head of the department of the Federal Economic Chamber of Austria (FEPA) David Pölzleitner and the country's trade representative for Central Asia Clemens Mahal.

The main subject of negotiations was the issue of joint development and organization on June 1-3 in Tashkent of the largest economic conference for Austrian companies - "Austria Connect Central Asia" under the motto "Uzbekistan - a rising star: new opportunities along the Great Silk Road."

The purpose of this event is the development of investment and trade and economic cooperation between Uzbekistan and Austria, the conclusion of new investment and export agreements, as well as the attraction of Austrian economic entities that are in search of promising trading partners.

Austria Connect is an initiative of the Austrian government aimed at promoting Austrian business abroad. As part of the initiative, the Austrian Federal Economic Chamber holds conferences of the same name in the most attractive regions annually or every two years.

"Austria Connect Central Asia", which will be held in the capital of Uzbekistan, consists of a two-day conference, during which Austrian business structures will be provided with comprehensive information about the economic potential, investment opportunities, legislation, fiscal policy and other most important aspects of doing business in our republic.

The event consists of an official opening ceremony and four sections dedicated to the activities of international financial institutions in the country, logistics infrastructure, investment and fiscal policy, as well as opportunities for doing successful business in Uzbekistan.

As part of the Austrian business mission to Uzbekistan, it is also planned to organize meetings in the G2B and B2B format, visit the production facilities of domestic manufacturers of export products and present investment projects. In addition, the "Silk Road Biz Award" ceremony will be held to reward the most active Austrian companies in the CIS region.

During the meeting, Clemens Mahal expressed gratitude for the support provided by the government of Uzbekistan in the development of Austrian-Uzbek trade and economic relations and emphasized the high level of organization of the visit of the Austrian business mission to Uzbekistan in November 2021. 

Also, the Trade Representative of Austria for Central Asia noted that the image of Uzbekistan in the international arena as a reliable partner with a diversified economy, promoting a neutral and balanced regional policy, is attracting more and more attention not only from Austrian business but also from companies from neighbouring European countries.

The head of the FEPA department, David Pölzleitner, emphasized that Austria Connect will be held for the first time in Uzbekistan, and noted the importance of this event for both new companies and business structures operating in the market of the countries of the Eurasian continent.

The event will be an exclusive opportunity for Austrian and domestic companies in the framework of the conclusion of export and investment agreements, as well as finding new partners.

In this regard, the Austrian side invited all companies of Uzbekistan to take an active part on June 1-3 in Austria Connect Central Asia.

 

Source: dunyo.info

The infographic of the Center for Economic Research and Reforms (CERR) presents a set of measures taken, announced at a meeting chaired by the President of the Republic of Uzbekistan Shavkat Mirziyoyev on March 31 this year, at which external economic factors were analyzed, the necessary further steps were identified.

On March 31, the President of Uzbekistan held a videoconference on ensuring macroeconomic stability and additional business support.

In the decisions taken at the meeting, much attention was paid to measures to support the economy and business.

About the set of measures taken in the CERR infographic.

Banks will provide entrepreneurs with an additional 10 trillion soums of "revolving" loans for the purchase of raw materials and working capital, which will be directed primarily to exporters, and manufacturers of food and consumer goods.

The volumes and preferential rates on loans for horticulture (2 trillion soums in 2022), family businesses (10 trillion soums), mortgages (13 trillion soums) and education (1 trillion soums) provided under state programs will be preserved.

Until the end of the year, fines and other sanctions will not be applied under new mechanisms, such as mandatory accounting and coding of goods in a warehouse during tax administration, electronic registration of property and lease agreements. The term for applying customs preferences for raw materials, equipment, and spare parts imported for own needs will be extended from the current 6 months to 1 year.

Until the end of the year, companies operating in Russia, Ukraine and Belarus will not be fined for receivables. Currently, 179 exporters are working with these countries, which have a debt of 4 trillion soums. It was decided that their debt on bank loans would be extended, and fines and penalties would not be collected.

Wholesale trade zones will be created in Navoi, Samarkand, Tashkent, Bukhara and Surkhandarya regions, which will supply products to the markets of neighbouring countries.

To maintain macroeconomic stability, it will be necessary to reduce regional and network spending by 10 trillion soums, in connection with which instructions were given to reduce costs in regions and industries, suspend spending on repairs, purchase of cars, furniture and office supplies.

An important source of replenishment of the necessary funds should be proceeds from privatization, from which at least 3 trillion soums should be received in the first half of the year.

185 trillion soums will be allocated this year to ensure economic growth (in 2021, 166 trillion soums were allocated).

To date, 67 types of activities are classified as forms of self-employment. It was noted that the number of such professions will be increased by 20 to 87, which will provide jobs for 150,000 people.

Additionally, 100 thousand jobs will be created for citizens returning from labour migration.

Currently, footwear, leather, and products made from it, produced by domestic enterprises, are exported to more than 40 countries around the world. The goal of this stage is to gain a foothold in the EU market. The main requirement for entering this market is the availability of international quality certificates, which reflect the compliance of industry enterprises with all established production standards. 

During the meeting of the leadership of the Uzcharmsanoat Association with representatives of the International Organization SFL, an exchange of views took place on the measures that need to be taken to speed up the procedure for obtaining international certificates. 

It should be noted that the organization for the sustainable development of leather SFL is engaged in helping tanneries to improve various scientific and quality indicators, implements projects in the leather industry of developed countries, and also issues certain quality certificates. 

At the meeting, the parties discussed the work to obtain certificates necessary for our domestic enterprises to enter the European market and export products. The international organization expressed its readiness to cooperate with Uzbekistan.

 

 

Source: www.uzcharm.uz

 

Trading volume up 160%

Uzbekistan's stock indices rose over the week. UCI added 4.23% to close on Friday at 1065.63 points, while EqRe Blue rose to 2095.35 points (+1.94%). What contributed to such results.

The EqRe Blue basket includes nine liquid securities. For one of them, the auction is not yet held (Uzmetkombinat). The four components of the index showed gains over the week. The shares of Hamkorbank grew by 8.51%. This is followed by Uzvtortsvetmet (+6.01%), Kizilkumcement (+4.71%) and Quartz (+0.03%).

A negative correction was observed at Kuvasaycement (-4.18%), Ipoteka-Bank (-4.08%), Uzbek Republican Commodity and Raw Materials Exchange (-2.43%) and Uzpromstroybank (-0 .08%).

All in all, 1,357 transactions with securities worth 8.44 billion soums took place on the stock exchange during the week. Volume is up 160%. This growth was due to several large transactions. With the securities of the insurance company Kafolat, transactions were made for 3.91 billion soums, and with shares of Kattaqo'rg'on yog'-moy - for 2.64 billion soums.

 

Source: uz.kursiv.media

The new project of the Italian company TECON, worth about 300 thousand euros, will include production facilities and a service centre for servicing enterprises. During the meeting at the Uzcharmsanoat Association, organizational and practical issues related to its implementation were discussed in detail. 

For reference, Tecon is a company that has been specializing in the supply of technologies and components for the footwear industry for 40 years. For the time of its existence, Tecon has managed to become a national brand in Italy and occupies its own special place in the world.

Camilla Tavitti, manager of the company, shared at the meeting that the head of Tecon, Giorgio Meniconi, having visited Uzbekistan 8 years ago, got acquainted with the possibilities and production capacities of the country, was inspired by the huge potential. Today, this potential is being revealed, Camilla Taviti noted - the country has comfortable conditions for investors, an open and liberal monetary policy, and all-around support for business and state guarantees. It was these factors that prompted the implementation of the new project. 

The meeting also included presentations on the production potential of the leather and footwear industry in Uzbekistan and the geography of exports. The Italian company shared its impressions of visiting manufacturing enterprises in the regions of the country, and highly appreciated the technological processes and the potential of the regions. 

In the coming days, a memorandum of cooperation will be signed and preliminary work will begin on a project to create a new production facility.

 

Source:www.uzcharm.uz

An article on the results of the Tashkent International Investment Forum has been published on the electronic portal of the leading Latvian news agency LETA (Leta.lv).

It notes that this event has become a large-scale business event, bringing together more than 2 thousand participants - large investors and high-ranking guests from 56 countries of the world.

The atmosphere of the forum, as well as its rich business program, favoured a confidential dialogue, a constructive exchange of views and the establishment of new contacts and partnerships.

Through the forum, the country's leadership outlined for the international business community a vector for consistent work to create the most comfortable and attractive conditions for investors and comprehensively deepen mutually beneficial partnerships with foreign partners and international organizations.

LETA reports that within the framework of the panel sessions and events of the Forum, the investment and economic opportunities of various industries and regions of the country were revealed, the results achieved in the socio-economic reform of Uzbekistan, as well as priority areas for its further development, prospects for the development of regional and global trade relations, mechanisms for attracting investments, liberalizing trade and increasing the competitiveness of the national economy, further steps to industrialize the country and orient the industry towards the production of products with high added value, measures to transform the domestic energy sector and switch to alternative energy sources, issues of strengthening the transport interconnectedness of the countries of the region and increasing their transit potential.

Representatives of government, business and expert circles discussed mechanisms for restoring and stimulating the accelerated development of economic activity in the post-COVID period, reducing poverty, regulating monetary policy, supporting business, and developing the banking sector and the financial market.

On the sidelines of the Forum, the 5th meeting of the Intergovernmental Commission in the field of trade, economy, science and technology, culture, sports and youth between the Republic of Uzbekistan and the Kingdom of Saudi Arabia, the Uzbek-Chinese investment forum “Industrial cooperation. New Opportunities”, as well as the Country Platform on Uzbekistan, which was attended by the heads of international financial institutions, foreign government financial institutions and development partners. Also, the Forum participants actively exchanged views and discussed the prospects for cooperation during bilateral meetings and negotiations.

The practical significance of the event was noted - as a result of the Forum, a package of firm contracts and investment agreements worth $7.8 billion was signed. Preliminary agreements were also reached on the implementation of projects worth $3.5 billion.

The source summarizes that TMIF, having declared itself as a large-scale communication platform for strengthening and developing interregional and international relations, has simultaneously become a powerful catalyst for intercountry and interregional investment and foreign economic cooperation. The Forum is expected to become a permanent platform for attracting foreign investment and modern technologies to the economy of both Uzbekistan and the entire Central Asian region, as well as identifying areas of mutual interest for establishing direct links between entrepreneurs in the region and foreign business circles.

 

Source: dunyo.info

The Government of the Republic of Uzbekistan (GOU) is implementing a large-scale renewable energy strategy to deploy 12 GW of cost-effective and environment-friendly renewable energy generation by 2030 to the increasing energy demand across the country. Under this initiative, the GOU has signed a memorandum of understanding with the European Bank for Reconstruction and Development (EBRD) to cooperate on the development of large-scale wind power projects up to a total capacity of 2,000 MW (Wind Program). GOU has successfully awarded the first project under the Wind Program with a capacity of 100 MW in October 2021.

Through the current tender process to select an independent power producer, GOU wishes to advance the second project of the program, a 200 MW wind power plant, a BESS and an associated evacuation infrastructure (Project), at a site situated in the Beruniy and Qorao’zak district of the Republic of Karakalpakstan in the Republic of Uzbekistan.

A two-stage tender process with the Request for Qualification (RFQ) process, followed by a Request For Proposal (RFP) process is implemented in order to attract and select a qualified private developer-investor for the Project (the Private Partner).

GOU is pleased to announce the launch of the RFQ for the Project and now invites interested developer-investor to submit their Statement of Qualifications (SOQ) by the latest [30 June 2022], 18:00 Tashkent time.

All the interested developer-investor can participate in the RFQ process by expressing their interest over the below mails. The interested developer-investor is also requested to share the list of email addresses (up to 5 email addresses) for providing them access to the VDR for downloading the RFQ document.

● wind.nukus.tender@minenergy.uz

● tilabov.s@minenergy.uz

● xxasanov@ppp.mf.uz

● mf210@mift.uz

● projectuzbek_wind_fa@synergyconsultingifa.com

 

Source: minenergy.uz

The Specialized International Exhibition of the Leather Industry - APLF Dubai 2022 has opened in Dubai, UAE. composition. The national exposition of Uzbekistan is represented by over 100 products from 10 member companies of the Association.

The international exhibition APLF-2022 is one of the largest events demonstrating the achievements of the global leather industry. It currently covers three topics: "Leather", "Special Materials" and "Step into the World of Fashion". 15 national pavilions are attended by 500 companies and firms with more than 10,000 products.

Domestic enterprises at their exposition presented their foreign partners with finished leather, footwear, leather goods, gelatin. On the first day of the exhibition, negotiations were held with representatives of Portugal, Egypt and Pakistan on the export of leather goods from Uzbekistan. A dialogue was held with Spanish, Chinese, Turkish and Italian companies in the direction of finished leather.

As part of the international exhibition APLF-2022, it is expected to sign export agreements with foreign partners.

 

Source: www.uzdaily.uz

From 2017 to 2021, the production of the leather and footwear industry in Uzbekistan increased from $90 million to more than $450 million, as follows from the review on the Business of Russia portal.

In physical terms, the production of shoes and accessories under the Made in Uzbekistan brand increased from 10.8 million to over 115 million pairs. The volume of processing raw hides and leather production reached 1.6 billion dm². There is a good dynamics in the production of wool and astrakhan products.

The industry has managed to become investment-attractive — since 2017, the volume of investments has increased 11 times from $18.4 million to over $200 million last year.

The production of high value-added finished products has increased due to the increase in the volume of processing of raw materials - now it is 13.5 million skins per year, with the potential to reach 37 million.

Uzbekistan is gradually becoming a raw material hub of Central Asia for the deep processing of hides into leather. New production facilities will produce exclusively finished leather of the third processing stage - the last stage before cutting.

In the next 2 years, it is planned to implement 490 investment projects , mainly focused on expanding the production of finished products.

The state spent approximately $8.3 million to create production clusters and industry-specific MPZs with a full production cycle - from slaughtering livestock and processing leather to the production of finished shoes and leather goods.

Fully automated shoe factories are being launched in the regions, such as, for example, Vodiy-Shoes in the Fergana region with the participation of French capital. The $8.5 million project provides more than 1 million pairs of men's, women's and children's shoes made of natural leather.

38 investment projects launched last year made it possible to launch the production of import-substituting products worth $33.7 million .

Uzbek brands are gradually conquering foreign markets. Now they can be found in more than 30 countries, in the next 3-5 years they intend to open another 15 new export destinations - mainly in Europe and Southeast Asia.

This, among other things, will be facilitated by state support measures, including compensation for part of the costs of manufacturers and exporters for transportation, certification and registration, advertising campaigns, participation in international tenders and competitions, and other expenses.

 

Source: www.spot.uz

The 3rd Ministerial Conference of Neighboring Countries of Afghanistan was held in Huangshan city (PRC) on 30-31 March and attended by government members and foreign ministers from Russia, China, Iran, Pakistan, Tajikistan, Turkmenistan and Uzbekistan.

The conference also included a meeting of foreign ministers from neighbours of Afghanistan with the delegation of the Afghan Interim Government headed by Acting Foreign Minister Amir Khan Muttaqi in presence of foreign ministers of Indonesia and Qatar.

Deputy Prime Minister and Minister of Investments and Foreign Trade Sardor Umurzakov represented the Republic of Uzbekistan at these events.

Issues of multilateral cooperation in stabilizing the social and economic situation in Afghanistan in the post-conflict period were discussed at the conference. Views were exchanged on the most effective approaches to supporting Afghanistan in addressing domestic and external challenges. In this regard, the efforts of the country’s Interim Government were noted.

The parties stressed the importance of consolidating efforts of countries of the region for a peaceful solution to the Afghan crisis, accelerating the formation of an inclusive government based on broad representation of all ethnic and political groups as well as ensuring human rights, including those of women and ethnic minorities. Emphasis was placed on the importance that the Afghan Interim Government must fulfil its commitments not to allow terrorist organizations to operate in the country and prevent any threats from Afghanistan to its neighbours, as well as other requirements of the international community.

Addressing the conference, S.Umurzakov underlined the need to strengthen coordination of regional cooperation aimed at supporting Afghanistan in overcoming the current challenges, revitalizing the national economy, resolving social issues and normalizing life in the country. It was proposed to work out a mechanism and criterium for international recognition of the Interim Government of Afghanistan, which will speed up the integration of the country into the regional area and international communities.

The Uzbek side expressed commitment to continue cooperation with countries of the region, partner nations and Afghanistan in all priority areas, including the implementation of major infrastructure projects that can accelerate economic rehabilitation and improve the living standards of the Afghan people.

Following the conference, the parties adopted a joint declaration and the Tunxi Initiative for supporting the economic reconstruction of Afghanistan.

On the sidelines of events, S.Umurzakov also held a number of bilateral meetings and negotiations with foreign counterparts. In particular, he discussed bilateral cooperation with Wang Yi, State Councilor, member of the Leading CPC Members Group of the State Council, and Minister of Foreign Affairs, Sergey Lavrov, Minister of Foreign Affairs of the Russian Federation, Hossein Amir-Abdollahian, Minister of Foreign Affairs of the Islamic Republic of Iran, and Amir Khan Muttaqi, Acting Minister of Foreign Affairs of Afghanistan. During the meetings, the sides discussed the current state of affairs and identified further steps to deepen bilateral cooperation in priority areas.

 

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a number of bilateral meetings and negotiations with foreign counterparts on the margins of the Third Ministerial Conference of the Neighbouring Countries of Afghanistan held in Huangshan (PRC).

In particular, issues of bilateral cooperation were discussed with Wang Yi, State Councilor, member of the Leading CPC Members Group of the State Council, and Minister of Foreign Affairs, Sergey Lavrov, Minister of Foreign Affairs of the Russian Federation, Hossein Amir-Abdollahian, Minister of Foreign Affairs of the Islamic Republic of Iran, and Amir Khan Muttaqi, Acting Minister of Foreign Affairs of Afghanistan.

During the meetings, the sides discussed the current state of affairs and identified further steps to deepen bilateral interaction in priority areas.

 

Source: mift.uz

On March 31, a videoconference was held under the chairmanship of President Shavkat Mirziyoyev on issues of ensuring macroeconomic stability and additional business support.

International experts predict that the current difficult situation in the global economy will last for a long time. This, of course, cannot but have a negative impact on domestic prices, especially on food, and inflation.

This circumstance is regularly analyzed at meetings with the President, and the necessary response measures are taken. This gave its results - the situation in the domestic market is stable.

In particular, the rise in prices for meat, milk, potatoes, eggs and rice is not allowed. At the Commodity and Raw Materials Exchange, the volumes of exhibiting food products from foreign suppliers have been expanded. The foreign exchange market and the exchange rate have stabilized.

– Our people should not have excessive anxiety and trouble about this. We have enough reserves to prevent sharp fluctuations in the foreign exchange market,” the head of state said. 

It was emphasized that the reduction in food prices in the coming month of Ramadan is a good deed, for this, it is necessary to provide practical assistance to entrepreneurs. To this end, until the end of the year, the effect of benefits on funds allocated for the import of food products has been extended.

A republican headquarters headed by the Prime Minister and regional headquarters under the leadership of khokims have been formed. They are instructed to monitor market prices on a daily basis and take measures for additional supplies of products based on consumer demand. The task was set to establish daily control over the listing of food products and raw materials on the stock exchange, to prevent an artificial rise in prices.

– - Now the world is going through a difficult period, and every day we face new challenges. But you can not sit and wait for what will happen tomorrow. We need to quickly identify and solve problems, find new opportunities,” said Shavkat Mirziyoyev.

Additional support measures for entrepreneurs have been identified to reduce the impact of external risks.

In particular, banks will provide entrepreneurs with an additional 10 trillion soums of "revolving" loans for the purchase of raw materials and replenishment of turnover. Both volumes and preferential rates of loans allocated under government programs for horticulture, family businesses, as well as mortgage and educational loans will be preserved.

- No matter how difficult it is, we will not reduce funds and increase the load, - said the President.

It was also instructed not to apply fines under the new tax administration mechanisms until the end of the year, as well as to extend the period of customs benefits.

The meeting touched upon the results of the Tashkent Investment Forum.

Contracts and agreements worth almost $8 billion were concluded during the forum. Many foreign entrepreneurs have expressed a desire to start or develop their businesses in our country.

It was noted that all conditions will be created for investors for the full implementation of these agreements and initiatives. The heads of economic sectors have been tasked with negotiating with foreign companies on integration into their production chains. The need was noted to create wholesale trade zones in Navoi, Samarkand, Tashkent, Bukhara and Surkhandarya regions, which will supply products to the markets of neighbouring countries.

Strict instructions were given to reduce costs in regions and industries, suspend spending on repairs, car purchases, furniture and office supplies.

In the current unstable situation in the international financial market, it will become more difficult to attract funds from abroad. In such circumstances, the most correct way is to use the available resources wisely and efficiently, it was noted at the meeting.

For example, to date, funds raised by 105 projects worth $9 billion are not being used or are being developed slowly.

In this regard, the Deputy Prime Minister was instructed, together with the heads of industries and khokims, to carefully study each project, speed up implementation, and stop inefficient and unpromising projects. 

Particular attention at the meeting was paid to the issues of ensuring employment of the population.

- This issue should be considered not only as an economic indicator but also from the point of view of the social protection of our people, - said Shavkat Mirziyoyev.

The indicators of job creation by regions and districts are analyzed, and the shortcomings are indicated.

To date, 67 types of activities are classified as forms of self-employment. It was noted that the number of such professions will be increased to 20, which will provide employment for an additional 150,000 people.

The Government was instructed to expand the scale of social support for the population in need of assistance.

Government officials responsible for improving the above-mentioned issues shared their input and available information on the matter.

 

Source: president.uz

Employees of the Consulate General of Uzbekistan held talks with representatives of the business community in Jeddah.
During the meeting, the sides discussed in detail the economic and investment potential of Uzbekistan, the favorable conditions created for foreign tourists, the large-scale reforms being carried out in the country in the field of tourism development.

The participants also got acquainted with the favorable business opportunities created for private investors in Uzbekistan, the activities of free economic zones.

The representatives of Saudi Arabia acknowledged that the comprehensive political, socio-economic, and other reforms being carried out in Uzbekistan are bearing fruit today.

As a result of the talks, an agreement was reached on attracting Uzbek products to the Saudi market, implementing joint investment projects, and establishing new contacts with Uzbek partners.

 

Source: dunyo.info

The Embassy of Uzbekistan in Washington held a business reception with the participation of a delegation of the Regional Chamber of Commerce of the city of San Diego (California, USA), headed by the president of this organization, Jerry Sanders.

The event was attended by authoritative representatives of the official, business, cultural and humanitarian circles of the state of California, as well as from the cities of Mexico bordering this state.

The Ambassador of Uzbekistan Javlon Vakhabov acquainted the participants with the modern development of our country, the progress of ongoing reforms to liberalize the economy, create a favorable investment climate, and strengthen human capital.

The delegation was also presented with the main results of the first Tashkent International Investment Forum, the prospects for running a successful business in Uzbekistan, information on benefits and preferences for foreign investors interested in entering the country's market.

Jerry Sanders stressed that Uzbekistan and San Diego have great potential for deepening cooperation in the field of pharmaceuticals, biotechnology, and various industries.

San Diego has been recognized as the most favorable place in the US to start a new business. It was emphasized that the San Diego Regional Chamber of Commerce, which unites more than 2.5 thousand companies, is interested in establishing partnerships with Uzbek companies in order to implement joint business projects.

Jerry Sanders expressed his readiness to establish direct contacts with interested departments and institutions of Uzbekistan on issues of mutual interest. He assured of his readiness to provide practical assistance in establishing close cooperation between the parties to expand trade and economic ties.

During her speech, the vice president of the largest private telecommunications company in the United States with an annual income of $ 13 billion, Cox Communications, Chanel Hawken, noted that she was impressed by the transformations being carried out in Uzbekistan. She also expressed her support for strengthening her company's close ties with Uzbekistan, especially in the field of digitalization and expanding access to the Internet.

Vice Mayor of Manhatton Beach (California) Richard Montgomery thanked the Embassy for organizing the event and the opportunity to get acquainted with Uzbek culture and traditions, which deeply impressed all guests of the US West Coast. “I plan to visit your country in July this year and get even closer acquainted with its rich historical heritage and potential,” he said.

The event also presented the latest collection of domestic designer Markhamathon Umarova, which clearly showed the beauty and historical value of the Uzbek school of textiles.

Recall that San Diego is one of the leading regions of California and is among the top twenty largest US cities in terms of GDP (240 billion dollars). The main economic drivers of the city are the defense industry, tourism, IT, R&D and others. San Diego is home to the largest US Navy in the world with more than 50 ships, and the development of the tourist infrastructure allows to receive more than 30 million visitors annually. In addition, San Diego is also known for its innovative IT developments. In particular, the city hosts the headquarters and centers for innovative developments of such large IT companies of the world as Qualcomm, Nokia, LG Electronics, Kyocera International, Cricket Communications and others.

California is the most populous US state (about 40 million people) and the 3rd largest (after Alaska and Texas). California ranks first among US states in terms of GDP ($3 trillion). The most important sectors of the economy are information technology, the aerospace industry, oil production and refining, show business, and agriculture.

 

Source:dunyo.info

According to the State Statistics Committee, as of March 1, 2022, the number of enterprises and organizations with foreign capital registered in the country amounted to 13,982, of which 13,531 are operating.

The number of operating enterprises with foreign capital increased by 1,462 compared to the same period last year.

Countries with the highest number of enterprises with foreign capital in Uzbekistan:


🇷🇺 Russia - 2 348 units
🇨🇳 China - 1,958 units
🇹🇷 Turkey - 1,940 units
🇰🇿 Kazakhstan - 1,095 units
🇰🇷 Korea - 891 units

 

Source: t.me

The city of Jizzakh hosted a regional intersectoral industrial fair organized by the Ministry of Investments and Foreign Trade jointly with the Khokimiyat of the Jizzakh region and the Center for Electronic Cooperation Portal. The fair was attended by representatives of the Administration of the President of the Republic of Uzbekistan, the Ministry of Investment and Foreign Trade, as well as domestic entrepreneurs, manufacturers and exporters from the Jizzakh region and other regions of the country.

In total, 775 industry and regional enterprises took part in the fair, of which 142 presented more than 3,000 types of domestic products. The event was an effective platform for establishing contacts between manufacturers of various industries and regions, discussing the possibility of creating cooperation and trade ties, as well as opportunities for implementing joint projects to create new industrial facilities.

The heads of industry associations, in particular, the Associations "Uzeltehsanoat", "Uztukimachiliksanoat" and the Agency for the Development of the Pharmaceutical Industry, as well as a number of commercial banks, who took part in the fair, made presentations on the investment and industrial potential of the respective industries, the specifics of production in various regions, as well as on measures of state support for entrepreneurs and exporters. The relevance of expanding existing and creating new industries was noted in order to master the production of new types of products that are in demand by domestic industry and consumers, which will allow localizing complete value chains within the country,

As part of the fair, a working group consisting of the heads of ministries, departments and local authorities organized trips to local industrial enterprises, such as Newland, ADM Jizzax, Global Optical Communication Uzbekistan, Minguan Silu Industry, Master building products”, “Jada Color Tekstil”, where she got acquainted with the technological process of production and talked with managers and employees of enterprises. During the visit, the existing issues related to production and export activities were studied, measures were developed to address them, and the prospects for expanding existing industries and establishing industrial cooperation with other domestic enterprises were discussed.

As a result of the fair, 467 contracts were concluded through the Electronic Cooperation Portal for a total of 75.9 billion soums. Of these, the total value of contracts concluded by regional producers amounted to 60.2 billion soums, and contracts concluded by industry enterprises - 15.7 billion soums.

 

Source: mift.uz

In Termez, under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a meeting was held with the participation of heads of ministries, departments, industry associations, commercial banks and local authorities of the Surkhandarya region, as well as the city of Termez and all districts.

During the meeting, measures were considered to further stimulate investment, industrial and export activities, develop entrepreneurship and ensure employment in the region. The heads of local authorities reported on the current investment and export figures, provided information on ongoing projects, and also talked about plans for further work.

In particular, according to the Regional Investment Program, in 2022 it is planned to introduce 762 projects in the Surkhandarya region for a total of $672 million. Within the framework of these projects, 14,795 jobs will be created. Thanks to the organization of new production sites and the adoption of targeted measures to support exporters, by the end of the year, export indicators in the region should exceed $400 million.

The progress of work on building up the industrial potential of the region by reviving enterprises that have suspended production or are not operating at full capacity was discussed. The heads of the relevant ministries and departments were tasked with speeding up the resolution of existing issues, as well as regularly monitoring the activities of industrial production in the region.

It was instructed to actively engage the "project groups" created in the region in order to develop new high-margin projects that correspond to the industrial potential of each individual region, ensure constant monitoring of their practical implementation and provide support to their initiators. At the same time, the importance of focusing on the localization of the production of products with high added value, which is in high demand in the domestic and foreign markets, was noted.

The progress in fulfilling the instructions of the Head of State given during his visit to the region in June 2021, as well as the instructions of the Government Commission on Foreign Trade, Investments, Development of Local Industry and Technical Regulation was also studied.

As a result of the meeting, the responsible heads of ministries and departments, as well as local authorities, were given targeted instructions with the designation of specific deadlines for their implementation on the issues discussed.

 

Source: mift.uz

On March 12 this year, a working group led by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and consisting of the heads of ministries, departments and commercial banks left for the Surkhandarya region to study the current state of socio-economic development, as well as investment, industrial and export activities.

During the trip, targeted meetings were held with local entrepreneurs, manufacturers and exporters, during which the current state of enterprises, aspects of the technological process and existing problematic issues were studied. The voiced problems were subjected to a comprehensive analysis, as a result of which specific solutions were developed, the deadlines for their implementation and responsible executors were determined.

The entrepreneurs also briefed the members of the working group on plans for further expansion and modernization of production, mastering the production of new types of products that are in demand in the domestic and foreign markets. During the discussion, issues were raised that require the assistance of relevant ministries, departments, commercial banks and local authorities. Directly during the meetings, measures were developed to promote the presented new projects, and responsible managers received targeted instructions to provide support to their initiators.

In addition, during visits to enterprises, opportunities were explored for further intensifying investment, industrial and export activities in the region through the use of unused reserves, targeted interaction with entrepreneurs and providing them with practical support in the implementation of new projects.

Also, the heads of relevant ministries, departments, commercial banks and local authorities were given separate instructions to promote entrepreneurial activity, develop intersectoral cooperation, localize high-tech industries, increase the export potential and create new jobs.

 

Source: mift.uz

Alexey Sim, Deputy Head of the Agency for Strategic Development, cited investment statistics for 2021 at an interview for the Economic Review.

At the end of last year, Uzbekistan mastered $11.1 billion of foreign investments, which is 113% of the annual forecast. Investments in fixed assets amounted to $9.8 billion, demonstrating a growth rate of 110% compared to 2020.

Foreign direct investment and loans were disbursed for $9 billion, which is 117 of the forecast. Here, investments in fixed assets reached $ 8.2 billion with a rate of 124% compared to 2020.

International financial institutions and foreign government financial organizations have allocated $2.1 billion to the country , which means that the annual forecast is 100% fulfilled .

Industry companies through foreign direct investment and loans were able to master $ 3.8 billion ( 103% of the forecast). For regional projects, this figure reached $5.2 billion , or 130% of the forecast.

The sectors leading in terms of investment are energy, metallurgy, chemical industry, electrical engineering, IT, construction, pharmaceuticals, light industry, agriculture, etc.

In total, more than 50 countries invest in the economy of Uzbekistan. The top five investor countries are as follows:

  1. China - $2.2 billion;
  2. Russia — $2.1 billion;
  3. Turkey — $1.18 billion;
  4. Germany - $800.7 million;
  5. South Korea - $137.4 million

 

 

Source: www.spot.uz

On March 10, President Shavkat Mirziyoyev chaired a meeting on preparations for the Tashkent International Investment Forum.

The event is scheduled for March 24-26. It is expected to be attended by 1.5 thousand large investors and high-level guests from 56 countries, representatives of international organizations and financial institutions. Presidents of the European Bank for Reconstruction and Development, the Asian Development Bank, ministers of several states, heads of large corporations and companies will take part in the forum.

Over 40 events will be held within the framework of the forum, including a plenary session and industry meetings, roundtable discussions, presentations, briefings and others.

The forum will become a platform for the presentation of promising projects that are important for the country’s economy. Opportunities for attracting foreign capital, the created conditions and attractive areas of activity for foreign investors will be presented.

The President of Uzbekistan was informed about the preparations for the forum.

Noting that such an investment forum is being held in Uzbekistan for the first time, the President gave instructions to organize the event at a high level.

The task was set to demonstrate the openness of Uzbekistan to the international business community, the investment potential of each industry and region. The need was noted for achieving concrete results in attracting advanced technologies and investments to large projects.

 

Source: yuz.uz

On March 9 this year, in the format of a videoconference, under the leadership of the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a meeting of the organizing committee on preparations for the Tashkent International Investment Forum was held.

During the meeting, the progress in the implementation of measures to prepare for the event was considered - the heads of relevant ministries, departments, diplomatic missions of Uzbekistan abroad and local authorities of the Republic of Karakalpakstan, regions and the city of Tashkent reported on the ongoing work and provided information on the current state of elaboration of issues of organizational and content in various areas.

The importance of holding a high-level event in the context of strengthening the country's image in the international business community, increasing its investment attractiveness, strengthening investment cooperation with partner countries and deepening interaction with international financial institutions and international organizations was emphasized.

During the meeting, a number of issues were raised, the solution of which requires prompt coordinated actions of the relevant ministries and departments. Interaction algorithms were developed, and targeted instructions were given to responsible managers.

The business program of TMIF events was also considered and measures were discussed to fill it with practical content, meaning the formation of lists of specific investment and trade agreements for signing on the sidelines of the forum. The importance of the event as a unified platform for reaching firm agreements on ongoing projects and programs, demonstrating the investment and economic potential of industries and regions, as well as discussing promising areas for further attracting business communities of foreign countries to expand activities in Uzbekistan was noted.

In a separate order, the need to comply with all the prescribed sanitary and epidemiological measures in order to ensure the safety of participants and guests of the event was emphasized.

As a result of the meeting, responsible managers received targeted instructions to address existing issues of an organizational and substantive nature.

 

mift.uz

On March 10 of this year, a conference was held in Tashkent dedicated to the launch of a new Multi-Year Indicative Program for 2021-2027. European Union for Uzbekistan. The Deputy Prime Minister, Minister of Investment and Foreign Trade Sardor Umurzakov and EU Commissioner for International Partnership Jutta Urpilainen addressed the participants. The event was also attended by: the leadership of the Ministry of Investment and Foreign Trade, Ambassador of the European Union Charlotte Adrian, heads of key ministries and departments of Uzbekistan, as well as diplomatic missions of EU countries and international organizations in Uzbekistan.

In his address, S. Umurzakov emphasized the long-term, multifaceted and dynamically developing nature of cooperation between Uzbekistan and the EU member states and expressed gratitude for the support provided by the European Union in the implementation of large-scale structural reforms, as well as socio-economic projects in the country. He also announced the commitment of the Government to the accelerated promotion of joint initiatives and programs, close cooperation with the EU countries, aimed at finding new promising areas of mutually beneficial cooperation.

During the event, key areas for further bilateral financial and technical cooperation with the European Commission were discussed as part of the next program cycle for 2021-2027. It was announced that the new Multi-Year Indicative Program will initially allocate 83 million euros for 2021-2024, including 76 million euros for the implementation of jointly developed projects, technical assistance programs and budgetary support, as well as 7 million euros to support activities for the development of civil society and human rights. It was noted that the priorities of the Program are fully consistent with the key tasks outlined in the Development Strategy of Uzbekistan for 2022-2026.

On the sidelines of the discussion, the parties comprehensively considered aspects of the implementation of projects and activities in the areas of supporting agriculture and green growth, improving the system of land and water management, introducing innovations, improving the efficiency of public administration and digitalization, including judicial and transport and logistics systems, improving the investment climate, as well as the socio-economic development of the Aral Sea region.

During the event, the parties answered the questions of the participants regarding the practical implementation of the cooperation program, and also spoke about the priorities in this direction.

 

Source: mift.uz

The Business Climate Index in Uzbekistan was introduced according to the methodology of the German analogue of the Business Climate Index of the IFO Institute (IFO Institute), one of the key indicators of economic activity in Germany.

The Center for Economic Research and Reforms (CERR) conducted another round of a survey among enterprises across the country. More than 1,000 companies took part in the survey in two areas: a qualitative assessment of the current state of the business and the expectations of entrepreneurs regarding the prospects for the development of their business for the next three months.

The sampling methodology is sectoral stratified random sampling according to the World Bank Enterprise Survey methodology.

In February this year, the consolidated indicator of the business climate amounted to 60 points and compared to January of this year increased by 1 point, which assesses the state of the business climate in the country as positive (in February 2021 - 60 points; in January of this year - 59 points).

In the sectoral context, the indicator of the business climate in the field of agriculture amounted to 67 points, services - 56 points, in construction - 56 points and industry - 59 points.

Changes in the summary indicator of the business climate are associated with changes in the following components of the indicator:

The indicator of the current state of the business was 43 points, which characterizes the positive mood of entrepreneurs regarding the current state of the business (February 2021 - 44 points).

43% of the entrepreneurs surveyed rated the current state of their business as good.

When asked how the state of business has changed over the past 3 months, 29% of entrepreneurs answered that it has improved, 53% believe that it has not changed, and 18% have worsened.

Demand for goods/services improved in 39% of enterprises, while the number of employees increased in 22% of enterprises.

In the context of industries, the business climate indicator was:

- in the construction of 30 points;

- in industry 39 points;

- in the field of agriculture 48 points;

- in the service sector 44 points.

The indicator of expectation of business development prospects amounted to 79 points, which reflects the expectations of entrepreneurs about the prospects for the development of their business for the next 3 months as optimistic.

80% of entrepreneurs estimated that their business prospects would improve. It is expected that the demand for goods and services will improve in 73% of enterprises, the number of employees will increase in 68%.

22% of entrepreneurs expect an increase in prices for goods/services in the next 3 months. 29% believe that prices will not change, 3% - they will decrease. 46% of respondents do not know how prices for their goods/services will change in the near future.

The indicator of expectations of business development prospects by industry was:

- in agriculture - 88 points;

- in industry - 81 points;

- in construction - 84 points;

- in the service sector - 69 points.

In general, the relationship between the values of the current situation and expectations means that, according to business entities, the positive trend in the development of the economy will continue in the next 3 months.

 

Source: review.uz

On March 9 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with the leadership of the international coalition Cotton Campaign and the American non-profit human rights organization (NGO) Responsible Buyers Network.

The parties comprehensively discussed the progress made by the Government of Uzbekistan in implementing socio-economic reforms, creating an open economy built on market principles, strengthening legal mechanisms for protecting human rights, and eradicating the practice of forced labor in the country.

The foreign delegation recognized the successes achieved by Uzbekistan in these areas, in particular, the country's obtaining the status of a beneficiary of the EU's Generalized System of Preferences "GSP +" in 2021 and its accession to the UK's GSP Enhanced framework, as well as the eradication of in a country of systemic forced labor.

The active nature of interaction with the International Labor Organization, the Confederation of Employers, the Federation of Trade Unions, representatives of civil society, heads of farms and cotton clusters was emphasized in order to increase the effectiveness of monitoring and preventing violations in the field of labor, as well as ensuring the protection of labor rights and freedoms.

According to the parties, these measures effectively contribute to an increase in the number of responsible suppliers and employers in the country and their integration into global supply chains, which in general will have a positive impact on the further deepening of trade and economic ties between Uzbekistan and partner countries.

During the meeting, the parties considered further joint actions to create conditions for the development of civil society in Uzbekistan, introduce the principles of corporate social responsibility at domestic enterprises, stimulate cotton clusters and farms to use energy-efficient and water-saving technologies in production, as well as ways to further strengthen cooperation in data areas with specialized international organizations.

As a result of the meeting, a mutual commitment was expressed to an active and constant dialogue in all the discussed areas of interaction and an agreement was reached on the consistent deepening of practical cooperation.

 

Source: mift.uz

On March 7, under the chairmanship of President Shavkat Mirziyoyev, a videoconference was held at which the progress of the government's implementation of measures to achieve the targets set for the current year for the socio-economic development of industries and regions was discussed.

It was noted that in January-February of this year, 687 million dollars of foreign investment was disbursed, including 615 million dollars of foreign direct investment and loans. Since the beginning of the year, production facilities have been commissioned for 506 projects worth $337 million, which ensured the creation of over 7,000 new jobs. 

For 2 months, the volume of exports of goods and services exceeded $1.7 billion and increased by 20 percent compared to the same period in 2021. In particular, the export of building materials produced by domestic enterprises increased almost 2 times, electrical products - 1.5 times, textiles and fruits and vegetables - 1.3 times.

At the meeting, the heads of industries and regions were instructed to promptly resolve logistical issues in the implementation of investment projects and export deliveries.

Separately, the head of state dwelled on the issues of ensuring price stability in the domestic consumer market.

It was noted that for 2 months of the current year, the inflation rate amounted to 1.38 percent, which is lower than in the same period of 2021 (1.7 percent).

At the same time, sharp price fluctuations in global markets require that the heads of responsible departments and regions of the country take additional measures to prevent sharp price changes in the domestic market, primarily by saturating the food market with goods in the required volumes.

The President gave a critical assessment of the work carried out by the leaders of the regions to allocate an additional 80,000 hectares of land to the population for the development of household plots and the cultivation of agricultural products in demand on the domestic market.

Specific instructions were also given to improve the efficiency of allocated public funds in the amount of 2 trillion soums for the development of horticulture and accelerate the development of these funds.

The heads of the regions were instructed to take measures to ensure the uninterrupted supply of products to food markets and to form the necessary reserves for this purpose. 

 

 

Source: president.uz

On March 7 this year, negotiations were held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and the Director-General of the Swiss Agency for Development and Cooperation Patricia Danzi.

During the meeting, topical issues of the current bilateral financial and technical cooperation, as well as prospects for its expansion within the framework of the new program of cooperation between Switzerland and the countries of Central Asia for 2022-2025, were discussed.

The head of the Swiss delegation highly appreciated the positive results achieved by Uzbekistan in a relatively short period of time in such areas as the development of international and regional cooperation, ensuring stability and sustainable development.

It was announced that within the framework of the program of cooperation with Central Asia for 2022-2025. The agency will allocate $240 million. The parties discussed priority areas of cooperation and considered the most promising projects for further development within the new cooperation program.

An agreement was also reached on taking joint measures to accelerate the practical implementation of 2 projects totaling $31.7 million in the areas of improving the system of vocational education and water management in the Zerafshan river basin.

As a result of the event, further steps were agreed to deepen financial and technical cooperation in priority areas.

 

Source: mift.uz

In accordance with the order of the Government of the Republic of Uzbekistan, in order to implement the measures specified in the "Road Map" for the development of international transport corridors, to further improve the efficiency of regular transportation of foreign trade goods to foreign markets, as well as to ensure the smooth operation of rail transport and timely delivery of goods in JSC "O'zbekiston temir yo'llari" an office is opened for consultation of freight owners around the clock in 24/7 mode.

Hotline numbers:

  1. JSC "Uzbekistan Railways" - 90-938-40-00 (+ Telegram).
  2. RRJ Tashkent - 71-238-98-59.
  3. RRJ Kokand  - 98-558-05-18.
  4. RRJ Bukhara  - 94-362-14-04.
  5. RRJ Kungrad - 97-220-99-55.
  6. RRJ Karshi  - 93-603-31-35.
  7. RRJ Termez  - 90-975-26-53.

 

Source: www.spot.uz

The Embassy of Uzbekistan in the UK, together with the South London Chamber of Commerce (LSCC), organized a briefing dedicated to the presentation of the trade and investment potential of our country.

The event was attended by representatives of investment funds, legal and consulting companies, manufacturing enterprises from such areas as the automotive industry, construction, information technology, as well as education, healthcare, the hospitality sector and others.

The participants of the event were informed about the priorities of the economic development of Uzbekistan, the measures taken to ensure high growth rates. Separately, major upcoming events were touched upon, including the Tashkent International Investment Forum and the regular meeting of the Uzbek-British Trade and Industry Council (UBTIC).

During the discussions, the participants welcomed the dynamic changes in Uzbekistan, including the government's efforts to comprehensively and accelerate the development of economic sectors, create modern jobs and reduce poverty. British participants noted the dynamic development of multifaceted bilateral relations between the UK and Uzbekistan in recent years and expressed interest in establishing partnerships with Uzbek enterprises.

LSCC Executive Director Jerry McDonnagh announced the ongoing preparation of the next LSCC trade mission to Uzbekistan this fall as part of a memorandum of cooperation with the branches of the Chamber of Commerce and Industry of the Kashkadarya and Namangan regions of Uzbekistan, signed following the visit of the LSCC delegation to Uzbekistan in 2019.

At the end of the event, compatriots from among students studying in the UK held a presentation of their own startup projects in the field of technologies using artificial intelligence and educational services. In addition, the participants were acquainted with the permanent exhibition of products of decorative and applied arts of Uzbekistan, organized at the Embassy with the support of the Hunarmand Association.

 

Source: dunyo.info

In January and February 2022, the total volume of transactions on all trading floors of the Uzbek Republican Commodity Exchange increased by 44.7% compared to the corresponding period in 2021 and amounted to 16.0 trillion soums. At the same time, 89% of the volume of transactions fell on the exchange trading, and the rest - on e-commerce trading systems, including exhibition and fair trading, electronic public procurement, online auctions of car and mobile numbers.

At the central office of the Uzbek Republican Commodity Exchange, a press conference was held with the title of  “Results and prospects for the development of exchange trading and e-commerce”.

During the event, representatives of the media were provided with detailed information on the issues of ensuring transparency and the introduction of market principles in commodity markets, the introduction of innovations in the e-government procurement and e-logistics portals, as well as other topical issues related to exchange activities.

As noted at the press conference, as part of the implementation of the Decree of the President of the Republic of Uzbekistan dated March 17, 2021 PP-5031 “On measures to further introduce market mechanisms in the processes of selling highly liquid and monopoly goods”, several new projects in the field of exchange trading and e-commerce.

In accordance with the above Resolution, the list of goods sold through open exchange auctions has been expanded, as well as access to commodity resources for all economic entities, including entrepreneurs, fair competition has increased and a modern pricing mechanism for goods has been introduced, taking into account real market conditions.

At the same time, in May 2021, the Uzbek Republican Commodity and Raw Materials Exchange, as the operator of the electronic public procurement system, launched a new single portal xarid.uzex.uz in order to increase transparency and create additional convenience in the public procurement system.

This portal combines all types of public procurement and introduced a single classifier of goods and services, reflecting all the parameters of goods. This, in turn, facilitates the placement of lots on the portal and helps to reduce the problems associated with the delivery of low-quality goods by customers.

Customers and participants in public procurement can also go through a one-time online registration on a single portal of public procurement and use a single personal account in the settlement and clearinghouse of the exchange.

The total volume of transactions concluded in January-February 2022 in the electronic public procurement system xarid.uzex.uz increased by 2.2 times compared to the corresponding period in 2021 and amounted to almost 1.7 trillion soums. At the same time, savings from budget and corporate clients increased by 44.5% and amounted to 222.4 billion soums.

In order to introduce new trading instruments for exchange trading, as well as to create an electronic logistics trading portal, in which services for the transportation of goods by road are digitized on the principles of a transparent queue, Decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 777 was adopted on December 27, 2021.

In accordance with this resolution, the electronic logistics trade portal e-logistika.uzex.uz, launched last year, is being improved in order to ensure transparency and create healthy competition in the field of freight transportation of goods sold at exchange auctions.

Currently, transportation of goods sold at exchange auctions by road is carried out through this portal in the order of an auction for a decrease. To do this, customers and carriers go through online registration in the electronic system for participation in electronic trading and make advance payments to the clearinghouse of the exchange.

The customer, in order to use the service of transportation of products purchased at the exchange auction, places an ad on the portal independently or through a dispatcher agent. In turn, the carriers make their proposals for the announcement posted on the portal through their account.

Within 24 hours after the deadline for accepting offers from carriers, the customer reviews the received offers from carriers and chooses the most suitable one for himself. The carrier that offered the lowest price among the eligible bids is automatically determined by the electronic system as the winner, and a contract is concluded between the customer and the winning carrier.

Shipment of goods sold through exchange auctions is carried out according to the principle of "transparent queue" taking into account the sequence of payments made. Buyers can track the movement of goods in real-time using GPS trackers installed on vehicles.

In turn, the Antimonopoly Committee, together with the Ministry of Transport, can monitor the bidding process for the transportation of exchange goods on the portal, exchange the necessary information, identify unscrupulous carriers and apply appropriate measures to them.

Currently, 799 carriers, 2,235 vehicles and 626 customers are registered online on the portal, and more than 800 contracts worth more than 1.5 billion soums have been concluded.

 

Source: review.uz

Negotiations were held between the Deputy Minister of Investments and Foreign Trade B. Abidov and the Chairman of the Committee on Northern Economic Cooperation under the President of the Republic of Korea Park Chung-soo, whose visit was organized as part of the celebration of the 30th anniversary of the establishment of diplomatic relations between the Republic of Uzbekistan and the Republic of Korea.

During the meeting, topical issues on the bilateral agenda were considered, as well as the implementation of the agreements reached following the state visit of the President of the Republic of Uzbekistan to the Republic of Korea in December 2021.

The Korean delegation expressed interest in joint interaction in key areas of cooperation, in particular, in expanding the multilateral partnership within the framework of the "New Northern Policy", which was initiated in 2017 by the President of the Republic of Korea Moon Jae-in in order to strengthen economic and political cooperation with countries to the north of the Republic of Korea.

The Uzbek side noted the readiness to deepen the multilateral and strategic partnership with the Republic of Korea within the framework of the "New Northern Policy" this year through the implementation of joint projects with the Eximbank of Korea, attracting grant funds through KOICA and gratuitous assistance from the government of the Republic of Korea, as well as expanding an extensive program "green" development of Uzbekistan.

As a result of the event, joint practical actions were agreed to further deepen cooperation in priority areas of the bilateral agenda.

 

 

Source: mift.uz

According to the State Committee on Statistics, in January 2022, Uzbekistan exported finished textile products worth $72.3 million to 26 foreign countries.The volume of exports of finished textile products increased by 16.2 million US dollars compared to the corresponding period last year.

Countries where Uzbekistan exported the most finished textile products in January 2022:

Russia – 39.4 million USD

Kyrgyz R. – 24.1 million USD

Kazakhstan – 3.1 million USD

Ukraine – 1.2 million USD

Germany – 828 thousand USD

Tajikistan – 725 thousand USD

Regions with the largest exports of finished textiles in January:

Andijan region – 21.9 million USD

Namangan region – 14.1 million USD

Tashkent region – 11.7 million USD

city ​​of Tashkent – 8 million USD

Ferghana region – 4.6 million USD

 

 

Source: stat.uz

In January-December 2021, 57,611.3 billion soums of investments in fixed capital were disbursed in Tashkent, at the expense of own funds of enterprises, organizations and the population 24,962.8 billion soums (share in total investment 43.3%). Due to centralized sources of financing in the current period, the share of investments in fixed assets is only 20.4% or 11,765.3 billion soums.

 

Source: stat.uz

President of the Republic of Uzbekistan Shavkat Mirziyoyev and Prime Minister of the Islamic Republic of Pakistan Imran Khan continued negotiations in an expanded format with the participation of official delegations of the two countries.

Issues of developing multifaceted cooperation, primarily in the political, trade and economic, investment, transport and logistics, tourism and humanitarian spheres, were considered.

- The peoples of Uzbekistan and Pakistan located on the ancient Great Silk Road have been linked by a common history, similar languages ​​and a rich spiritual heritage since ancient times. Today we are reviving these traditions. We are glad that our interstate relations have risen to the level of strategic partnership, Shavkat Mirziyoyev said.

A stable dynamics of the development of interaction was noted despite the pandemic. In particular, in 2021, the volume of bilateral trade increased by 50 percent. This is more than in previous years, but still does not match the existing potential between the two countries.

The head of our state noted that in the near future we have the opportunity to increase mutual trade up to $500 million, and in the future - up to $1 billion.

 First of all, the need for joint development of a program of industrial cooperation, as well as a comprehensive "road map" to expand the structure of trade turnover was emphasized.

The second important area is the strengthening of cooperation between our countries in the field of multimodal transport, cargo and air transportation. Recently, the Agreement on Transit and Trade came into force, laying the foundation for regular freight traffic.

The President again noted the importance of implementing projects to develop cooperation in the transport and logistics sector.

- The railway "Termez - Mazar-i-Sharif - Kabul - Peshawar" is our common future. When the construction of this route is completed, we will create the closest, cheapest and safest corridor connecting Pakistan to Central Asia, and Uzbekistan to the ports of Karachi, Gwadar and Qasim. This railway will completely change the face of our regions, the President of Uzbekistan said.

During the negotiations, an agreement was reached on the further promotion of this project.

The prospects for the resumption of regular flights were discussed.

Interaction between the regions of the two countries is also developing. In particular, many projects are jointly implemented by the business community of Namangan region and Punjab province. During the negotiations, the parties agreed to establish similar cooperation between the Surkhandarya region and Khyber Pakhtunkhwa province and other regions.

Another important area is pilgrimage tourism. For the purpose of systematic organization of pilgrimages, the President proposed to create a joint group and open representative offices of the ministries of tourism in the two countries.

Issues of cooperation in the field of science, ecology, higher education, art, cinema and sports were considered.

The co-chairs of the Intergovernmental Commission, the ministers informed about the agreements reached and future plans. Shavkat Mirziyoyev and Imran Khan supported their proposals and gave relevant instructions.

- I think that today's open and fruitful dialogue, the signed documents will open up new prospects for our strategic partnership. Most importantly, we - two brothers - have a complete mutual understanding. To achieve the big goals set today, our governments must be in constant contact, the President said.

The talks that took place once again confirmed the strong will and desire of our people to bring cooperation to a new level.

 

Source:president.uz

The 7th meeting of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation between the Republic of Uzbekistan and the Islamic Republic of Pakistan (IPC) was held in Islamabad. The meeting was co-chaired by: from the Uzbek side - Deputy Prime Minister - Minister of Investment and Foreign Trade S. Umurzakov, and from the Pakistani side - Advisor to the Prime Minister on Trade and Investment Abdul Razzak Dawood.

The agenda of the meeting included a wide range of issues of trade and economic, investment, transport and logistics cooperation, interaction in the areas of food security, education, innovation, science, information technology, tourism and interregional relations.

The event has become a platform for a comprehensive discussion of existing issues in various areas of interaction, also made it possible to identify promising areas for expanding mutually beneficial partnerships and determine further steps to establish practical cooperation in each of them.

The parties noted with satisfaction the successful completion of the agreement on the Preferential Trade Agreement between the two countries and agreed after its signing to develop a joint "Roadmap" for its practical implementation. Also in this context, an agreement was reached on active work to use the existing potential of mutual trade in order to bring the volume of Uzbek-Pakistani trade to $1 billion in the near future.

Measures to deepen industrial cooperation between entrepreneurs of the two countries were considered. Mutual readiness was expressed to jointly develop a program of industrial cooperation between Uzbekistan and Pakistan for 2022, which will include specific projects in such areas as agriculture, agricultural engineering, light, pharmaceutical and electrical industries, the production of building materials, as well as information about the initiators these projects and the timing of implementation. For these purposes, it was proposed to create a joint project office between the Ministry of Investment and Foreign Trade of Uzbekistan and the Ministry of Trade of Pakistan.

No less priority was given to the development of cooperation in the field of transport and transit. Further steps have been worked out to accelerate the implementation of the project for the construction of the trans-Afghan railway "Termez - Mazar-i-Sharif - Kabul - Peshawar", the establishment of direct flights and the implementation of joint infrastructure projects. In order to introduce a systematic approach to solving the tasks set, it was decided to create a separate subcommittee on transport and logistics within the framework of the IGC.

Special attention was paid to cooperation in the field of food security: the parties worked out solutions to accelerate the implementation of existing agreements in this area, and also agreed to develop a separate cooperation program in the near future.

Also on the sidelines of the event, the issues of establishing relations between higher educational institutions, technoparks, research centers, research laboratories and business incubators of the two countries, promoting bilateral tourism, developing interregional cooperation, bearing in mind, among other things, the exchange of experience in the field of regional development, digital economy, architecture, urbanization and infrastructure.

As a result of the meeting, an appropriate protocol was signed, which reflected all the agreements reached during the event.

 

Source: mift.uz

The growth rate of assimilated investments in fixed assets in the Fergana region in January-December 2021, compared to the corresponding period last year, amounted to 108.2%. The share of investments financed from non-centralized sources of financing in the total volume of investments in fixed assets amounted to 84.0% or 10851.9 billion soums. Accordingly, the share of investments in fixed assets financed from centralized sources of financing is 16.0% or 2068.7 billion soums.

 

Source: stat.uz

The State Assets Management Agency of the Republic of Uzbekistan (hereinafter referred to as UzSAMA) announces the start of the privatization process of the share in Hyatt Regency Tashkent Hotel (hereinafter referred to as “the Hotel” or “the Asset”) through a competitive sales process (hereinafter referred to as “the Deal”) in accordance with the relevant privatization programs. The hotel will be sold through the sale of a 100% share in the business entity, which is currently being created through the transformation of SUE "Poytaxt qurilish va xizmat" (the current owner of the Hotel).

In preparation for this transaction, following the selection on the best offer basis, “KPMG Valuation and Consulting” LLP (hereinafter - KPMG) was selected as the exclusive financial consultant for the privatization of the asset.

One of the international companies "Big Four" (BIG4) will be attracted in the valuation of the Hotel as a share (business), and the recommended value, based on their Asset valuation report, will be taken as a benchmark in the sale process. 

The sale is organized as a competitive bidding process, open to all interested parties (hereinafter referred to as "the Participants"). Participants are currently invited to express their interest in participating in the sale process of the Hotel.

Brief information about the Asset:

  • 5-star hotel “Hyatt Regency Tashkent” was opened in 2016 in the center of Tashkent and became the first hotel of the international brand Hyatt in Uzbekistan;
  • it is the 5-star hotel in Uzbekistan directly managed by an international hotel chain;
  • the Hotel has an advantageous and exclusive location in the center of Tashkent, within walking distance of the main attractions of Tashkent and the central structure of ministries and departments;
  • the total land area - 3.1 hectares, the area of buildings and structures - 60.1 thousand square meters;
  • the Hotel is located on 8 floors and offers 300 rooms for accommodation, including 248 standard and 52 junior / suite rooms;
  • the Hotel has several conference halls of different capacity, equipped at the level of international quality standards, as well as a banquet hall of 850 square meters, indoor swimming pool and SPA-center;
  • compliance with quality standards has been tested and confirmed by experts accredited by the Hyatt Group.

Interested parties are invited to submit an application in the form of a letter in English, Russian or Uzbek (at the discretion of the applicant, the letter in Russian or Uzbek must be accompanied by a letter in English), and signed by an authorized representative of the applicant (hereinafter - the Application), sent to e-mail addresses:

DKalazhanov@kpmg.kz;

SSandykbayeva@kpmg.kz;

VPolyakov@kpmg.kz.

 

The Applications will be accepted until March 28, 2022, 18:00 (Tashkent time).

 

The application process is open to all interested participants. All applicants will be included in the register of potential participants in the sale process.

Non-Disclosure Agreement (NDA) will be signed with potential investors who are qualified for the next step, and access will be granted to a Virtual Data Room (VDR) where general information about the Asset's activities will be available.

Besides, the detailed sequence of the sale process, its conditions and the next steps will be published additionally.

If you have any questions, you are invited to reach out to the emails listed above.

 

Additional terms

UzSAMA reserves the right to change the sequence of the sale process or refuse to sell to any potential buyer (s) or to negotiate with them at any time without giving a reason.

This announcement, or any part of its content, should not be construed as a form of commitment on the part of UzSAMA, Hotel and KPMG in relation to the sale of the Asset, which might be assumed in connection with the publication of this announcement. UzSAMA and KPMG reserve the right in their sole discretion at any time and in any respect, without assuming joint or individual responsibility

(i) amend the application deadline

(ii) follow different procedures in relation to different stakeholders, and / or negotiate with one or more potential buyers within the framework of the schedule and procedure provided jointly by UzSAMA, the Hotel and KPMG, excluding any other potential buyer (s) without prior notice;

(iii) terminate the sale process for any reason; and / or

(iv) terminate any discussion and negotiations with any potential buyer (s) in relation to the deal at any time and without giving reasons.

 

Source: davaktiv.uz

On February 25, the government approved a unified procedure for notifying authorized bodies about the start or termination of activities. The document is available in the Lex.uz database and will come into effect on March 1.

The notification procedure operates in those areas where the business does not need the decision of the authorized body to start work, but records and control over the entities involved in the relevant activities are kept.

Notification of the beginning or termination of activities is sent electronically through the UPIPS or the information system " License ". Notifications are accepted 24/7, including weekends and holidays. From the moment of acceptance of the application, the authorized body is considered notified.

The procedure applies to 33 types of activities, including:

  • work with precious metals and stones, manufacture and sale of jewelry from them;
  • activities of an investment consultant;
  • activity of a pawnshop;
  • import of cash foreign or national currency;
  • opening/closing of a bank branch or banking service office, etc.

Start of activity

The notification is certified by the electronic digital signature of the applicant. From the existing list, the type of activity or part of it planned for implementation is selected, and the corresponding passport is filled in. It reflects the requirements and conditions related to the selected type (subtype) of activity. Additional required documents are attached to the passport in a scanned form in PDF, PNG or JPEG format.

The certificate of notification of the start of construction and installation work has not yet been approved. The Ministries of Construction and Justice were instructed to jointly develop and submit it to the Cabinet of Ministers by April 1 .

In this case, it is mandatory:

  • observance and fulfillment of the requirements and conditions stipulated by the passport;
  • ensuring the accuracy of the information specified in the notification;
  • registration in the UNLS of existing and new employment contracts, changes to them and their termination - if this requirement is prescribed for the corresponding type of activity;
  • notification of the authorized body within 10 working days after the registration of a change in the name, location (address of residence) of the notifier or the opening of a branch and representative office.

To start working on a notification basis, you need to pay a fee - up to 50% of the BCV (except for the retail sale of alcoholic products and the sale of alcohol in public catering).

A notification that meets all the criteria is automatically accepted by the electronic system and entered into the general register. The notifier is sent a confirmation to his personal account or, at his request, in the form of an SMS message to the specified mobile number. The authorized body has the right not to accept the notification only if

  • it contains inaccurate or false information;
  • the fee for sending the notification has not been paid;
  • compliance with and fulfillment of the requirements and conditions established for the specified activity has not been confirmed;
  • the notifier has already been entered in the register for current activities (re-notification);
  • the activity of the notifier has been suspended for a certain period by an authorized body or a court;
  • by a court decision, this activity is prohibited to the notifier.

Refusal to accept a notification for reasons other than those listed is prohibited .

Termination of activity

Activities carried out in a notification manner may be terminated on the basis of:

  • notification sent to the authorized body by the notifier;
  • relevant court decision.

In the first case, you can also use the UPIPS or the " License " platform. The fee in this case is not charged. The activity is considered terminated from the date specified in the notice. A note about this is automatically entered in the register of notifications.

In turn, the court may decide to terminate the activities carried out in a notification manner, at the request of the authorized body in the following cases:

  • identification of false or inaccurate information specified in the notification of its beginning;
  • failure to eliminate deficiencies associated with violation of existing requirements and conditions within the prescribed period;
  • systematic (two or more times during the year) or a single gross violation of the requirements and conditions, if this led to harm to the life and health of citizens, damage to someone's rights and legitimate interests, public safety, and environmental damage.

The authorized body notifies the subject in advance by sending him the act in electronic form, after which he submits an application to the court within 5 days. A note on the termination of activities in the register of notifications is made within 3 days after the entry into force of the court decision.

If the court refuses to satisfy the application, the authorized body is obliged to compensate the business entity for the losses incurred by it.



Source: www.spot.uz

A Presidential resolution "On Approval of an International Treaty" was adopted on 25 February.

In accordance with the resolution, the Agreement on Transit Trade between the Governments of Uzbekistan and Pakistan was approved (signed on 15 July 2021 in Tashkent).

The Ministry of Investments and Foreign Trade, the Ministry of Transport and the State Customs Committee have been identified as the competent authorities responsible for the implementation of this international treaty.

The Cabinet of Ministers and the heads of the relevant ministries and departments provide control over the fulfillment of the obligations of Uzbekistan after the entry into force of this international treaty.

 

Source: t.me

On February 27 of this year, negotiations were held in the VKS format between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov and the Minister of Investments of the Kingdom of Saudi Arabia Khalid al-Falih.

During the meeting, topical issues of bilateral investment and trade and economic cooperation, as well as the implementation of the agreements reached following the visit of the government delegation of the Republic of Uzbekistan to Saudi Arabia, held in May last year, were substantively considered.

Particular attention was paid to the opportunities for attracting additional Saudi investment in the energy sector and the development of energy infrastructure. A special role in this direction was noted for the Saudi company ACWA POWER, which is already implementing projects in Uzbekistan totaling about $3 billion.

The Saudi side expressed its readiness for close cooperation in attracting investments for the implementation of additional projects in the fields of agriculture, chemistry and petrochemistry, as well as metallurgy in Uzbekistan.

An agreement was reached to organize a meeting of the IGC this year, a joint meeting of the Business Council between the business circles of both countries, as well as an exhibition of Uzbek domestic products "Made in Uzbekistan" in the cities of Riyadh and Jeddah.

The issues of increasing mutual tourist flow through the establishment of regular direct passenger flights between the two countries were touched upon.

As a result of the event, practical actions were agreed on to further deepen cooperation in priority sectors.

 

Source: mift.uz

On 22 February 2022, two events were held within the framework of the Organization for Economic Cooperation and Development (OECD) Forum on Due Diligence in the production of clothing and footwear, held by the German Society for International Cooperation GIZ together with Belgian business association Amfori and United Nations Economic Commission for Europe (UNECE).

Both events were held in the form of a videoconference, attended by representatives of international organizations and companies such as the International Labor Organization (ILO), the United Nations Capital Development Fund (UNCDF), the Swiss State Secretariat for Economic Affairs (SECO), Better Cotton, Adidas AG, Tom Tailor Sourcing and many others interested in Uzbekistan as a new supplier of textile products.

At a virtual session hosted by GIZ and Amfori, the presenters presented the latest achievements in the cotton and textile sector of Uzbekistan, including reiterating that there were no cases of forced and child labor in the cotton fields during the harvest. UNECE Representative Maria Teresa Pisani spoke about the ongoing project at INDORAMA KOKAND TEXTILE to implement the ERP system, which is a specialized integrated application software package that provides a common data and process model for all areas of activity.

At the next online session organized by the UNECE, the audience was introduced by the presenters to the latest innovative technologies introduced in the textile and leather industries, for example, Blockchain Pilot technologies in Peru and Cluster technologies in Uzbekistan, which definitely gave their results in the form of better quality cotton and finished products, and increased countries' exports.

According to the international experts who spoke at the sessions, further cooperation of the Uztekstilprom Association with GIZ, Amfori and UNECE will be comprehensively developed through the implementation of new and ongoing projects, including, in the future, the joint efforts of the parties involved will provide an additional impetus to the knowledge exchange that is so necessary today and experience in the textile and garment-knitwear industry.

 

Source: uzts.uz

The head of state got acquainted in the city of Nukus with the activities of the situational center for investment projects.

The Center is a unified system for the formation, implementation and monitoring of business projects. Here, ministries, departments, regions and organizations interact promptly on the principle of "single window". 

Three groups operate in the center - regional projects, strategic development and operational assistance to entrepreneurs. Also, the Council of Entrepreneurs was created, which discusses new ideas and proposals with project teams attracts business people to their implementation.

In addition, specialists from the Ministry of Investments and Foreign Trade and the Chamber of Commerce and Industry develop and offer the population ready-made projects, taking into account the specifics of the region.

Representatives of leading industries are assigned to the center. The President was provided with information on the planned sectoral projects for Karakalpakstan.

As previously reported, regional khokimiyats were involved in the joint development of the Aral Sea region. They developed projects for each district of Karakalpakstan. The presentation of these plans took place in the center.

On this, President Shavkat Mirziyoyev completed his trip to the Republic of Karakalpakstan and arrived in Tashkent.

 

Source: president.uz

Non-residents can now buy government securities of Uzbekistan, the press service of the Ministry of Finance reported.

The corresponding resolution was issued by the Cabinet of Ministers on February 21. The Cabinet is amending the document regulating the issue and circulation of Uzbek government bonds.

In particular, all residents of Uzbekistan, both legal entities and individuals, as well as non-residents , received the right to purchase sovereign bonds at primary auctions . Prior to that, non-residents and resident individuals could not buy them.

The volume of liabilities placed for purchase by non-residents will be determined by the Ministry of Finance and the Central Bank. Accounting for the results of auctions will be carried out on the basis of T+0, T+1, T+2 settlement modes.

Interest on sovereign bonds will be paid every 6 months, in accordance with international standards. The formulas of the International Association of Capital Markets will be used to calculate interest.

In addition, the Ministry of Finance will consider measures to increase the issuance of government securities and develop their secondary market. This will help diversify the public debt portfolio and reduce the level of currency risks.


The first auction for the placement of government bonds took place on December 26, 2018. Since then, the Ministry of Finance has held 104 auctions and placed securities worth 12.042 trillion soums. In 2021 alone, 64 auctions were held, during which bonds for 4.86 trillion soums were placed (net - 4.14 trillion soums).

It has been planned for several years to allow the purchase of government bonds for non-residents and citizens. Deputy head of the Central Bank Ilkhom Norkulov promised in 2019 to open the market for them “as soon as [it] starts to function normally.”

In particular, they planned to allow foreigners to this market in 2019. In October 2021, President Shavkat Mirziyoyev approved the issuance of inflation-linked government bonds — they are able to protect the investor from price increases and receive a guaranteed income.

 

Source: www.spot.uz

A hydrogen production unit has been launched at the Uzbekistan GTL plant, the press service of the Ministry of Energy reports.

After the plant is fully commissioned, the plant will be able to receive up to 300 million cubic meters of hydrogen annually. The resulting volume will be used in the production of synthetic oil and fuel.

As previously reported, Uzbekistan GTL will be able to produce 307,000 tons of jet fuel, 724,000 tons of diesel fuel, 437,000 tons of naphtha, and 53,000 tons of liquefied gas. The volume of production of the most demanded products at the moment can be increased dynamically.

It is noted that GTL fuel, when used, creates 40% less atmospheric emissions compared to traditional fuel. Due to this, annual emissions will be reduced by 13.5 thousand tons.

President Shavkat Mirziyoyev instructed to create the first gas chemical cluster in Uzbekistan on the basis of the plant and the Shurtan GCC. It will launch the production of a wide variety of products - from synthetic oils and alkylbenzene to polyethylene and polypropylene.

By 2025, it is planned to increase the volume of production by 6 times - up to $1.8 billion. For every $1 of the cost of raw materials used by the cluster, there will be $10 of added value.

 

Source: www.spot.uz

The foreign trade turnover of Uzbekistan in January 2022 reached $3.5 billion, according to the data of the State Committee on Statistics (Goskomstat).
The volume of exports amounted to 1.4 billion dollars. The republic sold products worth 1.2 billion to foreign partners, and services - 176.5 million.
The volume of imports in foreign trade reached $2.1 billion. Uzbekistan purchased products worth $1.9 billion, and services - $147.1 million.
Earlier it was reported that last year Uzbekistan's foreign trade turnover reached $42.1 billion, having increased by 16 percent over the year.
Russia ranked first among major partner countries with a share of 17.9 percent in the total volume of trade, China moved to second place with a share of 17.7 percent.
The leadership of Russia in the State Statistics Committee was associated with the growth of Uzbek imports by 1.3 times - up to 5.458 billion dollars. The structure of Russian deliveries is dominated by metallurgical products, foodstuffs, industrial goods and equipment, as well as oil products.
 

The State Assets Management Agency informs about achievement of agreement (Transaction) with PJSC “Sovcombank” (Russian Federation) on sale of 100% state block of shares of JSCB “Uzagroexportbank” for 4.0 mln.

In accordance with the Decree of the President of the Republic of Uzbekistan "On the strategy of the banking system reform of the Republic of Uzbekistan for the years 2020-2025" ¹ УП-5992 dated May 12, 2020, proceeding from the world practice, the results of the activity analysis of the JSCB "Uzagroexportbank" (due diligence), and following recommendations of the consultant on privatization, the process of selling 100% of state block of shares was realized on the competitive basis by means of public tender

For the sale process as a privatization consultant was attracted an international company "Grant Thornton", the assessment was conducted by the international company "KPMG".

Interest in purchasing the state block of shares of JSCB "Uzagroexportbank" was expressed by 4 bidders, from which applications were received.

Each bidder was given an opportunity of access of the Virtual Data Room (VDR) to study financial, legal, organisational and tax information related to the bank, carry out analysis of the activity (due diligence), receive answers from the consultant on privatisation, the bank management and were given a possibility to visit the bank.

It was taken into account that among the received proposals, “Sovcombank” meets the requirements as a contender directly engaged in banking activities, able to bring not only foreign investment in the country, but also the experience of a foreign bank, modern financial products and services.

Taking into account the compliance of “Sovcombank's” proposal with the legal and regulatory requirements governing banking activities and the recommendations of the privatization consultant, as well as taking into account the price parameters of the proposal and “Sovcombank's” intention to develop JSCB “Uzagroexportbank”, “Sovcombank” was chosen as the winner of the public tender, in connection with which legally binding documents on the Transaction were signed between it and the State Assets Management Agency.

For reference: PAO “Sovcombank” is a universal bank, one of the ten largest banks of the Russian Federation. As of September 30, 2021, the bank's assets consists of RUR 1.9 trillion with equity of RUR 224 bln. The Bank has 23,000 employees working in over 2,300 offices in 1,000 locations across the Russian Federation. The Bank serves 12 million customers. The bank's international credit ratings are as follows: S&P - "BB", forecast "positive", Moody's - "Ba1", forecast "stable", Fitch - "BB+".

JSCB “Uzagroexportbank” was established in 2017 to create favorable conditions for producers of agro-industrial products and financial support of exporting organizations. The head office of the bank is located in Tashkent. At the end of 2021, the assets of JSCB "Uzagroexportbank" exceeded 69 billion soums.

At the same time, we inform that in line with international practice, in the interests of the participating bidders we don't disclose the names and content of their proposals.

 

Source: davaktiv.uz

In order to further develop the construction industry and the production of building materials in the country, ensure the construction of affordable housing in the regions, reduce the imbalance of supply and demand in the housing market, the President issued a decree.

