American-Uzbekistan Chamber of Commerce
Week in Review:
December 27, 2013 - January 3, 2014
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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  We invite you to be part of our organization and participate in our activities and events.   

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In This Issue:
Uzbekistan ratifies protocol on use of the CIS free trade zone treaty
New Market Report Now Available: Kazakhstan & Uzbekistan Petrochemicals Report 2014
Uzkommunhizmat announces tender to reconstruct water supply network in Andijan
Central Asian Logistics Seminar

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.  


December 28, 2013


President of Uzbekistan Islam Karimov signed a law "On ratification of protocol on use of the agreement on free trade zone from 18 October 2011 between its member states and Uzbekistan (Minsk, 31 May 2013)" on 27 December 2013.

Legislative Chamber of Oliy Majlis of Uzbekistan passed the law on 29 November 2013 and Senate approved it on 13 December 2013.

The protocol was signed on 31 May 2013 in Minsk, Belarus. The document was signed at the session of the heads of the government of the CIS.

The protocol sets legal mechanisms of interaction of Uzbekistan and member states of the agreement. It sets mechanisms of function of the free trade zone with participation of Uzbekistan. The text of the protocol in Russian language published here.

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 became the ninth member of the treaty.

At the time, Uzbekistan, Azerbaijan and Turkmenistan expressed wish to consider to accession to the agreement. All countries, except Tajikistan and Kyrgyzstan, ratified the agreement. It is expected that they will ratify the document soon.

The agreement will create necessary conditions for full and effective operation of free trade zone in the CIS and create favourable conditions for further integration base on norms of the World Trade Organization.  


December 31, 2013


[Extract.  Read full report here]


Central Asia is a rapidly evolving and growing market for petrochemicals that has been heavily import dependent in recent years. Over the medium term, the two most industrialised countries, Kazakhstan and Uzbekistan, are set to become net exporters with the construction of world-scale complexes likely to stimulate downstream investment in plastic and rubber conversion industries.
In the Central Asia region, only two states are active participants in the petrochemicals sector - Kazakhstan and Uzbekistan. Neither has significant existing ethylene capacity. In fact, their combined cracking capacity of 240,000 tonnes per annum (tpa) is less than that of Nigeria or Egypt. Uzbekistan is landlocked, and hence is faced with considerable transportation costs for its energy exports. Overall demand for chemicals has been on the rise across all sectors of the processing industry. The chemicals and plastics industry has generally maintained an import surplus. Realising the immense potential that lies in refining, petrochemistry and other value-added projects, the government has set forth major development plans.
Kazakhstan Petrochemical Industries (KPI) is pushing ahead with a US$6bn investment to construct an ethane-fuelled petrochemical complex that will include an 800,000tpa ethane cracker and a 500,000tpa propane dehydrogenation (PDH) and polypropylene (PP) plant by 2015. The second stage of the project, due for completion in 2017, should have the following production capacities: 1mn tpa of ethylene, 400,000tpa of low-density polyethylene (LDPE) and 400,000tpa of linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE).
In Uzbekistan, recent developments have concerned the creation of a 50:50 JV between South Korea's KOGAS and Uzbekneftegaz, the Ustyurt gas-chemicals complex, which began construction in 2011 and will have capacities of 400,000tpa polyethylene (PE) and 100,000tpa PP when completed in 2016. This should be followed by a separate Uzbek-Singaporean-Chinese joint venture with capacity to produce 500,000tpa PE and an Uzbek-Chinese joint venture to create a 100,000tpa polyvinyl chloride (PVC) complex in 2016-17.
BMI has made the following observations and forecasts:
- By 2018, Central Asia will have olefins capacities of 2.24mn tpa ethylene and 600,000tpa PP with polymers production consisting of 1.33mn tpa PE, 720,000tpa PP and 100,000tpa PVC.
- Fertiliser will feature as a growth sector and by 2014 Kaspiy Azot will have completed an ammonia-urea complex in the Mangistau Oblast, with capacity of 527,000tpa ammonia.
- Both Kazakhstan and Uzbekistan will have sufficient production to cover domestic needs with a surplus likely to stimulate polymers conversion and boost exports. The Central Asian market is robust and growing fast, providing a sound basis for new petrochemicals capacities.  


January 2, 2014


Uzkommunhizmat agency (Uzbek Communal Service) announced a tender for reconstruction of water supply and sewerage system of Andijan with the starting price of about US$30 million.

In line with tender rules, the winner should rehabilitate sewerage treatment with the capacity of 110,000 cubic meters a day and 46 km of water networks.

The project will be implemented within two years. The bids are received till 7 February 2014 and the results will be announced in the first quarter of 2014.

The project will be financed due to the loan of the Asian Development Bank for US$140 million.

In 2009-2013, the ADB issued four tranches for US$300 million to the Government of Uzbekistan within the programme on improving water supply in rural areas of 11 regions of the country.

The projects will be realized till the end of 2018. Total cost of the programme makes up US$375 million. Uzbekistan will issue US$75 million to implementation of the programme.  


January 2, 2014


With rapidly expanding  economies and economic development in Central Asia, the Central Asian Productivity Research Center will offer a timely seminar focusing on "Understanding The Challenges of Central Asian Logistics"  at 3 PM, Friday, May 16, 2014, at Illinois Institute of Technology's Kent School of Law's

Auditorium, 565 W. Adams St. (just west of Union Station).

Sponsored by the Central Asian Productivity Research Center and Silk Way Airlines, this event is linked with the prominent 9th Annual Silk Road Conference also held on May 16.

Attendees  also  will be invited to the Diplomatic Reception scheduled at 5 PM, courtesy of  Silk Way Airlines.

'The Silk Road is changing rapidly with a new infrastructures, new railroads, taking passengers from the Atlantic to the Pacific coast, new airports,  new highways, and an expanding cobweb of oil and gas lines", state Harry Lepinske, CAPRC


The event is offered without a registration fee. For those

in  the logistics field who plan to attend the day-long Silk

Road Conference, the registration fee is reduced to the

"member" fee of  only US$25.00, which includes breakfast and lunch.


For information:

Phone: 708-246-5556


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