27 April, 2006

Politics
Uzbek leader comments on talks with visiting Indian premier
Uzbek leader says Afghanistan remains main source of drugs
India, Uzbekistan must fight terror collectively: PM
Uzbek, Russian speakers meet in Russia
Upper house of Russian parliament ratifies Uzbek-Russian treaty
Chinese premier meets Shanghai body defense ministers

Economics
Uzbek president invites Indian companies to work oil and gas fields
India to invest in Uzbek energy sector
Round-table addresses reforms in Uzbek taxation system
Uzbek railroad net profit up 25pct in 2005
General Electrical products presented in Tashkent
New equipment launched at Ferghana oil processing plant

Society
Exhibition to present German cultural programme
Exhibition on China opens in Uzbek capital

POLITICS

UZBEK LEADER COMMENTS ON TALKS WITH VISITING INDIAN PREMIER

President of Uzbekistan Islam Karimov commenting talks with Indian Prime Minister Manmohan Singh said the meeting was very fruitful.

Uzbek leader said: "I would like to emphasize that we look at this visit as a significant event in the social and economic life of Uzbekistan and the development of stronger Uzbek-Indian relations."

"Another exchange of opinions took place on security and stability in our region, the coordination of our efforts in countering international terrorism, extremism and drug trafficking. We conducted a detailed dialogue with the Indian prime minister on a wide range of issues of bilateral relations and on regional and global questions," Uzbek head said. He said he would like to underline that our positions are close and our views generally coincide on practically all discussed issues.

Uzbekistan welcomes the participation of India as an observer in the Shanghai Cooperation Organization. Uzbekistan confirmed its position on India's aspiration to become a permanent member of an expanded Security Council of the UN, he said.

Karimov said: "As regards bilateral relations, I would like to note that we share the same opinion that it is important for India and Uzbekistan to develop their collaboration further. First of all, in those spheres where there are mutual interests, and trade and investment cooperation must be stepped up and developed. In such spheres as information and communications technology, oil and gas, light industry, textiles, agriculture, pharmacy, tourism, entrepreneurship and small business, culture and education, and personnel training for Uzbekistan in various spheres."

The sides have agreed to create a joint Uzbek-Indian intergovernmental commission and working groups on oil and gas, and information technologies.

UZBEK LEADER SAYS AFGHANISTAN REMAINS MAIN SOURCE OF DRUGS

President of Uzbekistan Islam Karimov has called efforts being taken to stop drug trafficking from Afghanistan insufficient.

"As long as sources for the production of drugs in Afghanistan are not eliminated, all other moves can be regarded as lame," he said at a Wednesday 26 April news conference following talks with Indian Prime Minister Manmohan Singh in Tashkent.

"Drug trafficking in our area is not declining and the greatest reason for this is the unresolved problem of Afghanistan. Afghanistan is the main source of drugs," Karimov said. Speaking of cooperation with India in resisting terrorism he said: "Uzbekistan supports the well-considered and balanced policy that the Indian government pursues on questions of peace and stability on a global scale as well as in its own part of the world."

INDIA, UZBEKISTAN MUST FIGHT TERROR COLLECTIVELY: PM

Asserting that stability and prosperity of Central Asia was in the interest of India as well as the world, Prime Minister Manmohan Singh on Wednesday said India and Uzbekistan should fight the menace of terrorism collectively.

Speaking at the banquet hosted in his honour by Uzbek President Islam Karimov, he asked Tashkent to lead the way in ensuring peace and stability in the region.

"Our common objective is to seek peace and prosperity for our people. Terrorism is a menace that must be fought collectively," Singh said.

He noted that stability and prosperity of Central Asia "is in the interest of not just India but the world community as a whole. This goal cannot be reached without Uzbekistan, which must lead the way."

Uzbekistan, which shares border with Afghanistan, is facing terrorism in some parts from extremist elements from Afghanistan. India faces terrorism sponsored by Pakistan. Earlier in the day, Singh and Karimov shared concerns over terrorism and extremism as they discussed the matter.

UZBEK, RUSSIAN SPEAKERS MEET IN RUSSIA

Speaker of Russian State Duma Boris Gryzlov met his Uzbek counterpart Erkin Khalilov on 26 April in Saint Petersburg, Russia.

Speaker of Legislative Chamber of Oliy Majlis of Uzbekistan Erkin Khalilov is visiting Russia to participate in the events dedicated to 100th anniversary of State Duma of Russia.

The sides discussed issues on participation of Uzbek delegation in celebrations and inter-parliamentarian cooperation, as well as international issues of mutual interest.

UPPER HOUSE OF RUSSIAN PARLIAMENT RATIFIES UZBEK-RUSSIAN TREATY

Council of Federation of Russian parliament ratified agreement on allied relation between Uzbekistan and Russia on Wednesday, 26 April.