According to the decree:

For the implementation of geological exploration in 2022-2023, 100 billion soums will be allocated from the State Budget to the State Committee for Geology and Mineral Resources, within the funds allocated for geological exploration.

The State Committee for Geology and Mineral Resources, together with regional khokimiyats, will put up for auction 400 mineral deposits within a month;

For the Khorezm region, the cost of investment projects with the provision of external engineering and communication networks at the expense of the state budget is set at least 50 billion soums;

At the same time, according to this provision, the cost of providing investment projects worth from 50 billion to 200 billion soums with external engineering and communication networks should not exceed 20% of the cost of these projects.

 


Source: sof.uz

On February 21, the Cabinet of Ministers approved the procedure for electronic licensing in certain areas of business. The decision is available on the Lex.uz portal.

From March 1, licenses for a number of activities that require permission can be issued online - through the information system "License" or UPIPS.

The list includes 28 activities, including:

  • non-state educational services;
  • tourism activities;
  • sending workers abroad by private employment agencies;
  • retail sale of medicines and medical goods (pharmacies);
  • veterinary services;
  • production of ethanol and alcohol;
  • production of tobacco products and others.

To obtain a license, you need to send an application along with the required documents through the "License" system or UPIPS.

Applications are accepted 24 hours a day, every day, including weekends and holidays. The "License" system will automatically check the information in the application, comparing it with information from interdepartmental systems.

After payment of the fee, the application will be sent to the licensing authority. The decision to issue a license or refuse it will be automatically sent to the applicant's personal account.

If the licensing authority does not make a decision in time, the applicant has the right to proceed with the performance of the activity subject to licensing with the notification of the authority.

The conditions for refusal to issue a license are as indicated:

  • the applicant did not provide all the required documents;
  • the application contains false or incorrect information;
  • non-compliance with the requirements and conditions of licensing;
  • negative conclusion of inspections, studies, or scientific and technical expertise.

Refusal of licensing for other reasons is not allowed.

The President decided to speed up the digitalization of the licensing sector - in particular, to create the "License" system - in August 2020. The Ministry of Justice calculated that this would reduce corruption and business costs, as well as save more than 13 billion soums on printing forms.
 
Source: www.spot.uz

An extended meeting of the delegations of Uzbekistan and Afghanistan took place in Kabul. The Uzbek side was headed by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, and the Afghan side - by Deputy Head of the Interim Government of Afghanistan Abdul Gani Baradar.

During the meeting, the parties exchanged views on the agenda of Uzbek-Afghan cooperation in the field of investment, trade, transport and logistics, energy, agriculture, education and healthcare.

The Afghan side provided information on the measures taken to ensure security in the country, restore the economy and social sphere, as well as fight against corruption.

Particular attention was paid to enhancing cooperation on the construction of the trans-Afghan railway "Termez - Mazar-i-Sharif - Kabul - Peshawar". The parties discussed the practical aspects of the project implementation and expressed their readiness to jointly resolve all existing issues.

During the dialogue, opportunities were also considered for attracting companies from Uzbekistan to participate in joint projects for the construction and restoration of infrastructure, the development of agriculture and the extraction of natural resources. An agreement was reached on the development and approval in the near future of the Action Plan for the development of Uzbek-Afghan trade and economic cooperation and joint work on its implementation.

It was also agreed that the parties will soon develop mechanisms to increase the volume of mutual trade and increase transit through the territories of the two states.

During the meeting, the heads of the ministries and departments of the two countries, in turn, put forward proposals for the further development of cooperation in the context of individual areas and expressed their readiness to intensify bilateral contacts in order to accelerate the resolution of existing issues.

Following the event, the heads of delegations emphasized the priority of expanding bilateral partnerships within the discussed areas of cooperation and identified further steps to implement the agreements reached.

 

Representatives of the Embassy of Uzbekistan met with the Vice President of China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) Shi Yonghong, reports.

The parties discussed the implementation of the initiatives put forward at Uzbekistan – China meetings at various levels.

The leadership of China’s largest chamber of commerce, specializing in the development of industry and electrical engineering, expressed its readiness to develop interregional ties with Uzbekistan and support the implementation of new projects in the country at the expense of Chinese investors.

The parties agreed to distribute weekly digests in newspapers, magazines and on the websites of the Chamber of Commerce and Industry and the Ministry of Commerce, creating a new mechanism for informing about the development of industry and trade in Uzbekistan and new projects proposed for joint implementation.

 

Source: dunyo.info

In Tehran, a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, who arrived in the country as part of a visit by a delegation of government and business circles, with the President of the Islamic Republic of Iran Seyyed Ibrahim Raisi.

An exchange of views took place on a wide range of areas of Uzbek-Iranian cooperation with a focus on issues of trade, economic, investment, transport and logistics, cultural and humanitarian cooperation.

The existing prerequisites for increasing bilateral trade were noted. The parties expressed confidence in the availability of the potential and the necessary resources for a multiple increases in the volume of mutual trade in the near future and confirmed their mutual readiness to implement specific practical measures in this direction.

No less broad prospects, in the opinion of the parties, are available in the field of investment cooperation. This is evidenced by the steadily growing number of projects implemented jointly with Iranian investors, as well as the growing interest of Iranian business circles in the market and economic resources of Uzbekistan. It was announced that within the framework of the upcoming 14th meeting of the Uzbek-Iranian Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, it is planned to sign agreements on the implementation of a number of new investments projects, which was welcomed by both parties during the negotiations.

Tasks were set to deepen industrial cooperation between entrepreneurs of Uzbekistan and Iran. The priority areas for partnership in this area were the agro-industrial sector, water resources management, production of building materials, ferrous metallurgy, mechanical engineering, light industry and medicine. The prospects of establishing industrial cooperation between the subjects of special economic zones, in particular, between the FEZ "Chabahar", "Aras" (Iran) and the FEZ "Navoi" and "Angren" (Uzbekistan) were also emphasized. An agreement was reached on joint work on the preparation and approval of specific investment projects in the above sectors and the identification of their initiators from among the interested entrepreneurs of the two countries.

The parties welcomed the success achieved in bilateral negotiations held between the relevant ministries and departments of the two countries in the field of transport and logistics. Thus, during the visit of the interdepartmental delegation of Uzbekistan to Iran, which took place in January of this year, agreements were reached and a number of important agreements on cooperation in the direction of developing transport corridors and increasing the transit of goods through the territories of the two states were signed.

The parties noted the priority of continuing consistent and effective joint work in this direction in order to form new, more profitable trade routes connecting the two states and countries of the region, as well as to increase the efficiency of using the transport and transit potential of both countries.

In addition, the agenda of the talks included measures of bilateral cooperation within the framework of the participation of the two countries in international organizations, cooperation to ensure regional security, economic development and strengthening of transport links between the countries of the region, as well as issues related to the implementation of joint projects of regional importance.

Following the meeting, the parties expressed mutual commitment to the implementation of the agreements reached and an active dialogue aimed at deepening mutually beneficial cooperation between the two states.

Analysis of business activity in the context of the regions of the Republic of Uzbekistan is monthly calculated by CERR on the basis of operational data (monitoring in all regions of the republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UzEX).

The results of monitoring showed that the volume of tax revenues of the republic in the period from January 1 to January 31 of this year increased by 24.6% compared to the same period last year.

The significant growth of tax revenues was observed in Kashkadarya (by 55.3%), Bukhara (by 53.5%), Syrdarya (by 52.8%) regions, the Republic of Karakalpakstan (by 45.7%) and in Tashkent city (by 70%).

The growth of tax revenues was achieved through the creation of equal competitive conditions for business activity and by decreasing the regulatory and administrative burden, automation of procedures and simplifying procedures for compliance with tax legislation.

Revenues from custom duty during the analyzed period increased by 40.6%. The largest increase of revenues was observed in Andijan (2.7 times), Khorezm (2 times), Tashkent (71.6%), Bukhara (66.4%) regions and Tashkent city (4 times).

The increase in the volume of custom duty payments indicates the growth of foreign trade turnover. Machinery and equipment and industrial goods have a significant share in the structure of imports. This trend indicates the creation and modernization of production facilities, which in the long term will contribute to an economic growth.

According to the State Customs Committee, the volume of exports since the beginning of the year increased by 18.9% compared to the same period last year. The growth of export volumes of goods was noted in Kashkadarya (by 67%), Surkhandarya (by 65.5%), Samarkand (by 53.8%), Ferghana (by 46.6%), Namangan (by 46.1%) and Khorezm regions (by 31.0%).

The increase in the volume of Uzbekistan's exports is explained by the growing volume of exports of industrial goods, foodstuffs, chemicals and agro-food products. The volume of loans issued by commercial banks decreased by 0.9% from January 1 to January 31 this year compared to the same period of the previous year.

The growth in the number of issued credits was observed only in Andijan region (by 3.2 times), Samarkand region (by 95.8%) and Republic of Karakalpakstan (by 6%). In all other regions the issuance of credits decreased in comparison with the same period of last year.

According to the Central Bank of Uzbekistan, the decrease of this indicator can be explained by the issuance of large loans in the base period (January 2021) for a total of 1.52 trillion soums, which were not observed in January this year.

During this period, 7,013 new business entities were created, the largest number of which were registered in Samarkand (909), Andijan (756), Tashkent (590), Fergana (572) regions and Tashkent city (1,277).

Volume of deals at Uzbek Republican Commodity Exchange during analyzed period grew by 47.3%. Considerable growth of exchange activity is observed in Tashkent (by 89.4%), Namangan (by 71.4%), Khorezm (by 45.4%) provinces, Republic of Karakalpakstan (by 50.5%) and in Tashkent city (by 81.7%).

Growth of transactions volume in these regions is provided with growth of certain goods such as automobile gasoline, diesel fuel, rolled ferrous metal, cathode method, polyethylene, forage wheat, building materials, spirits and etc.

 

Source: review.uz

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By the end of this year, 7 new stations will be put into operation in the country - 6 thermal (TPP) and one solar photoelectric power plant with a total capacity of 1,474 MW.

In particular, in January, two new thermal power plants with a capacity of 270 MW were put into operation in the Bukhara region and 240 MW in the Tashkent region.

It is also planned to launch a solar photovoltaic plant with a capacity of 100 MW in the Samarkand region by April.

Two TPPs with a capacity of 230 and 240 MW in the Tashkent region and one TPP with a capacity of 174 MW in the Khorezm region will be put into operation in March, and a TPP with a capacity of 220 MW in the Syrdarya region - at the end of the year.

As a result, the total capacity of the energy system of Uzbekistan will exceed 16,000 MW.

 

Source: minenergy.uz

A meeting was held at the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan with a delegation of the Islamic Republic of Pakistan headed by First Deputy Minister of Commerce Muhammad Saleh Farooqi.

During the meeting, issues of deepening Uzbek-Pakistani cooperation in investment, trade, economic, transport and logistics areas were discussed.

In particular, measures were discussed to speed up the coordination of the draft Agreement on Preferential Trade between the two countries.

The issue of developing a "Roadmap" for the practical implementation of the terms of the Agreement on transit and trade, signed during the visit of the Prime Minister of the Islamic Republic of Pakistan to the Republic of Uzbekistan (July 15-16, 2021) was considered.

Further steps were discussed on the practical implementation of the project for the construction of the trans-Afghan railway corridor "Termez - Mazar-i-Sharif - Kabul - Peshawar".

An agreement was reached on organizing visits of Pakistani business delegations to Uzbekistan to deepen industrial cooperation.

Following the meeting, the parties agreed to maintain active interaction in all areas of cooperation considered.

During the visit of the Pakistani delegation, additional meetings are planned with the leadership of the Ministry of Transport, the Central Bank, the State Customs Committee, other ministries, departments, industry associations and commercial banks of Uzbekistan.

 

Source: mift.uz

JSC "Uzbekneftegaz" with its exposition takes part in the international exhibition "Dubai Expo-2020" in Dubai (UAE).

Members of the delegation of JSC "Uzbekneftegaz" provide the participants of the event with detailed information on the ongoing transformation processes in the Republic of Uzbekistan in the oil and gas industry, on the ongoing work to enter the international financial market, and on investment projects. In turn, issues of cooperation with representatives of foreign companies are discussed and agreements are reached.

As part of the project for the production of liquefied synthetic fuel based on purified methane of the Shurtan gas chemical complex, implemented by Uzbekneftegaz JSC, meetings were organized for the supply of products necessary for the needs of the Uzbekistan GTL LLC plant.

Also, a meeting was held with Clariant (Germany) to purchase a licensed catalyst required for the Fisher Tropsch reactor of the project of Uzbekistan GTL LLC. As a result of the meeting, a Memorandum of Understanding was signed.

At the meeting, representatives of Clariant expressed interest in another major project being implemented by Uzbekneftegaz JSC - “Expanding the production capacities of the Shurtan gas chemical complex”, the project provided for the supply of catalysts for equipment for the production of polypropylene and the advantages of Clariant catalysts were discussed before other catalysts.

After that, a meeting was held with the head of KPMG (USA) for the CIS countries Vasily Savin. The possibilities of reducing the harm caused to nature by carbon dioxide (SO2) at the enterprises of the industry of Uzbekneftegaz JSC, as well as the use of new technologies in this process, were discussed.

A representative of a foreign company expressed interest in cooperation with Uzbekneftegaz JSC on the implementation of standards that reduce the negative impact of industry (ESG) on the environment and social sphere.

Specialists of JSC "Uzbekneftegaz" expressed interest in cooperation with foreign consulting companies (BCG (USA)) in developing a strategy for the development of the oil and gas industry, as well as in implementing standards that reduce the negative impact of industry (ESG) on the environment and social sphere.

In addition, the possibility of producing an environmentally friendly polymer (polylactide) was discussed with the Sulzer company (Germany), which, during the implementation of small-tonnage projects, which fell on the ground as waste, disappear along with the soil.

An important aspect of the innovative technology proposed by Sulzer is that these types of polymers make it possible to efficiently process waste from renewable agriculture and obtain an environmentally friendly new type of high value-added polymer product. Specialists of JSC "Uzbekneftegaz" and "Sulzer" agreed on a mutual in-depth study of the project.

Representatives of Uzbekneftegaz JSC also informed about the ongoing work with foreign consulting companies (BCG) to develop a strategy for the development of the oil and gas industry, in particular, to reduce the industrial impact on the environment, as well as plans to develop ESG standards.

As part of the exhibition, Uzbekistan GTL LLC and Himma Middle East ZFE (Dubai) signed an agreement for the provision of services for safe shutdown, control, automatic control of emergency shutdown systems for technological systems.

In addition, a meeting was held with the director of the Dubai Expo 2020 pavilion, a representative of the Ministry of Energy of the Republic of Turkmenistan Maksat Borzhakov. During familiarization with the exposition of Uzbekneftegaz JSC, they were provided with detailed information about the GTL project. During the week, an agreement was also reached in the pavilion of Turkmenistan to hold a meeting with representatives of the Turkmennebit State Concern.

Representatives of Uzbekistan GTL LLC met with representatives of foreign companies DGA Iron ore Trading and REX Resources FZE. They showed interest in the products of the Uzbekistan GTL plant and offered their services for the possible export of products to a number of foreign countries, in particular to Iran, the UAE and other countries.

The possibilities of localizing drill pipes in Uzbekistan were discussed with representatives of Petro Pipe (UAE). They were provided with information on the needs of JSC "Uzbekneftegaz" in pipe products. A preliminary agreement was reached with the Petro Pipe company on organizing the production of high-pressure tanks in the Kashkadarya region.

This company is recommended by Sasol (South Africa), which is the licensor of the GTL technology, according to which Himma Middle East ZFE (Dubai) has been providing related services for a long time.

 

Source: www.ung.uz

The relevant resolution of the Government approved the administrative regulations on the provision of public services to citizens and legal entities of Uzbekistan on the privatization of land plots on the basis of permanent use (possession), lease and inherited lifelong ownership.

According to the administrative regulations, land privatization services are provided through the Center of Public Services or the Single interactive public services portal (my.gov.uz).

The application, power of attorney, the decision on privatization of the land plot (if the applicant is a legal entity) are attached.

The application is sent to the information system "Land Privatization" for consideration by the district (city) construction department, cadastral branch. The cadastral branch checks the information within 5 working days from the date of receipt of the application.

The district (city) construction department within 3 working days considers the compliance of the location of the land plot with the approved documents on urban planning and development of the land area (settlement or the area between them).

In the information system "Land Privatization" on the results of the application (agreed or rejected) a notification is formed and sent to the applicant.

Accordingly, the applicant will make a land purchase payment within 10 working days. When the payment is made on time, a state order granting the right of ownership to the land is formed.

On the basis of the order, the Cadastre Office within 2 working days registers the right to land in the state and sends an extract from it to the applicant or the Center of Public Services.

A fee of 10% of the BCV (27,000 soums) is charged for the provision of public services. The fee for services provided through the Single interactive public services portal is 24,300 soums.

Confirmation of payment of fees and purchase price of the privatized land plot is made through the information system "Land Privatization".

The regulation does not apply to land plots allocated to participants of small industrial, youth industrial and business zones.

 

Source: uza.uz

On February 15 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held talks via videoconference with the Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala.

During the conversation, the current state of the process of Uzbekistan's accession to the WTO was discussed, as well as urgent tasks for further advancing negotiations in this direction, outlined in the new "Roadmap" of events for 2022, developed jointly with the Secretariat of the Organization in order to intensify the negotiation process.

The key topic of the negotiations was the issues of preparation
for the upcoming 5th meeting of the Working Group on Uzbekistan's accession to the WTO. The progress of the elaboration of new documents submitted by Uzbekistan to the WTO Secretariat for the meeting, as well as other issues of a substantive and organizational nature, was considered.

The WTO leadership expressed its commitment to providing comprehensive support to Uzbekistan in the process of joining the Organization and intensifying bilateral cooperation for the prompt resolution of emerging issues. In this vein, N. Okonjo-Iweala voiced the readiness of the WTO Secretariat to expand technical assistance to Uzbekistan to support bilateral and multilateral negotiations with the member countries of the Organization.

The Uzbek side emphasized the priority importance given in Uzbekistan to the issue of early accession to the WTO. In particular, it was noted that this issue is one of the key tasks outlined in the Development Strategy of New Uzbekistan for 2022-2026.

Following the meeting, the parties agreed to maintain a close and regular dialogue for accelerated progress in resolving the issues discussed.

 

Source: mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade S. Umurzakov met with the rector of the Moscow School of Management "Skolkovo" Y. Levin.

During the meeting, the parties discussed promising areas of cooperation in the field of education and professional training.

In particular, the dialogue touched upon the initiative to create a joint educational ecosystem in Uzbekistan to raise the professional training of managerial personnel to a qualitatively new level.

Since the introduction of this educational ecosystem is focused not only on training the staff of state structures but also on top managers of private businesses, the parties also considered the prospects for establishing cooperation in training the teaching staff of educational institutions of Uzbekistan in the field of business management.

The relevance of interaction in the development and implementation of training programs for representatives of the business community of Uzbekistan using the practice of the active method of teaching in groups, providing for the solution of project tasks, taking into account the local market conditions, was noted.

The practical aspects of creating a specialized "Training Center" under the Ministry of Investments and Foreign Trade were also considered. The purpose of its creation is to improve the skills of specialists in foreign trade and investment activities with the organization of training courses for employees of various levels with subsequent monitoring of the effectiveness of their professional activities. The contingent of listeners will consist of both employees of state structures, including heads of local authorities, and large private companies of the Republic of Uzbekistan. It is planned to organize training courses for advanced training, both within the framework of short-term and medium-term programs in such areas as investment management and project cycle management, administrative and legal support of projects,

Partnership with the Moscow School of Management Skolkovo will allow developing and launching an educational system that will combine the level of strategic and operational management, as well as provide access to a wide range of knowledge and competencies to improve the efficiency of foreign economic activity.

As a result of the meeting, a Memorandum of Cooperation in the field of training and retraining of specialists in international economic relations, investment, and foreign trade was signed. The document was signed by the rector of the School Y. Levin and the Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Kh. Teshabaev.

According to the terms of the document, Skolkovo will act as a partner in projects to improve the skills of employees of state institutions, as well as public and private companies in Uzbekistan. It is planned to conduct on-site internships, create special educational modules and conduct events for the exchange of experience.

 

Source:mift.uz

In January-December 2021, 8399.9 billion investments in fixed assets were disbursed in the metallurgical industry as part of the manufacturing industry.The volume of these investments amounted to 3.4% of the total volume of investments in fixed capital in the republic.

 

Source: stat.uz

As of February 1, 2022, the number of enterprises and organizations with foreign capital registered in the republic is 13.8 thousand, of which 13.4 thousand carry out their activities. The number of operating enterprises with foreign capital increased by 1,474 compared to the corresponding period last year.

When considering the number of enterprises with foreign capital by state:

Russia - 2 313

China - 1948

Turkey - 1 912

Kazakhstan - 1071

Korea - 900

The number of newly created enterprises with the participation of foreign capital in January 2022 by country:

Turkey - 31

Russia - 23

China - 12

Korea - 9

Kazakhstan - 8

 

Source: stat.uz

The government has developed measures to accelerate the development of the building materials industry in the Bukhara region.
The authorities intend to attract investments in the processing of local minerals, the production and export of competitive products using the cluster method.
The following tasks were set before the Ministry of Investments and Foreign Trade, the Khokimiyat of Bukhara region and the Association "Uzstroymateriallari":
 
extraction of cement, dolomite, gypsum and other raw materials, production of new types of building materials;
 
development of marble and granite deposits, production of modern decorative facing stones, including mosaics, production of marble and granite slabs;
 
a complete study of the graphite deposit, its industrial extraction and deep processing, organization of the production of graphite electrodes, graphite rods for fast-charging batteries and spare parts for the modern electrical industry;
 
extraction of the mineral dye ocher and the production of finished products from it - dyes, mineral fillers and other products;
 
development of sand-gravel deposits, construction of screening and crushing facilities and organization of production of finished reinforced concrete products, asphalt and road-building materials from inert materials (sand, crushed stone).
The government also approved the lists of subsoil plots in the Bukhara region, including minerals, which will be put up for auction.
In addition, the authorities have compiled address lists of investment projects for 2022-2023 in the production of building materials.
In November 2021, the Gijduvon free economic zone was expanded with unused agricultural land. It is planned to organize the production of building materials in these territories.
 

On February 12 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting via videoconference on expanding multifaceted cooperation with the People's Republic of China (PRC).

The meeting was attended by heads of ministries, departments, industry associations, commercial banks, local authorities of the Republic of Karakalpakstan, and regions. The leadership of the diplomatic mission and consulates-general of the Republic of Uzbekistan in China also participated.

During the meeting, urgent tasks were considered to further strengthen trade, economic, investment and industrial cooperation, intensify interregional dialogue and exchange of innovative experience between Uzbekistan and China.

Measures were discussed for the qualitative and timely implementation of bilateral agreements reached during the visit of the President of the Republic of Uzbekistan to China in February this year.

The heads of ministries and departments were tasked with developing new proposals for using the industrial and innovative potential of China in the development of the national economy. In the near future, targeted Roadmaps will be developed to deepen investment cooperation and develop industrial cooperation, including through the introduction of advanced Chinese industrial technologies and innovative developments in the context of industries. It was also instructed to carry out work to attract leading Chinese companies and industrial holdings to participate in the work of the Tashkent International Investment Forum in order to discuss the potential of priority sectors for the economy of Uzbekistan in terms of establishing industrial cooperation with Chinese manufacturers.

Special attention was paid to further steps to increase the volume of mutual trade. It was instructed to analyze the structure of Chinese imports and develop proposals for increasing the supply of high-quality and competitive domestic products that are in demand on the Chinese market. The management of the Agency for Technical Regulation was instructed to develop a separate "Roadmap" to expand exports to China by harmonizing technical regulation standards and eliminating existing trade barriers. It was also instructed to pay attention to the development of trade with China through the creation of special online trading platforms for retail trade.

The importance of intensifying cooperation in the transport and logistics sector was also noted. The heads of relevant ministries and departments were instructed to organize bilateral working groups with colleagues from the PRC in order to identify and solve problems related to cargo transportation between the two countries, as well as to ensure the smooth delivery of supplied goods.

Separate instructions were given in the field of deepening interregional cooperation: the leaders of the regions, through direct negotiations with Chinese counterparts, will promptly draw up targeted Roadmaps for investment, industrial, trade, innovation, cultural and humanitarian cooperation with economically developed provinces and major cities of the PRC.

No less attention was paid to establishing cooperation in the field of innovation - the leadership of the Agency for Strategic Development and the Agency for the Promotion of Foreign Investments was tasked with developing an action plan to attract advanced Chinese experience and implement innovative projects in the IT sector, healthcare, education, agriculture and other directions.

Also on the agenda of the meeting were issues related to preparations for events planned under the chairmanship of Uzbekistan in the Shanghai Cooperation Organization, including the organization of the upcoming SCO summit and the establishment of the industrial zone "Uzbekistan - SCO" in Samarkand. Topical tasks of an organizational and substantive nature, as well as the current state of elaboration of bilateral documents planned for signing as part of the planned events, were considered.

As a result of the meeting, the responsible managers were given additional instructions as part of the fulfillment of the tasks assigned to them.

 

Source: mift.uz

In Brussels, within the framework of the visit of the government delegation of Uzbekistan, a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and the Executive Vice President of the European Commission Valdis Dombrovskis.

During the meeting, the current state and prospects for further strengthening the strategic relations between Uzbekistan and the European Union were discussed.

The dynamic nature of the development of bilateral relations in key areas and active dialogue at various levels were emphasized, which reflects the mutual intentions of the parties to strengthen and expand cooperation.

Issues related to holding bilateral events were considered, including the EU-Central Asia Summit, the EU-Central Asia Ministerial Conference, as well as the visit of high-level EU representatives to Uzbekistan. An agreement was reached to create a joint working group to prepare for these events and fill their agenda with practical content. Also, the European side was invited to take part in the Tashkent International Investment Forum, which will be held in March this year.

The course of trade, economic and investment cooperation was discussed. At the end of 2021, the volume of trade between Uzbekistan and the EU countries amounted to $3.9 billion, while there was an increase in exports from Uzbekistan of equipment, as well as products of the textile, chemical and leather and footwear industries. Germany, Lithuania and Italy became the country's largest trading partners in the EU. The parties agreed on the need to intensify joint efforts to increase the volume of mutual trade through the use of additional tools.

Thus, in particular, the importance of full use of the opportunities provided to Uzbekistan by obtaining the status of a beneficiary of the EU Generalized System of Preferences (“GSP+”), due to which the export of Uzbek goods to the EU countries in 2021 increased by 30 percent, was noted. The Uzbek side expressed its commitment to maintaining close cooperation with the EU Delegation in Uzbekistan and relevant EU institutions for the joint implementation of initiatives on labor protection and human rights in the country, as well as the effective implementation of the provisions of all 27 international conventions that were ratified by Uzbekistan in the process of obtaining this status.

The course of joint work on agreeing on the text of the Enhanced Partnership and Cooperation Agreement with the EU (EPCA) was studied. An agreement was reached on the intensification of the negotiation process and the organization of the next round of negotiations in Tashkent.

Issues of interaction in matters related to Uzbekistan's accession to the World Trade Organization (WTO) were discussed. The parties agreed to speed up the process of bilateral negotiations, as well as to work out the possibilities of organizing the 5th meeting of the Working Group on Uzbekistan's accession to the WTO in Geneva (Switzerland).

Issues of financial and technical cooperation were discussed separately. The parties identified further actions for the practical implementation of the Indicative Cooperation Program with Uzbekistan for 2021-2024, which provides for the allocation of grants from the EU for 83 million euros for the implementation of significant projects to promote reforms, protect human rights and support civil society organizations in Uzbekistan.

The active nature of the development of cooperation with the European Investment Bank (EIB) was emphasized. Currently, several projects in the field of heat and water supply, healthcare, business support and development of the Aral Sea region are under consideration.

Issues related to the activities of the Human Security Trust Fund were also addressed. The European side was thanked for the financial assistance provided to the activities of the Fund and the implementation of socially oriented projects in the region. It should be noted that the EU is currently one of the Fund's largest donors.

Following the meeting, the parties expressed their mutual readiness for the consistent expansion and strengthening of bilateral partnership and close cooperation to solve common problems.

 

Source: mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with the Minister of Agriculture and Forestry of the Republic of Turkey Bekir Pakdemirli, who is on an official visit to the country.

During the meeting, the prospects for intensifying bilateral cooperation in the field of agriculture and forestry were discussed, bearing in mind the implementation of joint projects and programs. The Turkish side emphasized the significant untapped potential for developing cooperation in this direction, as well as the constructive nature of the meetings and negotiations with relevant ministries and departments held during the visit of the Turkish delegation to Uzbekistan.

It is worth noting that on February 7 this year, the 3rd meeting of the Joint Working Group in the field of agriculture was held in Tashkent, during which the parties exchanged proposals for further practical cooperation in 14 priority areas, and on February 9, the corresponding "Road Map" was signed including specific joint initiatives and activities.

The parties noted the prospects of introducing Turkey's successful experience in the field of agriculture in Uzbekistan and considered the possibility of developing and approving a joint declaration on technology transfer and exchange of experience in this area, which will include measures to introduce advanced Turkish developments in the agricultural sector of the country, train local specialists and improving the skills of farmers.

The parties also expressed their readiness to provide practical assistance in establishing direct ties between entrepreneurs of the two countries in the field of agriculture. In this vein, the relevance of the Uzbek-Turkish business forum of agricultural entrepreneurs currently taking place in Uzbekistan, in which representatives of the largest companies and enterprises of the two countries take part, was emphasized.

As a result of the meeting, further actions were agreed to promote and implement the discussed areas of cooperation.

 

Source: mift.uz

In Tashkent, within the framework of the visit of the delegation of government and business circles of the Republic of Latvia to the Republic of Uzbekistan, the Uzbek-Latvian business forum was held. The event brought together more than 100 representatives of the business circles of Latvia and Uzbekistan. Also from the Uzbek side, the heads of many ministries, departments, industry associations and commercial banks took part in it.
During the opening ceremony of the forum, the heads of delegations - Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov and Minister of Foreign Affairs of the Republic of Latvia E.Rinkevics addressed the participants.
The heads of the delegations of the two countries outlined the commitment of the two countries to intensify interaction to create the most favorable conditions for attracting Latvian and Uzbek entrepreneurs and investors to practical cooperation, meaning the implementation of mutually beneficial projects in promising industries, as well as increasing the volume of mutual trade.
It was noted that Uzbekistan pays great attention to increasing the role of the private sector in the country's economy, in connection with which practical measures are being actively developed and implemented to improve the investment climate and business environment, reduce the tax burden on business, strengthen mechanisms for the legal protection of private property and foreign capital, as well as identifying new untapped economic reserves in the context of districts and cities of each region of the country to ensure their accelerated and balanced development.
Priority areas for establishing business partnerships between entrepreneurs of the two countries were listed. Among them are the textile and electrical industries, pharmaceuticals, biomedicine, the IT sector and other industries. The heads of the relevant ministries and industry associations, in the format of presentations, revealed in detail the investment, industrial and trade potential of each industry, and also spoke about the available mechanisms to support and stimulate the attraction of foreign investment and the implementation of projects with the participation of foreign capital. Also, perspective project proposals, developed in a targeted manner for further study with interested Latvian investors and entrepreneurs, were presented to the attention of the forum participants.
At the end of the event, the heads of delegations of the two countries called on the business community to actively interact and establish a constructive dialogue to develop new "growth points" for bilateral economic partnership.
As a result of the forum, the Minutes of the second meeting of the Uzbek-Latvian Business Council and the Memorandum of Cooperation in the field of development of information and communication technologies and innovations between "IT-Park" (Uzbekistan) and the Latvian company "ShipleArt" was signed, which provides for raising funding for the implementation of start-up projects in Uzbekistan.

 

Source: mift.uz

On February 9 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with the Minister of Foreign Affairs of the Republic of Latvia Edgars Rinkevics, who is in Uzbekistan as part of a visit by a delegation of Latvian government and business circles.
During the meeting, topical issues of bilateral cooperation were considered, including in the areas of investment, trade, transport and logistics, as well as in other priority areas.
The growing interest of Latvian enterprises in business development in Uzbekistan was emphasized: for example, over the past five years, the number of enterprises in the country with the participation of Latvian capital has doubled. Mutual readiness for active cooperation was expressed to support the investment activities of the Latvian business circles in the implementation of projects in Uzbekistan.
Significant prospects for expanding trade cooperation were noted - Latvia is one of the largest trading partners of Uzbekistan among the countries of the European Union. Over the past five years, trade between the two countries has almost doubled. The parties welcomed the opening of a trading house of Uzbekistan in Riga in September 2021 and expressed the hope that this step will give an additional impetus to deepening trade relations between the two countries. In this vein, an agreement was reached to hold a joint industry exhibition and business forum in Latvia soon to establish direct ties between entrepreneurs of the two countries and explore opportunities for expanding investment and trade cooperation.
Issues of deepening cooperation in the transport and logistics sector were considered separately. The parties welcomed the holding of the 1st meeting of the Uzbek-Latvian Working Group on Transport on February 7 this year, which resulted in the signing of the Protocol of Understanding between the Ministries of Transport of the two countries and the Roadmap for the development of practical cooperation in the field of transport and logistics between Uzbekistan and Latvia. In this vein, opportunities were noted for expanding the volume of exports of products of Uzbek manufacturers to the EU countries through the use of the logistics infrastructure of Latvian ports.
Emphasizing a wide range of areas of bilateral cooperation, the meeting participants noted the relevance of developing a dialogue on the platform of the Uzbek-Latvian Intergovernmental Commission on Economic, Industrial, Scientific and Technical Cooperation and discussed the issue of holding its next meeting in the second half of this year.
Also during the conversation, aspects of interaction in other areas of mutual interest, such as digital technologies, innovations and start-ups, forestry and ecotourism, were touched upon.
As a result of the meeting, an agreement was reached on the mutual promotion of the discussed areas of cooperation and active interaction in the implementation of joint projects and initiatives.

 

Source: mift.uz

After years of economic stagnation and isolation, Uzbekistan launched a critical reform process in 2017 to build a competitive and inclusive market economy. Key reforms included exchange rate liberalization, reduction of import tariffs, price liberalization of selected goods and services, and establishment of the Anti-Monopoly Committee.

These initial pro-market efforts were an important step forward in developing the private sector and creating more and better jobs. But there is much more to do.

The 2021 World Bank Country Economic Memorandum for Uzbekistan highlights several areas where continued effort is needed. Let’s take a closer look.

Competition is still perceived as weak. According to the Bertelsmann Transformation Index, the perception of market competition in Uzbekistan improved from 2016 to 2020, but today still lags behind several other countries in the Europe and Central Asia region, such as Tajikistan, Ukraine, Poland, and Russia.

Entrepreneurship remains limited. The entry density of new firms into the formal private sector – a standard proxy for entrepreneurship – has improved over the past few years, but remains well below the regional average, and is lower than predicted by Uzbekistan’s income per capita.

Formal private firms do not grow in size as they age. Analysis based on data from the 2019 World Bank Enterprise Surveys indicates that formal private firms, especially in manufacturing and service sectors, have not grown as quickly in comparison to those in other major transition economies such as Vietnam and Russia. In addition, these firms tend to remain small over time: Uzbek formal private firms up to 10 years old employ, on average, 20 workers compared with 33.6 workers in similar firms in Vietnam. This gap of 13.6 employees grows wider (to 78.6 employees) for firms that are more than 20 years old.

Decreasing labor productivity. The same micro-level analysis showed that labor productivity (defined as sales revenue per worker) in the formal private sector has decreased continuously over the past decade, with -1.2 percent annual growth during 2010–13 and -6.7 percent during 2016–19. These recent decreases reveal low performance in other entrepreneurship domains, such as insufficient trade exposure, low innovation intensity, and weak firm capabilities.

All of this points to a common interpretation: the stagnant performance of the private sector reflects a distorted business environment that does not reward firms with growth potential and impedes resource allocation towards more efficient firms.

There are multiple reasons behind this. One important factor is limited competition in product markets, a typical challenge for transition economies. Indeed, discriminatory interventions and regulations still keep the playing field uneven, especially in markets where state-owned enterprises compete against private firms.

Moreover, data from the 2019 World Bank Enterprise Surveys reveals other business environment barriers hindering private sector development – including tax rates, informal sector practices, and access to electricity and finance (see graph below.)

Graph on Top 10 Business Environment Constraints

Source: Enterprise Surveys. Uzbekistan 2019 Country Profile (World Bank Group)

This evidence reinforces the need for a comprehensive policy agenda to streamline the business environment and boost private sector development in Uzbekistan. Seven  pressing reforms and policies to focus on are:

Continued fostering of competition. Creating a conducive environment for private firms to compete is as important as advancing privatization and restructuring of state-owned enterprises. It is crucial, therefore, to continue reducing the distortive discriminatory interventions and regulations that tilt the playing field, especially in markets where state-owned enterprises compete against private firms. Strengthening competitive neutrality is a must, as well as controlling state aid to avoid favoritism and minimize distortions on competition.

Ensuring the tax system supports firm growth. The tax system needs to stimulate firm growth, by balancing tax rates and administrative burden. A tax system should increase rates gradually with the size of firms, so as not to discourage growth, and reduce marginal rates to encourage investment and employment in growing and large companies.

Mitigating practices from the informal sector. To limit the size of the informal sector and redirect resources to the most efficient firms, government policies need to: improve labor market flexibility, reform social protection, rationalize the tax system, and improve the regulatory framework and the justice system. Plus, conditions must exist to create good formal jobs so informality regresses over time.

Improving access to finance for micro, small and medium enterprises. This can be achieved by fostering competition in the banking sector, reducing state ownership in commercial banking, further lowering directed state lending, improving bank governance, and boosting human capital in the banking system. And by continuing to strengthen institutions to safeguard fast credit growth and ensure financial resources are allocated to the most productive projects.

Advancing electricity sector reforms. This is critical to updating aging infrastructure and improving service quality and reliability. The Uzbek government is implementing relevant sector reforms to transition to market-based mechanisms that enhance efficiency and update aging infrastructure. Ensuring effective regulation of competition and pricing is also essential.

Introducing active policies to support entrepreneurship. While implementing the above-mentioned reforms, introducing active policies that address the current weaknesses hindering entrepreneurship growth is crucial. Business support measures should follow two important principles. First, prioritize firms’ growth potential and performance, not firm survival. Second, combine financial with non financial instruments to fortify firm capabilities, so firms are able to manage production, recognize new opportunities in the market, take the risk of developing new projects, adopt new technologies, and expand activities.

Closing the skills gaps to cater for private sector growth. Before the COVID-19 crisis, many enterprises had reported inadequate skills as a significant constraint to business development in Uzbekistan. It is estimated that the pandemic has resulted in a learning loss equivalent to two years of schooling for children, which impacts the potential productivity of the future labor force. As such, skills development in the education sector is an area for urgent action.

Uzbekistan faces the complex challenge of nurturing the private sector while distancing from the legacy of a centrally planned economy. Making private firms the backbone of the country's business and economic future is the only sustainable way forward. This will require the coordination of all stakeholders and public institutions, building broad consensus, and creating a robust framework to monitor coordination and implementation of reforms.

Unleashing the full potential of the private sector and entrepreneurship is critical to Uzbekistan achieving its 2030 development goals and improving the lives of all its people. In this context, the upcoming Country Partnership Framework for Uzbekistan will put private sector development as one of the main areas of focus over the next five years.


Source: blogs.worldbank.org

On February 7, 2022, the Minister of Energy of Uzbekistan Alisher Sultanov held talks in Tashkent with a delegation of Volkswagen Group Rus LLC, headed by CEO Stefan Mecha.

During the talks, the foreign side was provided with information on plans to develop the production of Euro-5 motor fuel in Uzbekistan in the coming years, including gasoline and diesel.

In particular, it was noted that in December 2021, a GTL plant for the production of synthetic liquid fuel based on purified methane of the Shurtan gas chemical complex was launched in Uzbekistan, which will significantly diversify and increase the volume of diesel fuel that meets the quality of the Euro-5 standard. The design capacity of the enterprise is 307.3 thousand tons of kerosene, 724.6 thousand tons of diesel fuel, 437.3 thousand tons of naphtha, 53.4 thousand tons of liquefied gas per year.

In addition, a project is being implemented to modernize and reconstruct the Bukhara oil refinery, as a result of which it is planned to produce 1.75 million tons of Euro-5 oil products from 2025.

Of great interest on the part of Volkswagen Group, Rus LLC was the development in Uzbekistan of such a direction as the production of electric vehicles. It was noted that the import of electric vehicles is currently not subject to excise and customs duties in Uzbekistan. Gas stations for electric cars operate on the basis of a number of filling stations, and private business is developing in this direction.

The foreign delegation was also familiarized with the development of renewable energy (RES) in the republic, whose share in the total energy balance by 2030 should reach at least 25%. In 2021, the first solar power plant with a capacity of 100 MW was put into operation, and the second is expected to be commissioned in March 2022. In 2024, it is planned to commission renewable energy facilities with a total capacity of 2.2 GW, as well as hydroelectric power plants with a capacity of 326 MW.

The parties during the meeting exchanged views on the possibilities of implementing joint projects, agreed on a detailed consideration of promising proposals.

 

minenergy.uz

On February 7 this year, a working group led by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and consisting of the heads of ministries, departments and commercial banks left for the Republic of Karakalpakstan to study the current state of socio-economic development and the implementation of investment and infrastructure projects.

During the trip, targeted meetings were held with entrepreneurs and initiators of investment projects to identify existing problems and develop effective algorithms for solving them. An analysis of the current state of infrastructure and social facilities was also carried out, following which responsible managers were instructed to develop a comprehensive strategy for further operation for each facility, providing for self-sufficiency and wide coverage of the population with social services.

Further steps to enhance investment and industrial activity in the region were discussed - responsible managers were instructed to develop systemic measures aimed at creating optimal conditions for the formation of value chains based on the existing raw material potential and industrial capacities. In this vein, the importance of identifying and using "points of economic growth" in the development of project proposals was emphasized, which will make it possible to achieve a significant economic effect from attracted investments.

It was instructed to take measures for the active practical application of the new system for stimulating investment and foreign trade activities, the effective organization of the activities of "project groups" and the Councils of Entrepreneurs created in the regions in order to identify untapped economic reserves and develop new investment projects in promising industries.

At the same time, the need was noted for creating conditions for employment and providing a stable source of income for the local population, including through the establishment of industrial cooperation based on work from home method.

The heads of relevant ministries, departments, commercial banks and local authorities were given targeted instructions aimed at boosting entrepreneurial activity, developing intersectoral cooperation, building up export potential and creating additional jobs.

 

mift.uz

Fulfilling one of the most important tasks to increase hydrocarbon production, Uzbekneftegaz closely cooperates with a number of foreign companies, including companies from the Russian Federation.

The result of such joint efforts is the ANDIJANPETRO joint venture, established in the Andijan region jointly by Uzbekneftegaz JSC and Zarubezhneft JSC (Russia).

Since December 2019, the joint venture, using modern technologies, has been working to increase oil production at the Khartoum, East Khartoum and South Alamyshyk fields that have been developed for a long time.

Since the beginning of the operatorship, US$10.7 million has been disbursed (under the project US$13.9 million), including US$3.1 million in 2021.

In 2021, as a result of the implementation of 43 geological and technical activities, the daily production of 27.3 tons of crude oil and 3.9 thousand tons of additional oil was achieved.

As part of the investment project, a new line heater was installed at the Yuzhny Alamyshik oil treatment facility, oil gathering collectors were replaced, and a high-pressure water pipeline with a total length of 19.6 km was laid.

A new chemical-analytical laboratory was also built and put into operation, which received the approval of technical competence from the accreditation center of the Republic of Uzbekistan.

In addition, work was completed on the installation of telemechanics system equipment at 20 wells of the Yuzhny Alamyshik field. Start-up and adjustment works are currently underway. This year, it is planned to expand telemechanics at 20 wells of the Khartoum and East Khartoum fields.

In addition, as part of investment projects, energy-saving equipment is being introduced at production facilities to reduce costs. For this purpose, pilot field tests of 2 units were successfully carried out. hydraulic drives of rod pumps.

Based on the results of the pilot surveys, it is planned to introduce 6 units. hydraulic drives, which will allow achieving a reduction in operating costs for maintenance up to 80% per well. Also, when using a hydraulic drive, a reduction in electricity consumption of up to 50% is achieved.

 

www.uzdaily.uz

On February 2 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held talks via videoconference with the President of the Asian Development Bank Masatsugu Asakawa, during which issues of bilateral cooperation and implementation of joint projects were discussed.

It was noted that ADB cooperation with Uzbekistan is multifaceted and long-term, and the portfolio of projects in the country, worth more than $10 billion, is the largest among all other development partners. While providing financing for socially and economically significant projects, the Bank also provides technical and advisory assistance in the implementation of program reforms in Uzbekistan.

In this vein, ways of further cooperation on the implementation of the goals and objectives of the ADB Partnership Strategy with Uzbekistan for 2019-2023, which correlate with the Uzbekistan Development Strategy for 2022-2026 adopted this year, were discussed. Common priorities, in particular, are supporting the private sector, promoting regional cooperation, reducing inequality by promoting inclusive growth and other important areas.

The current status of 29 projects implemented jointly with ADB with a total value of $5 billion in the areas of infrastructure development, energy, housing and communal services, healthcare and agriculture was considered. As part of the ADB Country Operations Business Plan for 2022-2024, Uzbekistan plans to implement 27 projects worth $2.8 billion, of which 3 projects worth $524 million will be implemented in 2022. The parties agreed on close cooperation to accelerate the implementation of approved initiatives and the coordination of projects under consideration.

Steps were outlined to further improve the efficiency of preparation and implementation of joint projects, in the context of which the mechanisms for interaction between ADB and the Agency for International Cooperation and Development under the Ministry of Investment and Foreign Trade, which is designed to be the main coordinating link at all stages of the project cycle: prioritization, design, evaluation project, procurement and practical implementation. An agreement was reached to provide technical assistance from the ADB by sending experts to Uzbekistan to advise on further capacity building and institutional development of the Agency.

Special attention was paid to cooperation in promoting projects implemented in the country on the basis of public-private partnership (PPP). The progress made in the preparation and implementation of large-scale PPP projects in the energy sector together with ADB was emphasized: a separate ADB Solar Energy Development Program in Uzbekistan with a total capacity of 1 GW is currently being actively implemented. The parties noted the significant potential for expanding cooperation in this area and expressed their readiness to explore opportunities for expanding the introduction of PPP tools in the areas of water supply, modernization of electricity distribution networks, healthcare and development of transport infrastructure.

The issues of expanding cooperation with the ADB in matters of financial support for private sector projects and commercial banks in Uzbekistan, implementing road infrastructure expansion projects, developing the system of secondary and vocational education by improving curricula in the fields of technology, engineering and mathematics, increasing employment, modernizing the health sector, empowering women and promoting women's and youth entrepreneurship.

During the dialogue, the Bank's management was invited to participate in the work of the Tashkent International Investment Forum and related events.

As a result of the talks, agreements were reached to intensify cooperation in a number of areas that are priorities for both sides.

 

mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with a delegation of the Turkish company "OYAK" headed by its General Director Suleyman Savash Erdem.

During the meeting, the prospects for organizing the activities of the Turkish investor in Uzbekistan were discussed, referring to the implementation of projects to create high-tech industrial production in the country.

It should be noted that during the visit to Uzbekistan, representatives of the company held targeted negotiations with the leadership of Uzkimyosanoat JSC, the State Assets Management Agency and the Tashkent city administration. The talks made it possible to study the prerequisites for establishing investment activities of Turkish investors in promising sectors and to exchange proposals for further cooperation.

During the dialogue at the MIFT, the Turkish side expressed interest in further cooperation with the aim of a substantive discussion of specific projects and the development of practical aspects and conditions for their implementation. In particular, it was announced that the company's management is exploring the possibility of creating in Uzbekistan a cluster production of agricultural chemicals and plant protection products, enterprises for the production of melamine and carbon black, as well as implementing projects in the automotive industry.

The prospects for the participation of OYAK in the privatization of state shares in large chemical enterprises of Uzbekistan were also considered.

The Uzbek side expressed readiness to support Turkish investors in the implementation of their business initiatives and provide comprehensive practical assistance in resolving existing issues. As soon as possible, the Turkish side will be sent specific project proposals and the necessary information about the investment and industrial potential of the sectors in question.

As a result of the meeting, further steps were outlined to develop promising areas of cooperation and specific projects in the designated sectors.

For reference: OYAK was founded in 1961 and since its inception has achieved significant success in implementing projects in the automotive, agriculture, chemical industries, as well as in the construction, oil and gas and financial sectors.

 

mift.uz

On February 1 this year, in Moscow, a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and the Minister of Industry and Trade of the Russian Federation D. Manturov.

The constructive dialogue, which has acquired a regular character in recent years, made it possible to substantively discuss a wide range of issues of bilateral cooperation in the investment, industrial, trade and economic spheres.

The progress of the implementation of the agreements reached during the meeting of the Heads of the two states and the joint events preceding the meeting held in November last year was considered, and this is a package of agreements that includes 143 investment projects worth about $7.5 billion and 455 trade agreements worth $1. 6 billion dollars. The parties discussed the current status of the implementation of projects and contracts and agreed to develop joint practical measures to promote them.

The course of activity of the “Project Office”, created between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Ministry of Industry and Trade of the Russian Federation, was studied, meaning both support for the implementation of already agreed projects, and the development of new areas of investment cooperation in such promising industries as metallurgy, mechanical engineering and the chemical industry. It was agreed that the parties will speed up the consideration of projects under development, as well as develop and approve individual Roadmaps for their high-quality and timely implementation, including specific mechanisms and deadlines for their implementation.

Special attention was paid to the issues of interaction in the pharmaceutical industry, which is especially important in view of the high level of Russian technologies in this area and the favorable conditions created in Uzbekistan for the activities of foreign companies in the pharmaceutical sector. An agreement was reached to intensify joint work in this direction with the involvement of relevant ministries and scientific and medical centers of the two countries.

Further steps have been outlined to deepen cooperation between the regions of Russia and Uzbekistan, bearing in mind, first of all, the expansion of partnership in the investment and trade and economic spheres. It was announced that this year it is planned to organize business missions of the leaders of all 14 regions of Uzbekistan in 42 constituent entities of the Russian Federation, as well as to conduct regular online negotiations in order to develop proposals for the implementation of new investment projects and trade agreements.

They also considered the prospects for organizing special sectoral missions in the near future with the participation of Russian large importers and retail chains that are interested in cooperation with Uzbek companies in the textile, leather and footwear, food, electrical and chemical industries, the building materials and engineering industries, and in agriculture. economy, in order to reach specific agreements on establishing business partnerships.

Following the meeting, separate areas of bilateral cooperation were also discussed, for each of which further joint actions were determined.

 

mift.uz

In Moscow, the leadership of the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Russian biotechnology company Geropharm signed an agreement on the start of practical measures to develop a project for the production and supply of vital insulin drugs.

The document implies the creation of a working group between the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, the Ministry of Health of the Republic of Uzbekistan and the Geropharm company to develop a project to localize the production of insulin in Uzbekistan.

The implementation of the project will significantly increase the availability of a number of vital medicines for people with diabetes and will be an important step in reducing the dependence of the health care system of Uzbekistan on the import of these drugs, ensuring drug safety and developing biotechnological production in the country.

In accordance with the document, the Ministry of Investments and Foreign Trade of Uzbekistan will provide comprehensive support to the Russian manufacturer in resolving issues related to the implementation of the project. In the near future, the parties will develop and approve a "Roadmap" for the practical implementation of the project, which includes specific activities and deadlines for their implementation.

For reference: Geropharm LLC is a leader among Russian developers and manufacturers of biotechnological products in the CIS countries and the EAEU. For export, the company supplies high-tech products in the field of endocrinology. GEROPHARM insulins are in high demand in the market of Uzbekistan and Central Asian countries.

 

mift.uz

Representatives of the Consulate General of Uzbekistan in Shanghai met with the chief executive officer of the manufacturer of electric vehicles under the Modern Auto brand, Liu Xin, Dunyo news agency reported.

Shanghai businessmen were provided with information about the investment climate in Uzbekistan and the benefits and preferences provided to foreign investors, as well as the ongoing work to modernize the automotive industry, including the creation of production facilities for international brands of cars.

It is emphasized that at present, there is a progressive increase in demand for modern electric vehicles in the domestic market of Uzbekistan.

Liu Xin informed that Modern Auto was founded in 2019 jointly with partners from Australia and the United States and headquartered in Shanghai. At present, the company manufactures and supplies to the Chinese market one kind of electric hatchback model, developed on the basis of modern technology and intelligent systems. The volume of annual production of this type of electric vehicle is 40 thousand units.

The Chinese businessman said that his company is currently developing two more models of sedan and SUV electric vehicles, and is also considering the possibility of entering its products into the international market and establishing cooperation with foreign countries. To this end, the issue of signing a memorandum of understanding with partners in Italy is being considered.

After a presentation about the promising automotive market in Uzbekistan, the management of Modern Auto expressed interest in establishing mutually beneficial partnerships with relevant companies in Uzbekistan.

As a result of the meeting, an agreement was reached that the Chinese side would consider the possibility of sending a delegation of Modern Auto to Uzbekistan to study the market and conduct further negotiations with relevant departments and potential partners on the prospects for creating the production of electric vehicles in Uzbekistan.

 

www.uzdaily.uz

On January 29 of this year, the opening ceremony of the first branch of National Industrial Holding LLC (NIH) in the Fergana region took place in Fergana. The event was organized by the Ministry of Investments and Foreign Trade with the support of the Khokimiyat of the Fergana region.

The ceremony was attended by the leadership of the Direct Investment Fund (JSC UzDIF) under the Ministry of Investments and Foreign Trade, Khokim of the Fergana region H. Bozorov, representatives of the regional division of the Ministry, employees of the Fund, local entrepreneurs and media representatives.

During the event, a presentation was made, revealing the key aspects of the activities of the Direct Investment Fund, as well as the goals, objectives and principles of the functioning of the NIH being created.

The aim of the project is to co-finance projects in the regions of the country in order to stimulate entrepreneurship, develop industry and strengthen cooperation ties between domestic producers. This initiative is one of the components of a new system for stimulating investment and foreign trade activities, which is being actively implemented by the Ministry of Investments and Foreign Trade.

The NIH will help support small and medium-sized businesses by attracting direct investment and creating modern industrial zones - ready-made areas with the necessary industrial and commercial infrastructure and production facilities for the subsequent implementation of industrial projects by entrepreneurs.

The concept implies the acquisition of land plots with the subsequent construction of industrial zones and technology parks on them, corresponding to industry specialization based on the potential and needs of the region, which will be determined jointly with the regional divisions of the Ministry, the Agency for Strategic Development of Uzbekistan and regional project groups, also created under the aforementioned new system .

In the future, industrial estates may become attractive to foreign investors as an integral low-risk commercial real estate asset that generates regular returns.

The NIH will organize the development of the concept of industrial zones together with international experts, coordinate the design and construction of adjacent infrastructure, buildings and structures necessary to accommodate entrepreneurs' projects on the basis of competitive procedures. Thus, a significant part of investments in the projects of regional entrepreneurs will be covered by the NIH.

In general, the initiative is designed to help increase regional domestic product, increase industrial potential, create new jobs, unite entrepreneurs and consolidate capital, strengthen technological capacity and increase budget revenues.

 

mift.uz

The Embassy of our country in the UK, with the assistance of the Scottish Chamber of Commerce in the city of Aberdeen, organized a round table on the investment and trade opportunities of Uzbekistan, a Dunyo news agency correspondent reports.

The round table was attended by representatives of companies from the oil and gas industry, the renewable energy sector, logistics and agriculture.

Representatives of the ministries of energy, investment and foreign trade, the Investment Promotion Agency under the Ministry of Foreign Trade, Uzbekneftegaz JSC, as well as the Khokimiyat of Kashkadarya region also made online presentations.

The British side was familiarized with information about the ongoing large-scale reforms in Uzbekistan, the progressive nature of the Uzbek-British interaction, wide opportunities for further intensification of investment and trade and economic ties. The investment opportunities in the oil and gas and petrochemical industries, the field of alternative energy, the priorities of the modernization of industries with the involvement of innovative solutions and advanced technologies were discussed in detail. Separately, the export potential of agricultural and textile products of the regions of Uzbekistan is presented.

The participants of the event highly appreciated the large-scale transformations in Uzbekistan, including in the field of economic liberalization, development of foreign trade, and showed interest in establishing cooperation in these areas.

During the talks, priority steps were outlined for the practical implementation of the proposals voiced and the agreements reached. In particular, representatives of a number of Scottish companies expressed their intention to visit Uzbekistan in March to hold meetings with potential partners.

Separately, bilateral negotiations were held with representatives of the regional administration, the regional office of the UK Department for International Trade, the Chamber of Commerce, the Scottish Development Agency, a number of technology centers and companies.

It should be noted that Scotland is the main center in the UK for the development and implementation of the latest technologies in the field of renewable energy sources, which provide a significant part of the region's needs. Also developed are such sectors of the economy as fisheries, chemical, pulp and paper, food and shipbuilding industries.

 

dunyo.info

On 25 December 2021, with the participation of the President of Uzbekistan, the ceremony of launching the GTL plant and laying the foundation for the start of construction work as part of the investment project "Expanding the production capacities of the Shurtan Gas Chemical Complex" were held.

At present, the investment project "Expanding the production capacities of the Shurtan gas chemical complex" in Guzar district of Kashkadarya region is being implemented at an accelerated pace.

The technical and economic basis of the project was developed by a specialized institute of UzLITIneftegaz JSC. The estimated cost of the project is US$1.85 billion.

The project stipulates the production of up to 280,000 tons of highly liquid bimodal polyethylene and 100,000 tons of polypropylene per year by processing 430,000 tons of naphtha produced at the GTL plant.

The new plant is designed for blowing and molding high density polyethylene and polypropylene, the production of pipes, films and fibers, as well as extrusion processes.

To finance the project, a loan in the amount of US$300 million was attracted from the Russian Gazprombank JSC.

In addition, funds from international financial institutions, credit agencies and commercial banks are attracted without state guarantees.

In particular, within the framework of the Uzbek Economic Forum, which took place on 29-30 September 2021, memorandums on financial cooperation were signed between Deutsche Bank, LBBW and Helaba banks. At the same time, in November-December, the project was presented to the export credit agencies of Germany "Euler Hermes", Holland "Aradius" and Italy "SACE".

In addition, work is underway to attract funding from the export credit agencies of China "SINOSURE", Saudi Arabia "ICIEC" and Russia "EXIAR".

The South Korean companies Hyundai Engineering and GS Engineering & Construction are involved in the detailed design, and their highly qualified and experienced engineers, together with the leading specialists of Uzbekneftegaz JSC and the Shurtan gas chemical complex, carry out design work.

To date, 387 highly qualified specialists have been involved in the project as an ERS contractor. Detailed design is 52.2 percent complete.

A 30% 3D (three-dimensional) Model has been developed and approved by Design and the development of a 60% 3D Model is ongoing, which in turn forms the basis for the creation of a 90% final 3D Model. 

Currently, the preliminary selection of suppliers of the main equipment is ongoing. In total, 144 out of 374 pieces of basic technological equipment were ordered. 

One of the main factors for the successful implementation of the project is the training of professional personnel. At present, a personnel training center has been organized on the territory of the Shurtan Gas Chemical Complex, selected young specialists, including the best graduates of higher educational institutions of the oil and gas industry, are undergoing practical and theoretical training in production workshops and facilities.

As a result of the implementation of this project, the production of polyethylene and polypropylene will be increased in Uzbekistan, which will create the basis for the production of high-quality and export-oriented goods.

 

www.uzdaily.uz

On January 25 this year, the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held talks via videoconference with the Advisor to the Prime Minister of the Islamic Republic of Pakistan on trade and investment Abdul Razak Dawood.

The agenda of the talks included a wide range of issues of bilateral cooperation in such areas as investment, mutual trade, industrial cooperation and the transport and logistics sector.

The implementation of the agreements reached during the visit of the Prime Minister of Pakistan to Uzbekistan in July 2021 was substantively reviewed. The progress achieved in the promotion of joint projects and initiatives was discussed, the existing issues in each direction were considered and worked out. A commitment was expressed to close cooperation in order to accelerate the implementation of agreed projects.

The success developed by the two states in increasing trade turnover was noted: at the end of 2021, the volume of mutual trade increased by 46 percent compared to the previous year. In this context, the progress of work on the draft Preferential Trade Agreement was studied. The parties agreed to intensify joint work in this direction in order to agree on the document and speed up its signing during the current year.

The Uzbek side welcomed Pakistan's ratification of the Transit and Trade Agreement. It was discussed that in the near future negotiations will be organized between the leadership and experts of the transport and customs departments of the two countries in order to agree on the mechanisms for the practical implementation of the Agreement.

In a separate order, proposals were considered to deepen investment cooperation, strengthen ties between the business circles of the two countries, as well as establish cooperation in the banking sector. An agreement was reached to organize a visit by a delegation of the leadership of Pakistani companies and commercial banks in February this year to discuss promising areas of cooperation and the implementation of mutually beneficial projects.

Issues related to the implementation of joint projects in the transport and logistics sector were also considered. In particular, further steps were discussed on the practical implementation of the Termez-Mazar-i-Sharif-Kabul-Peshawar railway construction project. In addition, the relevance of enhancing bilateral passenger and freight traffic between the two countries was noted.

The dialogue also made it possible to discuss preparations for a number of planned bilateral events, including a regular meeting of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, as well as a business forum with the participation of representatives of the private sector of the two countries.

As a result of the negotiations, additional agreements were reached as part of the implementation of common tasks and the promotion of the considered areas of cooperation.

 

mift.uz

According to the State Statistics Committee, at the end of 2021, the share of small business (business) in the country's GDP amounted to 54.9%. In terms of regions, its largest share was observed in Jizzakh (81.2% of the total gross value-added created in the region), Surkhandarya (77.3%) and Bukhara (75.4%) regions. The smallest share of small business (business) was noted in Navoi (27.1%) and Tashkent (46.8%) regions.

According to preliminary data, the GRP of the Republic of Karakalpakstan for 2021 increased by 7.4% and amounted to 26,250.7 billion soums. GRP growth is due to positive growth rates in the main sectors of the region's economy, such as agriculture, forestry and fisheries - 103.7% (share in the GRP structure - 28.8%), industry - 107.4% (26.7%) , construction - 110.5% (8.5%) and services - 109.7% (36.0%). GRP per capita increased by 6.0% and amounted to 13,558.6 thousand soums.

 

www.uzdaily.uz

On January 24 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov received a delegation of the leadership of the Council of Higher Education of the Republic of Turkey, headed by Chairman of the Council E. Uzvar. The meeting was also attended by the Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to the Republic of Uzbekistan O. Bekar and representatives of the Ministry of Trade of the Republic of Turkey.

During the meeting, issues of bilateral cooperation in the field of higher education were discussed. In particular, measures were considered to accelerate the creation of the Uzbek-Turkish University in Uzbekistan with the participation of leading educational institutions in Turkey. The corresponding agreement was reached in August 2020 during the visit of the government delegation of Uzbekistan to Ankara. The parties outlined further steps in this direction and agreed to agree on the existing issues in the near future.

Other successes achieved in cooperation in the field of education were also noted. Thus, in particular, the Tashkent branch of the University of Economics and Technology of Turkey and the faculty of the University of Medical Sciences of Turkey, established at the Bukhara State Medical Institute, are successfully functioning.

Mutual readiness was expressed to expand mutually beneficial partnership, in connection with which the possibilities of creating new branches of leading educational institutions of Turkey in the regions of Uzbekistan in such areas as engineering, art, medicine, agriculture and tourism were considered. The prospects for deepening cooperation on the exchange of faculty, researchers and students were also discussed.

In this context, an agreement was reached on improving the qualifications of researchers and the level of knowledge and skills of students, as well as organizing lectures, practical classes, interactive seminars and training between the universities of the two countries.

Following the meeting, the parties exchanged additional proposals to enhance cooperation and agreed to maintain close contact in order to accelerate the promotion of agreed programs and initiatives.

 

mift.uz

Uzbekistan intends to provide 80% of the drug market with its own products by 2026. The corresponding decree was signed by Shavkat Mirziyoyev.

This document approves a targeted program of investment projects implemented in the pharmaceutical industry for the next 5 years, as well as a list of projects that need to be finalized. During this time, it is planned to increase the volume of drug production by 3 times.

The implementation of these projects will be monitored by a special commission led by the head of the MIFT, Sardor Umurzakov. It will also be able to replenish and change the list of investment projects implemented in the targeted program.

Starting from February 1, the Fund for Support and Development of the Pharmaceutical Industry will cover 75% of the expenses of local companies for registering medicines and other products abroad. To do this, you will need to provide a registration document.

From April 1, registration in Uzbekistan of new pharmaceutical products of local production will become indefinite. Previously issued registration certificates upon expiration of their validity period will be exchanged for unlimited ones within 15 days.

In addition, from April 1, a mechanism for guaranteed purchase of localized pharmaceutical products at the expense of the state budget is being introduced. For this, a special contract for 3 years will be concluded.

Suppliers for guaranteed purchases will be selected through an open tender. These competitions are held as part of the list of medicines, medical devices and medical equipment that were not previously produced in Uzbekistan and are subject to localization.

A number of restrictions in the pharmaceutical industry are canceled:

  • a ban on private organizations to collect donated blood and produce pharmaceutical products based on it;
  • restriction on conducting clinical trials of drugs on healthy volunteers;
  • restriction on the production of drugs with the same composition by one manufacturer under different trade names.

New pharmaceutical companies - manufacturing and trading enterprises - from April 1 will be created in accordance with the requirements of good practices (GxP). The mandatory GxP certification period is extended until January 1, 2024.

From July 1, the mandatory certification of medicines from local manufacturers with a GMP certificate is canceled. Certification of medical equipment from companies that have received an ISO: 13485 certificate from an authorized organization in Uzbekistan is also canceled.

At the same time, from January 1, 2023, only certified suppliers are allowed to public procurement :

  • drug manufacturers - according to the GMP standard;
  • suppliers of medical equipment and other medical products - according to ISO: 13485;
  • wholesale pharmaceutical distributors - according to the GDP standard.

In addition, exporters of pharmaceutical products operating under GMP standards will receive benefits:

  • subsidies to cover up to 50% of export-related costs (up to 5% of the total export value when transported by road, up to 7% by rail);
  • revolving loans for replenishment of working capital - for a period of up to 1 year, at 4%, up to $ 3 million.

Until January 1, 2025, the following are exempt from customs duties:

  • raw materials, materials, medical products used for pharmaceutical production and preclinical studies;
  • technological and laboratory equipment, components and spare parts for them, "clean rooms", sandwich panels and ventilation systems for pharmaceutical production facilities.

 

www.spot.uz

On January 21 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov received a delegation of one of the largest regions of the Russian Federation, which is in Uzbekistan on a three-day visit, consisting of heads of ministries and departments, industry and scientific and educational institutions, as well as representatives of business circles of Tatarstan. The event was also attended by the Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Uzbekistan O. Malginov. The meeting was also attended by counter-partners from the Uzbek side - heads of relevant ministries and departments.

It should be noted that during the visit, members of the delegation visited a number of ministries, departments, scientific and educational centers and large industrial enterprises, such as the Chirchik-Khimgrad industrial park in the Tashkent region, IT-park in Tashkent and other facilities. During the visits, meetings were held with the heads of ministries, industrial complexes and local entrepreneurs, during which the guests were introduced to the production process, told in detail about the technologies used, demonstrated product samples, and shared plans for the future. The Russian delegation showed great interest in the cluster approach to the organization of production being implemented in the country, emphasizing its obvious advantages in the production of high-tech competitive goods.

The delegation members noted the significant opportunities for establishing industrial cooperation between the producers of the regions of the Republic of Uzbekistan and the Russian Federation, which in turn will make a significant contribution to deepening the investment and trade and economic partnership between the two countries, including by building complete value chains involving production enterprises located in the regions of Uzbekistan and Russia.

During the meeting at the Ministry of Investments and Foreign Trade, the results of the visit were summed up, the agreements reached were considered and the current status of the joint projects and programs being worked out was studied in detail. The practical aspects of the implementation of joint initiatives were discussed, possible sources of funding, terms of implementation and project executors were considered, the portfolio of which currently covers such areas as the chemical and automotive industries, the field of information and communication technologies, medicine, energy and housing and communal services. A constructive dialogue made it possible to develop algorithms for further interaction to speed up the coordination of existing issues on the projects under discussion.

As a result of the meeting, further steps were determined to promote and implement projects and the deadlines for completing the tasks were determined.

 

The 4th meeting of the Intergovernmental Commission on Trade and Economic Cooperation between the Republic of Uzbekistan and the Sultanate of Oman was held in the format of a videoconference. The meeting was co-chaired from the Uzbek side by the Deputy Minister of Investment and Foreign Trade Sh. Vafaev, and from the Omani side by Deputy Foreign Minister Sheikh Khalifa bin Ali al-Harisi. The meeting was also attended by the heads of key ministries and departments of the two countries.

The agenda of the event included issues of further deepening bilateral cooperation in the areas of investment, trade, economic, cultural, humanitarian, scientific, and technological cooperation, as well as partnerships in the areas of tourism, transport, human resources, and social support.

During the discussion, the meeting participants were able to identify promising growth points for multifaceted bilateral cooperation and agree on mechanisms for promoting new joint projects, programs, and initiatives in promising areas.

Wide opportunities were noted for intensifying investment cooperation and developing mutual trade in the oil and gas, chemical, energy and electrical industries, food production, building materials, tourism, and other areas. An agreement was reached on a joint study of opportunities for increasing trade turnover, preparation of proposals for the elimination of existing trade barriers.

Mutual readiness was expressed for joint work to attract the business circles of the two countries to establish closer ties and implement joint projects. An agreement was reached to hold a regular meeting of the Uzbek-Omani Business Council this year, during which it is planned to consider priority areas of partnership between entrepreneurs of the two states and develop mechanisms for practical support for the implementation of new business initiatives.

The activities of the Uzbek-Omani investment company UzOman Capital, which implemented investment projects totaling about $200 million, were noted. The parties agreed to actively use the created effective joint platform to attract investments from Omani investors, as well as foreign investors in general.

Opportunities were considered for implementing joint projects in the transport sector, attracting investments in the tourism sector, launching joint tourist exchange programs, as well as practical measures to increase mutual passenger and cargo flows and conducting bilateral events aimed at enhancing cultural exchange between the two countries.

As a result of the meeting, an appropriate protocol was signed, reflecting the agreements reached during the event.

 

mift.uz

 

 

On January 21, President Shavkat Mirziyoyev signed a decree to support the textile and knitwear industries. The document was published by UzA.

According to the decree, measures are being introduced to stimulate production in Uzbekistan, as well as the export of finished garments and textile products. To ensure that these measures are realized, the Textile Industry Support Fund (Fund) will be created at the Ministry of Investment and Foreign Trade.

So, from February 1, 2022, to January 1, 2025, textile and knitwear enterprises - exporters (earning at least 80% of revenue from foreign supplies) receive tax benefits:

  • social tax rate - 1% ;
  • deferral of property tax debt repayment - up to 3 years, with subsequent payment in installments.

A business that implements projects for the production of dyed fabric, blended and dyed fabric can receive subsidies from the Fund for the purchase of equipment for them.

The amount of payment will be 10% of the cost of equipment, a maximum - $500,000. Subsidies are allocated only for the purchase of new equipment within the framework of projects, excluding delivery and other additional costs.

To pay subsidies, the Fund will receive $25 million from the Fund for Reconstruction and Development of Uzbekistan. In addition, the Fund will receive part of the export fees from yarn and knitted fabrics.

Buyers of looms will be able to receive foreign currency loans from the National Bank for up to 7 years, including 3 grace years. The loan will cover the first installment of 15% of their value.

Also, the National Bank will allocate foreign currency loans to exporters of fabrics and ready-made clothes to replenish working capital. The term of loans will be up to 1 year (including preferential 9 months), the maximum amount is $3 million.

For these purposes, the Ministry of Finance will allocate up to $100 million received through the issuance of international bonds (Eurobonds). The rate on loans will be determined based on the yield percentage of Eurobonds in the secondary market.

In addition, it was instructed to extend until January 1, 2024, the provision of compensation and guarantees for loans issued to exporters in banks by the Entrepreneurship Support Fund.

 

www.spot.uz

The World Bank has published a report "Prospects for the World Economics", according to which Uzbekistan in the next two years will overtake all the countries of Central Asia in terms of economic growth.
According to the forecast, if a general slowdown in economic growth is expected in the countries of Europe and Central Asia amid the ongoing COVID-19 pandemic and the spread of new strains, this trend will not affect Uzbekistan.
World Bank experts predict economic growth for the republic: in 2022 it should be 5.6%, and in 2023 - 5.8%.
Due to what Uzbekistan will become the leader of the region, the Sputnik correspondent found out from experts in the field of economics.
 

On January 20 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov received the Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to the Republic of Uzbekistan O. Bekar.

During the meeting, a broad agenda of bilateral cooperation were discussed, including issues of interaction in investment, trade, economic, transport and logistics areas.

Projects, programs and activities that are under development were substantively reviewed. The parties paid special attention to further measures to increase the number of joint investment projects and increase mutual trade. In this vein, it was agreed that work will be intensified to complete the harmonization of the draft Preferential Trade Agreement.

A number of issues related to the activities of Turkish investors in Uzbekistan were also voiced - the parties discussed the algorithms for their solution and outlined further steps to promote these projects. The Uzbek side expressed its commitment to close cooperation with Turkish entrepreneurs and providing them with prompt practical support in resolving emerging issues.

Further actions to expand the transport connectivity of the two countries and develop the transit potential were discussed separately. An agreement was reached to set up a bilateral expert group to work out specific proposals to improve the efficiency of using transport corridors linking the two states.

As a result of the meeting, an agreement was reached on the development of a separate "Roadmap" to study the current state of the above issues and implement the necessary measures to address them.

 

Of the total assimilated investments in fixed assets in January-December 2021, from centralized sources of financing 44.8 trillion sum of investments in fixed assets were disbursed, or 18.3 % which is less compared to the same period in 2020 by 1.6 p.p.

Accordingly, 200.2 trillion sum of investments were disbursed from non-centralized sources of financing or 81.7 % of their total volume, which is 1.6 p.p. more compared to the same period in 2020.

 

stat.uz

In 2021, all indicators of business climate remained high. The average annual consolidated indicator in 2021 was 60 points, which is higher by 18 points than in 2020.

The relaxation of quarantine restrictions and the large-scale measures taken by the Government to support the economy, including a number of measures by the President of the Republic of Uzbekistan which were taken after his meeting with entrepreneurs in the format of an open dialogue on August 20, 2021, allowed to maintain the positive economic growth rates in 2021.

