4 June, 2006

Politics
Uzbek president receives EurAsEC Secretary-General
EurAsEC head holds talks at Uzbek ministries
Activity of prosecution bodies of Uzbekistan in 2005 discussed

Economics
Uzbek Leasing implements 27 projects worth UZS 1bn in 2005
New excise-duties introduced to imported products
Rating of commercial banks
Anti-trust committee works on optimization of costs, prices
Agromashholding delivers tractors on Uzbek contract
Uzbekistan Havo Yollari to resume flight to Pakistan

Society
Textbook supplies to Uzbek schools to improve

POLITICS

UZBEK PRESIDENT RECEIVES EURASEC SECRETARY-GENERAL

President of Uzbekistan Islam Karimov received Secretary-General of Eurasian Economic Community (EurAsEC) Grigoriy Rapota at presidential residence Oqsaroy on 2 June.

Grigoriy Rapota arrived in Uzbekistan on Thursday and held negotiations with leadership of Uzbek Foreign Ministry and Economy Ministry.

Uzbek President and EurAsEC chief discussed issues on current state and perspective of development of cooperation between Uzbekistan and EurAsEC.

President Karimov said he is happy to have opportunity to discus issues, connected with legal procedures, necessary to realize within process of Uzbekistan's accession to EurAsEC.

Uzbek leader said journalists and public think Uzbekistan completed accession process to organization, in other words Uzbekistan became full-fledged member of EurasEC. He said as it is known all rules should be observed as EurAsEC is international organization.

Islam Karimov said the similar meeting is important stage of this process. He said the upcoming summit of EurAsEC, which will be held on 22-23 June, will be important event. It was noted that despite short period Uzbekistan joined 21 documents within EurAsEC and this process is continued intensively.

Eurasian Economic Community (EurAsEC) is economic union and unites Belarus, Russia, Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan. Uzbekistan joined the group on 25 January 2005. (UzReport.com)

EURASEC HEAD HOLDS TALKS AT UZBEK MINISTRIES

Secretary-General of the Eurasian Economic Community (EurAsEC) Grigory Rapota visited a number of ministries of Uzbekistan on Friday and held talks there.

On the same day, Grigory Rapota paid a visit to the Fine Art Gallery in the center of Tashkent, where he familiarized with the exhibits (UzA).

ACTIVITY OF PROSECUTION BODIES OF UZBEKISTAN IN 2005 DISCUSSED

Prosecution bodies of Uzbekistan considered and solved more than 37,000 complaints of citizens in 2005. The organs of prosecution received 64,000 citizens whose rights were violated last year. This was announced at the session of the Senate's Committee for legislation and court-legal issues.

More than 122,000 officials were drawn to disciplinary, administrative and material responsibility in 2005, it was said at the session. Suits worth over UZS 95bn related to violation of individuals' and legal entities' rights were filed to courts, and more than 26,000 hectares of illegally used lands were returned to their owners.

Over 47 billion soums were levied for violation of laws in the economic sphere. Illegal circulation of US$4.3 million was revealed and goods worth 4.8 billion smuggled in Uzbekistan were seized.

It was noted that prosecution bodies were not paying enough attention to strengthening rule of law in agriculture, to fighting shadow economy and tax crimes. (UzReport.com)

Economy

UZBEK LEASING IMPLEMENTS 27 PROJECTS WORTH UZBEK SOUMS 1BLN IN 2005

Uzbek Leasing International A.O. implemented 27 projects worth more than UZS 1 bln. in 2005, deputy chief executive director of the company Botur Yusupov said.

One of the country’s leading leasing companies realized the above-mentioned projects in the sectors of heavy and light industries, construction, medical services, transport and printing.

The company attracted credits of the National Bank of Uzbekistan, International Finance Corporation, Malaysian Bank and the European Bank for Reconstruction and Development to implement the projects.

This year, the company plans implementing more than 30 projects and expand its activities in the country’s regions, Yusupov said. Among the fulfilled projects this year are financing purchase of technology for private enterprise Aturgul in Tashkent and equipment for Andijan-based InvestTex. (UzA).

