American-Uzbekistan Chamber of Commerce
Business Newsletter


Week in Review:

January 13, 2012 - January 20, 2012  


In this issue
AUCC in Brief
President Calls to Raise Competitiveness of the Uzbek Economy
Kyrgyzstan to Buy Gas from Kazakhstan and Uzbekistan at $224 and $290 per Thousand Cubic Meters Respectively
The Scramble for Natural Resources in Central Asia
World Bank Projects Global Slowdown, with Developing Countries Impacted
Uzbekistan to Receive $3.2 bln of Foreign Investments in 2012
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AUCC Members
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AUCC in Brief 

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan. 

President Calls to Raise Competitiveness of the Uzbek Economy of 1/20/2012     


Uzbekistan plans to implement a programme on primary measures one expanding the volume of production and launching production of competitive goods for US$6.2 billion in 2012-2016, the President of Uzbekistan Islam Karimov said at the session of the Cabinet of Ministers of Uzbekistan.

On 19 January, the session of the Cabinet of Ministers of Uzbekistan was held in Tashkent, which discussed social-economic development of Uzbekistan in 2011 and important priorities of economic programmes for 2012.

Uzbek leader underlined that the government should pay attention to preparation and implementation of the programme on increasing competitiveness of economy of Uzbekistan. He said that Uzbekistan's goal is to become one of developed democratic countries in mid-term.

President said that it is impossible to achieve this goal without creating competitive economy and competitive country. He said that it is impossible to achieve it without implementation of the adopted Concept on deepening democratic reforms and forming civil society in the country.

He said that this is also connected with deepening of crisis, decreasing global demand and increasing competition at the global markets. Uzbek leader stated that global experience showed that the competitiveness cannot be achieved without reforming and diversifying economy, developing high-technologic enterprises and capacities.

Islam Karimov said that in line with the adopted programme on primary measures one expanding the volume of production and launching production of competitive goods will be implemented 270 investment projects with total cost of US$6.2 billion in 2012-2016, including industrial programmes on modernization and re-equipment of production capacities.

He said that Uzbekistan plans to realize several strategic projects in 2012, including launch of construction of Ustyurt Gas Chemical Complex, the second line of Dekhanabad Potash Fertilizers Plant, etc.

Kyrgyzstan to buy gas from Kazakhstan and Uzbekistan at $224 and $290 per thousand cubic meters respectively of 1/20/2012     


Since October 1, the gas price for consumers has decreased in Kyrgyzstan and totaled 12,609 soms per cubic meter for the population and 16,311 soms per cubic meter for industrial enterprises.
Kazakhstan has set the natural gas price at 224 US dollars per thousand cubic meters for Kyrgyzstan while Uzbekistan has set it at the level of 290 US dollars, according to Tazabek news agency. The cost of natural gas is set by Uzbekistan for the first quarter of 2012, whereas Kazakhstan's price is valid until April. of 1/19/2012    


"...Uzbekistan has significant natural gas reserves, about 0.8% of the world's total - about the same amount as Libya - and sizeable gold, copper, lead and uranium reserves. It's also the most populous 'Stan', with 26 million people. That's more than enough to get less resource-rich nations envious. But geologists believe there is a lot more commodity wealth yet to be discovered in the Stans. Dr David Robson, chief executive of Tethys Petroleum, a small London-listed firm operating in central Asia, believes the region's Soviet past has left some areas underexplored. "We have just made a find in Tajikistan. In Soviet times Tajikistan was a rural part of the economy and not thought of as a source of oil and gas, but we believe it has similar geological traits to other hydrocarbon-rich parts of the region."  Full article is here.   
World Bank Projects Global Slowdown, with Developing Countries Impacted of 1/18/2012     


Developing countries should prepare for further downside risks, as Euro Area debt problems and weakening growth in several big emerging economies are dimming global growth prospects, says the World Bank in the newly-released Global Economic Prospects (GEP) 2012.

The Bank has lowered its growth forecast for 2012 to 5.4 percent for developing countries and 1.4 percent for high-income countries (-0.3 percent for the Euro Area), down from its June estimates of 6.2 and 2.7 percent (1.8 percent for the Euro Area), respectively. Global growth is now projected at 2.5 and 3.1[1] percent for 2012 and 2013, respectively.

Slower growth is already visible in weakening global trade and commodity prices. Global exports of goods and services expanded an estimated 6.6 percent in 2011 (down from 12.4 percent in 2010), and are projected to rise by only 4.7 percent in 2012. Meanwhile, global prices of energy, metals and minerals, and agricultural products are down 10, 25 and 19 percent respectively since peaks in early 2011. Declining commodity prices have contributed to an easing of headline inflation in most developing countries. Although international food prices eased in recent months, down 14 percent from their peak in February 2011, food security for the poorest, including in the Horn of Africa, remains a central concern.

"Developing countries need to evaluate their vulnerabilities and prepare for further shocks, while there is still time," said Justin Yifu Lin, the World Bank's Chief Economist and Senior Vice President for Development Economics.

Developing countries have less fiscal and monetary space for remedial measures than they did in 2008/09. As a result, their ability to respond may be constrained if international finance dries up and global conditions deteriorate sharply.

To prepare for that possibility, Hans Timmer, Director of Development Prospects at the World Bank, said: "Developing countries should pre-finance budget deficits, prioritize spending on social safety nets and infrastructure, and stress-test domestic banks."

