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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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 NYSE, NASDAQ, LSE 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.
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.
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.
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.
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.
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.
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.
🏢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%.
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).
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.
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 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).
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.
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.
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.
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.
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.
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.
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.
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.
The authorized capital of the fund will still amount to $ 50 million, but the countries will not be limited to this.
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.
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.
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.
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.
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%.
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.
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:
- expression of interest (you must send an application in the form of a letter) and the qualification selection of participants;
- 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
€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 Belgium, Lithuania, Norway, Spain, Switzerland and the United States of America.
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.
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.
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.
- 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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
Institute for Strategic and Interregional Studies
under the President of the Republic of Uzbekistan
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 +".
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.
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.
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.
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.
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.
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.
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".
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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
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.
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.
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.
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 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.
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.
of the Republic of Uzbekistan Sh. Mirziyoyev
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.
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)
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.
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.
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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.
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.
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.
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.
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.
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.
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%.
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.
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.
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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.
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.
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.
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.
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.
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.
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.
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)
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.
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.
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.
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.
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%.
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
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%).
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.
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.
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.
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.
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).
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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.
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.
- 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.
- 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.
- 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!
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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%.
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.
The Wall Street legend is eyeing hotels, airlines, metals, and other sectors.
“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.
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.
"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%).
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