16 June, 2006

Politics
SCO summit aims at regional prosperity, harmony
Declaration on 5th anniversary of SCO – full text

Economics
People's Bank launches new consumer credit
Uzbekistan increases vegetable and fruit exports to Kazakhstan
China Development Bank issues US$20m credit to Uzbek bank
Uzbekistan-Japan Center conducts seminar to promote professional management programme
Tomsk business circles paying visit to Uzbekistan
MTS' Uzbek subsidiary records US$6.1m net income in 1 quarter

Society
Moscow university' branch in Tashkent starts to accept applications for new education year

SCO SUMMIT AIMS AT REGIONAL PROSPERITY, HARMONY

Annual summit of the Shanghai Cooperation Organization (SCO) sent a clear signal on Thursday that the member economies will intensify all-round cooperation and strive to turn the region into a harmonious one with lasting peace and common prosperity.

President of Uzbekistan Islam Karimov, President of Russian Federation Vladimir Putin, President Hu Jintao of China, President Nursultan Nazarbayev of Kazakhstan, President Kurmanbek Bakiyev of Kyrgyzstan and President Emomali Rakhmonov of Tajikistan participated at the summit of Shanghai Cooperation Organization, which took place in Shanghai on 14-15 June, 2006. They signed the Declaration on the Fifth Anniversary of the SCO.

The annual summit, held at the Shanghai International Convention Centre, coincided with the fifth anniversary of the organization’s foundation.

“The collaboration among SCO members based on mutual trust, mutual respect and constructive cooperation will contribute to regional peace and stability and will improve the lives of the people”, said President of Uzbekistan Islam Karimov at the summit. (UzA-National Information Agency of Uzbekistan, UzReport.com)

DECLARATION ON 5TH ANNIVERSARY OF SCO – FULL TEXT

Members of the Shanghai Cooperation Organization (SCO) on Thursday issued a declaration on its fifth anniversary of founding. The following is the full text of the document:

Declaration of the Fifth Anniversary of the Shanghai Cooperation organization

(Shanghai, 15 June 2006)

On the occasion of the fifth anniversary of the founding of the Shanghai Cooperation Organization (hereinafter referred to as SCO), the heads of state of SCO members -- President N. Nazarbaev of the Republic of Kazakhstan, President Hu Jintao of the People's Republic of China, President K. Bakiev of the Kyrgyz Republic, President V. Putin of the Russian Federation, President E. Rakhmonov of the Republic of Tajikistan and President I. Karimov of the Republic of Uzbekistan - met in Shanghai, SCO's birthplace, and stated as follows:

I. SCO was founded in Shanghai five years ago pursuant to a strategic decision made by its member states to meet challenges and threats of the twenty-first century and bring about durable peace and sustainable development of the region. This decision, which ushered in a new historical phase of regional cooperation, is of great importance to the establishment and maintenance of peace and stability and the creation of an inclusive environment for cooperation in the SCO region.

With volatile changes taking place in the international and regional environment, SCO has become an important mechanism for deepening good-neighborly cooperation, friendship and partnership among its members. It is a good example of dialogue among civilizations and an active force for promoting democracy in international relations.

II. Through its endeavor over the past few years, SCO has laid a solid foundation for its steady and sustained growth and gained extensive international recognition.

1. SCO has completed building of institution and legal framework which ensures its effective functioning.

2. It has carried out close security cooperation focusing on addressing non-traditional security threats and challenges such as fighting terrorism, separatism, extremism and drug trafficking.

3. It has adopted a long-term plan, set direction for regional economic cooperation and identified the goal, priority areas and major tasks of economic cooperation among member states. It has set up the SCO Business Council and the Interbank Association.

4. Following the principles of openness, non-alliance and not targeting at any third party, it has actively engaged in dialogue, exchange and cooperation of various forms with countries and international organizations that, like SCO, are ready to carry out cooperation on an equal and constructive basis with mutual respect to safeguard regional peace, security and stability.

SCO owes its smooth growth to its consistent adherence to the "Shanghai Spirit" of "mutual trust, mutual benefit, equality, consultation, respect for multi-civilizations and pursuit of common development". This spirit is the underlying philosophy and the most important code of conduct of SCO. It enriches the theory and practice of contemporary international relations and embodies the shared aspiration of the international community for realizing democracy in international relations. The "Shanghai Spirit" is therefore of critical importance to the international community's pursuit of a new and non-confrontational model of international relations, a model that calls for discarding the Cold War mentality and transcending ideological differences.

