American-Uzbekistan Chamber of Commerce
Week in Review:
January 25, 2013 - February 1, 2013
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AUCC Celebrates 20th Anniversary

Since 1993 the American-Uzbekistan Chamber of Commerce has been at the forefront of advancing trade and business relations between the US and the Republic of Uzbekistan. Catering to the needs of our members, providing them with a platform to interact with policy makers in the US and the Republic of Uzbekistan and ensuring that the bilateral commercial relations remain to be on the governments' top agenda are the core values and principles that AUCC prides itself in.   


Standing behind the businesses' successes for 20 years, AUCC has been the most effective and results-oriented group that understands the value of US businesses and the importance of obtaining the strongest support from the governments of our countries for their projects and undertakings.   


If your company is interested in joining AUCC, please contact our office.  We invite you to be part of our organization and participate in our activities and events.   

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In This Issue:
Uzbekistan Railways may construct railroads in Afghanistan
World Bank's Project Approval - Sustainable Agriculture & Climate Change Mitigation Project
Uzbekistan can join CIS free trade zone in May
Uzbekistan Insurance Industry: Key Trends and Opportunities to 2017
More Than 10 Million Rural Residents in Eight Regions of Uzbekistan to Benefit from Economic Opportunities
OMK to supply pipes for Central Asia-China gas pipeline

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.
State joint stock railway company Uzbekistan Temir Yollari (Uzbekistan Railways) can participate in construction of railroads to Kabul, Afghanistan, and further to Iran.

Head of Uzjeldorrasschet Center Navruz Erkinov said that Uzbekistan Temir Yollari have constructed 106 km of railroads in Afghanistan.

He said that there are plans to continue construction of railroads up to Kabul and further to Iran with perspective to access to ports of Persian Gulf.

As reported earlier, Uzbekistan Temir Yollari completed construction of Hairatan-Mazar-e-Sharif railroad in the end of 2010 with the cost of US$129 million.

The Uzbek company constructed 75 km railroad and several stations, as well as reconstructed Hairatan station within the project.

The project was financed due to US$165 million grant of the Asian Development Bank (ADB) and US$5 million of own funds of the Afghanistan Government.

On January 29, 2013 the World Bank's Board of Executive Directors approved the following project.

GEF Grant: US$12.69 million

Project ID: P127486


Project Description: The objectives of the project are to promote the introduction of renewable energy and energy efficiency technologies of relevance to agribusinesses and farms; and strengthen capacity for improving degraded irrigated land and water conservation in the project area. [Click here for more information]

Uzbekistan can join to free trade zone in the Commonwealth of Independent States (CIS) by the end of May 2013, Belta news agency reported quoting Russian official.

Director of the First Department of the CIS States of the Russian Foreign Ministry Mikhail Yevdokimov said that a session of the CIS Council of Heads of Government will take place in Minsk on 31 May 2013.

"Maybe, by that time Uzbekistan will have joined the CIS free trade zone," Mikhail Yevdokimov said.

He said that it is also possible that all the countries that signed the Free Trade Zone Agreement will ratify it by the mid-2013.

The agreement on free trade zone in the CIS was signed in October 2011 and Russia, Belarus, Kazakhstan, Armenia, Kyrgyz Republic, Moldova, Tajikistan and Ukraine are signees of the document. Uzbekistan, Azerbaijan and Turkmenistan expressed wish to consider to accession to the agreement. 

The report "The Insurance Industry in Uzbekistan, Key Trends and Opportunities to 2017" provides in depth market analysis, information and insights into the insurance industry in Uzbekistan, including:

- The Uzbek insurance industry's growth prospects by insurance segments and categories
- The competitive landscape in the Uzbekistan insurance industry
- The current trends and drivers of the Uzbekistan insurance industry
- The challenges facing the Uzbekistan insurance industry
- The regulatory framework of the Uzbekistan insurance industry