The Center for Economic Research and Reforms (CERR) has been conducting a series of monthly surveys among more than 1,000 companies in two areas: qualitative assessment of the current state of business and the expectations of entrepreneurs regarding the prospects for the development of their business for the next three months.

In 2021, all indicators of business climate remained high. The average annual consolidated indicator in 2021 was 60 points, an increase of 18 points compared to 2020.

Changes in business climate indicators in 2021

The maximum value of the consolidated indicator of the business climate was recorded in January and accounted for 69 points, and the minimum - in May (53 points).

Dynamics of the business climate indicator

In May 2021, representatives of the industrial sector were concerned about the fall in demand for goods (55%), the provision of raw materials (13%). Representatives of the agricultural sector linked the poor condition with the difficulties of water supply.

In the period from June 2020 to April 2021, according to FAO data, a decrease in precipitation was observed in all regions of the country. Further, a sharp drop in temperature to -12 degrees at the end of February 2021 (in Karakalpakstan to -22 degrees) led to a deterioration in demand among the population, a temporary halt in construction work, as well as a slowdown in the agricultural sector (a possible loss of fruit and berry crops was estimated from 30% up to 80%).

Every month, on average for 2021, according to 43% of entrepreneurs, there was a good current state of the business climate, 46% improved demand for goods and services, and 26% increased the number of employees.

It is worth noting that 2021 was marked as very optimistic year for small and medium-sized businesses. On average, 77 % of respondents improved their general condition of their businesses in the short term.

Business climate change in December 2021

In December of 2021, the consolidated indicator of the business-climate, increased by 10 points compared to the same period in 2020 and accounted for 62 points, which assesses the state of the business climate in the country as positive (in December 2020 - 52 points).

The indicator of the current state of the business was 50 points (November - 44 points), which characterizes the positive sentiment of entrepreneurs regarding the current state of the business (in December 2020 - 33 points).

The growth of the current state indicator is associated with improved sentiment among entrepreneurs in industry - 47 points (November - 38 points), services - 51 points (November - 45 points), agriculture - 52 points (November - 47 points) and construction - 51 points (November - 49 points),

The indicator of expectations of business development prospects in October increased by one point compared to September and amounted to 71 points, which reflects the expectations of entrepreneurs about the prospects for the development of their businesses for the next 3 months as optimistic.

All of the above leads to an acceleration in the pace of recovery. Also, we see that 82% of companies expect that their businesses will have improving trends at the beginning of 2022 (November - 74%, December 2020 - 73%).

It is expected that the demand for goods and services will improve in 67% of enterprises (November - 65%, December 2020 - 60%), the number of employees will increase in 68% (November - 61%, December 2020 - 59%).

 

review.uz

In January-December 2021, the foreign trade turnover of the Republic of Uzbekistan amounted to 42.1 billion US dollars.

Foreign trade turnover - 42.1 billion US dollars

Export - 16.6 billion.

Goods - 14.1 billion.

Services – 2.5 billion US dollars

Import - 25.5 billion.

Goods - 23.7 billion.

Services - 1.8 billion US dollars.

 

stat.uz

In order to develop long-term relations and increase the competitiveness of the textile industry in Russia and Uzbekistan, a trilateral cooperation agreement was signed by Sber, the Association of Textile Enterprises of Uzbekistan and Strategy Partners. 

The event was attended by Deputy Chairman of the Board of Sberbank Anatoly Popov, Chairman of the Association of Textile Enterprises of Uzbekistan "Uztekstilprom" Ilkhom Khaydarov and Managing Partner of Strategy Partners Valeria Plotnikova, as well as representatives of the Embassy of the Republic of Uzbekistan.

The parties intend to determine financing mechanisms, work out the structure of investment projects, interact in the creation of joint ventures and schemes for the supply of raw materials and finished products.

Within the framework of the agreement, priority areas of cooperation will be determined, joint investment projects will be agreed upon, and other possible mechanisms for financing the textile industry of the two countries will be formed.

Anatoly Popov, Deputy Chairman of the Board of Sberbank, said:

“I am sure that cooperation in the supply of raw materials and finished products, the integration of enterprises and the development of joint projects, the development of digital transformation, as well as the introduction of sustainable development principles will help bring the textile industry of our countries to a qualitatively new level. The promotion of digital solutions and financial instruments in production chains will give a new impetus to economic cooperation between Russian and Uzbek companies.”

Valeria Plotnikova, Managing Partner at Strategy Partners, underlined:

“Today's agreement is an important step in establishing long-term partnerships and developing effective and mutually beneficial cooperation between Russia and Uzbekistan. We are pleased to be able to scale our successfully accumulated experience in providing consulting support in improving the competitiveness and development of companies and industries, developing strategies, developing digital transformation and implementing ESG initiatives for the textile industry in both countries.”

Ilkhom Khaydarov, Chairman of the Uztekstilprom Association, said:

“Of course, our Agreement, which involves the use of the most advanced financial instruments of PJSC Sberbank, is a significant step towards expanding cooperative ties between the textile industries of Uzbekistan and Russia. The synergy of the successful experience of Russian partners in digital transformation with the achievements of Uzbek manufacturers in the field of transparent and environmentally responsible production will dramatically increase the attractiveness of the entire range of textile and clothing and knitwear products in consumer markets.”

 

www.uzdaily.uz

The world has changed. The COVID-19 pandemic has made its own adjustments to global development. For example, in 2020, the world economy shrank by 4.3 percent, which is two and a half times more than during the global financial crisis of 2009.

The right trade policy of Uzbekistan, reforms in the area of optimization of tariff and non-tariff barriers (reduction of tariff rates, simplification of customs and regulatory restrictions), according to preliminary results, allowed to improve the position on the benchmark “Freedom of Trade” by 20.2 points. And this is in the context of an ongoing pandemic. So, the state was awarded 75.6 points in 2022 compared to 55.4 points in 2021.

Uzbekistan has overtaken such countries as the USA, Japan, China and Russia. At the moment, according to this indicator, the Republic ranks 67th compared to the 163rd place it occupied in 2021, becoming, at the same time, the absolute leader in Central Asia.

It should also be noted that according to preliminary results, the average score for the global indicator “Freedom of Trade” decreased from 70.9 to 69.5 points, while only 21% of countries were able to improve their tariff and non-tariff barriers in foreign trade.

For information: the Index of Economic Freedom is a rating that assesses the degree of economic freedom in the countries of the world. It is published by the American research center “Heritage Foundation” (The Heritage Foundation) together with the business publication The Wall Street Journal. The experts of this Foundation define economic freedom as “the absence of government interference or obstruction of the production, distribution and consumption of goods and services, except for the protection and support of freedom as such necessary for citizens.” Published since 1995.

 

sda.gov.uz

According to the Decree, from April 1, 2022, to December 31, 2024 :

  • income accrued in the form of dividends on shares of individuals - residents and non-residents of the Republic of Uzbekistan are exempt from income tax;
  • on income accrued in the form of dividends on shares of legal entities - non-residents of the Republic of Uzbekistan, a 5 percent income tax rate is applied by analogy with legal entities - residents of the Republic of Uzbekistan;
  • income in the form of accrued interest on bonds of business entities of individuals and legal entities - residents and non-residents of the Republic of Uzbekistan are exempt from personal income tax and corporate income tax.

From July 1, 2022, a procedure will be established in accordance with which:

  • when making transactions with securities at organized over-the-counter trading in securities, the seller (except for the issuer) pays a fee of 0.3 percent of the transaction amount instead of profit tax and income tax;
  • when the general meeting of shareholders makes a decision to exclude the shares of the company from the exchange quotation list of the stock exchange, the shareholders - owners of the voting shares of this company are granted the right to demand the repurchase by the company of their shares.

According to the Decree, a primary ( IPO ) and (or) secondary ( SPO ) public offering of shares of joint-stock companies will be held in the Republican Stock Exchange "Toshkent" in accordance with the appendix.  

The State Commission for Conducting Tenders for the Sale of State Property has been given the authority to establish the volume and timing of the issuance of a block of shares in the primary ( IPO ) and (or) secondary ( SPO ) public offer for sale, to make changes and additions to their list.

The proposal of the Ministry of Finance and the State Assets Management Agency to allow, as an experiment, until December 31, 2023, foreign banks and investment intermediaries to carry out underwriting activities by concluding an agreement with local legal entities entitled to carry out underwriting activities in the securities market, and not less than 500 million soums of own funds, without obtaining a separate license in the Republic of Uzbekistan.

From April 1, 2022, local issuers are granted the right, on the recommendation of the underwriter, to place their shares on foreign stock markets after a preliminary placement on the RSE "Toshkent" or place them simultaneously on local and foreign stock exchanges. 

 

davaktiv.uz

On January 17 this year, in Tashkent, within the framework of the visit of the government delegation of Turkmenistan to the Republic of Uzbekistan, a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and Deputy Chairman of the Cabinet of Ministers of Turkmenistan S. Berdimuhamedov.

The event was also attended by heads of key ministries, departments, industry associations, and chambers of commerce and industry of the two countries.

During the meeting, an exchange of views took place on the current state of bilateral cooperation in the investment, industrial, trade and economic, transport and logistics, cultural and humanitarian fields, as well as in the areas of water use, interregional cooperation, and food security. The course of implementation of previously reached agreements was substantively reviewed and the possibilities of further deepening cooperation in promising areas were studied.

The parties noted significant progress in the development of bilateral trade: for example, over the past 4 years, trade between the two countries has increased 5 times, and in 2021 it increased by 65 percent, amounting to about $880 million. Mutual readiness was expressed to intensify joint work to promote the implementation of existing trade contracts and establish partnerships between entrepreneurs and manufacturers of the two countries in order to increase the volume of mutual trade to $1 billion in the near future.

A special place in the dialogue was given to further measures to develop industrial cooperation. The parties emphasized the success achieved in this direction in certain sectors and indicated a mutual interest in developing new proposals for the implementation of joint projects aimed at creating high-tech industries and forming interconnected value chains in the territories of the two states.

The importance of joint efforts to promote the potential of interregional cooperation was also noted. The parties discussed measures to prepare for the first Forum of the Regions of Uzbekistan and Turkmenistan this year, which is designed to become a platform for establishing direct ties between the administrations and business circles of the two countries.

In addition, a number of issues were substantively considered in the areas of water management, cooperation and implementation of joint projects in the field of transport, development of a network of common transport corridors and building up the transit potential of the two countries, implementation of joint programs in the field of culture and tourism.

During the meeting, an agreement was reached on the exchange of experience in improving the efficiency of agricultural land use, introducing international food quality standards, and ensuring food security.

At the end of the event, the parties expressed their readiness to continue active interaction in all considered areas of cooperation aimed at strengthening the multilateral partnership between Uzbekistan and Turkmenistan.

As a result of the meeting, a number of investment and export agreements were signed between the business entities of the two countries in the fields of agriculture, electrical engineering, the chemical industry, and the production of building materials.

 

mift.uz

Uzbekistan has approved new measures to develop the capital market. Citizens and foreigners are exempt from tax on income from dividends, and for foreign legal entities, the rate is reduced to 5%. The corresponding resolution was signed by the president.

Previously, residents of the Republic of Uzbekistan paid 5% of dividends, and foreign legal entities and individuals - 10%. A new procedure is also being introduced for coupon payments on bonds. They are completely exempt from taxes for all categories of holders. These measures will be in effect from April 1, 2022 until the end of 2024.

From July 1, 2022, when making transactions at organized OTC auctions, the seller will pay a fee of 0.3% of the transaction amount instead of income tax and income tax. At the moment, in Uzbekistan, such auctions are held on the Elsis-Savdo platform.

Starting from this date, when making a decision on delisting, the owners of voting shares have the right to demand from the company the redemption of their securities.

Since April 1, 2022, local issuers have been given the right, upon the recommendation of the underwriter, to withdraw securities to foreign platforms after preliminary placement on the RSE "Toshkent". Simultaneous placement on two platforms is also allowed. Previously, it was supposed to withdraw securities abroad from 2023.

The resolution also approved the list of companies for IPO or SPO. The list includes eight organizations: the UzAuto Motors auto concern, the UzAuto Motors Powertrain engine manufacturer, the Uzbekgeofizika geological exploration enterprise, the Uztemiryulconteiner container fleet operator, the Dori-Darmon wholesale and retail pharmaceutical network, Uzbekistan Pochtasi, as well as Universal Sug' insurance companies. urta and Alskom.

 

kursiv.uz

In Tashkent, on the territory of the industrial complex "Technopark", as part of the visit of the governmental delegation of Turkmenistan, an exhibition of the agricultural and industrial potential of the Republic of Uzbekistan was organized.

Members of the delegation visited the stands of the chemical, oil and gas, pharmaceutical, electrical, textile, sericulture, leather, and footwear industries of Uzbekistan. Stands were also demonstrated in various areas of agriculture: horticulture, greenhouses, seed production, potato farming, poultry farming, fish farming, and animal husbandry. In addition, the head of the Turkmen delegation got acquainted in detail with the industrial capacities of the Technopark production complex, focused on the production of a wide range of products in demand.

The Turkmen side was also informed about the measures taken in Uzbekistan as part of stimulating the development of economic sectors. Practical measures were discussed to intensify industrial cooperation between the enterprises of the two countries, as well as the exchange of experience and technologies in promising areas.

 

mift.uz

2021 turned out to be successful for the economy of Uzbekistan and turned out to be decisive in achieving one of the main goals of the ongoing reforms - strengthening macroeconomic stability and maintaining high economic growth rates.

The economic growth rate last year was 7.4%, higher than previously forecasted 5-6% and very impressive against the backdrop of low economic growth of 1.6% in 2020, driven by the coronavirus pandemic.

To assess the economic situation in the country, specialists from the Center for Economic Research and Reforms (CERR) assessed the state of business activity at the regional and district levels for 2021.

The analysis of business activity by regions of the Republic of Uzbekistan is calculated by the CERR on the basis of operational data (monitoring for all regions of the republic, according to the data of the State Customs Committee, State Tax Committee, Central Bank and UZEX).

 

The monitoring results showed that the volume of tax revenues of the republic over the past year increased by 23.5 compared to 2020At the same time, a significant increase in tax revenues was noted in Khorezm (by 37.5 , Navoi (by 34.6 Kashkadarya ( by 31.7 % ) Tashkent by 30.5 ) , Samarkand (by % ) regions and in Tashkent (by 1% ).

The growth of tax revenues was achieved by creating a level playing field for business activities, and by reducing the regulatory and administrative burden, automating procedures and simplifying the procedure for complying with tax laws

Revenues from customs payments for the analyzed period increased by 34.4 %. The largest increase in revenues was noted in Jizzakh ( by 3.6 times), Syrdarya (by 2.1 times), Khorezm ( by 1.9 times), Samarkand (by 57.9 %), Kashkadarya (by 55% ), Ferghana (by 54.5%), and in Namangan regions (by 48.7% ).

The increase in the volume of receipts of customs payments indicates the growth of foreign trade turnover growth. In the structure of imports, machinery and equipment, industrial goods have a significant share. This trend indicates the creation and modernization of production capacities, which in the long run will contribute to economic growth.

According to the State Customs Committee, since the beginning of the yearthe volume of exports of goods has increased by 36.6 compared to the same period last year. An increase in the volume of exports of goods was noted in Samarkand (by 58.9% ), Jizzakh (by 51.1% ), Andijan (by 50.6 ) regions and in Tashkent (by 51.4% ).

The increase in the volume of exports of Uzbekistan is explained by the growing growth rates of exports of industrial goods, foodstuffs, chemicals and agri-food products

The volume of loans issued by commercial banks for 2021 increased by 27.7%. The largest increase in the volume of loans issued is observed in Tashkent (by 45.3% ), Namangan (by 28.7% ) regions and in the city of Tashkent (by 40.4% ).

The increase in the volume of loans issued by commercial banks indicates a gradual improvement in the investment climate and the activities of business structures. These changes also include an increase in the number of entrepreneurs.

During this period, 96,505 new business entities were created, the largest number of which was registered in Samarkand ( 10,475 ), Kashkadarya ( 8,958 ), Fergana ( 8,799 ), Tashkent ( 7,704 ) regions and in Tashkent ( 16,140 ).

The volume of transactions on the Uzbek Republican Commodity and Raw Materials Exchange for the analyzed period increased by 62.2%A significant increase in exchange activity is observed in Bukhara (by 94.0% ), Tashkent (by 70.7% ), Khorezm (by 66.2% ), Syrdarya (by 64.4% ), Namangan (by 62.3% ) , Kashkadarya ( 60.5% ) regions and in the city of Tashkent ( 2.3 times ).

Growth in the volume of transactions in these regions was ensured by an increase in the sale of such goods as sugar, feed grain, rolled ferrous metals, gasoline, industrial seeds, polyethylene, diesel fuel, etc.

A consistent economic recovery in 2021 is also evidenced by the results of a survey of enterprises to assess the state of the business climate in Uzbekistan, which is conducted monthly by the CERR. The study reflects the mood of business circles across the country.

Center for Economic Research and Reform

Karamat Nurillaev

 

review.uz

In December 2021, the Purchasing Managers' Index (PMI), calculated by the Center for Economic Research and Reform, amounted to 1085 points and increased by 8.5% compared to the previous month. There is also a 40 percent increase in PMI compared to the same period last year.

The following changes were observed in the PMI components

The Purchasing Managers' Index in December 2021 increased by 8.5% and amounted to 1085 points, compared with the previous month, due to changes in the following components:

  • the number of transactions on bank accounts of economic entities increased by 13.6% ;
  • the component of operating economic entities increased by 0.7% ;
  • the intensity of the purchase of raw materials on the commodity exchange increased by 8.6% ;
  • the trademark component increased by 5.9%.

In the regional context, Jizzakh region again showed the highest growth

In December 2021, the Purchasing Managers' Index for all regions increased compared to the previous month. In Jizzakh ( 72.0% ), Syrdarya ( 51.3% ), Khorezm ( 50.6% ), Surkhandarya ( 46.6% ) and Kashkadarya ( 46.1% ) regions, significant growth was observed.

 

OPERATIONS WITH BANK ACCOUNTS

The number of interbank payment transactions in December 2021 amounted to 5,875.8 thousand and increased by 705.1 thousand transactions ( 13.6% ) compared to November 2021.

The number of banking operations in all regions increased.

In December 2021, the number of banking transactions between legal entities increased in all regions compared to the previous month. In particular, the most significant growth was observed in Andijan ( 25.5% ), Jizzakh ( 21.7% ), Kashkadarya ( 20.1% ), Samarkand ( 19.1% ) and Surkhandarya ( 19.0% ) regions.

ACTIVITY ON THE COMMODITY EXCHANGE

In December 2021, the exchange component of the PMI was 1.0859. This means an increase in the level of the component by 8.6% compared to the previous month, which is associated with an increase in the number of transactions ( 17.5% ).

At the Republican Commodity and Raw Materials Exchange, the total turnover in December 2021 amounted to 6,668.9 billion soumswhich is 13.5 % more compared to the previous month.

ACTIVITY OF BUSINESS SUBJECTS

The component of operating economic entities in December 2021 amounted to 1.0065, which means an increase in the component by 0.7% compared to the previous month. This indicator has a positive value in relation to the same period last year with an increase of 8.5%.

The number of operating economic entities in December 2021 increased by 4,236 units compared to November 2021 ( 5,69,275 units ) and amounted to 5,73,511 units.

The number of large enterprises increased by 16 units.

During the reporting period, the number of small enterprises increased from 458,538 to 462,834 units (an increase of 4,296 units ). The number of farms decreased from 10 698 to 10 622 units (down 76 units ). The number of operating large enterprises amounted to 3,055 units, which is 16 units higher compared to November 2021.

BRAND REGISTRATION

In December 2021, the protected trademark index stood at 1.0590, up 5.9% from the previous month. In December of this year, 359 trademarks and trade names were registered by legal entities.

 

 

review.uz

 

The World Bank expects Uzbekistan's economy to grow by 5.6% in 2022 and 5.8% in 2023. This follows from a recent report by the World Economic Outlook organization.

In 2021, according to the bank, Uzbekistan's GDP grew by 6.2% - significantly higher than the 4.3% predicted a year ago. Anti-crisis measures, income and investment growth, as well as remittances from migrants, helped to exceed expectations.

First in the region

The economy of Europe and Central Asia in 2021 grew by 5.8% at once. However, in 2022-2023, the growth will decrease to 2.9-3% annually, the WB expects.

According to the forecast, Uzbekistan has the best prospects in the region - the same growth rate for 2022 is expected only in Montenegro.

Slightly slower growth is predicted for Tajikistan and Georgia - 5.5%. In 2023, it will slow down to 4.5% and 5%, respectively.

For Kyrgyzstan, the World Bank predicts growth of 4.7% this year and 4.3% next year, in Kazakhstan - 3.7% and 4.8%. There is no reliable information on Turkmenistan.

The Turkish economy, after a recovery boom (9.5% in 2021), risks slowing down to 2% in 2022 and 3% in 2023. A similar situation is predicted in Russia - from 4.3% last year to 2.4% this year and 1.8% next year.

Back down

The World Bank noted the rapid recovery of domestic economic activity in 2021. However, due to surges in inflation in many countries, central banks began to scale back stimulus measures and tighten monetary policy.

In addition, new outbreaks of COVID-19, in particular the omicron strain, are negatively impacting demand, especially in countries with low vaccination rates. Oil and gas exporting countries are also vulnerable to fluctuations in commodity prices caused by the virus.

Также ВБ указал на сложности с привлечением внешнего финансирования во многих странах региона, отражающих геополитические риски.

Ещё одним негативным фактором станет замедление ведущих экономик мира, в том числе США и Китая. Оно скажется на внешнем спросе на продукцию многих стран региона.

 

www.spot.uz

Strategy of New Uzbekistan for 2022 - 2026: macroeconomic stability

To continue the ongoing reforms in all areas, the draft Development Strategy of "New Uzbekistan" for 2022-2026 and the "road map" for its implementation were presented for public discussion.

The draft Development Strategy is based on the election program of President Shavkat Mirziyoyev and consists of seven priority areas. Moreover, the tasks identified in the speech of the head of state at a joint meeting of the chambers of the Oliy Majlis, dedicated to the inauguration of the newly elected President.

The third direction of the “New Uzbekistan” strategy - (the development of the national economy, ensuring its growth rates) is presented in the infographics of the Center for Economic Research and Reforms.

In particular, GDP per capita is expected to increase 1.6 times over the next five years, and Income per capita will reach 4,000 US dollars by 2030, thanks to which Uzbekistan will be able to join the list of "states with an upper-middle-income level".

The average annual growth rate of GDP in 2023-2025 will be 6.5 %. The annual growth rate of lending to the economy is planned at 16-18 %.

In the field of ensuring macroeconomic stability, it is planned to reduce the annual inflation rate from 9% in 2022 to 5% by 2023, at the same time, it is planned to decrease the state budget deficit, which from 2023 should not exceed 3% of GDP. A transition to a program budgeting system is also planned. The Civil Budget will be adopted and 5% of the budget of each district will be directed to solving urgent issues, based on the proposals of the population. 50% of the funds allocated for the repair of internal roads will be distributed on the basis of public opinion.

The amount of annual external borrowings will not exceed 4.5 billion US dollars. At the same time, the national debt will remain below 60% of GDP.

The discussion of the Development Strategy of «New Uzbekistan» for 2022-2026 will last until 15 January 2022.

 

review.uz

On January 12, a meeting was held under President Shavkat Mirziyoyev on the activities of the Ministry of Investments and Foreign Trade and the Agency for Strategic Development.

Thanks to stability and a favorable investment climate, foreign economic relations of our country are consistently developing. In particular, in 2021, a total of more than $10 billion of foreign investment was attracted, including $8 billion 100 million of direct investment. As a result, 318 large and more than 15 thousand regional projects have been launched, over 273 thousand jobs have been created. These enterprises are able to provide $1 billion in exports and replace $530 million in imports.

Of course, the coronavirus pandemic continues to have a serious impact on economic processes. Despite this, dynamic growth in exports is achieved. So, if in 2020 the volume of exports amounted to $ 9 billion, then in 2021 it amounted to $ 12 billion. It is noteworthy that the share of finished and semi-finished products in its structure has grown significantly.

This year, it is planned to attract foreign direct investment in the amount of more than $9.5 billion, launch 282 large and more than 9,000 regional projects, and increase exports to $14 billion.

At the meeting, the people responsible have shared information about the measures that will be taken in the context of industries and regions to achieve these indicators.

The head of state instructed to establish constant control over each investment project, assist initiators and ensure timely launch

A low level of attracting foreign investment in the fields of tourism, medicine and engineering was noted, among the regions - in the Republic of Karakalpakstan, Navoi and Khorezm regions. In this regard, the task was set to develop separate programs for them and direct additional investments.

The President dwelled separately on the development of industrial production and cooperation. Instructions were given to expand the range of products of domestic manufacturers, support and stimulate entrepreneurs. In particular, it was noted that the products of local enterprises that have mastered the production of goods that are not produced in our country will be guaranteed to be purchased. The importance of involving of khokims and their assistants in this process is indicated.

Instructions were given on the development of industrial cooperation and increasing the level of localization.

The importance of ensuring transparency and strengthening public control in the implementation of projects in the field of education, healthcare, water supply, road and other infrastructure, which directly affect the quality of life of the population, was emphasized.

The need to attract foreign grants to the healthcare sector, the trust fund for the Aral Sea region and other socially important areas was indicated.

The issue of joining the World Trade Organization was also touched upon.

Before the presidential elections, Shavkat Mirziyoyev noted that project groups and holding companies would be created in each district. Presentation of the ongoing work on the implementation of this system took place at the meeting.

The head of state noted the need to train project team specialists to work according to a single system and methodology.

Export issues are analyzed in detail. The importance of paying special attention to the development of industry and using additional opportunities for making forecasts in this area was emphasized.

As you know, by the decree of the President of the Republic of Uzbekistan dated July 19, 2021, the Agency for Strategic Development was established. The agency is entrusted with many tasks, including the study of strategic issues of attracting investments and implementing projects, identifying promising areas of investment activity, developing proposals for reforming economic sectors based on international experience and increasing the investment potential of the regions.

The meeting provided information on the structure of the agency, the completed work and the plans for the current year.

At present, the departments of the agency have been formed, they are staffed with qualified, enterprising specialists - graduates of leading foreign universities.

The Agency's work plan for the current year consists of 18 important events. Among them are the introduction of a new mechanism for promoting investment projects, improving the investment climate by reducing the shadow economy, introducing a regional investment climate rating, launching an online platform to identify and solve systemic problems of entrepreneurs, and developing a strategy to attract foreign direct investment together with the World Bank.

- This agency will create the basis for expanding investment and export potential. Therefore, it is necessary to develop a road map for the strategic development of regions and industries, to involve qualified specialists and advisers from abroad in this process, Shavkat Mirziyoyev said.

Specific tasks have been identified for creating a methodology in the field of strategic development and its implementation in each region and industry.

 

president.uz

The Cabinet of Ministers of Uzbekistan, by a resolution dated January 10 (PKM-14), amended and supplemented the Regulations on the procedure for withdrawing land plots and providing compensation to owners of real estate ( PKM-911 ).

In particular, paragraph 33 of the provision is supplemented with the following paragraphs:

“The protocol [of disagreements] should indicate the owners who agreed or opposed the implementation of investment projects in the territory.”

“If in the course of an open discussion at least one owner is against the implementation of an investment project on the land plot on which the investment project is planned, then the implementation of this investment project on the specified territory is not allowed.”

In addition, the government has amended paragraph 47, which excludes the right of an investor to file a lawsuit with a court for the forced purchase of real estate at a price determined in the prescribed manner. Now this item will look like this:

“If there is a written consent (agreement) of at least 75% of the owners, but there is no possibility to obtain consent (failure to reach an agreement) of the remaining part of the owners, the initiator has the right to apply to the court with a claim to determine the amount, timing and types of damages to the owners who did not give the appropriate consent.”

Earlier, the Ministry of Justice of Uzbekistan answered in detail questions regarding the provision, including the right of investors to file a lawsuit for the forced purchase of real estate objects with the consent of at least 75% of the owners.

 

Currently, the stage of drawing up an agreement between the investor and the owners is preceded by the stage of preliminary discussion of the project with all the owners. Only after obtaining the prior consent of all the owners, the kengash makes a decision to withdraw the land, after which the process of agreeing on the issue of compensation and drawing up an agreement begins.

The investor must discuss the issue of compensation with absolutely all owners, i.e., disputes may not arise. If the investor has received the consent of at least 75% of the owners, but could not agree with 25% or less of the owners, he can go to court.

The Ministry of Justice explained the introduction of this norm by the fact that this part of the owners initially gave their preliminary consent to the withdrawal of the land plot with the provision of compensation at market value, and on the basis of which the kengash had already made a decision to withdraw the land plot.

 

www.gazeta.uz

By Trend

Netherlands’ Entrepreneurial Development Bank (FMO) is open to new investments in the financial sector in Uzbekistan, if the banks will fit FMO’s strategy of contributing to financial inclusion, the representative of FMO told Trend.

"It is in our mandate to invest in privately held institutions in Uzbekistan. We want to have an active role in the development of the financial sector of the country," the representative stated.

Recently Trend reported that FMO will provide a loan to Hamkorbank of Uzbekistan for $100 million to support women's and youth entrepreneurship.

Hamkorbank is one of FMO’s Financial Institutions clients in Uzbekistan.

"FMO is partnering with Hamkorbank since 2012 when we became their lender and shareholder. Through our investments in local partners like Hamkorbank we aim to support our development strategy in the country," the representative said.

For example, the new $100 million senior loan facility consists of a committed facility of $50 million and an uncommitted facility also of $50 million. The loan can be used in local currency UZS as well as in USD.

"The proceeds of the loan are used by Hamkorbank to finance projects supporting Reducing Inequalities (Micro customers and Women, Youth, Agricultural SMEs) and eligible Green projects. All of this contributes to FMO’s development impact goals," the FMO’s spokesperson noted.

The representative also stated that FMO is always open to consider new investment opportunities in Uzbekistan which are in line with their development banking mandate.

"We are currently discussing some possibilities with prospect Uzbek banks," the spokesperson noted.

Since 2012 FMO has been a loyal and stable investor in the private sector in Uzbekistan.

"Our monetary investments provide for capital and stable funding which strengthens financial profile of our customers. It also supports them with the execution of their business strategy," the representative said.

In addition, the spokesperson added that FMO also support Uzbek customers with targeted Technical Assistance in areas, such as Environmental & Social Risk Management and Corporate Governance through in-house and external support.

 

https://www.azernews.az/region/185229.html

On January 11 of this year, in the format of a video conference, negotiations were held by the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.U. Umurzakov with the President of the Republic of Tatarstan R.N. Minnikhanov. The negotiations were also attended by the heads of the Ministry of Investment and Foreign Trade and other relevant ministries and departments of Uzbekistan, as well as heads of departments and large companies of Tatarstan.

During the negotiations, the progress of the implementation of joint projects within the framework of interregional cooperation between Uzbekistan and the Russian Federation was discussed and steps were agreed on for their further advancement. All existing issues related to the implementation of large-scale projects in the fields of chemical, oil and gas, automotive, medical equipment and robotics, housing and communal services, innovation and scientific and technical cooperation were substantively considered.

As a result of the discussion, the responsible leaders were instructed to take specific measures to resolve the issues identified and accelerate the implementation of the relevant projects.

The parties agreed to organize a visit by the leadership of the Ministry of Industry and Trade of the Republic of Tatarstan and large companies to the regions of Uzbekistan in the near future to conduct targeted negotiations in order to strengthen partnership and agree on all aspects of practical cooperation.

At the end of the meeting, the parties supported the proposal to intensify a close and regular dialogue on the considered areas of cooperation in order to accelerate the advancement of existing projects and develop proposals for further deepening partnership between Tatarstan and the regions of the Republic of Uzbekistan in priority areas.

 

mift.uz

The rating agency Fitch Ratings in a new report warned about the risks for the economy of Uzbekistan.

Analysts pointed to significant changes in the economy and politics of Uzbekistan since the liberalization of the foreign exchange market in September 2017.

“The increased flexibility of the exchange rate is beneficial for the economy, but also creates risks due to the mismatch of borrowing and lending currencies and an increase in the volume of borrowings in foreign currency,” the report says.

Progress in reducing dependence on government funding sources and moving towards market-based financing costs differs across sectors and organizations. Banks and several non-financial corporations have made the most progress in this direction, Fitch noted.

"The reform process was facilitated by the low level of debt in the economy, but the rapid build-up of the debt burden, if sustained, creates risks," added the analysts.

The agency emphasizes that achieving higher growth rates, for example by increasing investment in key sectors of the economy such as power generation, is one of the main policy objectives underlying the government's reforms. This could boost the development of other sectors such as insurance and corporate law.

“However, high growth rates due to lending can also lead to risks, for example, in terms of deteriorating asset quality and greater dependence of banks on external sources of financing,” the report says.

The quality of management is a weak point in the creditworthiness of Uzbekistan, analysts of the agency noted. In their opinion, improving institutional stability, the quality of corporate governance, transparency and approximation of reporting to international standards is a key task for the country's enterprises.

The regulatory environment is evolving towards an increased role for market mechanisms, however, in Fitch's view, the pace and timing will depend on social and political considerations.

The total external debt of Uzbekistan in the first nine months of 2021 increased by $ 3.7 billion - to $ 37.6 billion.

 

gazeta.uz

In the format of a video conference, under the leadership of Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a meeting was held on the study of the current state and urgent tasks in the field of investment activities in the Republic of Karakalpakstan and the Khorezm region. The meeting was attended by the heads of ministries, departments, industry associations, commercial banks, local authorities of the Republic of Karakalpakstan, regions and the city of Tashkent, representatives of diplomatic missions of Uzbekistan abroad, as well as entrepreneurs from the two regions under consideration.

The results of the work carried out by responsible leaders to stimulate the development of industry, attract investment, increase exports and socio-economic development of districts and cities in these regions were considered. It was announced that thanks to the measures taken earlier, 256 new investment projects worth 3.2 trillion soums were developed in the Republic of Karakalpakstan, which creates 18.6 thousand new jobs. This was largely achieved thanks to the applied mechanism of securing the heads of local authorities of the country's regions to districts and cities of the Republic of Karakalpakstan to interact with local entrepreneurs and provide them with practical support in the implementation of new business initiatives. It was instructed to extend the experience gained with this mechanism to the Khorezm region.

During the meeting, entrepreneurs from Karakalpakstan spoke about their experience in implementing projects and the problems they faced in the course of their activities. On all the issues raised, a comprehensive analysis was carried out and mechanisms for solving existing problems were developed with the involvement of the relevant ministries and departments.

The activities of the country's diplomatic missions abroad, which were also assigned to the regions and cities of the Republic of Karakalpakstan and the Khorezm region, were studied in a similar format. Through the efforts of diplomats in these regions in 2021, the implementation of 83 investment projects worth $ 766.2 million was launched, with the participation of foreign investors. It was instructed to intensify the work of representatives of diplomatic missions in this direction to develop new proposals for the implementation of investment projects in these two regions, to attract foreign investors and provide practical support in establishing partnerships with local entrepreneurs.

Issues related to the implementation of state and regional investment programs in the Republic of Karakalpakstan and Khorezm region in 2022 were discussed separately. It was announced that this year in the Republic of Karakalpakstan, within the framework of the regional investment program, it is planned to implement 731 projects worth 2.7 trillion soums, which will create 13.6 thousand new jobs, and in the Khorezm region - 695 projects worth 4.6 trillion soums, due to which 14.8 thousand new jobs will be created. The heads of ministries, departments, commercial banks and local authorities were given specific instructions to effectively monitor the implementation of each project and develop mechanisms for interdepartmental interaction to promptly identify and resolve problems,

As a result of the meeting, additional instructions were given for the high-quality and timely implementation of the assigned tasks.

 

mift.uz

On January 7 of this year, in Khiva, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with the heads and employees of regional and city divisions of the Ministry of Investment and Foreign Trade in the Khorezm region.

The meeting discussed the practical aspects of introducing a new system for stimulating investment, industrial development and increasing export potential in districts and cities of the region.

New methods were considered for studying the economic potential on the ground, developing promising high-margin projects, project management, working with entrepreneurs and monitoring the functioning of the production facilities being commissioned.

It was noted that in accordance with the new system, each project implemented in the region provides for the assignment of a responsible employee - a "project manager", whose task will be to assist project initiators in the preparation of a business plan and project documentation, obtaining land plots and financing, resolving issues with connection to utilities, support of project implementation and solution of emerging issues. Evaluation of the effectiveness of the "project managers" will be carried out on the basis of the developed system of criteria.

Special attention was paid to the need to intensify work on the study of the current socio-economic state of the regions and cities of the region and the development of proposals to improve the quality of life of the population and increase its employment by using the existing "points of growth".

The participants of the meeting exchanged experience of practical work on the ground and shared problematic issues that take place in practice. Each case presented was worked out with the participation of heads of ministries, departments, commercial banks and local authorities, thanks to which operational measures were developed to solve the identified problems.

Also, employees of the regional and city departments of the Ministry in the Khorezm region received targeted guidelines and instructions for the effective implementation of the skills acquired in the course of working with local entrepreneurs.

 

mift.uz

Uzbekistan plans to increase electricity generation by 40 billion kilowatt-hours by 2026. This goal is set in the draft roadmap for the Development Strategy of New Uzbekistan for 2022-2026.

As a result, Uzbekistan will annually generate 110 billion kilowatt-hours by 2026, the document says.

At the same time, the share of renewable sources in the total volume of electricity generation will reach 25%.

 

www.uzdaily.uz

In Nukus, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with the heads and employees of all regional divisions of the Ministry of Investments and Foreign Trade in the Republic of Karakalpakstan.

The main topic of the meeting was a new system of incentives for investment and foreign trade activities and aspects of its practical implementation in the field. The meeting participants comprehensively discussed a wide range of issues related to new mechanisms for the development of investment projects, project management, interaction with entrepreneurs, monitoring of commissioned production facilities, as well as coordination of ministries and departments in the process of providing practical support to initiators of investment projects.

The work of project groups created in the region has been studied, the tasks of which are to analyze the unused economic potential of the region, formulate strategies and concepts for the development of regions and cities, as well as develop economically significant projects.

Employees of district and city departments, using the example of specific cases and projects, shared their personal experience of testing the new system in reporting areas and voiced several problems they encountered in the course of their work. Each case was comprehensively considered, and the heads of the relevant ministries and departments were given the necessary instructions.

Also, during the discussion, the participants had the opportunity to voice their ideas and proposals for the effective use of the new system, taking into account the specifics of a particular region.

As a result of the meeting, its participants were given detailed explanations on issues of interest and additional instructions on the high-quality organization of work in the field.

 

mift.uz

On January 6 of this year, the Working Group under the leadership of Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov left for the Republic of Karakalpakstan in order to study the current state of socio-economic development and develop proposals for using the existing investment, industrial and export potential of the region.

During the visit, the members of the working group visited a number of production facilities, where they studied the technological process of production and held meetings with the initiators of the projects, during which they discussed the prospects for expanding activities in the region, attracting additional investments and organizing the export of manufactured products.

It was announced that the economic potential of the region in many areas remains unused, and therefore it is necessary to intensify the work on studying the available reserves and opportunities for the development of industry in priority sectors in the context of districts and makhallas, with the creation of value chains.

During the meetings, entrepreneurs raised the problems they encountered in the process of organizing production activities. All the issues raised were thoroughly studied, algorithms for their solution were developed and appropriate instructions were given to responsible leaders.

 

mift.uz

In Uzbekistan, prices in the consumer sector in 2021 increased by an average of 9.98%. This was announced by the  State Statistics Committee of the republic. For comparison: last year the indicator was at the level of 11.14%, and in 2019 - 15.2%. 

Inflation of 9.98% is in line with the scenario of the Central Bank, which forecasted inflation of up to 10%. 

In general, in 2021, food prices increased the most - by 13%. Non-food products and services increased over the year by 7.8% and 7.7%, respectively. 

Among food products, the Top 3 leaders in terms of growth included sunflower (33.2%) and cottonseed oil (29.5%) and sugar (25.4%). Among non-food products, the cost of gasoline increased above the average (1.6 times). The price of cold water supply and sewerage services increased by the same amount.

 

kursiv.uz

On January 5 of this year, under the leadership of Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, a meeting was held in a hybrid format to discuss the results of investment and foreign trade activities in 2021 and measures to further stimulate investment attraction and increase exports in 2022 , as well as other urgent tasks.

The meeting was attended by the heads of ministries and departments, industry associations, commercial banks and local authorities of regions, the Republic of Karakalpakstan and the city of Tashkent.

The operational data on the results of investment activities achieved in 2021 were announced. Thus, the total volume of utilized investments amounted to 254 trillion soums with a growth rate of 109 percent in relation to 2020, of which direct foreign investments amounted to 8.6 billion dollars. In the reporting period, within the framework of the State Investment Program, 318 large investment projects worth $ 5.9 billion were implemented, and within the framework of regional investment programs - 15,710 projects worth $ 7.4 billion. In total, due to the implementation of these projects, more than 275 thousand new jobs were created. Instructions were given to improve the mechanisms of work to stimulate investment attraction and provide practical support to the initiators of investment projects,

The results of the work carried out to "rehabilitate" the idle and not fully loaded production facilities were considered. At the end of the past year, the activities of 2,040 such enterprises were studied and specific measures were taken to provide financial support to entrepreneurs and solve existing problems. As a result, 1,908 enterprises (94 percent) established production with full capacity utilization, which allowed the domestic industry to additionally produce products worth 4.1 trillion soums, carry out additional exports worth $ 184 million and restore about 25 thousand jobs. ... Also, 152 units of unused technological equipment were put into operation, which in turn made it possible to create 1,257 new jobs.

Reports were heard on the measures taken to introduce a new system to stimulate investment activity and support the implementation of projects. It was instructed to accelerate the formation of regional project groups and establish their close interaction with assistants to the khokims of districts and cities on the development of entrepreneurship, ensuring employment of the population and reducing poverty, operating in each mahalla.

The tasks of increasing the export potential and increasing the volume of exported products in 2022 were considered. It was instructed to form an address schedule of shipments indicating specific exporting enterprises, customers and product volumes in order to promptly resolve issues faced by domestic exporters.

Issues related to the implementation of projects financed by international financial institutions and foreign government financial organizations, the progress of negotiations on Uzbekistan's accession to the World Trade Organization, measures to expand transport infrastructure and build up logistics capacities in the country, and others were considered separately. urgent tasks.

As a result of the meeting, additional targeted instructions were given with the distribution of specific tasks and deadlines among responsible leaders.

 

mift.uz

 

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Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held a meeting on the further expansion of cooperation with the Republic of India and the People's Republic of China.

The meeting was attended by the heads of ministries, departments, industry associations, commercial banks, local authorities of regions, the Republic of Karakalpakstan and the city of Tashkent, as well as the country's diplomatic missions in India and China.

The agenda of bilateral cooperation with India was substantively considered: investment, trade, economic, cultural and humanitarian partnership, progress in implementing joint projects and new areas of interaction. The results of the visit of the delegation of Uzbekistan to India in December 2021, the purpose of which was to study new projects and initiatives, together with relevant ministries, departments and companies of India, were discussed. It was noted that a new comprehensive cooperation program is currently being developed, which includes specific projects and activities in the areas of healthcare, pharmaceuticals, energy, industry, agriculture, infrastructure development, education and information and communication technologies.

The heads of ministries and departments were given targeted instructions to work out all the existing issues with Indian partners in order to reach firm agreements in the near future. It was also instructed to intensify work in all areas in order to develop additional proposals for expanding cooperation.

Issues related to the organization and holding of the 13th meeting of the Uzbek-Indian Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, as well as a business forum with the participation of business circles of the two countries were discussed separately.

Measures to deepen multifaceted cooperation with China were discussed in a similar format. It was emphasized that against the background of steadily growing indicators of investment partnerships and mutual trade, there are currently ample opportunities and significant untapped potential for expanding the economic partnership of the two states.

A wide range of issues of intergovernmental and interdepartmental cooperation was considered, including measures to organize a number of bilateral events. It was instructed to take measures to fill the economic agenda of the planned events and develop new proposals to expand interaction and implement new projects and programs together with Chinese partners.

Special attention was paid to measures to organize the activities of the Uzbekistan-SCO industrial zone. Responsible managers were instructed to speed up work on solving issues related to the creation of the necessary infrastructure, the development of promising investment projects and the attraction of potential investors for their implementation.

As a result of the meeting, the heads of ministries, departments, commercial banks, local authorities and diplomatic missions of Uzbekistan in India and China were given additional instructions and directives within the framework of fulfilling the assigned tasks.

 
 
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It is planned to eliminate monopolies in over 25 types of activities by abolishing exclusive rights and privatizing companies with state participation in order to reduce state interference in the economy and create wide opportunities for the private sector. This is stated in the draft Development Strategy for 2022-2026. Including; 

- in 2022 - 14 types of activities, including services for the supply of liquefied gas to the population and social facilities, as well as certification services;

- in 2023–2025 - 11 types of activities, including services for the storage of petroleum products, provision of additional services in the field of railway transportation, operation of airport and terminal complexes, collection, transportation, disposal and processing of solid waste, railway forwarding services.

 

www.uzdaily.uz

Measures will be taken to increase the energy efficiency of the economy of Uzbekistan by 20 percent by 2026 and reduce by 10 percent the volume of emissions of harmful gases into the atmosphere by actively introducing green economy technologies in all areas. This is stated in the draft Development Strategy for 2022-2026.

To achieve these indicators, the following projects will be submitted to the Cabinet of Ministers:

The Ministry of Energy by 1 March 2022 - programs to expand and support the use of renewable energy sources, improve energy efficiency of social, commercial and administrative buildings and structures;

To the Ministry of Innovative Development, by 1 May 2022 - a program for creating a technology for obtaining, storing and transferring hydrogen energy;

To the Ministry of Economic Development and Poverty Reduction, by 1 June 2022, programs for the transition to a green economy and energy conservation to reduce losses in industries and increase the efficiency of resource use, as well as create a system to stimulate the production and operation of electric vehicles.

- in 2022 - 14 types of activities, including services for the supply of liquefied gas to the population and social facilities, as well as certification services;

- in 2023–2025 - 11 types of activities, including services for the storage of petroleum products, provision of additional services in the field of railway transportation, operation of airport and terminal complexes, collection, transportation, disposal and processing of solid waste, railway forwarding services.

 

www.uzdaily.uz

It is planned to continue work on creating additional facilities for the development of entrepreneurship in areas with "difficult" conditions based on the experience of establishing special tax rates for the Muynak region of the Republic of Karakalpakstan. This is stated in the draft Development Strategy for 2022-2026.

Until January 1, 2025, they will introduce a system of payment by new business entities of turnover tax at a rate of 1 percent, income tax in an amount reduced by 50 percent of the established tax rate, land tax from legal entities and property tax of legal entities - at a rate of 1 percent of the accrued amount, in the following areas:

- Chirakchi, Dekhkanabad, Kasba, Mirishkor and Nishan districts of the Kashkadarya region;

- Tamdynsky, Uchkuduksky, Kanimekhsky and Nuratinsky districts of Navoi region;

- Buka, Pskent, Akkurgan and Bekabad districts of Tashkent region.

In addition, in 2022, the project intends to introduce a procedure for the phased inclusion of all mandatory requirements in the field of entrepreneurship into a single electronic register with the revision of duplicate and no longer relevant mandatory requirements. 

 

www.uzdaily.uz

On December 29 of this year, in the format of a video conference chaired by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov, the first meeting of the Council of the Uzbek-Kyrgyz Development Fund was held.

The agenda of the meeting included a number of issues related to the organization of the Fund's practical activities and financing of promising investment projects. During the meeting, the organizational structure, the budget of the Fund, as well as a number of internal regulations governing the work procedure, investment, credit and accounting policies of the Fund were considered and approved.

In accordance with the approved documents, the Fund acts as a tool for financing promising investment projects, not only at its own expense but also by attracting other commercial sources - international financial institutions, commercial banks, investment companies, and funds.

The priority task of the Fund was identified - financing investment projects aimed at implementing joint ventures in agriculture, industry, as well as transport and logistics. The implementation of these projects will contribute to the development of industrial cooperation and the creation of interconnected value chains between Uzbek and Kyrgyz producers through the use of the competitive advantages of the economies of the two countries.

For reference: The Uzbek-Kyrgyz Development Fund was created to strengthen economic cooperation between the Republic of Uzbekistan and the Kyrgyz Republic, to modernize and develop the economies of the two countries, as well as to effectively use the opportunities for bilateral cooperation by financing priority mutually beneficial investment projects. The corresponding Agreement was ratified by both member states in November this year.

 

On December 28 of this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov discussed with the heads of all diplomatic missions of the country abroad the results achieved at the end of the year in the field of international cooperation.

The diplomats presented reports on the work done this year to deepen bilateral cooperation with each individual country in the political, diplomatic, investment, trade, economic, cultural, humanitarian and other spheres, and also reported on the priority tasks in each area for the coming year.

It was emphasized that the general goal for the near future should be to strengthen international relations in order to ensure accelerated economic growth, increase the country's investment, industrial and export potential, as well as further integrate the national economy into the world economic system.

It was pointed out the need to increase the involvement of the country's embassies abroad in the formation of new investment projects aimed at the production of high-tech import-substituting products, interaction with industry associations and regional administrations, and attracting foreign investors to their implementation.

They also noted the urgency of expanding the participation of diplomatic missions in promoting national exports by actively studying the situation in foreign markets, establishing relations with new companies - potential customers for domestic producers, identifying and taking practical measures to eliminate various kinds of barriers in foreign trade, as well as mobilizing additional export reserves of sectoral and regional enterprises, aiming at a significant increase in export performance by the end of 2022.

The role of diplomats in interaction with international financial institutions, foreign government financial organizations and donors in order to increase the volume of attracted financial, technical and grant assistance in the implementation of projects in Uzbekistan was also emphasized.

Also, the heads of diplomatic missions were assigned specific tasks in the field of international cooperation, in particular, within the framework of Uzbekistan's chairmanship in 2020 in the Shanghai Cooperation Organization, the Organization for Economic Cooperation and participation in other international and interregional organizations.

As a result of the discussion, certain issues related to the development of foreign economic activity were considered and targeted instructions were given to responsible leaders.

 

https://mift.uz/ru/news/obsuzhdeny-voprosy-uglublenija-mezhdunarodnogo-sotrudnichestva#gallery-6

Uzbekistan diplomats held talks with Managing Executive Officer of Japan’s ASICS Corporation Kodama Koichiro to discuss the prospects of implementing joint projects for the production of branded sportswear and footwear in Uzbekistan, reports “Dunyo” IA correspondent.

The investment potential, the state of development of the textile and leather industry of Uzbekistan, the production activities of companies belonging to Uztuqimachiliksanoat and Uzcharmsanoat Associations were presented. Kodama Koichiro was also informed about the activities of clusters for the production of finished products with high added value in the textile industry, as well as products manufactured under internationally recognized brands in the leather industry.

The Uzbek side proposed to establish the production of sports products under the ASICS brand in Uzbekistan, taking into account the availability of appropriate capacities, available logistics and other infrastructure, available labor, provided benefits and preferences, a large geographical coverage and opportunities to export products to other countries, including European countries within the framework of GSP+.

ASICS Corporation is a Japanese multinational corporation that produces sports equipment designed for a wide range of different sports. In recent years, the sneakers manufactured by the company have been rated as one of the best on the market. Products manufactured and sold under the ASICS brand include shoes, clothing and accessories.

 

dunyo.info

An overseas warehouse of Tashkent, Uzbekistan, was unveiled in northwest China's Gansu Province on Monday in a bid to facilitate cross-border trade.

The warehouse, with a total storage space of 9,000 cubic meters, is located in the bonded logistics center of the International Land Port of Gansu (Lanzhou). It will mainly help facilitate the inflow of goods into China from Uzbekistan.

The warehouse will help reduce the delivery time for commodities from around 30 days to three or four days, and facilitate large-quantity transportation for companies, according to Sun Wei, chairman with Lanzhou International Land Port Investment Development Co., Ltd., the operator of the warehouse.

An overseas warehouse for Gansu Province was set up in Tashkent, Uzbekistan, in October this year.

The establishment of the overseas warehouse will help Gansu tap the central Asian market and facilitate trade and exchanges between the two sides, said Sun. 

 

www.xinhuanet.com

The Cabinet of Ministers adopted a decree on introducing amendments to a number of documents aimed at expanding the access of the population and business to public services. The document is available in the Lex.uz database.

According to the amendments, the registration of a business entity will become cheaper. If earlier the fee upon receipt of a registration certificate was 1 BRV (270,000 soums), now it is 20% of BRV (54,000 soums) .

When filing an application through the Single E-Services Portal, the fee will be reduced by 10% - up to 48,600 soums.

In addition, if the re-registration is refused, the entrepreneur is entitled to re-send the application within 5 working days without paying the state duty.

The registration of legal consulting firms is simplified. The judicial authorities should consider the documents on consultants provided by the registered firm in one day instead of three.

It will become easier to obtain a license to practice law - the application will be considered within 10 working days (now 20), issuing a duplicate license will take 2 working days (now 3).

The requirement for the provision of services to provide a paper receipt for payment of state fees is canceled. In addition, when receiving a number of services, they will no longer require a copy of the certificate of registration of a legal entity.

In a number of regulations for the provision of public services, a rule has also been added, according to which persons with disabilities, as well as those registered in the register of social protection, pay state duties and fees with a 50% discount.

In November 2021, the Business Activity Index (BAI) increased by 3.4% compared to October to 1034 points, said the Center for Economic Research and Reforms (CERR) of Uzbekistan, which calculates the indicator. 

This growth was positively impacted by the number of interbank payment transactions in November, which increased to 5.17 million (+ 6.2%). The number of transactions on the commodity exchange also went up (+ 6.2%).

The index was negatively affected by a decrease in the number of operating business entities in November by almost 16.4 thousand. The total number dropped to 569.3 thousand. There were six fewer large enterprises.

Earlier, the BAI increased in October by 7.4% compared to September.

kursiv.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held negotiations with the leaders of leading Indian universities to expand cooperation in the fields of education and health.

The videoconference was attended by the management of AMITI University, which opened a branch in Tashkent in 2019, Sharda Group, whose branch has also been operating in Andijan since 2019, and Sambhram Group, which has established a branch in Jizzak since July of this year.

During the talks, they noted the significant potential for mutually beneficial multifaceted partnership in the areas under consideration, as well as the interest of Indian educational institutions to expand their activities in Uzbekistan.

In particular, the prospects of opening medical faculties and corresponding clinics at the branches of Indian universities in Uzbekistan were considered. The Indian side expressed interest in training health professionals in such areas as surgery, orthopedics, radiology, dermatology, ophthalmology, pediatrics and psychiatry with the provision of further employment of students in specialized institutions of the country. The possibilities for establishing in Uzbekistan the production of demanded medicines based on advanced Indian technologies were discussed separately. It was also discussed that a number of other companies and universities in India expressed interest in creating universities and medical centers in Uzbekistan.

The Uzbek side expressed its readiness to provide comprehensive practical assistance in the implementation of joint projects and training programs. Further steps were outlined to develop promising initiatives and a format for interaction with the involvement of relevant ministries and departments of Uzbekistan was determined.

 

mift.uz

On December 22 of this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held talks with Vice President for Economic Affairs of the Islamic Republic of Iran M. Rezai.

During the talks, the sides discussed the current state and prospects for expanding bilateral economic cooperation. The parties noted that mutual contacts of the Heads of the two states during the recent summit of the Shanghai Cooperation Organization (SCO) and the 15th summit of the Economic Cooperation Organization (ECO) served as an impetus for further intensification of Uzbek-Iranian relations, and also expressed their commitment to joint work to implement the achieved agreements.

Focusing on the field of investment cooperation, the parties emphasized the wide opportunities for the implementation of new projects in the production of building materials, construction, agriculture, fish farming, pharmaceuticals, electrical engineering, chemical and light industries. An agreement was reached on the study and search for partners for the implementation of new promising projects.

Special attention was paid to the area of ​​mutual trade. The positive dynamics of the Uzbek-Iranian trade was noted with satisfaction: in January-November this year, the growth of mutual trade increased by 74.4 percent. An understanding was reached on the need to intensify interaction to strengthen trade relations between the two countries, in connection with which the parties agreed to intensify joint work on the draft Agreement on preferential trade between Uzbekistan and Iran.

They also touched upon the prospects for expanding cooperation in the transport and logistics sector.

They discussed the organization of a number of bilateral events in the near future, including the 14th meeting of the Intergovernmental Commission on Trade, Economic and Scientific and Technical Cooperation, as well as a business forum with the participation of representatives of the business communities of the two countries.

As a result of the negotiations, an agreement was reached on the development and approval of the "Road Map" to expand cooperation between Uzbekistan and Iran in the fields of investment, industry, trade and transport.

 

Presidential Decree “On measures to expand the territory of the free economic zone “Termez” was adopted.

According to the document, the territory of the FEZ "Termez" includes the territory of the FEZ "Boysun-Pharm". The State Unitary Enterprise "Directorate of the Free Economic Zone" Boysun-Pharm "is being liquidated.

The participants of the FEZ "Baysun-Pharm" are the participants of the FEZ "Termez" from the date of the liquidation of the FEZ "Baysun-Pharm". At the same time, no fee is charged for inclusion in the register of participants in the FEZ "Termez". All the benefits and guarantees established by law are fully extended to business entities that have become members of the Termez FEZ.

Allocation of land plots for the implementation of investment projects on the territory of the FEZ "Termez", including the annexed territories, is carried out in accordance with the Presidential Decree No.UP-5600 from 21 December  2018 through an electronic online auction.

 

www.uzdaily.uz

Deputy Prime Minister of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held a meeting with the heads of industry associations, state industrial enterprises and holding companies to discuss issues of stimulating intra- and inter-industry cooperation and localization of industrial production. The videoconference was also attended by the leadership of the Administration of the President of the Republic of Uzbekistan.

During the meeting, heads of industries and state-owned enterprises made presentations on the work carried out to study the structure of imports in a particular industry, developed projects aimed at replacing imports of certain types of products by establishing cooperation with local manufacturers and creating new high-tech industries.

The measures taken for import substitution in certain industries and enterprises were critically examined - it was pointed out the need for a deeper analysis of the supply in the domestic market in order to find additional opportunities for establishing partnerships with local producers. Separate instructions were given to finalize the submitted projects in order to increase the level of localization of production and reduce dependence on imports.

They also noted the importance of studying the degree of utilization of existing production facilities and searching for unused reserves to increase the volume of production in demand by domestic industrial enterprises. At the same time, the relevance of both mastering the production of new types of goods and expanding the production of already localized products at existing facilities was emphasized.

Responsible managers were instructed to step up work to remove barriers to the development of intra- and inter-sectoral cooperation, accelerate the introduction of advanced technologies and technical standards, taking into account the competitive advantages of foreign manufacturers.

As a result of the meeting, it was instructed to develop, within each industry, new import-substituting investment projects aimed at building sustainable value chains based on domestic enterprises and increasing the country's industrial potential.

 

mift.uz

December 21. Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov took part in the work of the Tashkent Youth Forum, where he spoke to young people, talking about the existing mechanisms to support young entrepreneurs and the prospects for increasing their activity in the investment environment.

During the speech, the success of the large-scale socio-economic reforms carried out in the country, which received recognition from the international community, confident steps towards the country's integration into the world economy, as well as the growing interest in Uzbekistan from foreign investors, international financial institutions and organizations, were noted.

The positive dynamics of attracting foreign investment and the progress achieved in the implementation of large projects jointly with leading foreign companies and development partners in the areas of green energy, infrastructure development and other priority areas were emphasized.

Special attention was paid to the measures taken to stimulate the development of the system of vocational and higher education, as a key factor in increasing the competitiveness of the economy. These measures include active interaction with leading foreign universities, the implementation of joint educational programs, internships and refresher courses.

The creation of the Tashkent Investment and Financial Center was also announced - a unified platform providing extensive access to capital and a wide range of financial services and investment instruments, which is designed to become a financial bridge between Uzbekistan and leading international financial centers.

In his speech, S. Umurzakov dwelled on the results of the implementation of programs to support youth entrepreneurship. So, in particular, it was announced that over the past year, 192 youth industrial and entrepreneurial zones were created in the country, in which 185 projects with a total value of 345.4 billion soums were implemented, due to which about 3.5 thousand new jobs were created. ... At the same time, more than 1.7 thousand projects totaling 3.1 trillion soums are under implementation, which will additionally create 36.4 thousand new jobs. In addition, with the assistance of the Youth Entrepreneurship Support Fund, 163 investment projects worth 110.9 billion soums were financed.

During the event, the problems identified in the process of interacting with young people and providing them with practical support in the implementation of their projects and business ideas were also considered, including a high level of bureaucracy in the country's commercial banks, the lack of start-up capital among young entrepreneurs, relevant knowledge and experience for doing business and other factors.

It was announced that the Ministry of Investment and Foreign Trade is launching a competition for the 100 best innovative investment projects designed to unleash the potential of youth in the investment environment and stimulate the development of youth entrepreneurship.

During the event, participants had the opportunity to communicate directly with the Deputy Prime Minister, voice promising ideas and proposals, and ask questions on topics of interest. Moreover, representatives of young people raised particular problems that they encountered in the course of entrepreneurial activity. These problems were considered directly on the sidelines of the forum, and their solution was taken under control by the leadership of the Ministry of Investment and Foreign Trade, as well as by the responsible officials of the Cabinet of Ministers.

 

mift.uz

In January-November 2021, Uzbekistan’s foreign trade turnover reached US$37.94 billion, which, compared to the same period in 2020, increased by US$4.95 billion (an increase of 15.0%). This was reported by the State Statistics Committee of Uzbekistan.

Of the total volume of the foreign trade turnover, exports amounted to US$15.45 billion (an increase of 8.9% was noted by January-November 2020), and imports - US$22.48 billion (an increase of 19.7%)

As a result, the foreign trade balance amounted to a passive balance of US$7.02 billion.

Among the 20 large partner countries in foreign economic activity, there is also an active foreign trade balance with four countries, in particular with such as Afghanistan, Kyrgyzstan, Tajikistan and Turkey. A passive balance of foreign trade turnover remains with the remaining 16 countries.

Today, Uzbekistan carries out trade relations with 181 countries of the world. The largest volume of foreign trade turnover was recorded with the PRC (17.7%), the Russian Federation (17.4%), Kazakhstan (9.3%), Turkey (8.0%), the Republic of Korea (4.4%), Kyrgyzstan (2.2%) and Germany (1.8%).

In the structure of the foreign trade turnover of the republic, a significant share is noted in Tashkent, which is 38.7%, or US$14.67 billion, and the smallest share is recorded at 1.0%, or US$389.7 million, which is noted in Surkhandarya region

The share of foreign trade turnover of the CIS countries, compared to the same period in 2020, increased by 32.0% and their share in foreign trade turnover, in January-November 2021, amounted to 36.7%.

The volume of foreign trade turnover of other states in January-November 2021, compared to the same period of 2019-2020, respectively increased by 7.0% and amounted to 63.3% of the total foreign trade turnover.

The foreign trade turnover of the Republic of Uzbekistan with the CIS countries reached US$13.91 billion, of which the volume of exports amounted to US$4.85 billion, and the volume of imports - US$9.05 billion.

The largest volume of foreign trade turnover with the CIS countries was recorded with the Russian Federation (47.5%), Kazakhstan (25.4%) and Kyrgyzstan (6.1%).

The foreign trade turnover of the Republic of Uzbekistan with the EAEU countries made up US$11.34 billion, of which the volume of exports amounted to US$3.7 billion, and the volume of imports - US$7.64 billion.

In January-November 2021, the total number of exporting entities amounted to 6,282, which brought the volume of exports without gold to US$11.35 billion (an increase compared to the same period in 2020 was 35.2%).

In the structure of exports, 85.1% are goods, which mainly fall on industrial goods (25.6%), food products and live animals (8.0%), chemicals and similar products (6.5%).

Due to a decrease in exports to other foreign countries, the share of exports to the CIS countries increased and their share in its total volume amounted to 31.4%.

Compared to 2019-2020, our main partners in the export of goods and services in foreign trade in January-November 2021 were countries such as China, the Russian Federation, Turkey, Kazakhstan, Kyrgyzstan, Afghanistan and Tajikistan. Their share in the total export volume reached 55.2%.

In the structure of the republic’s exports, a significant share was noted in the city of Tashkent, which is 22.7%, or US$3.5 billion, and the smallest share was recorded at the level of 1.2%, or US$179.6 million in Jizzakh region.

The volume of exports of fruit and vegetable products amounted to 1,392.6 thousand tons and, in value terms, exceeded US$863.1 million (the rate of decline, compared to the same period in 2020, respectively, amounted to 7.8%). Based on this, 726.3 thousand tons of vegetables were exported for US$353.2 million, as well as 301.3 thousand tons of fruits and berries for US$263.4 million.

In January-November 2021, the share of fruits and vegetables in total exports amounted to 5.6%.

The main export markets for fruit and vegetable products are in the Russian Federation, Kazakhstan, Kyrgyzstan and the PRC.

According to the results of January-November 2021, the largest volume in value terms of exports of fruits and vegetables falls on the Russian Federation (31.5% of the total volume of fruits and vegetables), which exceeds the volume of exports to China by 3.2 times.

According to the results of January-November 2021, the export of textile products was carried out in the amount of US$2.65 billion, which amounted to 17.1% of the total export volume and, compared to January-November 2020, it increased by 56.6%.

In the structure of export of textile products, the main share is taken by cotton yarn (55.5%), as well as finished knitwear and garments (22.0%). In January-November 2021, more than 506 types of textile products were exported to 64 countries of the world.

The largest share of textile exports falls on the Russian Federation (US$820.2 million - 31.0%) and China (US$609.3 million - 23.0%).

The volume of exports of services in January-November 2021 amounted to US$2.3 billion, or 14.9% of the total volume of trade exports and increased, compared to the same period in 2020, by 26.5%.

Transport services (69.0%), travel (tourism) (15.4%), telecommunications, computer and information services (7.0%), and other business services (4.5%) account for the lion’s share of the export of services.

At the same time, other services (4.1%), respectively, account for the largest share of financial services (1.1%), insurance and pension services (1.1%), construction services (0.6%), etc.

During the reporting period, imports amounted to US$22.48 billion (an increase in growth rates compared to January-November 2020 amounted to 19.7%). The main share in its structure is occupied by machinery and transport equipment (32.8%), industrial goods (18.5%), as well as chemicals and similar products (14.5%).

An analysis of the dynamics of imports of goods also showed that in January-November 2021, compared to the same period in 2020, the volume of imports of goods increased by US$3.19 billion and amounted to US$20.94 billion, and imports of services reached US$1.54 billion.

The share of imports from the CIS countries, compared to the same period in 2020, increased by 3.9% and their share in foreign trade turnover, in January-November 2021, amounted to 40.3%.

In general, in January-November 2021, goods and services from 155 countries were imported to the Republic of Uzbekistan. A third of imports are from such large partner countries as the Russian Federation, China, Kazakhstan, the Republic of Korea, Turkey, Germany and Turkmenistan.

In the structure of imports of the republic, a significant share is noted in the city of Tashkent, which is 49.7%, or US$11.16 billion, and the smallest share is recorded in Surkhandarya - 0.8%, or US$185.5 million.

The volume of imports of services in January-November 2021 amounted to US$1.54 billion, or 6.9% of its total volume, and increased by 48.2% compared to the same period in 2020. Travel (tourism - 50.1%), transport services (11.6%), other business services (10.6%), telecommunications, computer and information services (8.0%) account for the bulk of imports of services.

In addition, other services accounted for 19.8% of total imports of services, including a high share of construction services (7.7%), fees for the use of intellectual property (4.4%), maintenance and repair services (3.5%), etc.

At the end of January-November 2021, in the structure of imports, the volume of machinery and transport equipment reached US$7.37 billion and increased, compared to the same period in 2020, by 4.3%, in general, the share in the total volume of imports amounted to 32.8%.

Imports of machinery and transport equipment increased by US$304.8 million. Most of the supply of these goods to the country falls on the PRC - US$2.45 billion (33.3%), the Republic of Korea - US$1.1 billion (15.0%) and the Russian Federation - m763.2 million (10.4%).

In January-November 2021, the volume of industrial goods in the structure of imports reached US$4.16 billion and increased, compared to the same period in 2020, by 29.2%, in general, the share in the total volume of imports was 18.5%.

The main imports of industrial goods are cast iron and steel (US$1.81 billion), metal products (US$511.0 million), products from nonmetallic minerals (US$343.0 million), textile yarn, fabrics, finished products (US$345.4 million), etc.

 

www.uzdaily.uz

 

The government said that Uzbekistan has pledged to start work on the railway that connects Tashkent to Afghanistan and Islamabad in the spring.

The railway will connect South Asian nations to Central Asia.

The length of the railway between Kabul and Peshawar is estimated to be around 573 km. The construction will cost $4.8 billion.

“This is a big project. Every country has its role in it. Every country will allocate funds for its construction. The technical affairs have yet to be finalized. A delegation will soon visit Uzbekistan to discuss the technical issues,” said Ahmad Wail Haqmal, a spokesman for the Ministry of Finance.

“It was pledged that the project will begin in the spring of the coming year,” said Inamullah Samangani, deputy spokesman for the Islamic Emirate.

“They (relevant countries) are seeking to connect Central Asia to South Asia via the railway crossing Afghanistan,” said Bakht Rahman Sharafat, deputy minister of public works.

Some economists said that the connection between Central Asia and South Asia via Afghanistan would benefit the country.

“This is very important and valuable for economic progress and the facilitation of imports and exports,” said Abdul Naseer Rishtia, an economist.

 

www.thenews.com.pk

President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting in Seoul with the heads of leading companies and financial structures of the Republic of Korea.

The event was attended by the Minister of Trade, Industry and Energy of the Republic of Korea Moon Seung Wook, Chairman of the Korea International Trade Association Christopher Ku, heads of the Eximbank of Korea, the Korea International Cooperation Agency (KOICA), SK Ecoplant, Posco, Samsung, SK Nexilis, Youngone, KIA Motors, K-water, KT-Net and many others.

It has become a tradition to hold such meetings during foreign visits. Thus, a large-scale business forum was held as part of the state visit of the President of Uzbekistan to the Republic of Korea in 2017. And in 2019, the heads of state took part in a joint business forum in Tashkent. As a result of these events, trust between business people was strengthened, trade, economic and investment partnerships became more active. As a result, many projects have been launched. The expansion of interaction is also facilitated by serious changes in the introduction of market mechanisms in all sectors of the economy in our country. Barriers that hindered the development of joint business have been removed.

“The started transformations in our country are irreversible,” said Shavkat Mirziyoyev. - The Development Strategy of New Uzbekistan provides for the continuation of work on creating the most favorable conditions for entrepreneurs, expanding the presence of foreign business in our country. We value and value stable, trusting and dynamically developing cooperation with the Republic of Korea, a reliable friend and special strategic partner of Uzbekistan.

Systemic interaction has been built between the two states, including in the trade, economic and investment spheres. There is a special working group. Within the structure of the Ministry of Investment and Foreign Trade of Uzbekistan, a department has been created that is responsible for the development of bilateral cooperation with the Republic of Korea.

Thanks to this attention and systematic work in recent years, relations between the two countries have reached an unprecedented new level. Trade turnover doubled and amounted to $ 2.2 billion. The volume of accumulated direct Korean investments in the economy of Uzbekistan exceeded $ 7 billion. Over the past five years, the number of enterprises with Korean capital in our country has doubled. Today there are more than a thousand of them. Together with Korean companies, 52 investment projects are being implemented in Uzbekistan for a total amount of more than $ 9 billion.

The head of our state called on Korean companies to develop new breakthrough, truly large-scale joint initiatives.

Representatives of the business circles of South Korea highly appreciated the conditions for active business created in Uzbekistan and expressed great interest in the development of investment cooperation.

The meeting discussed the implementation of 40 new projects with Korean companies totaling more than $ 5 billion in areas such as digitalization, green energy, mechanical engineering, agriculture, textile industry, pharmaceuticals, geology and many other areas.

President Shavkat Mirziyoyev approved these plans, instructed the responsible persons to develop and adopt an appropriate "Roadmap" with the definition of specific terms.

“Our main goal is to make Korean business feel comfortable in Uzbekistan,” emphasized Shavkat Mirziyoyev.

The head of state invited the heads of Korean companies to visit Uzbekistan and take advantage of the favorable conditions created for foreign investors.

This concludes the state visit of the President of Uzbekistan to the Republic of Korea, the head of our state left for Tashkent.

 

president.uz

On December 17, at the residence of the President of the Republic of Korea "Chong Wa Dae" in the city of Seoul, a solemn ceremony of the official meeting of the President of the Republic of Uzbekistan took place.

A guard of honor was lined up in honor of the distinguished guest and his wife. The national anthems of the two countries were played. The solemn ceremony embodied the ancient history and bright modernity of the Country of morning freshness.

Then the heads of state held talks with the participation of official delegations of the two countries.

President of the Republic of Korea Moon Jae-in, welcoming the distinguished guest, stressed that Seoul attaches great importance to the further development of cooperation with Tashkent in the widest range of areas.

- I greet the dear Mr. Shavkat Mirziyoyev, my dear brother. Welcome to Seoul. I remember well our online meeting in January this year. This was my first summit, opening the year. Today we are meeting, spending the outgoing year in person. It is especially gratifying that it is with you that my diplomatic schedule for this year began and ends. Korea and Uzbekistan are special strategic partners. Together, various projects are being implemented in such areas as the production of agricultural equipment and electrical engineering, the power engineering industry and energy, as well as the construction of industrial enterprises. A number of important documents will be signed during your visit. We are ready to join hands with Uzbekistan, responding to global climate change, to develop cooperation in such promising areas, like the creation of smart cities, smart farms, ICT and the production of electric cars. In the coming year, the 30th anniversary of the establishment of diplomatic relations awaits us. I hope that in the new year we will jointly create a new page of prosperity.  

President Shavkat Mirziyoyev, thanked for the invitation, stressed that openness and mutual respect are a solid foundation on which relations between the two countries have historically been built.

- I am very glad to meet you. Thank you for your invitation to beautiful Korea on a state visit and for your traditionally warm welcome. The weather is cold now, but the soul of our Korean brothers is very warm. Being here, surrounded by friends, we feel at home. We treat your country and the Korean people in a special way. We have a similar mentality, traditions and moral values. The implementation of your "New Deal" has made it possible to strengthen the country's leading positions in the field of high technologies, digitalization, innovative and "green" development, to reveal the enormous intellectual potential of the talented Korean people, the President of Uzbekistan said.