NEW EXCISE-DUTIES INTRODUCED TO IMPORTED PRODUCTS

Starting from 1 June 2006 new excise-duties are introduced for the import of certain categories of previously used cars, State Customs Committee reported.

SCC also said the introduction of the excise would protect the domestic market of Uzbekistan against the inflow of cheap second-hand cars, and the importers would have to bring only high quality automobiles. The aim of the customs officers is to protect local producers, such as SamKocAuto and UzDaewooAuto.

Thus, the import of cars more than three years old would be subject to the excise of 70% of the automobile value, and automobiles intended for the transportation of more than 10 people and previously used small trucks more than three years old would be charged an excise of 70% plus additional US$3 for every cubic cm of the engine volume. Meanwhile, the importers of this category of automobiles are not freed from the payment of import duty, which makes up 30% of the customs value of the automobile plus US$1.2 for every cubic cm of the engine volume.

Thus the import of previously used vehicles will turn out quite expensive. (UzReport.com)

RATING OF COMMERCIAL BANKS

Interbank rating company "?xbor-rating" at Association of Banks of Uzbekistan has estimated the results of activity of commercial banks in Uzbekistan for the first quarter of 2006.

According to information from"?xbor-rating", among large commercial banks in the first place was bank Credit Standard, followed by Paxta Bank and Galla Bank.

Among midsize commercial banks leadership belongs to " Alp Jamol Bank". In the second and third places are UzDaewoo Bank and Parvina Bank respectively.

In the group of small commercial banks the fist place belongs to Davr Bank, followed by Uktam Bank and Universal Bank. (UzReport.com)

ANTI-TRUST COMMITTEE WORKS ON OPTIMIZATION OF COSTS, PRICES

State Committee for Demonopolisation, Support of Competition and Enterprise is working on preventing the unfounded rise in tariffs in the sphere of communal service, finding the reserves for reduction and optimization of costs, and raising the work effectiveness of companies functioning in the communal spheres of water supply and heat supply, the committee's press service reported.

As a result of practical measures on optimization of tariffs implemented in 2005, tariffs for heating have been reduced in eight regions, including 5% reduction in Kashkadarya region, 1.7%-19% reduction in Navoi region, 12.8% in Namangan region, 5.8%-6.6% in Ferghana region, 11% in Jizzakh region, 4%-8.5% in Tashkent region, 7%-9% in Surkhandarya region, and in Tashkent region tariffs for hot water have been reduced by 19.4%.

Tariffs for cold water supply have been reduced and approved in six regions: by 9.6% in Navoi region, by 10.3%-11.3% in Namangan region, by 3.2% in Ferghana region, by 6.2%-9.7% in Bukhara region, by 1.5%-15% in Jizzakh region, and by 14.6% in Syrdarya region.

In order to ensure the integrity and systematisation of the work in the chosen direction, the Committee together with UzbekEnergo State Joint-Stock Company reviewed the tariffs in seven heat and power plants, as a result of which the tariffs for heating energy were reduced by 9%-42% and approved by the Finance Ministry of Uzbekistan. The tariff for heating energy produced and sold by the Almalyk Mining and Smelting Complex for the wholesale consumers was reduced from 12,100 soums to 6,800 soums for 1 Gcal of heating energy.

Moreover, as a result of practical measures on optimization of the formation and application of tariffs implemented in the first quarter of 2006, the growth of tariffs for communal services was prevented, and the price levels were kept at 2005 level. This, in turn, helped hold the inflation in the economy.

According to the results of inventarisation of consumers of water supply companies during the period of restructuring and financial recovery of water-supply companies, the total of 337,900 additional agreements were signed for some 10.8 billion soums, including those signed in the first quarter of 2006 – 218,600 consumers for 3.9 billion soums.

Since April 2005 new agreements were additionally signed with 30,649 subscribers for 38.2 billion soums, including agreements signed with 4,088 subscribers for 2.1 billion soums in the first quarter of 2006.

The measures on identification of additional consumers of water and heat supplies, as well as apartments with no residents are being carried on. Work has been intensified on collection of debit liabilities through courts. Thus, the total of 18,988 lawsuits for the total amount of 10.3 billion soums were filed to the courts on the water supply companies (as of 1 April 2006). During the first quarter, 2,911 lawsuits for the total of 2.2 billion soums (up by 15,676 cases against the previous year) were filed.

