Uzbekistan Update: April 15 - May 1, 2024
Uzbekistan Update: April 15 - May 1, 2024
Biweekly update on key developments in Uzbekistan
Notable Quotes
“Foreign investors will be exempt from taxes on dividends on shares for three years” - Shavkat Mirziyoyev President of Uzbekistan.
“We want to join Uzbekistan to the WTO and its decision-making system in order to shape the world economy together” Charlotte Adriaen EU Ambassador to Uzbekistan.
Special outlook on Uzbekistan:
During her visit to Uzbekistan on May 3, 2023, Sabrina Soussan, the global CEO of Suez, was interviewed by the Secretary General of EUROUZ. The interview was part of the "Letters to our Daughters" series - a collaboration project between EUROUZ & Daryo.uz, which features discussions with European business and policy leaders to inform & inspire the young generation in Central Asia. Mrs. Soussan shared insights on Suez’s strategies and future initiatives in Uzbekistan, and she also offered guidance and advice to young Central Asians based on her longstanding stellar career as a global leader.
UPCOMING EUROUZ & MEMBER EVENTS
May 14 – 16, 2024 - Uzbekistan Energy Forum 2024 (organised by EUROUZ members - Iteca Exhibitions)
EUROUZ and its partners’ members can benefit from special rates and promotions for all upcoming events organised by Iteca Exhibitions. For the Uzbekistan Energy Forum, special rates are available for participation in the exhibition, sponsorship packages, and attendance at the forum itself. Interested parties should contact the Secretariat by email for more information.
May 26-28, 2024 - Belgian Multisectoral Trade Mission to Uzbekistan
Organised by EUROUZ members: Wallonia Export & Investment Agency (AWEX) & Flanders Investment and Trade (FIT)
If you would like to meet any of the companies on the list, please get in touch with the EUROUZ secretariat as soon as possible via emailMay 29-31, 2024 - Austrian Multisectoral Trade Mission to Uzbekistan
Organised by EUROUZ members: AdvantageAustria
If you would like to meet any of the companies on the list, please get in touch with the EUROUZ secretariat as soon as possible via email
May, 28 | 15:00 – 17:00 (Tashkent time) - EY webinar: IFRS 17 Implementations
As of 1 January 2023, IFRS 17 came into force as a global accounting standard for insurance and reinsurance contracts, replacing interim standard IFRS 4. The new standard is extremely complex and requires granular data inputs and outputs, more complex modelling and reconciliations, more judgement to be applied, and more detailed analysis to support and explain results. For insurance and reinsurance companies the implementation of IFRS 17 was a long journey with many challenges along the way. The goal of the webcast is to summarize the most important lessons learned from the implementation of IFRS 17 in the areas of methodology, data, processes and technology.Format: Online
Language: Russian
Registration link.
EUROUZ & MEMBER NEWS
On May 3, 2024, EUROUZ members met Uzbekistan’s President following the Foreign Investors Council Plenary session, which he also chaired. Our members, Suez (France) and Linde (Germany), were represented by Sabrina Soussan, CEO, and Oliver Pfann, Senior Vice President of EMEA, respectively. It is the first time Uzbekistan’s President has met EU business leaders in such a format under the EU flag and by the initiative & in close coordination by EUROUZ.
May 2 - EUROUZ hosted a 'Breakfast with Business Leaders: Fostering EU-Uzbekistan Economic Alliances' event.
Over 110 top executives gathered on a sunny Tashkent morning to forge new pathways in trade, investment, and partnerships between Europe and Uzbekistan. EUROUZ is excited to announce that these gatherings will now become a regular feature for EUROUZ members for networking, knowledge exchange, and strategic discussions aimed at driving sustainable economic growth and strengthening ties between the EU and Uzbek markets. Press release | Gallery
The meeting was devoted to welcoming Association’s members to reflect on past achievements, address current challenges, and set a forward-looking agenda for enhanced cooperation. The meeting featured keynote speeches by EUROUZ Board members, presentation by EUROUZ Secretary-General, reports by the chairpersons of current committees: Healthcare&Life Sciences (Zafar Vakhidov), ESG&Compliance (Natalya Pischaeva), HR&Capacity Building. Establishment of the Advisory Board, featuring leaders of European economic chambers to enhance cooperation was endorsed by transparent voting of EUROUZ members.
| Press release |
April 25th - EUROUZ ESG & Compliance Committee round table
EUROUZ ESG & Compliance Committee organised an open roundtable on the collaboration across private and public sectors in ecology & the environment, held in partnership with the Institute for Macroeconomic and Regional Studies, the Development Strategy Center & Center for Progressive Reforms. By creating a totally new event framework for Uzbekistan, bringing together government policy centres & pivotal stakeholders from both the public and private sectors, EUROUZ committees aim to promote a better dialogue, bridge gaps in information sharing, and jointly generate a sustainable impact on the development-specific sectors where our committees are active. The event has gathered approximately 40 participants. Become a EUROUZ member to join the ESG-C Committee dialogue.