Our countries have been strategic partners for 15 years. The friendship and political will of Shavkat Mirziyoyev and Moon Jae In have become powerful incentives to give new dynamics to cooperation between Uzbekistan and Korea.

This is the fourth meeting of the heads of state. In November 2017, Shavkat Mirziyoyev made his first state visit to the Republic of Korea. In April 2019, President Moon Jae-in paid a return visit to Uzbekistan, within the framework of which a Joint Declaration on a Special Strategic Partnership was adopted. A number of new topical initiatives to further strengthen ties were announced by the leaders during the online summit in January 2021.

This visit to Korea is a logical continuation of intensive dialogue.

The leader of Uzbekistan emphasized that today the very time requires us to reconsider the priorities of practical partnership in the long term. Cooperation between the two countries must fully respond to the modern challenges of the global economy.

The Republic of Korea is one of the key trade and economic partners of Uzbekistan. The turnover and the number of joint ventures have almost doubled in recent years. Despite the fallout from the pandemic, multifaceted relationships continue to evolve dynamically.

Uzbekistan and Korea have made significant progress in concluding a Free Trade Agreement. At the meeting, they expressed confidence that with its signing next year, it will be possible to increase and balance the indicators of trade.

The volume of Korean investments in the economy of Uzbekistan exceeds $ 7 billion. This year, $ 320 million were spent, which is 20 percent more than in 2020. The capital works for the implementation of joint projects in the chemical, petrochemical, textile industries, construction industry, agriculture.

Special attention should be paid to the effectiveness of long-term cooperation with the Eximbank of Korea, as well as the Economic Development and Cooperation Fund (EDCF). For example, financing through this fund alone has been increased to $ 1 billion. Solid funds are spent on the implementation of new projects in Uzbekistan until 2023.

The fruitful partnership with the Korea International Cooperation Agency (KOICA) is also expanding.

The President of Uzbekistan identified three main areas of the immediate agenda: "green" development, digitalization and strengthening of the social protection system. All promising joint projects, programs and action plans are proposed to be considered through the prism of these main priorities.

President Shavkat Mirziyoyev especially noted that by combining the human capital and natural resources of Uzbekistan with the advanced technologies and knowledge of the Republic of Korea, it is possible to create a good basis for the development of production of products in demand on the world market. In this regard, the head of our state proposed to create, with the assistance of the Economic Development Assistance Fund (EDPF), an Uzbek-Korean cluster for the production of semiconductors and electronics in the Tashkent region. On its territory will be located scientific and educational institutions, research and development centers in the field of advanced technologies.

The parties expressed their mutual intention to encourage and develop in every possible way the activities of the Textile Technopark and the Center for Agricultural Engineering, jointly created in our country.

For Uzbekistan, the achievements of Korea in the development of the "digital" economy, artificial intelligence, "smart cities", outsourcing, a new generation of communications and Internet technologies are of practical interest.

Our countries have made significant progress in the areas of health care, preschool and higher education. Since last year, the Multidisciplinary Children's Clinic has been operating in Tashkent - the first joint large project in the field of medicine.

The Korean educational model is one of the best in the world. That is why our country has completely reformed the preschool education system based on the advanced experience and knowledge of partners from Korea.

The President of Uzbekistan emphasized the importance of developing innovative cooperation between universities and proposed creating a permanent platform for their regular dialogue, holding the Forum of rectors of universities of the two countries next year.

During the talks, it was noted that one of the locomotives of economic growth in the post-pandemic period could be the tourism industry. Uzbekistan will support the participation of Korean companies in projects for the construction of hotels and infrastructure.

Next year, our countries will celebrate the 30th anniversary of the establishment of diplomatic relations and the 85th anniversary of the residence of the Korean diaspora in Uzbekistan.

The leader of our country proposed to declare 2022 the Year of Mutual Exchanges between Uzbekistan and the Republic of Korea, to implement a project to organize a Museum of Korean History, as well as a library at the House of Korean Culture and Art in Tashkent.

They also exchanged views on issues of the global and regional agenda.

Uzbekistan and Korea have similar positions on many issues. Countries support each other in the international arena. The Republic of Korea supported the election of Uzbekistan as a member of the UN Human Rights Council, as well as in favor of the candidacy of Samarkand as the venue for the 25th session of the General Assembly of the World Tourism Organization in 2023. In turn, Uzbekistan supports Korea's intention to become a non-permanent member of the UN Security Council in 2024-2025.

President Shavkat Mirziyoyev highly appreciated the growing role of the "Republic of Korea - Central Asia" Forum in contributing to the sustainable development of our region.

The leader of Uzbekistan proposed to introduce new effective mechanisms of dialogue at the level of parliaments and governments in order to promote promising projects and programs of mutually beneficial cooperation.

In terms of the significance of the decisions made and the agreements reached, the state visit of the President of our country became a historic event and laid a solid foundation for bringing relations of a special strategic partnership to an even higher level.

 

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The goal is to accelerate the transition to an inclusive and competitive market economy.

The Board of Executive Directors of the World Bank approved the provision of financing to Uzbekistan in the amount of $ 400 million, the press service of the bank told Spot.

Funds are allocated to assist in the transition to an inclusive and competitive market economy.

Uzbekistan will be provided with a concessional loan with a low interest rate of $ 250 million and a term of over 30 years, as well as a loan of $ 150 million with a market interest rate and a term of over 12 years.

The financial assistance will enable the government to implement a number of reforms, including:

  • further liberalization of the wheat market;
  • improving the management of state-owned enterprises;
  • strengthening accountability and oversight of public spending and debt;
  • combating gender discrimination in the labor market;
  • expanding the coverage of benefits for the poor;
  • expanding social protection and economic opportunities for women and people with disabilities.

“To achieve the government's goals of halving the poverty rate among the population by 2026 and joining Uzbekistan as an upper middle-income country by 2030, the national economy must grow faster. For this, it is necessary to create more jobs in the private sector and more economic opportunities for citizens, especially for women, youth and people with disabilities, - said the head of the World Bank in Uzbekistan, Marco Mantovanelli.

The World Bank Group is developing a partnership program for 2022–2026, which will outline key areas of financial and technical assistance.

 

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Samarkand region is implementing the largest investment project for the construction of a plant for the production of plant protection chemicals on the territory of the Urgut-2 FEZ of Nurabad district - Shchelkovo Agrokhim, which will become the largest enterprise of this kind in Central Asia. This became known during a press tour for media representatives, organized by the administration of the Samarkand region.

The construction of a plant for the production of plant protection chemicals in Samarkand region is another investment project of the Russian company Shchelkovo Agrokhim, equipment is being installed in the shops, a warehouse is almost ready. Delivery of the production facility is scheduled for the second quarter of 2022. The Russian side fully finances the construction.

Thanks to this project, farmers will have access to high-quality plant protection products that were previously imported from the Russian Federation. In addition, the project will make a great contribution to strengthening economic ties between the Russian Federation and the Republic of Uzbekistan.

It should be noted that recently favorable conditions have been created in the Republic for the development of entrepreneurial activity. For example, in Samarkand region there is one of the country’s largest industrial and technical clusters, the Urgut FEZ. A favorable investment climate contributes to the implementation of Shchelkovo Agrokhim’s plans. All this gives access to technologies that meet the highest requirements in this area.

“All the best that has been accumulated in the Russian company today will be sold in its subsidiary in Samarkand. The production capacity of the plant will cover the needs for chemical plant protection products not only in Uzbekistan, but will also be in demand in neighboring republics,” said Anvar Khalbaevich Mirzaev, Director General of the Russian-Uzbek JV LLC.

On 2-3 December 2021, an expanded meeting of the Intergovernmental Coordinating Council on seed production of the Commonwealth of Independent States and the Authorized States Parties to the Bishkek and Minsk Agreements on seed production was held in Samarkand.

At the event, the general director of Shchelkovo Agrokhim, Salis Karakotov, proposed creating a Central Asian breeding, seed-growing and technological center on the basis of the company’s plant being built in Samarkand. These two structures have recently shown that for the further development of agriculture in independent states, new agricultural seeds are required, which have been tested and are able to survive in different climatic conditions and give good yields.

During the meeting, the khokim of Samarkand region Erkinjon Turdimov expressed gratitude to the general director of Shchelkovo Agrokhim for the investment project for the construction of a plant for the production of chemical plant protection products and long-term scientific and practical work on the creation of new drugs, on the development of new varieties of agricultural crops, for constant operational assistance in matters of supply of plant protecting chemical products, a great contribution to the strengthening of economic ties between the Russian Federation and the Republic of Uzbekistan.

 

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Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held a meeting with President of the Korea International Cooperation Agency Sohn Hyuk-Sang.

The constructive dialogue allowed to comprehensively review the current state of multifaceted financial and technical cooperation in the field of development. It was stressed that more than 30 projects worth $130 million have been implemented since the opening of KOICA office in Uzbekistan, and more than two thousand internships for Uzbek specialists were organized in Korea. Moreover, more than 600 KOICA volunteer experts carried out their mission in Uzbekistan in healthcare, education, information technologies, utilities, agriculture, water management, energy, transport and other fields.

The course of implementation of grant projects launched this year in the fields of education, information and communication sector, ecology and medicine, as well as progress made in the implementation of the medium-term Cooperation Program for 2020-2022, signed during the state visit of the President of the Republic of Korea to the Republic of Uzbekistan in April 2019, that envisages the attraction of more than 72 million dollars of KOICA grant funds for the implementation of projects in Uzbekistan, were discussed.

The parties also noted the significant potential for further deepening mutually beneficial cooperation with the Agency and discussed the prospects for implementing new projects in such areas as digitalization, chemical industry, entrepreneurship development, ecology, landscaping and fight against viral diseases, including COVID-19.

During the meeting, a Сooperation program was agreed with the Korean International Cooperation Agency KOICA for 2022-2024, which provides for the implementation of new grant projects in the fields of preschool and vocational education, digitalization, chemistry, entrepreneurship development, ecology, landscaping and combating desertification, as well as healthcare.

Following the meeting, the parties agreed to maintain close cooperation to accelerate the progress of agreed projects and programs.

 

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Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with Deputy Prime Minister - Minister of Economy and Finance of the Republic of Korea Hong Nam-ki in Seoul.

The sides discussed an extensive agenda of multifaceted Uzbek-Korean cooperation as well as the results achieved in promoting investment, trade, economic, cultural and humanitarian partnership between the two countries.

Mutual willingness was expressed to intensify work on reviewing and agreeing on a number of new investment projects in the fields of energy, geology, electrical engineering, pharmaceuticals and healthcare, which are currently under study.

Further steps in cooperation with the Economic Development Promotion Facility (EDPF) were outlined, with a view to working together on new projects in the fields of nuclear medicine, biopharmaceuticals, electronics and infrastructure development.

It was agreed that the parties will take practical measures to accelerate the execution of projects implemented jointly with the Economic Development and Cooperation Fund EDCF under the new Cooperation Program for 2021-2023.

The successful signing of the new Cooperation Program with the Korea International Cooperation Agency KOICA for 2022-2024 was noted.

The parties welcomed the progress in the negotiation of the Free Trade Agreement, noting that this step will give a tangible impetus to the further development of trade and economic cooperation between the two countries.

The prospects for cooperation under the Official Development Assistance Program were discussed separately, with a view to implementing new projects in the fields of agriculture, agricultural engineering and the development of electric transport.

 

At the end of the meeting, the parties mutually recognized a broad front for further joint work and expressed their commitment to active interaction on the implementation of agreed projects and initiatives, as well as the development of new constructive proposals for deepening bilateral cooperation.

 

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A regular meeting of the tripartite working group on India, Iran and Uzbekistan on the use of the port of Chabahar was held.

The meeting was chaired by A. Muminov, Deputy Minister of Transport of the Republic of Uzbekistan, A. Safai, Deputy Minister of Roads and Urban Development of the Islamic Republic of Iran and S. Franja, Deputy Minister of Ports, Shipbuilding and Maritime Affairs of India.

The issues of development of cooperation in the field of transport, formation of regional and international transport and communication infrastructure were discussed at the meeting, which was organized in the form of a video conference.

In particular, the parties discussed the establishment of cooperation in the effective use of the port of Chabahar, as well as the development of mutually beneficial relations in the field of transport and logistics complex and transport corridors connecting the Central Asian region with the port.

During the meeting, the representatives of Iran and India presented investment projects on the development of the infrastructure of the port of Chabahar, as well as the terms of use of this transport, transit and logistics hub by foreign countries.

At the end of the meeting, the parties agreed to work together to study the organization of cargo transportation through the Iranian port of Chabahar, the optimization of tariffs, the timing and security of cargo delivery.

 

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In Seoul, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held talks with the President of the Eximbank of Korea Bang Moon Kyu.

The active nature of cooperation and the positive dynamics of growth in the number of projects implemented with the co-financing of the Economic Development and Cooperation Fund of the Republic of Korea EDCF were noted. So, if in 2014-2017, together with Eximbank, 4 projects were implemented for the amount of about $ 180 million, then in 2018-2020, 7 projects were already implemented for the amount of $ 660 million. The priority areas of cooperation with the Bank are healthcare, education and infrastructure development.

During the dialogue, mechanisms of interaction were considered, allowing to speed up the processes of preparation, study and approval of projects that are at the stage of elaboration with the aim of accelerating the development of the mutually beneficial partnership.

The Uzbek side expressed gratitude for the decision to increase the volume of concessional financing through EDCF in the amount of $ 1 billion to finance new investment projects in Uzbekistan. The cooperation program for 2021-2023 will include 13 projects with a total cost of $ 1.2 billion. The parties agreed to establish close cooperation on the accelerated promotion and practical implementation of these projects.

Further steps were also outlined to deepen cooperation with the newly created Foundation for the Promotion of Economic Development EDPF for the joint implementation of new projects in the fields of electrical engineering, biopharmaceuticals, metallurgy and the chemical industry.

Following the talks, the parties expressed their commitment to continuing systematic work to further develop the partnership in the designated areas. Also, loan agreements were signed for the project "Equipping medical facilities of the Republic of Uzbekistan with medical equipment" in the amount of $ 88.8 million and for the project "Construction of an oncological clinic" in the amount of $ 150 million.

 

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A meeting with the Russian company MakFine was held at the Uzcharmsanoat Association. The topic of the talks was the issues of establishing investment cooperation and the implementation of new projects.

At the beginning of the meeting, the leadership of the Association told the owner of the Russian company, Mr. Armen Avetisyan, about the production, investment and export potential of Uzbekistan in the leather, footwear and fur and fur industries. Information was also given about the conditions and opportunities created in our country for foreign investors, free economic zones and benefits provided by the state to exporting enterprises.

In turn, the head of MakFine noted that there is dynamic growth in the leather, footwear and fur and fur industries in Uzbekistan, so his company is interested in investing in Uzbekistan, in particular, in creating a joint venture in our country.

It should be noted that the main activity of the MakFine company is the wholesale of footwear. She has been working in Russia for over 20 years, and can rightfully identify herself as one of the leaders of the Russian footwear market. The company has contracts with leading factories in England, Spain, China, Italy and Russia. The main advantage of MakFine on the market is the optimal balance of price and quality.

During the talks, the head of MakFine expressed an initiative to establish cooperation with Uzbekistan and open a new enterprise here. To this end, the delegates visited and got acquainted with the production facilities located in the capital and regions of the country during the week. The company’s specialists have studied in detail the equipment, raw materials and finished products of Uzbek manufacturers.

At the end of the talks, the parties discussed in detail the prospects for bilateral cooperation.

 

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On 14 December this year, the Republican Intersectoral Industrial Fair, organized by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan jointly with the Tashkent City Khokimiyat and the Center for the Electronic Cooperation Portal, began its work at the Uzexpocentre National Exhibition Center.

Deputy Prime Minister - Minister of Investments and Foreign Trade Sardor Umurzakov made a speech at the opening ceremony.

“Events of such a large-scale nature contribute to the development of cooperation relations between large and regional enterprises, but also serve as a kind of unique free trade platform for providing participants with information about products, concluding new contracts and planning promising joint projects,” said Sardor Umurzakov.
In total, 3,185 local manufacturers take part in the Republican Intersectoral Industrial Fair with 5,169 types of products.

The fair was organized at a high level, providing for a rich business program of the event, ensuring efficiency, meaning attracting domestic entrepreneurs and manufacturers to the implementation of joint projects, establishing industrial cooperation and localizing the production of products that are in high demand in the domestic market. Special attention is paid to supporting local producers, studying the types of products produced by local enterprises, including small businesses and private entrepreneurship, as well as forming a portfolio of orders (conclusion of contracts and memoranda) to expand the scope of work in the future.

For visitors to the fair from among entrepreneurs and exporters from all regions of the republic, the Center for the Development of Investment Projects under the Ministry of Investments and Foreign Trade has prepared specific investment proposals with preliminary technical and economic calculations, formed on the basis of an in-depth analysis of industrial potential, internal market conditions, as well as the needs of local producers in raw materials and components. Entrepreneurs and potential initiators of projects on the sidelines of the exhibition had the opportunity to substantively discuss the prospects for cooperation on specific projects.

On the first day of the fair, exhibitions of export-oriented and import-substituting products and presentations of proposals for production projects for the further development of industrial cooperation are planned. It is also provided for the provision of practical assistance by specialists of the Electronic Cooperation Portal of the Republic of Uzbekistan in the process of conducting negotiations in the B2B format and concluding agreements on cooperation in the development of imported and presented samples by business entities.

The Republican Intersectoral Industrial Fair will last until 18 December 2021.

 

 

In Tashkent, on the sidelines of the International Forum of Commissioners for the Protection of the Rights of Entrepreneurs (Business Ombudsmen) of Europe and Asia "Interregional Cooperation for the Protection of Business Rights", a meeting was held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov with the Commissioner under the President Of the Russian Federation for the protection of the rights of entrepreneurs B. Titov.

During the dialogue, the sides discussed issues of bilateral interaction in the field of supporting the development of business partnerships between Russian and Uzbek entrepreneurs, as well as ensuring their legal protection.

The keen interest of business representatives of Uzbekistan and Russia in the implementation of joint projects, the establishment of industrial cooperation and the strengthening of trade ties was noted, as evidenced by the steadily growing dynamics of the Uzbek-Russian investment and trade and economic cooperation.

Mutual readiness was expressed to establish a mechanism of close interaction in order to exchange experience and successful practices in the areas of protecting the rights and interests of business, increasing the transparency of the business environment, improving the investment climate and providing practical support to entrepreneurs. As a result of the meeting, an agreement was reached to continue the dialogue within the framework of the discussed areas of cooperation.

 

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On December 13 of this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held negotiations with the Minister of Trade and Industry of the Republic of India Piyush Goyal.

During the conversation, the sides discussed the current state and prospects for the development of bilateral investment and trade and economic cooperation, the expansion of interregional interaction, the implementation of joint projects and issues related to the organization of bilateral events.

The issues of organizing a visit to Delhi of a working group headed by the leadership of the Ministry of Investment and Foreign Trade with the aim of holding meetings with relevant ministries, government bodies and private companies of India to discuss issues of cooperation and develop practical proposals and initiatives, as well as develop a program of economic cooperation between Uzbekistan and India.

Issues related to the 13th meeting of the Intergovernmental Commission on Trade, Economic and Scientific and Technical Cooperation between the Republic of Uzbekistan and the Republic of India at the beginning of 2022, as well as the organization of the participation of the heads of the regions of the Republic of Uzbekistan in the 10th Global Summit in Gujarat in January, were discussed 2022 year.

The parties discussed the practical aspects of creating an Uzbek-Indian Joint Working Group on trade and economic issues and holding its first meeting in order to systematize tasks related to economic partnership between Uzbekistan and India, and develop rational proposals for their accelerated solution. The need to apply joint efforts for the development of bilateral trade, in which there is a significant untapped potential, was emphasized. In this context, the parties expressed mutual intentions to speed up the process of preparation and signing of the Agreement on preferential trade between the Republic of Uzbekistan and the Republic of India.

The course of investment cooperation between the two countries was discussed, in which there are also great opportunities for enhancing interaction. It was noted that at present, joint work is underway on the implementation of a number of investment projects worth about $ 700 million in the areas of infrastructure development, tourism, and the pharmaceutical industry. The parties spoke in favor of the accelerated completion of the discussion of the draft Agreement on the Encouragement and Reciprocal Protection of Investments between the governments of Uzbekistan and India with a view to reaching its signing in the first quarter of next year. This step will give a new impetus to the development of investment cooperation and the rapprochement of the business communities of the two countries.

The parties also discussed the prospects for establishing interaction in the exchange of experience in stimulating the accelerated growth of various industries. An agreement was reached on practical cooperation in this direction.

They also considered measures to accelerate the development of the credit line of the Eximbank of India in the amount of $ 448 million, allocated for the implementation of a number of infrastructure and social projects in Uzbekistan.

Following the talks, further steps were identified to implement the agreements reached.

The trade turnover between Russia and Uzbekistan is planned to increase to US$10 billion. This was announced by Russian Deputy Prime Minister Victoria Abramchenko, Sputnik reported.

“By the end of 2020, trade increased by more than 15%, reaching US$5.9 billion. Our target is to increase this figure to US$10 billion,” she explained.

According to her, Uzbek agricultural products are appreciated in Russia. However, its market share is not high: only 1.1% of the total import of agricultural products and 5% of the import from the CIS countries.

 

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On 6-7 December 2021, trilateral (Uzbekistan, Afghanistan, Pakistan) and multilateral (Russia, Kazakhstan, Uzbekistan, Afghanistan, Pakistan) negotiations were held in Tashkent with the participation of responsible leaders and responsible representatives of ministries, and departments for the design and construction of the railway line "Termez - Mazar-i-Sharif - Kabul - Peshawar".

The parties noted the importance of this project in strengthening good-neighborly relations, developing interregional cooperation in the field of international transport communications and trade relations, as well as deepening cooperation in various sectors of the economy.

As a result of the meetings, the parties agreed to soon study the proposed railway lines on the spot, regularly hold meetings of working groups and involve international financial institutions in the project after the development of a preliminary feasibility study.

 

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Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with the vice-president and Prime Minister of the United Arab Emirates, Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum at the National Pavilion of Uzbekistan on the sidelines of the Global Exhibition "EXPO 2020 DUBAI".

During the dialogue, the Emirati side underlined the success of Uzbekistan in implementing large-scale reforms in all areas of socio-economic development. Prime Minister of the UAE highly appreciated Uzbekistan's participation in EXPO 2020 DUBAI with the national pavilion, noting this event as an important step in strengthening the country's image in the international arena.

The significant untapped potential in the further development of relations between the two countries was emphasized. The sides expressed mutual readiness to make every effort to enrich the agenda of bilateral cooperation in political, investment, trade, economic, cultural, and humanitarian areas.

An agreement was reached on accelerating the implementation of ongoing projects in such areas as energy, agriculture, infrastructure, and healthcare, as well as on close cooperation to expand the joint investment portfolio.

In the agenda of bilateral cooperation, the parties highlighted the successful implementation of the program to improve public administration, executed with the support of the UAE Ministry of Cabinet Affairs. The launch of the "Young Leaders Program" was highly appreciated as a new step in expanding partnership in this area of cooperation.

The two countries expressed their strong commitment to continue to consistently strengthen their mutually beneficial partnership and identified priorities for joint implementation.

The meeting also included an introductory tour to Uzbekistan's exposition, where the rich cultural and historical heritage of Uzbekistan was presented in a multimedia format. The country’s role in the formation and development of the Great Silk Road, as well as the Islamic civilization, was explained. Investment, industrial and commercial potential as well as the development strategy of Uzbekistan for the next decade was presented.

 

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Uzbekistan took seventh place in the world ranking the cheapest electricity for the population. The relevant data is provided by the British expert portal Cable.co.uk.
Resource experts analyzed electricity prices in 230 states. As it turned out, the cheapest energy sources are in North Africa, sub-Saharan Africa, and the former USSR.
In the Central Asian region, Kyrgyzstan is in the lead: it has the 4th place in the world rating, and citizens pay $ 0.017 for one kilowatt-hour of electricity.
Uzbekistan is one step ahead of Tajikistan: it is in 6th place with a price per kilowatt-hour of $ 0.023.
In the republic itself, electricity for the population costs $ 0.027. This is cheaper than Kazakhstan ($ 0.039), which holds16th place in the world ranking.
At the same time, the most expensive electricity in the world is in the Caribbean, remote island states of the Pacific Ocean, as well as in Germany and Somalia: residents of these states have to pay from 0.30 to 0.69 dollars per kilowatt-hour.
At this time, a large-scale modernization of the energy industry is underway in the Republic of Uzbekistan. Earlier, the Ministry of Energy spoke about 10 large-scale projects in the field.
At the beginning of the month, the country's authorities announced their intention to build over 20 hydroelectric power plants (HPPs) with a total capacity of 740 megawatts and mini-hydro electric power plants with a total capacity of up to 5 megawatts, which do not require the construction of dams.
Earlier, the construction of the Pskem hydroelectric power station began in the Tashkent region. Its capacity will be 400 MW, and its capacity will be 950 million kWh of electricity per year. For the construction of this facility, the Russian state corporation VEB.RF allocated a loan of $ 75 million. It is planned to spend $ 788 million on the project.
By 2030, it is planned to commission the first nuclear power plant in Uzbekistan, which will be built using Russian technologies. The countries signed the corresponding agreement in September 2018.
Construction is planned to begin in 2022 with a loan from the Russian government.
 
 

On December 8, in Dubai (UAE), within the framework of the World Exhibition "EXPO Dubai 2020" in the exhibition hall Al Wasl Plaza, the National Day of Uzbekistan was held - a large-scale solemn event dedicated to the history, modern development, and potential of our country.

The event began with a solemn raising of the national flags of the Republic of Uzbekistan and the United Arab Emirates. The ceremony was attended by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and member of the Cabinet of Ministers, Minister of Tolerance and Coexistence of the United Arab Emirates Sheikh Nahyan bin Mubarak al-Nahyan. During the welcoming addresses, the heads of the delegations emphasized the high level of relations between Uzbekistan and the UAE, the successes achieved in bilateral cooperation in the investment, trade, economic, cultural, and humanitarian spheres.

“Expo is a unique platform for public diplomacy and national branding. The participating countries demonstrate technological innovation and national cultures, interact with civil society to form a positive and distinctive national identity. Uzbekistan has been participating in International Exhibitions, as well as in Specialized Exhibitions Expo since 1993, but this is the first time that we represent our country with a national pavilion, which, I believe, is a good sign reflecting the seriousness of our intentions to strengthen ties with the UAE "- S. Umurzakov noted during his speech.

After the opening ceremony, the heads and officials of the delegations of the two countries took part in a familiarization tour of the national pavilion of Uzbekistan. The pavilion of Uzbekistan is located on an area of ​​1,739 square meters and under the motto "Mobility" conceptually represents a journey along the Great Silk Road, clearly reflects the historical milestones in the development of our country, as well as the achievements of recent years and strategies for further development. Every day the pavilion "Uzbekistan" is visited by an average of 2.5-3 thousand people.

The program of the event included a rich concert program with the participation of masters of the arts of Uzbekistan, who presented to the public the national culture and classical works. Interesting excursions around the Uzbekistan pavilion were also awaited for the guests of the evening. National Uzbek cuisine has also become an integral part of the celebration in the best traditions of the hospitality of the Uzbek people.

After that, the participants of the event visited the national pavilion of the United Arab Emirates, where a tour of the exposition was dedicated to the history of development and modern achievements of the UAE in the fields of economy, science, art, and other fields was held.

The main task of the country's participation in "EXPO-2020" is to demonstrate the appearance of modern Uzbekistan, the reforms taking place in the country, a dynamically developing economy, significant investment opportunities, cultural and historical heritage, and tourism potential. It will also certainly contribute to strengthening foreign trade and economic ties, attracting investment in promising industries, increasing tourist flows, developing cooperation in the scientific and cultural spheres, and further integrating the country into the world community.

Within the framework of participation in the exhibition, a number of events have already taken place here, introducing the heritage, culture, and potential of our country. In particular, on November 27, the premiere of the ballet performance "Lazgi - Dance of Soul and Love" was presented at the Dubai Opera. On November 29, a session of Uzbekistan was held on the topic: "The role of women in the modernization of the social life of society." On November 30, on the stage of Jubilee Park EXPO 2020, the brilliant Uzbek pianist Behzod Abduraimov demonstrated his skills to a huge international audience.

The World Expo Dubai 2020 will run until March 31, 2022.

 

mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs of the UAE, in Abu Dhabi on December 7 this year.

During the meeting, the current state and prospects for deepening bilateral cooperation in investment, trade, economic, cultural, and humanitarian areas were discussed.

The implementation status of the agreements reached during the visit of the President of the Republic of Uzbekistan to the UAE in March 2019 was reviewed. The existing issues and mechanisms for further interaction to solve the tasks were considered.

While discussing investment cooperation issues, the sides noted the high increase dynamics of the volume of Emirati investments attracted to the economy of Uzbekistan and the success of the Emirati companies in implementing projects. In particular, in August this year, Masdar commissioned Uzbekistan's first solar power plant and won tenders to build three new solar power plants: 457 MW Sherabad PVPP, 220 MW Samarkand PVPP, and 220 MW Jizzakh PVPP. The total portfolio of Masdar projects in Uzbekistan at the moment is more than $2 billion, the total generating capacity of the power plants under construction comprises 2.5 GW.

Also, successful cooperation with Abu Dhabi Fund for Development was separately noted: the program to support small and medium-sized businesses in Uzbekistan and projects in the field of education are being successfully implemented. A joint investment company set up with the Fund has been operating actively: major tourism projects are underway, as well as a portfolio of 14 promising investment projects totaling $500 million is being elaborated.

During the dialogue, priority areas for further expansion of investment cooperation were identified, including energy, agriculture, financial sector, infrastructure development, and healthcare.

Following the meeting, the sides expressed commitment to further strengthening bilateral relations, diversifying trade and investment cooperation, and attracting new investors to implement projects in Uzbekistan from among the leading companies of the UAE, which will allow to fully use the existing potential of economic partnership between the two countries.

 

mift.uz

Ambassador of Uzbekistan Mukhsinkhuja Abdurakhmonov held talks with representatives of Japan’s ITOCHU Corporation.

Representatives of ITOCHU Corporation expressed satisfaction with the accumulated experience of close cooperation between ITOCHU Corporation and companies in Uzbekistan and long-term ties in the export supply of products from Uzbekistan, as well as the implementation of joint projects.

The Japanese side confirmed the importance of cooperation in vehicle manufacturing at the SamAuto plant.

Following the meeting, representatives of ITOCHU Corporation once again focused on the fact that ISUZU and ITOCHU Corporation has made direct foreign investments in Samarkand Automobile Plant.

 

uzdaily.uz

On December 5 this year, a delegation of the Republic of Uzbekistan, headed by Deputy Prime Minister - Minister of Investments and Foreign Trade S.Umurzakov visited Astana International Financial Center (AIFC).

AIFC was established to develop a liquid and balanced capital market in the country and is a platform that provides investors with access to capital, a range of financial services and investment tools. AIFC operates under English common law, and a range of benefits and incentives are available to attract international participants to AIFC.

AIFC leaders shared their experience and achievements in improving legislation in the investment and financial sectors, reforms in the banking and financial sectors, promoting capital markets and fintech start-ups, sustainable development goals, the implementation of Islamic and "green" finance instruments as well as digitalization.

The delegation members were also familiarized with the activities of the Center's organizations and associated institutions, such as the AIFC Financial Services Regulatory Committee, the AIFC Court, the International Arbitration Center (IAC), as well as other AIFC bodies, such as the AIFC Expat Center, Bureau for Continuous Professional Development (BCPD), Fintech Hub and the AIFC Exchange.

As a result of the meeting, it was agreed to establish cooperation in various areas of mutual interest.

 

mift.uz

Identified problems and shortcomings in the field of investment and foreign trade. In particular, a transparent system for the selection and implementation of projects that are most effective for a particular region has not been introduced.

In Uzbekistan, they began to develop the National Rating of the Investment Climate of the Regions, foreign experience in this area is being studied. The task was undertaken by the specialists of the Agency for Strategic Development, said the press secretary of the department, Manzura Khasanova.
When forming the rating, surveys of business representatives will be carried out. And based on their results, analysis and assessment of the effectiveness of government agencies in solving problems related to the investment climate.
Identified problems and shortcomings in the field of investment and foreign trade. In particular, a transparent system for the selection and implementation of projects that are most effective for a particular region has not been introduced. Therefore, some existing projects operate at a loss and lose their export potential.
There are also cases of formalities and unreasonable delays in the implementation of projects due to the lack of a systematic approach to coordination and control.
To solve these problems, the agency proposes to organize a three-level system for the selection and implementation of projects on the basis of the project office under the Ministry of Investment and Foreign Trade. It is planned to organize 14 regional project groups and 207 in districts and cities.
Let us remind you that two weeks ago the Russian Agency for Strategic Initiatives (ASI) and the Agency for Strategic Development (ASD) of Uzbekistan signed a memorandum of cooperation.
As part of this document, experts from the Russian department conveyed to their Uzbek colleagues the methodology of the National Investment Climate Rating, explaining how it is calculated and what indicators are used for it.
 
 

The Uzbek-Kazakh Business Forum and an extended meeting of the Uzbek-Kazakh Business Council were held in Nur-Sultan city (Kazakhstan). The events were attended by heads of key ministries, agencies, industry associations, chambers of commerce and industry, holding companies, and representatives of the business community of the two countries.

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov and Deputy Prime Minister of the Republic of Kazakhstan R.Sklyar spoke at the opening ceremony. The heads of delegations noted the strategic nature of multifaceted cooperation between the two countries and emphasized the role of active interaction between business circles in this context.

The two governments expressed readiness to work together to create favorable conditions for direct cooperation between Uzbek and Kazakh entrepreneurs, implying the implementation of joint investment projects and activation of bilateral trade. Work in this direction is already underway: a joint "road map" for increasing mutual trade turnover has been prepared for approval, which includes specific measures on elimination of existing tariff and non-tariff barriers, creation of joint wholesale and distribution centers to organize a systematic supply of agricultural and food products and other initiatives.

Broad prospects for establishing industrial cooperation between producers of the two countries and the formation of continuous value chains, taking into account the comparative advantages of the economies of Uzbekistan and Kazakhstan were noted. Concrete examples of cooperation in this area were given – currently, a number of enterprises in the textile, automotive, mining, construction, and other industries have been successfully launched on the territory of the two countries. Certain progress has been made in the implementation of a separate "Roadmap" for the expansion and deepening of industrial cooperation between Uzbekistan and Kazakhstan. Mutual intentions to develop cooperation in this direction - to develop new promising projects and joint efforts to attract entrepreneurs to business cooperation were expressed.

In this context, a new initiative - the establishment of the International Center for Industrial Cooperation in the border territory of the two countries - was highlighted. The center will be equipped with the necessary production infrastructure, and its residents will receive a number of benefits and preferences, which will more effectively attract Uzbek and Kazakh entrepreneurs to create joint industrial enterprises.

During the forum, presentations were made by heads of ministries, agencies, industry associations, regional administrations as well as business representatives of the two countries, in which the potential for cooperation was revealed in detail and promising projects were presented for further elaboration. Practical aspects of cooperation, as well as mechanisms of state support for the implementation of joint projects, were discussed during the "G2B" and "B2B" negotiations.

At the end of the events, the Deputy Prime Ministers of the two countries expressed their commitment to further strengthen economic cooperation between Uzbekistan and Kazakhstan, establish strong business contacts, and provide comprehensive support to entrepreneurs in the implementation of joint projects and initiatives.

As a result of the forum, trade contracts and bilateral agreements on the implementation of joint projects and initiatives totaling $5.9 billion were signed.

 

mift.uz

On December 2 of this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov in the format of a video conference held talks with the Deputy Prime Minister - Minister of Economy and Finance of the Republic of Korea Hong Nam Ki.

The agenda included issues of preparation for the upcoming visit of the President of the Republic of Uzbekistan to the Republic of Korea. The parties expressed their commitment to active interaction in organizing the planned events, and also discussed the economic component of the visit at the highest level, bearing in mind the agreements being worked out in the field of investment, trade, economic, cultural, and humanitarian cooperation.

It was announced that for the qualitative filling of the upcoming events with practical content and reaching "firm" agreements, three joint working groups have been created, the task of which will be to expedite the solution of existing issues in terms of bilateral cooperation in priority areas.

As a result of the negotiations, a number of organizational and substantive issues were agreed upon.

 

The Ministry of Energy of Uzbekistan presented the stages of the country's transition to a low-carbon economy to the participants of the "Republic of Korea - Central Asia" Cooperation Forum, held on November 30, 2021, in Dushanbe.

Green economy and ensuring carbon neutrality were among the main topics of the 14th Cooperation Forum, in which the delegation of the Republic of Uzbekistan took part.

As noted during the presentation of the Ministry of Energy, 51 billion tons of CO2 (greenhouse gases) are released into the atmosphere in the world every year, which is one of the main causes of climate change. In this regard, more and more countries are taking steps towards the transition to a green economy.

In Uzbekistan, at the initiative of President Shavkat Mirziyoyev, a comprehensive strategy for the transition to a "green" economy is being implemented, as well as the Program for the Development of Renewable and Hydrogen Energy.

Under the Paris Agreement, Uzbekistan pledged to cut greenhouse gas emissions by 10 percent as a share of GDP by 2030. In November this year, in the city of Glasgow, Uzbekistan increased these obligations to 35%. To achieve these goals, the country's leadership has identified such key areas of interaction for Uzbekistan in the field of green recovery as striving to achieve carbon neutrality through the development of green energy and increasing the share of renewable energy sources by 3 times in the next 10 years.

Thus, by 2030, the Republic of Uzbekistan plans to increase the RES capacity by 12 GW

To implement these ambitious goals, the Ministry of Energy has been holding tenders for the construction of generation facilities, including solar and wind power plants, since 2019, with the consulting support of International Finance.

Also, the Government pays special attention to the popularization of energy efficiency issues among the population. The Energy Efficiency Fund has been created under the Ministry of Energy and work is underway to develop small generation for households based on small solar installations and solar collectors.

During the presentation, it was noted that there is no single template for the energy transition in the world and each country must choose its own path, relying on the best world practices.

 

minenergy.uz

Uzbekhydroenergo JSC’s (UGE; BB-/Stable) extensive investment program, alongside a wider shift to renewables, should help rebalance Uzbekistan’s electricity generation capacity mix, decreasing fuel-fired generation to less than 75% by 2030, Fitch Rating says.

The Uzbek power sector depends heavily on the domestic gas and oil industry, as about 90% of the country’s electricity generation capacity is based on hydrocarbons (mainly natural gas and coal), with the remaining 10% coming from hydropower. The government is striving to increase the share of other energy sources by decreasing the number of gas-fired thermal plants, which should reduce the environmental impact of the power industry. The government is actively attracting foreign international investments to satisfy increased investment needs in order to fulfill these obligations.

The regulator is also considering further tariff indexation mechanisms, to address the problem of asset depreciation and reduce the dependence on natural gas. This could also support UGE’s financial profile. However, we expect UGE’s implementation of its aggressive investment program, which will be largely funded by debt, to lead to a material deterioration in UGE’s credit metrics, with funds from operations gross leverage deteriorating to slightly below 5.0x on average in 2021-2024 (2.9x in 2020).

The rating agency expects that the government will continue to provide guarantees for the construction of UGE’s large hydropower plants (HPPs), including the Pskemskaya (400MW) and Mullalakskaya (150MW) HPPs, to be commissioned in 2025-2026, which will result in the share of state-guaranteed debt remaining above 90% in 2021-2026.

Fitch upgraded UGE to ‘BB-’ from ‘B+’ in October following the state’s continued support of the company in the form of guarantees for all company debt, as well as and the fact that the company has no plans to place non-guaranteed Eurobonds in the near future.

 

www.uzdaily.uz

The time has come to develop and adopt an updated and comprehensive Trade Agreement within the OECD - President.

“This document should touch upon the issues of eliminating trade barriers, digitizing customs procedures, as well as the widespread introduction of e-commerce, which is becoming increasingly important today.

It is also necessary to adopt a Program of Joint Actions ("Road Map") aimed at increasing the flow of mutual investments in our countries and their reliable protection, deepening industrial cooperation.

At the same time, we need to increase mutual trade, develop projects of regional significance and strengthen our overall competitiveness in the global market.

To this end, in cooperation with the United Nations Industrial Development Organization (UNIDO) and the SPECA Special Program for the Central Asian Economy, we propose to create a Center for Trade, Investment and Innovation within our organization and place its headquarters in Tashkent, "Shavkat Mirziyoyev said. ...

 

https://t.me/Press_Secretary_Uz/1018

On November 27 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov receive Chairman of the Board of Uzbek-Kyrgyz Development Fund U.Karmyshakov.

During the meeting, the organization of the Fund’s practical activities, including primarily consideration and selection of promising projects for further financing by the Fund, was discussed.

It was noted that the management of the Fund created a list of investment projects in the areas of agriculture, cattle breeding, horticulture, silk production, building materials, pharmaceuticals. Opportunities for creating joint trade and logistics complexes in the border areas of Uzbekistan and Kyrgyzstan are also being explored.

In the course of the dialogue, the parties discussed in detail the advantages of individual projects and outlined further steps for bilateral cooperation to form a final list of projects in order to start their early implementation, taking into account their marginality and economic effect.

Also, at the end of the meeting a number of issues related to the internal organization and operations of the Fund, which will accelerate the opening of funding for approved projects.

 

mift.uz

On November 25-26 this year in Turkestan (Kazakhstan), a regular meeting of the Joint Intergovernmental Commission on Bilateral Cooperation and the III Forum of Interregional Cooperation between the Republic of Uzbekistan and the Republic of Kazakhstan were held.

The delegations of the two countries were headed by Prime Minister of the Republic of Uzbekistan A.Aripov and Prime Minister of the Republic of Kazakhstan A.Mamin. The events were also attended by heads of key ministries, agencies, sectoral associations and regional administrations of the two countries.

The Forum of Interregional Cooperation proved to be an effective interstate platform and an important institution of political and economic interaction between Uzbekistan and Kazakhstan to strengthen mutually beneficial bilateral cooperation.

During the event, the dynamics of bilateral relations, which have risen sharply in recent years due to close and trusting relations of the heads of the two states, were emphasized. It was announced that Kazakhstan and Uzbekistan account for 70% of regional trade in Central Asia.

The main directions for the development of the bilateral partnership, in particular, the need to make efforts to bring bilateral trade to the target of $5 billion next year and up to $10 billion in the following years were considered. To this end, readiness to take joint measures to increase trade turnover and to remove existing non-tariff barriers was expressed. The particular relevance of joint work of customs authorities of the two countries on launching the Simplified Customs Corridor mechanism was noted.

Special attention was paid to the issue of further development of industrial cooperation. Promising directions in this area are automotive and light industry, mechanical engineering, production of construction materials and pharmaceuticals. In this context, the issues related to the implementation of the project on the creation of the International Center for Industrial Cooperation (ICIC) on the border territory of the two countries were considered.

The issues of deepening bilateral cooperation in transport and logistics were also touched upon. Construction of a new high-speed railroad along the Turkestan-Tashkent-Samarkand route and the Uchkuduk-2-Kyzylorda railroad line were identified as promising directions in this area. The Uzbek side expressed readiness to support Kazakhstan in joining the "Agroexpress" project launched between Uzbekistan and Russia for regular and rapid delivery of fresh agricultural products and other goods. The importance of bilateral measures to increase the capacity of checkpoints on the Uzbek-Kazakh border was emphasized.

The parties expressed a firm commitment of the governments of Uzbekistan and Kazakhstan to strengthen mutually beneficial bilateral cooperation. Mutual readiness to assist in establishing direct contacts between regional administrations and business communities of the two countries, development of joint industrial policy in the border areas of the two countries, formation of shorter, more sustainable production chains and creation of cluster productions linking entrepreneurs of the two countries, expansion of cross-border trade infrastructure was emphasized. Prospects for launching an Uzbek-Kazakh accelerator program to support the activities of exporters of the two countries were also discussed.

During the Forum, the heads of regional administrations of the two countries spoke about the current state of interregional partnership and put forward proposals for further development of cooperation. The agenda of interregional cooperation included environmental protection, combating desertification and joint water use along with economic partnership issues.

As a result of the Forum, an agreement was reached to intensify joint work to form a new package of investment and trade agreements with an emphasis on direct cooperation between the regions of Uzbekistan and Kazakhstan.

 

mift.uz

During his stay in the Republic of Korea, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with Deputy Speaker of the National Assembly of the Republic of Korea Kim Sang-hee.

The meeting, held in the format of open and trusting dialogue, was devoted to the discussion of joint actions to develop multifaceted cooperation between Uzbekistan and Korea with a focus on economic, investment, cultural, and humanitarian partnership.

The important role of legislative bodies in maintaining high-level relations between the two states and the positive impact of their cooperation on economic and social development was noted, in connection with which the parties expressed their readiness to consistently expand parliamentary diplomacy by intensifying the interaction of associations and friendship and cooperation groups established in both parliaments.

An agreement was reached on the exchange of experience on expanding the democratic foundations in the public administration system, exercising parliamentary control over legislative bodies and improving the legislative framework, including regulating relations with business and investors.

The Korean side highly appreciated the measures taken within the framework of the initiative for Uzbekistan's accession to the WTO, and also noted that this process will have a positive impact on the dynamics of further development of trade and economic cooperation between Uzbekistan and Korea.

The Uzbek side expressed readiness to implement bilateral and multilateral projects with the Republic of Korea within the framework of the New Northern Policy and the Korea-Central Asia Cooperation Forum.

Following the meeting, separate agreements were reached on further cooperation between the parliaments and governments of the two countries to achieve a synergistic effect in promoting joint initiatives and cooperation programs.

 

mift.uz

In Seoul, a government delegation of Uzbekistan under the leadership of Deputy Prime Minister - Minister of Investments and Foreign Trade S. Umurzakov held a roundtable with representatives of large Korean businesses and state corporations.

The event was also attended by the heads of such companies as Samsung Group, KIA Motors, LG Corporation, POSCO Group, Hyundai Motor Group, Lotte Group, Korea Telecom, KNOC, as well as representatives of the Korea International Trade Association KITA and the Korean-Uzbek Business Association (KUBA).

Speaking at the roundtable, S. Umurzakov noted Uzbekistan's confident progress on the path of social and economic reforms, its focus on increasing the transparency of the economy and continuing integration into the global economic space, invited representatives of Korean business to take advantage of the unique opportunities created in Uzbekistan, and expressed readiness to provide comprehensive support in dealing with the related issues.

The head of the Uzbek delegation stressed the experience of a number of large Korean companies implementing high-tech projects in Uzbekistan. The role of business circles as the driving force for strengthening economic partnership between Uzbekistan and Korea, whose relations have reached a qualitatively new level over the past few years, was emphasized.

Extensive opportunities and untapped reserves were revealed for the implementation of joint projects and the establishment of industrial cooperation in such areas as energy, light industry, metallurgy, information technology, pharmaceuticals, production of construction materials and electrical engineering.

Representatives of the Korean business presented information on their companies and outlined a vision of their prospective activity in Uzbekistan, mentioning priority directions and sectors for cooperation as well as mutually beneficial mechanisms of partnership within the framework of joint projects.

During the roundtable, an agreement was reached on cooperation with the Korea International Trade Association with the aim of implementing joint initiatives to establish direct ties between the business communities of Uzbekistan and Korea. It is expected that one of such initiatives will be the organization of the Uzbek-Korean Business Forum in the near future.

 

mift.uz

On November 25 this year, the 11th meeting of the Uzbek-Korean Intergovernmental Committee on Trade and Economic Cooperation (IGC) was held in Seoul. The meeting was co-chaired by Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov and Minister of Trade, Industry and Energy of the Republic of Korea Moon Sung Wook.

The event was attended by heads of key ministries, departments, specialized agencies and industry associations of the two countries.

Bilateral cooperation in investment, trade, industry, agriculture, infrastructure development, energy, information and communication sector as well as healthcare has been discussed during the meeting.

Constructive dialogue allowed for an exchange of views on key agenda items. Strong commitment was expressed by both sides to expand multifaceted interaction and increase the number of joint projects, initiatives and programs.

Speaking at the program of the event, the IGC Co-Chairs noted the sustainable nature of the relationship between the two countries, which has maintained its momentum despite the negative impact of the coronavirus pandemic on the world economy. The Korean side expressed its commitment to further assist Uzbekistan in the implementation of national socio-economic development programs as well as its readiness for long-term strategic partnership based on mutual respect and consideration of interests of both countries.

A range of proposals were put forward and comprehensively considered to further expand the investment cooperation, accelerate elaboration of a draft Free Trade Agreement between the Republic of Uzbekistan and the Republic of Korea, intensify interaction in consultation on Uzbekistan's accession to the WTO, cooperation in agricultural quarantine, implementation of infrastructure and energy projects, industrial cooperation, and introduction of innovative technologies in agriculture.

An open dialogue at the intergovernmental level helped clearly define areas of mutual interest for deepening further cooperation and identify new "points of growth" for economic partnership.

Following the meeting, the final protocol was signed, reflecting the key agreements reached during the event and the main vectors to further deepen multifaceted cooperation between the two states.

 

mift.uz

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with the heads of local authorities of the regions, the Republic of Karakalpakstan and Tashkent city, as well as regional departments of ministries and agencies that are part of the complex on investment issues of the Cabinet of Ministers of the Republic of Uzbekistan.

The event was attended by deputy heads of regions, cities and districts of the Republic, deputy mayors of regions on localization and development of industrial cooperation, as well as heads of free economic zones - more than 300 people in total.

It should be noted that this month these executives were trained at the Academy of Public Administration under the President of the Republic of Uzbekistan at special seminars with the involvement of teachers and experts from leading domestic and foreign universities with branches in Uzbekistan. Training was conducted in the areas of "Project Management", "Strategic Management, Change Management and Critical Thinking", "Development of foreign trade activities, increasing the efficiency of the use of productive capacity of enterprises and their output to project capacity". Seminar participants were also familiarized with aspects of the Project Office at the Strategic Development Agency and project groups, opened in every district and city of the Republic, the principles of selecting entrepreneurs for investment projects, the mechanisms of financing them, the organization of holding companies, the tools and opportunities of the Young Entrepreneurs Fund and the Direct Investment Fund of Uzbekistan. Entrepreneurs were involved in the training process, sharing their own experience in implementing projects and export activities. This, in turn, made it possible to conduct practical studies and examine concrete problems on the example of real cases, and to work out optimal solutions.

During the meeting at the Ministry of Investments and Foreign Trade, information on the seminars were heard, and additional instructions were given on the practical implementation of the new system to stimulate investment attraction, support the activities of industrial enterprises and increase exports. Issues discussed on organization of effective work on the ground and formation of regional investment programs for the coming year on the basis of the new mechanism. Instructions were also given to analyze the implementation of approved investment programs and to take effective measures to accelerate the implementation of individual projects.

Work will be accelerated on the development and approval of an appropriate regulatory and legal act on the introduction of a new effective system for the preparation and implementation of investment projects, requirements for the project teams, principles for determining the key performance indicators of the project team managers, order of implementation and financing of projects in the regions by holding companies.

Coordination of the implementation of the new mechanism in the regions will be carried out by the staff of the relevant complex of the Cabinet of Ministers and the leadership of the Ministry of Investments and Foreign Trade.

 

mift.uz

The Direct Investment Fund of the Republic of Uzbekistan (UzDIF) and the Russian Direct Investment Fund (RDIF) signed a partnership agreement for the implementation of joint investment projects.

The agreement was reached following the talks between President of Uzbekistan Shavkat Mirziyoyev and President of Russia Vladimir Putin.

Under the agreement, UzDIF and RDIF will focus on finding and implementing investment projects in the two countries, exchanging information and expertise in sectors of mutual interest.

The Uzbekistan Direct Investment Fund is a new state fund acting as an investor and platform for attracting foreign direct investment. The declared capital amount is $ 1 billion. Its activities are aimed at providing long-term capital to leading companies in Uzbekistan with strong growth potential and high returns for shareholders.

The Russian Direct Investment Fund (RDIF) was founded in 2011 to invest in the equity capital of companies primarily in Russia, together with leading foreign financial and strategic investors. The fund acts as a catalyst for direct investment in the Russian economy.

 

uzreport.news

Residents of Uzbekistan were officially allowed to trade digital currencies. The corresponding changes were made to the Regulation "On the procedure for licensing the activities of crypto-exchanges" by order of the director of the National Agency for Project Management (NAPM).

According to the updated rules, residents of Uzbekistan will be able to buy, sell and exchange crypto assets on licensed exchanges for their national currency. At the same time, non-residents can trade for foreign currency.

Also, the amendments provide definitions of the token and a number of operations with it, including the issue, placement, and registration of the issue. Henceforth, tokens can be issued by business entities that have passed the appropriate registration to attract investment and funding.

At the same time, all tokens traded on Uzbek crypto exchanges must have property security. It is prohibited to place and issue unsecured tokens on the platforms.

The easing of norms in the department was explained by the changed approach of citizens to investing in cryptocurrencies. The NAPU believes that "he has become more rational and balanced."

Crypto exchanges were obliged to check the organizations that place their tokens for the availability of property security. Also, at least 10% of the amount planned to be attracted must be deposited on a special account of the crypto exchange.

 

uzreport.news

Within the framework of the international week of innovative ideas "InnoWeek.Uz-2021", representatives of the Ministry of Innovation of Uzbekistan and the delegation of Tatarstan, headed by Deputy Prime Minister-Minister of Economy Midkhat Shagiakhmetov, met.

During the meeting, Minister of Innovative Development Ibrokhim Abdurakhmanov noted that the Ministry is open to establishing cooperation with the relevant departments of Tatarstan.

“When we were in Tatarstan, we were warmly received and we had the opportunity to see your model of innovative development,” the minister said. - Then we agreed to organize a dialogue and present innovative projects, and, of course, improve our cooperation.

Ibrokhim Abdurakhmanov stressed that Uzbekistan and Tatarstan have the potential for developing cooperation in the field of education, in the direction of creating jobs, creating conditions for internships for compatriots.

“We came with a large delegation, there are representatives of ICT directions, as well as resident companies that are actively implementing projects within our country and abroad,” said Deputy Prime Minister of the Republic of Tatarstan - Minister of Economy Midkhat Shagiakhmetov. For any country, the creation of not just jobs, but also high-tech jobs is important. Innovations and technologies should be primarily aimed at developing the quality of life of the population. We are ready to develop cooperation and, in the future, prepare a program for visiting our universities, innovative structures in Tatarstan by representatives from Uzbekistan.

Midkhat Shagiakhmetov also thanked for the created platform “InnoWeek.Uz-2021”, where, among other things, there was an opportunity to communicate with colleagues and stressed that he would be glad to see representatives from Uzbekistan in Tatarstan.

As part of the meeting, a Memorandum of Cooperation was signed between the Investment and Venture Fund of the Republic of Tatarstan and the UzVC National Venture Fund LLC (UzVC).

 

www.uzdaily.uz

On November 22 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held an expanded meeting with a delegation of the Republic of Kazakhstan, headed by Minister of Trade and Integration B. Sultanov. The meeting was attended by heads of key ministries and agencies of the two countries.

The meeting was devoted to discussing the current state and prospects for expanding Uzbek-Kazakh economic cooperation. The dialogue touched upon a wide range of issues related to investment cooperation, trade, industrial cooperation, and interaction in transport and logistics.

The relevance of intensifying work to increase the number of joint industrial cooperation projects was noted. The parties discussed a number of projects in the agro-industrial complex, mechanical engineering, textile, food, metallurgical and pharmaceutical industries, which are currently under consideration, and agreed to explore the existing potential and untapped reserves in various industries in order to develop new project proposals.

The emphasis was placed on the intensification of interregional cooperation. It was agreed that mutual visits of delegations composed of heads of ministries, agencies, industry associations, and regional administrations of Uzbekistan and Kazakhstan will be organized in the near future in order to work out new investment agreements and trade contracts.

The issues of organizing an Interregional Cooperation Forum between Uzbekistan and Kazakhstan in November, as well as an extended session of the Uzbek-Kazakh business council and a business forum with the participation of representatives of business communities of the two countries by the end of this year were discussed.

Special attention was paid to the development of bilateral trade. Having considered a number of issues in this area, the parties agreed to organize regular meetings of joint Working Groups on the development of trade and economic cooperation this month, which will enhance the interaction of the relevant ministries and agencies of the two countries.

Also, during the meeting, the parties touched upon a number of issues related to the implementation of joint infrastructure projects in the transport sector and priority tasks on simplifying customs procedures and increasing the transit potential of the two countries.

Following the meeting, further steps for practical cooperation in the discussed areas of cooperation were defined.

 

https://mift.uz/

According to the results of January-October 2021, Uzbekistan’s foreign trade turnover reached US$32.65 billion, which, compared to the same period in 2020, increased by US$2.55 billion (an increase of 8.5%), the State Statistics Committee of Uzbekistan said.

Of the total volume of the foreign trade turnover, exports amounted to US$12.43 billion (by January-October 2020, a decrease of 6.7% was noted), and imports – US$20.22 billion (an increase of 20.5%).

As a result, the balance of foreign trade turnover amounted to a passive balance in the amount of - US$7.78 billion.

Among the 20 large partner countries in foreign economic activity, there is also an active foreign trade balance with four countries, in particular with such as Afghanistan, Kyrgyzstan, Tajikistan and Turkey. A passive balance of foreign trade turnover remains with the remaining 16 countries.

Today Uzbekistan carries out trade relations with 179 countries of the world. The largest volume of foreign trade turnover was recorded with the PRC (18.6%), the Russian Federation (18.0%), Kazakhstan (9.7%), Turkey (8.3%), the Republic of Korea (4.7%), Kyrgyzstan (2.4%) and Germany (1.9%).

In the structure of the republic’s foreign trade turnover, a significant share was recorded in Tashkent city, which is 40.3%, or US$13.17 billion, and the smallest share was recorded at 1.1%, or US$345.2 million, which was recorded in Surkhandarya region.

The share of foreign trade turnover of the CIS countries, compared to the same period in 2020, increased by 6.5% and their share in foreign trade turnover, in January-October 2021, amounted to 37.8%.

The volume of foreign trade turnover of other states in January-October 2021, compared to the same period of 2019-2020, accordingly decreased 6.5% and amounted to 62.2% of the total foreign trade turnover.

The foreign trade turnover of the Republic of Uzbekistan with the CIS countries reached US$12.34 billion. Of these, the volume of exports amounted to US$4.29 billion, and the volume of imports – US$8.04 billion.

The largest volume of foreign trade turnover with the CIS countries was recorded with the Russian Federation (47.5%), Kazakhstan (25.6%) and Kyrgyzstan (6.3%).

The foreign trade turnover of the Republic of Uzbekistan with the EAEU countries amounted to US$10.11 billion. Of these, the volume of exports amounted to US$3.32 billion, and the volume of imports – US$6.79 billion.

In January-October 2021, the total number of exporting entities amounted to 6 035 units, which brought the volume of exports without gold to 10 072.6 million US dollars (an increase of 33.9% compared to the same period in 2020).

In the structure of exports, 83.3% are goods, which mainly fall on industrial goods (28.0%), food products and live animals (8.7%), chemicals and similar products (6.9%).

Due to a decrease in exports to other foreign countries, the share of exports to the CIS countries increased and their share in its total volume amounted to 34.5%.

Compared to 2019-2020, our main partners in the export of goods and services in foreign trade in January-October 2021 were countries such as China, the Russian Federation, Turkey, Kazakhstan, Kyrgyzstan, Afghanistan and Tajikistan. Their share in the total export volume reached 61.2%.

In the structure of the republic’s exports, a significant share was noted in the city of Tashkent, which is 25.2%, or US$3.13 billion, and the smallest share was recorded at 1.3%, or US$161.1 million in Jizzakh region.

The volume of exports of fruits and vegetables amounted to 1.23 million tons and, in value terms, exceeded US$747.4 million (the rate of decline, compared to the same period in 2020, respectively, amounted to 8.7%). Based on this, 649.1 thousand tons of vegetables were exported in the amount of US$298.0 million, as well as 267.2 thousand tons of fruits and berries in the amount of US$241.5 million.

In January-October 2021, the share of fruits and vegetables in total exports amounted to 6.0%. 

The main export markets for fruit and vegetable products are in the Russian Federation, Kazakhstan, Kyrgyzstan and the PRC.

According to the results of January-October 2021, the largest volume in value terms of exports of fruit and vegetable products falls on the Russian Federation (32.7% of the total volume of fruit and vegetable products), which exceeds the volume of exports to China by 4.4 times.

At the end of January-October 2021, the export of textile products was carried out in the amount of 2 380.9 million US dollars, which amounted to 19.1% of the total export volume and, compared to January-October 2020, it increased by 56.3%.

In the structure of the export of textile products, the main share is taken by cotton yarn (55.3%), as well as finished knitwear and garments (22.3%). In January-October 2021, more than 499 types of textile products were exported to 64 countries of the world.

The largest share of textile exports falls on the Russian Federation (US$736.7 million - 30.9%) and China (US$572.9 million - 24.1%).

The volume of exports of services in January-October 2021 amounted to US$2.07 billion, or 16.7% of the total trade exports and increased, compared to the same period in 2020, by 27.7%.

Transport services (69.3%), travel (tourism) (15.1%), telecommunications, computer and information services (7.0%), and other business services (4.5%) account for the lion’s share of the export of services.

At the same time, other services (4.0%), respectively, account for the largest share of financial services (1.1%), insurance and pension services (0.9%), construction services (0.7%), etc.

During the reporting period, imports amounted to US$20.22 billion (an increase in growth rates compared to January-October 2020 amounted to 120.5%). The main share in its structure is occupied by machinery and transport equipment (33.4%), industrial goods (18.5%), as well as chemicals and similar products (14.4%).

The analysis of the dynamics of imports of goods also showed that in January-October 2021, compared to the same period in 2020, the volume of imports of goods increased by US$2.99 billion and amounted to US$18.83 billion, and imports of services reached US$1.39 billion.

The share of imports from the CIS countries, compared to the same period in 2020, increased by 3.5%, and their share in foreign trade turnover, in January-October 2021, amounted to 39.8%.

In general, in January-October 2021, goods and services from 153 countries were imported to the Republic of Uzbekistan. One-third of imports are from such large partner countries as the Russian Federation, China, Kazakhstan, Republic of Korea, Turkey, Germany, and Turkmenistan.

In the structure of imports of the republic, a significant share is noted in the city of Tashkent, which is 49.7%, or US$10.04 billion, and the smallest share is recorded in Surkhandarya - 0.9%, or US$172.1 million.

The volume of imports of services in January-October 2021 amounted to US$1.39 billion, or 6.9% of its total volume, and increased by 46.5% compared to the same period in 2020. Travel (tourism - 49.3%), transport services (11.2%), other business services (11.0%), telecommunications, computer, and information services (8.1%) account for the bulk of imports of services.

In addition, other services accounted for 20.4% of total imports of services, including a high share of construction services (7.7%), fees for the use of intellectual property (4.8%), maintenance and repair services (3.7%), etc.

At the end of January-October 2021, the volume of machinery and transport equipment in the structure of imports reached US$6.74 billion and increased, compared to the same period in 2020, by 6.7%, in general, the share in the total volume of imports amounted to 33.4 %.

Imports of machinery and transport equipment increased by US$422.8 million. Most of the supplies of these goods to the country account for the PRC — US$2.25 billion (33.4%), the Republic of Korea — US$1 billion (14.9%), and the Russian Federation — US$690.2 million (10.2%).

In January-October 2021, the volume of industrial goods in the structure of imports reached US$3.74 billion and increased, compared to the same period in 2020, by 30.4%, in general, the share in the total volume of imports amounted to 18.5 %.

The main imports of industrial goods are cast iron and steel (US$1.62 billion), metal products (US$458.8 million), nonmetallic products (US$315.4 million), textile yarn, fabrics, finished products (US$306.0 million), etc.

 

https://www.uzdaily.uz/

On October 25, 2021, the official website of the Government of the United Kingdom of Great Britain and Northern Ireland published a notification from the Secretary of State for International Trade on the decision to grant the Republic of Uzbekistan the UK's Generalised System of Preferences ("GSP Enhanced Framework").

This was announced at a press conference held in the capital with the participation of the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, the British Embassy in Uzbekistan, as well as representatives of local and foreign media and bloggers. The speakers at the event were Deputy Prime Minister - Minister of Investments and Foreign Trade
S. Umurzakov, British Trade Commissioner for Eastern Europe and Central Asia K. Poleo, Deputy Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great Britain and Northern Ireland to the Republic of Uzbekistan S. Anderson, as well as an expert on GSP from Great Britain F. Hartwell.

It was emphasized during the conference that Uzbekistan became the first country in the world to receive this status. The decision was based on the results of consideration of the application submitted by Uzbekistan in April this year.

This decision was preceded by a series of consultations between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Department for International Trade of the United Kingdom of Great Britain and Northern Ireland.

The UK applies preferences similar to the EU GSP+ system for goods imported from third countries under the 'Enhanced Framework' of its own GSP, introduced for developing countries in connection with the country's exit from the EU.

Participants of the press conference pointed out that the preferences with regard to goods of Uzbek origin within the framework of the Enhanced GSP framework of Great Britain apply from November 1, 2021. In the near future, events will be organized to familiarize Uzbek producers and exporters with the advantages of the new system, as well as mechanisms for using the obtained preferences.

The commitment of the government of Uzbekistan to the full implementation of the provisions of 27 major international conventions in the field of the environment, human and labor rights, as well as good governance, which are one of the conditions for obtaining the status of a GSP EF beneficiary, previously ratified by Uzbekistan, was noted.

During the conference, representatives of the media had the opportunity to talk to the speakers and get detailed answers to their questions.

For reference: Before the adoption of this decision Uzbekistan used the basic scheme of the General System of Preferences ("GSP General Framework"), according to which Uzbek producers could export to the UK about 3,000 goods without charging customs duties and 3,200 items - at reduced rates.

After receiving a unilateral tariff preference "GSP Enhanced Framework", the number of commodity items, which Uzbek producers will be able to export to the UK without charging customs duties has increased from 3000 to 7800.

Inclusion of the country in the list of beneficiary countries of the "GSP EF" of the UK provides an opportunity to significantly increase the volume of exports to the UK and increase the competitiveness of domestic goods in the British market.

 

https://mift.uz/

During his stay in the Russian Federation, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held a meeting with the Chairman of the Board of the Eurasian Development Bank N.Podguzov.

During the meeting, the parties discussed the current state of cooperation, the progress of cooperation on the elaboration of joint projects, and other topical issues.

It was noted that at the moment a portfolio of promising projects has been formed to modernize the basic infrastructure, develop water management and the healthcare system. Further steps were considered to promote these projects and attract EDB funds for their implementation.

The perspectives for establishing direct cooperation and exchange of experience between the EDB and the Agency for Strategic Development of the Republic of Uzbekistan were discussed. The Bank's management expressed readiness to provide consulting assistance to the Agency in the areas of management, evaluation, and expertise of investment projects.

Following the meeting, the parties agreed to send an expert group of the Bank to Uzbekistan to substantively discuss the projects under development and to reach specific agreements.

For reference: The Eurasian Development Bank (EDB) is a regional development bank operating in accordance with the interstate agreement of January 12, 2006, signed by authorized representatives of Russia and Kazakhstan. The EDB's mission is to assist member countries in transition to an open market economy, stimulate economic growth and expand trade as well as economic ties. Currently, EDB members are Russia, Kazakhstan, Belarus, Armenia, Kyrgyzstan, and Tajikistan.

 

https://mift.uz/

Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held negotiations with Minister of Economic Development of the Russian Federation M.Reshetnikov in Moscow.

Issues of bilateral economic cooperation and measures to speed up implementation of joint investment projects and trade agreements, including those concluded within the framework of II Forum of Interregional Cooperation between the Republic of Uzbekistan and the Russian Federation, were discussed.

The parties highly appreciated the significance of the event, noting that the forum has been an effective tool for filling the economic agenda of the forthcoming visit of the President of the Republic of Uzbekistan to the Russian Federation with practical content, as well as for taking interregional cooperation to a new level.

The progress of the implementation of individual projects was examined in detail, mechanisms for resolving existing issues were developed and further steps to assist in their timely implementation were identified.

The necessity to develop a close dialogue to achieve the set goals as well as to continuously expand the cooperation in promising directions has been stressed.

Following the meeting, the parties expressed their commitment to further joint work to ensure the implementation of the agreements reached.

 

https://mift.uz/

On November 17 this year, on the eve of the visit of the President of the Republic of Uzbekistan to the Russian Federation, the II Forum of Interregional Cooperation between the Republic of Uzbekistan and the Russian Federation was held in Moscow in a hybrid format.

The event brought together more than 800 participants - members of governments, heads of regions, ministries, agencies, industry associations, business associations, representatives of major companies and the private sector of the two countries.

The purpose of the Forum is to create a single platform for establishing and strengthening direct business contacts and practical interaction between the regions of Uzbekistan and Russia.

The event agenda included a plenary session, during which President of the Republic of Uzbekistan Sh.M.Mirziyoyev and President of the Russian Federation V.V.Putin addressed the participants through video messages. Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov and Minister of Economic Development of the Russian Federation M.Reshetnikov also made reports, presenting information on the work done this year to establish ties between the regions of the two countries and the elaboration of joint interregional projects and initiatives.

It was noted that more than 50 mutual visits took place this year; in recent months alone, the leaders of all 14 regions of the Republic of Uzbekistan have visited 42 subjects of the Russian Federation. Such a format of interaction has proven to be an effective way to explore the potential for partnership in a wide range of areas and to develop specific interregional projects and cooperation programs.

Separate thematic sessions were organized as part of the event, during which important topics related to stepping up cooperation between the two countries' regions in economic, social and infrastructural development, introduction of digital technologies, implementation of joint projects in agriculture, increase in mutual trade, expansion of transport links and tourism development were raised.

The heads of the regions of the two countries outlined in detail their vision of further steps toward building tight and long-term partnership, and put forward constructive initiatives and concrete proposals for the implementation of mutually beneficial projects in promising industries. The importance of intensifying joint efforts to create joint high-tech industries, expanding industrial cooperation in a wide range of industries and directions in order to saturate the markets of the two countries with competitive products in demand, as well as developing the markets of third countries was emphasized.

Also on the sidelines of the event, the heads of the administrations of the regions of Russia and Uzbekistan held a number of bilateral meetings and negotiations, during which agreements were reached on the implementation of specific projects and initiatives.

As a result of business meetings and negotiations held on the sidelines of the Forum, about 600 bilateral agreements totaling $9 billion were signed, including 141 investment projects worth $7.4 billion and 455 export contracts worth $1.6 billion. Investment projects will be accompanied by a Joint Project Office established between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Ministry of Industry and Trade of the Russian Federation. It was also announced that the administrations of the regions of the two countries will start working on 75 new investment projects in promising industries.

The agreements reached covered the wide spectrum of cooperation areas such as metallurgy, energy, chemical, electrical, leather, footwear, textile and pharmaceutical industries, water management, oil, and gas industry as well as banking and financial sector.

 

https://mift.uz/

Deputy Prime Minister - Minister of Investments and Foreign Trade of Uzbekistan S.Umurzakov received a delegation of the European Bank for Reconstruction and Development (EBRD). The meeting was attended by EBRD Managing Director for Financial Institutions F.Malige, Group Director of Financial Institutions in Central Asia, Mongolia and Russia G.Orlov, EBRD Director for Gender and Economic Integration B.Rambousek and other representatives and experts of the Bank.

The current state of bilateral cooperation, progress in the implementation of EBRD-financed projects in Uzbekistan, as well as prospects for extending the partnership, were discussed during the meeting.

The issues of interaction in economic reforms and structural transition in the near future with a focus on privatization of state-run enterprises and banks, as well as the development of the financial sector and capital market were considered.

The Uzbek side expressed gratitude for EBRD's advisory assistance in the banking sector, mining, chemical industry, and export capacity building.

An agreement was reached to intensify joint work on the development of women's entrepreneurship and support for small and medium-sized enterprises.

As a result of the meeting, important issues of mutual interest were elaborated and further steps for practical cooperation in the considered areas of cooperation were outlined.

 

https://mift.uz/

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed Uzbekistan’s registered vehicles for the transport of transit and bilateral trade cargo to enter Pakistan without submission of any financial security.

The FBR on Tuesday issued a procedure to enforce Uzbekistan-Pakistan Transit Trade Agreement for processing of transit trade cargo between Karachi Port, Port Muhammad Bin Qasim, Gwadar Port, and Uzbekistan.

Through the issuance of SRO1466(I)/2021, here on Tuesday, the FBR has issued Uzbekistan-Pakistan Transit Trade Rules, 2021.

Earlier, the draft rules were notified through an SRO1256(I)2021.

The new procedure is applicable on the Uzbekistan-Pakistan Transit Trade Agreement, for processing of transit trade cargo under Customs computerized system, to and from Uzbekistan, Uzbekistan’s cargo imported through Karachi Port, Port Muhammad Bin Qasim, Gwadar Port, and Uzbekistan’s cargo to other countries via Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port.

According to the procedure, Uzbekistan’s registered vehicles holding valid permits and are being utilized for the transport of transit and bilateral trade cargo shall enter Pakistan without the requirement of submission of any financial security for the duty and taxes leviable on the vehicle, on the basis of reciprocity, as agreed by the two contracting parties, the FBR said.

The FBR has issued a separate procedure for the movement of transit cargo from only those international airports of Pakistan where there is a direct flight to an international airport in Uzbekistan.

Under the procedure, the Directorate of Transit Trade, Peshawar and Quetta shall be authorized to issue and regulate permits at their respective land border Customs stations.

The board may through a general order levy charges, generally applicable for all traffic, including fees for weighing, scanning and sealing by Customs officials or those commensurate with the administrative expenses for the costs of services rendered. The vehicles shall be prohibited from carrying goods loaded in the territory of Pakistan for delivery at any other point (cabotage) and goods from or to another country (third country) than the operators home country and to be delivered or picked up to or from the territory of Uzbekistan.

The Logistics Facilitation Centre shall record particulars of both driver and vehicle in the CCS and these details should be linked with the FIA’s immigration module, so that driver can only exit Pakistan if his vehicle, on the return journey, has entered the border Customs station and gate-in event has been recorded in the CCS and vehicle has completed all Customs formalities for exiting Pakistan.

Both Customs and the FIA officials posted at the Customs border stations shall carry out weekly reconciliation to ensure the implementation of the above mechanism and to ascertain any overstayed vehicles.

A tracker shall be installed on each vehicle upon entry into the territory of Pakistan as per its national legislation.

The FBR said that the vehicles intended to be used for the international carriage of goods by road under Article 9 of Protocol One laid down in Annex-2 of the Agreement between Uzbekistan and Pakistan on Transit Trade (AUPTT) shall be constructed, so as to meet the requirements for carriage under Customs transit, as laid down in Section VII “Customs Control and Other Controls” of the agreement.

