“Investment portal of Uzbekistan”

Citizens of 76 countries will be able to get an electronic visa to Uzbekistan (List)

Uzbekistan announces visa waiver for citizens of 45 countries (List)

Important Visa Information for Indian Citizens Travelling to Uzbekistan

September 3, 2015


economy.. 2

Advantageous Mechanism.. 2

Thread to Thread. 2

transport.. 3

High-Speed Plans. 3


Legal aspects of commodity exportation by manufacturers from the Republic of Uzbekistan via trading houses abroad. 4

International cooperation.. 5

Investment Platform.. 5


Advantageous Mechanism

The aggregate portfolio of leasing operations in Uzbekistan has increased by 18.8% and reached 2.35 trillion soums in the first half of 2015. (currency rates of CB RU from 03.09.2015 1$= 2601,06 soums )

Since the beginning of the current year, leasing companies have concluded 3,427 new transactions, their volume exceeded 422 billion soums. The list of leased objects is dominated by manufacturing equipment: its share in the total structure of transactions amounted to 34.1%. It is followed by farming equipment with 33.5%, automobile transport – 19.1%, and real estate – 13.3%.

Uzcelhozmashlizing (133.1 billion soums), Uzmeliomashlizing (41.1 billion soums), Uzbek Leasing International AO (35 billion soums) and O’zavtosanoatlizing (26.3 billion soums) rank among the biggest market participants. Tashkent has taken the lead in the new leasing transactions in the first half of 2015 with 21.28%, Samarkand and Tashkent region ranked the second and third with 8.84% and 8.03% respectively.

(Source: «Uzbekistan Today» newspaper)

Thread to Thread

On the threshold of the 24th anniversary of Uzbekistan’s independence, O’zbekengilsanoat Company is planning to build 18 new enterprises totaling $99 million. They will provide more than a thousand jobs.

The list of priorities of the O’zbekengilsanoat includes the further development of the textile and light industry through the establishment of modern full cycle complexes, as well as new manufactures of synthetic fibers and yarn for the development of the garment industry jointly with O’zkimyosanoat Company. For instance, the company has launched a project on the establishment of the textile technology park in Tashkent jointly with South Korean partners.

It will be located next to the Tashkent Institute of Textile and Light Industry, and will be equipped with the latest technologies. The research on creation of new types of synthetic fabrics will be a priority. $15 million is the estimated amount of investment. On the Korean side, the project is partnered by the Ministry of Commerce, Industry and Energy of the Republic of Korea, the Korea Institute of Science and Technology.

The working group is to deal with projecting, design and equipment specification. The start of construction works is scheduled for next January.

As noted by the company’s representative in his interview with Uzbekistan Today, a tender for the design of the technology park was announced in South Korea in July. The winners will be announced by the end of September. The adaptation of the project to local legislation and negotiations with Uzbek engineering organizations will start upon the arrival of the delegation from Korea.

Over $2.2 billion of investments have been channeled and more than 180 big projects implemented in the industry over the years of independence. The industry enterprises currently employ more than 70,000 people.

The establishment of the new joint venture Indorama Kokand Textile on the basis of Kokand Textile Mill ranks among the most significant projects. The project cost exceeded $110 million, and production capacity – 29,000 tons of yarn per year. The creation of Uztex group of companies on the production of 12,000 tons of cotton yarn per year in the Khorezm region jointly with Capital Suisse (Switzerland) is another ambitious initiative worth $50 million.

The introduction of high-performance advanced technologies in the industry has entailed the increase in exports: over the years of independence, the index rose by 120 times, and at the end of 2014 reached the level of $1 billion against $7 million in 1991. The domestically manufactured light industry articles are exported to 50 countries.

(Source: «Uzbekistan Today» newspaper)


High-Speed Plans

Uzbekistan Railways’ rapid run has been in progress. A high-speed railway traffic was launched on the 140.8 km Marakand-Karshi section. Passengers can now get from Tashkent to the southernmost point of the republic on a comfortable Afrosiab train in just three hours.

