On the results of visit of the First Deputy Prime Minister of Russian Federation

Sergey Ivanov to Uzbekistan (July 3-4, 2007)

July 05, 2007

On July 3-4, 2007 the First Deputy Prime Minister of Russian Federation Sergey Ivanov visited the Republic of Uzbekistan.

The President of the Republic of Uzbekistan Islam Karimov received the First Deputy Prime Minister of Russian Federation Sergey Ivanov at Oqsaroy residence on July 4.

Uzbek and Russian leaders – Islam Karimov and Vladimir Putin – signed the agreement on strategic partnership in 2004 and the agreement on allied relations in 2005. These documents serve as a solid legal basis for the development of all-round mutually beneficial cooperation between two states.

Today the Uzbek-Russian relations are developing dynamically in all spheres. In particular, the volume of mutual commodity turnover grew by 42% and exceeded US$ 3 billion in 2006. The structure of exports and imports has expanded, and their volumes are growing. In 2006 Russia purchased over 1 million tonnes of agricultural products from Uzbekistan, which is 3 times more compared to 2005.

The trade and economic cooperation is developing in the spheres of mechanical engineering, wood processing industry, agriculture, power engineering, electrical engineering and pharmaceutics. Among the priority spheres of cooperation are oil-and-gas, mining, ferrous and non-ferrous metallurgy. Besides, there are perspectives in such fields, as telecommunications and software, production of building materials, chemical and textile industries, as well as tourism.

Investment cooperation is enhancing too. Currently, there are more than 450 joint ventures in Uzbekistan with participation of Russian investments, and nearly 300 enterprises with Uzbek capital are operating in Russia.

Cooperation is developing in military-technical spheres as well. Such interaction envisages supplies of military products, update of defense technology, staff training, carrying out joint exercises, drawing up interstate programmes on space exploration.

It should be noted that in connection with activation in the recent times of bilateral economic cooperation and in order to improve the activity of Uzbek-Russian intergovernmental joint commission on trade and economic cooperation, the presidents of two states have agreed to raise the status of this body. During the recent informal CIS summit in Saint Petersburg Vladimir Putin informed that the First Deputy Prime Minister Sergey Ivanov would be the co-chairman of this commission from the Russian side.

"This decision of the Russian leader is the evidence that Russia attaches great importance to the relations with Uzbekistan and strives for increase of cooperation rates," said President Islam Karimov during the meeting. "The Uzbek-Russian relations are developing intensively, the ties are based on mutual trust and the cooperation has great perspectives. The structure of your delegation also shows the desire of Russia to develop interaction with Uzbekistan. We believe that the results of negotiations held in Tashkent will be fruitful".

Sergey Ivanov noted that Russia considered Uzbekistan as one of its important partners in Central Asia, and main goal of the visit is consideration of new opportunities of further development of mutually beneficial ties. In particular, he emphasized that the sides had vast potential for further expansion of scientific-practical cooperation in the field of high-tech.

During the meeting sides changed with views on the development of bilateral relations, as well as on other issues of mutual interest.

At the same day First Deputy Prime Minister of Russian Federation S.Ivanov met with Prime Minister of the Republic of Uzbekistan Sh.Mirziyaev in International Business Centre in Tashkent.

Heads of ministries and agencies, companies and concerns, responsible for the spheres of foreign economic relations, finance, energy, oil and gas sector, tourism, transport communications, manufacturing of furniture participated bilateral talks in enlarged staff. Participants of the meeting noted that cooperation between Uzbekistan and Russia is developing gradually on the basis of the Treaty on allied relations signed in 2005 by the presidents of both countries I.Karimov and V.Putin.

Sides discussed perspectives of trade-economic relations, in particular, concerning long term cooperation in the field of fuel and energy complex and aircraft industry. Cooperation in fuel and energy sphere envisages development of industry infrastructure, geological survey and deposits development, transportation of energy resources. In aircraft industry two sides will jointly carry out manufacturing and export of airplanes.

Issues of widening of cooperation in researches of space, atomic energy, bank and financial and agricultural spheres were also discussed during the meetings.

First Deputy Prime Minister of Russian Federation especially noted that Uzbekistan is one of the leading states in Central Asia, stressed the interest of Russia in expanding the volume of investment to the economy of Uzbekistan.

At present times, economic relations between Russia and Uzbekistan is developing gradually almost in all directions, including aircraft building, motor-car construction, in the spheres of transport and communication, healthcare, pharmacy, food and wood working industry, agriculture, energy and electrical engineering. Cooperation in fuel and gas sphere is also developing between countries.

The sides also discussed the issues of cooperation in the fields of defense and security, as well as migration.

After the talks, the representatives of the governments of the two countries signed an agreement on labour activity and protection of the rights of citizens of the Russian Federation in the Republic of Uzbekistan, and the citizens of the Republic of Uzbekistan in the Russian Federation, on cooperation in counteracting illegal migration, and on readmission. They also signed a contract for the delivery of IL-76MF aircrafts to Jordan.

During the meeting with the mass media, Mr. Ivanov said the talks were efficient, and the documents signed would serve the interests of both countries.

"We are satisfied with the results of the talks," said First Deputy Chairman of the Russian Government. "We evaluate the market of Uzbekistan as positive and stable. Over the past few months, the volume of bilateral trade increased up to 46.9%. This is of course a good figure, but we understand it clearly that the potential has not yet been met. During the talks in Tashkent, we have agreed on the direction of additional investments in Uzbekistan."

Tashkent, Uzbekistan

July 5, 2007