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October 13, 2015


economy.. 2

Imports Substituted. 2

Uzbekistan to produce 18m tonnes of fruits, vegetables in 2015. 3


Uzbekistan improves procedures on allocation of land to businesspeople. 4


Unique Images. 4


Imports Substituted

Today, when many CIS countries are taking first steps towards the development of import substitution and localization of production, Uzbekistan has already achieved considerable progress. Over the past 15 years, the country has implemented over 2,500 projects amounting to more than $4 billion.

Uzbekistan has never been hesitating whether to develop its own industry, or import foreign goods. The logic of building a national development model suggested an obvious response: a country can hardly be effective and competitive in the current global economic model without reliance on its own production. It is important to realize that Uzbekistan did not try to establish the production of the whole list of products it needed – it would be impossible and unprofitable. Dozens of countries in the world produce best microchips, equipment and other products, the development of production of which would cost huge funds, but might not be better than the imported counterparts.

Domestic experts have done much to identify the list of products, which are most needed for the state, efficient and competitive. Unlike many countries, Uzbekistan did not close its borders for imports, seeing the competition as the main engine of innovation and development.

The integrated program of localization of production was developed and implemented in Uzbekistan in 2000. Since then on, the production of import-substituting products has increased more than 220 times over. Over the last decade alone, the share of localized production in the volume of industrial production has increased from 9.2% to nearly 20%.

Localized by domestic enterprises, the products are much more accessible pricewise than their imported counterparts, which is the main factor of success. That allows stimulating the domestic demand, and saturating the domestic market with quality goods. For instance, the enterprises not just saturate the domestic market with many types of products, but also export them. Uzbekistan exported 550 kinds of products worth more than $1 billion in 2014 alone.

As noted by experts of the Ministry of Economy, the annual publication of the list of products that enjoy stable demand and are recommended for the development by domestic enterprises, helps to mobilize private investments and coordinate efforts of all entities in the development of priority sectors of industry. As a result, enterprises have started production of more than 4,000 kinds of industrial goods in demand that substitute a total of $6.2 billion worth of annual imports.

The list includes highly demanded products like oil and gas equipment, dump trucks and cranes, industrial equipment, mini-equipment for food industry, modern polymers and plastics, potash fertilizers, electric motors, high-technology cables and wires, insulation materials, sports equipment, electrical equipment, energy saving lighting appliances, construction and decoration materials, textile, leather and footwear products, and much more.

Involvement of foreign investors and establishment of joint ventures in cooperation with the global technology leaders plays an important role in the development of national industry. For instance, a heavy truck plant in Samarkand region is partnered by the MAN Company, agricultural machinery enterprises cooperate with CLASS and Lemken companies, manufacturers of electrical appliances work closely with Toshiba, Candy, LG, Samsung and ZTE companies.

It is worth to mention a unique mechanism, which was specifically designed to stimulate the domestic demand, develop intra- and inter-industrial cooperation between enterprises at the International Industrial Fair and Cooperation Exchange. During the last year’s fair Uzbekistan concluded contracts for the delivery of goods in 2015 totaling over 8.6 trillion soums, which is 38% YOY (currency rates of CB RU from 13.10.2015   1$= 2649.22 soums).

The Program of Localization of Production of Finished Goods, Components and Materials for 2015-2019 has been a follow-up of the related policy. The Program envisages the implementation of 602 projects with the release of 1,225 new kinds of competitive import-substituting and export-oriented products within the next five years.

It is supposed to optimally load the capacity of metallurgical, chemical, mining, processing, construction, pharmaceutical and electrical industries to expand their logistical base. The implementation of 220 projects in this sphere would stimulate the development of small and private businesses to produce finished goods from domestic raw materials.

At the same time, the leading sectors of the economy will increase the share of local procurement. It is expected that the basic industries and infrastructures will reorient their procurement for domestic producers at nearly $5.7 billion by the end of 2019.

The Program of Localization envisages the implementation of projects in all regions of the country, and therefore, creation of new modern manufacturing facilities and jobs. The investors willing to implement such projects have been exempted from customs duties, single tax, income and property taxes in order to expand the scope of investment.

Experts expect that the program will produce an additional effect on import substitution in the amount of $3.5 billion per year and create more than 13,000 new jobs. It is estimated that by 2020 the total annual economic effect of localization program will exceed $13 billion, including $2.7 billion of exported goods.

(Source: «Uzbekistan Today» newspaper)

Uzbekistan to produce 18m tonnes of fruits, vegetables in 2015

Uzbekistan is planning to produce over 18 million tonnes of fruits and vegetables in 2015, including vegetables (53% from total volume), fruits (15%), potatoes (14%), melons and gourds (10%) and grapes (8%).

About 80% of products are directed to meet demand of population, 14% – to industrial processing, 3% – exported and 3% – for seeds.

Uzbekistan annually increases the volume of exports of raw and processed fruits and vegetables. The country exports products for US$1.3 billion – US$1.5 billion to over 40 countries.

In 2014, Uzbekistan started to export products to Italy (apricot kernels), Czech Republic (dried apricots, peanuts), Malaysia (mung bean), Vietnam (mung bean), Singapore (cherry and fresh apricots) and Lebanon (walnut).

It is worth to mention that fruits and vegetables account over 9% of exports of Uzbekistan and 50% of exports of small and private businesses.

