American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:

July 5, 2013 - July 12, 2013
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2013 Marks AUCC 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. AUCC prides itself in 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 bilateral commercial relations continue to be on the governments' top agenda.   

 

For the last twenty years AUCC has been a vigorous advocate of the views of the business community to ensure that private sector positions are considered during the development of policies that impact American businesses and the future of U.S.-Uzbekistan relations.    

 

We are delighted that today AUCC is a well-known organization that is recognized for its strength and ability to work closely with a great number of partner organizations. AUCC enjoys excellent working relations with the Embassy of the Republic of Uzbekistan in Washington, D.C., the Government of the Republic of Uzbekistan, Uzbek ministries, associations and organizations as well as the executive and legislative branches of the U.S. AUCC also coordinates its efforts with a great number of international financial institutions, business councils and other professional organizations.

If your company is interested in joining AUCC, please contact our office at 202-509-3744 or [email protected]  We invite you to be part of our organization and participate in our activities and events.   

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In This Issue:
AUCC IN BRIEF
The Boeing Company : Boeing and Uzbekistan Airways Partner with Non-Profits to Deliver Humanitarian Aid
Prime Minister's Office of Spain : Spain and Uzbekistan sign treaty to avoid double taxation
Network of CNG fueling stations to be opened in Uzbekistan this year
Uzbekistan joins SCO ministerial meeting
Uzbekistan, Georgia discuss cooperation within international organizations
Chinese FM to visit Kyrgyzstan, Uzbekistan, Turkmenistan
Uzbekistan seeks to upgrade electricity accounting system

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.

www.4-traders.com 

 

Boeing (NYSE:BA) has partnered with Uzbekistan Airways and non-profit organizations AmeriCares and Tashkent-based Soglom Avlod Uchun (SAU) Foundation to transport a consignment of medical supplies on board the airline's  newly delivered 767-300ER (Extended Range).

The 4,367 lb. (1,980-kilogram) shipment is part of Boeing's Humanitarian Delivery Flights program and includes boxes of medicine that SAU Foundation will distribute to hospitals and clinics to improve access to medication for underprivileged people in Tashkent. A similar consignment of 9,134 lb (4,143-kilograms) of medical supplies also destined for SAU Foundation was shipped on a delivery flight in May.

"Boeing, through its Global Corporate Citizenship organization, supports relief efforts around the world in partnership with nongovernmental agencies such as AmeriCares and their strategic partner SAU Foundation. Soglom Avlod Uchun translates to "for a healthy generation" and through such collaborative efforts we can play a role in bringing health care to people in need,"  said Liz Warman, Boeing's Global Corporate Citizenship Northwest director.

This is one of the many humanitarian shipments that Boeing and Uzbekistan Airways have undertaken. Last year, a delivery flight transported consignments of medical supplies through Project Hope to hospitals in Tashkent while another carried scholarly books for the Tashkent-based International Library in association with the Seattle-Tashkent Sister City Association and the Academy of Sciences of Uzbekistan.

"Development of the community, especially the health and welfare of the people of this country, is part of our social responsibility mission," said Valeriy Tian, director-general, Uzbekistan Airways. "Joint initiatives with Boeing and non-profit organizations have enabled us to help those in need in Uzbekistan."

Since Boeing's Humanitarian Delivery Flight program began in 1992, the company has facilitated more than 150 humanitarian delivery flights, working in partnership with nearly 50 different airlines worldwide.

This delivery to Uzbekistan Airways marked the fourth and final delivery of the 767-300ERs ordered by the airline in 2008.

www.4-traders.com 

 

In Madrid on Monday, the State Secretary for the Treasury, Miguel Ferre, and the Chairman of the State Tax Committee of Uzbekistan, Botir Parpiev, signed the new treaty between the Kingdom of Spain and the Republic of Uzbekistan to avoid double taxation and prevent personal income and wealth tax evasion, as well as its governing Protocol. The signing of both texts was authorised at the Council of Ministers meeting on 28 June.

Signing this type of international treaty generates a variety of benefits.