The implementation of these measures allows increasing the circulating funds of communal service organizations. During the reporting period, water supply companies received additional circulating funds in the amount of 877.1 million soums, including 97.6 million soums received in the first quarter of the present year. The inflow of circulating funds at heat supply companies made up 593.3 million soums, including 48.1 million soums received during the first quarter of the year.

The implementation of plans on restructuring of communal companies has a positive affect on the reduction of the number of loss-making companies. Thus, the total number of loss-making companies decreased by 1 during the reporting year, against the same period of the preceding year.

The number of financially unstable communal companies, belonging to the group of natural monopolies with the state share of ownership decreased by 12 units from 1 January 2006 to 1 March 2006. (UzReport.com)

AGROMASHHOLDING DELIVERS TRACTORS ON UZBEK CONTRACT

Agromashholding open joint-stock company delivered a party of Volgograd-made crawler-mounted tractors to Uzbekistan on 31 May.

The release of Agromashholding said some 129 units of equipment of Volgograd Tractor Plant were delivered to Uzbekistan in line with agreement between Agromashholding and Uzprommashimpeks, signed in April 2006.

The company said specialists of Russian company are holding training of machine-operatorsof Uzbekistan, who will work on equipment of Agromashholding.

The release said Agromashholding fully and in time implemented conditions of agreement signed with Uzprommashimpeks. It added some 33 tractors of VT-150D with capacity of 150 horsepower were sent to Uzbek farmers.

The press release said it was third party of tractors, which were delivered to Uzbekistan in May. Two-days earlier, some 51 VT-150D tractors were delivered to Uzbekistan. Total number of delivered VT-150D tractors made up 129 units.

Sergey Vachugov, director on export of Volgograd branch of Agromashholding, said the fruitful cooperation of Volgograd Tractor Plant with Uzbekistan is continuing for a long time. He said crawler-mounted tractors ideally fit to Uzbek fields and highly demanded by farmers.

The releases added that on 23 May the company started to train to machine-operators to use VT-150D in Surkhandarya, Kashkadarya, Samarkand, Syrdarya and Tashkent regions. It added that machine-operators of other eight regions will undergo training in the beginning of 2007. (UzReport.com)

UZBEKISTAN HAVO YOLLARI TO RESUME FLIGHT TO PAKISTAN

Uzbekistan Havo Yollari (Uzbekistan Airways) will resume flights between Uzbekistan and Pakistan on 18 July. The Uzbek company will carry out flights between Tashkent and Lahor.

The flight will be carried out on 190-seat Boeing-757 on Mondays, Wednesdays and Thursdays to Lahor, which located in east of Pakistan.

The company also announced cut of tariffs in several routes. Uzbekistan Havo Yollari said the tariffs were cut by 20% on routes from Tashkent to Dehli and Amritsar to US$460 and by 15% from Tashkent to Bankgog, Kuala-Lumpur and Tel-Avisi to US$610-US$628. Currently, Uzbekistan Havo Yollari have flights to over 20 countries of America, Europe, Middle East, Western and Southern-Eastern Asia, 22 cities of CIS states and 11 cities within the country. (UzReport.com)

SOCIETY

TEXTBOOK SUPPLIES TO UZBEK SCHOOLS TO IMPROVE

President of Uzbekistan signed a resolution on 31 May 2006 on improving the system of textbook supplies to general-education schools.

According to the document, starting from academic year 2006-2007, annual volumes of production and sale of textbooks and educational manuals will be forecast based on specialized book exhibition and fairs, as well as inventory of school library funds. The exhibitions will be held in the months of October and November in all regional centers of Uzbekistan.

The resolution states that textbooks for first grade school students will be renewed on an annual basis, for second to fourth grade students every two years, and for fifth to ninth graders each four years.

The textbook quality is expected to increase, as the resolution sets requirements for increased quality of paper and other materials used in book production, as well as their compliance with norms of sanitary and hygiene. (UzA)