American-Uzbekistan Chamber of Commerce
Week in Review:
June 29, 2012 - July 6, 2012

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In This Issue:
First industrial business center under construction in Uzbekistan
Uzbekistan exports 226,000 tonnes of fruits in 2011
Uzbekistan is ready to develop full-scale cooperation with Turkmenistan
Uzbek President to visit Seoul in September
Uzbekistan, South Korea discusses prospects of bilateral relations
Uzbek-Russian relations discussed in Tashkent

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.
The first industrial business centre, which will become supermarket for business structures, is to be created in Uzbekistan soon.

Uzbek-Chinese Trade House, China Leasing Group, International Business Travel and Chamber Invest Group at the assistance of the Chamber of Commerce and Industry of Uzbekistan are building industrial business center TechnoPlaza in Tashkent.

TechnoPlaza is a B2B supermarket, where business can be launched and developed. The center will attract all participants of business process. They are transport and logistics companies, legal firms, banks, insurance and leasing companies, customs brokers, marketing and consulting firms, etc.

The Center will offer information on equipment and technologies, which the local businesses are searching, as well as optimal financial conditions for their purchase. Business circles can put their products to exports.

TechnoPlaza will also offer offices and premises for holding events (presentations, roundtables, briefings, seminars, business lunches) for rent, and for holding exhibitions.
Uzbekistan exported 226,000 tonnes of fruits and 147,000 tonnes of grapes in 2011, local news agency UzA reported.

The report said that fruits, vegetables, melons and gourds, produced in Uzbekistan, are exported to Germany, India, the UAE, the USA, South Korea, Turkey and the CIS states.

Currently, Uzbekistan has 244,000 hectares of gardens and 127,000 hectares of vineyards.

In autumn 2011-spring 2012, farmers received 5 million saplings of fruits and grape trees. In the result, some 10,000 hectares of new fruit gardens were created.

Uzbekistan is also actively develops intensive gardens. Currently, there are 5,000 hectares of intensive gardens in Samarkand, Ferghana, Tashkent and other regions of Uzbekistan.

Some 400,000 saplings of fruit trees were imported to create intensive gardens in 2011. Some 900,000 saplings were produced from them and 400,000 of them were delivered to farmers. Another 500,000 saplings were prepared to autumn season. This year, 250,000 saplings were imported to create intensive gardens.

The report said that the works conducted in the sector in recent years helped to increase fruits production by 3.6 times and grape - by 2.3 times.

President of Turkmenistan Gurbanguly Berdymuhamedov and President of Uzbekistan Islam Karimov exchanged views on prospects for international dialogue and discussed international and regional issues of common concern, the Turkmen government said on Tuesday.

"Uzbekistan attaches great importance to the development of full cooperation with Turkmenistan, the modern relationship with which it is built on a solid foundation of centuries old friendship, good neighbourliness and mutual support," the information said, quoting Karimov.

Berdymukhamedov, in turn, confirmed the interest of the Turkmen side in a constructive international partnership, both bilaterally and multilaterally, especially within international organisations.

The Turkmen leader noted that "similarity or identity of the parties to a number of issues of international politics in a constructive political dialogue and mutual support in the international arena contribute to the strengthening of bilateral relations".

Berdimuhamedov invited Karimov to visit Turkmenistan which was accepted. Dates of the visit will be agreed through diplomatic channels.

"The realisation of new joint projects designed to serve not only the prosperity of the two fraternal countries, but also the whole region has been named as one of the most effective mechanisms to intensify cooperation, based on long experience of successful partnership and the existing economic potential," the media said.