The Uzbek insurance industry is a highly competitive industry. The key factors affecting the performance of the Uzbek insurance industry during the review period include fierce competition in the non-life segment, rise in claims ratio and increase in minimum authorized capital requirements. The Uzbek insurance industry increased at robust CAGR during the review period, primarily supported by the non-life insurance segment. Both, voluntary and compulsory insurance classes recorded healthy growth in insurance premiums in 2011. The majority of the insurance business is generated from Tashkent, the capital of Uzbekistan. The financial crisis and European debt crisis did not have any significant impact on the performance of insurance industry during the review period. A stable surplus budget, the high level of official reserves, a stable banking system and prudent borrowing on international financial markets defended the country from the direct effects of the global crisis. Projected robust economic growth in Uzbekistan is expected to drive performance of the insurance industry over the forecast period.  [For more information about the report, please click here]   


Rural communities of over 10 million people in eight regions of Uzbekistan will benefit from the US$12.699 million Global Environment Facility (GEF) grant financing for the Sustainable Agriculture and Climate Change Mitigation Project approved today by the World Bank's Board of Executive Directors. This is complementary financing to the US$120.66 million International Development Association (IDA) credit for the ongoing second phase of the Rural Enterprise Support Project.

The Sustainable Agriculture and Climate Change Mitigation Project will promote the introduction of renewable energy and energy efficiency technologies of relevance to agribusinesses and farms, and strengthen capacity for improving degraded irrigated land and water conservation in Andijan, Bukhara, Jizzak, Kashkadarya, Samarkand, Syrdarya, Tashkent, and Fergana regions.

According to Uzbekistan's Second National Communication on Climate Change (2010), intensive warming has been observed over the entire country. With further acute water scarcity predicted for extremely warm and dry years, flows in the Syr Darya and Amu Darya Rivers Basins might decrease. The activities envisaged under the new GEF grant would contribute to mitigating and adapting to water scarcity, land degradation, and increased greenhouse gas emission risks.

"The Sustainable Agriculture and Climate Change Mitigation Project responds to the country's commitment to further reform agricultural sector and raise its importance on the economic agenda," said Takuya Kamata, World Bank's Country Manager for Uzbekistan. "The project will help rural communities in Uzbekistan to adopt, transfer, and replicate sustainable agriculture and land management practices aimed at restoring and improving irrigated land, while increasing economic opportunities for the rural population and improving environmental conditions."

The project components include: Promoting Renewable Energy Technologies (GEF US$9.0 million), Promoting Technologies and Practices to Mitigate Irrigated Land Degradation (GEF US$1.09 million) and Providing Advisory Services and Project Management (GEF US$2.60 million)

Uzbekistan joined the World Bank in 1992. The World Bank's mission in Uzbekistan 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.

Total current World Bank commitments to Uzbekistan amount to US$894.5 million. 


The Vyksun steel plant, a member of Russia's United Metallurgical Co (OMK), has begun manufacturing and supplying large-diameter pipes as part of the Central Asia-China gas pipeline project, which will link major natural gas deposits in Kazakhstan, Uzbekistan, and Turkmenistan with China's gas transportation network. According to an OMK report, the Vyksun plant will produce and deliver 194,500 tons of 42-in diameter pipe, with 15.9-mm wall thickness and both external and internal anti-corrosion protection.

The first pipes will be used for the Kazakh section of the pipeline, before the end of March 2009. OMK will supply a total of 355,000 tons of 42-in pipes with both 15.9-mm and 19.1-mm wall thicknesses for pipeline in Kazakhstan and Uzbekistan before the end of this year; in total, the project will requires 1.52 million tons of pipe. The Central Asia-China gas pipeline will consist of two lines running from Turkmenistan's Samandepe field to China via Uzbekistan and Turkmenistan. The pipeline will be more than 7,000km long, of which 188km will be in Turkmenistan, 560km in Uzbekistan, 1,300km in Kazakhstan, and 5,000km China. The project is scheduled to be completed before the end of this year. The Kazakh segment of the pipeline (the Kazakhstan-China gas pipeline) will be built by the Asian Gas Pipeline Co, which was founded by Trans-Asia Gas Pipeline Co, affiliated with China's China National Petroleum Corporation (CNPC), and Kazakhstan's state-controlled gas transportation company KazTransGas. CNPC and the Uzbekneftegaz national holding company have established the Asia Trans Gas joint venture to construct the Uzbek section of the pipeline (the Uzbekistan-Kazakhstan gas pipeline).

The American-Uzbekistan
Chamber of Commerce
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Washington, DC 20005
phone: 202.509.3744