SCO will remain dedicated to the purposes and principles established at its founding and strengthened in the documents, declarations and statements adopted thereafter. III The world and international relations today are going through unprecedented and profound changes. There is increasing trend toward multipolarization and economic globalization amid twists and turns. The establishment of a new international order in the twenty-first century is a slow and uneven process. Interdependence among countries is growing. The international community faces favorable opportunities for ensuring stability, peace and common development, but is also confronted with complicated traditional and non-traditional security challenges and threats.

SCO is committed to enhancing strategic stability, strengthening the international regime of non-proliferation of weapons of mass destruction and upholding order in international law, and will contribute its share to accomplishing these important missions. SCO holds that the United Nations, being the universal and the most representative and authoritative international organization, is entrusted with primary responsibility in international affairs and is at the core of formulating and implementing the basic norms of international law. The United Nations should improve efficiency and strengthen its capacity for responding to new threats and challenges by carrying out proper and necessary reforms in light of the changing international environment. In carrying out Security Council reform, the principles of equitable geographical distribution and seeking the broadest consensus should be observed. No time limit should be set for the reform, nor should a vote be forced on any proposal over which there are major differences. SCO holds that the next Secretary-General of the United Nations should come from Asia.

Threats and challenges can be effectively met only when there is broad cooperation among all countries and international organizations concerned. What specific means and mechanism should be adopted to safeguard security of the region is the right and responsibility of countries in the region.

SCO will make constructive contribution to the establishment of a new global security architecture of mutual trust, mutual benefit, equality and mutual respect. Such an architecture is based on the widely recognized principles of international law. It discards "double standards" and seeks to settle disputes through negotiation on the basis of mutual understanding. It respects the right of all countries to safeguard national unity and their national interests, pursue particular models of development and formulate domestic and foreign policies independently and participate in international affairs on an equal basis.

Diversity of civilization and model of development must be respected and upheld. Differences in cultural traditions, political and social systems, values and model of development formed in the course of history should not be taken as pretexts to interfere in other countries' internal affairs. Model of social development should not be "exported". Differences in civilizations should be respected, and exchanges among civilizations should be conducted on an equal basis to draw on each other's strengths and enhance harmonious development.

IV There is general stability in Central Asia. Countries in this region have achieved historic success in political and economic reforms and social development. The unique historical and cultural traditions of Central Asian nations deserve respect and understanding of the international community. The governments of Central Asian countries should be supported in their efforts to safeguard security and stability, maintain social and economic development and improve people's livelihood.

SCO member states will continue to tap potential of the organization, enhance its role and work to turn this region into one that is peaceful, coordinated in development, open, prosperous and harmonious.

SCO member states will remain friends from generation to generation and will never be enemies against one another. They are committed to the all-round growth of good-neighborly relations of mutual respect and mutually beneficial cooperation. They support each other in their principled positions on and efforts in safeguarding sovereignty, security and territorial integrity. They will not join any alliance or international organization that undermines the sovereignty, security and territorial integrity of SCO member states. They do not allow their territories to be used to undermine the sovereignty, security or territorial integrity of other member states, and they prohibit activities by organizations or gangs in their territories that are detrimental to the interests of other member states. To this end, SCO member states will conduct, within the SCO framework, consultation on the conclusion of a multilateral legal document of long-term good-neighborly relations, friendship and cooperation.

SCO member states will continue to strengthen coordination and cooperation in international and regional affairs and take a common position on matters involving SCO's interests.

SCO has the potential to play an independent role in safeguarding stability and security in this region. In case of emergencies that threaten regional peace, stability and security, SCO member states will have immediate consultation on effectively responding to the emergency to fully protect the interests of both SCO and its member states. Study will be made on the possibility of establishing a regional conflict prevention mechanism within the SCO framework.

To comprehensively deepen cooperation in combating terrorism, separatism, extremism and drug trafficking is a priority area for SCO. SCO will take steps to strengthen the regional anti-terrorism agency and carry out cooperation with relevant international organizations.

To expand economic cooperation among them, SCO member states need to coordinate their efforts in implementing the Cooperation Program on Multilateral Economic and Trade among SCO Member States by carrying out major priority projects of regional economic cooperation. They need to work together to promote trade and investment facilitation and gradually realize the free flow of commodities, capital, services and technologies.

