MAY 15-31, 2023: Uzbekistan Market Report
EUROUZ.EU & Uzbek.Review present the bi-weekly report on key developments in Uzbekistan for MAY 15-31, 2023.
"Today it is already a different Central Asia - it is united and strong, open to dialogue and full-scale partnership (with China)"
Shavkat Mirziyoyev, The President of Uzbekistan
“Increasing global challenges, serious gaps in transport and logistics chains, growing risks of food and energy security and other problems necessitate closer coordination to address the priority tasks of sustainable socio-economic development of our countries (EAEU and Uzbekistan)”
Shavkat Mirziyoyev, The President of Uzbekistan
“Uzbekistan, one of the fastest growing economies in the region, needs sustainable infrastructure solutions. For this, the capital and knowledge of the private sector are essential”
Wibke Schlömer, IFC Director for Turkey and Central Asia
"[The acquisition of Payme] will allow us to capture the strong synergy potential between the payments business and our digital bank, TBC UZ, by leveraging a large user base and a diverse product range"
Vakhtang Butskhrikidze, CEO of TBC Bank
UPCOMING EUROUZ & MEMBER EVENTS
EUROUZ webinar announcement: “Growing Agribusiness & Export Opportunities from Uzbekistan to the EU”
Date: 13 June 2023, | 11h45-13h00 (CET) | online| Languages: EN
We would like to invite you to a high-level panel on “Growing Agribusiness & Export Opportunities from Uzbekistan to the EU”, organized by EUROUZ in partnership with the EU Delegation to Uzbekistan.
The webinar will be an excellent opportunity to discover the vital steps being taken by Uzbekistan's Ministry of Agriculture and private enterprises to unlock new commercial opportunities in the agri-food sector as well as to explore the impact of Uzbekistan joining GSP+ on agri-food exports.
EUROUZ & MEMBER NEWS
EUROUZ Chairman Klaus Mangold met with the Minister of Economy and Finance to discuss providing support to Uzbekistan in obtaining a €500 million KfW loan.
Source: Ministry of Economy and Finance
On May 17th, EUROUZ Chairman Klaus Mangold met with the Minister of Economy and Finance, Sherzod Kudbiev. During the meeting, the sides discussed the current geopolitical situation between Uzbekistan and European countries, with a particular focus on the disruptions in supply chains. This matter is currently being addressed by a joint working group. Furthermore, Klaus Mangold expressed his company's willingness to support the state budget by facilitating the acquisition of a EUR 500 million KfW loan. Read more about the meeting here.
EUROUZ organized a European Networking Evening at the EBRD Annual Meeting and Business Forum in Samarkand.
On May 17th, EUROUZ, in partnership with the Delegation of the EU to Uzbekistan, organized a successful European Networking Evening at the EBRD Annual Meeting and Business Forum in Samarkand. The event was attended by more than 100 high-level European and Uzbek business leaders. After welcoming remarks from EUROUZ speakers, the event continued with a networking dinner reception. Find out more about the event here.
EUROUZ Secretary-General Oybek Shaykhov interviewed the Executive Vice-President of the European Commission and European Commissioner for Trade on EU.
On May 18, EUROUZ Secretary-General had a conversation with the Executive Vice-President of the European Commission and European Commissioner for Trade, Valdis Dombrovskis, on the EU’s engagement in Central Asia. The interview focused on the EU's economic cooperation with Central Asia, the EU’s expectations, and potential concerns. The recorded interview is now available on the EUROUZ Youtube channel and has been featured on Uzbek national TV.
EUROUZ participated in the 2nd EU - Central Asia Economic Forum in Almaty.
EUROUZ participated in one of the key panels of the 2nd EU - Central Asia Economic Forum in Almaty. EUROUZ Board Member, Louis Skyner, spoke on improving the business climate in Central Asia along with the Minister of Foreign Affairs of Hungary, the Deputy Minister of Uzbekistan, the Head of the OECD Eurasia Division, and Ministers from Cyprus and Kyrgyzstan. You can watch the panel discussion here.
EUROUZ welcomes New Association Members: EDF (France), Flanders Investment & Trade - FIT (Belgium), KY & Partners (Uzbekistan), and Avesta Investment Group (Uzbekistan)
EDF (Électricité de France S.A.) is a prominent multinational electric utility company with a diverse portfolio encompassing over 120 gigawatts of generation capacity across Europe, South America, North America, Asia, the Middle East, and Africa. They specialize in the complete value chain of electricity, ranging from engineering to distribution. In November 2021, EDF, in partnership with NEBRAS (Qatar), SOJITZ (Japan), and KAYDEN (Canada), successfully secured a tender for financing, construction, and a 25-year operation of a 1,600 MW gas-powered generation unit known as Syrdarya II IPP in Syrdarya region of Uzbekistan.
