15 May, 2006

Politics
Round-table discusses priority directions of Uzbek foreign policy
SCO FMs to meet in Shanghai today
Egyptian delegation visits Andijan

Economics
Uzbekistan to revoke "indefinite tax breaks" for foreigners
Italian businesspeople consider opportunities in Uzbekistan
Uzbekistan offers incentives to Pakistan’s textile millers
Russian handset retailer opens four outlets in Uzbekistan
Oxus increases holding in Marakand to 85.78%
New chairman appointed to Asaka Bank

POLITICS

ROUND-TABLE DISCUSSES PRIORITY DIRECTIONS OF UZBEK FOREIGN POLICY

Committee on international affairs and inter-parliament relations of Legislative Chamber of Oliy Majlis in cooperation with the Committee on defence and security issues organized a round-table on foreign policy of Uzbekistan.

Representatives of Foreign Ministry, Foreign Economic Relations, Investment and Trade Ministry, Institute of Monitoring of Existing Legislation and MPs participated in the event.

The meeting noted that the Uzbek President Islam Karimov outlined the priorities of foreign policy of Uzbekistan at his speeches at joint session of Legislative Chamber and Senate and the fifth plenary session of Senate.

It was noted that these priorities play key role in ensuring national security and prosperity of Uzbekistan, as well as development of cooperation with other states.

The meeting said participation of Uzbekistan in international organizations like UN, SCO and CIS, EurAsEC and others strengthen position of Uzbekistan in world arena and strengthens stability and progress in Central Asia.

The round-table underlined the agreements on allied relations between Russia and Uzbekistan, which lift relations between states to new level.

The meeting adopted decision to organize quarterly hearings on work on implementation of foreign policy at the Legislative Chamber.

SCO FMS TO MEET IN SHANGHAI TODAY

Foreign Ministers of the Shanghai Cooperation Organization (SCO), six-member regional organization, gathered in Shanghai, China, on Monday, for an annual meeting.

The foreign ministers will attend the regular meeting of the SCO Foreign Ministers' Council, which will pave the way for the SCO summit scheduled for mid June in Shanghai.

The foreign ministers will discuss how to deepen the SCO cooperation in all fields and confer on international and regional issues of common concern.

EGYPTIAN DELEGATION VISITS ANDIJAN

Secretary General of Arab Universities Association doctor Salih Hashim visited Andijan region. This influential international organization unites 173 universities from 22 Arab countries. The purpose of association is to adjust versatile scientific communications, rendering assistance to strengthening of potential of higher educational institutions of Arab world.

“The purpose of the visit to get familiarized with higher educational institutions of Uzbekistan and establishment of scientific contacts”- said Salih Hashim. The theme of the most ancient civilizations of the Central Asia, thinkers and the scientists, occupy special place among the interests of doctor Salih Hashim.

During the visit to Andijan honorary guest meets representatives of a science and education, acquaintance with activities of some higher educational institutions and educational establishments.

ECONOMICS

UZBEKISTAN TO REVOKE "INDEFINITE TAX BREAKS" FOR FOREIGNERS

Uzbekistan will revoke as of July 2007 any tax holidays for foreign investors that were set to run indefinitely, the resolution of the Uzbek government said.

A government resolution said the tax breaks would be revoked on any previous agreement if they had been agreed for an indefinite period and that from now on tax and customs breaks would be offered "only for exactly defined periods".

The government formed a working group to hold talks with the affected companies, the document said, without naming any firms.

ITALIAN BUSINESSPEOPLE CONSIDER OPPORTUNITIES IN UZBEKISTAN

A delegation of Italian businesspeople is visiting Tashkent. In September, 2005 the delegation of the Uzbek businesspeople visited Milan.

For last years trade and economic relations between two countries has been actively developing. One of results of fruitful cooperation was the foundation of the Italian-Uzbek Chamber of Commerce. Its representative office was opened in Tashkent in 2005. 36 companies entered the chamber as members, reports the newspaper "Pravda Vostoka ".

“With great interest we are watching the process of liberalization and privatization in Uzbekistan”, said the Plenipotentiary Ambassador of Italy in Uzbekistan Angelo Persiani.

“Uzbekistan has great potential in all sectors of economy. The Italian-Uzbek Chamber of Commerce is capable to assist its members, and it would be desirable, that it had more members”.

Uzbek and Italian businesspeople have participated in a business-forum that was organized in Tashkent. Prospectives of cooperation in production of goods from silk and cotton to sell in internal and external markets were discussed.

Italian businesspeople are ready to cooperate with large Uzbek enterprises in of oil and gas sector, car manufacturing and steel industry.

UZBEKISTAN OFFERS INCENTIVES TO PAKISTAN’S TEXTILE MILLERS

Pakistani textile millers would get heavy subsidies such as low electricity rates and ample raw cotton from the Uzbekistan to set up their units which would help them increase their exports, well-placed sources said on 11 May.

