American-Uzbekistan Chamber of Commerce

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In This Issue:
GM Looks to Grow Successful Uzbekistan Joint Venture
April 14, 2016

GM Uzbekistan, a joint venture of General Motors and the Uzbek automaker Uzavtosanoat, plans to significantly increase production in coming years and expand its local range as well.
Takhirjon Jalilov, deputy chairman of Uzavtosanoat, the JV will pay particular attention to manufacturing SUVs and large urban sedans. But the companies also will devote resources to producing a new version of the Chevrolet Aveo compact.
The JV recently announced plans to invest $104 million to launch mass production of the new Aveo, which will be dubbed the T-250 in Uzbekistan and will replace the Nexia model in the local market. Specifications have been disclosed.
Production is expected to begin in late May or early June at the GM Uzbekistan plant in Asaka in the Andijan region of Uzbekistan, a former Soviet republic located in Central Asia.
Output is pegged at 73,600 units a year, with an unspecified number designated for export.
The project will be fully funded by GM Uzbekistan, of which Uzavtosanoat owns a 75% share and GM, 25%.
GM Uzbekistan's current range of 12 models includes the Nexia, Cobalt, Lacetti, Gentra and Malibu sedans; Matiz and Spark subcompacts; Captiva SUV, Orlando minivan, Damas minibus and its Labo cargo modification.
The plant's design capacity is 250,000 cars per year. Output last year totaled 245,700 cars, roughly equal to 2013. Results for 2015 have not yet been announced.
GM Uzbekistan also is expanding into new markets. In the past most production was sold in Russia and former Soviet Union satellite countries, but in recent years the JV has paid more attention to increasing sales in Middle Eastern markets including Egypt, Algeria, Iran, Saudi Arabia, Kuwait, Qatar, Lebanon, Jordan and the United Arab Emirates as well countries in Central and Southern Africa.

Kazakhstan, Uzbekistan mull main areas of co-op
April 15, 2016

Kazakhstan and Uzbekistan have discussed the main areas of cooperation between the two countries in trade, economic, transportation, logistics, cultural and humanitarian spheres, Kazakh president's press service said.
The discussions were held between Uzbekistan's President Islam Karimov and his Kazakh counterpart Nursultan Nazarbayev who is on a working visit to Tashkent.
Moreover, the presidents discussed the regional security issues, as well as the summit of the Shanghai Cooperation Organization (SCO) to be held in Tashkent.
Kazakhstan's president emphasized the historically friendly relations between the two countries.
The goal is to strengthen these relations and mutual trust, he added.
Karimov, in turn, talked about the sincere friendly relations, mutual respect and support between Kazakhstan and Uzbekistan.

Turkmenistan stands for strengthening ties with Uzbekistan - Berdimuhamedov
April 15, 2016

Turkmenistan stands for strengthening relations with Uzbekistan, said Turkmenistan's President Gurbanguly Berdimuhamedov.
He made the remarks during the meeting with the Uzbek ambassador Jawhar Izamov, said the message issued by the Turkmen government.
Turkmenistan's president noted that the country pays special attention to the strengthening of friendly relations with its neighbors, including Uzbekistan, with whom the country is associated not only by geographical proximity but also by historical roots, common culture, language and traditions of the two brotherly peoples, said the message.
The parties exchanged views on perspectives of bilateral partnership's further development, according to the message.
The spheres of trade and economy, fuel and energy, transportation and communication, agriculture, tourism were called among the priority areas, said the message.
The two states are connected with several major projects. In particular, a gas pipeline from Turkmenistan to China through the territory of Uzbekistan and Kazakhstan was commissioned in December 2009.
Ashgabat and Tashkent regularly discuss such issues as the situation in Afghanistan, the problems of the Aral Sea and the problems of transboundary rivers at the highest level.

Uzbekistan to sell state-owned shares in two commercial banks
April 15, 2016

The government of Uzbekistan has offered for sale state-owned stakes in the country's two commercial banks, the Novosti Uzbekistana news agency reported.  
The state shares of Aloka bank (47.6 percent) were estimated at $42.7 million and 63.1 percent of shares of Turon bank at $29.7 million. 
Foreign investors that would acquire the stakes will enjoy the following preferences: 
- Joint stock companies with foreign capital between 15 and 33 percent of the charter capital enjoy exemptions from the profit tax, property tax, the tax for social infrastructure development, and deductions to the National Road Fund. 
- Also, dividends on shares of foreign investors in Uzbek joint stock companies are exempted from taxes until 1 January 2020.  
In accordance with the President of Uzbekistan's decree of December 21, 2015, joint stock companies in Uzbekistan must ensure that at least 15 percent of their authorized capital to belong to foreign investors.  
In the near future 10 commercial banks in Uzbekistan plan to attract foreign capital into their charter capitals. 
The Uzbek Government's decree of 10 February 2016 included Asaka Bank, Kishlok Kurilish Bank, Agrobank, Ipoteka Bank, Uzpromstroibank, and Microcreditbank in the list of 25 joint stock companies that must sell at least 15 percent of state-owned shares in the charter capital to foreign investors this year.
According to the Central Bank of Uzbekistan, the country now has 26 commercial banks, including three state-owned banks, 11 joint stock commercial banks, seven private banks, and five banks with foreign capital.

USMEF: U.S. beef, pork highlighted at WorldFood Uzbekistan
April 13, 2016

U.S. beef and pork were recently showcased at WorldFood Uzbekistan 2016, allowing the U.S. Meat Export Federation (USMEF) to gain further insight into this emerging market. Participation in WorldFood Uzbekistan was supported by the USDA Market Access Program (MAP), the Beef Checkoff Program and the Pork Checkoff.
A country of 30 million people with a diverse and fast-growing economy, Uzbekistan has few restrictions on imports of U.S. beef products, but does not allow U.S. pork imports due to porcine epidemic diarrhea virus (PEDV) concerns. Yuri Barutkin, USMEF representative in Russia and the surrounding region, discusses the market in more detail in the attached audio report, noting that it could hold significant potential for U.S. red meat exports.

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.
The American-Uzbekistan
Chamber of Commerce
1030 15th Street, N.W.,
Suite 555W
Washington, DC 20005
phone: 202.509.3744
[email protected] 

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