All Customs clearing agents/brokers, bonded carriers engaged in the clearance and transportation of transit cargo, are required to receive the amount for various expenses in respect of service charges, freight, etc, in Pakistan from foreign trader/entity in their Pak rupee bank accounts in foreign currency.

The concerned Customs clearing agents/brokers, bonded carriers will provide the requisite details regarding the funds received from abroad in their tax statements, to be submitted to the FBR, the FBR stated.

Copyright Business Recorder, 2021

 

https://www.brecorder.com/

Most entrepreneurs stated that there were no obstacles in the development of their activities. However, among the worrisome problems were identified access to finance, land allocation, lower taxes and interest rates on loans, high prices and scarcity of raw materials, and low demand for goods/services.

Center for Economic Research and Reforms (CERR) in August this year interviewed over 1000 enterprises throughout the republic in order to find out how they assess the prospects for their business development.

The monthly survey is conducted in two areas: a qualitative assessment of the current state of the business and the expectations of entrepreneurs regarding the prospects for the development of their business for the next three months. 

In October, the consolidated indicator of the business climate increased by 5 points and amounted to 61 points (on a scale from -100 to +100), which assesses the state of the business climate in the country as positive. 

In the sectoral context, the business climate indicator in the service sector increased by 4 points compared to September and amounted to 61 points, in construction there was an increase by 7 points (65 points), the highest growth was observed in the industry and amounted to 9 points compared to last month (55 points in October). At the same time, in the field of agriculture, the business climate indicator showed a slight decrease by 2 points and amounted to 65 points in October of this year.

An increase in the business climate indicator is associated with changes in the following components of the indicator:

Indicator of the current state of business in October of this year. increased by 8 points and amounted to 51 points, which characterizes the positive sentiment of entrepreneurs regarding the current state of their business. Compared to October last year, this indicator increased by 16 points.  

The share of respondents who noted the current state of their business as good was 48% (September - 45%). When asked how the state of business has changed over the past 3 months, 44% of entrepreneurs answered that it has improved (September - 42%), 45% - has not changed (September - 46%) and only 11% have worsened (September - 12%). 

The demand for goods/services improved in 53% of enterprises (September - 51%), while the number of employees increased in 31% of enterprises (September - 25%).

The growth of the indicator of the current state of the business climate is associated with changes in the sentiment among entrepreneurs in the industrial sector - 47 points (September - 29 points), construction - 59 points (September - 54 points) and services - 48 points (September - 42 points) ... 

The indicator of expectations of business development prospects in October increased by one point compared to September and amounted to 71 points, which reflects the expectations of entrepreneurs about the prospects for the development of their business for the next 3 months as optimistic. It should be noted that compared to the same period last year, this indicator has grown by 17 points. 

76% of entrepreneurs believe their business prospects will improve (September - 74%). It is expected that the demand for goods and services will improve in 62% of enterprises (September - 65%), an increase in the number of employees is expected by 62% of enterprises (September - 60%). 

36% of entrepreneurs expect an increase in prices for goods/services in the next 3 months (September - 26%). 37% believe that prices will not change (September - 29%), and 6% - will go down (September - 4%). 

At the same time, 21% of respondents do not know how the prices for their goods/services will change in the near future (September - 41%).

The breakdown of the expectations indicator by industry in October is as follows: agriculture - 76 points (September - 78 points), industry - 63 points (September - 59 points), construction - 71 points (September - 61 points) and services - 74 points (September - 73 points). 

In general, the relationship between the values ​​of the current situation and expectations means that, according to the assessments of business entities, a positive trend in economic development will continue in the next 3 months.

Over 30% of the interviewed entrepreneurs stated that there were no obstacles in the development of their entrepreneurial activity. 

Among the concerns of concern is access to finance and land, high tax rates, the impact of the pandemic, high prices and scarcity of raw materials, and low demand for goods/services.

 

https://www.uzdaily.uz/

The electronic cooperation portal under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, in cooperation with the khokimiyat of the Kashkadarya region, in the city of Karshi, organized the "Regional Intersectoral Industrial Fair".

The event was attended by large enterprises specializing in the production of products for the oil and gas, electric power, chemical, textile, leather and footwear, and other industries.

The fair was attended by 187 representatives of large industrial enterprises and 616 business entities from different regions of the republic with 1,578 types of products. As part of the event, 459 cooperation agreements were concluded through the Electronic Cooperation Portal for more than 768.9 billion soums. In addition, 269 ​​memorandums of technical cooperation were signed to further develop the currently imported products.

The main focus of the fair was on supporting local producers, developing cooperation ties in the industry, studying the types of products produced by local enterprises, including small businesses and private entrepreneurship, as well as establishing industrial cooperation and building a portfolio of orders (signing contracts and memorandums) to expand the scope of work. in future.

At the event, presentations were organized on the products offered for import substitution on the basis of industrial cooperation, their annual demand, technical requirements and indicators.

Moreover, small businesses and private entrepreneurship were provided with practical assistance in providing legal, methodological and advisory services for the implementation of financing instruments for localization projects, as well as in the implementation of activities taking into account the standardization and certification of products.

As a result of familiarization with the potential of local production, agreements were reached on the localization of new types of products on the basis of cooperation with large industrial and regional enterprises.

The participants noted that the wide involvement of domestic industrial enterprises in public procurement at the early stages of development serves as a tool for forming a portfolio of orders for domestic manufacturers and ensuring the continuity of production.

Equal opportunity in the local market lays the foundation for the establishment of economic entities producing goods that are able to compete with imported products by promoting healthy competition.

At a later stage in the development of this process, with the help of local exporting enterprises with high production potential in the world market, the widespread distribution of the Made in Uzbekistan brand will positively affect the country's image.

As part of the event, EKP specialists at MIFT provided practical assistance in the process of conducting negotiations in the B2B format and concluding cooperation agreements on the development of imported and presented samples by business entities.

It is worth noting that the sharp decline in global production as a result of the pandemic has led to a slowdown in economic growth in all countries. In this difficult period, the most important factor in achieving economic stability is the comprehensive support of domestic industrial enterprises. In this regard, the role of the work carried out by the Electronic Cooperation Portal of the Republic of Uzbekistan is of particular importance. In particular, through the introduction of innovative technologies in the field of e-commerce, the portal has created opportunities for manufacturers to demonstrate online their products, remotely conclude contracts between a customer and a supplier, as well as to conduct operational financial transactions.

Events of this nature will undoubtedly continue to promote the development of cooperation ties between regions, industrial enterprises, and small businesses and will serve as a solid foundation for business in the future.

To date, the portal covers 74,585 enterprises, and the number of products sold has reached 184,258. During 10 months of this year, 34,158 agreements on mutual cooperation were concluded for a total of 7,264.7 billion soums.

 

https://teletype.in/@mift_press

On November 15, 2021, in Brussels, the delegation of the Republic of Uzbekistan headed by the Minister of Foreign Affairs Abdulaziz Kamilov held a meeting with the European Union Commissioner for International Partnership Jutta Urpilainen.

The European side was informed about the reforms being carried out in Uzbekistan, the priorities and achievements of the republic's modern foreign policy.

The current state and prospects of cooperation between Uzbekistan and the European Union, including within the framework of the EU Strategy for Central Asia, were discussed.

The progress in the implementation of joint initiatives and programs, as well as the schedule of upcoming contacts at various levels and formats were considered.

The delegations exchanged views on the situation in Afghanistan and the possibilities of providing humanitarian assistance to this country as part of the collective efforts of the international community.

 

https://mfa.uz/

In recent years, Uzbekistan has been paying close attention to the construction of wind farms among renewable energy sources. This area is today the fastest growing in the global energy sector.

For Central Asia, further acceleration of the use of alternative energy is especially important given the reduction in water resources in the region.

Here are some figures for wind energy. If in 1997 the total installed capacity of wind power plants in the world was 7,500 MW, then by 2020 this figure reached 750,000 MW. On a country-specific basis, in 2020 alone, 52,000 MW of new wind farms were commissioned by the People's Republic of China and 16,205 MW by the United States.

In addition, there is a tendency to reduce the cost of electricity generated by wind power plants (WPP). Thus, in the period from 2010 to 2020, the average cost of electricity generated by onshore wind farms decreased by 56 percent - from 8.9 US cents to 3.9 US cents per kWh.

In the Republic of Uzbekistan, in cooperation with international financial institutions, feasibility studies have been carried out for the widespread use of wind energy. The "Concept for the provision of the Republic of Uzbekistan with electric energy for 2020-2030" has been developed, one of the main goals of which is to bring the wind power capacity to 3000 MW by 2030.

It should be noted that the indicators of wind potential in the territories designated for the construction of wind farms in Uzbekistan are higher than the average for existing wind farms in the world. In other words, when comparing the power utilization factors, it was found that the indicators of our country are 1.5 times higher than the world average. For example, out of a total of 8,760 hours per year, wind farms in Uzbekistan can operate at full capacity for about 3,900 hours.

To date, several projects for the construction of wind farms have been launched in Uzbekistan. Including:

- Construction of a wind farm with a capacity of 500 megawatts in Tamdy district of Navoi region, an agreement on which was signed with Masdar from the UAE. The cost of the project is US$600 million, after reaching full capacity, the wind farm will annually generate 1.8 billion kWh of electricity, saving 546 million cubic meters of natural gas per year.

- An agreement on the construction of two wind farms was signed with the Saudi Arabian company ACWA Power. The company will build wind farms with a total capacity of 1,000 megawatts in Gijduvan and Peshku districts of Bukhara region at a cost of US$1.3 billion, which will save 1.1 billion cubic meters of natural gas per year.

- Together with the European Bank for Reconstruction and Development, a tender was held for the construction of a 100 MW wind farm in Beruniy and Karauzyak districts of the Republic of Karakalpakstan. ACWA Power (Saudi Arabia) was announced the winner of the international tender with a tariff offer of 2.57 US cents per 1 kWh of generated electricity. When commissioned in 2023, the station will annually generate 350 million kWh of electricity per year and save 106 million cubic meters of natural gas per year.

As the analysis of project implementation shows, the plans provided for in the Wind Energy Development Concept are being implemented by the Ministry of Energy ahead of schedule. This makes it possible to increase the forecast for the development of wind power capacity and bring it to 5,000 MW by 2030. Most of the wind farms are planned to be built in the Republic of Karakalpakstan.

When implementing projects for wind power plants, measures are taken to ensure their safe integration into a single power system.

It is also important to note the fact that there is a rapid development of renewable energy technologies. In particular, the price of lithium-ion batteries, which are considered the most efficient energy storage devices, have dropped to internationally acceptable levels. International research centers predict that the cost of this type of battery will fall by an average of 30 percent over the next 5 years.

As a result, Uzbekistan will be able to manage and store energy from renewable energy sources and ensure the stability of the unified energy system.

 

https://www.uzdaily.uz/

From 10 to 12 November this year in Tashkent, training on "Balance of Payments and Trade Policy in the Framework of Accession to the World Trade Organization" and a seminar for private sector representatives on "Accession to the World Trade Organization, WTO rules on trade in services and domestic support" were held.

The events were organized in the framework of the 'Support to WTO Accession Process in Uzbekistan' program funded by the European Union. Representatives of the Negotiating Team on Uzbekistan’s WTO Accession, headed by Deputy Minister of Investments and Foreign Trade B.Abidov, experts of the International Trade Centre UNCTAD/WTO, representatives of ministries, industry and business associations as well as the private sector took part in the events.

In the course of the events, presentations of foreign experts were made, in which advantages and challenges of the country's accession to the WTO, the role of the private sector in this process, directions of technical support to Uzbek businesses under the program "Assistance to Uzbekistan in Accession to the WTO" were disclosed. The participants were also familiarized with agreements regulating trade in services within the WTO, peculiarities of negotiations on trade in services, and aspects of the interaction between the private sector and the government during the negotiations.

Measures to support domestic producers and mechanisms to protect them from unfair competition by foreign suppliers, using specific case studies, as well as the impact of WTO accession on the services sector were discussed.

The possibilities of applying restrictive measures by the state in cases of public health, combating illegal trade, maintaining the balance of payments, and other situations were also explored.

 

https://mift.uz/

What is E-Auksion?

In August last year, the electronic trading platform E-Аuksion was launched. This is an online auction at which property confiscated by a court decision was initially sold, for example, cars, special equipment, real estate. The purpose of the site is to ensure the legality, transparency and objectivity of auction trading. On May 10, the site began to sell empty government assets and government shares in companies. From July 1, it will be possible to lease land there for business. Lots at the auction are put up not only by government organizations, such as the Bureau of Compulsory Enforcement but also by ordinary citizens and entrepreneurs. That is, anyone can put up their property for an online auction. True, you will have to pay for such a service.

What do you need to do to become a participant in the auctions?

First, you need to register on the trading platform. To do this, you need to fill out a questionnaire, authenticate via email and phone number. After registration, the user opens a personal account and a deposit account, from which money will be withdrawn when paying for a service or making a deposit. The second stage is to obtain an electronic digital signature at the Center for Organization of Electronic Online Auction. To do this, individuals must download the agreement for the purchase of an EDS, an acceptance certificate for work performed and an invoice, pay at the bank or through Payme for the amount specified in the invoice and receive a payment document. Then, with all the documents and the original passport, contact the Bureau of Compulsory Enforcement. You must have an empty USB flash drive with you. An employee of the Bureau will generate an EDS with a password, which will be sent to a mobile phone number, e-mail, personal account.

Who can participate in the auction?

Individuals and legal entities can take part in the online auction, except for employees of the judiciary, prosecutors, internal affairs, state tax and customs services, as well as the State Security Service, as well as employees of appraisal organizations who evaluated the property being sold.

What is required to participate in the auction as a buyer?

You need to submit an application certified by EDS and pay a deposit for the selected object. Applications for participation are accepted on the site from the date of posting information about the auction and end the day before its start. An application signed with an electronic digital signature must be accompanied by a document confirming the payment of a deposit in the amount of 5% of the appraised value of the property. Participants are assigned personal numbers under which they participate in the online auction. If you wish, you can change or cancel the application, only no later than the deadline for accepting documents. In this case, the deposit will be returned to the participant's bank account within three days.

How does the auction proceeds?

An online auction is held in the presence of two or more participants during a working day from 9:00 to 18:00 hours. The starting price of the lot is equal to its estimated value. When holding an auction, two methods are used - raising and lowering prices. The latter is applied when the auction is repeated. For example, a car worth 10 million soums is being put up for auction. Information about this appears on the website 15 days before the start of trading. The first auction is held with an increase in price. Participants take steps, that is, they increase the value of the lot by a certain amount. According to the rules, the first four steps are equal to 5% of the appraised value of the object, the fifth and subsequent ones - 3%. That is, the participants in the auction with a car will have to raise the price for the first three times by 500 thousand soums, and then by 300 thousand. If the participant raises the price, the auction is extended by 10 minutes. During this time, other participants can offer their prices. If this does not happen, the auction is considered to be closed, and the winner is the one who offered the highest price. If the application was submitted by only one participant on the day of the auction, an offer to buy the lot at the estimated value is sent to him by mail. A repeated auction is held no later than 20 working days from the date the online auction was declared invalid.

How does the re-auction work?

It follows the same rules, only with a decrease in price. The step is 2% of the appraised value of the object. The auction begins when bidders are asked to confirm a price one step lower than the starting price. In the case of the car from the example, the amount will be 9.8 million. If no participant confirms their consent to purchase the lot within 20 minutes, the price continues to decline. The starting price is reduced until one of the participants agrees to buy the lot at the announced price. Let's imagine that the price of a car has decreased five times by 2%, and now it costs not 10, but 9 million soums. If at this point one participant agrees to buy a car, the auction starts with an increase in price. That is, the rest of the participants are offered to increase the cost of the car by 2%. The winner of the auction is the participant who was the last to confirm the bid for the lot.

The participant won the auction. What's next?

He must pay in full the cost of the lot within 5 working days and submit a copy of the payment document to the Auction Organization Center. There, no later than the next working day, a protocol on the results of the auction is drawn up, which has the force of a purchase and sale agreement. The protocol is the basis for lifting the arrest of the property, and also serves as the basis for the registration of property, property rights. If the winner has not paid the full cost of the object, the amount of the deposit will not be returned to him. And the lot gets the right to buy the participant who made the penultimate bet. The rest of the participants are refunded the deposit:

  • within 12 working days to the participant who made the penultimate bet;
  • within 6 working days from the date of the auction to the sole participant;
  • other participants within 3 working days from the date of the end of the auction or its recognition as invalid.

How do I list my property on E-Auksion?

To do this, you need to conclude an agreement with the Online Auction Organization Center. The seller opens a personal account on the website and is provided with a "user code", which replaces the EDS. The cost of the service for organizing and conducting an online auction is indicated in the contract. But it should not be less than 1% of the amount of the property sold. For placement on the site of each lot, individuals pay 1 minimum wage, legal entities - 2. To place the property on the online auction, the customer sends an electronic application with a package of documents and photographs of the lot. After that, the property is put up for auction within three days. The seller must provide an opportunity for potential participants to inspect the property. The auction is held for price increases only. The seller can monitor the process online.

 

www.spot.uz

How does the stock exchange work?

Many times we have heard stories of people who made their fortune by buying and selling shares in companies. In order to properly invest income and not be a victim of fraudsters, it is necessary to understand the mechanism of the securities market.

What is a stock exchange?

The stock exchange is an organized market for trading securities. The place where the seller and the buyer of securities meet.

For example, the largest stock exchanges in the world include NYSENASDAQLSE and others.

The Republican Stock Exchange "Toshkent"  is the only stock exchange on the territory of the Republic of Uzbekistan. It was established on April 8, 1994. Today, shares of more than 99 companies and 10 bond issues of 4 issuers ( companies issuing shares )are traded on it.

Registered securities are placed on the stock exchange, where they can be purchased by individuals and legal entities - investors.

The Central Securities Depository is an organization that provides a unified system of storage, maintenance, accounting of the movement of securities and also provides other related services. (The Central Securities Depository carries out its activities in accordance with the Resolution of the Cabinet of Ministers No. 263 dated May 21, 1999 "On the organization and activities of the Central Securities Depository" without compulsory licensing )

Who regulates the activities of the stock exchange?

The regulator is an independent organization that makes sure that everything in the market, in this case, the stock exchange, is carried out legally. In Uzbekistan, these functions are performed by the Agency for the Development of the Capital Market of the Republic of Uzbekistan, which also licenses the activities of professional participants in the securities market (investment consultants, brokers, dealers, investment asset trustees).

What is a stock quote?

A share price is the market price of a share on a stock exchange, determined by supply and demand, and is dependent on many factors, such as a company's net profit, the amount of previously paid dividends, the reputation of the firm and its place in the securities market.

 

Important! The quotes of the companies' shares are constantly changing in real time and are reflected on the website of the RSE “Toshkent” in a special table called the “Exchange Quotation List”.

 

Each share has several prices at the same time:

First, it is the par price that is assigned to the share upon the issue. It is also called face value. The nominal price of a share matters only in relation to the income or dividends that the owner will receive on this share.

The market price of a share is determined by the supply and demand for the purchase and sale of these securities. It is usually defined as the average value of the prices of completed transactions or the closing price of the trading day (trading week).

Quoted prices - prices offered on exchanges by various sellers and buyers, at which transactions for the purchase or sale of securities were performed for a certain amount of time.

The stock exchange lists the securities of companies that have been included in the listing (exchange quotation list) - a special exchange procedure, which consists in checking the company's compliance with the exchange requirements. The exchange checks the registration of the issue (issue) of securities and a report on its results, compliance with the legislation of the Republic of Uzbekistan, disclosure of information about its activities and a number of other requirements.

 

www.finlit.uz/

 

On 11-12 November this year, the Regional Industrial Fair on the theme "Oil and gas, electricity, chemical, textile, leather, and footwear industry" began work in the city of Karshi, Kashkadarya region.

The event is being held on the initiative of the Administration of the President of the Republic of Uzbekistan together with the khokimiyat of Kashkadarya region and Uzbekneftegaz.

The fair forum is attended by representatives of large industrial enterprises of the fuel and energy complex, about 150 domestic business entities producing goods and services, as well as representatives of foreign companies.

At this fair, the possibilities of localizing the supplied goods and services for the investment projects of Uzbekneftegaz JSC and the needs of the industry enterprises will be considered, contracts have been signed to expand inter-industry and intra-industry cooperation ties.

As part of the event, a scientific and practical seminar will be held on the topic of urgent tasks for the active integration of the oil and gas industry and science, the operational implementation of modern scientific and innovative developments in practice.

The stands of Uzbekneftegaz JSC and a number of other industrial enterprises producing products for the needs of the oil and gas industry are presented at the fair.

 

https://www.uzdaily.uz/

In 2022, Uzbekistan’s GDP per capita will amount to US$2,100, according to the conclusion of the Accounts Chamber on the State Budget for 2022. In 2022, Uzbekistan’s GDP per capita will be US$2,100.

In Uzbekistan, according to the submitted budget for 2022, the gross domestic product (GDP) will amount to US$74.2 billion or US$2,100 per capita.

In accordance with the Budget Code, the Accounts Chamber conducted an examination of the draft Law "On the State Budget of the Republic of Uzbekistan for 2022" and an analysis of the Budget Message for 2022.

According to the submitted budget, GDP in 2022 is expected to reach 839.99 trillion soums or US$74.2 billion with per capita income of 23.8 million soums or US$2,100.

In 2022, the real growth rate of the economy is projected at 5.9%.

The added value in the projected gross domestic product amounted to 778.15 trillion soums (92.6% of GDP), and net tax receipts from products and export-import operations amounted to 61.86 trillion soums (7.4%).

In the sectoral breakdown, the largest share of value-added (35.8%) falls on the service sector, and the volume of added value created in this sector is planned in the amount of 300.35 trillion soums.

In industry, this indicator amounted to 217.68 trillion soums (25.9%), in construction – 52.51 trillion soums (6.3%), in agriculture, forestry and fisheries – 207.6 trillion soums (24.7%).

The expected real growth was 8.1% in construction, 7.0% in industry, 6.5% in services, 3.1% in agriculture, forestry, and fisheries.

The main part of the proposals and recommendations made by the Accounts Chamber were reflected in the Draft.

 

https://www.uzdaily.uz/

As part of the visit of a government delegation headed by Prime Minister Abdulla Aripov to the Federal Republic of Germany, Minister of Innovative Development Ibrohim Abdurakhmonov met with Director General of LMS Consult GmbH & Co.KG Steffen Burmeister.

Following the negotiations, an agreement was signed on cooperation on the creation of a special warehouse for storing laboratory equipment and chemical reagents, as well as the organization of sales of reagents and reagents on the territory of the Republic of Uzbekistan at the expense of the company's investments.

At the first stage, a warehouse with an area of 1000 m2 will be leased, for its equipping and implementation, at the first stage, it is planned to introduce investments in the amount of US$100,000. At the second stage, it is planned to expand the warehouse area to 2,000 m2, for which the company will allocate an additional US$200,000.

To date, under contracts with LMS Consult GmbH (Germany), laboratory equipment for the amount of US$494,300 has been supplied at the expense of the Science Funding and Innovation Support Fund. In addition, by the end of this year, contracts worth US$322,600 will be signed, which will be financed by the fund through a letter of credit.

 

https://www.uzdaily.uz/

This system is aimed at digital permission for the carriage of goods.

In accordance with the agreements reached within the framework of the informal summit of the Cooperation Council of Turkic-speaking States, held on March 31 this year, the Ministry of Transport of the Republic of Uzbekistan and the Ministry of Transport and Infrastructure of Turkey began work on launching a project for the electronic exchange of permit forms (E-permit).

At a meeting of the Uzbek-Turkish Joint Commission on International Road Transport, held in Tashkent in July this year, tasks were identified to implement measures and introduce a system of electronic (E-permit) exchange of permit forms between countries in order to speed up the process of freight traffic.

As part of the first stage of introducing this electronic system into practice, the Ministry of Transport of the Republic of Uzbekistan, in agreement with the Turkish side, for the first time organized a test car rally using the E-Permit system.

On November 6 this year, a convoy from Uzbekistan arrived in Turkey on November 10 through the Sarp checkpoint. The convoy was met by representatives of the Turkish Ministry of Transport and Infrastructure, as well as representatives of the customs administration.

Such a widespread introduction into the field of modern digital technologies and IT developments of the latest generation plays an important role in accelerating transport operations and increasing trade between our countries.

 

https://mintrans.uz/

On November 10th of this year, a meeting with representatives of large international investment funds was held in the building of UzSAMA. Among them were also representatives of "Bluestone Investment Bank" (USA), "Prosperity Capital Management" (Russia), and AFC Frontier Capital” (China).

Representatives of UzSAMA and the investment company "UzAssets" provided detailed information about the large-scale privatization program, state-owned enterprises offered for sale, as well as their sale process to foreign investors.

Particularly, during the meeting, a specially prepared video about the activities and attractiveness of JSC "Quartz" was presented, and the chairman of the board of the company answered to questions of investors.

Investors expressed a desire to explore the possibilities of investing in enterprises in the future.

https://davaktiv.uz/

On November 9 this year, the Government Commission on Foreign Trade, Investments, Local Industry Development and Technical Regulation made up of heads of ministries, departments, industry associations, and commercial banks traveled to the Republic of Karakalpakstan under the leadership of Deputy Prime Minister of the Republic of Uzbekistan S.Umurzakov to study the current state of the region's socio-economic development and work out measures for further stimulation of investment, industrial and export potential.

To implement the task, separate subgroups were formed in each direction, whose function is to go out to the field, study the current situation, identify existing problems and develop proposals for their solution.

The implementation status of the regional investment program was reviewed. In the context of districts and cities, the existing issues were considered, and the responsible executives were given targeted instructions for their solution.

The execution course of the instructions provided by the Government Commission on extending practical support to entrepreneurs in solving the problematic issues identified during the Commission's visit was reviewed. Heads of relevant ministries, agencies, and commercial banks were given critical comments regarding the timely and high-quality execution of the instructions and were instructed to take prompt and effective measures to eliminate the identified shortcomings. Special emphasis was placed on the need for timely allocation of financial resources to entrepreneurs and initiators of investment projects.

A presentation was made on the newly developed mechanism for stimulating investment and export activities, which is built on the basis of a systematic approach to the development processes, search for financing sources and implementation of investment projects, as well as subsequent monitoring of the activities of commissioned enterprises and industrial facilities. The mechanism is aimed at making full use of the economic and industrial potential of the country's districts and cities, stimulating their accelerated and uniform socio-economic development.

Within the framework of the new mechanism, project groups will be created under the Khokimiyats of Nukus and all 16 districts of the region, which will analyze the available untapped opportunities, taking into account unused land plots, buildings, and structures as well as natural and infrastructural resources. Based on this analysis, project teams will develop strategies and concepts for the development of relevant districts and cities. Coordination of the project teams' activities will be carried out by the Project Office established under the Agency for Strategic Development of the Republic of Uzbekistan.

On the basis of the developed strategies and development concepts, specialists of the Center for Investment Project Development under the Ministry of Investments and Foreign Trade will form promising investment proposals adapted to the specifics and economic potential of a particular district.

The selection of investors and sources of project financing will be carried out among local entrepreneurs and foreign companies by local authorities together with the Investment Promotion Agency under the Ministry of Investments and Foreign Trade in cooperation with the country's diplomatic missions abroad. At the same time, the possibility of co-financing large projects of entrepreneurs from the Direct Investment Fund of the Republic of Uzbekistan is provided.

Following the meeting, the relevant executives were given additional instructions on the practical implementation of the new mechanism, as well as the organization of effective work in the region.

 

https://mift.uz/

🏢According to the State Statistics Committee, in January-October 2021, the number of newly created enterprises with foreign capital in the country is as follows:

🇹🇷Turkey - 321 units
🇷🇺Russia - 296 units
🇨🇳China - 219 edinits
🇰🇿Kazakhstan - 166 units
🇰🇷Korea - 80 edinits

Uzbekneftegaz has successfully placed its debut Eurobonds in the amount of $ 700 million on the London Stock Exchange. More than 120 investors have become buyers.

The Uzbekneftegaz company, with the assistance of the Ministry of Finance, for the first time successfully placed Eurobonds on the London Stock Exchange in the amount of USD 700 million for a period of 7 years at 4.75%. This was reported by the press service of the company.

On November 5 and 8, the company held a roadshow for potential investors, during which a global investor call was held with more than 35 institutional investors from the USA, Russia, Europe and Asia, as well as individual meetings with 28 major international investors.

As of November 9, the arranger banks Bank GPB International, Citigroup Global Markets, JP Morgan Securities and Mitsubishi UFG Securities EMEA have set the initial interest rate on Eurobonds at 5%.

Applications for a total amount of USD 1.9 billion were received (without orders from the organizing banks - USD 1.7 billion), and based on the results of the quality and number of participants' analysis, the final interest rate was reduced to 4.75%.

More than 120 investors from Great Britain, USA, Germany and countries of Europe and Asia became buyers of Eurobonds.

In preparation for the issue of Eurobonds, Uzbekneftegaz passed an audit of the consolidated financial statements according to IFRS of the international auditing company Ernst & Young (Great Britain), received a corporate rating and an issue rating at BB- with a “stable” outlook by international rating agencies Fitch Ratings and S&P Global Ratings , and also passed all types of legal examinations (audit, financial and management).

 

https://www.gazeta.uz/ru/2021/11/10/ung/

(ПҚ-5274-сон, 02.11.2021й.)

In accordance with the Resolution of the Republic of Uzbekistan "On improving the mechanisms of delay in payment of taxes by local and foreign investors":

From January 1, 2022, business entities will be given the right to defer payment of property tax and land tax for a period of 6 months when acquiring property rights to land plots, buildings and structures with a total area of ​​more than 1,000 square meters.

This benefit is not provided to enterprises, subsoil users and producers of excisable products, where the state share is more than 50 percent.
The amount of deferred taxes is determined in the amount of taxes calculated based on the value of state-registered land plots, buildings and structures.


https://t.me/MIFT_UZ

GDP growth

Central Asian economies will grow by 4.9% in 2021. This forecast was made by the European Bank for Reconstruction and Development (EBRD). The region will continue to grow by about 4.8% next year, driven by continued expansionary policies and strong external demand for the region's major exported goods and labour. The report notes that growth in 2021 is driven by the stabilization of the domestic situation after the gradual easing of restrictions on COVID-19. Another important factor was the increase in lending to businesses and households, spurred by temporary containment measures imposed by central banks.

By country, the EBRD  expects Uzbekistan's GDP to grow by 6.8% in 2021 and by 6% in 2022. In June, experts predicted an increase of 5.6%. In Kazakhstan, according to EBRD experts, the country's GDP by the end of 2021  will be  3.6%. In 2022, the economy will achieve further growth of 3.8% thanks to stronger external demand and continued fiscal stimulus measures to support domestic consumption. 

The EBRD lowered its forecast for economic growth in Tajikistan by the end of 2021   to 4.9%. The bank had previously expected this figure to be 6.5%. It was assumed that such growth will be achieved after the recovery of the volume of remittances of labour migrants. EBRD also downgraded Kyrgyzstan's economic growth forecast ... GDP is expected to grow by 2.5% by the end of 2021. In the summer, an increase of 6.6% was expected. 

Prices up

Prices for fuel and food are growing in Kyrgyzstan. Only diesel fuel rose in price by 1.92 soms (9.7 tenge) over the month. If at the end of September the average price for diesel fuel was 51.42 soms, then as of November 1 it reached 53.36 soms. The most expensive diesel fuel in Kerben is 58.69 soms (297.3 tenge), and the cheapest diesel in Karakol is 52.27 soms (264.8 tenge). Gasoline has also risen in price. Fuel AI-92 increased in price by 82 tyiins - from 56.84 to 57.66 soms (292.1 tenge), and AI-95 - by 80 tyiins - from 61.22 to 62.02 soms (314.13 tenge ). Potatoes have risen in price too. Over the last month, its price increased by 5.17 soms (26.19 tenge) to 35.1 soms (177.78 tenge). 

Long-awaited code

The lower house of the Tajik parliament adopted a  draft of the new Tax Code. Entrepreneurs have been waiting for this document for almost three years. During the discussion of the project, the Minister of Finance of Tajikistan  Fayziddin Kakhkhorzoda said that in the new Code the number of taxes was reduced from the existing 10 to 7 items, and the income tax rate was reduced from 13% to 12%. Also, the rate of the main tax - VAT, whose share is more than 40% in the total volume of tax revenues to the budget, from January 1, 2022, will decrease from 18% to 15%, and by 2027 - to 13%. The draft Code also contains many other innovations, but not all of them will work after the adoption of the new tax legislation. That is, the new norms of the Code will be applied in stages.

Food crisis 

The food crisis in Turkmenistan is getting worse. In the east of the country, flour has not been delivered to state-owned stores for several months, according to local media reports. And if the flour is delivered, then people will be able to buy it once a month - five kilograms per family. The authorities do not explain the reason for the delay in flour supplies but promise that it will go on sale in the coming days. Therefore, there were huge queues at the shops. In addition, in Ashgabat, bread is sold only at night. The vacation rate is three loaves per person.

New opportunities

The European Union has allocated  2 million euros for the Program to Support the Digital Development of Kyrgyzstan. The Ministry of Digital Development of the Kyrgyz Republic agreed on this with the representative of the e-Governance Academy (eGA)  Tõnis Mäe, who flew to the Kyrgyz Republic from Estonia as part of a working visit. The main goal of the program is to support the digital development of Kyrgyzstan by reducing unemployment and inequality through accessible communications and digital education.
 
Also, the European Union plans to allocate 83 million euros to Uzbekistan for the implementation of grant projects for 2021-2024. The EU is going to expand financial and technical cooperation for the development of the Aral Sea zone.

The projects of Tajikistan are going to be financed by the  South Korean Export-Import Bank (Eximbank). The bank is expected to support major transport projects in the country.

Development fund 

Uzbekistan and Kyrgyzstan have established a  joint development fund (CCDF). Its authorized capital will amount to $ 50 million (with a subsequent increase to $ 200 million). At the same time, the agreement itself was signed back in March this year during the visit of the President of Kyrgyzstan  Sadyr Japarov to Uzbekistan. But Uzbek President  Shavkat Mirziyoyev signed it only this week. The fund was established for the modernization and development of the economy. The headquarters of the fund will be located in Bishkek.

 

 

On November 6, in Tashkent, at a joint meeting of the chambers of the Oliy Majlis, a solemn ceremony of inauguration of the elected President of the Republic of Uzbekistan took place.

In accordance with Article 92 of the Constitution of the Republic of Uzbekistan, the President took the oath: "I solemnly swear to faithfully serve the people of Uzbekistan, strictly follow the Constitution and laws of the republic, guarantee the rights and freedoms of citizens, and in good faith fulfil the duties assigned to the President of the Republic of Uzbekistan."

After taking the oath, the head of state made a speech on the directions of development of our country, which will be a priority for the next five years.

“We have developed a Strategy for the Development of New Uzbekistan and widely discussed it together with the people during the election campaign,” the head of state said. - In this important conceptual document, in order to ensure the consistency and continuity of our transformations, the main idea is “From an Action Strategy to a Development Strategy”.

It is noted that this strategy consists of seven directions.

First, large-scale reforms will be raised to a new level aimed at building a state that cares about the dignity, ensuring the legitimate interests and well-being of each of its citizens, regardless of their nationality, language and religion, based on the further development of a free civil society.

In this regard, we will pay special attention to the implementation of the idea of "New Uzbekistan - a people's and humane state". To this end, we will increase the role and responsibility of local governments in solving local problems. In the future, most of the functions of the state will be transferred from the centre to the regions.

In order to interconnect the mahalla system, which is the backbone of the management of society and reflects the results of the reforms, and the khokimiyats, the position of assistant khokim will be introduced in each mahalla. He will be responsible for job creation and poverty reduction. The responsibility of the mahalla chairman will include the implementation of spiritual and educational work, the formation of a healthy atmosphere in families and mahalla.

Representatives of the Agency for Youth Affairs will also operate in the mahallas, who will deal with youth issues on an ongoing basis.

Along with this, in order to expand the financial capabilities of khokimiyats and mahallas, funds from additional sources will come to the district budget, separate funds will be formed for each mahalla.

Another important task is to create a compact and effective management system focused on the needs of citizens by transforming central departments. For this, first of all, a specific procedure for the formation and abolition of ministries and departments will be developed, criteria delimiting their powers, requirements for their structure and staffing. Offices with duplicate functions will be optimized.

We will abandon outdated bureaucratic methods by introducing new approaches to the interaction of central departments with their territorial structures. At the same time, the powers of ministries and departments will be expanded to independently and promptly resolve socio-economic issues in the regions.

A system of reporting by managers on the implementation of programs adopted for each industry and region will be established.

Along with this, it is necessary to create additional legal foundations for the transformation of the People's Receptions into a structure that expresses the opinion of society.

At the same time, new, modern approaches to the selection and placement of personnel will be applied. Personnel will be recruited to the civil service on a competitive basis, criteria for continuous professional development, performance evaluation and promotion will be determined for them.

Henceforth, the development of each region, sphere and industry will be assessed depending on how well the rights and legitimate interests of citizens are ensured in the relevant area of ​​work.

In this regard, I would like to add the following basic principle "It is not the people who serve the state bodies, but the state bodies must serve the people""Leaders must serve not only the state but above all the person and his family, ensuring their legitimate interests."

Therefore, every official is obliged to know everything, to the smallest detail, about the life of the mahalla and the region. As our ancestors said, a leader should not be a burden for the people, but, on the contrary, make their life easier. Today our people, life itself, will no longer accept a leader who is unable to understand such an urgent requirement of the times.

A particularly important role in the implementation of the Development Strategy of New Uzbekistan belongs to senators and deputies, who are people's representatives.

Priority attention will be paid to the development and implementation of the concept of lawmaking, which will further improve the work of the Oliy Majlis, accelerate the development of New Uzbekistan, as the people expect from us, democratize the lawmaking process and strengthen parliamentary control over the implementation of legislation.

In this regard, it is advisable for the parliament to take control of the work with citizens' appeals on a national scale, as well as hear the reports of the heads of local executive authorities with the adoption of effective measures based on the results.

Based on the experience of developed democratic countries, public and state government should be carried out not on the basis of the subjective opinion of individual leaders, in other words, their preferences and moods, but on the contrary, through the activities of institutions with a solid legal basis.

I think the time has come to start solving another important issue facing us, namely, to legislatively define the specific powers of local Kengashes of people's deputies and khokims.

The focus of our attention will be on the creation of the necessary conditions for the free activity of civil society institutions, their active participation in public and state administration, further improvement of the mechanisms of their state support. To this end, the work on the organization of the Public Chamber will be accelerated.

It is necessary to solve urgent tasks to strengthen the participation of civil society institutions in the implementation of public control and the implementation of social projects.

To further deepen democratic transformations in our country, important measures are being taken to ensure freedom of speech and the press, the right of citizens to receive and disseminate information, and the free expression of their opinions and views.

Yes, it is possible that some officials, who think of outdated stereotypes, do not like to work in conditions of openness and publicity, to learn to correctly perceive criticism of their activities. And yet, in spite of everything, we will consistently continue this course, which we consider to be one of the most important directions of state policy.

To this end, it is envisaged to strengthen the liability of officials of state bodies and organizations established by law for committing actions that impede the work of the media, the establishment of censorship, illegal interference in their activities, pressure on editorial staff, illegal confiscation of materials and necessary technical means from them.

In a word, all journalists and bloggers acting in accordance with the law will continue to be protected by the law and the President.

Secondly, the fundamental and necessary condition for building a people's state, respecting the honour and dignity of a person is to ensure justice and the rule of law.

Over the past period, significant work has been done in Uzbekistan in this direction. Today we are faced with a number of tasks to ensure the true independence and openness of the justice system, improve the activities of law enforcement agencies, strengthen the role of the institution of the legal profession, and digitalize this entire area.

Appropriate measures will be taken to improve the activities of administrative courts based on international standards.

We must create a system in which the court, restoring the rights of citizens and entrepreneurs, stands on the protection of private property, obliges the executive bodies to act within the framework of the law, which contributes to the development of society, primarily its economic progress.

We fully support the rights of entrepreneurs and property owners, who play a decisive role in the development of our country and improving the well-being of the population. We regard the violation of the law in relation to them as an absolutely unacceptable emergency situation.

In this regard, the priority of private property in our laws will be defined as the main principle. Conditions will be created under which it will be impossible to violate the rights of persons acquiring property, trusting the information of state departments.

Another important issue is the fight against corruption, which has been raised to the level of state policy over the past five years. Thus, the National Council for Combating Corruption was created, headed by the Chairman of the Senate. In addition, the Anti-Corruption Agency is actively functioning.

We will continue to direct all the forces and means of the state and society to eradicate such a negative phenomenon that hinders our development.

Activities in this direction should not be limited to bringing the perpetrators to justice. It is necessary to eliminate not only the consequences of cooperation but also the causes that cause it, using effective preventive measures.

However, we all well understand that it is impossible to fight corruption only by legal measures. Here, the formation in the minds of the entire population, especially young people, of an irreconcilable attitude to this vice, the unification of all healthy forces of society is of decisive importance.

In building a strong civil society and state, it is very important to raise the legal consciousness and culture of the population, to bring to the general public the essence and significance of the laws and regulations being adopted.

Therefore, the formation of citizens' respect for the law and law-abidingness should be a priority task for all educational institutions, from kindergartens and schools to higher educational institutions, as well as every family.

 

Dear participants of the meeting!

During the pre-election meetings of all candidates, representatives of the electorate put forward another important proposal, which is demanded by life itself and dictated by the logic of our transformations. This is the implementation of constitutional reform in the country.

As world practice shows, constitutional reforms were carried out in many states during the period of cardinal changes. Therefore, having once again consulted with senators and deputies, the general public, the people, having studied the world experience of constitutional construction, we must carefully consider the issue of improving the Basic Law that determines the current and future development of the country.

Thirdly, the priority task is to develop the national economy and increase its growth rates.

We have set ourselves the goal of further increasing the gross domestic product per capita by mobilizing the resources and opportunities available in the country for this. As a result, by 2030 Uzbekistan should join a number of states with per capita incomes above the average level. It is planned to achieve this goal primarily by stimulating the private sector and increasing its share, as well as attracting foreign direct investment. For example, on the basis of the principle "from raw materials to finished products", we will develop a cluster system in the driver industries.

To achieve high rates of economic growth, priority measures will be taken to ensure macroeconomic stability and reduce inflation to 5 percent.

We also attach paramount importance to ensuring the stability of the budget and external debt, expanding the capabilities of local budgets.

We will resolutely continue the initiated reforms to further support entrepreneurship, reduce the tax burden, create a level playing field for all businesses and the necessary infrastructure.

Accelerating the transformation and privatization of state-owned enterprises remains one of the priority tasks of economic reform.

By creating a market based on free competition, guaranteed supply of the population and entrepreneurs with energy resources will be achieved.

By 2026, it is planned to reduce poverty by 2 times through ensuring employment of the population, training youth and unemployed citizens in demanded professions at the expense of the state, developing family entrepreneurship, and targeted support of socially vulnerable segments of the population.

At the same time, the quality and scale of the provision of social services will increase by reforming the social protection management system.

Another important task will be at the center of our attention - solving the housing issue, creating a comfortable living environment for the population. Over the past five years, based on the programs we have adopted, including the construction of affordable housing, more than 140,000 new apartments and individual houses have been commissioned. This is 10 times more than was built in the previous five-year period.

We will expand the scale of this work and build in the region "New Uzbekistan" massifs with all amenities and social infrastructure for more than 1 million people. The implementation of the programs "Obod Mahalla" and "Obod Kishlok" will be consistently continued.

At the same time, large projects are planned to provide the population with clean drinking water, lay modern roads and communication networks, improve the operation of public transport, as well as regular road, rail and air communication between the regions.

Accelerated development, radical efficiency improvement and diversification of agriculture as a strategic industry are extremely important for us. An urgent task in this area is the processing of agricultural products on the basis of clusters and ensuring food security.

One of the main directions of our reforms is to improve the quality and standard of living of the rural population. To this end, we will create the necessary conditions to double the income of farmers and dehkans, and bring the annual growth rate of agriculture to at least 5 percent.

Fourth, we will continue to focus on the implementation of a fair social policy, ensuring quality education and upbringing as the most important factor in the development of human capital.

To form the foundation of the Third Renaissance in our country, we need modern knowledge and education. I repeat, knowledge and education. We need highly qualified teachers and mentors, professors and teachers, real intelligentsia, capable of taking responsibility for our current and tomorrow's development, the fate of youth.

We must openly admit that we are all indebted to these hardworking and selfless people. In this regard, no matter how difficult it may be, we use all our strengths and opportunities to adequately stimulate the work of teachers and professors. Measures will be taken to bring the monthly salary of teachers of the highest category to 1 thousand dollars in equivalent by 2025.

In this direction, we will, first of all, improve the preparation of children for school by harmonizing the systems of preschool and school education. Dozens of new preschool educational institutions will be built in all regions of the country. For example, every year kindergartens will be provided with 2 million copies of modern educational literature.

Improving the professional training and skills of kindergarten workers is also important. For this purpose, the qualifications of more than 160 thousand teaching staff will be improved.

Taking into account the growing number of children, it is necessary to develop a National Education Program aimed at building new and strengthening the material and technical base of existing schools, ensuring continuous communication between all parts of the education system.

The priority task for us will be to bring the level of coverage of preschool education from 62 percent to at least 80 percent, higher education - up to 50 percent, improving the quality and content of the educational process in schools.

Along with the creation of new higher educational institutions, we will rapidly continue the work begun on providing students with places to live during their studies.

The main task of the Development Strategy will be to ensure the health of the population. Over the next five years, it is planned to double allocations in this area, including bringing the wages of doctors of the highest category to an equivalent of $ 1,000.

Our goal is to turn national health care into a highly effective system that contributes to the qualitative improvement of public health.

Special attention will be paid to medical prevention carried out by primary health care, increasing the role of family doctors. In particular, measures will be taken to early detection of diseases that are most common among the population and are the main cause of premature death, to carry out targeted screening activities, to provide free special preventive drugs and to widely promote a healthy lifestyle.

At the same time, the fundamental task will be through the introduction of information technologies to prevent corruption in the field, most importantly, to increase the availability of medical services to the population.

The coverage of specialized medical care in regions, districts and cities will expand. It is planned to introduce a system of state medical insurance, funds will be allocated with reference to a specific patient.

The development of physical culture and sports, the formation of a healthy lifestyle will remain important areas for us. Speaking about the establishment of a healthy lifestyle, we mean the creation of a system for the widespread involvement of the population in sports, which will serve primarily to improve people's health.

To this end, special attention will be paid to the development of mass sports in all cities and regions, in particular, the construction of appropriate infrastructure - sports grounds, pedestrian and bicycle paths, eco-parks, sports halls in educational institutions. We will increase the number of sports schools and build new sports facilities for the development of the Olympic and Paralympic movement. In this direction, comprehensive programs will be implemented to develop and popularize each sport included in the program of the Olympic Games.

 

Dear friends!

Providing care and attention, honouring the representatives of the older generation is an integral part of the spiritual values ​​of our people. It is our sacred duty to preserve these good traditions, to bring up children in their spirit.

It is no secret that in the current era of globalization, difficult conditions of a pandemic and an economic crisis, older people in some regions of the world are left alone with their problems. Taking this into account, we should strengthen the work begun on creating decent conditions for the older generation, strengthening their health, filling their lives with even deeper meaning and content. Our respected veterans must constantly feel that they occupy an honourable place in their families and are in demand by society.

In this regard, it is important to expand the practice of conducting spiritual and educational events, such as the "Meeting of Three Generations" and "Week of the Elderly", which raise their spirits and mood, as well as to develop and implement in each district separate programs to support veterans.

The further establishment of an atmosphere of kindness, mercy and spiritual generosity in our society will be facilitated by ensuring the rights and legitimate interests of persons with disabilities, we will pay special attention to this. Most importantly, this system should work in such a way that people in this category feel like full members of society.

Based on world experience, in order to guarantee the provision of persons with disabilities with jobs and sources of income, the current legislation will be amended to establish a specific quota for them.

As you know, our country pays serious attention to supporting children left without parental care and in need of care, their education and upbringing, vocational training and housing, so that they can take a worthy place in society.

Our common duty is to organize the upbringing of children living in Mehribonlik homes and special boarding schools in a family-like environment, educated, with a profession, for this purpose, to consistently continue the work begun on the basis of the “charity notebooks”.

I would like to cite one example that testifies to the effectiveness of our work in this direction. Over the past three months, dozens of children raised in such institutions have been adopted and adopted by noble and generous people. It is noteworthy that due to this, three houses "Mehribonlik" and one "Children's Town" ceased their activities.

On behalf of our people and on my own behalf, I express my deep gratitude to the kind and child-loving compatriots who demonstrate the high human qualities inherent in our mentality, as well as to entrepreneurs, intellectuals and employees of the National Guard, who have taken orphanages under their care and take care of their pupils.

Our dear women, who illuminate life with the light of love and warmth, make a worthy contribution to the upbringing of children with harmoniously developed personalities, today become active participants in all the reforms carried out in the country. Continuous attention and care for our respected mothers and lovely sisters remain an integral part of government policy. In order to ensure the employment of women, further enhance their role and status in state and public administration, expand the conditions for realizing their potential, bring work to a new level in the field of gender equality, family protection, motherhood and childhood, a corresponding National Program will be adopted.

The formation of a healthy and comprehensively developed young generation, especially girls, the realization of their abilities and talent, education in the spirit of love and devotion to the Motherland, respect for national and universal values ​​will remain at the centre of our attention.

Additional measures will be taken to support and socially protect compatriots studying or working abroad, as well as their family members in their homeland. In particular, through the public fund "Vatandoshlar" the ties of our citizens living abroad with their families will be strengthened. Systematic work will continue to unite our citizens abroad on the basis of their native language, national culture and customs, as well as the effective use of their knowledge and potential in order to develop their native country.

Fifth, along with social, economic and political transformations in the Development Strategy of New Uzbekistan, extremely important is attached to the reforms in the spiritual and educational sphere.

We understand well: if the economy is an organism that provides the vital activity of society, then spirituality is its heart and soul. In building the future, we rely on these two important factors, that is, on a strong economy based on market principles, and a strong spirituality, which is based on the rich historical heritage of our people, national and human values.

To this end, the concept of "New Uzbekistan - an enlightened society" will be implemented.

Tasks related to the further development of national values, increasing the role and significance of the Uzbek language as a state language, as well as the development of culture and art are always relevant to us.

Particular attention will be paid to the promotion of the humanistic essence of our sacred religion - Islam, the spiritual and moral education of young people, the formation of her strong position in life and healthy beliefs based on the principle of "Enlightenment against ignorance".

You are well aware that Uzbekistan is a country of great opportunities and enormous wealth. I think you all will agree that our greatest wealth is peace and stability, friendship and harmony between representatives of different nations, nationalities and confessions.

It is gratifying that today representatives of more than 130 nations and nationalities live in our country as a united and friendly family and, with their selfless work, make a worthy contribution to the prosperity of their native Uzbekistan.

We are justly proud of this property and will direct all the forces and capabilities of the state and society to further strengthen the atmosphere of friendship and harmony in the country.

As the President of the Republic of Uzbekistan, I want to especially emphasize: in our state policy, we will continue to give priority attention to strengthening and developing the national identity of representatives of different nations and nationalities living in the republic, their language and culture, religion, customs and traditions.

Sixth, today humanity is faced with global problems, and their solution is of extreme urgency.

We live in a challenging time of increasing globalization and rapid change. Today, such threats and challenges to humanity as climate change, environmental problems, radicalism, extremism and terrorism, human trafficking, drug trafficking are relevant for our country as well.

It is necessary to consolidate all forces and capabilities to solve such problems. This, in turn, requires the development of appropriate solutions at the national and regional levels.

The negative impact of environmental threats is increasing in the country, which was once again confirmed by the dust storm observed yesterday.

The situation associated with the drying up of the Aral Sea is becoming more and more acute. In this direction, we need to take systemic and comprehensive measures to implement the resolution of the United Nations General Assembly on declaring the Aral Sea region a zone of environmental innovations and technologies. It is also important to intensify our efforts to develop a World Environmental Charter aimed at shaping a new UN environmental policy.

Together with international partners, we are implementing the necessary measures for the consistent implementation of decisions and documents adopted at the conference “Central and South Asia: Regional Interconnectedness. Challenges and Opportunities ”.

Seventh, our priority task is to further increase the power of the Republic's Armed Forces, which serve as a reliable guarantor of ensuring peace and security in the country.

In today's complex and alarming situation in the world and the region, strengthening the combat readiness, physical and moral training of brave servicemen who are the pride of our people, who have devoted their lives to the honourable cause of defending the Motherland, is our urgent task.

We will take all the necessary measures to support servicemen and veterans, their family members, improve material security and housing conditions, create opportunities for their children to receive modern knowledge and professions.

We will continue to develop our pragmatic and balanced foreign policy and economic diplomacy.

Our main task remains to further strengthen good-neighbourliness and strategic partnership, primarily with the countries of Central Asia.

We will provide all possible assistance to Afghanistan, which is our neighbour and an integral part of the region, in restoring peace and stability, preventing an economic and humanitarian crisis in this country. We are interested in implementing large transport and communication projects jointly with Afghanistan.

We will pay special attention to expanding mutually beneficial and multifaceted relations with Russia, China, the United States of America, Turkey, India, Pakistan, Germany, France, South Korea, Japan, the United Arab Emirates and our partners in all regions of the world.

We will fill relations with the United Nations and its specialized structures, the Inter-Parliamentary Union, international financial institutions and regional organizations, including the Commonwealth of Independent States, the Shanghai Cooperation Organization, the Islamic Cooperation Organization, the Turkic Council, the Economic Cooperation Organization, with new practical content.

We must be open to the world, and the world must be open to us. This is the requirement of the time, of modern development. We will turn this decisive principle into a rule of our life.

 

Dear compatriots!

Over the past five years, which have become a period of difficult tests, we have accumulated a lot of experience. No matter how difficult it was, we learned to live and work, setting high standards for ourselves. Naturally, people with great goals should have a broad step and significant achievements.

Based on the experience we gained on the path of national development, in the Strategy for the Development of New Uzbekistan, we set ourselves even more serious tasks for each area and industry, each region, district and mahalla.

We all see that the time today is changing very quickly, rapidly. Therefore, in no case should we slow down the pace of our reforms, but on the contrary, go only forward, rationally use every hour, every day. As the great thinker, Bahouddin Naqshband said, "He who loses time, loses life itself."

We must never forget this truth.

In these exciting moments, I want to especially emphasize: as President, I consider the meaning of my life to be devoted to serving our people, fully devoting myself to ensuring the peace and well-being of my native country and its development. For me, there is no other, higher goal and greater happiness.

Dear compatriots, your sincere support, the blessing of the older generation, the trust showed by the youth, give me new strength and energy.

Together with you, together with our people, we will undoubtedly reach high levels - said Shavkat Mirziyoyev at the end of his speech.

At this, the joint meeting of the Legislative Chamber and the Senate of the Oliy Majlis of the Republic of Uzbekistan ended.

 

https://president.uz/uz/lists/view/4743

6.8 per cent growth in 2021 is fuelled by increased private consumption and infrastructure investments, the EBRD said in a statement.

The speed of recovery makes Uzbekistan the fastest growing economy in Central Asia, the European Bank for Reconstruction and Development (EBRD) says in its latest Regional Economic Prospects report, published today.

The Bank is expecting Uzbekistan’s GDP to grow by 6.8 per cent in 2021 and 6.0 per cent in 2022. Growth is supported by a remittances-led surge in private consumption along with increased investment in infrastructure, much of which has been financed through external borrowing. The forecast may be subject to further revisions because of uncertainties related to Covid-19, potential resumption of international tourism, and the geopolitical situation in Central Asia. 

According to the report, services expanded by 19.5 per cent year-on-year, industrial output by 9 per cent, and agriculture by 4.2 per cent. Remittances from Russia grew by 35 per cent year-on-year in US dollar terms in the first eight months of 2021. Credit growth accelerated to 22 per cent in June 2021 in real terms compared to 12 per cent a year ago, reflecting stronger economic activity. Despite expansionary measures, inflation eased from 11.1 per cent year-on-year in December 2020 to 10.8 per cent year-on-year in October 2021.

Overall, the EBRD raised its forecast for all its regions for 2021 to 5.5 per cent. While this represents an upward revision of 1.3 percentage points over its June forecast following a strong performance in the first half of the year, the Bank warns of serious threats ahead. 

High commodity and energy prices, tight labour markets, supply chain disruption and currency depreciations in some EBRD economies have begun to push up inflation even before the latest spike in Covid-19 infection cases. On average, inflation in the EBRD regions exceeded its end of 2019 levels by 3 percentage points in September 2021. In response, a number of central banks in the EBRD regions have raised policy interest rates.

In some EBRD economies, tight labour markets added to inflationary pressures with a strong rebound in vacancies in lower-medium skilled occupations. In other economies, considerable slack in labour markets remains. Unemployment increased by 1.4 percentage points on average between February and August 2020, while labour force participation fell by half a percentage point on average.

EBRD Chief Economist Beata Javorcik said: “This is a bittersweet recovery. The first half of 2021 brought a robust rebound. But we are now seeing growing cause for concern. While high commodity prices benefit exporters, they weigh heavily on the trade balances of importers. The supply of affordable energy as we enter the winter period is becoming a serious worry, especially since governments’ headroom is limited.”

Following large stimulus packages in response to the Covid-19 crisis, public debt in the EBRD regions has increased by an average of 13 percentage points of GDP since the end of 2019. While borrowing costs remain below their pre-crisis levels in most economies, they have risen sharply in some countries.

The recovery gathered pace in the EBRD regions in the first half of 2021 when output grew by 6.4 per cent year-on-year. Mobility recovered earlier than in other parts of the world, while industrial production and retail sales rebounded. Exports of goods and services increased despite temporary supply chain disruptions. Remittances also grew in the second quarter of 2021, in some cases surpassing 2019 levels. Tourist arrivals exceeded expectations but remained significantly below their 2019 levels in most EBRD economies.

In 2022, as economies recover, growth is expected to moderate to 3.8 per cent in the EBRD regions. This is 0.1 percentage points lower than expected in June 2021. However, forecasts are subject to high uncertainty, reflecting risks associated with the future path of Covid-19, possible worsening of external conditions and weaker growth in trading partners. 

More widespread inflationary concerns may bring forward policy tightening in advanced economies, making debt burdens more expensive to service, the report warns. Travel restrictions and lingering fears of contagion continue to weigh on the outlook for the tourism sector. While bankruptcies have so far remained contained, further vulnerabilities may surface once policy support is reduced.

Output in central Europe and the Baltic states is expected to increase by 5.2 per cent in 2021 and 4.7 per cent in 2022, reflecting better-than-expected results in the first half of 2021, although supply chain disruptions weighed on growth in some economies.

In the south-eastern part of the European Union, GDP is expected to grow by 6.7 per cent in 2021 and 4.3 per cent in 2022. These figures reflect a significant upward revision to growth in Greece, although tourist arrivals remain below their 2019 levels.

Output in the Western Balkans is expected to grow by 6.4 per cent in 2021 and 4 per cent in 2022. The region saw significant upward revisions, reflecting better-than-expected performance in the first half of the year, including in the tourism sector, as well as strong export demand from the EU market.

Output in Russia is expected to grow by 4.3 per cent in 2021 and 3 per cent in 2022, boosted by public spending programmes facilitated by higher commodity revenues.

In eastern Europe and the Caucasus output is expected to grow by 3.6 per cent in 2021 and 2.9 per cent in 2022, reflecting strong results in the first half of the year, although there are signs of momentum slowing in the third quarter.

Turkey’s economy is expected to grow by 9 per cent in 2021 and 3.5 per cent in 2022, supported by a post-lockdown rebound in domestic demand and strong exports benefiting from currency depreciation. Risks to macroeconomic stability have, however, increased.

Output in the southern and eastern Mediterranean is expected to grow by 4.2 per cent in 2021 and 4.4 per cent in 2022, reflecting a strong pick-up in economic activity in Egypt in particular in the second quarter of 2021.

 

https://www.uzdaily.uz/

As part of an agreement between the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan and the Japanese Organization for the Development of Foreign Trade JETRO, another webinar was held for representatives of small and medium-sized businesses in Japan.

The webinar is organized with the aim of broad coverage of the favourable conditions created for doing business in the Fergana, Namangan and Andijan regions of the Republic of Uzbekistan.

The event was attended by representatives of Japanese small and medium-sized businesses, members of JETRO - more than 90 representatives of Japanese organizations, enterprises and companies.

As part of the webinar, the leadership of Fergana, Andijan, Namangan regions made presentations on the advantages of doing business in these regions, the provided tax preferences for foreign investors in special economic zones of the regions, as well as the opportunities created for potential Japanese investors.

From the Japanese side, the head of the JETRO representative office in Uzbekistan D. Takahashi made a presentation on the peculiarities of the Uzbek market, including Fergana, Namangan and Andijan, from the point of view of Japanese business, on the support of Japanese business when investing in these regions.

As a result of the webinar, the possibility of organizing a visit to the indicated regions of a delegation from among the leaders of Japanese organizations and companies led by representatives of JETRO was noted for a detailed discussion of the prospects for mutually beneficial cooperation.

For reference: on May 20, June 29 and September 28 of this year, similar webinars were held with JETRO to highlight the business conditions created in the Tashkent, Samarkand, Bukhara and Navoi regions.

 

https://www.uzdaily.uz/

The authorized capital of the fund will still amount to $ 50 million, but the countries will not be limited to this.

Uzbekistan and Kyrgyzstan have established joint investment funds.
The authorized capital is $ 50 million, but the parties are planning to increase it to $ 200 million.
The agreement between the governments of both countries was signed on March 11 in Tashkent. Now the initiative was approved by the leaders of Uzbekistan and Kyrgyzstan - Shavkat Mirziyoyev and Sadyr Japarov.
Earlier it was noted that the fund will become a "catalyst for the development of cooperation" between the two countries.
 
We are talking about many areas - first of all, it is the agro-industrial complex, clothing and textile, manufacturing, trade, entrepreneurship.
According to Japarov, "this is the point of growth" that Uzbekistan and Kyrgyzstan should use.
In recent years, relations between the republics have reached a qualitatively new level - the countries are actively working on the issue of common borders, interacting in the defence and other spheres.
In December 2020, Kyrgyzstan and Uzbekistan signed a roadmap to expand and deepen cooperation in the field of industrial cooperation.
 
 

On November 4, President Shavkat Mirziyoyev held a meeting on improving the efficiency of investment projects.

As a result of the implementation of thoughtful economic diplomacy, the volume of our country's exports and attract investments are dynamically growing. In particular, over the past five years, the volume of foreign investment has tripled. Due to this, hundreds of factories and enterprises were put into operation, the volume of products and services increased, the employment of people was ensured, and new facilities were built.

Work in this direction continues in all industries and regions. Since the beginning of this year, 179 large and 10 thousand regional projects have been launched. 76 trillion soums have been invested in them. 143 thousand jobs were created.

The meeting discussed measures for the timely implementation of new projects and bringing the already launched production to full capacity.

It was emphasized that 442 projects launched in recent years are not fully loaded. An on-site study showed that 238 of them have problems sourcing raw materials and entering markets, 115 projects have faced credit-related problems, 35 projects have the infrastructure.

The khokims of the regions were instructed to assist entrepreneurs in solving these problems. The Ministry of Investment and Foreign Trade has been tasked with launching 139 large and 3,000 regional projects by the end of the year.

The head of state stressed that each invested sum, should have an economic effect and serve the interests of our people. In this regard, the intended use and effectiveness of loans taken under the projects will be taken under strict control.

The main focus in industrial projects is on the production of modern, competitive, in-demand products. Therefore, advanced foreign technologies have been purchased for them.

It was noted at the meeting that more than 270 lines of equipment imported this year have not yet been installed. The need to simplify procedures and speed up the commissioning of equipment as indicated.

Shavkat Mirziyoyev at meetings with voters before the presidential elections said that a new system for the implementation of investment projects would be introduced. For this, it is planned to create regional project groups and holding companies in each region. These new structures will become business partners of entrepreneurs. They will support entrepreneurs on issues such as developing a business idea, attracting investors and bringing projects to full capacity.

The head of state gave instructions on a tight schedule and effectively organize this new system quickly.

The President also stressed that the activity of our ambassadors in foreign countries is important in increasing the volume of foreign investments and exports. The heads of regions and industries were instructed to develop promising projects and interact with ambassadors during their implementation.

Deputy Prime Ministers, Ministers and Khokims provided information on the issues discussed.

 

https://president.uz/

Today, November 2, during a video conference on providing the population with quality housing, Shavkat Mirziyoyev announced the extension of benefits for cement importers for another year, the presidential press service reports.

In addition, for cement producers, the profit tax will be reduced from 20% to 15%, and the tax for the use of subsoil - by half. The President signed the corresponding decree at the end of August. This will reduce the cost of 1 ton of cement by 7%.

“It is necessary to keep the prices for new buildings at the level of this year,” the President noted.

To keep house prices stable, it is planned to allocate 1 trillion soums from the budget annually to provide new residential complexes with internal and external infrastructure.

The Entrepreneurship Support Fund will reimburse builders within 24 months for a portion exceeding the rate of the Central Bank. For this, 1 trillion soums will be allocated from the budget.

All this should lead to a significant decrease in housing prices.

 

https://www.spot.uz/

According to the announcement posted September 16, 2021, on the official websites of the Agency for Management of State Assets of the Republic of Uzbekistan and investment company «UzAssets» the Agency of state assets for consultants for the privatization of JSC " Urta Osiyo Trans ", JSC " 93 Makhsus Trust " LLC "Uzgazloyiha" and "UzGASHKLITI" LLC,  in order to expand the participation of local professional organizations and consultants, proposals were accepted until October 14, 2021, on organizing the sales process.

During the selection, proposals were received from 7 organizations, including in the form of a consortium, and the financial proposals of the Applicants, work experience in the field, qualifications and approaches to the sale of assets were considered.

According to the results of the competition,  a consortium of companies «Merritz» and «Foley Hoag» with the participation of local professional organizations recognized by the winner to organize the process of the sale of shares of JSC "Urta Osiyo Trans" JSC and "93-Makhsus Trust" and the company " by Grant Thornton " is selected for the organization the process of selling the state share in the design institutes LLC "Uzgazloyikha" and LLC "UzGASHKLITI".

The State Asset Management Agency and the investment company "UzAssets", together with the involved consultants, will take all necessary measures for a transparent and successful sale of assets.

For information, the Privatization Consultant is responsible for analyzing the Company and the market segment in which it operates, preparing teasers showing the Company's attractiveness and promoting among potential buyers, preparing reports based on the results of a comprehensive audit of the Company on financial, tax and legal issues (due -diligence), the study of potential buyers, recommendations to the Seller on strategies and stages of sales, as well as negotiations with potential buyers.

Law Firm "Dentons" accompanies the activities of the investment company "UzAssets" on the privatization of assets.

 

https://davaktiv.uz/

For nine months, the business ombudsman received more than 5,000 appeals, which is two times more than in January-September last year. More than 3000 decisions were made in favour of entrepreneurs, claims for 28 billion soums were brought to the courts.

In January-September of this year, the business ombudsman received twice as many applications from entrepreneurs as in the same period last year. This was announced on November 1 at a briefing at the AIMK by the head of the department of the Ombudsman for the Rights of Entrepreneurs, Nozima Saidalieva.

More than 5,000 applications were received in nine months. Almost 3000 of them are satisfied, the rest have been explained. During this period, claims for 28 billion soums were also submitted to the courts. The number of persons brought to administrative responsibility as a result of participation in the business ombudsman process has also sharply increased - 740 people.

Most of those who applied are in Tashkent (643), Tashkent region (583) and Karakalpakstan (540). In the context of spheres, they most often applied for land (1179) and credit (1119) issues.

Nozima Saidalieva noted that “violations of the rights of entrepreneurs lead to additional expenses from the state budget”.

 

 

“If we speak on the example of courts, then by their decisions the state bodies are ordered to restore the violated rights of entrepreneurs, which means the payment of compensations, the allocation of land, etc., as well as the payment of the state duty,” Nozima Saidalieva emphasized and added that in total these expenses form a large amount of funds. ...

“In addition to additional costs, violation of the rights of entrepreneurs has a negative impact on the image of a state body and an employee, which leads to a decrease in confidence in them. For this reason, we urge state bodies not to commit offences, ”said the representative of the business ombudsman.

Recall that in early October, a portal was launched, which published the results of reforms in Uzbekistan for 2017-2021. It was noted that over three years the business ombudsman received 13.4 thousand applications, as a result of which 930 responsible persons were brought to disciplinary, 1513 - to administrative responsibility, 1034 illegal decisions of state and regulatory bodies were cancelled in favour of business entities through the courts 95 were collected, 1 billion soums.

 

https://www.gazeta.uz/

Nicole-Pak (Russia) has completed the implementation of the first stage of an investment project at the production of Angren Pack in Uzbekistan. 

The final step in the program was the launch of paper-making equipment with a capacity of 80 thousand tons of finished products per year. For 3.5 years, 450 billion soums (US$42 million) were allocated to restore the production of paper products, buildings, structures and equipment.

“In June 2018, we bought out a controlling stake in Angren Pack. At the time of the transaction, production was actually stopped. No products were produced, the assets were in disrepair. The enterprise was in the process of liquidation. Part of the property was arrested, and the other has already been sold, the dismantling of buildings has begun,” said Sergei Kolesnikov, co-owner of Nikol-Pak. “Since the Uzbek market has a high potential for the development of the paper industry and the rapid development of the Asian market opens up great export opportunities, it was decided to maintain and develop the production site for the sustainable development of the company in Central Asia.

During this time, 60 thousand square meters of buildings were restored and reconstructed, its own gas, energy and water supply has been established, modern treatment facilities and technological equipment have been installed. Thanks to the modernization and the launch of new equipment, the volume of production of fluting corrugating paper and liner board has increased by 60%. In addition, the implementation of the project made it possible to increase the export share of Uzbekistan in high-quality paper products. The plant's products are currently supplied to Kazakhstan, Pakistan, Kyrgyzstan, Azerbaijan.

Now the plant has started to implement the second stage of an investment project aimed at developing satellite products. In addition, the plans for the next 5 years are to increase the output of Fluting and Liner up to 150 thousand tons of finished products per year, as well as the production of corrugated packaging by more than 10 times - up to 150 million square meters. m.

In October 2021, Nicole-Pak completed the purchase of shares, increasing its stake to 99.97%.

 

https://www.uzdaily.uz/en/post/69209

 

On 5 November, the European Union - Central Asia Economic Forum will be held in Bishkek (Kyrgyz Republic) for the first time in a full-time format.

This high-level meeting is slated to be the first in a series of events to be held in Central Asia in the coming years as part of the 2019 EU Strategy for Central Asia. Strengthening economic ties between the European Union and Central Asia is one of the priorities of the strategy.

The Forum will provide an opportunity for participants to discuss the priority needs of Central Asia in the area of ​​sustainable economic development for the benefit and benefit of all parties. The three main themes of the event will be green recovery, digitalization and improving the business environment. 

Therefore, the first face-to-face EU-Central Asia Economic Forum will focus on challenges and opportunities in these three areas, taking into account existing EU initiatives such as the European Green Deal, the EU Digitalization Plan, EU regional and bilateral programs in line with the new program cycle for 2021-2027 years. Initiatives and technological solutions offered by the EU private sector will also be discussed.

In addition, the event will allow for a comprehensive discussion with representatives of the Central Asian countries of the current interaction with the EU, as well as new opportunities for economic cooperation, with special emphasis on the three priorities of the Forum.

The Central Asian states will be represented by high-level representatives of national governments, while the European Union will be represented by Valdis Dombrovskis, Executive Vice-President of the European Commission for Economic Affairs and Trade.

“I am honoured to represent the European Union at this important high-level event. Our relations with the five Central Asian countries are consistently improving, and thanks to this economic forum, we are taking the next step in interaction between the regions. We will discuss expanding cooperation, trade and investment, focusing on key shared priorities such as fostering a sustainable business environment and green and digital transformation of our economies. Now that we continue to recover from the COVID-19 pandemic, our work on these priorities can bring our regions closer than ever before, ”said Valdis Dombrovskis.

The event will also bring together high-level representatives of the EU member states, organizations implementing EU projects in the region, representatives of the private sector from Central Asia and Europe, as well as development partners, including European financial institutions.

 

https://www.uzdaily.uz/

Investment company UzAssets under the State Assets Management Agency announced its intention to sell its stake in Urganch Sharob.

The state intends to sell its 47% in the authorized capital. Deloitte is advising on the deal. The sales process is divided into two stages:

  1. expression of interest (you must send an application in the form of a letter) and the qualification selection of participants;
  2. consideration of commercial and financial proposals.

Applications are accepted until December 10. After that, UzAssets will compile a shortlist of participants who have passed the first stage. They will receive detailed information about the company as well as the preparation of a binding offer. The transaction will take place in accordance with the rules of the stock exchange.

Potential buyers must meet the requirements - to prove solvency, have a plan for the development of the company, and more. More information about the terms, process and other details can be found here.

 

https://www.spot.uz/ru/2021/11/01/suvmash/

On 28 October 2021 in accordance with the requirements determined by the President of the Republic of Uzbekistan Shavkat Mirziyoyev, a meeting of the Cabinet of Ministers was held to discuss the results of the socio-economic development of the republic for 9 months of this year, as well as the priority tasks to ensure stable rates of economic growth by the end of the year.

It was noted at the meeting that as a result of the comprehensive measures taken to mitigate the impact of the coronavirus pandemic on the socio-economic situation in the republic, deepening structural transformations and accelerated development of economic sectors for 9 months of this year, the country’s gross domestic product (GDP) grew by 6.9 percent. Industrial production increased by 9.0 percent, services - 7.6 percent, construction work - 4.5 percent, agriculture - 4.2 percent.

Thanks to timely measures taken to ensure price stability, the inflation rate compared to the same period of last year decreased by 0.9 percent.

Investments in the economy increased by 5.0 percent, in particular, within the framework of the state investment program, 160 large projects were commissioned for a total of US$2.9 billion, as well as within the framework of regional investment programs, 9,013 projects were implemented for a total of 35 trillion soums.

The direct result of comprehensive state support for entrepreneurs for 9 months of this year was the creation of 76.5 thousand new business entities, as well as more than 332 thousand new jobs.

At the meeting, reports were heard from the Deputy Prime Ministers, as well as heads of ministries, departments and regional khokimiyats. Each leader has been assigned priority tasks to mobilize all available reserves to ensure stable rates of economic growth in the IV quarter of this year and personal responsibility for the timely and full solution of the assigned tasks.