The document was signed in Moscow in November 2005 and is aimed at development of cooperation of the two countries in ensuring national, regional and international security.

The document says on development of cooperation of the sides to ensure national, regional and international security, strengthening of peace and stability.

The agreement said the sides will assist each other in case of external aggression. The document envisages regular consultations between heads of states, parliaments, governments, Security Councils and other departments of the countries.

The countries will also develop interaction in political, military and military-technical, trade-economic and humanitarian spheres.

State Duma (lower house of parliament) of the Russian ratified agreement on allied relations between Russia and Uzbekistan on Friday, 21 April.

Uzbek parliament's both chambers already ratified the agreement.

CHINESE PREMIER MEETS SHANGHAI BODY DEFENCE MINISTERS

Chinese Premier Wen Jiabao has called for member countries of the Shanghai Cooperation Organization (SCO) to strengthen coordination and cooperation so as to jointly deal with new threats and challenges.

Meeting with SCO defense ministers Wednesday, Wen called for the member countries - China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan - to jointly maintain regional peace, security and stability.

Wen said the six countries should work together to create a peaceful, cooperative, open, prosperous and harmonious environment for development, Xinhua reported.

Since the establishment of the SCO five years ago, member countries had upheld the "Shanghai Spirit" of mutual trust and benefit, equality, consultation, tolerance of diversity and the pursuit of common development.

Wen said the neighboring countries had made outstanding achievements in promoting friendship and mutually beneficial cooperation, the report added.

He said defense and security cooperation was a priority in SCO cooperation.

ECONOMICS

UZBEK PRESIDENT INVITES INDIAN COMPANIES TO WORK OIL AND GAS FIELDS

President of Uzbekistan Islam Karimov invited Indian companies to cooperate in developing Uzbekistan's natural gas and oil fields.

Speaking after talks with visiting Indian Prime Minister Mahmohan Singh, Karimov said his nation would welcome 50-50 sharing of energy supplies with Indian companies in exchange for allowing the companies access to Uzbekistan's sizable gas reserves. The Central Asian country has the third-largest natural gas reserves in the former Soviet Union after Russia and Turkmenistan, extracting 55 billion cubic meters (1.9 trillion cubic feet) of natural gas a year.

"We see Uzbekistan as an important element in any effort to optimally utilize the energy resources of Central Asia," Singh said.

During Singh's visit, Uzbek national oil and gas company, Uzbekneftegaz, and India's Gail Ltd. agreed on a deal to jointly build pipelines and produce liquefied natural gas. Details of the deal were not disclosed.

Karimov and Singh also expressed determination to fight international terrorism "in all forms and manifestations." He also said Uzbekistan supports India's bid to become a permanent UN Security Council member.

INDIA TO INVEST IN UZBEK ENERGY SECTOR

Uzbekistan on Wednesday agreed to offer Indian companies exploration facilities in the hydrocarbon sector.

The deal came after a meeting between Uzbek President Islam Karimov and visiting Indian Prime Minister Manmohan Singh. Under the agreement, the two countries will share the extracts from the exploration equally.

In a joint news conference, Karimov said the two sides would set up working groups in oil and gas sectors.

"Uzbekistan, based on its cooperation with a number of countries, particularly China, South Korea, Russia and some countries of the European Union, is ready to allocate geological territory to Indian companies to explore the resource of gas, oil and other hydrocarbons," Karimov said, according to the semi-official Press Trust of India said. The two sides signed seven agreements including one for cooperation in oil and natural gas between India's Ministry of Petroleum and Natural Gas and Uzbekistan's Uzbekneftegaz. Another deal was signed between India's GAIL and Uzbekneftegaz.

India is looking to diversify its energy needs, most of which are met by imports from the Middle East. Uzbekistan's ties with the West have been strained by criticism over Tashkent's human rights record.

The "next step would be signing of document for specifically issuing allocation on basis of concessions to Indian companies of territories for further allocation of hydrocarbon resources in Uzbekistan," Karimov said.

Uzbekistan is estimated to have 594 million barrels of proven oil reserves and estimated 66.2 trillion cubic feet of natural gas reserves.

ROUND-TABLE ADDRESSES REFORMS IN UZBEK TAXATION SYSTEM

A round-table "Reforming Taxation System of Financial Institutions: Problems and Prospects" was held in the conference hall of Uzbekistan Banking Association on 27 April.

The round-table was aimed at discussion of the issues such as current system of taxation of commercial banks, insurance and leasing companies, current issues and ways for optimization of taxation of these financial institutions. In the meantime, a target is set to develop coordinated position on the measures required to reform financial institutions taxation system and remove inconsistencies between tax legislation and normative base of the Central Bank of the Republic of Uzbekistan.

The round-table is organized by the UNDP Projects "Reforming Tax System and Developing New Revision of Tax Code" and "Improving Tax Administration in Uzbekistan" in partnership with Uzbekistan Banking Association and Akhbor-Rating Interbank Rating Company.

