American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
 
December 26, 2014 - January 2, 2015
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Dear AUCC Members and Friends:

 

Happy Holidays and best wishes for a prosperous New Year! 

 

We would like to express our gratitude to all AUCC members who, through all these years, have proven to be Uzbekistan's true allies and have been nothing but dedicated, reliable, honest and most conscientious business partners inspired to expand the bilateral relationship, business climate and promote development to enhance the lives of the people of Uzbekistan and the US.  

 

Our companies recognize that despite the global economic slowdown, Uzbekistan has managed to secure successfully greater macroeconomic stability and growth.  We applaud the Government of Uzbekistan for their continuous process to improve the operating business environment that US companies benefit from and fiscal discipline that has enhanced economic growth.  We greatly appreciate our own US Government for their continuous dialogue with their Uzbek counterparts on how to use trade and investment engagement as a pillar of the bilateral relations.

 

We stand ready to use our business acumen to facilitate the Uzbek and US Governments' efforts to attract more American companies and helping those who are already here generate even more success stories for the world to hear. We hope for the US and Uzbek Governments' support in helping us multiply our achievements and generate more projects and contracts that will make our nations achieve greater prosperity, stability and higher rates of development. 

 

Happy Holidays!  May 2015 bring greater prosperity to the American and Uzbek people. 

 

Sincerely, 

 

Carolyn Lamm, AUCC Chairperson

Timothy McGraw, AUCC President

 

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
Uzbekistan to allocate funds for investment projects in 2015
Russia to take used nuclear fuel out of Uzbekistan
Uzbekistan to mitigate Aral Sea environmental catastrophe
Uzbekistan, Kazakhstan agree to expand finished products supply
Kazakhstan & Uzbekistan Autos Report 2015

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.

Trend

December 28, 2014 

 

Uzbekistan plans to allocate $908.1 million from the country's Fund for Reconstruction and Development for the implementation of 34 projects included in the state investment program-2015.

The country's investment program, which includes the projects of energy, oil and gas and chemical industries, metallurgy and transport infrastructure with a total cost of $19.03 billion, approved by President Karimov's special resolution.

The main volume of the fund's loans is planned to be allocated to implement the projects in the fuel-energy sector worth $571.3 million, the chemical industry - $169.8 million and transport sector - $60.6 million in 2015.

The Uzbek Fund for Reconstruction and Development was established in 2006 for financing and co-financing the projects included in the state investment program.

The fund is exempt from all taxes, levies, duties and compulsory contributions to the state targeted funds, except for the single social payment.

The fund's loans are allocated for a period of 7-15 years, including a grace period of three to five years. The rate is 2.25 percent.

The founder of the fund is the government represented by the finance ministry. Currently, the fund's authorized capital is formed in the amount of $ 15 billion.

 

Trend

January 2, 2015 

 

Russia will soon take the highly enriched used nuclear fuel out of Uzbekistan, a representative of the Uzbek government told Trend.

The used nuclear fuel, also called the spent nuclear fuel, is a nuclear fuel that was irradiated in a nuclear reactor.

The source told Trend that an intergovernmental agreement was signed by Uzbekistan and Russia in April 2014, stipulating the return of the Russian-made highly enriched used nuclear fuel to Russia for its further processing.

The nuclear fuel will be taken out of the Uzbek research reactor IIN-ZM as an UO2SO4 solution. The highly enriched used nuclear fuel will be taken to Russia for temporary storage and its subsequent processing.

Russian Federal Assembly's lower house the State Duma and its upper house the Federation Council passed a law on ratification of the mentioned agreement in December 2014. The law was then signed by the Russian President Vladimir Putin.

Currently, Uzbekistan has highly enriched irradiated liquid nuclear fuel in its reactor IIN-ZM of the enterprise FOTON, near the country's capital of Tashkent.

Some 30 liters of the used nuclear fuel contains about 5,000 grams of 90-percent enriched uranium.

The reactor, its equipment and fuel were manufactured by the enterprises of the Ministry of Medium Machine-Building Industry of the USSR.

The reactor was commissioned in 1975. Since 2012, Uzbekistan has been developing a plan for decommissioning of the IIN ZM reactor.

However, the country has no conditions to meet the required standards of the International Atomic Energy Agency (IAEA) to store the liquid fuel.

In 2012, Uzbekistan and Russia signed an intergovernmental agreement to cooperate in taking the irradiated nuclear fuel of research reactors to Russia.

Following the implementation of the agreement, Uzbekistan will no more have highly enriched nuclear fuel.

Under the document, the irradiated fuel from the research reactors in Uzbekistan will be taken to Russia for disposal and replacing with low-enriched fuel, and then will be consequently returned to Uzbekistan.

Uzbekistan is a party to the Treaty on the Non-Proliferation of Nuclear Weapons and the Comprehensive Nuclear-Test-Ban Treaty.

 

AzerNews  

December 31, 2014

 

Uzbekistan has decided to allocate $3.05 billion to the mitigation of an environmental catastrophe in the drying Aral Sea basin.

Such a decision is based on a governmental decree released on December 29.

The document contains a list of 16 national projects worth $2.971 billion and a list of regional projects with a total cost of $80.2 million. Financing the projects will be implemented through loans recieved from international financial institutions in the amount of $2.15 billion. Uzbekistan will also play a role in financing the projects.

An agreement to allocate the funds was reached during an international conference titled 'Development of cooperation in the region of Aral Sea basin on mitigation of impact of the environmental catastrophe' held in Urgench, Uzbekistan in late October this year.

Aral Sea, located on the border of Kazakhstan and Uzbekistan, in the center of the Central Asian deserts, was the world's fourth largest lake till 1960. However, over the past 40 years the sea has shrunk by almost twofold, the water level has fallen by 18 meters, the volume of water in the sea has decreased fivefold and its salinity has increased.