In terms of achieving macroeconomic stability, it was instructed to ensure GDP growth by 7.0 percent by increasing the volume of production in all sectors of the economy, stable satisfaction of the growing needs of the population for food and other consumer goods, preventing a sharp jump in prices, foreseeing the level of annual inflation at the end of 2021 not higher than 9.95 percent and the consolidated budget deficit - within 5.5 percent of GDP.

In order to ensure uninterrupted supply of energy resources to the sectors of the economy in the autumn-winter period, the leaders of the fuel and energy complex are tasked with ensuring in the fourth quarter of this year supplies to consumers of 14 billion cubic meters of natural gas and 21.5 billion kWh of electricity, as well as commissioning 8 power plants with a total capacity of 1.3 GW.

Specific tasks have been set for the heads of the industrial complex, envisaging bringing the annual production volumes in the textile industry to 32 trillion soums, electrical products - up to 16.7 trillion soums, building materials - up to 9.6 trillion soums, leather, footwear and fur products - up to 4.4 trillion soums.

In agriculture, in order to provide the population with high-quality and affordable food, responsible leaders were instructed to take additional measures to increase the production of fish and livestock products, as well as to lay agricultural products grown on 810 thousand hectares of land freed from grain and early crops.

In the service sector, the need was noted to bring the volume of services in value terms to 302 trillion soums by the end of the year, by increasing the number of domestic flights from 17 to 43, ensuring the growth of railway services by 7.0 percent, non-state educational services - by 40 percent, medical services - by 32 percent, catering services - by 21 percent.

Within the framework of investment programs in the IV quarter of this year, it was instructed to ensure the creation of about 140 thousand new jobs by completing the implementation of 4,084 projects with a total cost of US$7.7 billion, including 158 large production projects worth US$3.4 billion and 3,926 regional projects worth US$4.3 billion.

Tasks have been set for organizing the export of goods and services in the amount of US$4.2 billion in October - December of this year by further supporting the export of finished products with high added value in such industries as textile, leather and footwear, electrical engineering, construction materials, silkworm breeding. and the food industry.

In the development of road transport and engineering and communication infrastructure, the commissioning of social facilities, tasks were set to ensure the commissioning of 57 secondary schools and 119 preschool educational organizations by November 15 of this year, the development of a master plan for 72 cities and towns, as well as 100 gatherings citizens of mahallas.

The attention of the meeting participants - deputy prime ministers, members of the Government, heads of departments, khokims - was drawn to the need to unconditionally fulfil the target parameters of the current year indicators in order to create a solid foundation for a successful start in 2022.

Along with this, they were instructed to work out and report on a set of measures to implement the proposals received during the meetings and dialogues with the voters of the President of the Republic of Uzbekistan Shavkat Mirziyoyev, as well as other candidates for the post of President of the country.

Based on the results of the discussion of the issues on the agenda of the meeting, appropriate decisions were made, the personal responsibility of managers at all levels for the timely and high-quality implementation of the tasks assigned to them was determined.

 

https://www.uzdaily.uz/

A meeting was held at the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan between First Deputy Minister L.Kudratov and Chairman of Mangold Consulting company Klaus Mangold.

During the productive dialogue, the sides exchanged views on a wide range of topical issues of bilateral cooperation, including the implementation of joint investment projects, as well as cooperation in the fields of education and the implementation of joint initiatives.

Significant opportunities were noted for the development of investment cooperation in such areas as energy, agriculture, food and chemical industries, production of construction materials, transport and tourism.

The parties will continue joint work on attracting potential counter-partners from among Uzbek and German entrepreneurs to implement mutually beneficial investment projects.

Following the meeting, the parties agreed to continue cooperation in areas of mutual interest in trade and economic areas.

 

https://mift.uz/

On October 28, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with Chairman of the Board of the Eurasian Economic Commission (EEC) M.Myasnikovich in Moscow.

The current state of cooperation and mechanisms for solving common tasks within the framework of Uzbekistan's interaction with the member states of the Eurasian Economic Union (EAEU) were discussed. The parties expressed mutual commitment to the principles of mutually beneficial economic partnership, equality and consideration of national interests, as well as the implementation of joint measures to create additional opportunities for closer cooperation between Uzbekistan and the EAEU countries.

The urgency of strengthening cooperation in such areas as the development of industrial cooperation, simplification and digitalization of trade procedures, improvement of existing sanitary, phytosanitary and veterinary norms and standards, diversification of transport corridors, transfer of technology and partnership in the field of ecology and environmental protection was noted.

An agreement was reached on the joint development of a Roadmap for cooperation with the EEC in order to increase trade and economic ties between Uzbekistan and the EAEU member states, which will include specific measures for cooperation between the relevant ministries and agencies of the country with the relevant divisions of the EEC in such areas as trade, industry, customs and tax administration, technical regulation, sanitary and phytosanitary standards, energy, pharmaceuticals, labour migration and others.

The parties also agreed to work jointly on the attraction of potential investors from the EAEU member states to establish industrial cooperation and implement joint investment projects.

As a result of the meeting, priority measures were outlined to solve the tasks set and promote agreed initiatives in the discussed areas of cooperation.

 

https://mift.uz/

n October 28 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov met with Deputy Prime Minister of the Russian Federation A.Overchuk in Moscow city.

During the meeting, an extensive agenda of multifaceted cooperation, implementation of existing agreements in investment, trade, economic, financial, technical, cultural and humanitarian areas, as well as issues related to the preparation for the upcoming visit of the President of Uzbekistan to the Russian Federation and organization of the planned activities within its framework, including the Interregional Forum, Media Forum and Educational Forum were discussed.

The parties appreciated the activity of bilateral contacts at the governmental level and emphasized the mutual interest of the business communities of the two countries in the consistent strengthening of mutually beneficial cooperation in all priority areas.

In the course of the dialogue, the parties also discussed the prospects for expanding the partnership by covering new areas to establish cooperation between line ministries and agencies of the two countries.

The successful holding of the 22nd meeting of the Uzbek-Russian Intergovernmental Commission on Economic Cooperation was highly noted, where issues of further enhancement of partnership in investment, trade, transport, transit, interregional, cultural and humanitarian cooperation were comprehensively considered and elaborated.

Joint steps to expand sectoral diversification of the portfolio of joint projects and increase the involvement of private companies in the implementation of investment initiatives have been elaborated.

Following the meeting, an agreement was reached to continue coordinated cooperation in the reviewed areas of partnership.

 

https://mift.uz/

On October 27, the 22nd meeting of the Intergovernmental Commission on Economic Cooperation between the Republic of Uzbekistan and the Russian Federation was held in Moscow. The meeting was co-chaired by Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and Minister of Economic Development of the Russian Federation M. Reshetnikov. Its work was also attended by heads of key ministries and departments of the two countries.

The agenda covered a wide range of issues of trade, economic, investment, industrial, transport, logistics, cultural and humanitarian cooperation between two countries.

It was noted that due to the efforts of the Heads of the two countries, the relations between Uzbekistan and Russia are at an unprecedented high level and characterized by sustainable dynamics of development, which forms the preconditions for deepening cooperation in priority areas.

The sides underscored the significant progress achieved in the economic partnership between the two countries. The number of enterprises established in Uzbekistan with the participation of Russian capital has grown 2.5 times over the past 4 years and exceeded the mark of 2,000 units, while over 200 Uzbek-Russian enterprises have been created in the country during 9 months of this year. More than 150 joint projects worth over USD 14 billion in petrochemicals, mining metallurgy, energy, healthcare and pharmaceuticals, construction materials, textiles as well as fruit and vegetable processing are currently underway in Uzbekistan. The effective activity of the joint Project Office established between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Ministry of Industry and Trade of the Russian Federation, whose function is to generate promising investment proposals and to form new projects for subsequent implementation, was noted. It was announced that at the moment experts and specialists of the Project Office are working on a new portfolio of more than 180 projects worth about $9 billion. Productive work is underway to establish new ties between the Uzbek and Russian business communities including mutual business missions, forums, trade exhibitions and other joint events. For instance, the Innoprom industrial exhibition held in Tashkent this year resulted in the signing of more than 300 agreements worth more than $3 billion.

Positive trends in the development of mutual trade were discussed. The sides emphasized the considerable potential for further expansion of interaction in this sphere. The "Agroexpress" project on accelerated delivery of agricultural products in refrigerated trains may become a driver of Uzbek-Russian trade development. It is planned that the first pilot delivery of fresh fruits and vegetables from Uzbekistan will take place in mid-November this year. "Our common task is to have 1 million tons of products delivered to our countries by rail by 2030," M. Reshetnikov noted.

The development of interregional cooperation was also one of the key areas of the agenda. It was declared that delegations of heads of seven regions of Uzbekistan have visited 20 Russian regions in the last two months and had substantive negotiations on prospects for further cooperation. It was agreed that in order to further expand interregional ties, mutual additional visits of heads of regional administrations of Russia and Uzbekistan would be organized in the near future to study new industrial cooperation projects and conclude trade contracts.

Special attention was also paid to cultural and humanitarian cooperation, in particular, to interaction in the field of education. It was noted that 15 branches of Russian higher education institutions are currently operating in Uzbekistan. On October 1 this year, a branch of the VGIK (All-Russian State University of Cinematography named after S.A. Gerasimov) was opened in Tashkent, while two more universities, the Russian State University of Design and Technology named after A.N. Kosygin and the Moscow State University of Geodesy and Cartography are expected to open branches in the near future. The issues of training highly qualified personnel, cooperation in the research and development sector, as well as holding a number of joint events such as the Educational Forum, Media Forum, the Days of Uzbek Culture in Russia and others were discussed in this context.

During the meeting, the heads of ministries and agencies of the two countries outlined promising visions of further development of cooperation in the context of industries and areas in the form of presentations. The proposed initiatives were considered in detail and the format of cooperation for their promotion and practical implementation in the context of investment, trade, development of industrial cooperation, transport and transit, cultural and humanitarian cooperation and tourism was defined.

In particular, significant prospects for deepening cooperation in the fields of energy, pharmaceuticals and mechanical engineering were outlined. Russian companies will take an active part in modernizing Uzbekistan's mining and metallurgical enterprises and in implementing joint machine-building and machine-tool industry projects. Also, it is planned to gradually increase the production of automobiles and agricultural machinery on the basis of Russian technologies. Opportunities to attract Russian investments for the modernization of energy-generating capacities in Uzbekistan and implementation of projects in the field of alternative energy were considered.

An agreement was reached to activate the work of all 9 relevant IGC sub-commissions consisting of the heads and specialists of the relevant ministries and agencies of the two countries - it was agreed that the heads of sub-commissions will soon approve individual plans of practical measures for the next year for the qualitative implementation of all agreements reached, reflecting the expected results, specific mechanisms, responsible executors and deadlines. The issue of creating 2 new sub-commissions on innovations and digital technologies in the field of labour migration was also agreed upon.

Following the meeting, a final protocol was signed, reflecting the key agreements reached during the event.

 

https://mift.uz/

On October 27, as part of the Uzbek government delegation's visit to the Russian Federation, a meeting was held between the co-chairs of the Uzbek–Russian Intergovernmental Commission on Economic Cooperation - Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov and Minister of Economic Development of the Russian Federation M.Reshetnikov.

During the meeting, a constructive exchange of views took place on the current state and prospects for deepening economic partnership between the two countries in priority areas.

Specific investment projects, proposals for increasing mutual trade, strengthening transport and logistics ties as well as developing cooperation in the banking and financial sectors were considered in detail.

The new most promising initiatives were considered, including proposals developed by the Project Office established between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Ministry of Industry and Trade of the Russian Federation.

Noting the significant potential for increasing the Uzbek-Russian trade turnover, the parties agreed to conduct a deep and comprehensive study of all existing barriers and develop mechanisms to eliminate them, including through the harmonization of technical regulations and standards, sanitary and phytosanitary standards, as well as digitalization of customs procedures.

The format of further cooperation to improve conditions for increasing the volume of mutual cargo transportation has been determined, including by increasing the efficiency of using existing and creating new transport corridors connecting the two states.

The parties agreed to accelerate the finalization and coordination of a new "Program of trade, economic, investment, cultural and humanitarian cooperation for 2022-2026" - a single strategic document defining the further development of bilateral cooperation between Uzbekistan and Russia with the indication of specific measures, mechanisms, timelines and responsible agencies. The roadmap for its implementation will be developed simultaneously.

With the involvement of the heads of relevant ministries and agencies, all existing issues in key areas of cooperation were discussed, mutually acceptable solutions were worked out, further actions to promote joint projects and initiatives were outlined. Following the meeting, the parties agreed to intensify cooperation in the considered areas of cooperation.

 

https://mift.uz/

One of the drivers of cooperation between the two countries is the Agroexpress project for the accelerated delivery of agricultural products from Moscow to Tashkent and back in a refrigerator train.
TASHKENT, 28 Oct - Sputnik. Russia and Uzbekistan expect to increase the volume of mutual railway supplies of agricultural products to 1 million tons by 2030.
This is stated in a press release from the Ministry of Economic Development of the Russian Federation.
An important role in the implementation of the plan is played by Agroexpress: regular and fast delivery of products in a refrigerated train along the Tashkent-Moscow route is expected.
A pilot supply of fresh fruits and vegetables from Uzbekistan will take place in November, and Agroexpress will start operating on a permanent basis in December.
The project has great potential: the Russian domestic market is expected to be provided with quality products, primarily in the off-season.
This will have a positive impact on food security and prices.
Russia will export the products of its agro-industrial complex to Uzbekistan by the same train trains.
As for the trade turnover between the countries, there will be steady growth, Reshetnikov emphasized.
 
 
 

Minister of Energy of Uzbekistan Alisher Sultanov and Chairman of the Gazprom Management Committee Alexey Miller held talks in St. Petersburg on October 27, 2021.

The parties expressed satisfaction with the progress of cooperation in the field of energy, discussed current and future issues of interaction, including joint projects for gas production at the fields of the Republic of Uzbekistan.

Cooperation between the parties, in particular, is developing within the framework of the Production Sharing Agreement for the Dzhel field, signed by the Ministry of Energy of the Republic of Uzbekistan and Gazprom EP International.

During the talks, A. Sultanov and A. Miller also discussed further cooperation within the framework of the Strategic Partnership Agreement planned to be signed between the Ministry of Energy of the Republic of Uzbekistan, the State Committee for Geology of the Republic of Uzbekistan and PJSC Gazprom.

We add that in 2017, an Agreement on Strategic Cooperation was concluded between the Uzbekneftegaz JSC supervised by the Ministry of Energy and Gazprom PJSC. In May 2018, Uzbekneftegaz and Gazprom signed Supplementary Agreement No. 2 to the Production Sharing Agreement for the follow-up development of the Shakhpakhty field. The document provides for the continuation of gas production until 2024. 

The interests of PJSC Gazprom in Uzbekistan are represented by Gazprom EP International BV, a specialized enterprise of PJSC Gazprom for the implementation of foreign projects in the field of prospecting, exploration and development of hydrocarbon deposits.

 

https://minenergy.uz/ru/news/view/1559

On October 26 this year, Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov held a meeting with Deputy Director-General of the World Trade Organization (WTO) Xiangchen Zhang.

During the meeting, the current state of the negotiation process on Uzbekistan's accession to the WTO, as well as further steps for cooperation in this area were discussed.

Xiangchen Zhang expressed high appreciation for the efforts of Uzbekistan’s leadership to intensify the country's accession to the WTO. He further noted that, thanks to measures initiated by the Uzbek side, cooperation with the Organization has become dynamic and intensive. WTO Deputy Director-General also emphasized that Uzbekistan is the first country he has visited since taking up a new position in August of this year.

For Uzbekistan, WTO accession is a priority aimed at further integration of the country into the multilateral trading system.

It was emphasized that the country's Government is committed to continuing the implementation of measures to liberalize trade nad modernization of the foreign trade reform systems based on the principles and rules of the WTO agreements, encouraging foreign investment, and introducing the best global practices to provide sustainable economic growth.

The parties discussed practical issues of cooperation on holding the 5th meeting of the Working Party on Uzbekistan's accession to the WTO by the end of this year. The leadership of the Organization expressed readiness to provide comprehensive support in holding this event and in general in the process of Uzbekistan's accession to the WTO. An agreement was reached on expansion of technical assistance to Uzbekistan by the WTO Secretariat and its international experts in preparation of the necessary documents.

Following the meeting, the parties indicated mutual readiness to intensify joint work to accelerate the advancement of all issues related to the negotiation process.

 

https://mift.uz/

Leading Canadian gold mining company B2Gold will invest $ 5 million in the exploration of gold deposits in Uzbekistan by the end of this year. 

"The company is increasing its investments in Uzbekistan, this year they will reach $ 5 million. The funds are directed to geological exploration. We are confident that these efforts will be crowned with the discovery of deposits, and the company will be able to extract gold in Uzbekistan in partnership with the Navoi Mining and Metallurgical Plant," Neil Neil Reeder, vice president of government relations at B2Gold, noted during the Senate talks.

A Canadian company first entered our market in 2018 with an exploration agreement. In 2019, she invested $ 2.18 million in projects in Uzbekistan, and more than $ 3 million in 2020.

Now Canadians are engaged in the geological study of three promising gold deposits in the Navoi region.

The largest mining enterprise in Uzbekistan, specializing in the extraction and processing of gold, is the Navoi MMC. Its production volume is about 80 tons of gold per year.

 

https://podrobno.uz/

€2 million grant by Environmental Remediation Account for Central Asia 

Preparations to tackle the legacy of former uranium mining sites in Uzbekistan can begin, following the signing of a grant agreement today between the Environmental Remediation Account for Central Asia (ERA) and the government of Uzbekistan.

The €2 million grant will support a recently established Project Management Unit (PMU), which will be dealing with the environmental remediation of the former uranium mining sites at Yangiabad and Charkesar, located in the mountains east of the Uzbek capital Tashkent.

The grant agreement was signed at a hybrid ceremony attended by Balthasar Lindauer, EBRD Director, Nuclear Safety Department, and Islombek Boqijonov, Deputy Chairman of the State Committee for Ecology and Environmental Protection of Uzbekistan. The signing follows the approval of an updated Strategic Master Plan (SMP) for resolving the uranium legacy in Central Asia.

As a first step, the PMU can start preparing the necessary tender documentation for remediation works at the two sites. Physical work on the ground is expected to begin in the third quarter of 2022 and will take approximately two years to complete.

Located at an altitude of 1,300 metres in an area with a high risk of seismic activity, and around 70 km from Tashkent, Yangiabad was a uranium mining site for nearly 40 years. It is spread across a 50 km2 area and contains about 2.6 million m3 of radioactive waste. Planned remediation works include closing four shafts, demolishing contaminated buildings and processing facilities, relocating several waste rock dumps to a central covered dump and other associated activities.

The village of Charkesar, located in the mountains 140 km to the east of the Uzbek capital, was a uranium mining site until 1995 and is still home to approximately 3,500 people. Planned remediation works at this site include the closure of two shafts and the demolition of abandoned buildings.

The SMP was approved in September 2021 by the Kyrgyz Republic, Tajikistan and Uzbekistan, as well as the International Atomic Energy Agency (IAEA), the European Union (EU), the EBRD and the Russian State Atomic Energy Corporation (Rosatom). It will serve as an example of how to coordinate nuclear remediation activity at priority sites.

The ERA, established in 2015 at the initiative of the EU and managed by the EBRD, addresses the legacy of Soviet uranium mining in Central Asia. The EU is the ERA’s biggest donor, while contributions have also been made by BelgiumLithuaniaNorwaySpainSwitzerland and the United States of America.

 

https://www.ebrd.com/

British American Tobacco (BAT) has again increased its share in the capital of the Samarkand company Samfruit, following from the data of the stock exchange.

The OTC transaction took place on October 22nd. BAT bought another 512 thousand shares (1.45%). Now she owns 12.4 million shares - this is 36.55% of Samfruit.

This deal is the third one to date between the two companies in 2021. In June, BAT acquired 712,000 Samfruit shares or 2% of its capital. In September, it expanded its stake by another 0.99%, purchasing an additional 350 thousand shares of the Samarkand company.

 

In 2019, JV "UzBAT" invested $ 11 million in the creation of a joint venture with Samfruit. The money was planned to be used to purchase equipment for freeze-drying and air drying, additional packaging and packaging of fruits and vegetables.

Samfruit is an Uzbek-Swiss joint venture established in 2003. The company is a manufacturer and distributor of natural dried vegetables and dried fruits. Today, Samfruit products are exported to 16 countries.

JV "UZBAT" was established in 1994. In 1997, the company built the Samarkand cigarette factory. British American Tobacco's investments in the Uzbek economy exceeded $ 400 million.

 

https://www.spot.uz/

On October 25, President Shavkat Mirziyoyev signed a decree aimed at the uninterrupted supply of natural gas to consumers. The document is available on the Lex.uz legislation portal.

According to the decree, the excise tax rate on the sale of imported natural gas will be zeroed.

Also, from January 1, 2022, liquefied gas from local producers will be exempted from excise duty. In addition, importers of natural and liquefied gas will be able to pay VAT in instalments up to 120 days, without interest or providing a deposit.

Earlier, the president signed a law according to which the import of blue fuel is not subject to customs duties.

From exporters to importers

According to Gazprom, in 2020-2021, Uzbekistan from a gas exporting country became an importer. The country received 0.9 billion cubic meters from Turkmenistan. of blue fuel last year and 1.5 billion cubic meters. - only for the first quarter of this year.

At the same time, only 0.54 billion cubic meters were supplied to China in the first quarter, and the sale of gas to Russia has completely stopped. The Ministry of Energy assumes that gas exports will completely stop by 2025.

At a pre-election event in Jizzak on October 21, Mirziyoyev said that Uzbekistan does not intend to again increase gas sales abroad. However, the country will increase imports of fuel to meet the growing needs of the industry - while coal will be used as an alternative for the time being.

“Gas is a wealth for the next generation; it does not need to be sold under any contracts,” the president said.

According to Mirziyoyev, instead of selling gas as raw material, Uzbekistan will produce products with high added value from it, for example, gasoline and polymers at the Uzbekistan GTL plant.

 

https://www.spot.uz/

CEIR is assessing the possible consequences of Uzbekistan's accession to the WTO.   This material provides an assessment of the consequences of accession to the WTO for the pharmaceutical industry. 

Import structure by countries and commodity groups. In 2018, 72.4% of imports came from 10 countries. The largest share of imports by value comes from India, Latvia, Russia, Georgia, the United States and Ukraine. The largest share of imports falls on imports of medicines. In particular, 80% of imports are drugs containing corticosteroid hormones, 10% - antibiotics.

Export structure by commodity groups and countries.   The export of pharmaceutical products is approximately $ 10 million. 90% of the country's export falls on the share of 7 countries - Kazakhstan (25%), Kyrgyzstan (19%), Ukraine (15%), Afghanistan (10%), Georgia (9%), Russia (8%) and Lithuania (4%). 43% of exports go to gauze products to Kazakhstan, Ukraine and Russia, 37% - to medicines containing ascorbic and niacin, mainly to Kyrgyzstan, Georgia, Afghanistan and Lithuania.

The level of tariff barriers in the industry.   Currently, tariffs are not applied for most of the pharmaceutical products that are currently imported into Uzbekistan. For pharmaceutical products, such as dressings (medical cotton wool, gauze, etc.), from January 1, 2020, a tariff of 30% will be charged.

Forecast of scenarios of changes in average import tariffs when Uzbekistan joins the WTO.  Under WTO rules, tariffs used by member countries are very low. Import tariffs for medicines, vaccines or other health products are reduced as global, regional and bilateral agreements on tariff reductions come into effect. Average tariffs for final pharmaceutical products are generally low to moderate in developing countries, with the exception of only a few countries such as India and Tunisia, where they are 30% and 20.6%, respectively. For active ingredients that go into pharmaceutical manufacturing, average tariffs in six developing countries range from 20% to 30% (Burkina Faso, Pakistan, Tanzania, India, Kenya and Tunisia). In some developing countries, duty-free trade is available for a limited number of essential drugs. And several countries mostly WTO members, in their tariff plans, the WTO pledged to provide duty-free access for pharmaceutical products. For example, for Kyrgyzstan, upon accession, tariffs were reduced from 15% to zero, for Kazakhstan they were also reduced from 5% to zero. In the case of Russia, tariffs have also dropped from 10% to 5%. 

As the calculations of CEIR show, for Uzbekistan, accession to the WTO will be accompanied by an increase in imports of $ 5.8 million, if tariffs are reduced to the level of Russia (up to 5%) and by $ 6.7 million, if reduced to the level of Kazakhstan. and Kyrgyzstan (up to 0%).

The level of non-tariff barriers in Uzbekistan and their possible impact on the volume of imports and domestic production. The public sector is the main importer of pharmaceutical products, but procurement procedures are still complex. All types of activities in the field of healthcare in Uzbekistan are subject to licensing. The protection of intellectual property rights is also a major concern for international business. Any government procurement must go through an open tender, while national producers are provided with certain incentives in tenders.

In particular,

- from July 1, 2019, to December 31, 2020, on an experimental basis, when carrying out a public procurement of medicines and medical products, the state customer rejects all applications containing proposals for the supply of imported medicines and medical products, if there are two or more participants - domestic manufacturers of similar products (by the international non-proprietary name);

- enterprises that produce medicines and medical products in the full and incomplete technological cycle, as well as medicines and medical products based on "in bulk" products that do not have similar domestic products, are provided with price preferences in the amount of 20% of the cost of the same products of foreign manufacturers with participation in public procurement.

In addition, the following benefits for local manufacturers are currently envisaged for the development of the pharmaceutical industry in Uzbekistan:

- medicines, raw materials and auxiliary materials, medical products and medical equipment are exempt from value-added tax;

- value-added tax is applied when importing medicines and medical products that have analogues in local production;

- import customs duties are not applied on technological and laboratory equipment, components and spare parts for pharmaceutical products, "clean rooms" for pharmaceutical industries, sandwich panels and ventilation systems, raw materials and materials used in the production of drugs, medical products and packaging materials ...

As calculations of the effects of the abolition of privileges for local producers under the WTO conditions show, their competitiveness will significantly decrease and imports will increase by $ 23 million, which will lead to a 13% reduction in domestic production.

How WTO accession will affect the state budget, welfare and employment of the population.

WTO accession will also have a potential effect on the state budget. In particular, from the reduction of tariffs, cash receipts will decrease to -2.6 million dollars under the terms of Russia's accession and -21 million dollars under the terms of accession of Kazakhstan and Kyrgyzstan, from changes in national production -3.5-3.6 million. dollars, from changes in employment -0.02 million dollars, cancellation of benefits + 24-25 million dollars. 

Also, with a decrease in prices for medicines, the well-being of the population will increase by +1 million dollars. The number of employed will decrease by 500-550 people, due to the termination of the operation of local ineffective industries.

Level of non-tariff barriers in the WTO countries. Calculations of potential exports to other countries based on their demand show that Uzbekistan can increase exports by $ 4.5 million more than now.   At the same time, under the terms of the WTO, for the export of pharmaceutical products to the WTO member countries, manufacturers must switch to certification for compliance with "good manufacturing practices" (GMP). To date, 10 out of 95 domestic pharmaceutical enterprises producing medicines have introduced the requirements of good manufacturing practice - GMP (31 domestic production enterprises have implemented the ISO 9001 quality management system, six enterprises have implemented the international GMP standard and three have implemented the national GMP standard) ...

Implementation of appropriate standards and practices. The WTO rules governing technical barriers to trade that are applied to protect human health are covered by either the Agreement on Technical Barriers to Trade (TBT) or the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS). Health is considered a legitimate target of trade restriction under both of these agreements.

While the TBT Agreement strongly recommends the use of international standards, member countries may opt-out of them if they believe that their application would be ineffective or inappropriate to achieve certain legitimate goals. If a Member considers that certain WHO standards are suitable for adoption as national standards or technical regulations, it should use them. However, members can set standards at a level they deem appropriate but should be able to justify their decisions at the request of another member.

It is advisable to organize work on the implementation of international standards at domestic enterprises, including the requirements of good manufacturing practice (GMP), good pharmacovigilance practice (GVP) and ISO 13485, which regulate the quality and safety management system at pharmaceutical enterprises, without limiting the ability to produce efficiently and safely pharmaceutical products that are competitive in the foreign and domestic markets.

Of no small importance is the introduction of good pharmaceutical practices (GxP) aimed at regulating the quality and safety management system of medicines during distribution (GDP), preclinical (GLP) and clinical trials (GCP), in general, ensuring the effectiveness and safety of products throughout its entire life cycle.

 

https://www.uzdaily.uz/

By decree on digitalization of the insurance market, the President approved the proposal of the Ministry of Finance to issue such securities starting from July 1, 2022.

The agency was also instructed to develop proposals for the direction of insurance premiums from voluntary pension insurance and types of long-term (five or more) life insurance for the purchase of government bonds linked to inflation for investment purposes.

 

What it is

Inflation-indexed securities (inflation-linked securities or real-income securities) provide an investor with protection against price increases.

Bonds could depreciate strongly amid high inflation, given the long maturity and low coupon payments.

In order to smooth out the negative consequences of rising prices, ensure a positive return on investment and thereby attract investors, the state issues special series of securities with protection against inflation. In Russia, for example, such securities began to be issued in 2015 (federal loan bonds - OFZ-IN), in the USA - since 1997 (Treasury Inflation-Protected Securities - TIPS).

The main idea of ​​"anti-inflationary" securities is as follows: since money is constantly depreciating due to inflation, then by the end of the bonds circulation period, the initial par value at the time of maturity of the security does not correspond at all to its purchasing power at the time of issue.

And the coupons, which are paid for by the denomination constantly “losing weight” from inflation, will also decrease each time in real terms. This means that it is necessary to index the “body” of the security by the amount of real inflation.

The most important thing about these bonds is that with a fixed coupon rate, the face value of the securities is constantly indexed in accordance with the consumer price index. That is, if the face value of the bond is 100 soums, and inflation has grown by 3%, the face value of the bond will rise to 103 soums.

Accordingly, the higher the denomination, the larger the coupon will be in monetary terms because it will be calculated from 103 soums.

 

https://www.spot.uz/

On 23 October, the Ministry of Energy of Uzbekistan hosted negotiations with the German company Mangold Consulting GmbH, whose field of activity is business consulting, on attracting investors to new industrial projects.

During the meeting, the First Deputy Minister of Energy of the Republic of Uzbekistan Azim Akhmedkhadjayev and Chairman of the Management Board of Mangold Consulting Klaus Mangold presented the successful experience of the Uzbek-German partnership in the energy sector and discussed the possibilities of expanding such cooperation.

In particular, such examples include partnership projects with the leading German company Siemens AG, joint work with Rothschild & Co to transform Uzbekneftegaz into an investment-attractive and financially independent company, as well as to develop proposals for long-term financing of the gas transmission system modernization program. Republic of Uzbekistan.

Also, during the meeting, Klaus Mangold was informed that in the near future it is planned to sign a memorandum with the German energy agency DENA.

The parties discussed the possibilities of Mangold Consulting GmbH in helping to attract potential German investors in the development and implementation of a project to create an industrial cluster in the Republic of Uzbekistan in the field of gas chemistry.

https://minenergy.uz/

On October 25 negotiations were held between Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and Deputy Prime Minister – Minister of Economy and Finance of the Republic of Korea Hong Nam-ki in the format of videoconference.

During the VC meeting, the parties discussed issues of cooperation in combating the spread of coronavirus, deepening investment, trade and economic cooperation as well as preparation for a series of bilateral events.

The Uzbek side expressed gratitude to the Government of Korea for the assistance rendered to Uzbekistan in combating the pandemic, in particular for the decision to provide Uzbekistan with an additional grant of $5 million for implementation of the "COVID-19 Emergency Response Program".

Possibilities of expanding investment cooperation were discussed: the formation of a new package of new mutually beneficial investment projects was announced, which are under scrutiny of experts from relevant ministries and agencies of both countries.

Further steps to accelerate the implementation of agreed projects with the Korea Eximbank, the Economic Development Cooperation Fund (EDCF) and the Korea International Cooperation Agency (KOICA) were outlined. Possibilities of establishing cooperation with the Economic Development Promotion Facility (EDPF) to implement promising projects in Uzbekistan without sovereign guarantees were also considered.

The sides discussed the progress of joint efforts over preparation of a draft Free Trade Agreement between Uzbekistan and Korea. The parties expressed commitment to intensifying efforts on coordination of existing issues and preparation for signing in the near future.

In addition, the sides considered holding meetings of the Deputy Prime Ministers of the two countries, the Uzbek-Korean Intergovernmental Committee on Trade and Economic Cooperation as well as a business forum with the participation of business circles of Uzbekistan and Korea by the end of this year in Seoul.

Following the meeting, an agreement has been reached to intensify joint work to promote the discussed areas of cooperation with the involvement of relevant ministries and agencies of the two countries.

 

https://mift.uz/

In order to reduce the volume of gas chemical products with high added value imported from imports to the territory of the Republic of Uzbekistan, and to master the production of new types of polymer products, as well as to increase the export potential, experts adopt measures with licensed companies to introduce new highly efficient technologies.

In accordance with the company’s strategy, the implementation of low-tonnage projects is currently planned. The Gas Processing and Gas Chemistry Department is in talks with a number of companies to achieve the goal. In particular, in early September, negotiations were held with the German company ThyssenKrupp AG. In mid-September, at negotiations with the Swiss company Sulzer, attention was paid to the directions and implementation of promising low-tonnage projects aimed at the production of polystyrene and biodegradable polymers, as well as to the issues of their implementation.

The Sulzer company was founded in 1834 in Switzerland. Sulzer has service centers for 180 production sites around the world. Industrial technologies, in particular, have more than 100 licensed technologies for the gas chemical industry.

It should be noted that in the production of biodegradable polymer, renewable products such as corn and sugar cane are used as raw materials. This polymer is used in medicine for the manufacture of surgical sutures, food containers, packaging and other goods.

An innovative biodegradable polymer-polylactide in natural conditions, which can be widely used in the food, medical industry, will help increase the efficiency of economic reforms, bring science and production to a high technological level, and most importantly, reduce the negative impact on the environment.

During the negotiations, the parties received information on issues of interest to them. In order to strengthen cooperation, we analyzed the relevant information and agreed to continue joint work on the implementation of future low-tonnage projects.

It should be noted that low-tonnage projects are one of the main drivers for increasing the economic indicators of our republic. The ongoing negotiations will serve as a factor influencing the growth of the export potential of the republic due to the implementation of promising projects that envisage in the future the production of new types of petrochemical products that are in high demand.

 

https://www.ung.uz/

On October 24, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with the Secretary General of the Economic Cooperation Organization (ECO) Khusrav Noziri, who is in Uzbekistan as an international observer of the presidential elections.

The head of the ECO stressed that the elections of the President of the Republic of Uzbekistan were held at a high political, legal and organizational level. He separately noted the active involvement of the population in the electoral process. According to him, the elections were organized in full compliance with international standards and norms.

During the meeting, the current state and prospects for deepening cooperation between Uzbekistan and the ECO were also discussed. In particular, the issues of strengthening trade and economic ties in the ECO region, expanding intraregional industrial cooperation, increasing mutual tourist flows and implementing cultural and humanitarian projects were considered. 

 

https://mift.uz/

In accordance with the Presidential Decree PD-6167 of the Republic of Uzbekistan, dated 11 February 2021, “On measures to further accelerate privatization processes of state assets”, “UzAssets Investment Company” JSC under the State Assets Management Agency of the Republic of Uzbekistan (hereinafter – UzAssets or Seller) announces its intention to sell 64.08% shares in the chartered capital of JSC "Qo'qon Mexanika Zavodi" (hereinafter referred to as QMZ or the Company) through a competitive sale process (hereinafter – the Deal or Transaction).

Deloitte, an international company, acts as UzAssets' consultant on the Transaction.

Brief information about the Company:

QMZ began operating in 1933. The plant is one of the first enterprises in Central Asia to produce large tanks and vessels for storing oil products under high pressure, as well as other products for the needs of oil and gas companies.

The presence of main and auxiliary workshops, as well as engineering facilities that provide the production process with energy resources, make it possible to provide a full production cycle.

The plant has a staff of qualified engineers and specialists, allowing to develop new nomenclature of products and equipment. Among the clients and partners of QMZ are such companies as JSC UzTransGas, JSC Khududgaztaminot, Fergana Oil Refinery LLC and many others. The production site is located in Kokand, Fergana region, on an area of ​​12.15 hectares.

Sale Process

The sale is organized as a competitive sale process open to all interested parties (hereinafter referred to as "Participants").

The process will consist of receipt of bids from interested participants and subsequent negotiations with one or more interested buyers.

Participants will be invited to express their interest in the form of a letter (hereinafter referred to as the "Expression of Interest" or EOI) prepared in English, Russian or Uzbek, along with supporting documents demonstrating:

  • the ability to finance the Transaction, as well as the operating activities of the Company, at the expense of own and/or borrowed funds;
  • the main conditions of the proposed Transaction (non-binding offer);
  • absence of criminal proceedings and investigations with respect to the founders and beneficiaries, as well as the name of the buyer's officials in the international lists of false entrepreneurs and bankrupts, as well as in similar lists of the Republic of Uzbekistan;
  • compliance with the Law of the Republic of Uzbekistan "On Combating the Legalization of Proceeds of Crime, the Financing of Terrorism and the Financing of Proliferation of Weapons of Mass Destruction".

Submission of the EOI and the documents listed above gives the Applicant the opportunity to examine in detail the Company data prepared by Deloitte via access to the virtual data room, after they have signed the Non-disclosure Agreement. At this stage, Applicants will receive Process letter outlining the basic requirements for Binding Offers, draft of the Sales and Purchase Agreement ("SPA"). The deadline for submission of non-binding offers is no later than 6:00 p.m. Tashkent time on November 22, 2021.

The EOI and BOs must be sent to the following email addresses: rmukhametshin@deloitte.uzyvazhov@deloitte.ru and sh.saidniyozov@uz-assets.uz.

The bidding process is open to all interested Participants.

The deadline for the submission of binding offers will be communicated by the Consultant to the Applicants who have passed to the next stage, additionally. Based on the received binding offers, UzAssets, within two weeks, will determine the list of investors admitted to the Negotiations, who will be personally notified of the selection results. At this stage, Applicants, along with binding offers, must submit their comments on the SPA, which can also be discussed at the negotiation stage.

The participant who has proposed the best combination of the price offer, and the agreed terms of the SPA during the negotiations will be declared the winner. The seller will invite the winner to conclude the Deal in accordance with the legislation of the Republic of Uzbekistan.

Disclaimer

UzAssets reserves the right to change the sequence of the sale process or to refuse to sell to or negotiate with any potential buyer(s) at any time without explanation.

This announcement, or any part of its contents, should not be construed as a form of commitment on the part of UzAssets, QMZ and Deloitte with respect to the sale of the Company, which could be inferred from the publication of this announcement. UzAssets and Deloitte reserve the right, in their sole discretion, at any time and in any respect, without assuming joint or several liabilities.

  • (i) make changes to the application deadline;
  • (ii) follow different procedures with respect to various interested parties, and/or negotiate with one or more potential purchasers within the schedule and procedure provided jointly by UzAssets, the Company, and Deloitte to the exclusion of any other potential purchaser(s) without prior notice;
  • (iii) terminate the sales process for any reason; and/or
  • (iv) terminate any discussions and negotiations with any potential buyer(s) with respect to the Transaction at any time and without giving a reason.

https://uz-assets.uz/

At the Ministry of Investments and Foreign Trade, a meeting was held with the newly appointed Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to the Republic of Uzbekistan R. Gruk.

During the meeting, issues of development of trade, economic, investment, financial and technical cooperation between the two countries were discussed.

Joint actions to hold the Uzbek-Polish business forum in the first quarter of 2022, as well as mechanisms for establishing direct cooperation between the regions of Uzbekistan and Poland and attracting Polish investments for the implementation of projects in the country were discussed.

Following the meeting, the parties agreed to continue cooperation in areas of common interest.

 

https://mift.uz/

The Central Bank left the base rate unchanged at 14% per annum. The decision was made to reduce the inflation rate to 10% by the end of the year, the regulator noted. The main driver of inflation this year was the rise in food prices.

Central Bank of Uzbekistan on 21 October to leave the key rate unchanged at 14% per annum, said the press service of the regulator.

The decision was made "in order to reduce the inflation rate to 10% by the end of the year in the context of accelerating economic growth, maintaining factors that increase prices in the economy and the uncertainty associated with the degree of their influence, as well as achieving a 5% inflation target in the future," the statement said. ...

Economic activity and aggregate demand

Since the beginning of the year, there have been positive trends in the dynamics of domestic and external demand due to increased economic activity and an improvement in the situation with the pandemic, the Central Banknotes.

 

 

In January-September, real GDP grew by 6.9%. Compared to the same period last year, the volume of industrial production increased by 9%, agriculture - by 4.2%, construction - by 4.5% and investment in fixed assets - by 5%. Incomes of the population in real terms increased by 10.4%.

At the same time, the recovery of economic activity in some sectors of the economy to the level before the pandemic will take a longer time. Domestic and foreign tourism, transport, car production (down 32.4% compared to nine months last year) and catering have not yet reached the 2019 level.

Full recovery of economic processes in these sectors in the future will be a supporting factor for high rates of economic growth, the Central Bank stressed.

The main factors behind the recovery in consumer demand in the economy during the year were financial incentives, the resumption of economic processes in the private sector and the growth of external economic relations against the background of the stabilization of the macroeconomic situation in the main trading partners. Retail turnover, reflecting the state of consumer demand, increased by 9.8% in real terms.

The volume of production of consumer goods in January-September increased by 10.9%, food products - by 18.3% and non-food products - by 6.9%.

The volume of loans issued by banks during this time increased by 33% compared to the same period last year and reached 119.5 trillion soums. The number of car loans issued to the population increased 1.6 times, microloans - 1.7 times and microloans - 2.3 times.

This served as an important channel for maintaining consumer and investment demand, the Central Banknotes. At the end of this year, growth in credit investments is expected, proportional to the growth of nominal GDP in the range of 16-18%.

External economic conditions

Over the past period this year, the global economic environment has seen an acceleration of inflationary processes against the backdrop of significant increases in prices for basic food and energy resources, as well as tightening monetary conditions in response to most developing countries.

In January-September, the volume of exports (excluding gold exports) increased by 34% over the same period last year. In the context of accelerating economic activity and a full resumption of production processes in key sectors of the economy, imports increased by 18.7% over the same period last year and reached the level preceding the pandemic.

In addition, the volume of remittances to the country in nine months amounted to $ 5.7 billion, an increase of 34.2% compared to the same period in 2020 ($ 4.3 billion) and by 29% compared to the corresponding period of 2019. ($ 4.5 billion).

The exchange rates of the national currencies of the main trading partners (with the exception of Turkey) have not changed significantly since the beginning of the year and did not cause a gap in the real effective exchange rate.

Inflation and inflation expectations

At the end of September, annual inflation amounted to 10.8%, which is slightly higher than the forecast in the baseline scenario, the Central Banknotes. The main driver determining the dynamics of general inflation this year was the change in food prices - it made an increasing contribution to the annual inflation rate of 6.1%.

The annual growth rates of prices in the groups of non-food products and services, consisting of components with stable dynamics, in September amounted to 7.7% and 8.8%, respectively, which contributed to the deceleration of general inflation.

The level of core inflation, which is sensitive to monetary factors, has formed below the general level of inflation since June and amounted to 9.2%, having decreased by 3% since the beginning of the year.

The inflationary expectations of the population for the next 12 months in September fell to 15.8%, and of business entities - to 14.7%. They still remain above the general inflation rate, as in many other countries, the Central Bank emphasizes. This is primarily due to the high growth rates of prices for food products and energy resources.

At the end of September, prices for food products increased by 14.4% in annual terms, energy prices - by 23.2%. The rise in prices in these groups of goods is the main factor that has a negative impact on the downward trend in overall inflation.

Monetary conditions

As a result of a number of changes introduced by the Central Bank in the operations of monetary policy and related operational measures, the weighted average interest rates in the money market, after a significant decrease in May-July, amounted to 13% in August and 13.3% in September. within the limits of the interest rate corridor and approached the main rate of the Central Bank.

An increase in the activity of banks in the money market was observed due to the expansion of the interest rate corridor. In particular, transactions were carried out in the amount of 8.4 trillion soums in August and 7.6 trillion soums in September (an increase compared to July by 46.6% and 31.3%, respectively).

At the end of September, the average profitability of deposits on household deposits amounted to 20.3%, on funds of legal entities - 15.3%. Real interest rates calculated on the basis of inflationary expectations of the population also remain positive - at the level of 3-4%.

This contributed to the growth of total time deposits in the national currency by 29.5%, including time deposits of individuals in the national currency by 51%.

Due to high economic activity and demand, interest rates on loans increased slightly compared to the beginning of the year. The weighted average interest rate on loans to the population in September amounted to 21.4%, and on loans to legal entities - 21.1%.

Forecast and risks

The transition of headline inflation to declining dynamics, the formation of core inflation within the forecasted range and the maintenance of the current moderately tight monetary conditions will be factors contributing to the achievement of the forecast inflation rate of 10% by the end of the year.

Maintaining the growth of loans allocated to the economy within the growth rates of the nominal gross domestic product in the coming months will not exert additional pressure on the prices of the domestic market and the exchange rate of the national currency.

The measures taken by the government to stabilize the prices of basic food products will minimize the impact of the transfer of price increases in external markets to the price level of the domestic market.

 

https://www.gazeta.uz/

In January-September 2021, the foreign trade turnover (FTO) of Uzbekistan reached US$28.22 billion, which, compared to the same period in 2020, increased by US$680.4 million (an increase of 2, 5%). This was reported by the State Statistics Committee of Uzbekistan.

Of the total volume of the FTO, exports amounted to US$10.33 billion (by January-September 2020, a decrease of 17.2% was noted), and imports - US$17.88 billion (an increase of 18.7%). As a result, the foreign trade balance amounted to a passive balance of US$7.55 billion.

The largest volume of foreign trade turnover was recorded in May 2021 and was noted at the level of US$4.25 billion. Compared to the same month of 2020, its increase amounted to US$2.08 billion. In September 2021, the volume of foreign trade turnover amounted to US$3.25 billion, compared to the same period in 2020, it increased by 10.1%.

Uzbekistan’s foreign trade turnover in the third quarter of 2021 amounted to US$10.2 billion, which is 6.5% less than the previous quarterly indicator.

Among the 20 large partner countries in foreign economic activity, there is also an active foreign trade balance with four countries, in particular with such as Afghanistan, Kyrgyzstan, Tajikistan and Turkey. The remaining 16 countries maintain a passive balance of foreign trade turnover.

Today Uzbekistan carries out trade relations with 179 countries of the world. The largest volume of foreign trade turnover was recorded with the PRC (19.1%), the Russian Federation (18.1%), Kazakhstan (9.9%), Turkey (8.6%), the Republic of Korea (4.9%), Kyrgyzstan (2.4%) and Germany (2.0%).

In the structure of the republic’s foreign trade turnover, a significant share is noted in Tashkent, which is 41.0%, or US$11.55 billion, and the smallest share is recorded at 1.1%, or US$306.9 million, which is noted in Surkhandarya region.

The share of foreign trade turnover with the CIS countries, compared to the same period in 2020, increased by 7.9% and their share in foreign trade turnover, in January-September 2021, made up 38.4%.

The volume of foreign trade turnover of other states in January-September 2021, compared to the same period in 2019-2020, accordingly decreased and amounted to 61.6% of the total volume of foreign trade turnover.

The foreign trade turnover of the Republic of Uzbekistan with the CIS countries reached US$10.83 billion, of which the volume of exports amounted to US$3.77 billion, and the volume of imports - US$7.06 billion.

The largest volume of foreign trade turnover with the CIS countries was recorded with the Russian Federation (47.3%), Kazakhstan (25.9%) and Kyrgyzstan (6.3%).

The foreign trade turnover of the Republic of Uzbekistan with the EAEU countries made up US$8.88 billion, of which the volume of exports amounted to US$2.91 billion, and the volume of imports - US$5.97 billion.

In January-September 2021, the total number of exporting entities amounted to 5,789 units, which ensured the increase in the volume of gold exports to US$8.64 billion (an increase in comparison with the same period in 2020 amounted to 34.2%).

In the structure of exports, 82.2% are goods, which mainly fall on industrial goods (30.3%), food products and live animals (8.9%), chemicals and similar products (7.2%)

The largest export volume was recorded in May 2021 and was noted at the level of US$2.25 billion. Compared to the same month in 2020, its increase amounted to US$1.52 billion.

In September 2021, the volume of exports amounted to US$1.05 billion and, compared to the same period in 2020, increased by 21.9%.

Exports of Uzbekistan in the third quarter of 2021 amounted to US$3.27 billion, which is 29.7% less than the previous quarterly figure.

Due to a decrease in exports to other foreign countries, the share of exports to the CIS countries increased and their share in its total volume amounted to 36.5%.

Compared to 2019-2020, our main partners in the export of goods and services in foreign trade in January-September 2021 were countries such as China, the Russian Federation, Turkey, Kazakhstan, Kyrgyzstan, Afghanistan and Tajikistan. Their share in the total export volume reached 65.2%.

In the structure of the republic’s exports, a significant share is noted in the city of Tashkent, which is 27.0%, or US$2.78 billion, and the smallest share is recorded at 1.4%, or m143.7 million in Surkhandarya region.

The volume of exports of fruits and vegetables amounted to 1.06 million tons and, in value terms, exceeded US$624.9 million (the rate of decline, compared to the same period in 2020, respectively, amounted to 10.1%). On the basis of this, 593.3 thousand tons of vegetables were exported for US$254.0 million, as well as 226.6 thousand tons of fruits and berries for US$215.8 million.

In January-September 2021, the share of fruits and vegetables in total exports amounted to 6.1%.

The main export markets for fruit and vegetable products are in the Russian Federation, Kazakhstan, Kyrgyzstan and Pakistan.

According to the results of January-September 2021, the largest volume in value terms of exports of fruits and vegetables falls on the Russian Federation (33.1% of the total volume of fruits and vegetables), which exceeds the volume of exports to China by 6.1 times.

At the end of January-September 2021, the export of textile products was carried out in the amount of US$2.12 billion, which amounted to 20.6% of the total export volume and, compared to January-September 2020, it increased by 58.3%.

In the structure of export of textile products, the main share is taken by cotton yarn (55.2%), as well as finished knitwear and garments (22.6%). In January-September 2021, more than 477 types of textile products were exported to 63 countries of the world.

The largest share of textile exports falls on the Russian Federation (US$661.7 million - 31.1%) and China (US$528.4 million - 24.8%).

The volume of exports of services in January-September 2021 amounted to US$1.84 billion, or 17.8% of total trade exports and increased by 24.4% compared to the same period in 2020.

The lion’s share of the export of services is taken by transport services (69.8%), travel (tourism) (14.5%), telecommunications, computer and information services (7.1%), and other business services (4.5%).

At the same time, other services (4.1%), respectively, account for the largest share of financial services (1.1%), insurance and pension services (0.9%), construction services (0.7%), etc.

During the reporting period, imports amounted to US$17.88 billion (an increase in growth rates, compared to January-September 2020, amounted to 18.7%). The main share in its structure is occupied by machinery and transport equipment (33.5%), industrial goods (18.3%), as well as chemicals and similar products (14.2%)

An analysis of the dynamics of imports of goods also showed that in January-September 2021, compared to the same period in 2020, the volume of imports of goods increased by US$2.44 billion and amounted to US$16.66 billion, while imports of services reached US$1.22 billion.

The largest volume of imports was recorded in July 2021 and was noted at the level of US$2.5 billion. Compared to the same month of 2020, its increase amounted to US$773.5 million. In September 2021, the volume of imports amounted to US$2.2 billion and, compared to the same month period of 2020, it increased by 5.2%.

Uzbekistan’s imports in the third quarter of 2021 amounted to US$6.93 billion, which is 10.9% more than the previous quarterly figure.

The share of imports from the CIS countries, compared to the same period in 2020, increased by 3.5% and their share in foreign trade turnover, in January-September 2021, amounted to 39.5%.

In general, according to the results of January-September 2021, goods and services from 153 countries were imported to the Republic of Uzbekistan. One third of imports comes from such large partner countries as the Russian Federation, China, Kazakhstan, the Republic of Korea, Turkey, Germany and Turkmenistan.

In the structure of the republic’s imports, a significant share is noted in Tashkent, which is 49.0%, or US$8 769.1 million, and the smallest share is recorded in Surkhandarya - 0.9%, or US$163.2 million.

The volume of imports of services in January-September 2021 amounted to US$1.22 billion, or 6.8% of its total volume, and increased by 44.9% compared to the same period in 2020. Travel (tourism - 48.8%), other business services (11.9%), transport services (11.3%), telecommunications, computer and information services (8.0%) account for the main share of imports of services.

In addition, other services accounted for 20.1% of total imports of services, including a high share of construction services (6.8%), fees for the use of intellectual property (4.9%), maintenance and repair services (3.8%), etc.

In January-September 2021, the volume of machinery and transport equipment in the structure of imports reached US$5.99 billion and increased, compared to the same period in 2020, by 3.7%, in general, the share in the total volume of imports amounted to 33.5 %.

Imports of machinery and transport equipment increased by US$214.4 million. Most of the supply of these goods to the country falls on the PRC - US$2.02 billion (33.7%), the Republic of Korea - US$913.9 million (15.2%) and Russia Federation - US$595.2 million (9.9%).

In January-September 2021, the volume of industrial goods in the structure of imports reached US$3.28 billion and increased, compared to the same period in 2020, by 28.2%, in general, the share in the total volume of imports was 18.3%.

The main imports of industrial goods are cast iron and steel (US$1.39 billion), metal products (US$410.2 million), products from non-metallic minerals (US$279.4 million), textile yarn, fabrics, finished goods (US$273, 4 million), etc.

 

https://www.uzdaily.uz/

State Statistics Committee analyzed data on the number of new enterprises and organizations created in Uzbekistan.

According to the State Statistics Committee, during January-September 2016-2021 the number of enterprises opened annually in the republic has increased by 3.2 times.

The calculation was carried out without taking into account farms and dekhkan farms.

In the first 9 months of 2016, 24,410 enterprises and organizations were created in the country. For the same period in 2017, 32,774 of them were opened, and in 2018 this figure increased to 42,796 enterprises.

In 2019, a sharp jump was recorded - 75,635 enterprises opened in Uzbekistan from January to September. 2020 is characterized by a slight decline - over 9 months, 71,744 organizations were registered. However, already in 2021, significant growth was again noted: 79,289 enterprises were created.

https://www.uzdaily.uz/

The growth of the gross domestic product (GDP) of Uzbekistan in January-September 2021 made up 6.9%. This was announced at a meeting of the Cabinet of Ministers, during which the draft budget for 2022 and macroeconomic indicators for 2021 were discussed.

It was noted that over the nine months of 2021, 338 thousand additional jobs were created. About 77 thousand new business entities started their activities. The volume of investments amounted to 32% of GDP.

It was noted that the volume of exports in January-September 2021, excluding gold exports, increased by 34.1% to US$8.9 billion.

It is expected that the economy of Uzbekistan’s GDP in 2021 will be at the level of 6.5-7%. At the same time, the growth in production in the industry will be 9.1%, construction work - 6.6%, services - 8.6% and agriculture - 2.8%.

In the baseline scenario of forecasting medium-term macroeconomic indicators of the country, the average GDP growth rate is predicted to be 6.5% over the next five years.

Uzbekistan’s GDP is expected to grow by 5.9% in 2022, with higher growth rates in the coming years.

 

https://www.uzdaily.uz/en/post/68914

On 14 October, at a meeting of the Supreme Eurasian Economic Council of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev announced a proposal to hold an industrial forum and exhibition "Innoprom - Central Asia" on an annual basis in Uzbekistan with the EAEU member states.

It should be emphasized that this forum is a new regional format of the international industrial exhibition "Innoprom-2021", which was first held on 5-7 April 2021 in Uzbekistan. More than 1.1 thousand enterprises from 20 countries of the world, including Russia, Armenia, Belarus, Germany, Kazakhstan, Kyrgyzstan, France, Czech Republic, and Japan, took part in it. The main sections of the exhibition were mechanical engineering, energy, metallurgy, chemical industry, pharmaceuticals and medicine. 

The high efficiency of the Innoprom forum was confirmed by the signing of over 20 agreements worth more than US$130 million, as well as the achievement of agreements on the implementation of about 33 projects involving Russian investments worth US$2.2 billion.

Against the background of the fact that today industrial cooperation has become one of the main instruments of economic development, the industrial forum and exhibition "Innoprom - Central Asia" is of particular importance in establishing direct interaction between companies of the Central Asian region with Russia, creating new production chains.

In this context, it should be noted that, within the framework of the industrial policy of the EAEU countries, work is underway to create and develop mechanisms for cooperation ties, financial instruments to stimulate joint projects and eliminate barriers in mutual trade in industrial goods, conditions for import substitution, localization of production and accelerate industrial integration, new high-tech industries.

Historically established economic ties of Uzbekistan with the EAEU states, implying further maintenance of industrial ties and strengthening of cooperation with these countries, actualizes the issue of interaction between the Republic and the Union member states in the industrial sphere.

In this vein, it should be noted that most of the EAEU countries are traditional foreign trade partners of Uzbekistan. At the end of 2020, they accounted for more than 30% of the country’s trade turnover: among the foreign trade partners of Uzbekistan, Russia ranks second with a trade turnover of US$5.6 billion, Kazakhstan - third (US$3.01 billion), Kyrgyzstan - seventh (US$903 million), Belarus - twentieth (US$280.1 million).

At the same time, in Uzbekistan, of the total number of enterprises with foreign capital participation, the EAEU countries account for 32% - the number of operating enterprises with the participation of capital of the business circles of the Russian Federation amounted to 1,934 units, Kazakhstan - 902 units, Kyrgyzstan - 161 units, Belarus - 80 units. Armenia - 36 units.

It is also necessary to take into account the fact that the developed and actively developing sectors of the Uzbek economy are included in the list of priority industrial sectors of the EAEU. In particular, this is the automotive industry, light, chemical and petrochemical industries, the production of machinery and equipment for agriculture and forestry, plastic and rubber products, household appliances, etc.

It is worth emphasizing that over the past few years, Uzbekistan has been paying particular attention to industrial development with the parallel promotion of a policy to reduce raw materials exports and diversify the production of products with high added value. For example, starting in 2018, the export of Uzbek raw cotton has been decreasing, and by 2025 it is planned to stop supplying natural gas abroad.

Based on the fact that the development of industrial production with high added value is facing tough competition in the world market, it became necessary to create a separate platform for discussing and developing new joint ideas and projects in the field of industrial cooperation between Uzbekistan and the EAEU countries. In this vein, the industrial forum and exhibition "Innoprom - Central Asia", initiated by the President of the Republic of Uzbekistan Shavkat Mirziyoyev, will provide an opportunity for establishing new industrial and cooperative ties between Uzbekistan and the EAEU.

In the long term, such cooperation will open up new opportunities for the Uzbek side and the Union countries to expand interregional production chains, achieve international product quality standards, form a new export-oriented production, and implement the most efficient utilization of production capacities.

Ultimately, the industrial cooperation of Uzbekistan with the EAEU member states will significantly increase the competitiveness of industrial enterprises by expanding the volume and range of production of goods with high added value, as well as improving the quality and minimizing production costs.

Aziz Salikhov,

Chief Researcher

Institute for Strategic and Interregional Studies

under the President of the Republic of Uzbekistan

 

https://www.uzdaily.uz/

A conference was held in the capital on the topic: "High-level dialogue on the effective development of energy, water and land resources in the Central Asian countries".

The event was organized by the Organisation for Economic Cooperation and Development (OECD) together with the Federal Ministry for the Environment of Germany as a preparatory stage for the launch of the OECD–initiated four–year project "Transformation of the Energy-Water-Land Relationship in Central Asia".

The conference was attended by First Deputy Minister of Investments and Foreign Trade – Director-General of the Agency for Strategic Development of the Republic of Uzbekistan L.Kudratov, the leadership of the Ministry of Foreign Affairs, the State Committee for Ecology and Environmental Protection, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to the Republic of Uzbekistan T.Klinner, Director of the Federal Ministry for Environment of Germany Yu. Kainhorst, Director of the OECD on Environment R.Lacey, Head of the "Green" Growth and Global Relations Department of the OECD K.Kitamori, heads of relevant ministries and departments of Central Asian countries, as well as representatives of the UNDP, the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Food and Agriculture Organization of the United Nations (FAO), the Regional Environmental Center for Central Asia (CAREC), the Scientific and Information Center for Interstate Coordination of the Water Management Commission of Central Asia (SIC ICWC) and the United Nations Economic Commission for Europe (UNECE).

The purpose of the project, which is scheduled to be launched in 2022, is to develop effective tools for attracting private investment for the implementation of projects related to improving the efficiency of energy, water and land resources. Within the framework of the project, it is also planned to study key factors and develop concrete solutions to ensure sustainable economic growth and food security of the countries of the region.

During the conference, presentations were made on the current environmental situation in Central Asia after the negative effects of climate change, as well as the mission of the proposed four-year project and its role in the region’s socio-economic development.

Foreign experts stressed that the project will help Central Asian countries accelerate the recovery of economic activity in the post-crisis period through an integrated and rational approach to the use of energy, water and land resources.

It was particularly noted that hundreds of projects have been implemented in cooperation with the countries of Central Asia to restore the Aral Sea region. The participants also emphasized that the restoration of the Aral Sea ecosystem and proper management are key to the sustainable development of the economy and the environment of the region, and therefore the Central Asian countries should unite their efforts and take decisive steps to restore the Aral Sea with the active participation of local and foreign communities, development partners and donors.

At the end of the event, a common position was developed on the need to develop a multilateral dialogue with the countries of Central Asia aimed at reducing the negative effects of climate change and ensuring the efficient use of energy, water and land resources. Further joint actions are planned to launch the planned project and the format of cooperation within its implementation.

 

https://mift.uz/

 The Center for Economic Research and Reforms (CERR) presented the results of the development of Tashkent region over the past five years.

The experts presented the main changes in the socio-economic development of the region that have occurred during the last years of active reforms.

In recent years, large-scale creative work has been carried out in Tashkent region. The number of large industrial enterprises has significantly increased, communications have been laid, social facilities and apartment buildings have been built.

Gross domestic product of the region (GRP) for 2017-2020 increased by 19% and amounted to 64.9 trillion soums.

Industrial production increased from 16.9 trillion soums to 65.9 trillion soums (growth 34%).

The number of operating enterprises in the region increased by 39% from 37.5 thousand in 2016 to 52.3 thousand in 2020.

In the field of infrastructure development in Tashkent region for 2016-2020. 28 km of highways, 46 km of gas pipelines and 593 km of water supply networks have been laid.

For five years, about 297 thousand jobs have been created in the region.

Over the past five years, 60 67 thousand square meters of housing have been created in the region, 2.3 thousand places in preschool institutions, 37.2 thousand places in schools, 3.5 thousand places in hospitals.

 

https://review.uz/

On October 16 this year, a meeting of the delegations of Uzbekistan and Afghanistan took place in Termez.

The delegation of Uzbekistan was headed by Deputy Prime Minister - Minister of Investments and Foreign Trade S. Umurzakov, while the Afghan side was represented by Acting Deputy Head of the Interim Government Abdul Salam Hanafi. 

During the meeting, representatives of various ministries and departments discussed issues of border security, cooperation in the fields of investment, mutual trade, energy, international cargo transportation and transit. There was also an exchange of views on the development of ties in the field of education and humanitarian cooperation.

Particular attention was paid to the implementation of infrastructure projects, in particular the laying down of the Surkhan-Puli-Khumri power line and the construction of the Termez-Mazar-e-Sharif-Kabul-Peshawar railway.

The parties discussed ways of interaction in each of the reviewed areas of cooperation and identified priority tasks to address existing issues in priority areas.

As a result of the meeting, a number of bilateral agreements on the discussed issues were reached.

The delegation of Afghanistan expressed deep gratitude to the Uzbek side for the hospitality and fruitful negotiations.

 

mift.uz/

Nine foreign companies were registered as VAT taxpayers in Uzbekistan in 2021. This was reported by the press service of the State Tax Committee.

The list includes Vaskiani Ventures Limited (Cyprus), Google Cloud EMEA Limited (Ireland), Spotify AB (Sweden), ADOBE (Ireland), DELSE, Inc. (USA), Scribd, Inc. (USA), LinkedIn Ireland Unlimited Company (Ireland), Google LLC (USA) and Microsoft Ireland Operations Limited (Ireland).

For 2 years, 28 foreign companies providing electronic services to individuals without establishing a permanent establishment in Uzbekistan have registered with the tax authorities. Among them are Booking.com B.V., Netflix International B.V., Apple, Facebook, Yandex, Huawei and others.

As of September, Facebook paid 7.6 billion soums, GOOGLE COMMERCE LIMITED - 4.6 billion soums, APPLE - 2.2 billion soums, NETFLIX - 331 million soums, Yandex - 256 million soums.

Electronic services mean the granting of rights to use software (including games over the Internet), rights to use e-books, educational materials, musical works, and others.

The new procedure for registration is provided for by the Tax Code from 1 January 2020.

 

https://t.me/soliqnews/

Navoi region: In the next five years, it is planned to implement 2.2 thousand investment projects worth $ 9 billion and create 75 thousand new jobs. This was reported by the press service of the President of Uzbekistan.

These include the creation of a gas chemical cluster worth $ 3.4 billion and the commissioning of seven power plants worth about $ 3 billion.

As a result of the implementation of 120 large-scale projects in the textile industry, 27 thousand new jobs will be created, and in the leather and footwear industry - 13 thousand new jobs as a result of 68 projects. In the mining industry, it is planned to implement 52 projects that will provide jobs for more than 7 thousand people.

In general, due to the capacities that will be commissioned in the next five years, the volume of regional exports will grow 6 times - up to 900 million dollars.

It is also planned to create 70 thousand new jobs by supporting entrepreneurship. For this, an assistant khokim will be assigned to each makhalla, and the population will be provided with organizational and financial support. More than 500 billion soums will be allocated annually within the framework of family entrepreneurship programs.

Tasks in agriculture were also touched upon. Plans were announced for laser levelling of cultivated areas, improving water supply, expanding horticulture and animal husbandry.

The forthcoming measures for the construction of medical and educational institutions, improvement of the quality of services were also noted.

In general, 40 trillion soums will be allocated from the state budget for the economic and social development of Navoi region in the next five years, a total of 180 thousand new jobs will be created.

https://president.uz/

The International Monetary Fund (IMF) has improved its estimate of Uzbekistan's economic growth in 2021 to 6.1 percent. This is stated in the report of the IMF World Economic Outlook.

In April, the IMF predicted that the economy of Uzbekistan will grow by 5 percent. In 2022, experts expect Uzbekistan's GDP to grow by 5.4 percent. / earlier it was predicted 5.3% /.

The dangerous divergence of economic outlook across countries remains a major concern, so the top priority for economic policy is to vaccinate at least 40 percent. population in each country by the end of the year and 70 percent. by mid-2022.

Prior to this, the World Bank also improved its economic growth forecast for Uzbekistan - from 4.8 to 6.2 percent. GDP. The Asian Development Bank has also revised its estimates - this year it expects an increase of 5%. instead of 4 percent.

 

https://yuz.uz/ru/news/mvf-uluchshil-prognoz-rosta-vvp-uzbekistana-v-2021-godu-do-61

Strategic industries envisage the implementation of 5 "megaprojects" for deep processing of raw materials

In the region of Bukhara, 5,000 projects with the total worth of $ 8 billion are expected to be implemented in the near future. the initiative will create 100,000 new jobs. At the same time, in strategic sectors, it is envisaged to implement 5 "megaprojects" for deep processing of raw materials. This was announced by Shavkat Mirziyoyev during a meeting with voters.

In particular, a gas chemical complex worth $ 2.7 billion will be built in the Karakul region, which will process 1.3 billion cubic meters of gas per year. The project will produce 770 thousand tons of polymers per year based on the latest technologies. An industrial cluster will be created around the enterprise, which will produce more than 100 types of products for the chemical, light, electrical, automotive and other industries. This will create 3,000 permanent jobs in the Karakul, Alat, Zhondor and Peshku regions and will produce industrial products worth $ 110 million a year.

Today, there are no sources of electricity generation in the region. Therefore, at the expense of $ 1.6 billion in foreign direct investment, 4 wind, solar and thermal power plants will be built. These stations will generate 6.3 billion kilowatt-hours of electricity per year. In particular, in 2023, two wind farms with a total capacity of 1,000 megawatts will be built in Peshku and Gijduvan.

While ratings of the S&P Global Ratings on Uzbek banks remain low relative to those on their international peers, most have stable or positive outlooks, according to a report published today by S&P Global Ratings titled "The Outlook For Uzbek Banks Is Stable Despite High Competition And Problem Loans".

"Overall, the Uzbek banking sector is managing the impact of the COVID-19 pandemic, and we believe that it will remain resilient to the pandemic's tail effects, including elevated levels of nonperforming loans," said S&P Global Ratings credit analyst Victor Nikolskiy.

"Competition in the banking sector is high, and we expect it to remain so in 2021-2022, with small and midsize banks suffering the most. However, the profitability of the largest state-owned banks will continue to support the profitability of the whole sector," Mr. Nikolskiy added.

The ongoing macroeconomic recovery and the low penetration of consumer finance in Uzbekistan will support solid demand for new lending in coming two years. Although nominal lending growth will fall from extremely high levels, it will remain high compared with other countries in the Commonwealth of Independent States, at 20%-25% on average over the next two years.

On average, Uzbek banks' capital and earnings are positive or neutral for the ratings, although we expect a modest decline in capitalization ratios in 2021-2022, as banks continue to grow and build additional reserves.

The funding profiles of Uzbek banks are largely stable, thanks to growth in corporate and retail deposits and a recent increase in external funding. We believe that banks will continue to rely on domestic funding sources, including government funding, with external funding continuing to grow in importance.

 

https://uzdaily.uz/

On 9 October 2021, the Chairman of the Senate of the Oliy Majlis Tanzila Narbaeva met with the Ambassador, Head of the EU Delegation to the Republic of Uzbekistan Charlotte Adrian.

During the meeting, which took place in a friendly and constructive atmosphere, the state and prospects for the development of bilateral relations between Uzbekistan and the European Union, including the intensification of inter-parliamentary ties, were discussed.

The European side, appreciating the ongoing reforms in our country, noted that Uzbekistan is open to closer international cooperation, conditions have been created for investment and economic growth.

According to the participants, Uzbekistan’s receipt of the status of a beneficiary country of the GSP + system is a recognition of the reforms carried out in the republic, including improving the business climate.

During the conversation, information was provided on 3 important areas of reforms in the European Union in 2021-2027.

Also during the meeting, issues of developing trade and economic ties, partnerships in education, research, innovation and environmental protection, gender equality and others of mutually beneficial interest were considered.

 

https://senat.uz/

Fitch Ratings has affirmed Uzbekistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-’ with a Stable Outlook.

Uzbekistan’s ratings balance robust external and fiscal buffers, low government debt and a record of high growth relative to ‘BB’ rated peers against high commodity dependence, high inflation and structural weaknesses in terms of low GDP per capita and weak institutional and governance levels relative to peers.

The economy will expand by 6.2% in 2021 and growth will maintain strong momentum, averaging 5.7% in 2022-2023 (vs. forecast 3.7% for the ‘BB’ median) supported by a gradual pace of fiscal consolidation, strong investment, continued access to external financing and reforms positively impacting agriculture, construction and industrial production. The evolution of the pandemic and delays in the rollout of vaccination campaigns (16% of targeted population fully vaccinated by mid-September) present downside risks to our growth forecast.

Fitch forecasts that Uzbekistan’s overall fiscal deficit will increase to 5.2% of GDP in 2021, slightly below the government’s 5.5% target and the ‘BB’ median forecast of 5.7%. Our 2021 forecast incorporates a moderate increase in the consolidated budget deficit (general government plus the Uzbekistan Fund for Reconstruction and Development (UFRD) operations and externally financed expenditure) to 3.4% of GDP, up from 2.8% in 2020, but below the government projection of 3.7%. Although the government expects to direct higher-than-budgeted revenues (up 29% yoy in 1H21 vs. 11% budgeted for the full-year) towards additional social and capital spending, some under-execution, as in previous years, is likely.

We forecast a gradual fiscal consolidation with the overall deficit reaching 4.3% of GDP in 2022 and 3.8% in 2023, as authorities continue to emphasise spending on investment, health and education. In addition, the government is considering tax cuts (VAT and property tax) estimated at 1.1% of GDP in 2023, which we expect will only be partially compensated by improvements in tax efficiency and formalisation.

Government debt will rise to 42% of GDP (including 12% of GDP in external guarantees) in 2021, from 37% in 2020, assuming that borrowing matches the government’s plan. We project debt to reach 44% of GDP in 2023, still below the 59% ‘BB’ median forecast, but more than double its 2018 level of 20%. Government debt is almost entirely foreign currency-denominated (96% end-2021 forecast), closely linking macroeconomic stability and debt sustainability.

Mitigating factors to the rapid government debt growth include the structure in terms of maturity and costs, with official debt accounting for 92% of the external stock. In addition, the government aims to increase the share of local currency-denominated funding through more domestic debt issuance, and sold som-denominated external bonds (payable in US dollars) in 2020 and 2021. The government also has high liquid assets (25% of GDP).

The government plans to submit a ‘state debt law’ to parliament in the near term. The legislation will include some measures incorporated in the 2021 budget, such as introducing a 60% of GDP debt ceiling (for public and public-guaranteed obligations) annual borrowing limits (including PPP commitments), and the requirement to undertake corrective measures if debt rises above 50% of GDP. Authorities are also working with multilateral partners in developing a fiscal rule to improve policy predictability. Post pandemic, establishing a record of adhering to borrowing targets and implementing a sustainable fiscal consolidation strategy will be important to preserve public finances as a key rating strength.

Uzbekistan will maintain robust external buffers (forecast reserves at USD35.2 billion in 2021) with reserve coverage (12.6 months of current external payments), almost doubling that of the forecast ‘BB’ median (6.9 months) in 2022-2023. The current account deficit will remain wider than peers (6.5% of GDP in 2021 and average 5.7% in 2022-2023), driven by strong domestic demand, but continued external financing availability, FDI inflows and relative stability in gold prices (62% of international reserves) will prevent significant erosion of reserves.

Sovereign net foreign assets (12% of GDP in 2021) are still strong relative to ‘BB’ peers’, but Fitch expects this ratio to deteriorate over 2022-2023 due to increased external borrowing. Uzbekistan’s net external creditor position remains robust at 39% of GDP. However, external debt has increased rapidly, including increased borrowing from the banking sector (12% of 2021 GDP in 1H21), albeit from a low base.