April 16th - EUROUZ Healthcare & Life Sciences Committee round table
EUROUZ Healthcare & Life Sciences Committee, in partnership with the Center for Progressive Reforms & Development Strategy Center, held an open roundtable on the development of the pharmaceutical sector in Uzbekistan. This event gathered local regulators, state agencies, representatives from Uzbekistan's legislative chambers, EU diplomatic missions, and over 20 European companies to discuss the challenges European companies face in Uzbekistan, creating a direct dialogue between the stakeholders. The event has gathered over 60 participants. Become a EUROUZ member to join the H-LS Committee dialogue.
EUROUZ Member Voltalia signed a MOU with the Ministry of Energy.
In the framework of Tashkent International Investment Forum, Voltalia signed a Memorandum of Understanding with the Ministry of Energy for 500 MW Standalone Storage System in Uzbekistan.
A new economic chamber, "Uzbekistan - France," was recently launched in Tashkent, and over 50 French companies and their Uzbek partners were involved.
Established during President Macron's visit in 2023, it aims to enhance cooperation in key sectors like agriculture, mining, energy, and tourism.
The event spirited discussions concerning the trajectory of Uzbekistan's capital markets and the opportunities for foreign investments and initial public offerings (IPOs). Gratitude is extended to the esteemed speakers whose expertise enriched the discourse, with particular appreciation to Avesta and Karen Srapionov for their instrumental role in organizing this notable gathering. Their commitment exemplified the robust and dynamic environment of Uzbekistan's capital markets.
The EBRD and Uzbekistan have agreed to collaborate on preparing Asakabank for privatisation. At the 3rd Tashkent Investment Forum, parties signed an agreement focusing on institutional transformation and corporate governance reform within the bank. The EBRD will offer pre-privatization support through recommendations, knowledge-sharing, technical assistance, and potentially an equity investment. This initiative aligns with President Mirziyoyev's announcement regarding Asakabank's privatisation.
The EUROUZ members have voted to make our market reports paid for all non-members as of June 2023. We are testing the new method, which is already starting this month.
Did you know that EUROUZ members and ALL their employees can access the Uzbek.Review portal free of charge as long as their organisation remains a member?
Not a member yet?
Join EUROUZ to access exclusive market support for your business activities in the country.
Table of contents of this Uzbek.Review report for paid subscribers & members:
1. INTERNATIONAL COOPERATION
1.1 EUROPE
1.2 CENTRAL ASIA & CAUCUSES
1.3 RUSSIA & CHINA
1.4 MIDDLE EAST, EAST ASIA & SOUTH-EAST ASIA
1.5 INTERNATIONAL ORGANIZATIONS
2. PUBLIC POLICY
3. LEGISLATION
3.1. LEGISLATIVE CHANGES
3.2 APPOINTMENTS
4. ECONOMY
4.1 KEY ECONOMIC INDICATORS, LOANS, & PUBLIC FINANCE
4.2 BANKING & FINANCE
4.3 AGRICULTURE, MINING, & MANUFACTURING
4.4 CONSTRUCTION & REAL ESTATE
4.5 TRADE AND BUSINESS
4.6 ENERGY & PETROCHEMICALS
5. USEFUL LINKS AND NOTABLE PUBLICATIONS
1. INTERNATIONAL COOPERATION
1.1 EUROPE
Uzbekistan to receive €20 million from EU for agricultural reforms
The European Union has granted €6 million to Uzbekistan to enhance its agricultural sector as part of the National Strategy for Food Security and Healthy Eating. This funding aims to develop a market-oriented and sustainable agricultural and food sector. Additionally, the Ministry of Agriculture has received technical support for planning agricultural reforms. This effort is part of a broader EU assistance program that has allocated €76 million to Uzbekistan since 2021.
Uzbekistan, UK Foreign Ministers Ink Comprehensive Cooperation Declaration
The Minister of Foreign Affairs of Uzbekistan and the Foreign Secretary of the United Kingdom discussed strengthening bilateral relations during their meeting. They focused on enhancing economic ties and deepening cooperation in education, acknowledging the UK's support in these areas. Additionally, they signed a Declaration on Comprehensive Cooperation and a Memorandum of Understanding to boost collaboration in regional, international relations, and infrastructure sectors.