Saving the Aral Sea is one of the serious problems of the Central Asian region and without its solution it is difficult to talk about ensuring sustainable development in the region.

Today the Aral Sea is a devestated zone. Its consequences have directly affected the lives and health of hundreds of thousands of people, and have an adverse impact on the economic, social and environmental situation in the region.

In order to solve this problem and to prevent the catastrophic subsequences, five Central Asian countries-Kazakhstan, Uzbekistan, Turkmenistan Kyrgyzstan and Tajikistan established the International Fund for saving the Aral Sea in 1993. Since 2008, this fund has been enjoying the status of an observer under the UN General Assembly. The total contribution of the member states of the Aral Sea fund to the implementation of various projects in 2003-2010 amounted to over $2 billion.

Currently, the third program developed for 2011-2015 years is being implemented. This program was developed by Executive Committee of the fund in cooperation with UN organizations, World Bank, Asian Development Bank, European Union, as well as the governments of various donor countries. Some $8.5 billion has been allocated to the implementation of over 300 projects included to this program.

Local experts believe that the shoaling problem of the sea should be resolved with the active participation of international organizations, on the basis of universally recognized norms of international law and the interests of all states in the region.

They think the creation of a special international group of experts which in collaboration with the UN and its agencies would develop a comprehensive and international legal document on ways of resaving the Aral Sea.

Developing a special UN program to deal with the Aral Sea and to establish a partnership with the UN interregional center on climate change is among other options as well.

 

AzerNews  

December 29, 2014

 

Uzbekistan and Kazakhstan have agreed to expand mutual supplies of finished products in the first quarter of 2015.

The agreement was made at the recent meeting of the Uzbek-Kazakh intergovernmental commission on bilateral cooperation. The meeting was held mainly to discuss the expansion of bilateral trade-economic cooperation.

During the meeting, the sides discussed different aspects of the Kazakh-Uzbek cooperation in water-energy sector, agro-industrial complex, industrial and gas sectors.

The participants of the meeting said the two countries should intensify their cooperation in the related areas. In particular, Uzbekistan can create favorable conditions to purchase the goods of famous brands, produced in the country.

The meeting was attended by Kazakh First Deputy Prime Minister Bakytzhan Sagintayev and Uzbek First Deputy Prime Minister and Finance Minister Rustam Azimov.

Kazakhstan is among the top three trade partners of Uzbekistan with a share of 14.4 percent of a total volume of the foreign trade turnover of the country.

The trade turnover between the two countries increased by 18 percent in 2013 reaching $3.244 billion. In the first 10 months of this year, the trade turnover between them increased by 25 percent reaching $3.1 billion.

Uzbekistan mainly exports natural gas, foodstuffs and chemical products to Kazakhstan and imports ferrous and non-ferrous metals and chemical products from the country.

There are 180 enterprises with Kazakh capital in Uzbekistan, including 152 joint ventures and 28 companies.

The offices of four Kazakh firms and companies have been accredited at the Uzbek Ministry of Foreign Economic Relations, Investments and Trade.

 

ClickPress  

January 2, 2015

 

New Transportation research report from Business Monitor International is now available from Fast Market Research

BMI's outlook on auto production and sales in Kazakhstan and Uzbekistan remains positive, despite a slowdown in sales figures in the first eight months of 2014. Both countries boast solid macroeconomic fundamentals and both are seeing strong demand for cars from their citizens.

Turning to production first, Kazakh auto production looks set for strong growth over BMI's five-year forecast period to 2017. This reflects new production plans by carmakers Toyota Motor and Russia's AvtoVAZ and Kazakh AutoBIPEK.

Kazakh auto production looks set for strong growth over BMI's forecast period to 2018. We estimate production to have grown in 2014 by 9.5%, increasing to 15.2% in 2015. B MI believes Kazakhstan should be well positioned to continue attracting investment from auto manufacturers. Domestic sales are robust, and the country is a viable location for export production. We therefore maintain a bullish outlook on production growth over the long term.

 

Full Report Details at;

http://www.fastmr.com/prod/912345_kazakhstan_uzbekistan_autos_report_2015.aspx?afid=301

 

In June 2014, Toyota Motor Corporation started the production of the complete knock-down (CKD) of the Fortuner sports utility vehicle (SUV) at Saryarka AvtoProm (SAP)'s Kostanay plant in Kazakhstan. The move marks the beginning of production by the automaker in Central Asia. Nearly 3,000 vehicles will be manufactured annually at the plant, where SAP has recruited 100 more employees.

On the 1 October, the CEOs of 'AvtoVAZ' and 'Auto BIPEK' signed an agreement on strategic cooperation in the presence of Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev. AvtoVAZ will construct a factory in Kazakhstan with Azia Avto. The Lada Vesta will be produced at the site from 2016. The companies intend to produce around 120,000 units a year at the new factory.

For Uzbekistan, BMI is generally upbeat on the outlook for auto production over the forecast period. For 2014, we are targeting a 7.6% year-on-year (y-o-y) increase in production with total units rising to 301,096.

The Kazakhstan & Uzbekistan Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s Kazakhstan & Uzbekistan Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Kazakhstan, Uzbekistan.

 

Key Benefits

 

* Benchmark BMI's independent automotives industry forecasts on Kazakhstan, Uzbekistan to test other views - a key input for successful budgetary and planning in the Kazakhstani, Uzbekistani automotives market.

* Target business opportunities and risks in the Kazakhstani, Uzbekistani automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Kazakhstan, Uzbekistan.

 

About Fast Market Research

 

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

 

 


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Chamber of Commerce
 
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phone: 202.509.3744
 
[email protected]

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