  • Economic: generally-speaking, because investing companies prefer to operate in countries with which a treaty of this nature has been agreed as it reflects good economic and political relations, while the increased investment activity by these companies has positive effects in both countries.
  • Legal: by providing a stable framework with a strong outlook, which encourages projects based on long-term investments.
  • Fiscal: for taxpayers - both by avoiding double taxation and applying maximum levy rates in the State where the income is generated or due to the existence of regulations governing the resolution of disputes between the tax authorities - and for the authorities themselves - by establishing mechanisms for inter-communication and for avoiding tax evasion and tax fraud.

The previous treaty - signed with the USSR - became invalid with regard to Uzbekistan on 21 July 2010. With Uzbekistan being one of the EU's main trading partners in the region, this new treaty will help promote investment and trade relations between Spain and Uzbekistan in such sectors as construction, transport and energy. Furthermore, it will also enable legal certainty to be increased for the economic operators of both countries and guarantee the elimination of any possible double taxation situations that may arise, an, in certain cases also reduce the fiscal burden.

Uzbekistan is one of the countries in Central Asia enjoying the most dynamic and sustained growth, recording annual GDP growth figures of more than 7% in recent years. The country has abundant natural resources, including oil, natural gas, minerals and agricultural products, meaning it is one of the most attractive economies in the region for foreign investors.

The treaty also includes a section on the exchange of information under the terms of the OECD Model Treaty, which will enable a broad exchange of information between Spain and Uzbekistan on important tax-related issues, including banking information.

The treaty will come into force three months after the date on which both countries report compliance with domestic legal procedures for the entry into force of the treaty. Including the one signed today, Spain has now signed a total of 90 such treaties.

www.azernews.az 

 

Uzbek-Korean joint venture Kor UNG Investments will complete the construction of a network of compressed natural gas (CNG) fueling stations worth $42.8 million in Uzbekistan by late 2013, a source in government circles told Trend on Friday.

The project launched in March 2012 envisages construction of 50 CNG stations in all regions of the country with each station's annual output of up to four million cubic meters of compressed natural gas.

According to the source, 38 CNG stations have been built to date, and 12 more will be built by late 2013. Thus, construction of a network will be fully completed by the year's end, reducing construction time for a year.

Earlier, the completion was planned for the end of 2014.

JV KOR UNG Investment was established in May 2011 by the Uzbek Avtogaztaminot (part of the Uzbekneftegaz National Holding Company, specializes in the supply of compressed natural gas for CNG) and Korean Kogas, Kolon, Kwangshin and Engine Tech for the construction and commissioning of 50 CNG stations in Uzbekistan.

The project is funded by the founders of the joint venture.

In early 2007, the Government of Uzbekistan adopted a program of road transport's phased transfer to natural gas in the country. As part of the program, it was planned to build 138 CNG filling stations across the country by the end of 2012 with a total reservoir of 708 million cubic meters of gas compression and 952 gas filling stations with a total capacity of 476,000 tons of liquefied natural gas, which allowed to transfer over 161,000 vehicles to gas.

Later, it was decided to open 352 CNG stations by the end of 2015 and bring the number of vehicles using compressed gas to 29 percent by 2016.

Currently, 20 percent of the total number of vehicles registered in the country use gas.

NHC Uzbekneftegaz's capacities allow for natural gas production in the volume of 70 billion cubic meters and liquid hydrocarbons in the volume of 8 million tons per year.

In 2012, natural gas production in Uzbekistan decreased by 0.2 percent to 62.911 billion cubic meters, while the production of liquefied hydrocarbon gases increased by 5.9 percent to 273.6 thousand tons.

www.azernews.az  

 

An Uzbek delegation headed by Foreign Minister Abdulaziz Komilov will participate in the next meeting of the Council of Ministers of Foreign Affairs of the Shanghai Cooperation Organization (SCO) which will be held in the Kyrgyzstan's city of Cholpon-Ata on July 12-13.

The Uzbek Foreign Ministry reported that the meeting of foreign ministers of Kazakhstan, China, Russia, Kyrgyzstan, Tajikistan and Uzbekistan will mull preparations for the upcoming session of the Council of Heads of State Member States of SCO, exchange of opinions on current international and regional issues.