We expect the Central Bank of Uzbekistan to maintain positive real rates, as part of its transition to inflation targeting. The bank is developing policy instruments to improve policy transmission, but this remains constrained by high inflation expectations, financial dollarisation, shallow capital markets and a still high share of public-sector-funded credit on preferential terms. We forecast inflation to decline to 9.8% by end-2021, but expect that strong domestic demand, salary increases, and electricity and gas tariff adjustment will keep it above rating peers (‘BB’ median of 5.4%) in 2022-2023.

As part of the government’s policy to prevent the build-up of risks to macro-financial stability, credit growth has notably slowed (21% yoy in August), reflecting the phasing out of public sector funding, reduced headroom in capital cushions (capital adequacy ratio of 17.5% at end-July with Tier 1 at 15%) and lower credit allocation to non-financial public enterprises.

Fitch’s Macro-Prudential Indicator of 2*, indicates Uzbekistan’s moderate vulnerability due to fast credit growth in recent years. Non-performing loans increased to 6.2% of the total in August (loans in the bottom three regulatory categories under local GAAP accounting), reflecting the impact of the pandemic but also some seasoning of lending dating from the 2018-2020 credit expansion. Risks to the sector originate from continued exposure to state-owned enterprises (SOE), rapid increase in external debt to fund the domestic credit expansion, an untested loan portfolio, and a large share of foreign currency-denominated loans (50%).

Uzbekistan continues to make progress in its reform agenda, particularly the restructuring of the large SOE sector in the economy, despite the impact of the pandemic and the proximity of presidential elections. Uzbekistan has signed a memorandum of understanding for the sale of Ipotheka bank (8% of total system assets) to OTP, and also sold its participation in a Coca-Cola bottling plant, as part of the process to sell state assets and enterprises.

The government will maintain a strong emphasis on poverty reduction and improvement in social conditions in parallel to the economic reform push. The complexity of the next stage of the reform agenda, especially given the ambitious targets and timeline, will challenge the institutional capacity of the government.

Presidential elections are scheduled for 24 October 2021 and incumbent president Shavkat Mirziyoyev looks likely to win a second term in office. The country is developing its institutional framework to support long-term reform efforts, but progress in governance is likely to be gradual. Spillovers from the change in government in Afghanistan remain limited in terms of potential refugee inflows or risks to political stability.

ESG - Governance: Uzbekistan has an ESG Relevance Score (RS) of ‘5’ for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in our proprietary Sovereign Rating Model. Uzbekistan has a low WBGI ranking at the 19th percentile, reflecting weak rights for participation in the political process and institutional capacity, uneven application of the rule of law and a high level of corruption.

 

https://www.uzdaily.uz/

Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov received a delegation of the leadership of St. Petersburg administration and leading St. Petersburg companies, headed by Chairman of the Committee on Foreign Relations of St. Petersburg administration E.Grigoriev, who visited Uzbekistan on a working mission.

During the meeting the prospects for establishing inter-regional cooperation in trade, economic, investment, cultural and humanitarian areas, interaction in labour migration, as well as the progress of preparations for joint events were discussed.

Perspectives for cooperation in the framework of the "Project Office" created between the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan and the Ministry of Industry and Trade of the Russian Federation were considered with a view to jointly develop promising investment projects and search for potential partners from among the entrepreneurs of St. Petersburg on the one hand, and Tashkent city as well as Samarkand region on the other hand.

The interaction issues in labour migration were considered: the Russian side expressed readiness to cooperate in the organized attraction of Uzbek citizens for work in Russia and to assist in improving their professional skills. In the near future there will be organized visits of Russian profile specialists to Uzbekistan to promote the activities of "Monocentres" operating in the country for professional training.

The sides discussed the course of preparation for participation in the Second Interregional Cooperation Forum undertaken by the administration of St. Petersburg together with the khokimiyats of Tashkent city and Samarkand region: the existing issues were discussed and the further steps to fill the event with practical content were outlined.

During the meeting, an agreement was reached to develop and approve joint "road maps" for cooperation, indicating specific measures, deadlines and executors, by the administration of St. Petersburg from the Russian side and the khokimiyats of Tashkent city and Samarkand region from the Uzbek side. Heads of the respective regions will regularly report on the implementation of these "road maps" during meetings of the Intergovernmental Commission on Economic Cooperation between the Republic of Uzbekistan and the Russian Federation.

As a result of the meeting, another agreement was reached on further intensification of mutual visits of the two countries’ regional administration delegations to expand interregional relations and work out proposals on deepening trade, economic and investment cooperation between the regions of Uzbekistan and Russia.

 

https://mift.uz/

On October 6 this year, an expanded meeting of the Government Commission on Foreign Trade, Investments, Local Industry Development and Technical Regulation was held in the format of a videoconference under the leadership of Deputy Prime Minister of the Republic of Uzbekistan S.Umurzakov to discuss the introduction of a fundamentally new mechanism for the development, financing and implementation of investment projects in the regions of the country.

The meeting was attended by heads of ministries, departments, industry associations, commercial banks and local authorities of the Republic of Karakalpakstan, regions and the city of Tashkent at the regional, district and city levels.

The indicators of investment and foreign trade activity of Uzbekistan for the first 9 months of the current year were considered. The factors that positively influenced the dynamics of attracting investments and stimulating exports in the context of industries and regions have been identified. Reports of responsible executives on the implementation of regional investment programs were heard. The actual tasks of practical support for entrepreneurs in the implementation of investment projects and export activities were outlined. In addition, issues of stimulating the socio-economic development of mahallas were considered.

The key topic of the meeting was a newly developed mechanism to increase the volume of attracted investments and stimulate exports, built on the basis of a systematic approach to the processes of development, search for financing sources and implementation of investment projects, as well as subsequent monitoring of the activities of launched enterprises and industrial facilities. The mechanism is aimed at making full use of the economic and industrial potential of the country's districts and cities and stimulating their accelerated and uniform socio-economic development.

Within the framework of the new mechanism, project groups will be created under the khokimiyats of all 206 districts and cities, which will analyse the available untapped opportunities, taking into account unused land plots, buildings and structures, natural and infrastructural resources. Based on these analyses, project teams will develop strategies and concepts for the development of districts and cities. Coordination of the activities of the project teams will be carried out by the Project Office, to be established under the Agency for Strategic Development of the Republic of Uzbekistan.

On the basis of the developed strategies and development concepts, experts of the Centre for Development of Investment Projects under the Ministry of Investments and Foreign Trade will develop promising investment proposals adapted to the specifics and economic potential of a particular district or city.

Selection of investors and project financing sources will be carried out among local entrepreneurs and foreign companies by local authorities together with the Investment Promotion Agency under the Ministry of Investments and Foreign Trade and the country's diplomatic missions abroad. At the same time, the mechanism envisages allocation of financial assistance to entrepreneurs in the implementation of major projects through attraction of resources from the Direct Investment Fund of the Republic of Uzbekistan.

In connection with the practical implementation of the new mechanism, the responsible heads of ministries, departments, commercial banks and local authorities were given specific and targeted tasks, as well as the necessary explanations and instructions. It was announced that in order to ensure effective interaction of officials during the introduction of the new mechanism, a separate plan of measures has been developed.

Also, responsible executives will receive specially organised capacity building training courses at the Public Administration Academy under the President of the Republic of Uzbekistan with the involvement of qualified domestic and foreign experts. The effectiveness of executives in the practical implementation of the new mechanism on the ground will be assessed through a special rating.

Following the results of the meeting, additional instructions were given to the relevant executives on the practical implementation of the new mechanism of investment attraction and effective use of export potential.

 

https://mift.uz/

On October 7 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov received a delegation from the European Bank for Reconstruction and Development (EBRD) headed by Managing Director of Sustainable Infrastructure Group Nandita Parshad and Managing Director for Central Asia Zsuzsanna Hargitai.

Representatives of the EBRD praised the scale, pace and consistency of Uzbekistan's social and economic reforms, and confirmed the Bank's intention to continue its financial and advisory support for reforms in priority areas such as energy, infrastructure development and others.

During the meeting, the EBRD’s high level of involvement in the promotion of initiatives aimed at modernizing housing and infrastructure in the regions, development of the transport sector and public-private partnerships was emphasized.

In particular, the recent success of an international tender for the construction of a 100 MW wind farm in the Republic of Karakalpakstan under the technical assistance of the EBRD was noted. The tender was won by ACWA Power (Saudi Arabia). A mutual willingness to continue cooperation to disseminate the successful experience of applying the public-private partnership mechanism in other areas, such as education, public transport, utilities and solid waste recycling, was considered.

The ongoing projects in the field of energy, housing and utilities, road construction and ecology were discussed in detail. The parties exchanged views on the need to intensify and expand cooperation in attracting private investments to finance infrastructure projects. Particular attention was paid to the project on purchasing electric buses for Samarkand within the framework of the Green Cities program implementation aimed at transforming the city's infrastructure to cut negative impact on the environment and reduce carbon emissions into the atmosphere. The existing issues and terms of the project implementation, as well as the format of interaction on its accelerated implementation were agreed upon.

The parties also discussed issues related to the implementation of a new project on the construction of high-voltage power lines in Khorezm and Bukhara regions, which will be the first EBRD project in Uzbekistan implemented at the expense of loan without state guarantee. In this context, the parties noted the relevance of further joint work to introduce innovative instruments of blended financing in the implementation of infrastructure projects, which will help mobilize private and foreign investment in this area.

An agreement was reached on cooperation in institutional development and capacity building of the Agency for International Cooperation and Development under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan – EBRD will send expert groups to hold seminars on procurement procedures and provide technical and consultancy support to the Agency in the field of public investment management valuation.

Following the meeting, the parties agreed to continue active cooperation aimed at the quality implementation of current projects and the development of new areas and programs of strategic partnership.

 

https://mift.uz/

In Brussels, within the framework of the participation of the delegation of Uzbekistan in the 9th round of negotiations on the draft Agreement on Expanded Partnership and Cooperation (EPCA) between the Republic of Uzbekistan and the European Union, a meeting was held between the Deputy Minister of Investment and Foreign Trade Republic of Uzbekistan B. Abidov with Director for Sustainable Development and Economic Partnership Agreements of the Directorate General for Trade of the European Commission E. Zinoviec.

The issues of application of preferences of the General System of Preferences of the EU "GSP +" in Uzbekistan and the prospects for bilateral interaction with the European Union within the framework of this mechanism were discussed.

It was noted that Uzbekistan attaches particular importance to further strengthening bilateral trade, economic and investment cooperation with the countries of the European Union, including within the framework of the "GSP +" system, which creates a solid foundation for the diversification and sustainable growth of Uzbekistan's foreign trade with the EU countries.

Following the talks, the parties agreed on practical cooperation to implement joint initiatives to support entrepreneurs in the effective use of the advantages of the EU's Generalized System of Preferences "GSP +".

https://www.uzdaily.uz/

Alexander Liberov, President of Siemens in Russia and Central Asia, paid a business visit to Uzbekistan as part of the continuation of the dialogue with the government of the country on the development of cooperation in high-tech areas.

One of the key goals of the visit is to discuss the implementation of the strategic agreements signed earlier between Siemens and Uzbekistan. During the trip, Alexander Liberov held a number of meetings with partners of the company in the field of industrial production, transport and electrical engineering.

Siemens attaches great importance to business development in Central Asia and views Uzbekistan as one of the promising markets in the region. The company has been interacting with Uzbekistan for a long time in many areas - for example, the country has a cooperation program "Initiative for Uzbekistan", within the framework of which the company's specialists constantly come to Tashkent and other cities of the country to acquaint Uzbek partners with advanced technologies and international experience in the development and implementation industrial projects.

Alexander Liberov met with the leadership of the country and its leading enterprises, including the Prime Minister of the Republic of Uzbekistan Abdulla Aripov, Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan Khurram Teshabaev, Chairman of the Board of the Association "Uzeltehsanoat" Mirziyod Yunusov and others, which made it possible to outline the prospects and ways of further cooperation.

During the visit, key issues related to the digitalization of strategically important industries for Uzbekistan and the introduction of new technologies in the country were discussed. Particular attention was paid to the topic of localization of production of electrical equipment Siemens in Uzbekistan in conjunction with the enterprise "Uzelektroapparat-Electroshield", as well as the development of new areas for the local market: smart grids, digitalization of production, "green portfolio".

In addition, in partnership with the Uzeltekhsanoat Association, Siemens intends to work out a strategic plan for the development of new industries in Uzbekistan and is ready to support the Association's plan to create an educational center in the field of digital technologies. Siemens is also involved in the development of the metallurgy and mining industry based on global advanced technologies in cooperation with the Almalyk Mining and Metallurgical Combine.

Another priority area for the company is innovative solutions for the railway industry. During the meeting with the Uzbek railway operator, the issues of modernizing the railway infrastructure and introducing the latest developments in the field of digitalization and automation were discussed.

“In recent years, many positive changes have taken place in Uzbekistan - the protection of entrepreneurship is strengthening, the liberalization of the economy and the modernization of the credit and banking sector continue, and a new foreign policy strategy is being implemented. This creates a powerful basis for further development, but in order to increase the specific GDP to the level of developed countries by 2030, according to the government's plans, significant investments in infrastructure, energy, as well as advanced knowledge and technologies are required. Siemens is ready for a technological partnership with Uzbekistan: localization, contribution to increasing the competence of personnel, development of green and energy efficient technologies, ”says Alexander Liberov.

https://w3.siemens.ru/

oday, the U.S. Agency for International Development (USAID) launched the eleventh annual Central Asia Trade Forum, an international event promoting regional trade and connectivity across Central Asia and beyond focused on post-COVID recovery and resilience in the region. This five-day virtual event includes over 80 distinguished speakers from around the world including Central Asia and the United States and 3,500 participants representing 42 countries.

This year’s forum, Post-COVID Recovery Through Better Connectivity, links business and industry leaders, government officials, policy makers, and subject matter experts across the region and beyond to discuss post-COVID trends in trade, reviving trade and tourism amid COVID-19, and sustainable water solutions and renewable energy investment opportunities in Central Asia, among other exciting topics.

In her opening remarks, the U.S. Embassy in Kazakhstan Deputy Chief of Mission, Judy Kuo, noted, “When the first Central Asia Trade Forum was organized in Bishkek in 2011, it was born from the belief that cooperation, idea-sharing, and international trade are key foundations for growth and prosperity. We are happy to see that the presidents of the region’s nations at recent meetings have endorsed the view that mutually beneficial regional cooperation is the best way to overcome today’s challenges.”

This forum also coincides with 30 years of cooperation between the United States and the five countries of Central Asia. Over the past three decades, the United States has provided over $9 billion in direct assistance to support peace and security, democratic reform, economic growth, and humanitarian needs. Through bilateral relationships and regional strategies for cooperation and collaboration, these efforts have helped regional economies become more competitive, spurred diversified economic growth, and enhanced prosperity across the region.

USAID’s Competitiveness, Trade and Jobs activity is organizing the Central Asia Trade Forum in partnership with CERT Academy, Chartered Institute of Logistics and Transport, GIZ, Global Cold Chain Alliance, IFC, International Finance Corporation, ITC, IRU, Next Generation Central Asia, KAZFOAM, QazTrade, Turkmen Logistics Association, Women in Logistics and Transport, World Bank Group, as well as media representing Asia Hikes, Ashgabat.In, Discover Kyrgyzstan, Ekolog.uz, Kazakhstan Press Club, Kapital.kz, Kazakh Traveler International, Kazakh Tourism, Profit.kz, Steppe, Travel Tajikistan, Uzbekistan Travel, and WideOyster.

Over the past decade, through the Forum, USAID has advocated for greater regional cooperation and collaboration to stimulate and accelerate sustainable economic growth in the region. It has brought together more than 10,000 participants from more than 30 countries to identify ongoing challenges limiting trade and prosperity, to exchange ideas and solutions, to build relationships, and to conduct business.

 

https://uz.usembassy.gov/

On 4 October, on the eve of the visit of the President of Turkmenistan to the Republic of Uzbekistan the Uzbek-Turkmen Economic Forum was held in Tashkent.

The foreign delegation was headed by Deputy Chairman of the Cabinet of Ministers of Turkmenistan E.Orazgeldyev, and the Uzbek delegation was headed by Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S.Umurzakov.

The event was also attended by the heads of key ministries, departments, industry associations, chambers of commerce and industry, as well as manufacturers and entrepreneurs of the two countries - more than 100 people in total.

During the speeches, the heads of the delegations of the two countries noted the dynamic nature of the development of the Uzbek-Turkmen economic partnership, achieved thanks to the efforts of the Heads of the two states. Over the past few years, the trade turnover between the two countries has grown 3 times and continues to rise steadily. Even despite the negative impact of the pandemic on the economy, in the first 8 months of this year, the volume of mutual trade showed an increase of 25% compared to the same period last year.

E.Orazgeldiyev stressed that Turkmenistan attaches priority importance to the development of bilateral cooperation in the fields of agriculture and water management, industry, energy, trade, transport and environmental protection. Prospects for intensifying cooperation in the fields of industrial cooperation, digitalization, innovative technologies and the development of transport and logistics routes linking the two states were noted.

The Uzbek side emphasized the importance of mobilizing available resources and capabilities of the economies of the two countries for the full use of the existing untapped potential of bilateral trade, economic and investment cooperation. In this context, the importance of establishing a regular dialogue for effective joint work to create favorable conditions for establishing practical cooperation between the business circles of the two countries, bearing in mind the implementation of major investment projects and the conclusion of mutually beneficial trade agreements, was stressed.

Special attention was paid to the development of industrial cooperation through the creation of joint ventures on the territory of the two countries and the formation of continuous value chains, taking into account the comparative advantages of the economies of Uzbekistan and Turkmenistan. The success achieved in this direction in such areas as automotive, electrical, leather and footwear industries, processing of agricultural products, production of construction materials and other industries was noted.

At the end of the speeches, the heads of delegations called on the forum participants to actively cooperate in order to reach firm agreements on the implementation of joint projects and trade agreements.

During the forum, presentations were held to reveal the investment, industrial and trade potential of the two countries’ various industries. Also, participants of the event had an opportunity to visit the industry exhibition "MadeInUzbekistan", where they could visually familiarize themselves with the products of Uzbek manufacturers. In addition, entrepreneurs of the two countries held a number of B2B meetings, during which they discussed the possibilities of establishing business cooperation and implementing specific projects in promising areas.

As a result of the forum a number of investment agreements and trade contracts were signed in the fields of agriculture, chemicals, textiles, electrical engineering, leather and footwear, food and pharmaceuticals, winemaking, automotive and construction materials.

 

https://mift.uz/

Deutsche Bank, Landesbank Baden-Wuerttemberg and Landesbank Hessen-Thüringen Girozentrale (Helaba) will participate in financing the investment project to expand the production capacity of the Shurtan gas chemical complex of Uzbekneftegaz, without a state guarantee.

Within the framework of the economic forum "Uzbekistan: results and prospects of economic reforms", it was announced that important agreements on financial cooperation were signed between Uzbekneftegaz and three leading banks in Europe.

Chairman of the Board of JSC "Uzbekneftegaz" Mehriddin Abdullayev signed agreements with representatives of a number of large banks. In particular, a memorandum of understanding was signed with Nikita Gusakov, Vice President of the Russian Export Center JSC.

In addition, a cooperation agreement was signed to finance the project “Expansion of production capacities of the Shurtan Gas Chemical Complex” with Helaba Bank for up to € 300 million under insurance coverage of Euler Hermes (Germany) and other European ECAs.

The document was signed by the Chairman of the Board of JSC Uzbekneftegaz and on systemic financing of trade and export Sardor Kholmakhmedov.

Also, Mehriddin Abdullayev and the bank's general representative in Uzbekistan Aziz Inomhodjaev signed a financing cooperation agreement with Landesbank Baden-Wuerttemberg for up to EUR 300 million under insurance coverage of Euler Hermes (Germany) and other European ECAs.

Within the framework of the forum, a memorandum of understanding was signed between Uzbekneftegaz and Societe Generale SA bank.

The memorandum was signed by representatives of the parties: the head of the Societe Generale S.А bank for Central Asia and the Caucasus region Guliyeva Teiba and the Chairman of the Board of the company Mehriddin Abdullayev.

The latest agreement at the signing ceremony was concluded with Deutsche Bank for up to EUR 500 million under insurance coverage by Euler Hermes (Germany) and other European ECAs.

The Memorandum of Understanding on financing the project "Expansion of production capacities of the Shurtan Gas Chemical Complex" was signed with the head of the Deutsche Bank representative office in Uzbekistan and Kazakhstan Igor Wagner and the Chairman of the Management Board of Uzbekneftegaz JSC.

Cooperation agreements on financing the investment project Expansion of production capacities of the Shurtan gas chemical complex ("Project for the expansion of the Shurtan gas chemical complex") amounted to more than 1.1 billion euros.

The total cost of the project is about US $ 1.8 billion, of which US $ 1.2 billion will be provided by a consortium of foreign banks and financial institutions, and US $ 600 million - by Uzbekneftegaz JSC.

It should be noted that the expansion of the production capacity of the Shurtan Gas Chemical Complex will allow for the production of an additional 280 thousand tons of bimodal polyethylene, 100 thousand tons of polypropylene and 50 thousand tons of pyrolysis distillate per year. The raw material base for the projected expansion facilities of the Shurtan Gas Chemical Complex is synthetic naphtha, which will be produced at the synthetic liquid fuel (GTL) plant.

https://ung.uz/

Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held negotiations with Vice President of the Asian Development Bank (ADB) Shixin Chen.

The status of projects under implementation and development, as well as issues related to the deepening of bilateral cooperation were discussed.

An agreement was reached under which ADB will help introduce new tools for financing and attracting private investments for infrastructure projects in Uzbekistan.

Cooperation will also be established to disseminate successful experience of implementing public-private partnership mechanisms in the field of renewable energy sources into other priority areas: healthcare, education, solid waste management and housing and communal services.

Special attention was paid to the issues of establishing cooperation with the Agency for Strategic Development under the President of the Republic of Uzbekistan and the Agency for International Cooperation and Development under the Ministry of Investmentы and Foreign Trade, bearing in mind the allocation of grant funds by ADB to provide technical and consultancy assistance to the activities of these structures.

The ADB management also expressed readiness to consider the possibility of attracting financing for environmental and climate projects in the Aral Sea region within the framework of the UN General Assembly resolution on declaring the Aral Sea region a “zone of environmental innovations and technologies”.

At the end of the meeting, further steps were outlined to solve the tasks set within the framework of the areas of cooperation discussed.

 

Negotiations between Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov and Vice-Chairman of the Supervisory Board of Rothschild & Co Baron Eric de Rothschild took place in Tashkent.

The parties discussed the current state of cooperation in a number of areas and opportunities for its expansion in the near future.

The head of the foreign company praised the success of reforms in Uzbekistan aimed at building an open state with a market and diversified economy.

The progress achieved in privatization of state assets in Uzbekistan as well as positive trends in development of the banking and financial sector of the country were noted. The sides expressed readiness to deepen cooperation on privatization of large state enterprises and banks with the involvement of interested foreign investors, as well as to cooperate in developing and reforming the national banking system.

The foreign side expressed interest in partnership to transform the transport sector, including by assisting in attracting private investors to implement infrastructure projects in Uzbekistan.

It was also agreed that the parties will establish cooperation on the joint pre-investment preparation of priority projects in the fields of metallurgy, chemicals and petrochemicals, agriculture and tourism with the subsequent involvement of foreign investors to implement these projects.

As a result of the negotiations, the parties outlined further steps for practical cooperation in the discussed areas of cooperation.

For reference: Rothschild & Co. is a financial holding company controlled by the Rothschild family, established in 1811. The headquarters is located in Paris. The Rothschild Group banking group also includes the companies
N.M. Rothschild & Sons (London) and Rothschild & Cie Banque (Paris).
The group's activities cover such fields as investment and corporate banking services, private equity investments, asset management, private banking and other areas.

 

Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov met with Director of Global Relations of the Organization for Economic Cooperation and Development (OECD) Andreas Schaal on the sidelines of the meeting of the Country Platform on Uzbekistan.

During the meeting the parties discussed current issues of current cooperation and priority directions for the further expansion of partnership relations.

OECD management summarized the results of ongoing cooperation in enhancement of the legal and regulatory environment for doing business as well as economic recovery in the post-Covid period, and expressed a commitment to further support the implementation of a wide-ranging reform program in Uzbekistan.

An agreement was reached on further joint work to study the current state of economic reforms implementation and identify the most priority areas for cooperation. The parties in particular noted the relevance of Uzbekistan’s investment policy review and development of proposals for its further advancement as one of such directions.

Prospects for cooperation to support and promote domestic exporters were also considered: in the near future, OECD experts will analyze the effectiveness of reforms aimed at increasing exports of small and medium-sized enterprises in Uzbekistan and develop recommendations for its further stimulation.

The OECD management expressed its readiness to continue the practice of providing advisory support to government officials in Uzbekistan through thematic webinars on improving investment legislation and easing the regulation of the operating environment for small and medium-sized businesses on the basis of the best international practices.

The parties noted Uzbekistan's high position in the OECD FDI Regulatory Restrictiveness Index, which is an indicator of the degree of a country’s economic openness to foreign investors. An agreement was reached on expansion of Uzbekistan's participation in other OECD indices characterizing the level of trade development and quality of life.

As a result of the meeting, further joint actions for the development of cooperation were identified.

For reference: The Organization for Economic Cooperation and Development (OECD) is an association of democratic countries with market economies, working together to address the socio-economic and governance challenges posed by globalization. Uzbekistan maintains active cooperation with the OECD in several areas, including combating corruption, a program to expand trade and economic cooperation with the OECD countries, increasing competitiveness and attracting investments.

 

On September 30 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov held negotiations with Vice-President of the World Bank for Europe and Central Asia Anna Bjerde to discuss the current state and prospects for deepening further cooperation.

The results of the implementation of the World Bank's Partnership Program with Uzbekistan for 2016-2021 were considered. It was noted that during the implementation of the Program a constructive dialogue was established on the selection of priority projects for financing by the World Bank, taking into account the interests of Uzbekistan.

A.Bjerde noted the consistency of reforms implemented in the country and the positive macroeconomic indicators achieved despite the negative impact of the COVID-19 pandemic. The Bank's management expressed high appreciation to the initiative to establish the Agency for Strategic Development under the President of Uzbekistan and readiness to establish close cooperation in the implementation of further reform programs through the provision of technical assistance and organization of direct interaction between the World Bank experts and the Agency's team.

The sides discussed the development of a new World Bank partnership program with Uzbekistan for 2022-2026, which will be based on priority areas of the country’s reform program – the transformation of state enterprises and banks, financial sector, energy, housing and transport services, agriculture, education and healthcare, as well as the private sector and small business development.

An agreement was reached on joint work to analyze the export support system created in Uzbekistan for developing a strategy for its promotion, implement programs to support young entrepreneurs, as well as study the development potential of regions for developing new approaches and techniques to identify key drivers of growth in industry, agriculture and services.

Joint actions were on the acceleration of the approval process by the World Bank's management of four new projects aimed at supporting entrepreneurship, modernizing the statistical system and developing the financial sector.

The possibilities of the World Bank's participation in the activities of the Economic Empowerment Fund established in Uzbekistan, with a view to co-financing projects in the field of small and medium-sized businesses and promoting poverty reduction, were considered.

At the end of the meeting, the parties outlined the format for further practical cooperation in the implementation of agreed projects and initiatives.

https://mift.uz/

On September 30 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov took part in a meeting of the Country Platform on Uzbekistan.

"Country Platform" is a new initiative of the World Bank, aimed at organizing coordinated interaction of countries with international financial institutions, donors and development partners in the development and implementation of programs and projects in the socio-economic development of recipient countries. Uzbekistan is one of 11 pilot countries selected for testing this initiative.

This mechanism allows countries to prioritize and engage development partners, including non-traditional donors and the private sector, in promising projects. It also facilitates the effective organization of donor assistance for reforms in recipient countries.

The event was attended by World Bank Vice-President for Europe and Central Asia region A.Bjerde, Asian Development Bank Vice-President S.Chen, Asian Infrastructure Investment Bank Vice-President for Investment Operations K.Limitovsky, Islamic Development Bank Vice-President M.Mukhtar, International Finance Corporation Regional Director for Central Asia K.Colbert, European Bank for Reconstruction and Development Managing Director for Central Asia Z.Hargitay, Principal Advisor on Credit Operations of European Investment Bank for Central Asia A.Bruun, as well as management of OPEC Fund for International Development, European Investment Bank, Japan International Cooperation Agency, Korea International Cooperation Agency, French Development Agency, Turkish Cooperation and Coordination Agency, UNDP, USAID, KfW Bank, Eximbank of Korea and Kuwait Fund for Arab Economic Development.

Opening the event, S.Umurzakov stated that over the past 5 years, Uzbekistan is moving along the path of large-scale and irreversible economic reforms and structural transformations aimed at creating a free market economy and democratization of society. With the support of international financial institutions and foreign governmental organizations, Uzbekistan has been successfully implementing important projects to develop public-private partnerships, modernize the national transport system, transform the banking sector, reform microfinance organizations, introduce international standards in the textile industry, develop the energy sector and other areas.

The priorities of further development of cooperation and implementation of projects in Uzbekistan through both consultative and expert assistance and financing of socio-economic programs were discussed. The importance of forming a joint plan for the implementation of reforms, which will identify specific areas of cooperation and scope of work, was noted.

During the meeting, presentations were made by the Agency for Strategic Development under the President of Uzbekistan and the Agency for International Cooperation and Development under the Ministry of Investments and Foreign Trade, which revealed their potential, goals and objectives in the organization of coordinated cooperation with international financial institutions, foreign governmental organizations and development partners. It was noted that the Agency for Strategic Development is designed to become a key structure for the development of strategies and programs aimed at integrated socio-economic and industrial development, investment attraction and implementation of projects in promising industries, improving the investment climate and foreign trade activities in the country, creating conditions for improving the competitiveness of industries and regions, banking sector, as well as the development of large-scale poverty reduction measures.

The opportunities for creating a joint fund with the participation of the Agency for Strategic Development, which would accumulate grant funding to support reforms in Uzbekistan, were also considered.

In addition, an analysis of all projects under implementation and development will be conducted in cooperation with donor structures to develop proposals for further unification, as well as harmonization and synchronization of international and domestic procedures for each project cycle to improve the procurement system and conduct transparent and efficient tenders. The Agency for International Cooperation and Development will play a coordinating role in this process.

The heads of international financial institutions expressed their readiness to take an active part in the institutional development and capacity building of the Agency for Strategic Development and the Agency for International Cooperation and Development and to provide technical and advisory assistance in solving their tasks.

As a result of the event, the parties agreed to create two working groups consisting of representatives of international financial institutions and donor structures to establish practical cooperation with these agencies. The working groups will develop appropriate Roadmaps, which will include specific activities and programs.

For reference: The Country Platform initiative was launched in October 2019 as part of the Annual Meetings of the Board of Governors of the World Bank Group and the International Monetary Fund in Washington, DC.

The number of enterprises with Russian capital in Uzbekistan has increased by more than 10% since 2019, despite the coronavirus pandemic. This was stated by the Deputy Minister of Economic Development of Russia Dmitry Volvach, speaking at the session "Prospects for Regional Economic Cooperation" in the framework of the International Economic Forum in Tashkent. This was reported by the press service of the Ministry of Economic Development of the Russian Federation.

“In the last difficult year, even taking into account the imposed restrictions and the slowdown in world economic growth, we managed to achieve an increase in the volume of mutual trade by 15.6% to US$5.9 billion. At the same time, over the past four years, we have increased the volume of trade between our countries by more than 2 times,” the Deputy Minister stressed.

Russian-Uzbek trade continues to grow and for 7 months of this year amounted to US$3.3 billion (+ 3.8%). “We expect that positive dynamics will continue in the future and we will reach the target set by the presidents of Russia and Uzbekistan - US$10 billion a year,” said Dmitry Volvach.

The deputy head of the Ministry of Economic Development also highly appreciated the measures being implemented by the Uzbek leadership to create comfortable conditions for investors from the Russian Federation. Over the entire period of work in the market of the republic, the main Russian investors in Uzbekistan have invested more than US$10 billion in the economy, he said.

Moreover, the flow of investment is diversifying and is now directed to various sectors, including agriculture, mechanical engineering and metallurgy. In particular, as of 1 January 2021, 2,093 enterprises with the participation of Russian capital operate in Uzbekistan, which is 265 more than in 2019. This includes companies for the processing and supply of fruits and vegetables, the production of agricultural machinery, excavators, spare parts for the automotive industry, compressor equipment and building materials.

“Together with our Uzbek colleagues, including within the framework of the Intergovernmental Commission on Cooperation between the Russian Federation and Uzbekistan, we are working to eliminate barriers in mutual trade, develop industrial cooperation, as well as assist in the implementation of mutually beneficial joint projects,” added Dmitry Volvach. He also said that Russia and Uzbekistan agreed to develop a new intergovernmental economic program for the period from 2022 to 2026.

The Deputy Minister noted that Russia is assisting Uzbekistan in the creation of multifunctional centres, the development of tax administration and cadastral registration systems, as well as registration of rights and cadastral valuation of real estate objects.

During his visit to Tashkent, Dmitry Volvach also visited the Yashnabad Innovation Technopark.

www.economy.gov.ru

The State Assets Management Agency of the Republic of Uzbekistan (UzSAMA) announced on August 6, 2021 that it has reached an agreement to sell 57.118% stake in «Coca-Cola Bottlers Uzbekistan, Ltd» LLC (the Company) to «Coca-Cola İçecek A.Ş.» (CCI), through its wholly owned subsidiary «CCI International Holland B.V.» (Buyer), for a cash consideration of US $ 252.28 million (the Transaction).

Based on the requirements of the legislation of the Republic of Uzbekistan, the Charter of the Company and other documents regulating the activities of the Company, the necessary legal actions were taken to complete the Transaction. In particular, the second participant of the Company, The Coca Cola Export Corporation (USA), refused to use its preemptive right to acquire a state share and the trademark owner agreed to a change of control in the Company.

Also, in accordance with the terms of the Share Purchase Agreement (SPA), the Buyer has received clearance from the Competition Authority of the Republic of Turkey to proceed with the Transaction.

As stated in the SPA, the amount paid for the state share was transferred on September 28, 2021, to a special treasury account of UzSAMA.

On September 29, 2021, during the Economic Forum in Tashkent, UzSAMA and the Buyer signed the share transfer instrument in relation to the state share in the Company.

This transaction is one of the largest in scale and significance in the history of privatization in Uzbekistan over the past 10 years.

In turn, the Company's privatization process has attracted the attention of many experts, analysts and investors in terms of the practical implementation of Uzbekistan's privatization program plans for coming future, as well as of many citizens, interested in the Company's future.

As part of the Transaction, along with the attraction of direct investment in the economy of the Republic, a great deal of experience has been accumulated in applying the world's best practices in privatization.

UzSAMA notes that the Transaction is primarily the result of the relevant decisions of the President of the Republic of Uzbekistan and the insightful policy on reducing the state share in the economy.

For the achieved result, UzSAMA acknowledges the professional services provided by the investment bank "Rothschild & Co”, which acted as a financial adviser, the law firm "Dentons", as a legal advisor and the international consulting company "KPMG" that made an analysis and evaluation of the Company.

The sales process was organized with the participation of highly qualified professionals on a competitive basis. The legal framework of the process complies with the legislation of the Republic of Uzbekistan and international best practices.

The intermediate stages of the sales process were covered in the media.

Based on the Public Offering Announcement, UzSAMA and the Financial Advisor received bids from numerous applicants from Asia, Europe, America and Africa. They passed the preliminary selection in accordance with the criteria set forth in the Announcement, and the sales process was then continued with applicants (Applicants) who had sufficient solvency, financial stability and sufficient potential, and ability to invest in the Company's business plan and fulfill a strategic partnership with the Company's second shareholder and the owner of the trademark.

To ensure transparency, the Applicants were given the opportunity to access information on the Virtual Data Room, which contained financial, legal, environmental, organizational, tax and other information about the Company, as well as to visit the Company and ask questions directly to management.

First non-binding and then binding proposals of the Applicants for the acquisition of the state share were received. The bidder who offered the best combination of price offer and terms of sale was registered as the winner of the sale process.

According to the rules of the process that are consistent with international practice and for confidentiality reasons the exact names of the candidates and the contents of their proposals at the intermediate stages were not disclosed.

The bright future of the Uzbek market and the stable growth of the economy, population and their income led to a confident decision of the Buyer to purchase the state share.

In cooperation with the Turkish company Coca-Cola İçecek A.Ş. (CCI), the Coca-Cola plant in Uzbekistan has all grounds and opportunity for further expansion and development.

The entry of CCI as the shareholder of "Coca-Cola Bottlers Uzbekistan, Ltd." will serve to increase the production capacity of the Uzbek bottler, effectively implement investment projects, expand the range of new and high-quality products, improve the qualifications of personnel, and form a professional management system.

For information, CCI is a multinational beverage company which operates in Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq, Tajikistan and Uzbekistan. As one of the key bottlers of the Coca-Cola system, CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company.

CCI employs close to 10,000 people and has a total of 29 plants in 11 countries, offering a wide range of beverages to a consumer base of 430 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks and iced teas.

CCI's shares are traded on the Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS", and Eurobond is traded in the Irish Stock Exchange, under the symbol "CCOLAT".

https://davaktiv.uz/en

On September 29 of this year, during the economic forum, the delegation of Uzbekneftegaz was led by the Chairman of the Management Board of JSC "Uzbekneftegaz" Mehriddin Abdullayev met with the Global Head of Debt Capital Markets of Societe Generale International Bank Felks Orsini.

It should be noted that "Societe Generale" is a French financial conglomerate, which is included in the "big four" of the country's banking market, and it provides a wide range of banking and financial services.

As part of the ongoing reforms in the oil and gas industry and ongoing systematic transformation processes, Uzbekneftegaz JSC aims to enter the international level and implement projects with the involvement of international financial institutions.

During negotiations with Societe Generale, the parties discussed issues of developing bilateral cooperation, emphasizing the importance of moving the investment potential of the two companies to a qualitatively new level.

It should be noted that the ongoing efforts to attract financing for the implementation of investment projects of Uzbekneftegaz JSC will serve to provide the sectors of the economy and the population of the country with sufficient energy resources.

As a result of the negotiations, the parties decided to study in more detail promising projects and find ways of interaction in order to implement them.

Uzbekistan plans to implement investment projects worth about US$52.15 billion in 2022-2024. This is stated in the draft presidential decree on the investment program of Uzbekistan for 2022-2024, published by the Ministry of Investment and Foreign trade.

According to the document, in 2022, Uzbekistan plans to implement projects worth US$16.57 billion, of which US$6 billion is foreign direct investment.

At the same time, projects worth US$7.51 billion will be implemented in the field of geology, energy, industry and its basic industries.

Uzbekistan plans to implement projects worth US$17.34 billion in 2023. Foreign direct investment will amount to US$7.06 billion.

As in 2022, most of the funds (US$9.24 billion) will be directed to geology, energy and industry.

In 2024, it is planned to implement projects for US$18.2 billion. At the same time, it is expected that foreign direct investments in the amount of US$7.73 billion will be used.

On 27 September 2021, Minister of Energy of the Republic of Uzbekistan Alisher Sultanov held talks with Baron Eric Alain Robert David de Rothschild, Vice President of the Supervisory Board of Rothschild & Cie.

At the beginning of the conversation, the guest highly appreciated the reforms being carried out in Uzbekistan, leading to significant positive changes in the socio-economic development of the country. In particular, he noted a positive trend in the growth of GDP per capita, despite the global stagnation associated with COVID-19.

The parties discussed the course of the current cooperation with the Rothschild & Co company, which has a worldwide reputation and extensive experience in modern business. In the system of the fuel and energy complex (FEC) of Uzbekistan, this company, in particular, provides consulting support during the preparation of Uzbekneftegaz JSC, supervised by the Ministry of Energy, for an IPO (initial public offering) as part of its transformation into an investment-attractive and financially an independent company.

Rothschild praised Uzbekistan's policy in the field of financial transformation and preparation for the initial public offering (IPO) of Uzbekneftegaz JSC. In his words, this is a very serious and correct approach, since Uzbekneftegaz is preparing for privatization, gradually improving its financial performance and profitability. “This is the wisest approach, which takes a lot of time and effort, but it will certainly yield positive results,” the head of the delegation said. In his words, Rothschild & Co stands for a comprehensive solution to these issues and is ready to closely cooperate with Uzbek partners.

In addition, Rothschild & Co takes part in the development of proposals for long-term financing of the Program for the modernization of the gas transmission system of the Republic of Uzbekistan, as well as in the development of proposals for the transformation of Uztransgaz JSC into a clean operator of natural gas transportation.

In turn, Rothschild noted that the Rothschild & Co corporation is ready to actively work on all projects, in particular, on advising Uzbekneftegaz JSC and Uztransgaz JSC on various key financial issues.

uzdaily.uz/

A joint meeting of representatives of Uzbekneftegaz JSC, Uztransgaz JSC and the State Committee for Geology with a business delegation from the city of Lvov and Lviv region (Ukraine) was held.

It should be noted that Uzbekneftegaz JSC has been actively cooperating with Ukrainian equipment manufacturers for many years. More than 15 agreements in this direction have been signed between the two countries, some of which are currently being successfully operated at the production facilities of Uzbekneftegaz JSC.

The business delegation was represented by NPP UKRTRUBOIZOL, MEGANOM UKRAINE LLC, Horizont Drilling Company LLC, NORDIK-STROY LLC, Karpatskaya Energiya LLC. 

During the meeting, the sides discussed prospects for cooperation in the areas of construction and design of oil and gas facilities, as well as geological exploration, seismic operations, overhaul and drilling of wells, as well as the development of gas fields.

At the same time, the foreign side expressed interest in establishing cooperation in the field of geological exploration, various methods of geophysical research and other areas.

During the negotiations, the Uzbek side invited Ukrainian companies to take part in tenders, information about which is published on an ongoing basis on the official websites of Uzbekneftegaz JSC, Uztransgaz JSC and the State Committee for Geology.

Following the meeting, the parties reached an agreement to further expand cooperation with Ukrainian companies in the oil and gas sector.

uzdaily.uz

Buy business plots from all regions of Uzbekistan.

About 19,100 plots of land for entrepreneurship

▪️1254 from the Republic of Karakalpakstan
▪️1483 from Andijan region
▪️1004 from Bukhara region
▪️2332 from Jizzakh region
▪️ 1902 from Kashkadarya region
▪️588 from Navoi region
▪️917 from Namangan region
▪️1757 from Samarkand region
▪️2414 from Surkhandarya region
▪️1061 from Syrdarya region
▪️29 from Tashkent
▪️512 from Tashkent region
▪️2415 from Fergana region
▪️1441 from Khorezm region

 

Uzbekistan has established extensive trade and economic relations with Central Asian countries.
The Center for Economic Research and Reforms analyzed the changes in Uzbekistan's trade turnover with Central Asian countries. According to the analysis conducted in January-August this year, the share of Central Asian countries in foreign trade amounted to $ 3.9 billion, an increase of 15.4%.

It should be noted that in January-August this year, Uzbekistan's foreign trade turnover with Kazakhstan amounted to 2,482.7 million US dollars. The export volume amounted to 736.7 million US dollars. The volume of imports amounted to $ 1,746.0 million, and the foreign trade turnover with Kyrgyzstan amounted to $ 598.9 million. The export volume amounted to 490.2 million US dollars. and imports amounted to $ 108.7 million.

The foreign trade turnover with Turkmenistan amounted to 418.1 million US dollars. The volume of exports amounted to 120.5 million dollars, while imports amounted to 297.6 million dollars. Foreign trade turnover with Tajikistan amounted to 352.9 million US dollars. USD, export volume 293.0 mln. USD and the volume of imports reached 59.8 mln.

 

https://uza.uz/

On September 26, a meeting of the co-chairs of the Uzbek-Russian Intergovernmental Commission (IGC) on Economic Cooperation – Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and Minister of Economic Development of the Russian Federation M. Reshetnikov was held in Tashkent.

The agenda was centred around monitoring the implementation of measures to deepen the economic partnership of the two countries, mentioned in the minutes of the 21st meeting of the IGC, held in October last year in Bukhara. A comprehensive analysis of existing issues was carried out and measures were developed for further practical cooperation in relevant areas. An agreement was reached on deepening cooperation of the subcommissions in the field of industrial cooperation, financial and banking spheres, as well as on the creation of new subcommissions on innovation, digital technologies, culture and tourism. Further steps have been determined to prepare for the next meeting of the IGC, which will take place this fall in Moscow.

The intensive nature of the development of bilateral economic ties and interaction of business communities of the two countries were highlighted. “Even in not the most ideal conditions, we still see the positive dynamics of mutual trade. Let me remind you that bilateral trade with Uzbekistan grew by 15.6% in 2020, despite the pandemic, which speaks of the strength and effectiveness of business contacts. For the first 7 months of this year, we record an increase of 3.8% over the same period last year. We hope that the positive dynamics of mutual trade will continue until the end of this year, ” M. Reshetnikov said during the meeting.

The Uzbek side also emphasized the high level of relations between the two countries, as well as close and operational interaction between key ministries and departments on the implementation of the agreements reached. “Thanks to the unprecedented high level of mutual understanding and trust between the leaders of our countries, a level of strategic partnership is ensured, which allows maintaining high dynamics of sustainable development and strengthening of bilateral relations between Uzbekistan and Russia,” S. Umurzakov stressed.

Special attention was paid to the current state of joint projects approved following the results of visits in 2017 and 2018. Currently, the total portfolio includes 151 investment projects worth about $ 15 billion. The parties agreed to take practical measures to accelerate the implementation of agreed projects, as well as to intensify work on the preparation of new investment projects and trade agreements portfolio. For these purposes, in the near future, mutual visits of delegations will be organized, consisting of heads of sectoral ministries, associations and unions, large state companies and regional administrations of the two countries.

The preparation for a number of bilateral events was also substantively reviewed, including the II Media Forum, the II Educational Forum, the II Forum of Interregional Cooperation, the official opening ceremony of the national pavilion of the Republic of Uzbekistan at VDNKh and the industry exhibition “Made in Uzbekistan” …

As a result of the meeting, an agreement was reached to intensify the work of the IGC subcommissions in order to determine new priority areas of bilateral cooperation with specific measures, deadlines and mechanisms for their implementation. These proposals will form the basis for the emerging Program of trade, economic, investment, cultural and humanitarian cooperation between the Republic of Uzbekistan and the Russian Federation for 2022-2026.

British American Tobacco (BAT) has increased its stake in the Samarkand-based company Samfruit, according to the stock exchange data.

The OTC trade was closed on September 21st. BAT bought another 350 thousand shares (0.99%). Now she owns 12.4 million shares - this is 34.1% of Samfruit.

The previous deal between the two companies took place on June 7th. Then BAT bought 712 thousand shares, increasing its share by 2%.

In 2019, it became known that the UzBAT JV was investing $ 11 million in the creation of a joint venture with Samfruit. The company planned to use Samfruit to purchase equipment for freeze-drying and air-drying, and packaging of fruits and vegetables.

Samfruit is an Uzbek-Swiss joint venture established in 2003. The company is a manufacturer and distributor of natural dried vegetables and dried fruits. Today, Samfruit products are exported to 16 countries.

JV "UZBAT" was established in 1994. In 1997, the company built the Samarkand cigarette factory. British American Tobacco's investment in the Uzbek economy has exceeded $ 400 million.

https://www.spot.uz/

Online, together with the Embassy of Japan in the Republic of Uzbekistan and the Tashkent-Nagoya Friendship Association, a conference was held on the topic "Dynamics of Uzbek-Japanese cooperation and opportunities for attracting foreign direct investment in Uzbekistan."

The conference was attended by the First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan L. Kudratov, representatives of the Embassy of Japan in the Republic of Uzbekistan, as well as more than 40 representatives of small and medium-sized businesses in Nagoya (Japan).

Representatives of the Japanese business community were informed about the conditions for doing business in Uzbekistan, the prospects for cooperation in the introduction of advanced Japanese technologies in various industries.

Within the framework of the conference, bilateral meetings of entrepreneurs of Uzbekistan with "Smile Tourist" - in the field of tourism development, "HRS Japan Co, Ltd." - on interaction in the field of labour migration and "Meinan Co., Ltd." - on the organization of supplies of fasteners to Japan.

As a result of the event, an agreement was reached to organize the 2nd conference with the participation of small and medium-sized businesses of Japan in the full-time format in Tashkent in the first half of 2022.

https://mift.uz/

The country's economy will grow by 5% this year and 5.5% in 2022. In April, ADB forecast growth of 4% and 5%, respectively.

The Asian Development Bank has updated its annual economic publication Asia Development Prospects for 2021, which has improved forecasts for Uzbekistan.

According to the bank's report, the country's economy will grow by 5% this year and 5.5% in 2022. In April, ADB forecast growth of 4% and 5%, respectively:

The economy of Uzbekistan is expected to grow by 5% this year and 5.5% next year, subject to effective vaccination against coronavirus (COVID-19) and continued rapid recovery of industry, services, investment and private business - says today Asian Development Bank (ADB) report.

The country is expected to grow 6.2% in the first half of 2021 , as industry rebounded strongly from a slump last year thanks to increased production, mining and quarrying. Services growth accelerated to 8% on the back of growth in trade, transport and storage.

“Effective implementation of the government's COVID-19 vaccination program will be vital to protect the people of Uzbekistan, restore confidence, and support the promising growth we saw in the first half of this year,” said ADB Country Director for Uzbekistan Cindy Malvichini.

Inflation decelerated in the first half of 2021 to 10.9% from 13.9% last year. Improved food production helped slow the rise in food prices, while electricity and gas tariffs remained unchanged.

With continued monetary policy and unlikely changes in energy tariffs, ADB maintained its inflation forecasts of 10% and 9% for 2021 and 2022, respectively.

The current account deficit widened in the first half of 2021 due to increased imports of capital and intermediate goods and transport services. Due to significant growth in imports, ADB expanded its current account deficit projections in 2021 and 2022.

Spot previously wrote that the Central Bank revised its forecast for the economy in 2021 and expects GDP growth to 6.8%.


https://www.spot.uz/ru/2021/09/23/adb/ 

The Administrative Regulations for the selection of the best proposal for the implementation of a large investment project were approved by the Government Decree (No. 592 of 21.09.2021).

According to the Administrative Regulations, a large investment project means an investment project worth at least US $ 10 million.

The best proposals for the implementation of the project will be selected by the Government Commission on Foreign Trade, Investment, Local Industry Development and Technical Regulation.

In the project's boundaries:

- on agricultural land - it is possible to use the land only for agricultural production;

- on non-agricultural land - any activity is possible that is not prohibited by law.

Projects involving the construction of individual housing and apartment buildings are not considered major investment projects and are not considered.

Proposals for a large investment project with a value less than the market value of the right to the selected land will not be considered.

A consolidated volume of documents on an empty land plot is being prepared by the State Cadastral Chamber of the Cadastral Agency through AAT "YERELEKTRON".

The applicant submits an application for the implementation of a large investment project only through CSU and EPIGU.

When submitting an application through the Central State University, a fee is charged in the amount of 1-fold amount of BRV (270 thousand soums).

When applying through EPIGU, this amount is 243 thousand soums.

The working body (Ministry of Investment and Foreign Trade) considers applications and documents within 3 working days.

If no shortcomings are identified, the project will be submitted to the Government Commission and conceptually reviewed within 10 working days.

If the project is recognized as expedient, a request is sent to the State Cadastral Chamber to determine a free land plot.

The State Cadastral Chamber, within 20 working days from the date of receipt of the request, prepares in electronic form a summary volume of documents on the land plot and coordinates it with authorized organizations.

Alternative proposals for a large investment project are accepted within 60 days from the date of publication on the official website of the working body.

https://www.uzdaily.uz/ru/post/63842

On September 20, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov took part in the opening ceremony of the "Forum of Young Entrepreneurs - IDEA" within the framework of the Cooperation Council of Turkic-Speaking States (CCTS).

The forum was organized by the Agency for Youth Affairs of the Republic of Uzbekistan jointly with the CCTS Secretariat, the Youth - Our Future Foundation in close cooperation with the Ministry of Investment and Foreign Trade and other relevant ministries and departments of the country.

The forum was attended by over 200 young entrepreneurs from Azerbaijan, Turkey, Hungary, Kazakhstan, Kyrgyzstan and Uzbekistan, international experts, ministers of the Council member countries responsible for youth issues, as well as the leadership of the CCTS Secretariat.

The initiative to hold this event as a mechanism for practical cooperation of the member countries of the Council on Youth Support was put forward by the President of the Republic of Uzbekistan during the 7th CCTS summit, held in Baku in October 2019.

During the speeches of the participants, the priority given in the CCTS member countries to the development of youth entrepreneurship, increasing employment and creating conditions for achieving economic independence for young people.

It was announced that the share of youth is 29 percent of the population of all CCTS countries and 60 percent of the population of Uzbekistan, in connection with which it was noted that effective support of young people in the implementation of their own projects and the creation of favorable conditions for the development of youth entrepreneurship will have a positive impact on the growth of the economies of the countries. CCTS.

Information is provided on the measures of state support for youth, implemented in Uzbekistan. In particular, they talked about the "Youth is Our Future" program, the practice of free allocation of land plots to young farmers, the program for the creation of youth industrial and entrepreneurial zones, the activities of the "Project Factory", the Fund for Support of Young Entrepreneurs under the Ministry of Investment and Foreign Trade, as well as about other mechanisms for financing and subsidizing youth.

Also during the event, a number of new initiatives were put forward, in particular, it was proposed to organize on the CCTS platform a "Factory of Innovative Projects", as well as to accelerate the creation of the CCTS Investment Fund, through which the most promising projects will be financed. It was also proposed to organize a separate session dedicated to start-up projects of youth from the CCTS member countries within the framework of the upcoming Annual Week of Innovative Ideas "InnoWeek.uz", which will be held in Tashkent in November this year, and to create an online channel in social networks to establish dialogue between young entrepreneurs and successful businessmen from CCTS member countries in the "TED Talks" format and presentations.

At the end of the ceremony, the participants expressed their confidence that the forum would become an effective platform for establishing direct contacts and exchange of experience between young entrepreneurs of the CCTS member and observer countries.

The Forum will continue its work on September 21 and 22. His work is organized in various industries: agro-industrial sector, light industry, IT start-ups, tourism, marketing and other areas.                      

The program of events also includes trips to industrial enterprises in Tashkent and the Tashkent region, where forum participants can get acquainted with the potential of various industries, exchange experience in the implementation of projects and get acquainted with the opportunities created in the country for the development of youth entrepreneurship.

Also within the framework of the event, an industry exhibition of young entrepreneurs and manufacturers from the member countries of the Turkic Council is held and meetings are organized in the B2B format.

https://mift.uz/ru/

Construction company "Trest-12" is preparing for privatization. The UzAssets investment company under the State Asset Management Agency announced its intention to sell a 51.12% stake.

Investment company UzAssets under the State Asset Management Agency announced its intention to sell the state block of shares in the construction company Trest-12 "through a competitive sale process."

The international consulting company Deloitte acts as a consultant on the sale of 51.12% of the shares currently owned by the Tashkent khokimiyat.

According to UzAssets, the sale will be organized as a competitive bidding process open to all interested parties. Applicants who submit applications will have the opportunity to study company data by signing a confidentiality agreement (NDA).

The deadline for submission of non-binding bids is October 17th. Those who have passed the first stage will be invited to submit binding proposals.

 
The winner will be the participant who proposed the best combination of the price offer and the agreed terms of the sales contract during the negotiations.

UzAssets reserves the right to change the sequence of the sale process or refuse to sell to any potential buyer or to negotiate with him at any time without giving a reason.

About Trest-12

 

The investment company said that "Trest-12", operating since 1979, is one of the most famous construction companies in Uzbekistan. The company has its own production and technical base in Tashkent, as well as a highly qualified professional engineering staff with many years of experience in solving complex technical problems. The company's fleet of equipment allows to carry out large construction projects on its own, the description says.

The trust carried out the construction of several dozen iconic facilities, including public buildings (the buildings of the Cabinet of Ministers and Ministries of Uzbekistan, the National Library, the Minor Mosque , etc. ), industrial facilities (including the GM Powertrain plant), the Hyatt Regency hotel complex, the International Westminster University in Tashkent and many others.

Currently, Trest-12 has a fully completed portfolio of orders for 2021-2022, including the construction of the Center for Islamic Civilization, a car assembly plant in the Jizzakh FEZ, several residential complexes in Tashkent, the building of the Uzbek Embassy in Kazakhstan and others.

The company has no debt obligations and is rated 'BB' in the electronic rating of construction contractors in Uzbekistan, the report says.

https://www.gazeta.uz/

As of September 1, the number of enterprises and organizations with foreign capital registered in Uzbekistan is 13.6 thousand, of which 13.1 thousand carry out their activities.

According to the State Statistics Committee, if we compare this number with the corresponding last year, it increased by 1,850.

Traditional leading countries in economic cooperation with Uzbekistan also occupy leading positions in this sector. So, most of all operating enterprises with Russian (2311), Chinese (1931), Turkish (1797), Kazakh (1035) and South Korean (925) capital. The number of newly created enterprises with foreign capital in January-August differs slightly, in particular, Turkey (270) is ahead of Russia (248) and China (184), and Kazakhstan (134) and the Republic of Korea (69), also occupy the fourth and fifth places. , respectively.

If we consider the number of enterprises with foreign capital by industry, then industry (4136), trade (3632), construction (1087), agriculture, forestry and fishery (716), as well as the provision of accommodation and food services (555) are leading here. information and communication (375), transportation and storage (334), health and social services (204).

https://dunyo.info/

A Presidential Decree "On measures to further reduce the administrative and tax burden for business entities, as well as improve the system for protecting the legitimate interests of business" was adopted.

According to the Decree, from 1 October 2021, the following will be canceled:

- obligations to submit tax reports to the tax authorities of individual entrepreneurs who are payers of personal income tax in a strictly defined amount;

- bans on the sale and sale in retail trade of certain finished imported consumer goods 12 months after the date of registration of the customs declaration.

From 1 January 2022 to 1 January 2023, the social tax rate for individual entrepreneurs operating in the regions of the republic (except for the city of Tashkent) is set at 50 percent of the basic estimated value, with a 2-fold decrease.

From 1 October 2021, the control functions of the relevant state bodies and local self-government bodies will be canceled.

From 1 January 2022:

- supervisory authorities check the activities of entrepreneurs according to the questionnaire approved in accordance with the established procedure;

- employees of the Chamber of Commerce and Industry with the consent of these entrepreneurs take part in checking the activities of entrepreneurs who are members of the Chamber of Commerce and Industry;

- records in the register of inspections are kept in electronic form;

inspections of entrepreneurs' activities are carried out after taking preventive measures to prevent violations (with the exception of tax inspections, inspections in the framework of criminal cases and operational-search activities).

Until 1 April 2022, the information system "Unified State Control" will be launched, which allows collecting, analyzing and processing large amounts of information related to state control in the field of entrepreneurship.

From 2022, an index of freedom of entrepreneurial activity will be introduced, aimed at identifying and mitigating the level of administrative pressure on entrepreneurs, as well as preventing offenses.

On September 16, the Ministry of Investment and Foreign Trade announced the results of an international tender for the construction of a 100 MW wind farm in the Republic of Karakalpakstan.

About 70 foreign companies have shown interest in participating in the tender. 16 companies from China, South Korea, Japan, Saudi Arabia, UAE, Turkey, Russia, Singapore, Czech Republic and France participated in the pre-qualification selection, 12 of which successfully passed this selection.

At the final stage of the tender, the Emirati Abu Dhabi Future Energy Company PJSC (Masdar) (UAE), ACWA Power (Saudi Arabia) and Voltalia (France) competed among themselves.

ACWA Power (Saudi Arabia) with a tariff of 2.5695 US cents per kWh of generated electricity was announced as the winner of the international tender for the construction of a wind farm.

Masdar (UAE) was announced as the reserve winner in this tender with a tariff of 2.6550 US cents per kWh of generated electricity.

In accordance with the investment commitments, the wind farm will be commissioned by mid-2023. The launch of the power plant will ensure the production of 400 million kWh of clean electricity per year. The wind farm will be located on the territory of the Karauzyak and Beruniy regions of the Republic of Karakalpakstan. The volume of attracted foreign direct investment for the implementation of projects is estimated at $ 140 million.

The project is part of the program of the Government of Uzbekistan aimed at diversifying the country's energy balance through the introduction of alternative sources of electricity. Its implementation will contribute to the achievement of the set goal of increasing the share of electricity generated from renewable sources in the total energy balance of the country to 25 percent, providing electricity to about 110 thousand households, reducing carbon dioxide emissions by 157 thousand tons per year, as well as creating more than a thousand new jobs during the construction period.

https://mift.uz/ru/news/

KEY RATING DRIVERS

The rating is equalised with Uzbekistan's 'BB-' Long-Term Local-Currency Issuer Default Rating (IDR). The equalisation reflects Uzagrosugurta's state ownership, its systemic role in the agricultural sector, a major part of the local economy, the availability of a stop-loss facility for crop insurance from the government and the history of capital support extended to the insurer.

Uzagrosugurta is 94.6%-owned by the Ministry of Finance of the Republic of Uzbekistan, which obtained its share back from the Agency for Management of State Assets of the Republic of Uzbekistan, a government agency established to consolidate and manage various state-owned enterprises. Uzagrosugurta focuses on providing insurance coverage to the agricultural industry, which remains a key contributor to GDP in Uzbekistan. It also manages a diversified portfolio of traditional non-life risks. Uzagrosugurta's systemic role is supported by a number of regulations, including a stop-loss facility limiting its share in claims made on cotton and grain crop insurance policies to 80% of the line's premiums written.

The government plans to offer a significant minority stake in Uzagrosugurta to strategic investors to help the insurer strengthen its expertise, enhance the corporate governance standards and also attract additional capital. Nevertheless, Fitch currently expects the government will retain its control over the insurer due to its role in agricultural insurance. Fitch would view this transaction as credit neutral if Uzagrosugurta remains state-controlled and of systemic importance for the sector.

Uzagrosugurta's standalone profile is relatively weak and reflects a stretched capital position, volatile underwriting result, favourable business profile and low credit quality of the investment portfolio. The insurer also has significant catastrophe exposure in its agricultural portfolio, although this risk is mitigated by the availability of the government stop loss facility.

Uzagrosugurta's risk-adjusted capital score, as measured by Fitch's Prism Factor-Based Model (FBM), improved to 'Somewhat Weak' at end-2020 from 'Weak' at end-2019 due to strong profit generation in 2020 and a reduction in business volumes. From a regulatory point of view, Uzagrosugurta is adequately capitalised with a regulatory solvency margin, calculated based on a Solvency-I formula, at 2.07x at end-2020 and 1.68x end-6M21. However, this formula does not take asset risk into consideration.

In 2020 Uzagrosugurta reported a profitable non-life underwriting result, with the combined ratio of 96% in 2020, an improvement from 105% in 2019, due to a notable reduction in administrative expenses. Uzagrosugurta continued to have a relatively high expense ratio due to its dense branch network in 2020, although the insurer has significantly improved this level from 2019. The insurer's relatively high expenses suggest that it may have limited flexibility to respond to a tightening in competition or higher vulnerability to adverse developments in the portfolio.

Fitch views the company's investment risk as high relative to mature markets. Uzagrosugurta is exposed to significant equity instruments at 34% to total shareholders' funds at end-2020. The remaining investments are fixed-income instruments in the form of bank deposits, which are reasonably well-diversified and mainly placed with state-owned banks. Fitch notes that Uzagrosugurta's ability to improve diversification is constrained by the narrowness of the local investment market.

 

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

-A one-notch upgrade of Uzbekistan's Long-Term Local-Currency IDR.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

-A one-notch downgrade of Uzbekistan's Long-Term Local-Currency IDR.

-A significant change in Fitch's view of Uzagrosugurta's relations with the government.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories range from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579

On 15 September 2021, a webinar was held for Portuguese enterprises on the topic of disclosing investment opportunities, the business climate of Uzbekistan, as well as priority areas for establishing and strengthening bilateral economic cooperation.

The webinar was attended by Ambassador Extraordinary and Plenipotentiary of the Republic of Uzbekistan to Portugal and France S. Rustambaev, Director of the Portuguese Business Association (AEP) P. Vaz, Head of the Investment Promotion Department of the Chamber of Commerce and Industry O. Ryzhichenko, as well as representatives of Portuguese companies.

During the webinar, a presentation was made on the ongoing reforms, new opportunities for foreign investors and the potential for further development of trade, economic and investment cooperation between Uzbekistan and Portugal.

https://uzdaily.uz/

The First Deputy Minister of Investment and Foreign Trade of the Republic of Uzbekistan Laziz Kudratov met with the British Minister of State for South Asia and the Commonwealth Lord Tariq Ahmad.

During the talks, the sides discussed prospects for expanding investment and trade and economic cooperation between the two countries, as well as the implementation of the agreements reached within the framework of the 25th meeting of the Uzbek-British Council for Trade and Industry.

The British side welcomed large-scale reforms aimed at improving the investment and business climate in Uzbekistan.

During the conversation, the parties noted the positive dynamics of mutual trade, in particular - in the post-period period: in January-July of this year, the trade turnover between the two countries increased by 52.5 percent. Also, significant growth is demonstrated by the indicators of attracting investments from the UK.

The issues of financial and technical cooperation were touched upon. The British side expressed gratitude for the assistance provided in the successful implementation of economic reforms in Uzbekistan within the framework of the Effective Economic Governance in Central Asia (ESD) program in partnership with the World Bank. The progress achieved in the implementation of the project to assess the negative impact of the pandemic on the export structure of Uzbekistan within the framework of the TAF2 COVID19 Rapid Response Facility grant was also noted.

Following the talks, the parties expressed their commitment to an active and constant dialogue in all the areas of partnership discussed and agreed to work closely with the British side to promote current projects and work out new areas of investment and trade cooperation.

 

https://mift.uz/

On 14 September, negotiations were held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov with the Managing Director of the International Finance Corporation (IFC) Makhtar Diop.

During the negotiations, the current state and prospects for deepening partnership between Uzbekistan and the IFC were discussed. Makhtar Diop highly appreciated the scale and pace of the socio-economic reforms being carried out in Uzbekistan and expressed his commitment to further mutually beneficial cooperation.

The IFC management was grateful for the consulting and technical assistance provided in the implementation of reforms aimed at the development of the financial market, public-private partnerships, agriculture, transport and healthcare.

The role of the IFC in promoting large-scale projects in Uzbekistan in the fields of alternative energy and the chemical industry was highly appreciated.

During the dialogue, the issue of providing technical assistance to the IFC in the introduction of innovative instruments for blended financing of infrastructure projects was discussed, with a view to attracting private investment for their implementation. 

The management of the IFC also expressed interest in participating in the activities of the Fund for Expansion of Economic Opportunities, managed by the Government of Uzbekistan and the Islamic Development Bank, through both financing and providing technical assistance in the implementation of promising projects.

Separately, the parties dwelled on the development of women’s entrepreneurship in Uzbekistan, as well as the possibilities for using the new IFC tools in this direction.

An agreement was reached on the provision of assistance from the IFC in the dissemination of successful experience in the implementation of PPP mechanisms in the field of alternative energy to other areas - health, education, public transport, solid waste management and housing and communal services.

The parties also agreed to establish cooperation to promote start-up projects in the field of information technology by attracting a venture funding mechanism.

Following the meeting, further steps were outlined for practical interaction within the discussed areas of cooperation

https://mift.uz/

 
Now in the country, there are 23 special economic zones, which in 2020 made it possible to increase the volume of industrial production almost to 9 trillion soums.
The President identified measures to further support the participants in special economic zones (SEZ).
The document consolidated the tasks of protecting the rights and interests of investors, which were indicated in the framework of the president's open dialogue with entrepreneurs.
In particular, it established, that the unused part of the benefits of the tax on the income of subjects of FEZ, which were abolished from 1 January 2020 the year, will be applied for those companies, which are included in the register of residents of the SEZ ( on condition on 1 October 2020 the year ) in the period of 3 up to 10 years, on the basis of the introduced of the volume of investment.
Apart from that, the participants of the special economic zones of 15 September 2021 the year has been given the right to deferment of repayment ( installment payment ) VAT and customs duties with the production of goods and imports of components, raw materials, and materials for their own needs in the period up to 120 days without charging and reclaim ensure payment percent on them.
Ministry of Finance and the State Tax Committee instructed to strictly comply with the order reimbursement of the subjects of FEZ amount of excess of VAT for the seven days.
As for the two months, it is planned to develop a draft law, envisaging the provision of benefits for income tax on the profit participants SEZ, based on introduced their volume of investment.
There are 23 special economic zones in Uzbekistan. As a result of the activities of the overall volume of industrial production in the 2020 year reached nearly nine trillion of soums, which is more than 3% of the GDP of the republic.
The legislation provides for tax and customs benefits for FEZ subjects. At the same time, they have the right to use conditions convenient for them, forms of payment, and settlements for exported and imported goods.

https://uz.sputniknews.ru/

Tashkent hosted the 16th meeting of the Uzbek-Turkmen Intergovernmental Commission on trade-economic, scientific-technical and cultural-humanitarian cooperation.

The meeting was held under the chairmanship of Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov and Deputy Chairman of the Cabinet of Ministers of Turkmenistan E. Orazgeldyev.

The agenda of the meeting was based on a wide range of issues of cooperation in investment, trade and economic, industrial, energy, agricultural, water management, scientific and technical, transport and transit and cultural and humanitarian spheres.

In their speeches, the IGC Co-Chairs noted the commitment of the Governments of the two countries to strengthening constructive, long-term and mutually beneficial relations, as well as special attention given to the development of economic partnership between Uzbekistan and Turkmenistan.

Positive tendencies in trade and economic cooperation were noted. As of the current moment, 160 enterprises with the participation of Turkmen capital operate in Uzbekistan, and the volume of trade between the two countries in the first half of this year increased by 20 percent compared to the same period last year.

The parties agreed on the need for the active development of industrial cooperation and the formation of continuous value chains, taking into account the comparative advantages of the economies of the two countries. An agreement was reached to intensify the development of new projects for the creation of industries in the agro-industrial complex, textile, leather and footwear industries, production of cars, electrical appliances and building materials. An agreement was reached to develop and adopt a "Road Map" for the development of industrial cooperation, which includes specific projects.

Further joint actions are planned to promote mutual trade - the parties expressed their readiness to implement practical measures to ensure stable supplies of Uzbek and Turkmen products to the markets of the two countries and to bring the volume of Uzbek-Turkmen trade to $ 1 billion in the near future. The development of these proposals will be regularly dealt with by a joint working group at the level of deputy ministers of the foreign trade departments of the two countries. Also, in the near future, the approval of the draft Agreement on the creation and regulation of the activities of the Uzbek-Turkmen zone of border trade will be completed.

Particular attention was paid to increasing transport connectivity between the two countries - the parties came to a common opinion to develop and take joint measures for the further development of transport corridors, providing for the phased resumption of flights, the provision of mutual tariff preferences for 2022, the prospects for using the infrastructure of the seaport "Turkmenbashi" and other initiatives.

During the event, the participants of the meeting also made speeches - heads of ministries and departments of the two countries, who outlined their vision of further steps for cooperation in a particular industry.

As a result of the IGC, a number of important agreements were reached on further practical cooperation in the fields of energy, oil and gas sector, chemical and automotive industries, agriculture and water management, ecology, science, education, sports and tourism.

In the end, the protocol of the 16th meeting of the Uzbek-Turkmen IGC was signed, which reflected the agreements reached during the event, as well as key areas for further deepening the multifaceted partnership between the two states.

 

On September 13, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with a group of deputies of the Parliament of the Republic of Turkey, representing the Justice and Development Party of Turkey, headed by its Deputy Chairman, Deputy of the Parliament of the Turkish Republic from Istanbul Numan Kurtulmush ...

During the constructive dialogue, the parties discussed a wide range of issues of multifaceted interaction between the two countries.

The dynamics of expanding political, trade, economic, cultural and humanitarian cooperation between Uzbekistan and Turkey was highly appreciated.

The Turkish side expressed its readiness to provide comprehensive assistance in promoting reforms in Uzbekistan. 

An agreement was reached on close cooperation in order to effectively implement the agreements already reached and to further improve the forms and mechanisms of interaction.

 

https://mift.uz/ru/

Within the framework of the 10th meeting of the ministers of the economy (trade) of the member states and observers of the Cooperation Council of Turkic Speaking States (CCTS), several events were held in Baku (Azerbaijan).

The meeting of the ministers was chaired by the Secretary-General of the Turkic Council Baghdad Amreev and the Minister of Economy of Azerbaijan Mikail Jabbarov. The meeting was also attended by ministers from Kyrgyzstan, Kazakhstan, Uzbekistan, Hungary and Turkey. The delegation of Uzbekistan was represented by the First Deputy Minister of Investments and Foreign Trade A. Voitov.

Within the framework of the program of events, including the 10th meeting of the ministers of the economy (trade) of the member states and observers of the CCTS, the 12th meeting of the Working Group on the development of economic cooperation and the business forum, the possibilities of expanding economic and investment cooperation between the member states of the Council were discussed further coordinating the implementation of joint practical measures aimed at mitigating the economic consequences of the crisis caused by the coronavirus pandemic.

It was noted that the Turkic Council, created based on a common language, historical and cultural ties, is becoming an effective mechanism for regional economic cooperation.

It was announced that the Government of Uzbekistan attaches priority importance to the development of economic partnership with the member countries of the Council.

For reference: over the past three years, the volume of trade between the member countries of the Council, despite the coronavirus pandemic, has doubled and reached $ 6.7 billion in 2020, and amounted to $ 4.7 billion in the first half of this year.

Parties emphasized the significant untapped potential for the development of trade relations and bringing Uzbekistan's trade turnover with the CCTS partner countries to $ 10 billion in the coming years.

In this context, the need to further improve the regulatory framework and eliminate tariff and non-tariff barriers were noted.

The relevance of accelerating the implementation of initiatives was raised, to establish the Investment Fund and the Development Bank of the Turkic Council, which will be a breakthrough step in the transition from dialogue to practical investment and financial cooperation within the CCTS.

In addition, representatives discussed mechanisms for increasing the transport and transit potential of the region and providing access through Central Asia to the main world markets, including China, India, Pakistan and other Asian countries, as well as European countries through Azerbaijan and Turkey.