Uzbekistan produced about 17.5 million of fruits and vegetables, including 9.3 million tonnes of vegetables, 2.5 million tonnes of potatoes, 1.7 million tonnes of melons and gourds, 2.5 million tonnes of fruits and 1.5 million tonnes of grapes. Uzbekistan increased production of fruits and vegetables by 9.2% year-on-year in 2013.

Samarkand (16.8% from total produced fruits and vetegables), Tashkent (15.5%), Andijan (12.9%), Ferghana region (8.7%), Surkhandarya (8.1%), Namangan (7.1%) and Bukhara (6.8%) regions produce the most fruits and vegetables in Uzbekistan.

Annually, Uzbekistan increases exports of fruits and vegetables, which increase revenue. If in 2010, Uzbekistan exported 690,500 tonnes fresh and dried fruits and vegetables, as well as beans and received US$1.2 million, in 2014 the country exported 611,900 tonnes of such products and received US$1.5 billion.

About 74% of exported products or 452,600 tonnes fell to share fresh fruits and vegetables, 13.4% or 82,300 tonnes – beans and 12.6% and 77,000 tonnes – dried fruits in 2014.

Uzbekistan mainly exports such products as grapes, melons, tomatoes, pomegranates, herbs, kale, apricots, beans, peaches, cherries, cucumbers, beans, mung bean, dried grapes, walnut and others.

Above-mentioned fruits and vegetables accounted about US$1.3 billion or 85% from total exports revenue in 2014.

Uzbekistan also expands geography of exports. If Uzbekistan exported fruits and vegetables to 39 states in 2013, the figure rose to 43 countries in 2014.

Main trade partners of Uzbekistan on export of fruits and vegetables are Russia, Kazakhstan, Afghanistan, Iran, China, Turkey, UAE, Azerbaijan, India, Iraq, etc.



Uzbekistan improves procedures on allocation of land to businesspeople

The Government of Uzbekistan approved measures on further improving procedures on allocation of lands based on competition for conducting business activities and order of receiving permissions for construction.

According to the resolution of the Cabinet of Ministers, main directions at realization of measures on further improving and optimizing all types of registration and permission procedures in construction, conducted by business entities, are:

– creating equal competitive conditions for business entities due to allocation of lands for business entities only based on competitive conditions;

– improving mechanism of issuing permission for production of construction-assembly works by territorial inspections of the state architecture-construction supervision of the State Committee of Uzbekistan on architecture and construction via introduction of notification order.

From 1 January 2016, Uzbekistan sets order, in line with which land areas for up to 1 hectare for business activities are allocated on competitive bases from 1 January 2016.

Council of Ministers of Karakalpakstan, administrations of regions and Tashkent city will coordinate work on timely formation of list of lands, offered to business entities.

The Government approved a regulation on order of providing land areas to legal entities and individuals for permanent use based on competitive bases to conduct business activities.

The regulation will not be applied to lands located at small industrial zones, special industrial zones, construction of road-side objects at Uzbekistan national highway, construction of concrete objects, envisaged in decision of the President and Cabinet of Ministers, etc.



Unique Images

Correspondents of ‘Uzbekistan Today’ were the first to see these unique images. Their finding at the archaeological site in Karakalpakstan was a really global sensation. 

We had already told about a discovery of a palace, related to the end III c. B.C.- early II c. A.D., made by members of the Karakalpak-Australian archaeological expedition at the Oqchakhon-Qala in Beruni district of Karakalpakstan, with unique wall paintings bearing human images. The researchers of the institute promised that the Uzbekistan Today reporters would be the first to be informed about details after the artifacts would have been photographed, restored and examined. And they kept their word – a photograph of the image was turned over to the editorial office and illustrates this article.

We asked Makset Karlybayev, director of the Karakalpak State Scientific-Research Institute of humanitarian Sciences, to comment on details related to this event:

“In the first place, I would like to note that the finding was made under the leadership and with the participation of our Institute’s professor Vadim Nikolayevich Yagodin, who, to our greatest regret, had passed away several months ago. Alison Betts, professor of the Sydney University, headed the expedition from the Australian side. Currently we continue excavation work at this unique monument and to study the wall paintings.”

The restored section enables to make some judgment about ritual ceremonies conducted in this hall of the local ruler’s palace. At the time the territory of the present-day Biruni district of Karakalpakstan was part of the ancient Khwarazmian state where Zoroastrism was widely spread out. We know little about the early Zoroastrism in Central Asia, and the wall-painting found on the site will enable us to learn more about this period.

About six meters high massive figures are visible in the wall paintings. The restoration workers have completed the examination of one of the images. It’s a man with a massive ornate crown on his head in the form of openings, which usually decorated the fortification towers. His costume’s collar is decorated with scenes with the participation of human figures and animals. He is wearing a tunic decorated with human figures with cock head masks: judging by everything, they symbolize the Zoroastrian clergymen. His trousers bear the recurrent pattern with long-leg and long-neck birds.

One of the expedition participants – Professor Frantz Grenet had identified the portrayed man as deity Srosh, who was called upon to avert the believers’ delusions and false intentions, warn them of the intrigues of evil forces and administer justice and mete out punishment over the evil spirits by night.

The researchers will have to restore several more such gigantic images. In this the restorers of the Scientific-Research Institute of Humanitarian Sciences are assisted by the French specialists.

Further examination of the found murals will enable to learn more about one of the greatest global religions of its time – Zoroastrism.

(Source: «Uzbekistan Today» newspaper)

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