Learn more about EDF: https://www.edf.fr/en
Flanders Investment & Trade (FIT) serves as the primary focal point for global business activities in the region of Flanders, Belgium. Established by the Flemish government in 2005, FIT plays a pivotal role in advancing the internationalization of Flanders' economy. It proactively aids Flemish enterprises in expanding their operations overseas and facilitates the identification of reputable Flemish suppliers of high-quality goods and services for foreign companies.
Learn more about FIT here: https://corporate.flandersinvestmentandtrade.com/en
We look forward to providing support to FIT and AWEX during the official Belgian trade mission to Uzbekistan on the 8th and 9th of June.
KY & Partners is a reputable, independent law firm renowned for its exceptional expertise and profound understanding of the local market. With a steadfast commitment to delivering the utmost professionalism, KY & Partners provide unrivaled legal services to their esteemed clients. The team boasts decades of experience, guiding both local and international clients through intricate transactions in Uzbekistan.
The firm specializes in assisting clients in identifying risks and capitalizing on new opportunities within the Uzbek market, as well as finance and banking, capital markets, corporate and regulatory, intellectual property, and technology.
Learn more about KY & Partners: https://kypartners.law/
Stay tuned for more updates and our joint activities coming soon.
Avesta Investment Group LLC (Uzbekistan) is a leading investment banking firm founded in Tashkent in 2003, currently operating in the Central Asian and Caucasus region. The firm provides financial and M&A advisory services, arranges debt and equity capital, and conducts equity and economic research. The basis of the company’s clientele is a foreign portfolio and strategic investors, as well as local private companies. Since 2010, the company has been the exclusive partner for Uzbekistan of the New-York based international brokerage firm, Auerbach Grayson, which operates in more than 120 countries.
Learn more about Avesta Investment Group LLC: http://avestagroup.com/en/
Not a member yet?
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1. INTERNATIONAL COOPERATION
1.1. EUROPE
Source: Presidential Administration
The EU will provide a grant of EUR 10,2 million, and ADF will extend a loan of EUR 375 million.
1.2. RUSSIA & CHINA
Over the past year, Uzbekistan, as an observer in the EAEU, has witnessed a 23% increase in trade turnover with member countries. Additionally, Uzbekistan actively engages in specific programs aimed at facilitating trade and implementing sectoral projects in areas such as transport, agriculture, tourism, and ecology. Among other things, the President of Uzbekistan expressed support for the development of North-South transport corridors, which will connect the region with China, the Middle East, and South Asia.
Uzbek President visited China and participated in the China-Central Asia summit.
Source: Presidential Administration
The visit to China commenced with a bilateral meeting with Chairman Xi Jinping. Both sides acknowledged significant milestones reached in their collaboration to alleviate poverty. Moreover, they identified areas of partnerships that require further attention and signed over 40 documents. These areas encompass investment and technological cooperation in the development of alternative energy, electric vehicles, and the production of plastics, chemical products, metal products, and similar commodities. In the humanitarian sphere, the importance of deepening cooperation in education and tourism was emphasized. The President also launched joint ventures and met with the leading representatives of the Chinese business community. Additionally, Chinese authorities announced plans to ease entry into the country for citizens of Uzbekistan.
During the summit, the Chinese government declared its intention to grant USD 3,72 billion to the countries of Central Asia to support ongoing poverty alleviation efforts. The President, at the meeting, encouraged China to play a more active role in developing energy infrastructure in Central Asia, which is currently struggling to keep pace with industrialization, urbanization, and population growth.
1.3. MIDDLE EAST, SOUTH-EAST ASIA
Singapore's President visited Uzbekistan.
Source: Presidential Administration
During the talks, the sides signed seven documents on cooperation, focusing on strengthening political dialogue, inter-parliamentary ties, mutual support within the framework of international organizations, implementing training programs in public administration, cultural exchanges, and more. Singapore is currently implementing projects worth USD 3,8 billion in Uzbekistan. Additionally, the President of Singapore participated in a business forum and assured to Singaporean business community of comprehensive government support for the implementation of joint projects and initiatives in Uzbekistan.
1.4. INTERNATIONAL ORGANISATIONS
EBRD hosted its Annual Meeting and Business Forum in Samarkand from the 16th to the 18th of May.
Source: Presidential Administration
Uzbekistan hosted EBRD’s Annual Meeting and Business Forum in Samarkand, featuring 50 events attended by over 4000 delegates and resulting in 37 signings. Notably, EBRD passed resolutions supporting resilience and reconstruction in Ukraine, expanding the geographic scope of operations, and removing statutory capital limitations on ordinary operations. In relation to Uzbekistan, the EBRD extended loans of USD 23 million to Meros Pharm, USD 19,3 million to ACWA Power Wind Karatau for a 100 MW wind power plant, USD 49 million to deploy 100 electric buses in Samarkand, and USD 25 million to SQB bank to finance lending to SMEs.
2. PUBLIC POLICY
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