Six years ago, domestic railroad workers projected the construction of Central Asia’s first high-speed railway on the route Tashkent-Samarkand. The implementation of this ambitious project required the most advanced technologies and equipment, as well as highly qualified staff. Moreover, Uzbek specialists had no experience in creating steel highways of this kind.

The road was built in the shortest possible time: two years. The workers did a truly unique job – they built the entire infrastructure for the operation of modern locomotives of the Spanish company of Talgo, built and reconstructed the tracks and stations, upgraded the contact network. The whole activity was focused on one goal – on the creation of a highway that would meet all the respective international standards and requirements. It was successfully completed.

Consisting of two locomotives, eight passenger carriages and a dining car, the modern train has turned into the most comfortable and reliable railway transport in Uzbekistan. The train has carried more than 600,000 passengers since the commissioning of the railway line. The number will undoubtedly increase, because the line was extended to Karshi.

The total cost of the project exceeds $324 million, of which $110.9 million was invested by the company from its own funds, $100 million was invested by the Asian Development Bank, and the rest was channeled from the government budget. Previously, the Tashkent-Karshi train ran the distance of 511 km in six hours, while today the travel time by the Talgo trains has been reduced to three hours, and four hours by O’ZEL series trains imported from China.

An advanced operator control and automated system of calculating energy consumption ensure the secure and uninterrupted traffic on electrified sections. Marakand-Ayritom and Ayritom-Kashkadarya sections have been equipped with modern microprocessor-based semi-automated locking systems.

The implementation of the large-scale project would provide comfort and speed to not just residents and guests of Uzbekistan, but also to transport companies. The new line will ensure significant economic benefits for Uzbekistan Railways as well. Freight transportation is expected to improve the financial performance by reducing travel time and operation costs. The advantage of improving the region’s environment is another important factor, since now the company refuses diesel that emits harmful substances into the atmosphere.

It would be right to mention the selfless work of railway workers, who have been actively working on the construction and electrification of the line over the past three years. The construction of the Marakand-Karshi section involved nearly 20 industrial enterprises, over 100 skilled workers and employees, modern construction and installation technologies.

There is another important point to mention. Some five years ago, all the supplies for the construction were imported from abroad. To date, the production of all necessary spare parts for the construction of contact networks has been established in Uzbekistan under the Localization Program. There are new railroad projects ahead: there are plans afoot to launch a high-speed line to Bukhara by September next year.

(Source: «Uzbekistan Today» newspaper)


Legal aspects of commodity exportation by manufacturers from the Republic of Uzbekistan via trading houses abroad

The majority of Uzbek entrepreneurs or companies lack specialists with practical experience and professional background in the field of foreign trade. That’s why they are recommended to apply for assistance to foreign trade organizations of the Ministry of Foreign Economic Relations, Investments and Trade and sectoral departments, specializing in export-import operations and enjoying the high-calibre personnel with a wealth of experience in the international commerce domain. They have at their disposal vast swathes of constantly updated information on requests made by potential investors and the supply and demand situation in the world marketplace.  What’s more, they closely cooperate with many foreign companies, firms and banks and run their own trading houses and representative offices abroad. All these factors make the indigenous foreign trade organizations reliable partners for small and medium-sized businesses in such a vital process as the establishment of business contacts with overseas enterprises, which are interested in Uzbek exports.

The geographical remoteness of the Republic of Uzbekistan from the main markets is also one of the objective impediments on the way of developing the successful exports activity. And it is not only the significant transportation-related expenses they have to bear, but also the very duration of transportation that significantly affect this activity. Very often, both the quality and the price of domestic goods suit importers, but they cannot wait for their delivery for a long time and have to refuse the conclusion of a contract for a given reason. Another hindrance is a reluctance or non-readiness of many importers to open a letter of credit, provide a bank guarantee or accomplish the pre-payment for goods, which will be en route within several weeks after their dispatch from Uzbekistan. It goes without saying that these types of payment diminish the risks for indigenous exporters, but at the same time they quite often fail to sign profitable contracts, especially with reliable and tried importers.

