uzbekistan.org  

 

The Republic of Uzbekistan achieved  a major victory in Metal-Tech Ltd. v. The Republic of Uzbekistan, an investment arbitration before the World Bank's International Centre for Settlement of Investment Disputes (ICSID).

In a unanimous award dated October 4, 2013, an arbitral tribunal comprising Gabrielle Kaufmann-Kohler, John Townsend, and Claus von Wobeser refused jurisdiction over Metal-Tech's request for more than US$170 million for alleged treaty violations, finding that Metal-Tech made corrupt payments to obtain its alleged investment in the Uzbek molybdenum industry. The claim, which Metal-Tech brought pursuant to the Israel-Uzbekistan bilateral investment treaty (BIT), is the first investment treaty case ever to be dismissed on corruption grounds; the only other ICSID case to be dismissed on that basis is World Duty Free v. Kenya, which was brought pursuant to a contract rather than a BIT.
Uzbekistan proved its allegations of corruption through the oral testimony of a key Metal-Tech witness and other circumstantial evidence of corruption. At the hearing on jurisdiction and the merits, Metal-Tech's witness admitted that Metal-Tech paid approximately US$4 million to three alleged consultants pursuant to agreements that predated Metal-Tech's investment. The tribunal thus concluded that Metal-Tech made its investment in violation of Uzbek law and the legality requirement in the BIT.
In another important ruling, the tribunal also agreed with Uzbekistan that Article 10 of its Foreign Investment Law on Guarantees does not entitle an investor to commence arbitral proceedings before ICSID. Several investors recently have raised ICSID claims against Uzbekistan based on this provision. Uzbekistan intends to rely on the tribunal's decision in Metal-Tech to defend against these claims.
This landmark award is a complete victory for Uzbekistan and a vindication of its investment framework, which has contributed to investment inflows while reasonably expecting investors to follow the rules. This is an important decision which demonstrates that the conduct of investors matters in the investment treaty context. An investor whose investment is tainted by corruption cannot present claims to an international tribunal about alleged State misconduct. 

worldbank.org  

 

February 10, 2014

 

Laura Tuck, World Bank Vice President for Europe and Central Asia, visited Uzbekistan on February 7-8. This was Ms. Tuck's first visit to Uzbekistan since becoming regional Vice President in September last year. The visit focused on the World Bank's ongoing partnership with Uzbekistan as well as priorities going forward. During the visit, Ms. Tuck held discussions with high-level government officials and visited a health project supported by the World Bank.

"We are pleased to see that Uzbekistan has demonstrated strong growth in the last several years, and that living standards of people in the country have clearly improved," said Laura Tuck. "We appreciate our long-term cooperation with Uzbekistan, which aims to ensure that the growth is sustainable and its benefits are shared across the population."

During the meetings with high-level government officials, Ms. Tuck reviewed the World Bank Group's current Country Partnership Strategy with Uzbekistan for 2012-2015, and noted that its implementation is largely on track, including provision of analytical and advisory services and delivery of projects. She also discussed the World Bank's cooperation with the government on the long-term national development vision "Uzbekistan Vis ion 2030", aimed at helping the country move to upper-middle income country status. Issues of water and energy in Central Asia were also discussed.

While recognizing the government's achievements in maintaining stable economic growth, sound fiscal management, and low level of external debt, Ms. Tuck also discussed issues where further progress is needed. "One of the areas where we would like to continue working with the government is greater openness and transparency, including better access to economic data," said Ms. Tuck.

As part of the trip, Laura Tuck also visited one of the primary healthcare clinics in Tashkent that participated in the World Bank-financed Health II Project. This project, which aimed to improve the quality and overall cost effectiveness of healthcare services in Uzbekistan, helped to deliver new medical equipment to more than 2,000 rural health clinics and provide training for almost 4,000 general health practitioners. One of the most important achievements of the project is its contribution to the introduction of per capita financing for primary healthcare.

Uzbekistan joined the World Bank in 1992. The World Bank's mission in the country is to improve people's livelihood by supporting economic reforms, contributing to the modernization of the country's social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan. The World Bank's current commitments to Uzbekistan amount to over US$1 billion.

worldbank.org  

 

February 7, 2014

 

uzdaily.com  

 

February 13, 2014

 

Trade turnover between Uzbekistan and China exceeded US$4 billion in 2013, spokesman of Ministry of Commerce (MOC) of China Yao Jian said.

Xinhua agency reported quoting Yao Jian said that trade turnover between two nations grew by 58.3% year-on-year in 2013.

Yao Jian stated that trade turnover between Uzbekistan and China exceeded US$4 billion for the first time.

He underlined that it is expected that bilateral trade turnover between two states will reach US$5 billion point by 2017.

Chinese official said that China is interested in participation in projects on developing thermal power stations and non-traditional source of energy in the Central Asian states.

Yao Jian said that the Chinese official will adopt necessary measures to simplify trade and investments, spread electronic forms of trade and use of yuan in bilateral trade with Central Asian states.

China is ready to export of high technologic and machinery products to boost investment and technical-economic cooperation with Central Asia, he said.

China is also hopes to develop trade of raw oil and natural gas with the Central Asian states along with imports of agriculture products. 

uzdaily.com  

 

February 11, 2014

 

Trade turnover between Uzbekistan and Iran exceeded US$350 million in 2013, Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran to the Republic of Uzbekistan Mr. Ali Mardani Fard said on 10 February at the press conference in Tashkent.

Iranian envoy said that the statistic data of Uzbekistan and Iran on trade turnover differ, but summarizing them, it can be said that trade turnover between two states exceeded US$350 million.

Ali Mardani Fard added that the level of economic cooperation between Uzbekistan and Iran does not correspond to potential of two nations. He said that Uzbekistan and Iran were planning to increase trade turnover up to US$1 billion, but sanctions against Iran hampered this plans.

Recalling progress in negotiations between Iran and western nations, he said that trade turnover between two nations will grow once sanctions are lifted.

Ambassador Ali Mardani Fard expressed his assurance that trade turnover will be higher this year and in future it will gradually grow up to planned level of US$1 billion.

Envoy underlined that economies of Iran and Uzbekistan always fulfilled each other. He said that two states signed agreements in transporting, trade and economy to develop mutual relations, he said.

Ambassador recalled that Uzbekistan and Iran signed agreements on air transportation, international automobile transportation, transit, railway transportation, etc.

The countries also signed agreement on cooperation of customs bodies, avoiding double taxation, mutual encouragement and protection of investments and others. He said that overall about 50 inter-governmental and inter-department agreements on cooperation in various areas were signed between Uzbekistan and Iran in 22 years.