Uzbekistan acceded to the Cape Town Convention and Protocol on aviation equipment

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February 2, 2018

Uzbekistan acceded to the Cape Town Convention and Protocol on aviation equipment

The Cape Town Convention is a significant leap forward in the field of international aviation law. It implies an international guarantee and is a unique means of protecting creditors and lessors of aircraft, aircraft engines and helicopters. At present, 73 countries are the states-participants of this Convention: Great Britain, Germany, Italy, China, USA, Turkey, Switzerland, Russia, Kazakhstan, Tajikistan, etc. After the signing on December 28, 2017 by the President of Uzbekistan of the Law “On Accession of the Republic of Uzbekistan to the Convention on international guarantees for mobile equipment (Cape Town, November 16, 2001), and Uzbekistan entered into the Protocol to this Convention on Aviation Equipment. Prior to this, the law was adopted by the lower house of parliament on December 6, 2017 and approved by the Senate of the Oliy Majlis on December 20, 2017.

The Convention provides for the formation of an international system for registration of rights to aviation technology – the international registry. Accordingly, contracts concluded by companies from Uzbekistan on the acquisition of aircraft equipment, firstly, will be registered in this international register, and secondly they are provided with an international guarantee that will facilitate the financing of expensive aviation techniques and reduce the risks of leasing and credit operations.

In addition, the international regime established by the Convention and the Protocol is designed to reduce the risk of creditors and, consequently, the cost of credit, which in turn will increase the possibility of obtaining financing for the acquisition and operation of aircraft (aircrafts and engines) by companies in developing countries.

It should be noted that the law on accession of Uzbekistan to the Convention and the Protocol contains five statements of Uzbekistan, made in view of the international experience of the states that have joined to the Cape Town documents.

Accession of Uzbekistan to the Convention and application of its norms will simplify the system of financing expensive aviation equipment, including aviation facilities, providing preferential terms and additional discounts.