While prospects in most low-and middle-income countries remain favorable, the ripple effects of the crisis in high-income countries are being felt worldwide. Already, developing country sovereign spreads have increased 45 basis points on average and gross capital flows to developing countries plunged to $170 billion in the second half of 2011, compared with $309 billion received during the same period in 2010.

"An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09" said Andrew Burns, Manager of Global Macroeconomics and lead author of the report. "The importance of contingency planning cannot be stressed enough."

The full report and accompanying datasets are available at of 1/17/2012  

Uzbekistan plans to receive $3.198 billion of foreign investments on implementation of 144 projects in 2012, in accordance with the Investment Program approved by the President Islam Karimov.

Some $900.7 million from on the implementation of 47 projects and $2.297 billion on implementation of 97 projects is planned to receive through foreign loans guaranteed by the government from the total investment.

From the total amount of foreign loan investments planned for familiarization, $900,7 million on 47 projects are planned for development through foreign investments under the government, and $2.027 billion on 97 projects through direct foreign investments.

It's also planned to direct $2.027 billion of foreign investments ($1.789 billion of which are direct) to new constructions, $665.2 million (271.6 million - direct) to modernization and upgrading of existing facilities, $557 5 million ($321 million - direct) to other areas.

The largest volume of foreign investments, $2.268 billion ($1.935 billion from direct investments of foreign companies) is planned to direct to the project of the basic industries - fuel and energy sector, geology, metallurgy, chemical and petrochemical industries.

The consortium of Korean companies will continue the construction of Ustyurt gas-chemical complex at Surgil deposit in north-west of the country worth $ 3.5 billion which was launched on Aug 2011. The design capacity of GCC is meant to process 4.5 billion cubic meters of gas, production of 400 thousand tons of polyethylene and 100 thousand tons of polypropylene per year. It is planned to allocate $420 million, along with assets, of the consortium ($300 million) to the construction of GCC.

It is planned to direct $607.6 million of Chinese CNPC and the China State Development Bank investment to the construction of the third string of the Uzbekistan - China gas pipeline with capacity of 25 billion cubic meters of gas per year and total project cost of $2.2 billion in 2012.

The Russian Lukoil will invest $520 million in implementation of two PSAs in Uzbekistan worth $4.3 billion in 2012.

Uzbekistan GTL with the participation of NHC Uzbekneftegaz and Sasol of South Africa will provide $110 million construction of synthetic fuel producing plant (GTL - gas to liquid process) in Kashkadarya in the south of the provisional value of $3.7 billion.

Malaysia's Petronas will continue to develop hydrocarbon deposits in two PSA with cost of $2.07 billion in 2012. The company invests $40 million in developing of Ustyurt and in Surkhandarya field.

Singapore Indorama Group will begin the construction of gas processing facility on the basis of Mubarek Gas Processing Plant in the south, worth $1.64 billion. The investor will direct $50 million to the project.

Foreign companies plan to invest $146.8 million in exploration work in 10 projects in 2012.

In particular, Gazprom will invest $32.5 in completing exploration work in Ustyrt province with a total amount of investment worth $400 million in 2012.

Chinese CNODC will start active phase of development of Mingbulak field in Namagan province worth $211.7 million. The investor plans to invest $30 million to carry out planned work in 2012.

In Energy sector, it is planned to receive $169.7 million due to foreign loans given under government's guarantee.

In particular, Chinese Sino Coal International Engineering will complete modernization of strip mine Angrenskiy due to the Chinese Eksimbank loan worth $113.8 million.

Uzbekenergo will continue construction of power transmission line (500KW) Talimarjan thermal power-station - Sogdiana substation through the loan of the World Bank worth $110 million, and it will also start construction of power transmission line (500KW) Syr Darya thermal power-station - Novo-Angren thermal power-station through the loan worth $60 million of the Chinese Eksimbank. Some $60 million will be spent for these projects in 2012.

In 2012 Uzhimprom enterprises will receive $206.8 million including $109.2 million of foreign investment and Uzavtoprom - $257.6 million including $64.9 million of foreign investments.

Under the development of Uzbekistan's textile industry foreign investors according to the program plan to invest $87.6 million on 14 projects worth $302 million.

Some $539.2 million, including $142.9 million of foreign investment, is planned to be invested in municipal projects, transport sector, capital construction and building industry.

Mobile phone operators plan to invest $118 million in telecommunications in 2012. In particular, Unitel Ltd. (subsidiary of VympelCom Ltd.) will invest $63 million in network development, Coscom Ltd. (controls TeliaSonera) - $35 million and Uzdunrobita (subsidiary of the Russian MTS) - $20 million.

It was reported earlier that Uzbekistan planned to receive foreign investment worth $3.013 billion on 113 investment projects in 2011.

Volume of investment rose by 1.3 times hitting $2.8 billion. The direct investment also grew by 1.4 times to hit $2.4 billion in 2010.

According to the official statistics, total volume of investment in fixed assets reached $7.2 billion in January-September 2011. The total share of foreign investment was 20.4 percent ($1.469 billion compared to $1.92 billion in January-September 2010).

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Contact Information


The American-Uzbekistan Chamber of Commerce
1300 I Street, N.W., Suite 720W
Washington, DC 20005
phone: 202.509.3744
[email protected]  






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