Volkswagen, Volvo Extend Work Opportunities to Citizens of Uzbekistan in Slovakia
Volkswagen and Volvo in Slovakia are actively recruiting citizens of Uzbekistan, with Volkswagen seeking up to 240 specialists monthly for roles in car production and testing, and Volvo hiring up to 150 truck drivers each month. Applicants require knowledge of Russian and, for Volvo, a C and E category driver's license. Salaries range from 1,200 to 1,600 euros at Volkswagen and 1,700 to 2,400 euros at Volvo. The Ministry of Employment and Poverty Reduction of Uzbekistan, along with the Agency for External Labor Migration, will provide support including compensation for certification costs and assistance for labor migrants abroad.
Uzbekistan Bolsters Transport and Logistics Partnership with Hungarian Waberer's
The head of "Centrum Holding" and the CEO of Waberer's met in Hungary to discuss enhancing transport and logistics cooperation, particularly focusing on air transport between Uzbek cities and European countries. They reviewed the use of their respective warehouse terminals in Tashkent, Angren, Andijan, and various European locations. The meeting concluded with an agreement to sign a document to strengthen and deepen their collaborative efforts.
French Axens to Assist Bukhara Oil Refinery in Modernization to Cease AI-80 Gasoline Production
Axens, a French company, will assist in the modernization of Uzbekistan's Bukhara Oil Refinery, owned by Uzbekneftegaz, to phase out AI-80 gasoline and produce high-octane AI-92 and AI-95 gasoline, compliant with Euro-5 standards. The project, set for 2024-2025, includes the construction of several process units and aims to enhance the refinery's capacity for producing environmentally friendly fuel. Additionally, design and construction will occur simultaneously under a licensing agreement with Axens, which also includes training and design documentation development.
Uzbekistan, Netherlands Deliberate Bilateral Cooperation in Trade, Economy, and Investment
During the recent Uzbek-Dutch political consultations in Tashkent, the focus was on enhancing political dialogue, boosting trade-economic and investment cooperation, and developing inter-parliamentary and cultural ties. Key discussions included expanding partnerships in the textile and agricultural sectors and increasing bilateral trade. The parties also planned for upcoming bilateral and interregional events, including those in the "Central Asia – European Union" format, and reviewed other regional matters.
Uzbekistan, Hungary Hold Talks on Human Rights Protection
1.2 CENTRAL ASIA & CAUCUSES
Uzbekistan and Tajikistan forge $135 million investment path
Uzbekistan and Tajikistan are significantly enhancing their economic ties, aiming to increase their bilateral trade turnover to $2 billion. This follows a threefold increase in trade to $750 million, with a 40% rise just this year. The Uzbek-Tajik Investment Company, established in September 2021, is set to implement 14 projects worth $135 million to further economic collaboration. Notable initiatives include the development of a trade zone and a logistics center at the border, and the construction of two hydroelectric power stations in Tajikistan. The sectors targeted for growth include metallurgy, renewable energy, machinery manufacturing, and the agro-industrial complex. A business forum in Dushanbe has led to the signing of key documents, setting the stage for a detailed implementation roadmap for these projects.
Uzbekistan signs export contracts worth $44 million with Afghanistan
During a three-day visit by Afghan business delegates to Uzbekistan, an agreement was reached to establish an Uzbek-Afghan Business Council, involving representatives from 18 top Afghan companies. This council aims to bolster business relations and increase Uzbekistan exports to Afghanistan, where there is a significant demand for agricultural products, foodstuffs, textiles, leather goods, electrical appliances, and building materials. During the visit, contracts valued at $44 million were signed with Uzbek companies, tapping into Afghanistan's annual import market of $7 billion. This initiative is expected to enhance collaboration, facilitate new business platforms, and attract foreign investments.
Uzbekistan, Kazakhstan, Azerbaijan Plan Caspian Sea Subsea Cable Installation
The energy ministers of the three countries recently approved a preliminary feasibility study for the project, which may include input from international consultants to assess the technical and economic aspects. They also signed a memorandum of cooperation for the interconnection of their energy systems, focusing on the development of a business model for international transmission corridors. This model will address financing, revenue flow, and ownership issues related to selling green energy to the EU. The project, which has been under discussion since last November, aims to establish a new energy route that leverages the green electricity potential of these nations.
Uzbek-Kyrgyz Working Groups Meet in Namangan to Address Demarcation Issues
1.3 RUSSIA & CHINA
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