The ministers will coordinate and prepare all necessary materials for signing by the Heads of Member States of SCO at the summit of the organization, which is scheduled to be held on September 13 in Bishkek.

Among these documents are the draft of Bishkek Declaration of Heads of Member States of SCO and action plan for 2013-2017 to implement the provisions of the Treaty on Long-Term Good-Neighborliness, Friendship and Cooperation between the Member States of the SCO dated 2007.

trend.az  

 

Current issues of the Uzbek-Georgian cooperation in various fields, as well as under international organizations, were discussed by the representatives of the Ministries of Foreign Affairs of Uzbekistan and Georgia during the next round of political consultations that were held yesterday in Tbilisi, the press service of the Ministry of Foreign Affairs of Uzbekistan reported.

"The exchange of views on different issues of international and regional character was also carried out during the discussions," the report said.

The diplomatic relations between Uzbekistan and Georgia were established in 1994. Since 1997, the embassy of Georgia has been active in Tashkent. The legal base of bilateral cooperation includes about 80 documents. A joint intergovernmental commission on cooperation between Uzbekistan and Georgia is also active.

More that than 3,000 citizens of Georgia live in Turkmenistan. The Georgian Megobroba (Friendship) cultural centre also started its work in Uzbekistan in 1994.

www.xinhuanet.com  

 

Chinese Foreign Minister Wang Yi will pay an official visit to Kyrgyzstan, Uzbekistan and Turkmenistan at the invitation of his Kyrgyz counterpart Erlan Abdyldaev, Uzbek counterpart Abdulaziz Kamilov and Turkmen counterpart Rashid Meredov, a Foreign Ministry spokeswoman said on Monday.

During Wang's visit to Kyrgyzstan, he will also attend a meeting of the Council of Foreign Ministers of the Shanghai Cooperation Organization, spokeswoman Hua Chunying said at a regular press briefing.

The entire trip will run from July 12 through July 19.

www.azernews.az  

 

Uzbekistan plans to attract $104 million credit from the Asian Development Bank (ADB) for the modernization of electricity accounting system in five regions of the country, a representative of the State Joint-Stock Company (SJSC) Uzbekenergo told Trend last week.

The credit is planned to be used for the modernization of electricity accounting system in Andijan, Namangan, Ferghana, Kashkadarya and Surkhandarya provinces.

According to the interlocutor of the agency, currently the preliminary consent of the bank's management for credit granting has been received. A negotiation process between the Uzbek government and ADB, in which the project's details and credit granting conditions are discussed, are being carried out.

It is estimated that the project will cost about $ 218 million. With the credits of ADB it is planned to purchase and install the automated system of monitoring and accounting of electricity and 2.6 million units of electricity accounting devices for the consumers of 0.4 kW networks.

Uzbekistan will allocate $114 million for the implementation of this project.

In September 2011, ADB provided a $150 million credit to Uzbekistan for the modernization of electricity accounting system in Bukhara, Jizzakh and Samarkand provinces.

The project, worth $200 million provides for the purchase and installation of one million units of electricity accounting in the 0.4 kW consumer networks in these three provinces of the country.

The credit is allocated from the ordinary resources of the bank for 25 years, including a five-year grace period.

Funding of the project in addition to the ADB credits is funded by the Government of Uzbekistan in the amount of $50 million.

It was earlier reported that the State Joint-Stock Company Uzbekenergo - the national power network operator of Uzbekistan, implements a program on modernization of the accounting system of electricity, worth about $ 800 million.

In total, it is planned to install 4.5 million electricity accounting devices for consumers in the 0.4 kW networks throughout the country.

According to calculations, the program's realization will allow to reach the energy economy in the residential sector in the amount of 2.75 billion kWh and reduce greenhouse gas emissions to 1,935 million tons annually.

According to official statistics, in 2012 Uzbekistan increased the production of electricity by 0.2 percent in comparison with 2011 - up to 52.534 billion kilowatt-hours.


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

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