American-Uzbekistan Chamber of Commerce
Business Newsletter

 

Week in Review:


March 9, 2012 - March 16, 2012  

 

In this issue
AUCC in Brief
James Appathurai, the NATO Deputy Assistant Secretary General, on Central Asia partnerships
Chevrolet Spark named the Runet's best car of 2011
Uzbekistan plans to attract US$3.3bn of foreign investments
The 16th Uzbekistan International Oil and Gas Conference and Exhibition (OGU 2012)
Contact Us
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. 

http://www.atlantic-community.org of 3/16/2012      

  

Question: How does cooperation with NATO contribute to security and stability in Central Asia? What is the proper role for the Alliance in that region?

 

James Appathurai: It's a good question, and coming from Russia an even better question. Because there are many who look at Central Asia as a sort of battleground between the West and Russia. An area in which we are competing for influence. And I would quite strongly reject that analogy or that assessment.

We have common interests in Central Asia. And I mean common with the Central Asian countries and NATO, and common between all three if we include Russia as well. And I could list them for you.

First, is stability in Afghanistan. It is vital for all of us that Afghanistan does not once again begin exporting terrorism, extremism, or continue to export drugs, which of course hit Russia but hit all of us as well. So we have an interest in stabilizing Afghanistan, shared by all of us. And the best way to do that is to cooperate. We do that. NATO, Russia, and Central Asia for example train together our counter narcotic officials, particularly Central Asian, Afghan but also now Pakistani. Russia plays a very important role in this joint project with NATO allies. And it works very well. It's not solving the drug problem, and we're doing our best to help that to happen. But it is at least helping to mitigate, to restrain the flow of drugs out of Afghanistan.

But we have a larger interest in cooperation with Central Asia. And that is to help the Central Asian countries reach their full potential. Including as transit areas for trade, as production and transit areas for energy. That's a mutual interest for everybody.

And finally, let me also say that the Allies do encourage the process that was put in place recently in Istanbul and in Bonn, and that is to promote economic cooperation between the Central Asian countries, and Afghanistan, and other regional parties.

In the end, the strongest incentive for peace and stability in Afghanistan will be economic cooperation and interdependence. Look at the EU. The EU is the ultimate example of how economic interdependence breeds cooperation and peace. So we're very happy to see that the Central Asians are embracing this concept through the processes that I have mentioned, and NATO will be there. I am committed to this, not only personally, but professionally as NATO's Special Representative to Central Asia.

 

Question: Should Central Asian states do more to bring about stability to Afghanistan? Should their role increase after the Alliance's withdrawal?

James Appathurai: I sort of addressed this in the last question. But let me make another couple of points. The Central Asian countries are concerned that when 2014 arrives and the Alliance has a much smaller and different presence in Afghanistan, that they will be left with a problem or a growing problem of instability, and terrorism, and extremism, and drugs.

So it's very important that the Alliance is clear with them, including me, that we will have a presence beyond the end of the combat mission. That we are committed for the long term to Afghanistan's stability. And committed not just rhetorically or politically, we will have people on the ground doing work to help the Afghans stabilize their own country.

But we will also work with the Central Asian countries so that they can protect themselves better, fight against and defend against these many threats. So we're going to offer them more consultation, more exercises, more joint training to help them beef up their own capacity to handle these problems. And in doing that, we want to create a situation where the Central Asian countries can engage productively with Afghanistan, and they are trying to do that to help Afghanistan find its own feet. We don't want to return to a situation that we hand in the past where, for reasons of insecurity, individual nations of the region took individual approaches to Afghanistan, which didn't do anybody in the end any good.

Chevrolet Spark named the Runet's best car of 2011

http://uzdaily.com of 3/15/2012  


The awarding ceremony of the winners of the competition "The Best automobile in version of Runet 2011" was held in Moscow on 13 March 2012. The event has been organized for the fifth time by [email protected]

In the nomination "Supermini", the city mini car Chevrolet Spark has been named as the best. The car beat such strong opponents as Peugeot 107, KIA Picanto, Fiat Panda and Citroen C1.

Chevrolet Spark has bright youth design and consumes low fuel, as well as it is optimal model on ratio of price and quality. Bright and attractive design of Spark characterizes definition "expressive and energetic" rather than "nice and pleasant". Its sharp and faceted forms broke traditional ideas on city car. Spark continues revolution in Chevrolet design.

Aleksander Moynov, managing director of Chevrolet Russia, expressed gratitude to all those, who voted for Chevrolet Spark. He said that Spark has already claimed several international awards, since launch of its production in 2010.

Chevrolet Spark is also produced in Uzbekistan at the GM Uzbekistan. The Uzbek plant started production of car I August 2010. In 2011, the company produced 28,973 cars of Chevrolet Spark model.

http://uzdaily.com of 3/16/2012  


Uzbekistan will continue active investment policy in 2012. It is planned to increase the volume of capital investments, directed to development of economy of the country. Their growth compared to 2011 will make up 9.3% and its share in GDP - 24.5%.

