American-Uzbekistan Chamber of Commerce
Week in Review:
December 28, 2012 - January 4, 2013

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In This Issue:
Project financing of Ustyurt gas chemical complex named as intl deal of the year
Uzbekistan to change tax base on excess profits from goods sale in 2013
GM Uzbekistan sells 978 cars in Kazakhstan in November
Uzbek Central Bank withdraws Credit-Standard's license for foreign currency transactions

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. 


A project financing of the project Ustyurt gas chemical complex has been named as international deal of the year, the press service of Uzbekneftegaz said.

Thomson Reuters, a global leader in business analytics, publishes Project Finance International (PFI), which analyses global project financing market.

In December 2012, Project Finance International 2012 Year Book announced the winners of annual award for 2012. The book also analyses global project financing deals.

Projects from Australia, Great Britain, Germany, France, Norway, USA, Malaysia, Uzbekistan and Russian Federation in energy, oil and gas mining, oil and gas chemistry and transported entered to Top 10 projects.

The project "Construction of Ustyurt gas chemical complex at the base of Surgil complex" was named international project of the year in nomination "Deal of the year in oil and gas chemistry", which is acknowledgement of its uniqueness and innovation, as well as great potential of Uzbekistan in realization of large investment projects based on project financing.

Project Finance International noted that Ustyurt project is the first international project financing deal in oil and gas chemical complex of Uzbekistan. It said that the deal is largest project financing in Central Asia and largest in gas chemistry projects in CIS.

The project "Construction of Ustyurt gas chemical complex at the base of Surgil complex" was developed in cooperation between Uzbekistan and South Korea. The project is endorsed by the governments of two states.

A package of financial documents worth US$2.54 billion was signed in May 2012 and the documents will be effective for 16 years. Korean Export-Import Bank issued US$1 billion to project financing, China Development Bank - US$250 million, Asian Development Bank - US$125 million, and National Bank of Uzbekistan - US$100 million. Korea Trade Insurance Corporation provided insurance coverage for US$800 million, EKN (Sweden) - US$140 million and Hermes (Germany) - US$124 million.

Nine commercial banks participated in financing of the project. They are Korean Financial Corporation, Korean Development Bank, ING Bank, Siemens Bank, Credit Suisse, Bayern LB, KfW IPEX, Nordea and Swedish bank SEK.

Uzbekneftegaz said that the awarding ceremony will be held on 30 January 2013 in London, Great Britain.

Uz-Kor Gas Chemical is a project company. Uz-Kor Gas Chemical was founded by Uzbek and Korean companies in May 2008 to develop, finance, construct and exploitation of integrated gas and oil processing project in Ustyurt region of Uzbekistan.

Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.

Main resource base of the project is gas and gas condensate, extracted at Surgil field, license for development of which was presented to Uz-Kor Gas Chemical.

Uz-Kor Gas Chemical will produce and sell gas in market of Uzbekistan and produce gas chemical goods: polyethylene of high density, polypropylene and pyrolized gas and mazut for internal and external markets.

It is expected that Ustyurt Gas Chemical Complex will be commissioned in early 2016.

The complex will annually process 4.5 billion cubic meters of gas and produce 4 billion tank gas, 400,000 polyethylene and 100,000 tonnes of polypropylene, as well as 100,000 tonnes of pyrolized petroleum.

The project cost is about US$4.16 billion. Foreign banks issued US$2.5 billion, while founders of Uz-Kor Gas Chemical will allocate US$1.41 billion. The Fund for Reconstruction and Development of Uzbekistan will issue US$100 million.   


Uzbekistan has changed the tax base for the tax on excess profits derived from sale of copper cathode and cement, the Uzbek State Tax Committee reported with reference to the decision of the president.

In particular, the excess profits tax will be charged during sale of copper cathode at a price varying between over $4.350 per ton and "cut prices", earlier reaching more than $4.200.

The tax for excess profits from the sale of all types of cement, except white cement and cement, produced through alternative fuel (coal), is set at a price exceeding 105,000 soums per ton compared to 95,000 soums per ton earlier.

The settlement price is set for companies selling polyethylene granules to determine the tax base for excess profit at $ 1.325 million soums per ton compared to 1.2 million soums in 2012.

The settlement prices for natural gas and clinker remained unchanged, equaling $160 per one thousand cubic meters and 80,000 soums per ton.

The tax rate on excess profits remained at the level of 50 percent of the taxed base.

According to the established order, the payers transfer a part of the excess profit, remaining at their disposal, to the special investment accounts from which the funds are spent as agreed with the Ministry of Economy and Finance to approved investment projects, the service of attracted loans, as well as modernization and technical reequipment of primary production.

According to the approved state budget for 2013, Uzbekistan plans to raise 294.5 billion soums through excess profits tax compared to 250 billion soums in 2012.

The official exchange rate on December 28 is 1984.00 soum / $ 1.   


GM Uzbekistan, an Uzbek-US joint venture, sold 978 automobiles in November 2012 in Kazakhstan compared to 359 units in the same period of 2012, a consulting firm Qncepto said in its report.

The sales growth of Uzbek cars made up 72.42%. Qncepto said that GM Uzbekistan holds the second place in Kazakhstan on the volume of sales after Russia's Lada. Toyoto is on the third place.

According to Qncepto's report, Nexia model claimed the fourth place among bestsellers in Kazakhstan in November compared to the third place in October.

Other model of GM Uzbekistan, Matiz, moved from the eighth place in October to the seventh place in November 2012.    


The Uzbek Central Bank withdrew Credit-Standard's general license to conduct foreign currency transactions, the Central Bank said today.

"According to the Uzbek Republic's law on the Central Bank of the Uzbek Republic, the Central Bank revoked Credit-Standard's general license to conduct foreign currency transactions in connection with a violation of currency regulation legislation", the regulator said.

The report did not specify any specific violation or period of revocation.

Credit-Standard Bank was established in August of 2003 as a private open joint stock commercial bank. It was transformed into an open joint-stock commercial bank in October of 2007.

As of the first half of 2011, the bank's assets amounted to 254.8 billion Soums, including loans of 36.7 billion Soums. Deposit funds amounted to 114.8 billion Soums. The share capital as of July 1st, 2011 was 15.552 billion Soums. It consisted of 43,200 shares with a par value of 360,000 Soums, including 38,000 common and 5,200 preferred. The Russian company Transkapital is the largest shareholder with 76% of shares.

Recent financial indices of the bank's activity, as well as management's comments are not available.

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