Sources said that a top official of the Uzbek textile ministry recently met with some of the textile tycoons and leading exporters of Pakistan and handed over the draft of 'terms and conditions', Asia Pulse reported on 15 May.

"A top official from the Textile Ministry of Uzbekistan recently approached us and tried to convince us for shifting our units from Pakistan to Uzbekistan," confirmed a leading exporter of the country on the condition of anonymity.

He said the Uzbek government is agreed to provide every facility to the potential and prospective investors and the offers have compelled some of the leading exporters of textile and its allied products to think seriously over the proposal and terms and conditions. "Some 10 to 15 already closed textile mills would be given to the interested investors in the first phase," sources said, adding that each textile unit consists of 150,000 sq. feet and would be offered to the interested buyers at the cost of US$0.5 million to US$1 million, depending on the proximity of the area.

The Uzbek official had also said during the meeting that electricity cost would be charged only two cents (Rs 1.20 per unit) that is Rs 5-6 per unit in Pakistan, while clean and contamination-free cotton which has the world class quality would be provided to them at subsidized rates.

RUSSIAN HANDSET RETAILER OPENS FOUR OUTLETS IN UZBEKISTAN

Euroset Trade House LLC, Russian's largest mobile handset retailer, opened four communication retail outlets in Uzbekistan on Monday, 15 May.

Euroset expanded its operations to Uzbekistan within its expansion plans to CIS states. Currently, the company has retail outlets in Russia, Ukraine, Belarus, Kyrgyz Republic and Kazakhstan.

Euroset Trade House LLC opened its subsidiary - Euroset LLC - in Uzbekistan, which will represent its interests in the Central Asian state.

Russian company opened first four its retail outlets on 15 May at Navoi shopping area, Alay bazaar, Mustaqillik square and Frunzenskiy Trade Centre.

Euroset is planning to open some 30 outlets in Uzbek capital and another 70 outlets in Uzbek regions. The outlets will trade mobile handsets, digital cameras and other equipment.

Euroset, launched in April 1997, is one of the largest mobile handset retailers and has over 3,100 shops in Russia and other CIS states.

OXUS INCREASES HOLDING IN MARAKAND TO 85.78%

Oxus Gold plc has acquired an additional 2,906,407 ordinary shares of Marakand Minerals Limited, mainly from individual shareholders.

The company said following the acquisition, Oxus has increased its shareholding from 83,753,577 to 86,659,984 ordinary shares representing an increase from 82.91% to 85.78% of the ordinary issued share capital of Marakand.

As consideration for the purchase of the shares, application has been made to the London Stock Exchange for 968,800 new Oxus shares to be admitted to the AIM Market. Dealings are expected to commence in the new ordinary shares at 17 May 2006. The new ordinary shares will rank pari passu with the existing shares of the company. Following the allotment the total issued share capital of the Company will be 298,107,972 ordinary shares.

The Oxus group was established in 1996 and listed on the Alternative Investment Market (AIM) in London in 2001. Oxus' Amantaytau gold mine in Uzbekistan was built in a record ten months. Having poured first gold in December 2003, the oxides operation is currently ramping up to full production of 190,000 oz/pa at a cash cost of US$106/oz. The company has also started a feasibility study for the Amantaytau sulphide mining project which has a current resource of 7.15Mt at an average grade of 11.7g/t. A drilling programme is planned with the objective of greatly increasing the resources over the year.

Marakand is developing the Khandiza deposit, a volcanogenic massive sulphide deposit that contains zinc, lead and copper sulphides and associated sliver and gold. Khandiza is located in southeast Uzbekistan in the Surkhandarya region.

The deposit was identified in 1957 and was well explored during the Soviet era. By the end of 1974, 77,000 meters of core drilling and 19,000 meters of underground exploration development had been completed, together with a considerable amount of metallurgical testwork on bulk samples, enabling a Soviet Feasibility Study to be prepared. The project was evaluated by Oxus Resources Corporation from 1996 until the formation of Marakand in November 2003. A confirmation drilling programme (30 holes totaling 3,776 meters) was completed by Oxus in 2001. Marakand completed its feasibility study in September 2004, which confirmed the project is financially and technically robust.

NEW CHAIRMAN APPOINTED TO ASAKA BANK

Ravshan Gulyamov was appointed to head the second largest Uzbek bank – Asaka Bank. Gulyamov officially started his work in Asaka Bank on Friday, 12 May.

Prior to appointment, Gulyamov worked as deputy chairman of the board of National Bank of Uzbekistan for Foreign Economic Activities and earlier deputy chairman of the Central Bank of Uzbekistan.

Asaka Bank, a state joint-stock commercial bank, was established on 7 November 1995. It is considered to be one of the largest financial institutions in Uzbekistan from the viewpoint of scale of operation and prospects.