The volume of foreign investments and loans will grow by 16% and make up over US$3.3 billion, of which over US$2.3 billion or 70% will be foreign direct investments, which indicates interest and trust of foreign investors into economy of Uzbekistan.

In 2011, total volume of used investments in economy made up over US$10.8 billion, or grew by 11.2% year-on-year. At the same time, its share in GDP made up 24%, which is rated as above average level in line with international criteria.

The highest growth of investments was recorded in such sectors as automobile, chemistry, electro-technical, textile, pharmaceutical, which produce ready products with high added cost.

In total volume of used investments share of internal sources - budget funds, off-budget funds, Fund for Reconstruction and Development, own resources of enterprises, bank loans and population resources - made up 73% in 2011. External investments was 27%.

The decrease of single tax payment for micro-firms and small enterprises from 7% to 6% helped to increase investment activity of businesses, which allowed to direct 80.3 billion soums of freed funds to re-equipment and introduction of new technologies.

Total volume of used foreign investments and loans exceeded US$2.6 billion in 2011, of which over 84% of them were foreign direct investments.

Over 73.5% of all investments were directed to construction of production capacities and about 45.3% of investments were used to purchase of new equipment.

The active investment policy in 2011 helped to launch new modern enterprises, among them are GM Powertrain Uzbekistan on production of automobile engines, enterprises on production of automobile generators and compressors, production of energy saving lamps, production of Samsung washing machines, gas ovens, air conditioners, etc.

Construction-assembly works are underway on such large projects as construction of combined-cycle plant at Navoi thermal power station, construction of the third line of Uzbekistan-China pipeline, construction of Kandym field with construction of gas processing plant.

Navoi free industrial and economic zone is operating successfully, where production of automobile wires, compressors, TV-tuners, energy saving lamps, modems, and other goods were launched.

Within the implementation of the project on construction and reconstruction of the Uzbek national automobile highway, Uzbekistan laid 302.5 km of modern roads. New passenger terminals of local flights were launched in Tashkent and Bukhara.

High-speed train Talgo-250 started to run between Tashkent and Samarkand. The train passed 344 km within 2.5 hours. To launch this train, wide-scale work on modernization and improvement of railway was conducted. Some 600 km of railway roads were rehabilitated and 68 km of new roads were constructed. Railway stations of Tashkent and Samarkand cities were reconstructed and equipped.

President of Uzbekistan adopted several resolutions, which are directed at further development and increasing competitiveness of economy of the country. Among them are programme on measures on production and launch of production of new competitive goods and On priority directions of industrial development of Uzbekistan for 2011-2015, etc.

In 2012, it is planned to launch 1,375 objects due to centralized sources of financing, and special attention will be paid to construction of educational and medical establishments, sport complexes, etc.

This year, it is planned to complete over 270 investment projects. Among them is to launch production of new car Cobalt with the project capacity of 125,000 units, construction of combined-cycle plant at Navoi thermal power station, over 25 textile capacities, etc.

Uzbekistan implements several projects on processing natural gas, including construction of Ustyurt gas chemical complex at Ustyurt field and Mubarek gas chemical complex with field construct with the capacity of 800,000 tonnes of polyethylene and 100,000 tonnes of polypropylene, production of liquidized synthetic fuel, expansion of ash soda production at Kungrad Ash Soda Plant, etc.

The country will also work on development of communication-transport system, including railway and air infrastructure. In particular, it is planned to electrify Karshi-Termez railway with extension of 325 km and Marakand-Karshi railway with the extension of 140 km.

Uzbekistan Havo Yollari implements project on modernization and unification of its fleet through purchasing 10 aircrafts of Airbus A-320, four planes of Boeing 767-300 ER and two planes - Boeing 787-800.

Implementation of the investment projects in industry will help to boost production of industrial goods in Uzbekistan. It is planed that the industrial production growth will make up 9-12% a year within 2011-2015 due to implementation of the projects. Share of industry in GDO will rise from 24.1% in 2011 to 28% in 2015, while exports of the industrial goods in total volume of production will grow from 42.3% in 2011 to 63.2% in 2015.


The 16th edition of OGU will take place on 15 - 17 May 2012 at UzExpocentre. The OGU conference will be held alongside  the exhibition on 16-17 May at the InterContinental Hotel in Tashkent, Uzbekistan.

OGU is the premier oil and gas trade event in Uzbekistan. The event is an annual meeting place for the regional and Uzbekistani oil and gas industry, and a hub for global industry leaders to meet and do business.

The Government's drive for sustained growth in the sector, assisted by reforms to attract foreign investors, means that there are numerous commercial opportunities for suppliers to the industry from around the world.

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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]
www.aucconline.com  

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