American-Uzbekistan Chamber of Commerce
Week in Review:
September 7, 2012 - September 14, 2012

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In This Issue:
Uzbekistan to start exporting gas to China in August
Uzbekistan to Join Free Trade Zone Treaty by Late 2012
World Bank Continues Supporting Productivity and Sustainability of Agriculture in Uzbekistan
China interested in expanding multi-pronged cooperation with Uzbekistan

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.   


Uzbekistan started regular gas exports to China in August, Uzbekistan's National Information Agency said.

A government source confirmed this for Interfax. The source said gas exports to China began on a regular basis in the middle of August. The source did not say how much gas would be exported to China this year.

Shokir Faizullayev, CEO of national oil and gas company Uzbekneftegaz, said in March that some gas would be exported to China starting April 1. But Uztransgaz said in the middle of May that the exports had not yet begun due to the need to iron out a few legal issues.

China and Uzbekistan signed a frame agreement back in June 2012 to sell an annual 10 billion cubic meters of Uzbek natural gas to China.

The Uzbekistan - China pipeline, part of the Central Asia - China gas pipeline, will be used to export the gas to China. Construction of the 7,000-km Central Asia - China pipeline (diameter of 1067 mm) to take natural gas from Turkmenistan, Kazakhstan and Uzbekistan to China began in 2008. The first line was completed in December 2009 and the second was finished in 2010. The two lines have combined capacity to carry 30 bcm of gas per year.

Uzbekistan and China began building the third line of the Uzbek section of the Central Asia - China gas pipeline, which will have capacity for 25 billion cubic meters per year, in December 2011. The $2.2 billion project will be financed with loans from China Development Bank and direct investment from the China National Petroleum Corporation (CNPC). Gas should start to be pumped along the third line in January 2014 and design capacity should be achieved in December 2015.

Uzbekistan is the Commonwealth of Independent States' third biggest natural gas producer and one of the world's top ten. The republic produces around 60 bcm of gas on an annual basis.   


Uzbekistan will join the Free Trade Zone Treaty by late 2012, the Uzbek and Kazakh presidents' joint statement said today following the Uzbek-Kazakh high level talks.
According to the document published by Uzbek media, it is emphasized that Kazakhstan welcomed Uzbekistan's decision to become a participant of the Free Trade Zone Treaty dated October 18, 2011 and supports the accession of the Uzbek side to the contract given the principal approaches, agreed and documented in the draft treaty dated October 18, 2011.
'The Republic of Uzbekistan agreed to fix the right of the Republic of Uzbekistan and the Republic of Kazakhstan for the mutual use of export duties on a limited range of products in the Free Trade Zone Treaty dated October 18, 2011 to achieve mutual compromise', a statement said.
Tashkent and Astana agreed to take action for early completion of the multilateral negotiation process on Uzbekistan's accession to the treaty by late 2012.
At present the contract minimizing the range of goods which are subject to import duties, have been signed by Russia, Kazakhstan, Ukraine, Armenia, Belarus, Kyrgyzstan, Moldova and Tajikistan.

The World Bank's Board of Directors today approved a US$ 40 million IDA Credit as an Additional Financing to the Uzbekistan Second Rural Enterprise Support Project (RESP 2). The Project will assist farmers to increase the productivity, financial and environmental sustainability, and the profitability of agricultural business.

The Additional Credit will provide funds through participating financial institutions to finance farmers' investment and working capital needs.

"Agriculture is an important component of the Uzbek economy," said Takuya Kamata, the World Bank's Country Manager for Uzbekistan. "The additional credit will support diversification in the agricultural sector such as horticulture development".

The original Rural Finance Component under RESP 2 has been successful and has disbursed US$ 25.7 million to 317 agribusinesses to finance agricultural machinery, processing equipment, packaging equipment and materials, investments in tree-crops, poultry, fishery and livestock production. In addition to project resources, farmers have co-invested US$ 4.2 million equivalent of their own funds.

By the time the Project is completed the farmers of 90 districts in seven regions of Uzbekistan will have increased overall productivity and income; farmers and agribusiness access to financial services will also improve.

Uzbekistan joined the World Bank in 1992. The World Bank's mission in the country is to improve people's livelihoods through being a partner in economic reforms, supporting the modernization of the country's social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan.

Current World Bank commitments to Uzbekistan amount to US$ 773 million.

Uzbek President Islam Karimov received Vice-Premier of the State Council Hui Liangyu , who paid an official visit to Tashkent on Thursday, the Uzbek National Information Agency (UzA) reported today.

President Karimov said that the visit of the Chinese delegation confirms the growing interest of the parties to develop the mutually beneficial trade and economic relations.

Hui Liangyu confirmed the interest of the Chinese government to intensify the multi-pronged cooperation with Uzbekistan, stressing that the documents adopted within the visit to the amount of $535 million will further expand the scope of economic cooperation.

The Declaration on Strategic Partnership, signed during the Uzbek President's visit to China is the next important step in expanding the bilateral cooperation.
At present, Uzbekistan implements a number of joint projects in the oil and gas sector.

The financial and technical cooperation is being dynamically expanded.

The trade turnover between Uzbekistan and China increased by 44.5 percent to $ 1.5 billion as of the first six months of 2012.

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