This issue has become pressing due to advancing processes of tax reform in the country, simplification and unification of taxation system. In this regard, the issues of removing the flaws in the taxation system and provision of tax incentives become particularly important for financial institutions. All this will facilitate expansion of lending to real sector of the economy, and development of other financial operations. Aforementioned measures enhance the returns and appeal of financial institutions for investors and shareholders as well as facilitate expansion of their operations, which ultimately is reflected in the greater trust of the population for financial sector of the country. Representatives of the Ministry of Finance, State Tax Committee and Central Bank of Uzbekistan, managers and taxation specialists of 20 commercial banks, representatives of insurance and leasing companies and Banking Association of Uzbekistan will participate in the round-table.

In the course of the meeting, the issues of current system of financial institutions taxation including calculation of income tax, value added tax, property tax, taxation of income (profit) of foreign legal entities of the non-residents of the Republic of Uzbekistan was considered.

Exchange of opinions enabled to develop recommendations and proposals for taxation of financial institutions for submission to government working group in charge of preparation of New Revision of Tax Code.

Irina Golysheva, head of department on tax policy of Finance Ministry, said the existing Tax Code is not document of direct action and some of approaches do not meet general international principles and many privileges create unequal taxation conditions.

She said the tax reform directed to creation of single base on taxation and ensure direct action of the Tax Code, strengthen stimulation role of tax in development of production and rendering services, as well as simplification of tax system, etc.

UZBEK RAILROAD NET PROFIT UP 25PCT IN 2005

Uzbekistan's Temir Iullari, the state railroad company, increased net profits for 2005 by 25.5% to 106.6 billion sum ($US95.7 million), the company said in a press release.

Earnings totaled 470.6 billion sum, up 18.8% from 2004.

Cargo transport grew 1.2% last year to 45.9 million tonnes and cargo turnover grew 0.5% to 18.12 billion tonne-kilometers. Passenger transport dropped 1% to 15.1 million people and passenger turnover grew 5.1% to 2.115 billion passenger-kilometers.

The railroad handles 66% of domestic cargo turnover and nearly 80% of cargo export and import shipments. Uzbekistan has 4,100 kilometers of railroad.

Uzbekistan Temir Iullari was formed in 1994 after splitting from the Central Asia Railroad. It has charter capital of 197.6 billion sum formed from the assets of seven divisions.

GENERAL ELECTRICAL PRODUCTS PRESENTED IN TASHKENT

Dedeman Silk Road Hotel hosted a seminar entitled "Uninterrupted Power Supply. Diesel generator equipments" on 26 April.

The seminar discussed products of General Electrical designed to uninterrupted power supply to telecommunication and computer systems. General Electrical is largest corporation on electricity power.

Evgeniy Miheev, president of Moscow-based Industrial business technologies, said GE is developing and taking its place in market of Uzbekistan for last 10 years. He said that the various sectors of economy and organizations use products of General Electrical to ensure uninterrupted power supply.

NEW EQUIPMENT LAUNCHED AT FERGHANA OIL PROCESSING PLANT

New equipment on cracking of gases to fractions was launched at Ferghana oil processing plant.

Several Uzbek companies installed new equipment at assistance of specialists of Russia's Neftehimnaladka.

New equipment has importance significance in protection of environment. The equipment will produce liquefied gas for needs of population and cars from processed gases. The equipment will produce products for 7 million soums per day and allow to create job for 50 people.

SOCIETY

EXHIBITION TO PRESENT GERMAN CULTURAL PROGRAMME

House of Photography will host an exhibition entitled "Programme of Foreign Affairs Ministry of Germany on preservation of culture" on 6-20 May.

Federal Ministry of Foreign Affairs of Germany has been assisting to preserve cultural heritage worldwide since 1981. Since that time, the programme assisted to realize over 1,200 projects in 130 countries and directed 32.7 million euros to their implementation. The programme helps to restore historic and religious establishments, historic objects and manuscript, equip museums and archives to preserve cultural heritage and others. The aim of programme is to establish originality of developing states and promote cultural dialogue with Germany. The programme is effective tool of foreign policy of Germany in culture and education.

The programme realized project on restoration of Shadi-Mulk-Aga mausoleum in Samarkand, Uzbekistan, within 1997-2005. The exhibition will be sum up this project.

The exhibition will present photos and objects of the projects, implemented within project worldwide.

EXHIBITION ON CHINA OPENS IN UZBEK CAPITAL

National International Cultural Centre is hosting photo exhibition entitled "Pictorial China", which opened on 25 April.

Embassy of China in Uzbekistan, National International Cultural Centre of Uzbekistan and Chinese Cultural Centre of Tashkent city are organizers of the event.

Over 100 works of Chinese photographers presented in the exhibition. The works demonstrate various parts of China and life of Chinese people.