As a result of the meeting, a Memorandum was signed “On the exchange of information and experience between various economic zones of the CCTS member states” aimed at the accelerated development of free economic and special zones in the member states of the association.


https://mift.uz/

The seventh meeting of the Uzbek-Chinese Subcommittee on Trade and Economic Cooperation was held at the Ministry of Investments and Foreign Trade in the format of a videoconference.
From the Uzbek side, the meeting was attended by First Deputy Minister of Investment and Foreign Trade A. Voitov, senior officials of the Ministry of Foreign Trade and the involved ministries and departments, and from the Chinese side - Deputy Minister of Commerce of the PRC Yu Jianhua, representatives of sectoral ministries, departments and financial organizations of the PRC.
During the meeting, it was emphasized that the Subcommittee is the main mechanism in preparation for the upcoming meeting of the Uzbek-Chinese Intergovernmental Committee on Cooperation.
The parties noted that this event will serve as an important platform for strengthening investment cooperation and developing trade interconnection between the Republic of Uzbekistan and the People's Republic of China.

The state of bilateral trade and economic cooperation, current issues of the development of mutual trade, in particular, the participation of the delegation of Uzbekistan
at the China International Import Expo, the provision of assistance in matters of Uzbekistan's accession to the WTO, the prospects for the development of transportation and logistics, including the expansion of the practice of exporting Uzbek products in the format of block deliveries to the PRC.
Also, opportunities were considered for strengthening investment, technical and economic cooperation and deepening ties between the regions of the two countries.
In addition, the participants studied the documents submitted for signing during the meeting of the Uzbek-Chinese Intergovernmental Committee for Cooperation, including the Program for the 5-year development of trade, economic and investment cooperation between the Governments of the Republic of Uzbekistan and the PRC.
Following the meeting, the parties came to an agreement on further elaboration of topical issues of trade, economic and investment partnership in preparation for the upcoming meeting of the Uzbek-Chinese Intergovernmental Committee
for cooperation.
For reference: In the first half of this year, the volume of utilized Chinese investments within the framework of State and regional investment programs amounted to more than $ 1 billion, showing a 25% increase compared to the same period in 2020.
In January-July 2021, Uzbekistan's foreign trade turnover amounted to $ 21.6 billion, in which China holds first place - $ 4.0 billion (18.7% of the total). Compared
with the corresponding period of 2020, trade with China increased by 16.9% or by $ 581.2 million.
China is at the same time the largest export market for Uzbekistan. In January-July of this year, exports of goods and services to the PRC showed an increase compared to the same period in 2020 by $ 287.6 million (+ 28.6%) and amounted to $ 1.3 billion, or 15.9% of the total export volume of Uzbekistan.

https://mift.uz/

Decree of the President of the Republic of Uzbekistan
In order to improve the business environment by further improving tax administration and liberalizing liability for violation of tax legislation, as well as ensuring the fulfillment of tasks identified in the framework of the open dialogue of the President of the Republic of Uzbekistan with entrepreneurs, held on August 20, 2021 to directly study the problems and proposals of entrepreneurs and identify the main directions for the subsequent development of entrepreneurship:

1. Establish that from January 1, 2022:

financial sanctions for offenses revealed by the results of a desk tax audit are not applied;

financial sanctions for non-submission by business entities of tax reporting within the established time frame are canceled.

2. To support the proposal of the State Tax Committee on the calculation and formation, as an experiment, in January - July 2022 by the tax authorities of tax reports on value added tax, excise tax, turnover tax, land tax from legal entities, taxpayers registered with the state tax management of the Khorezm region.

3. Establish the order in which the experiment:

a) tax authorities calculate and form tax reporting:

on land tax from legal entities - based on data from the Cadastre Agency;

for value added tax, excise tax and sales tax - based on data from electronic invoices and online cash registers, as well as other data available with the tax authorities;

b) tax reports generated by tax authorities are sent through the personal account of the taxpayer at least 10 days before the deadline for submitting the relevant tax reports by taxpayers;

c) the taxpayer, within 5 days from the date of receipt of the tax reports generated by the tax authorities, approves it or, if there are objections, rejects, processes and submits tax reports to the tax authorities in accordance with the established procedure.

4. The State Tax Committee, together with interested ministries and departments:

a) by January 1, 2022, create an opportunity for taxpayers to display taxable items or other tax-related items required for calculating value added tax, excise tax and turnover tax in electronic invoices;

b) submit to the Cabinet of Ministers:

by November 1, 2021, proposals for amendments and additions to legislative acts arising from this Decree, as well as for strengthening liability measures for violation of the requirements for the submission of data on taxable objects and (or) other objects related to taxation;

by August 1, 2022, proposals for extending the experiment to taxpayers in all regions of the republic and expanding the list of taxes for which tax reporting is formed by tax authorities, with an in-depth analysis of the results of the experiment.

5. To charge the Chairman of the State Tax Committee Kudbiev Sh.D. personal responsibility for organizing the effective implementation of this Decree.

Control over the implementation of this Decree shall be entrusted to the Deputy Prime Minister of the Republic of Uzbekistan D.A. Kuchkarov.

To inform the President of the Republic of Uzbekistan about the effectiveness of the measures taken by August 1, 2022.

              The President

of the Republic of Uzbekistan      Sh. Mirziyoyev

Tashkent city,

September 7, 2021.

The Ministry of Energy and National Electric Grids have announced a tender for the construction of three solar photovoltaic power plants (PVPPs). This was reported by the press service of the ministry.

The “Request for Qualification” tender stage is held among independent electricity producers (developer investors).

The total capacity of the stations will be up to 500 MW. They will be located in Namangan (150 MW), Bukhara (250 MW) and Khorezm (100 MW) regions.

“The winning developer investor is expected to design, finance, operate and maintain the solar PV plant for 25 years. For the FES project in the Bukhara region, it is also planned to integrate a system of storage batteries for storing electricity, ”the message says.

To participate in the Request for Qualification (RFQ) stage of the tender, you must upload a request document that describes all the details. Applications are accepted until November 29.

https://www.spot.uz/

On 6 September 2021, at 6 pm, request for proposals for the construction of a 100 MW wind farm in Karauzyak region of the Republic of Karakalpakstan from potential investors on a tender for a project was completed.

This project, based on public-private partnership, was launched by the Ministry of Energy of the Republic of Uzbekistan with the advisory support of the European Bank for Reconstruction and Development (EBRD).

The implementation of the tender part of the project goes through a number of stages. On 22 May 2019, a request for proposals was sent to the preliminary selection participants. Envelopes from the following companies were presented:

1) Abu Dhabi Future Energy Company PJSC (MASDAR)

2) International Company for Water and Power Projects (ACWA Power)

3) Voltalia

On the basis of foregoing, the Tender Committee with the support of the European Bank for Reconstruction and Development (EBRD) will proceed with the compliance check of information provided in Envelope 1 (Commercial Submission, Legal Submission and Technical Submission) of the Bids and shall then conduct a detailed evaluation of Envelope 1 in accordance with the Part 1 (Instruction to Bidders) of the RFP.

The tender committee will thereafter invite Pre-Qualified Bidders whose Envelope 1: (a) is compliant; and (b) achieves a “pass” grade, for the opening of Envelope 2 (Financial Proposal).

The Government of Uzbekistan acknowledges the contribution of the Government of Japan and EBRD shareholders, as the donors of the technical assistance supporting the Project. 

 

nuz.uz

The First Business Round Table "EU-Uzbekistan", organized by the Association of European Businesses (AEB), the European-Uzbek Association for Economic Cooperation ("EuroUz") and the Ministry of Investment and Foreign Trade of the Republic, was held in a hybrid format Uzbekistan.

The event became a platform for the exchange of views, ideas and proposals on finding new points of sustainable development and expanding investment and trade and economic cooperation between Uzbekistan and European countries.

The round table was attended by Deputy Prime Minister - Minister of Investments and Foreign Trade, Co-Chairman of the EU-Uzbekistan Business Council S. Umurzakov, Chairman of the Board of AEB Johan Vanderplaetse, Chairman of Mangold Consulting - Co-Chairman of the EU-Uzbekistan Business Council K. Mangold, Director for Russia, Eastern Partnership and Central Asia Countries of the European External Action Service L. Devin, as well as the management of the Direct Investment Fund under the Ministry of Investment and Foreign Trade, Schneider Electric (Germany), Siemens Energy ( Germany), Beeline Uzbekistan, Pietro Fiorentini (Italy), SACE and other entrepreneurs.

During the speeches of the participants, the experience of a number of large European companies implementing high-tech projects in Uzbekistan was noted. The role of business circles as a driving force for strengthening ties between Uzbekistan and the EU countries, whose relations have reached a qualitatively new level over the past few years, was emphasized.

The Uzbek side informed the forum participants about the key areas of work to improve the business environment in the country, including the transition to market principles in all spheres of the economy, stimulating the development of healthy competition, actively combating corruption, and large-scale privatization of state assets, enterprises and banks.

It was noted that this year, for the first time in the history of Uzbekistan, open dialogue of the Head of State with entrepreneurs and investors was held, as a result of which a package of initiatives was adopted aimed at solving the systemic problems of entrepreneurs and improving the investment and business climate in the country.

The most promising sectors from the point of view of business cooperation were identified: energy, oil and gas and mining, agriculture, textile, leather and footwear, pharmaceutical industry, as well as the production of building materials.

As a result of the event, an agreement on Cooperation was signed between the Association of European Businesses and the European-Uzbek Association for Economic Cooperation. The agreement is aimed at increasing the efficiency of trade, economic, scientific and technical cooperation on the territory of the Republic of Uzbekistan, creating favorable conditions for attracting and protecting foreign investors, and implementing investment projects.

[su_image_carousel source="media: 12881,12880,12879,12878,12877"]

 

https://mift.uz/

On September 6, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with Adviser to the Prime Minister of the People's Republic of Bangladesh Salman Fazlur Rahman.

During the talks, the sides discussed in detail the current agenda of bilateral cooperation in the investment, trade, economic, industrial, cultural and humanitarian spheres.

It was announced that the countries have good prerequisites for establishing industrial cooperation in such areas as the agricultural sector, textile, leather and footwear and pharmaceutical industries through the creation of joint ventures in the two countries. An agreement was reached on the development and approval of the "Road Map" for the development of industrial cooperation.

The need was noted to intensify the intergovernmental dialogue in order to establish a mechanism for the prompt resolution of issues of mutual interest. In this regard, an agreement was reached on joint work on organizing the next meeting of the Intergovernmental Commission on Trade and Economic Cooperation between the Republic of Uzbekistan and the People's Republic of Bangladesh and saturating its agenda with specific proposals and projects.

The foreign side noted the interest in increasing mutual tourist flows, including through the development of "pilgrimage tourism". The prospects for expanding interaction in the field of education were also considered - an agreement was reached on establishing cooperation between the International University of Tourism "Silk Road" (Samarkand) and the University "Jahangir Nagar" (Dhaka).

Following the meeting, an agreement was reached on the creation of a joint working group to promote and implement the discussed areas of cooperation.

https://mift.uz/ru/news/obsuzhdeny-perspektivy-rasshirenija-sotrudnichestva-mezhdu-uzbekistanom-i-bangladesh

The President's Resolution "On measures to support the building materials industry" was adopted.

According to the Resolution:

From October 1, 2021, the income tax rate for cement (clinker) producers will be reduced from 20% to 15%;

From January 1, 2022, the tax rate for the use of subsurface resources will be halved and equal to 22,500 soums per ton of limestone intended for the production of cement.

 

https://www.uzdaily.uz/

On September 4, the results of the 46th Annual Meeting of the Board of Directors of the Islamic Development Bank (IsDB) were announced during a press conference in Tashkent. The representatives from both sides included the President of the IsDB Muhammad Suleiman al-Jassir and the Deputy Prime Minister – Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov.

The event became a platform for discussing the experience of the member countries in ensuring the protection of the population during quarantine restrictions, implementing anti-crisis measures to overcome the economic consequences of the pandemic and building new schemes and mechanisms for international cooperation in the face of a downturn in the global economy.

During the meeting, the major agenda of the event program was discussed and a number of panel sessions and discussions were held. in addition, measures were considered to increase resilience to the consequences of COVID-19, issues of international cooperation, mechanisms for restarting and recovering the economy, attracting investment and enhancing trade in the post-period, digitalization of business, the introduction of innovations in various spheres of the economy, instruments of social support and employment and other topical issues.

The meeting also became an effective platform for establishing and discussing the prospects for deepening cooperation between the delegations of the IsDB member countries. A number of bilateral negotiations were held, during which specific agreements and results were reached.

Following the results of the Annual Meeting, a number of important agreements were signed. The government of Uzbekistan, Saudi Arabia and the IsDB signed a Memorandum of Cooperation on the creation of a Fund for Expanding Economic Opportunities of Uzbekistan with an initial capital of $ 100 million.

The International Islamic Trade and Finance Corporation (ITFC) and Trustbank signed an agreement to open a trade finance line for $ 15 million. An agreement was also signed with "Turonbank" to provide technical assistance in the implementation of reporting in accordance with international financial reporting standards (IFRS).

At the end of the press conference, a Loan Agreement was signed to modernize the rural infrastructure of the Republic of Karakalpakstan, Khorezm, Bukhara and Navoi regions under the Obod Kishlok program for a total of $ 200 million aimed at improving the quality of life of the population of these territories.

Also, a Loan Agreement was signed to equip the institutions of the oncological service of Uzbekistan with modern high-tech equipment for a total of $ 80 million, which will significantly increase the efficiency of diagnosis of diseases, thereby increasing the chances of a successful recovery of patients.

Along with this, a grant agreement was signed on the development of a regulatory framework for Islamic banking and finance in the Republic of Uzbekistan, which will make it possible to introduce Islamic financing mechanisms in our country.

In addition, the International Islamic Academy and the IsDB signed an Agreement on technical assistance to create a "smart" class for Islamic development on the basis of the Academy.

The total amount of the signed agreements amounted to more than $ 280 million.

Following the results of the Annual Meeting, decisions were also made to approve the budget for 2022, the financial report for the last year and other documents of an organizational and technical nature.

Dear compatriots,

The staff of the Investment Promotion Agency sincerely congratulates you on the Independence Day of the Republic of Uzbekistan!

We wish you and your loved ones good health, happiness and good fortune in all your endeavors.


Happy Independence day!

The Ministry of Investment and Foreign Trade organized a briefing on the 46th Annual Meeting of the Board of Governors of the Islamic Development Bank in Tashkent. First Deputy Minister of Investments and Foreign Trade Aziz Voitov delivered information at the briefing.

The Islamic Development Bank, in accordance with the procedures, meets annually once every three years at its headquarters in Jeddah (Saudi Arabia) and twice in member countries.

Meetings are held by the Board of Governors of the Islamic Development Bank Group to discuss development issues, including institutional ones.

This year, the meetings will be held in Tashkent from 1 to 4 September 2021. The current meeting will be attended by managers from 54 countries, delegates from international organizations and financial institutions, representatives of international reputable companies and business circles. To date, over 2,500 participants have registered to attend the 46th Annual Meeting.

Referring to the agenda of the IDB meetings in Tashkent, First Deputy Minister of Investment and Foreign Trade Aziz Voitov said that the main issues of discussion at the IDB meetings will be long-term lending and technical assistance for the implementation of development projects, mainly in such areas as agriculture (irrigation and land reclamation), education, health care, water supply, infrastructure development, etc.

It should be noted that in the post-view period, an event of this scale is organized for the first time in full-time format, and it is in our country. 

Within the framework of the event, it is planned to sign a number of financial agreements, as well as other important documents.

It was not possible to find out more, since the IDB representatives present at the briefing referred to the closed nature of the meetings. More detailed information and results will be announced after their completion.

 

https://nuz.uz/

On August 30 this year, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov held a meeting with the President of the Islamic Development Bank Muhammad Suleiman al-Jasser.

During the meeting, they discussed the current state of cooperation, the course of implementation of joint projects, as well as the prospects for deepening partnership between Uzbekistan and the IDB.

An agreement was reached to intensify work on the coordination of 6 new investment projects in the areas of support for small and medium-sized businesses, education, infrastructure construction, healthcare, and improving the quality of life in rural areas.

The readiness of the IDB and its subsidiaries, such as the Islamic Corporation for the Development of the Private Sector, the International Islamic Trade and Finance Corporation, and the Islamic Corporation for Investment Insurance and Export Lending, was voiced to expand mutually beneficial cooperation, with a view to building up a portfolio of joint projects in Uzbekistan with an emphasis on development entrepreneurship, increasing employment and social support for the population.

In addition, the parties discussed the preparations for the Annual Meeting of the IDB Board of Governors, which will be held in Tashkent from September 1 to 4 this year. The IDB President expressed gratitude to the Uzbek side for the high level of organization of the meeting and related events.

He noted that this event aroused great interest from the international community and business representatives from the IDB member countries: as of the current moment, more than 2 thousand people have registered to participate in the meeting and their number continues to grow. More than 2,500 representatives from 57 member countries of the Bank, as well as representatives of international organizations and development institutions, are expected to take part in the event.

Following the meeting, the parties determined the format for further interaction within the framework of the discussed areas of cooperation.

 

https://mift.uz/

The website of the Agency for Economic Development of Germany ( Germany Trade & Invest, GTAI) has published an article dedicated to the cooperation of Uzbekistan with the Eurasian Economic Union (EAEU).

The publication analyzes the current status of the country's observer in the organization, as well as the prospects for full-fledged membership of Uzbekistan in this union.

It is noted that Uzbekistan plays a special role in the formation of the New Silk Road, and the East-West and North-South corridors pass through it. In addition, our country is the only one that borders all the neighboring states of Central Asia.

“Whether it be transport routes, pipelines, energy corridors or water disputes: anyone who wants to succeed in Central Asia in the long term should involve Uzbekistan in cooperation,” the authors say.

They write about large-scale reforms launched in 2016, cross-sectoral modernization, and great labor and resource potential, thanks to which the country is an ideal candidate for joining the EAEU.

It is reported that on December 11, 2020, the country received observer status, which allows it to participate in meetings of the organization's bodies and continue adapting to the EAEU market.

The economic potential for both sides was analyzed in a study by the Eurasian Development Bank (EDB), according to which growth in Uzbekistan could accelerate by 2.5 percentage points. According to EDB estimates, in the event of accession, the annual economic growth of Uzbekistan will increase by 1.4-1.7 percentage points, and this will be associated with capital investments, the creation of new jobs, and an increase in labor productivity.

It is emphasized that Uzbekistan is more than just an important market for the EAEU. The EDB estimates the additional export potential of the EAEU member states, made possible by the free movement of goods, at $ 1.6 billion. Uzbekistan is rich in raw materials and has great industrial and agricultural potential. Its agricultural products (fruits, vegetables, cotton), textiles, metals, and light industry products can compete in the EAEU markets, increasing competition and thereby transmitting price reductions and quality improvements to end consumers.

In addition, an increase in the number of members will strengthen the role of the EAEU in negotiations with third parties, the EDB believes. Together with Uzbekistan, the population of the union will be 216 million people, and the gross domestic product - 1 trillion 795 billion dollars.

“Thus, the EAEU is becoming more and more attractive for concluding free trade agreements,” summarizes the GTAI website.

 

https://dunyo.info/ru/

In the period between January-June 2021, in the Republic of Karakalpakstan, the highest growth rate in the development of investments in fixed assets in the context of regions compared to the corresponding period of last year was observed in the Karauzak region, increasing by 185.8%. This is mainly due to the utilized foreign loans for the expansion of cement production. 

Also, high growth rates were observed in the Beruniy region, which compared to the corresponding period last year amounted to 142.5%. This result can be attributed to the investment earned under the food production program.

The growth in the volume of investments in fixed assets in the Buzatovskiy region in comparison with the corresponding period last year amounted to 138.9%, mainly due to foreign loans used for the development of animal husbandry.

The largest share in the volume of utilized investments in fixed assets in the republic is noted in the city of Nukus - 21.5%, Muynak region - 17.9% and Turtkul region - 10.3%.

 

https://stat.uz/

President of Uzbekistan Shavkat Mirziyoyev signed a resolution "On measures to provide investment projects with external infrastructure".

According to the Resolution, from 1 October 2021, projects of investors worth more than 200 billion soums will be provided with the necessary external engineering and communication networks, in which the share of their own funds is at least 25 percent of those included in investment programs, at the expense of the State budget.

A procedure will be established according to which, within the framework of investment projects worth more than 200 billion soums:

- budgetary loan funds for construction, reconstruction and repair of electric power networks are allocated to Regional Electric Networks JSC and National Electric Networks of Uzbekistan JSC;

- for construction, reconstruction and repair of natural gas networks - JSC "Uztransgaz" and JSC "Khududgaztaminot".

Work on the construction, reconstruction and repair of highways is carried out at the expense of funds for the development of highways under the Ministry of Finance of the Republic of Karakalpakstan and the main departments of finance of the regions and the city of Tashkent.

 

Source: https://www.uzdaily.uz/

 

Independence Day is a national holiday, which is one of the most important days in the history of our country. We have faced many challenges, but over the past 30 years, our people have bravely overcome these challenges on the path to stability, security, and development.

Therefore, to commemorate the occasion we, at UZIPA, decided to go back in time and reflect on how much our country has improved since declaring its independence. Here is a photo update from our trip to the national museums as part of the celebration of Independence Day.


[su_slider source="media: 12703,12693,12695,12701,12690,12702" width="1280" height="840" title="no" mousewheel="no"]

On August 25, the President of the Republic of Uzbekistan Shavkat Mirziyoyev had a telephone conversation with the President of the Republic of Poland Andrzej Duda.

The leaders discussed topical issues on the bilateral agenda, including the development of political dialogue, expansion of trade, economic and investment cooperation, promotion of cultural and humanitarian exchange programs, as well as the continuation of fruitful interaction within the framework of international organizations.

The heads of state also exchanged views on the current situation in the region in the context of the development of the situation in Afghanistan.

The President of Poland expressed his sincere gratitude for all possible assistance in the implementation of humanitarian operations to evacuate citizens from Afghanistan to Poland in transit through the territory of our country.

An agreement was reached to continue close cooperation in order to facilitate a peaceful settlement of the Afghan problem.

 

Source: https://uza.uz/ru/

On 23-24 August, the Ministry of Energy and LUKOIL organized a press tour to the Gissar group of fields located in Dehkanabad districts of Kashkadarya region for representatives of the media.

The Production Sharing Agreement for fields in South-West Gissar and the Ustyurt Region of the Republic of Uzbekistan ”was signed between the Republic of Uzbekistan and LUKOIL in 2007. In March 2008, LUKOIL entered the South-West Gissar project and started developing the Gissar group of fields in the Kashkadarya region.

The contract area of LUKOIL’s Gissar project includes 7 fields in the Kashkadarya region.

As part of the project, 300 km of high-voltage transmission lines, two power substations, 126 km of access roads were also built. At the project facilities, 64 thousand cubic meters of concrete were poured, about 12 thousand tons of metal structures and more than 4 thousand tons of equipment were installed, 286 km of linear pipelines were built.

The launch of key production and technological facilities at the Gumbulak and Adamtash fields took place in 2017. The Adamtash gas pretreatment unit (UPPG) was commissioned, and the construction of the Adamtash booster compressor station (BCS) with a design capacity of 1.8 billion cubic meters was completed. m per year. In 2018, the design level of gas production was reached - 5.0 billion cubic meters per year.

At the Dzharkuduk GPP, such technological processes as low-temperature gas separation, condensate stabilization, diethylene glycol solution regeneration, degassing gas utilization, hot oil system, formation water utilization, etc. are applied. "Uzbekneftegaz") in order to remove acidic components and extract valuable products (propane-butane fraction).

LUKOIL’s investment in the South-West Gissar project exceeded US$1.6 billion.

Solving production problems, LUKOIL pays special attention to the development of the region’s infrastructure, improving living conditions and raising the level of education in the Kashkadarya region.

As a socially responsible company, LUKOIL Uzbekistan is actively involved in charitable activities to support education, health care, culture, sports, and vulnerable segments of society. Particular attention is paid to the implementation of social and charitable projects in the regions of operational activity in Kashkadarya region. Among the social projects implemented by LUKOIL: installation of pumps to provide water to mountain villages in Dekhkanabad district, renovation of a boarding school for blind children in the city of Karshi, equipping and providing drinking water to boarding schools and schools, creating a robotics class for schoolchildren in Karshi.

LUKOIL’s largest social project in Kashkadarya is a specialized kindergarten under construction with a rehabilitation centre in Karshi, which will allow hundreds of children with disabilities to receive qualified medical rehabilitation and give them a chance for a full life.

As a gift for the 30th anniversary of Uzbekistan’s independence, at the request of residents of the village of Otkamar, Dekhkanabad district, LUKOIL is building a pedestrian walkway along the highway, which will allow rural children to safely and conveniently get to school. Another gift from LUKOIL for the schoolchildren will be backpacks with reflective elements and stationery, which the children will receive by the beginning of the new school year.

 

Source: https://www.uzdaily.uz/

On August 25, President Shavkat Mirziyoyev signed a decree on additional measures to support the pubs and restaurants and tourism promotion.

According to the Decree, starting from September 1, 2021:

- until December 31, 2021, restaurants shall be waived from paying land tax on legal entities and property tax of legal entities;

- until September 1, 2023, the calculation and payment of the tourist (hotel) tax shall be suspended.

Also, the proposal of banks was approved on additional support to their client (pubs and restaurants), in order to their financial recovery, through the use of various instruments of banking services.

"Pubs and restaurants shall be entitled to defer the repayment (payment by instalments) of debt on turnover tax, income tax, tax for the use of water resources, land tax on legal entities, property tax of legal entities, formed as of August 15, 2021, as well as fines and penalties for all taxes and fees, in the period from January 1 to July 1, 2022, in equal shares, without charging interest, with notifying the tax authorities, without sending an application to local government authorities," the decree emphasized.

The Ministry of Finance was instructed to submit a draft bill to the Cabinet of Ministers within a month, providing for amendments and addenda to the Tax Code, based on the above Decree.

 https://www.spot.uz/

On 25 August a meeting was held in Tashkent between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov with the Minister of Economy of the United Arab Emirates Abdullah bin Tuk al-Marri.

During the meeting, the sides discussed the current state and prospects for expanding cooperation in the investment, trade and economic spheres.

It was noted that over the past two years, significant results have been achieved in building up a portfolio of joint investment projects - currently, 15 projects are being implemented with Emirati partners totalling about $ 5 billion.

At the same time, the significant untapped investment potential in a number of sectors was emphasized, such as agriculture, mining, textile, jewellery industry and other spheres. Opportunities for attracting Emirati investors to participate in the state privatization program implemented in Uzbekistan were also considered.

An agreement was reached on establishing direct interaction between the Ministry of Food and Water Security of the UAE and the Ministry of Agriculture of Uzbekistan to study the possibilities of implementing joint programs and projects in agriculture and the food industry.

The successful activity of the Uzbek- Emirates Investment Company, created with the support of the Abu Dhabi Development Fund, was noted - since the beginning of its activity, the company has attracted about $ 100 million for the implementation of joint investment projects in Uzbekistan. The Emirati side expressed its readiness to assist in attracting new potential partners from among Emirati investors in order to implement promising projects with their co-financing at the expense of the resources of the Uzbek- Emirates Investment Company.

Mechanisms for increasing trade turnover between Uzbekistan and the UAE were discussed in a separate order. The prerequisites for expanding the geography of deliveries of Uzbek-made products to the markets of the Persian Gulf countries were also noted.

Following the meeting, the parties agreed to continue practical cooperation and maintain close contacts for operational discussion and resolution of existing issues.

Source:https://mift.uz/

On 25 August, the Uzbek-Emirates Business Forum was held in Tashkent, which was attended by representatives of state institutions and business communities of the Republic of Uzbekistan and the UAE. Emirati business was represented by such companies as DP World, Abu Dhabi Ports, Masdar, Mubadala Health, VPS Healthcare, DAMAC, Kanoo Group, Julphar, Al Rais Travel and Tourism "and others.

The foreign delegation at the event was headed by the Minister of Economy of the United Arab Emirates Abdullah bin Tuk al-Marri, and the Uzbek - by the Deputy Prime Minister - the Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov.

In their speeches, the heads of delegations emphasized the high level of multifaceted cooperation between the two countries, and also noted the confident dynamics of an increase in the number of joint investment projects and the establishment of long-term trade ties.

At the same time, it was announced that the economic potential of the two countries forms the preconditions for further building up cooperation in priority areas. In this context, the need to create a platform was noted through which business representatives of the two countries could exchange ideas and project proposals, discuss partnership prospects and reach specific agreements. In this regard, the parties welcomed the creation of the Uzbek-Emirates Business Council and called upon the entrepreneurs of the two countries for successful mutually beneficial cooperation.

As part of the event program, presentations of the investment potential of Uzbekistan in agriculture, textile, mining, electrical, pharmaceutical, jewellery and other industries were held. Investors from the UAE got acquainted with the privatization program being implemented in the country and its interim results.

Also at the forum, meetings were held between representatives of the business community of the two countries, during which the parties discussed the possibilities of implementing joint investment projects in Uzbekistan, as well as concluding mutually beneficial trade agreements.

Following the forum, a number of bilateral documents were signed, including the Agreement on the Establishment of the Uzbek-Emirates Business Council, the Agreement on the Accession of the Republic of Uzbekistan to the international trade promotion program "World Logistics Passport", the Agreement on the implementation of an investment project to organize the cultivation of sweet cherry in Uzbekistan between the Uzbek-Emirates Investment Company and the company "E20 Investments Ltd.", as well as the Memorandum on the development of economic cooperation, signed by the leadership of the Ministry of Investment and foreign trade from the Uzbek side and the Department of Economic Development of Abu Dhabi from the Emirate side.

Source: https://mift.uz/

On 24 August, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov received the Special Representative of the European Union for Central Asia Terhi Hakala.

The parties discussed the current state and prospects for the development of political and diplomatic, trade and economic, investment, financial and technical, transport, logistics and cultural and humanitarian cooperation between Uzbekistan and the EU, as well as issues of regional interaction in the context of the development of the situation in Afghanistan.

It was noted that the country has achieved significant results in the development of democratic institutions of civil society, economic liberalization and strengthening of the legal environment. Mutual readiness to continue the dialogue on key areas of interaction was voiced. The EU Special Representative reaffirmed her commitment to further providing practical assistance to Uzbekistan in the process of joining the World Trade Organization, and expressed her commitment to the early completion of the agreement on the draft Enhanced Partnership and Cooperation Agreement between Uzbekistan and the EU.

The parties also identified an increase in trade between Uzbekistan and the EU member states in the post-period period as priority areas of cooperation, including through the use of the opportunities of the General System of Preferences "GSP +", and the implementation of joint programs in the cultural and humanitarian sphere.

As a result of the meeting, an agreement was reached to continue close cooperation in all the areas discussed.

 

Source: https://mift.uz/

On 23 August 2021, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov and Adviser to the Prime Minister of the Islamic Republic of Pakistan Abdul Razzak Davud in the format of a video conference discussed the implementation of the agreements reached following the results of the visit to Uzbekistan of the Prime Minister of Pakistan in July this year, and also considered the agenda of multifaceted cooperation between the two states.

They voiced mutual readiness to continue joint work and implement the planned measures to deepen trade, economic, industrial, investment and transport and logistics cooperation.

The sides discussed issues of interaction in preparation for the signing of the Agreement on preferential trade between the Republic of Uzbekistan and the Islamic Republic of Pakistan. The parties agreed to intensify bilateral negotiations in order to speed up the coordination of existing issues. Also, in the near future, a "Road Map" will be agreed upon for the practical implementation of the Trade and Transit Agreement signed in July this year, indicating specific mechanisms and responsible persons on both sides.

Touching upon the topic of transport and logistics cooperation, the parties voiced their readiness to take effective measures to ensure stable transit traffic. The issues of deepening cooperation in the banking and financial sphere were also discussed.

Following the meeting, the parties agreed to expeditiously complete the coordination of the Action Plan for the high-quality and timely implementation of all agreements reached during bilateral events with the Pakistani side in July this year in Tashkent.

Source: https://mift.uz/

August 23, 2021

Washington, DC: Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) made the following statement today:

“The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion—comes into effect today. The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.

“The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.

“SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.

“SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed.

“To support countries, and ensure transparency and accountability, the IMF is providing a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability. The IMF will also provide regular updates on all SDR holdings, transactions, and trading – including a follow-up report on the use of SDRs in two years’ time.

“To magnify the benefits of this allocation, the IMF is encouraging voluntary channeling of some SDRs from countries with strong external positions to countries most in need. Over the past 16 months, some members have already pledged to lend US$24bn, including US$15 billion from their existing SDRs, to the IMF’s Poverty Reduction and Growth Trust, which provides concessional loans to low-income countries. This is just a start, and the IMF will continue to work with our members to build on this effort.

“The IMF is also engaging with its member countries on the possibility of a new Resilience and Sustainability Trust, which could use channeled SDRs to help the most vulnerable countries with structural transformation, including confronting climate-related challenges. Another possibility could be to channel SDRs to support lending by multilateral development banks.

“This SDR allocation is a critical component of the IMF’s broader effort to support countries through the pandemic, which includes: US$117 billion in new financing for 85 countries; debt service relief for 29 low-income countries; and policy advice and capacity development support to over 175 countries to help secure a strong and more sustainable recovery.”

Link to more information on SDRs: Special Drawing Rights (imf.org)

https://www.imf.org/

Fitch Rating Agency has affirmed the long-term rating of the capital of Uzbekistan at 'BB-' with a 'stable' outlook.

According to experts at Fitch, the economic impact of the coronavirus and rising costs is offset by a moderate level of debt.

At the same time, the taxes collected amounted to 30% of the city's total revenues in 2020. Transfers from the government have gradually increased over the past five years and reached 57% of total revenues in 2020, up from 14% in 2016.

“The financial autonomy of the city is controlled by the central government, which sets all tax rates and determines the number of tax revenues to be distributed among the state levels. The availability of additional taxation is also limited by the low disposable income of the population (the average monthly wage in Tashkent in 2020 was about $ 375),” the agency said.

Due to the reallocation of liabilities, the expenditures over the past five years have been volatile. Costs were also affected by high, albeit declining, inflation, which stood at 13% in 2020, while at its peak in 2018 it stood at 17.9%.

The city administration spent most of its funds on education and medicine, which accounted for up to 30% of all the funds spent last year. According to Fitch analysts, the dynamics of expenditures are balanced by revenues, but there is a risk that government decisions may negatively affect the spending of funds.

At the same time, the city's investment program, which accounts for 23% of total spending in 2020, may provide some leeway in the short term. In the long term, however, capital investment pressures may persist due to Tashkent's high infrastructure needs.

 

https://kursiv.uz/

On August 21, in Tashkent, Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan S. Umurzakov met with Deputy Prime Minister of the Russian Federation A. Overchuk.

During the meeting, a wide range of issues of trade, economy, investment and transport-logistic cooperation were discussed.

Speaking about strengthening investment ties, the parties placed special emphasis on the development of interregional cooperation. It was announced that in preparation for the II Forum of Interregional Cooperation, 42 mutual visits of the heads of the administrations of various regions of Uzbekistan and the Russian Federation will be organized to work out solid investment and trade agreements.

For reference: following the results of the I Forum of Interregional Cooperation between the Republic of Uzbekistan and the Russian Federation, held in 2018, agreements worth $ 2.7 billion were signed, of which the number of agreements on the implementation of investment projects amounted to $ 1.5 billion, and trade agreements - 1, $ 2 billion.

The parties noted the relevance of establishing cooperation ties between manufacturers of the two countries, in the context of which the preparation for the " Made in Uzbekistan " industry exhibition in Moscow, which will become the largest exposition of Uzbek-made products ever held in the Russian Federation, was reviewed.

The report of the responsible managers on the current results of the activities of the joint Project Office was heard. An agreement was reached to intensify joint work on the implementation of agreed investment projects included in the Economic Cooperation Program, totalling $ 5.8 billion.

The parties also considered the current status of the implementation of the agreements reached during the meeting of the Intergovernmental Commission on Economic Cooperation (IGC) held in October 2020 and discussed preparation for the next meeting of the IGC.

As a result of the meeting, a "Road Map" was signed for the implementation of the Memorandum of Understanding in the development of logistics corridors. The document outlines the priority measures to create the necessary infrastructure and organize the appropriate logistics service.

The document defines the format of bilateral interaction to improve customs, sanitary and phytosanitary procedures, simplify the procedure for the movement of goods between the two countries, develop interaction between the state bodies of the two states in the field of digitalization, and also contains specific practical measures to implement infrastructure projects, in particular, on the creation of agrological and wholesale distribution centres. One of these measures is the organization of a regular block train " Agroexpress " according to the principle of "green corridor", which ensures the maximum delivery time for agricultural products from Uzbekistan to the Russian Federation, not exceeding five days.

Following the meeting, the parties outlined further steps for practical interaction within the discussed areas of cooperation and agreed to maintain close contacts at all levels to promptly resolve emerging issues.

https://mift.uz/ru/news/obsuzhdeny-voprosy-uzbeksko-rossijskogo-sotrudnichestva

On 20 August, President of the Republic of Uzbekistan Shavkat Mirziyoyev held an open dialogue with entrepreneurs of our country.

The event, which became the first meeting in this format, was attended by about ten thousand entrepreneurs.

Small business and private entrepreneurship are identified as the priorities of the economy of our country. Over the past five years, about 2 thousand laws, decrees, and resolutions have been adopted to develop this sector.

For business, 114 licenses and permits were canceled, a notification procedure was introduced for 33 types of activities. The procedures for obtaining permits have been simplified and, on average, the terms of their issuance have been reduced by 2 times. Unnecessary checks have been canceled, restrictions related to the circulation of cash, currency, and raw materials have been lifted.

As a result of such opportunities, the number of new business entities is growing rapidly, and the existing ones are expanding their activities. The number of entrepreneurs has almost tripled over the past five years. Many business people have expanded their business nationwide, creating thousands of jobs and growing into large, successful companies. A class of entrepreneurs with their own brand in the domestic and foreign markets began to form.

The head of our state mentioned some of such energetic and selfless entrepreneurs, thanked them for their support of our people.

Before this open dialogue, a collection of appeals on issues and problems of concern to entrepreneurs was announced. More than 15 thousand applications were received on various issues.

In his speech, the President outlined 7 important areas for their solution. The first direction concerns business financing, the second one - improving the tax system and reducing the tax burden on business, the third one is aimed at improving the procedure for providing land, the fourth one - developing infrastructure, the fifth one - supporting exporting enterprises, the sixth one - the transport and logistics sector, the seventh one - to simplify business procedures.

The head of our state outlined the current tasks in each area and put forward new initiatives.

For example, 40 percent of inquiries relate to business financing and financial and credit issues. In particular, it was noted that many loans are issued at high-interest rates and for a short period, on conditions that are unfavorable for an entrepreneur. Also, loans in foreign currency create additional costs for the entrepreneur due to the growth of the exchange rate.

In this regard, measures have been identified to increase the capital of banks. In particular, next year banks will receive an additional US$600 million from the Fund for Reconstruction and Development on Market Principles. Eurobonds in national currency in the amount of 5 trillion soums will be placed on international financial markets. There will be ample opportunities for foreign banks to enter the Uzbek market.

Another important innovation will be the introduction of a system of lending to entrepreneurs in soums, regardless of the currency in which banks attract resources. For this, a Currency Risk Management Company with branches in the regions will be created under the Ministry of Finance.

Over the past three years, the number of taxes has been reduced from 16 to 9. Until recently, contributions to the pension, school and road funds were paid at a rate of 3.2%, which was a heavy burden on business. These fees were deducted from the turnover regardless of profits, and their size was at least 25-30 percent of the profits of enterprises. The rates of property tax, income tax and social tax were reduced by 2 times.

The President noted that additional preferences will be created for entrepreneurs in this direction.

In particular, entrepreneurs registered in economic zones before the adoption of the Law "On Special Zones" in February 2020 will retain the benefits provided to them.

A procedure will be introduced for refunding the amount of overpaid value-added tax to participants in special economic zones within 7 days. This will allow them to increase their working capital.

In addition, when paying value-added tax in installments for 120 days, entrepreneurs will not be charged interest and will not require a deposit.

The tax rate for the use of subsoil for enterprises producing building materials will be reduced by 2 times.

Stressing the importance of supporting the service sector in a pandemic, the head of state instructed to extend the benefits provided to them last year. By the end of the year, catering establishments will be exempted from paying land and property taxes, and travel companies and hotels - from tourist taxes for a period of 2 years.

According to the current procedure, entrepreneurs, along with reporting, are obliged to separately apply to the tax authorities to collect the difference in value-added tax. This applies to 14 thousand entrepreneurs, it takes their time and money.

Therefore, the responsible persons were instructed from next year to introduce the procedure for the return of value-added tax without additional documents.

Another problem that worries entrepreneurs is the allocation of land. On this occasion, the President received more than 4 thousand appeals.

On 16 August, the Law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in connection with the improvement of the procedure for the provision of land plots and their use, as well as the system of land registration and maintenance of the state land cadastre" was adopted. Thus, a solid legal basis was created for the introduction of land into economic circulation, turning them into an object of purchase and sale and mortgage.

From now on, agricultural land will be provided only for lease on the basis of an open tender. Non-agricultural land will only be sold through an auction.

Naturally, many entrepreneurs are concerned about the fate of the land plots on which their business is located. The President noted that the land plots currently occupied by these enterprises will be registered as their property.

Particular attention was paid to providing business entities with infrastructure. It was noted that from 1 January next year, the state will be fully responsible for the supply of power grids, gas pipelines, water supply and road infrastructure for projects worth 200 billion soums. Today, this procedure applies only to projects of foreign investors worth more than US$50 million.

In addition, over the next two years, another 200 industrial zones will be created throughout the country, which the state will provide with engineering communications and road infrastructure. For these purposes, 2 trillion soums will be allocated from the budget next year.

Another problem that entrepreneurs complain about is that small businesses have the same electrical connection requirements as large businesses.

In this regard, from the beginning of next year, a convenient system will be introduced - the connection to the power grids will be fully carried out through an electronic platform, and all processes will be combined into one. The term for connecting entrepreneurs to the power grid will be 10 days for capacities up to 20 kilowatts and 20 days for 50 kilowatts. If the power supply company does not complete the work on time, it will pay compensation to entrepreneurs.

The head of state also put forward a number of initiatives to support exporting enterprises and attract small businesses to export activities.

For example, last year, during a pandemic, a VAT refund procedure was introduced for textile enterprises without waiting for foreign exchange earnings from exports. From now on, this procedure will apply to honest and disciplined exporters from all industries.

Thus, enterprises that export products worth more than US$20 million per year will receive preferential loans worth up to US$5 million.

It was noted that today high customs duties are imposed on the import of certain types of raw materials. As a result, products are cheaper to import than to produce.

In this regard, the government was instructed to reduce the rates of import duties on raw materials and semi-finished products.

The issues of development of transport and logistics services, facilitation of cargo transportation for entrepreneurs were also touched upon. It has been determined that the privileges for the import of trucks and railway cars will be extended for another 3 years.

There are many guidelines for reducing business interference and making it easier to obtain subsidies.

During the dialogue, entrepreneurs spoke about their problems, expressed their opinions and proposals. Each case was discussed with the participation of responsible persons and khokims.

The President suggested holding such open dialogues traditionally and establishing 20 August as the Day of Entrepreneurs in our country. These proposals were widely supported by the participants.

 

https://www.uzdaily.uz/

Deputy Prime Minister – Minister of Investments and Foreign Trade of Uzbekistan Sardor Umurzakov has held virtual talks with the newly appointed President of the Islamic Development Bank (IsDB) Muhammad Sulaiman Al Jasser.

The parties discussed several issues related to the preparation for the 46th IsDB Group Annual Meeting in Uzbekistan and the general course of development of cooperation.

According to Uzbekistan MIFT, the leadership of the IsDB emphasized the activity of the Uzbek side in preparing for the Annual Meeting. Practical issues related to the organization of the event were considered and effective algorithms for interaction in this direction were developed.

It is expected that the Annual Meeting will be attended by 57 Governors from the IsDB member countries – members of governments and ministers responsible for finance, economics, planning and international cooperation, heads of central banks and other officials of member countries, as well as high-ranking representatives of international financial institutions, international development organizations, the business sector, civil society, academia, the media. More than 2 thousand participants are expected to attend the event.

It was noted that holding an event of this level and scale will attract the attention of the general public and investors to the reforms being carried out in Uzbekistan, give a new impetus to the development of cooperation with the IsDB and increase the bank’s investment portfolio in Uzbekistan.

The parties also discussed the current state of cooperation between the IsDB and Uzbekistan, a portfolio of ongoing projects and considered the prospects for its expansion. 

 

 

 https://mift.uz/

In January-June 2021, according to the State Committee on Statistics, the share of investments at the expense of the population amounted to 9.0% of the total investment in fixed assets in the Republic of Uzbekistan.


When observed in the context of regions, the largest share was recorded in the Andijan region - 16.0% of the total investment in fixed assets from all sources of financing.

At the same time, the share of utilized investments at the expense of the population in the Surkhandarya region was 15.9%, in the Khorezm region - 15.3%, in the Republic of Karakalpaktan and in Bukhara region - 13.8%.

 

 

https://stat.uz/

President of Uzbekistan Shavkat Mirziyoyev has appointed Laziz Kudratov the General Director of the Agency for Strategic Development.

According to the resolution of the President, Laziz Kudratov, First Deputy Minister of Investments and Foreign Trade, is entrusted with the duty of the Director-General of the Agency for Strategic Development.

The Agency for Strategic Development was established in accordance with Presidential Decree No. UP-6264 on 19 July 2021. The functions of the Agency are to study strategic issues of attracting investments and implementing projects in the context of industries and regions, identifying promising industries and areas of investment activity, organizing systematic work to improve the investment climate and foreign trade activities in the country, as well as establishing close cooperation with international organizations in order to form and promoting a positive image of the country.

Also, the Agency on an ongoing basis will conduct a rating of investment attractiveness of regions and sectors of the economy, developed on the basis of advanced international practices. On the basis of this rating, an assessment and analysis of the effectiveness of the activities of state bodies in solving problems in the field of improving the investment climate, development of regions and industries and other areas will be carried out.

Kudratov will simultaneously act as First Deputy Minister of Investment and Foreign Trade

 

https://mift.uz/

Due to foreign credit lines, the business of Uzbekistan received loans from commercial banks for $ 7.4 billion in 3.5 years. This was announced by the Central Bank in its review.

The largest loans for this period, Uzbek entrepreneurs received last year which equals $ 2.95 billion. In the first half of this year, the total amount of loans was slightly higher, amounting to $ 1 billion.

On average, $ 540 million worth of loans were issued annually against the guarantee of the state. But the share of such loans in the total volume of lending is decreasing every year. If in 2018 there were 44% of such loans, then in 2019 the figure dropped to 26%, and last year to 16%. The reduction is not due to a decrease in the volume of lending, but due to the growth of the segment of loans issued without guarantees of the Republic of Uzbekistan.

For 3.5 years, most of the funds (59%) were allocated to the industry. This is followed by agriculture (22%), services (14%), transport (3%) and construction (2%).

 

https://kursiv.uz/

On 16 August 2021, in Tashkent, Minister of Agriculture of the Republic of Uzbekistan Jamshid Khodjaev met with the general manager of the Omani company Atyab Foodtech Mohib Ahmed Khan on the implementation of an investment project worth US$4 million, namely the creation of “Centers of agri-food technologies” on the basis of the republican network under construction of the National Center for Agricultural Knowledge and Innovation AKIS. The project is carried out within the framework of a memorandum of cooperation signed on 3 November 2020 between the ministry and an Omani company.

The tasks of the "Centers for agri-food technologies" will include laboratory research for compliance with international quality and safety standards for produced, exported and imported food of agricultural origin. The centers will directly certify Uzbekistan’s products in accordance with international standards ISO, HACCP, FSSC, Global GAP, Halal. Also, local agricultural producers will have the opportunity to get advice on the production of products in accordance with food safety requirements and QHSE standards.

International accredited laboratories (ILAC, IAF) of these centers will work in several directions:

- testing of agricultural / food products, water, soil and fertilizers;

- control over hygiene and food safety;

- analysis and certification of food products (service for importers and exporters);

- advising and training farmers, food producers and points of sale on food safety criteria.

On the basis of the centers, it is planned to conduct trainings with the participation of experienced specialists from the USA, Canada, Great Britain, Germany, Switzerland, Turkey, India, the countries of the Middle East, as well as support farmers in the development of new projects in the field of the agro-industrial complex and the food industry.

Atyab Foodtech is the main investment arm of the Oman Flour Mills Company (SAOG), specializing in the development of new technologies for quality food processing, access to hygienic and balanced food, the manufacture of consumer goods in accordance with international standards, etc.

https://www.uzdaily.uz/

According to the State Statistics Committee, as of August 1, 2021, the number of foreign-invested enterprises registered in Uzbekistan topped 13.5 thousand, of which 12.9 thousand are operating.

According to the committee, the number of foreign-invested enterprises increased by 1,772 to the last year.

Number of foreign-invested enterprises by country:

  • Russia - 2,291;
  • China - 1,915;
  • Turkey – 1,776;
  • Kazakhstan – 1,023;
  • Korea - 923.

Number of newly established foreign-invested enterprises by country:

  • Turkey - 252;
  • Russia - 228;
  • China - 161;
  • Kazakhstan - 121;
  • Korea - 64.

https://stat.uz/

The Decree of the President of the Republic of Uzbekistan No. R-5679 dated July 24, 2021, approved a Roadmap of measures on stimulation of economic development, improve the efficiency of public governance and international cooperation.

The document envisages the implementation of specific measures to develop a medium-term programme of economic reforms, mechanisms for their implementation, enhancement of the public governance quality, advancement of the internal communication and interaction systems between the State and the citizens, as well as promotion of Uzbekistan's image in the international arena.

In particular, the Roadmap includes such measures as the creation of a national development strategy for 2022-2026, a financial and capital market development strategy, an industrial policy taking into account advantages and specifics of the development of different sectors and regions, reformation of the agricultural sector, privatizaton of state-owned enterprises, development of public-private partnerships, facilitation of SMEs activities in the post-Covid period, enhancement of the legal system and improvement of the investment climate, increasing capacity and qualification of public servants and other activities.

These activities will be implemented by the relevant ministries and agencies in close cooperation with the Strategic Development Agency and Sir Suma Chakrabarti, Advisor to the President of Uzbekistan on Economic Development, Effective Governance and International Cooperation.

The successful implementation of these reforms will substantially increase the country's investment attractiveness, make full use of its industrial potential, and lay a foundation for Uzbekistan’s sustainable economic development.

 

https://mift.uz/

The Islamic Development Bank (IsDB) Group will hold its 2021 Annual Meetings of its Boards of Governors from 31st August to 4th September 2021 in the beautiful city of Tashkent, Republic of Uzbekistan, at the Tashkent City Congress Center, to discuss development issues and institutional matters pertaining to their Member Countries.

The Annual Meetings are attended by 57 IsDB Governors, who are primarily ministers of finance, economy, planning, and international cooperation, central bankers, and other high-ranking ministers from Member Countries, as well as high profile representatives from other multilateral development banks (MDBs) and the international development community, business sector, civil society, academia, media, and other stakeholders. More than 2,000 participants are expected.

This year’s Annual Meeting comes at the back of the unrelenting COVID-19 pandemic that has ravaged the world economy. It is for this reason that the meeting will mainly delve into the complex issue of dealing with current challenges occasioned by the pandemic and as well vaccine availability to contribute to spearheading an inclusive economic recovery within the Member Countries and global level.

The meetings, under extreme COVID precautions, offer an ideal platform for decision-makers to discuss challenges and explore IsDB Group member countries’ opportunities. A number of subjects will be covered in the seminars and side-events at the Annual Meeting including: building resilience amid COVID-19, showcasing innovation for tomorrow through Transform Fund, rebuilding resilient global value chains as a pathway to global economic recovery as well as discussing youth development issues and jobs creation among other interesting topics.

The Annual Meetings also constitute an occasion during which the other members of the IsDB Group hold their General Assemblies.

To access more details and the program of the events, please visit our dedicated website for the annual meeting here.

Follow #IsDBG2021 on FacebookLinkedIn, and Twitter as well the host country social media channels.

About Islamic Development Bank (IsDB) Group

Rated AAA by the major rating agencies, the Islamic Development Bank is a multilateral development bank that has been working for over 45 years to improve the lives of the communities it serves by delivering impact at scale. The Bank brings together 57-Member Countries across four continents, touching the lives of 1 in 5 of the world population. Its mission is to equip people to drive their own economic and social progress at scale, putting the infrastructure in place enabling them to fulfil their potentials. Headquartered in Jeddah, Kingdom of Saudi Arabia, IsDB has regional hubs and centers of excellence in 11 of its Member Countries.  Over the years, the Bank has evolved from a single entity into a group comprising five entities: Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI) tasked with research and training, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC).

For more information, please contact;

Office of the Director of Marketing and Communications Department

Email: directormcd@isd.org

 

https://mift.uz/en/

At the Ministry of Investment and Foreign Trade, a meeting was held with the leadership of a large Singaporean construction company Western International New Building Materials.

From the Uzbek side, the meeting was attended by First Deputy Minister of Investments and Foreign Trade A. Voitov and Chairman of the Chamber of Commerce and Industry A. Ikramov.

The prospects for establishing investment activities of a Singapore company in the production of construction materials in Uzbekistan were discussed. In particular, it was announced that the company is currently considering the possibility of implementing a project to organize the production of clinker cement.

The Uzbek side provided detailed information on the investment and industrial potential of this industry. It was noted that special attention is paid to the development of the production of building materials in Uzbekistan, as one of the drivers of economic growth, in view of which there are all the prerequisites for the successful implementation of the project of the Singapore company.

Following the meeting, the parties agreed to establish close cooperation in order to accelerate the progress of the project and promptly resolve emerging issues.

 

https://mift.uz/ru/news/singapurskie-investory-planirujut-realizovat-proekt-v-sfere-proizvodstva-stroitelnyh-materialov-v-uzbekistane

The Ministry of Energy of Uzbekistan presented 10 largest projects in the history of the energy sector of our country.

As the press service of the Ministry of Energy informs, 2021 in the energy sector of Uzbekistan is the year of the largest projects, while many of them have simply never been analogues in the country.

  1. Over the past 6 months of this year, 10 contracts were signed for the construction of thermal, solar and wind power plants in the power industry with a total capacity of 4341 MW, which is about a third of the current capacity of existing power plants in Uzbekistan. 
  2. This year, for the first time in the history of the electric power industry, 2 large solar power plants with a capacity of 100 MW each will be launched in Navoi and Samarkand regions. 
  3. By the end of the year, thermal and solar power plants with a total capacity of 1,800 MW will be commissioned. The commissioning of such a large capacity of the electric power industry in 1 year has never happened in Uzbekistan before!
  4. In 2021, additional high-voltage transformers with a total capacity of 1,568 megavolt-amperes (MVA) will be installed at 17 electrical substations. Also before the end of the year, three investment projects are planned to be launched: for the reconstruction of high-voltage line 500 kV "Guzar-Regar", to expand the outdoor switchgear (OSG) in the substation 500 kV " Surkhan " and for the construction of the base substation for power supply of external objects electrified railway line " Pop-Namangan-Andijan ". Projects of such capacity are being commissioned for the first time within one year.
  5. During the current year, 15,000 km of low-voltage power transmission lines will be reconstructed and updated, which is the first such large-scale reconstruction in the history of the electric power industry of Uzbekistan.
  6. Another large-scale work is the modernization and reconstruction of 4 thousand transformer substations, which is being implemented and will be completed by the end of the year. 
  7. This year in the Kashkadarya region the largest investment project in the region and the only one of its kind in the CIS - the Uzbekistan GTL project will be launched.
  8. In 2021, within the framework of the state program, an automated electricity metering and control system (ASKUE) was installed for all 7 million 300 thousand subscribers.  
  9. In 2021, as part of the implementation of an automated system for accounting and control of natural gas (ASKUG), modern electronic gas meters will be installed free of charge for all more than 3.5 million consumers. 
  10. In 2021, the installation of barcodes on household gas cylinders will be completed throughout the country. Now the control of LPG cylinders will also be provided online. 

2021 is a breakthrough year for ensuring the energy security of Uzbekistan, for the planning and implementation of the adopted plans and projects by the Ministry of Energy, together with partner organizations and companies.

These efforts will help ensure affordable and constant electricity supply to both the population and entrepreneurs, which in turn will increase confidence in Uzbekistan and help attract foreign investment to the country.

https://dunyo.info/

In the development of the drinking water supply and sewerage system, a total of 22 investment projects are being implemented with the participation of international financial institutions (IFIs), totalling US$2.35 billion. These 22 projects are financed from the following sources: - US$1,972.9 million (83.9%) - IFI funds; - US$377.6 million (16.1%) - state budget funds.

According to the Investment Program in 2021, 22 projects provide for the development of investments in the amount of US$201.3 million. In January-July of this year, loans from international financial institutions were disbursed in the amount of US$82.5 million.

The bulk of the disbursed loans falls on the Asian Development Bank (36.3 percent of the total), the World Bank (35.1 percent), the Islamic Development Bank (19.4 percent), the Saudi Development Fund (4.7 percent). ), OPEC Fund (3.4 percent). The bulk of the disbursed credit funds falls on the Bukhara region (US$23.8 million), the Tashkent region (US$19.2 million), the Syrdarya region (US$16.0 million), Samarkand region (US$11.2 million). ), Jizzakh region (US$9.0 million) and the Republic of Karakalpakstan (US$1.7 million).

These funds will be used for construction and installation work, the purchase of equipment and instruments, the provision of consulting services and other purposes. At the same time, to date, by attracting funds from IFIs in the field of further development of the drinking water supply and sewerage system, work is underway on 23 promising projects with a total cost of US$2.1 billion.

At the moment, work is underway on the development of design and project documents, approval and agreement of the developed documents.

https://www.uzdaily.uz/

A Memorandum on joint implementation of projects was signed between the Direct Investment Fund of the Republic of Uzbekistan and the Association of Furniture and Woodworking Enterprises of the Republic of Uzbekistan.

The Memorandum was signed by Atabek Nazirov, Director General of the Management Company of the Direct Investment Fund of the Republic of Uzbekistan, and Aziz Nuritdinov, Chairman of the Association of Furniture and Woodworking Enterprises of the Republic of Uzbekistan.

It should be noted that on 21 June 2021, the President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures aimed at the development of the furniture industry in the regions of the republic", according to which small industrial zones will be created in the regions of the country, specializing in the production of furniture products in the format of clusters.

In this context, the concluded Memorandum serves to unite the efforts of the parties in the formation of the largest furniture cluster in the republic. According to the Association’s estimates, investments in the project are estimated at US$150 million and envisage the creation of 22 production facilities with more than 2,000 new jobs. In addition, a training center will be created on the territory of the cluster for the education and training of local personnel by foreign experts. Successful implementation of the project will accelerate the development of the furniture and woodworking industry and bring it to a leading position in the region. The Memorandum is based on the Concept of creating a National Industrial Holding to unite entrepreneurial, industrial and financial capital for the development of competitive domestic industries, including for the production of furniture products and maximum import substitution, as well as the creation of new jobs.

The Direct Investment Fund of the Republic of Uzbekistan was created in accordance with the Decree of the President of the Republic of Uzbekistan from 17 January 2019, which approved the State Program for the implementation of the Action Strategy in five priority areas of the country’s development in 2017-2021 in the year of "Active Investments and Social Development". One of the main tasks of the Fund is to attract foreign direct investment and innovative technologies to expand the production potential, as well as to further increase the competitiveness of the republic’s economy.

The Association of Furniture and Woodworking Enterprises of the Republic of Uzbekistan was established in 2018. The founders of the Association were such well-known enterprises in the country’s market as Huvaydo Mebel, Intermebel, Abuzar Mebel, and others.

https://www.uzdaily.uz/en/post/67342

Within the framework of the project, agricultural products will be transported between the countries in accelerated refrigerated container trains.

Deputy Minister of Economic Development of the Russian Federation Dmitry Volvach said that the Russian-Uzbek project " Agroexpress " is under development and will be implemented in the near future.

The document is being finalized by the Uzbek side. The implementation of the project for launching a logistics corridor will make it possible to steadily increase mutual supplies of agricultural products. In the future, it is planned to introduce container trains that will deliver products, the message says.

An action plan has also been developed, which provides for the coordination of technical conditions for the interaction of customs and control services, tariffs and the formation of rolling stock for the project.

According to the press service of the Ministry of Economic Development, Russia together with Azerbaijan is working on the launch of a similar project.

In addition, the construction of a wholesale and logistics center for agricultural products has begun in the Jizzakh region of Uzbekistan, which will also contribute to an increase in supply volumes, - said the President of the NARC Sergey Lisovsky.

According to the State Statistics Committee of the Republic of Uzbekistan, in the first half of this year, Uzbekistan exported vegetables and fruits to Russia for 113.7 million US dollars.
 

https://www.uzdaily.uz/ru/post/62892


Ambassador of Uzbekistan Kadambay Sultanov today met with the regional coordinator of GLOBAL GAP for Central Asia and Russia Edita Strazdynia.

GLOBAL GAP is an independent organization that defines the requirements for voluntary certification of agricultural products around the world. Establishes a uniform standard of Good Agricultural Practice (GAP). Applicable to all types of agricultural products. The certification procedure affects all stages of production, from feed or seed to finished products of agricultural enterprises.

According to the Embassy, important aspects of joint work in the field of implementation of globally recognized standards in agriculture of Uzbekistan, online and offline certification systems, audit and mentoring were discussed. An exchange of views took place on the prospects for increasing the number of holders of GLOBAL GAP certificates of conformity and the creation of local certification structures in the republic, the development of standardization in agriculture, animal husbandry, fish farming, etc.

During the conversation, Edita Strazdynia said that in recent years Uzbekistan has been making significant progress in the production of goods that meet the requirements of ORGANIC and GLOBAL GAP standards. Particular attention is paid to improving the safety and quality of agricultural products. The government decisions in the field of expanding the geography of exports, as well as the full use of the potential of organic production, were positively assessed.

As a result of the meeting, an agreement was reached on organizing a visit of Edita Strazdynia to Uzbekistan on August 16-27 to conduct a series of trainings in Tashkent and Samarkand, meetings in relevant ministries and departments of the republic for a substantive discussion of issues about multiple increases in the holders of GLOBAL GAP certificates of conformity and the number of accredited national auditors.

They also discussed the practical aspects of studying the Latvian rule-making experience of introducing a system that allows farmers and agricultural producers to independently carry out the certification procedure and, without intermediaries, to establish and increase their exports, including to European markets.
 

https://www.uzdaily.uz/ru/post/62893

At a regular meeting of the Legislative Chamber of the Oliy Majlis, the people’s deputies, article by article, considered in the second reading a draft law aimed at supporting entrepreneurship and further improving the business environment.

It was noted that during the preparation of the draft law for the second reading, its norms were finalized. That is, the articles in the bill have been finalized on the basis of proposals from factions of political parties and committee members.

The draft law envisages the provision of an opportunity to pay taxes in instalments on the basis that an interested person who has been operating for more than three years and pays the accrued taxes on time is not able to pay this tax debt due to the financial situation. These opportunities are also provided to participants in foreign economic activity who have been importing goods for more than three years, who have fulfilled their obligations on customs payments, but due to their financial situation are not able to pay them in due time.

As the deputies emphasize, the adoption of the bill will serve to increase income and further the development of business entities.

After lively discussions, the draft law was adopted by the people’s deputies in the second reading.

https://www.uzdaily.uz/

The State-Owned Assets Management Agency reached a sale agreement of the government’s 57.118% stake in Coca-Cola Bottlers Uzbekistan (CCBU) to the Coca-Cola İçecek A. Ş group of companies. (CCI, Turkey) through its subsidiary, CCI International Holland B. V. for a total of USD 252.28 million, announced today the press service of the agency.

The deal was approved by the Tendering Commission for Sale of State-Owned Property. Closing the deal will require some regulatory approvals.

The deal was launched as an open sale process in line with the presidential decree dated October 27, 2020. Investment bank Rothschild & Co. acted as financial advisor to AUGA, and Dentons as legal advisor.

Coca-Cola Bottlers Uzbekistan is the largest producer of fizzy soft drinks in Uzbekistan, has production facilities in Tashkent, Namangan and Urgench, as well as a network of warehouses. In 2020, the company's net profit topped 205 billion sums.

Coca-Cola İçecek is one of the largest enterprises in the Coca-Cola structure. Its majority owners are Anadolu Efes and The Coca-Cola Company.

The sale of the government’s 57.118% stake in CCBU was announced by SAMA in December last year. Coca Cola İçecek was one of the first to apply for the tender in early January.

https://tashkenttimes.uz/

Within the period of January-June 2021, the gross domestic product (GDP) of Uzbekistan at current prices amounted to 318.5 trillion. sums, which is 6.2% more than in the same period last year.

GDP growth is due to positive improvement rates in the main sectors of the region's economy, such as agriculture, forestry and fisheries - 1.8%, industry - 8.5%, construction - 0.1% and services - 8.0%

In the context of regions, outstripping growth rates of the gross regional product (GRP) were noted in Tashkent (14.0 %), Syrdarya (12.3 %), Tashkent (7.8 %) and Kashkadarya (7.7 %) regions.

https://stat.uz/

These sanctions will be applied to service sectors, as well as individual entrepreneurs.

Starting from the 1st of  October, the Special Republican Commission decided to introduce restrictions to companies with non-vaccinated employees.

In particular, the work of business enterprises and companies in the service sector, as well as individual entrepreneurs, will be temporarily limited if their employees (except for those who are contraindicated for health reasons) are not vaccinated with at least two doses of vaccination (confirmed by a certificate).

Moreover, on the 10th of August, the restrictions are mitigated on the operation of catering - cafes and restaurants with vaccinated employees. Now, these enterprises can continue operating after 8:00 pm and in enclosed spaces.

https://www.spot.uz/ru/2021/08/08/vaccine/

 

 

 

Sardor Kodirov, the head of the department of the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, said at a briefing that in the period of January-June 2021, the trade turnover of Uzbekistan with Russia increased by 18% to $ 3.1 billion.

According to the Sardor Kodirov, the Russian Federation is one of the three main trade partners of the Republic of Uzbekistan. In recent years, the volume of mutual trade between the two countries has increased by almost 20% and at the end of 2020 amounted to $ 5.6 billion.

As of today, there exists 2.2 thousand enterprises with the participation of the Russian capital in the Republic of Uzbekistan. In turn, there are 600 companies from Uzbekistan operate in the Russian Federation.

Today, the countries are implementing 154 joint Uzbek- Russian investment projects worth $ 16.6 billion. Among them are large projects in such areas as the production of components and spare parts ($ 300 million), the production of medicinal substances and finished products ($ 147 million), metallurgy ($ 664 million), and chemical industry ($ 755 million).

Based on recent information, the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan intends to open a representative office in the capital of Russia. The trade mission will assist in the implementation of projects on trade and economic cooperation with the Russian Federation. It will also work to attract direct investments and technologies, as well as to increase the volume of Uzbek exports to Russia.

 

https://kursiv.uz/news/ekonomika/2021-08/tovarooborot-uzbekistana-i-rf-vyros-na-18


Investors are attracted to Uzbekistan for oil refining, oil production, and chemical industry  

In Uzbekistan, unprecedented measures are being taken to further form a favorable investment climate and increase investment attractiveness, which contributes to an increase in the inflow of foreign investment, writes the Finprom.kz edition.

In recent years, the country has shown fairly good results in this direction. So, in the " pre-coronavirus " 2019, Uzbekistan became the leader in the growth of the inflow of foreign direct investment.    

Over the year, the number of external investments increased by 2.3 times at once and amounted to $ 4.2 billion.   

Oil refining, oil production, and chemical industries are attracting investors into Uzbekistan. The greatest interest was shown by China, Germany, the USA, and Russia.  

The measures taken by Uzbekistan to create a favorable investment climate allowed the country to improve its position in the international ranking of ease of doing business: in 2020, Uzbekistan rose by 7 positions and took 69th place, which is one of the best indicators in the region.         

“The country has strengthened the protection of minority investors by increasing the rights of shareholders and their role in major corporate decisions, clarifying ownership structures, and increasing corporate transparency. They also simplified the payment of taxes by combining the two and stimulated cross-border trade by introducing risk-based checks and simplifying the requirements for import documents,” the publication says.           

Meanwhile, Kazakhstan has improved its position in the ranking from 28th to 25th - this is the best result in the region, although the country still lags behind Uzbekistan in terms of the speed of development and attraction of investments.       

Competition between Central Asian countries in improving the investment climate has a positive effect on the region's reputation, the newspaper notes.  

However, in Kazakhstan, the inflow of foreign investment in 2019 did not change compared to the previous year, nevertheless the country remains the leader in terms of attracted investments. In Kyrgyzstan and Tajikistan, growth was 26.4% and 1.4%, respectively.         

Another confirmation of the investment attractiveness of the Central Asian countries is the growth of accumulated investments during the period of the pandemic and crisis.   

So, as of January 1, 2021, their amount increased by 6.7%. As in the case of the gross inflow of foreign direct investment, the largest increase in accumulated foreign investment is observed in Uzbekistan - 29.8%.         

In Kazakhstan, the growth was only 3.6%, in Tajikistan - 1.6%.   


https://www.spot.uz/ru/2021/08/03/uzbinvest/

Deputy Prime Minister of the Republic of Uzbekistan S. Umurzakov in the format of a video conference discussed with representatives of the expert community, entrepreneurs and bloggers the preparation for the upcoming open dialogue of the President of the Republic of Uzbekistan with entrepreneurs and investors, as well as current trends in the spheres of economy, finance, the banking sector and other areas.

During the event, which was held in the format of a "brainstorming", proposals were put forward and considered on the formation of the agenda of the upcoming event. They also discussed the problems and proposals of entrepreneurs, received by the Headquarters for the collection and analysis of applications, created by the Ministry of Investment and Foreign Trade in conjunction with the Chamber of Commerce and Industry.

Experts and bloggers shared their vision of the further development of the business climate in the country and indicated priority areas in which it is necessary and important to continue consistent reforms. In particular, they touched upon issues of increasing the efficiency of public administration and tax and customs administration systems, privatization of state-owned enterprises and the banking sector, strengthening mechanisms for protecting the rights of entrepreneurs and investors, creating new instruments for their financial support and other issues.

During the conversation, the importance of establishing close interaction between government agencies on the one hand and experts and business representatives on the other hand was noted, meaning the latter are more actively involved in the development of proposals for the accelerated economic development of the country. It was proposed to create a discussion platform for generating ideas and multilateral exchange of views on further improving the business climate and promoting socio-economic reforms. The purpose of this platform is to build a constructive dialogue between the state and business, aimed at ensuring a clear understanding of common interests, as well as developing specific solutions to existing problems. 

Following a confidential and constructive conversation, the participants determined the format for further cooperation and agreed to hold regular discussions on topical issues on the country's economic and social development agenda.

http://mift.uz/ru/news/mivt-sozdaet-diskussionnuju-platformu-dlja-vzaimodejstvija-s-ekspertnym-soobschestvom-i-predprinimateljami

The Wall Street legend is eyeing hotels, airlines, metals, and other sectors.  

The head of Rogers Holdings, Jim Rogers set his sights on Uzbekistan, writes Forbes.     

“I am a big fan of the new Uzbekistan, although it is still almost unknown in the West. There used to be a dictatorship in the country, but the new government seems to know what it is doing. What they have achieved over the past few years is commendable, ”says Rogers.       

He notes that the economy has finally opened up and international investors will surely take advantage of the new opportunities.  

“I will be closely monitoring their announced plans for privatization and IPOs,” Rogers said.     

The American investor is primarily interested in energy, metals, and agriculture, but in Uzbekistan, he is ready to go further:     

“I am especially interested in their tourism potential. When their airlines are finally privatized, I will definitely think about it. Uzbekistan Airways is an interesting investment case, ”says Rogers.     

He also expressed interest in hotels, as Uzbekistan occupies an important place in China's Belt and Road Initiative.   

“There are some very attractive tourist destinations there. Uzbek airlines is an interesting investment case. I’m looking.” summed up the head of Rogers Holdings.   

 

Jim Rogers is one of the most famous investors in the world. In the 1970s, he, along with George Soros, founded the Quantum Fund, which brought in 4200% earnings to investors in ten years. Despite this, in 1980, Rogers left Wall Street and became interested in travel. Since 2014, Rogers has been actively investing in Russian assets - in particular, the Moscow Exchange, PhosAgro and Aeroflot.

https://www.spot.uz/ru/2021/07/26/rogers/

According to the State Statistics Committee, the GDP growth rate in Uzbekistan reached 6.2%. Whereas, the indicators for the same period last year were only 1.1%.

 The index of physical volumes of industrial production also increased compared to 2020. According to State Statistics Committee, the indicators were negative 0.3% while this year they increased by 8.5%. The number of operating companies has also increased from 433 868 last year to 515 342 in half of this year.

Notably, according to forecasts of the European Bank for Reconstruction and Development (EBRD), the GDP of the Republic of Uzbekistan in 2021 should grow by 5.6%. The major factor of such improvement will be due to recovery in private consumption and investment.

Source: https://stat.uz/ru/press-tsentr/novosti-goskomstata/10398-54646457457-6

"In January-June 2021, the volume of foreign trade turnover оf Uzbekistan amounted to $ 18.013 billion and, compared to the same period in 2020, increased by 13.6%," State Statistics Committee noted.

The largest increase in foreign trade occurred in May, which almost doubled, reaching $ 4.25 billion.

The volume of exports from Uzbekistan in the first half of the year increased by 12.3% to 7.056 billion dollars, imports - up to 10.957 billion (+ 14.35%).

The negative balance of foreign trade amounted to $ 3.902 billion against a negative figure of $ 3.303 billion a year earlier.

The main foreign trade partners of the republic are China (18.2% of the total turnover), Russia (17%), Kazakhstan (10.4%), Turkey (8.7%) and South Korea (4.6%).

The main export items of Uzbekistan were industrial goods (28.8% of total exports), gold and precious metals (19.7%), services (16.1%), textile products (19.2%) and food products (8, 6%).

The main import items of Uzbekistan in January-June were machinery and equipment (32.8%), industrial goods (18.9%), chemical products and plastics (13.8%), food products (10%).

Source: https://stat.uz/ru/press-tsentr/novosti-goskomstata/10425-vneshnetorgovyj-oborot-v-respublike-uzbekistan-za-yanvar-iyun-2021-goda


According to the State Statistics Committee, as of June 1, 2021, the number of enterprises with foreign capital in the country is 12,654, including 5,993 joint ventures and 6,661 foreign enterprises.

 

As of June 1, 2021, the number of enterprises with foreign capital by industry are as follows:

Industry - 4,064 units

Trade - 3 440 units

Construction - 1,046 units

Agriculture, forestry and fisheries - 693 units

Accommodation and catering services - 540 units

Information and communication - 352 units

Transportation and storage - 326 units

Health and social services - 197 units

Source: https://t.me/statistika_rasmiy