One of the ways to overcome all these obstacles is the decentralized exportation of goods by local firms, with the delay of payment: (a) for the term of up to 60 days from the date of customs registration, on condition that an export contract is protected by the insurance policy against political and commercial risks or a bank guarantee (180 days from the date of actual commodity exportation – for small businesses and private entrepreneurs exporting their produce for foreign currency without performing any pre-payment, opening a letter of credit and providing a bank guarantee, on condition that an export contract is protected by the insurance policy issued in accordance with the established procedure); (b) for the term of up to 180 days from the date of customs registration through the mediation of Uzbek enterprises abroad.

The main information about the exportation of goods via Uzbek enterprises abroad

Organizations that fall into the “enterprises abroad” category:

– Trading houses, representative offices (including those set up without the formation of legal entity status) and enterprises founded by economic establishments of the Republic of Uzbekistan in foreign countries;

– Trading-investment houses of the Chamber of Commerce and Industry of the Republic of Uzbekistan.

Commodities exported by enterprises:

– Goods exported under a consignment agreement (contract) and other agreements;

– Samples of goods, as well as property exported by enterprises for their own needs.

A written application sent to customs authorities is considered to be the ground for exportation.

Documents to be presented to customs authorities are the same as those required to be submitted by ordinary exporters, with the exception of a letter from the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan asking to enter the applicant in the “enterprises abroad” category.

Categories of exporters entitled to export goods to enterprises abroad:

– Exporters, which are members of the Chamber of Commerce and Industry – when exporting goods of their own production to the Chamber’s trading-investment houses;

– Exporters – when exporting goods of their own production to enterprises abroad, with the exporters’ share of the latter’s charter capital amounting to no less than  51 per cent;

– Enterprises, which are structural sub-divisions of ministries, departments, associations and companies  – when exporting goods to a corresponding enterprise abroad, whose charter capital contains a no less than 51 per cent share of a respective ministry, department, association or company, as well as their specialized foreign trade firms and companies;

– The State Joint-Stock Foreign Trade Company Uzmarkazimpeks, the State Joint-Stock Foreign Trade Company Uzprommashimpeks, the State Joint-Stock Foreign Trade Company Markazsanoatexport, the State Joint-Stock Foreign Trade Company Uzinterimpeks, the State Joint-Stock Company Uzvneshtrans or the State Joint-Stock Company Urta Osiyo Trans – when exporting goods to enterprises abroad, with the exporters’ share of the latter’s charter capital coming to no less than 51 per cent.

In the course of 180 days from the date of customs registration, the exporter should ensure the entry of currency receipts to a bank account for the goods it has exported under agreements (contracts) to enterprises abroad or should return these goods to the territory of the Republic of Uzbekistan.

Consequences of non-payment for exported goods

– The return of exported goods to the territory of the Republic of Uzbekistan. The exporter that delays the entry of currency receipts from abroad to a bank account for more than 30 banking days (60 days – in the case of small businesses and private entrepreneurs), is subject to the imposition of the following sanctions by tax authorities after the expiry of the specified date:

  1. a) The equivalent of 10 per cent of the sum of currency receipts that the exporter has failed to enter to a bank account – when the delay reaches 180 days since the specified date;
  2. b) Additionally, the equivalent of 20 per cent of the sum of currency receipts that the exporter has failed to enter to a bank account – when the delay ranges from 180 days to 365 days since the specified date;
  3. c) Additionally, the equivalent of 70 per cent of the sum of currency receipts that the exporter has failed to enter to a bank account – when the delay exceeds 365 days since the specified date.

(Source: «Business» newspaper)

International cooperation

Investment Platform

Tashkent is getting prepared to host a big international investment forum in the second decade of October.

The event will chiefly focus on broad presentation of the new privatization program of Uzbekistan to the potential foreign investors. For instance, the strategic foreign investors will be offered to buy government stakes in large companies. It is also planned to involve some international assessment organizations in independent assessment.

The process of organization of the forum will involve the leading financial institutions. The respective agreements have been already concluded with the International Finance Corporation.

(Source: «Uzbekistan Today» newspaper)

Reference to the source is a must in reproducing materials