American-Uzbekistan Chamber of Commerce
Week in Review:
June 22, 2012 - June 29, 2012

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In This Issue:
Uzbek aviation association to carry out investment projects worth $23.2 mln
OSCE supports use of renewable energy in Uzbekistan
China opens motor transport route to Central Asia
EU supports Central Asian countries' intentions to join WTO
Uzbekistan suspends membership in CSTO

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.

Tashkent Aviation Production Association named after Chkalov (TAPOiCH) in 2012-2013 will implement six investment projects for the production of products for the automotive, oil and gas and electricity industries worth $23.3 million, the association said on Saturday.

In particular, in 2012, TAPOiCH will create a subsidiary "Dies and molds" worth $3 million for the production of dies, molds, steel, aluminum and copper castings for the needs of automotive, electric power, oil and gas sector.

Rezinoplastik enterprise worth $2.2 million will be equipped with modern high-performance lines for the production of rubber and plastic fro machinery industry and construction industry.

There will production of high quality molded parts for automotive industry and the domestic consumer market on the basis of the subsidiary "Stamped parts" will be upgraded.

Other enterprise, Tool, for the manufacture of cutting (milling cutters, drills, cutters), plumbing (wrenches, hammers, screwdrivers) and other tools for the automotive industry and the Ministry of Agriculture is also to be equipped with modern equipment. Investments in these projects will amount to $2.9 and $3.9 million respectively.

In 2012-2013 TAPOiCH will create another subsidiary, Metiz, worth $6.1 million to produce over 40 kinds of bolts, nuts, screws for machine building and construction industry.

Smooth operation of enterprises of Ministry of Agriculture of Water Economy will be ensured by GidroKaskad-repair, which will perform the repair of units, units of water pumps, valves and other popular products. To implement the project worth $5.18 million it is planned to purchase the newest high-performance equipment for cold heading, thread rolling, heat treatment and equipment for electroplating products, as well as a full range of laboratory, measuring and packaging equipment.

Financing of projects is planned through private investment of Uzbek and foreign companies. 

OSCE Project Coordinator in Uzbekistan today organized a debate on a draft renewable energy law, that aims at boosting the development of renewable energy sources, especially solar energy, wind, biogas and hydro power, the organization reported.

The law was drafted by a group of parliamentarians of the Oliy Majlis. The new law should stimulate the development of the renewable energy sector involving the government and the private sector, and boost local and foreign investments.

More than 50 participants from the Parliament, ministries, the private sector and non-governmental organizations and international organizations took part in the workshop.

The OSCE Project Coordinator in Uzbekistan, Ambassador György Szabó in his speech to the workshop participants acknowledged the efforts made in Uzbekistan to promote renewable energy and stressed the importance of sharing experience between scientific institutions, companies and NGOs working on promoting renewable energy and energy efficiency in the OSCE region.

"Renewable energy now accounts for mere 1 percent of the total energy consumption in the oil and gas exporting country. Through this project we want to share the almost 40 years of experience of the OSCE participating states in this field, and to contribute to the protection of the environment by reducing the impact of climate change in the region," he said.

"Investment in renewable energy should also improve the local business environment by creating new employment opportunities. Increasing production and consumption of renewable energy may also improve conditions in the remote areas of Uzbekistan," Szabó stressed.

The workshop was preceded by a practical training course for farmers on June 25-27, 2012 in the Jizzakh Region of Uzbekistan. The course conducted by the OSCE Project Coordinator together with the "Ecomovement", the Farmers' Association and Mashav, the Israeli cooperation agency, aimed at raising awareness about the matter and focused on the practical options of small-scale wind, solar and biogas energy production. The technologies were demonstrated in action at a remote farm in an arid area: the participants were connected to the Internet by a solar energy-powered computer, and were shown how the conditions of agricultural production could dramatically change if a wind turbine pumps water to the surface for irrigation. 
China on Wednesday opened a motor transport route to Central Asia and Europe as six fully loaded trucks headed for France from Helgus port, the biggest land port in west China.

Opening of the route will reduce the time it takes to transport cargo between China and Europe, giving businessmen home and abroad a safe, efficient, low-cost and convenient logistics channel, said Abdusalam Sadek, mayor of Yining city of Xinjiang Uygur autonomous region, which borders Kazakhstan.

The route was initiated by the Yili WIL-CAN Cargo Group of China and France's Comex Holdings International Ltd.,Chinese media reported.

Fifty trucks carrying products from China are expected to be sent to Russia, Central Asian and European countries every day by road by the end of the current year, according to Cao Ganyun, Executive-Director of the Yili WIL-CAN Cargo Group. The number of trucks would be raised to 500 by 2014, he added.

China's trade with Central Asia and Europe has boomed in recent years, and there has been a huge demand for motor logistics in the region as shipping takes a much longer time.

Yining is 90 kilometers from the Helgus port and is one of China's gateway cities to Central Asia. 
The EU is committed to support Central Asian countries accession to the World Trade Organization (WTO), the conclusions of the EU Council on Central Asia say.
"EU actions in relations with Central Asia over the coming years will focus in particular on...encouraging Kazakhstan to make the necessary final steps for swift WTO accession, supporting Tajikistan in their efforts to achieve accession and work with Uzbekistan and Turkmenistan to advance their accession negotiations and applications...," the EU Council said on Monday.
According to Kazakh authorities, Kazakhstan will complete negotiations on the accession to the WTO in 2012.
The WTO was established in 1995. Its goal is liberalization of international trade and regulation of trade and political relations between the member states. The WTO members are more than 150 countries.

Tashkent has sent a note of the notice of suspension of Uzbekistan's membership in the CSTO, a spokesman for the Collective Security Treaty Organisation, Vladimir Zaynetdinov, told Ria Novosti.

"At the moment, the CSTO experts are assessing documents received by the Secretariat, holding their due diligence, and the report of the President of the CSTO member states is being prepared," he said.

He did not specify reasons for such a decision of Tashkent.

Uzbekistan has already suspended its membership in CSTO - in 1999 Tashkent refused to renew the treaty, but in August 2006, Uzbekistan has restored membership in the CSTO.

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