Two states are connected by a number of major projects and particularly a gas pipeline from Turkmenistan to China via Uzbekistan and Kazakhstan which was opened in December 2009. The parties also reviewed possible cooperation in the implementation of the railway project which would link Central Asia with Persian Gulf countries. 
President Islam Karimov of Uzbekistan will visit Korea in September, for a summit with President Lee Myung-bak. They will discuss issues of mutual concern, according to visiting Uzbek Foreign Minister Abdulaziz Kamilov, Friday.
It will be Karimov's seventh visit to Korea, an indication of strong Korea-Uzbekistan relations, which still have a lot of potential, he said.
Uzbek foreign minister, who was in Korea this week in preparation for the President's visit said, "Uzbekistan has a particular interest in learning Korea's know-how in nurturing small- and medium-sized businesses," and invited Korea's entrepreneurs to an investment seminar scheduled for mid-September in Uzbekistan.
The minister led a delegation to the Korea-Central Asia Cooperation Forum which opened Thursday. He also had meetings with Foreign Minister Kim Sung-hwan Wednesday and Trade Minister Bark Tae-ho, Friday.
His visit is part of the Uzbek government's commitment to transitioning to a market-based economy from one under the heavy influence of the former Soviet Union.
Agriculture, industry and construction are the main pillars of the country's economy. Trade and investment activities with other nation's are on the rise as well. Russia, Ukraine and Kazakhstan are strong trade partners, followed by Turkey, China, Iran and Korea.
Trade volume with Korea exceeded $1.7 billion while the size of investment from Korea to Uzbekistan reached $10 billion.
One of the major investment projects is the construction of the Ustyurt Gas-Chemical Complex. The so-called Surgil Project at a cost of $4-billion is expected to manufacture polyethylene and polypropylene generating over $1.6 billion in revenue annually.
"We expect this complex will create new business opportunities with neighboring countries," he said.
Korean Air is managing the International Logistics Center at the Airport of Navoi, a city designated as a free industrial economic zone. In 2011 alone, more than 50,000 tons of cargo were shipped through the airport. 
The minister hoped Uzbekistan's abundant natural resources and cotton will create new opportunities for Korean investors. 
Cotton used to be a leading cash earner for the country but lost its luster after independence 21 years ago. Uzbekistan is a major producer of gold and has significant copper, gas and oil deposits.  
Karimov's trip is a return visit following Lee's trip to Uzbekistan in November last year. 
During that visit a temporary working visa program allowing Uzbek nationals to work in Korea was signed. Having gone into effect in February, the minister said the program is getting a very good reception and added, "We are working hard to maintain it." 
An important element in Uzbekistan-Korea relations is the approximately 200,000 ethnic Koreans, who the minister says connect the two countries. They are mostly descendents of Koreans who were forced to move from Russia's Far East in the early 20th century. 
Kamilov became the foreign minister in January this year, after spending two years as first deputy foreign minister. Prior to that, he was an ambassador to the United States where he spent seven years between 2003 and 2010. He was also posted in Brazil and Canada  

Uzbek Foreign Minister Abdulaziz Kamilov and Minister of Foreign Affairs and Trade of Korea Kim Sung-Hwan discussed state and prospects of bilateral relations and issues of cooperation within international organizations on Wednesday, the Foreign Ministry of Uzbekistan said.

Kamilov led a delegation of Uzbekistan, which arrived in Seoul to attend the sixth meeting of the Forum on the cooperation Republic of Korea - Central Asia.

The ministers exchanged views on the implementation of previously signed Uzbek-South Korean agreements and the agreements and the schedule of upcoming international contacts during the meeting, the Foreign Ministry of Uzbekistan said

Considerable experience of mutually beneficial cooperation in political, economic, trade, investment, cultural and humanitarian fields is accumulated during the 20 years of establishment of diplomatic relations between the countries.

During the meeting the ministers also discussed cooperation in education, health, tourism, sports, academic and student exchanges, and culture.

The parties noted that the regular political dialogue at the highest level is a reliable basis for friendly relations between the countries. Meeting of presidents Islam Karimov and Lee Myung Bak, which took place in August 2011 in Tashkent and agreement on joint long-term projects in various sectors of the economy signed during the visit of the president of Korea to Uzbekistan gave new impetus to bilateral cooperation.

As previously reported, a number of intergovernmental documents, including an agreement on temporary employment of citizens of one State to another State, a Memorandum of Understanding between the Ministries of Economy of Uzbekistan and Korea, on partnership in the field of industrial and energy cooperation was signed during the visit.

In addition, National Holding Company (NHC) Uzbekneftegaz signed four contracts with Korean companies for the construction of Ustyurt gas and chemical complex in the field Surgil (Ustyurt region) in Uzbekistan worth $2, 6 billion.

Currently, the total amount of the claimed South Korean investments in Uzbek economy exceeded $5 billion, including spent - $2 billion. Bilateral trade volume totaled 1.6 billion in 2011. There are more than 360 companies with Korean capital, including 59 companies wholly owned by Korea, more than 80 accredited representatives of South Korean companies in Uzbekistan.  

Russia's ambassador to Uzbekistan Vladimir Tyurdenev yesterday discussed the current issues of Uzbek-Russian relations with the leadership of the Uzbek Foreign Ministry, Foreign Ministry of Uzbekistan said on Friday.

"The two sides exchanged views on the fulfillment of agreements reached on June 4, 2012 at a meeting of Uzbek and Russian presidents in Tashkent, as well as on current issues of bilateral relations," the report said.

As it was previously reported, following the talks of presidents Islam Karimov and Vladimir Putin, held within the Russian President's visit to Tashkent, a Declaration on deepening strategic partnership and a Memorandum of Understanding on further joint actions on Uzbekistan's joining the Treaty on Free Trade Zone were signed.

Uzbekistan has officially announced its intention to withdraw from the Collective Security Treaty Organisation in late June.

Russia ranks first place among trade partners of Uzbekistan. According to State Statistics Committee of Uzbekistan, bilateral trade turnover in 2011 grew by 8.9 percent up to $6.68 billion.

Some 946 enterprises with Russian capital operate in Uzbekistan, of which 353 have been created during the past three years. About 111 Russian firms and companies have been accredited in the republic. Some 410 enterprises with the involvement of Uzbek residents have been established in Russia.

The total volume of Russian investments in the past six years amounted to more than $5.7 billion.

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