SCO welcomes participation by relevant partners in specific projects in priority areas like energy, transportation, information and communications and agriculture. SCO will endeavor to actively participate in international campaigns against communicable diseases and contribute to environmental protection and rational use of natural resources. To strengthen and expand the social foundation for friendship and mutual understanding among SCO member states is an important way to ensure SCO's resilience and vitality. To this end, SCO member states need to institutionalize bilateral and multilateral cooperation in culture, arts, education, sports, tourism and media. With the unique and rich cultural heritage of its member states, SCO can surely serve as a model in promoting dialogue among civilizations and building a harmonious world.

This Declaration is issued on the occasion of the 5th anniversary of SCO. We, heads of state of SCO members, are firm in the belief that SCO will fully realize the noble objective and mission declared at its founding and contribute to the cause of peace, cooperation and development.


President of the Republic of Kazakhstan

N. Nazarbaev

President of the People's Republic of China

Hu Jintao

President of the Kyrgyz Republic

K. Bakiev

President of the Russian Federation

V. Putin

President of the Republic of Tajikistan

E. Rakhmonov

President of the Republic of Uzbekistan

I. Karimov

ECONOMICS

PEOPLE'S BANK LAUNCHES NEW CONSUMER CREDIT

People's Bank of Uzbekistan launched new consumer credit Oila Forovonligi (Prosperity of Family), press service of the bank said.

The credit issued to purchase of equipment, furniture, to hold various events, including weddings and others. The bank said the credit should assist and develop handicraft in Uzbekistan. The credit can be also used to repair of flats and excursions to historic sights of Uzbekistan.

The press service said the credit will also assist to solve financial problems of population, who plans to purchase flat, transport means, equipment, pay for medical or educational services.

The credit also promotes local products, the bank said.

UZBEKISTAN INCREASES VEGETABLE AND FRUIT EXPORTS TO KAZAKHSTAN

In the first five months of 2006, Uzbekistan supplied more than 1,405 tonnes of fruit and vegetables, worth $210,000, to Kazakhstan.

The figure was 238 tonnes ($38,000) in the first five months of 2005. In 2005, Uzbekistan supplied 1,319 tonnes of fruit and vegetables, worth $111,800, to Kazakhstan.

Uzbekistan has nearly doubled its exports from 300,000 tonnes since 2003. In 2005, Uzbekistan exported about 660,000 tonnes of fruit and vegetables. Half of exports went to Russia and a mere 4.0% to Kazakhstan. Uzbekistan's Ministry of Foreign Economic Relations says that Uzbekistan may supply up to half of its output (up to 2.5m tonnes) to outside markets. (NOVECON: Russia/CIS Agribusiness Digest)

CHINA DEVELOPMENT BANK ISSUES US$20M CREDIT TO UZBEK BANK

China Development Bank issued US$20 million to National Bank of Uzbekistan (NBU) to finance projects of small businesses and private entrepreneurs, the press service of the Uzbek bank said in its press release.

The release said the corresponding agreements were signed between China Development Bank and National Bank of Uzbekistan for Foreign Economic Activities in Shanghai, China, on 13 June.

The Uzbek bank said in its release that the negations in the beginning of 2006 and after the talks, the sides agreed that condition on crediting of businesses on supply of equipment and services with 50% of Chinese origin.

China Development Bank and National Bank of Uzbekistan are both members of Interbank Association of the Shanghai Cooperation Organisation.

The Uzbek bank said the minimal size of sub-loan on credit is US$100,000. The sum of credit within the project should make 85% from total cost of import contract. The credits issued for nine years with two years of grace period. The interest rate set at LIBOR plus 1.5% APR (without NBU margin).

UZBEKISTAN-JAPAN CENTER CONDUCTS SEMINAR TO PROMOTE PROFESSIONAL MANAGEMENT PROGRAMME

On 16 June 2006, the Uzbekistan-Japan Center for Human Development (UJC) will conduct an introductory briefing seminar in the Hotel "Dedeman Silk Road Tashkent" to promote the 8th Professional Management Programme (PMP) implemented as part of the UJC activities, the release of the centre said on 15 June.

This is the first event in a series of three presentations organized for all individuals interested in applying for the program. Similar presentations will be held in UJC premises on 20 and 22 June, the release added.

The Centre said in its press release the purpose of the events is to provide general information about PMP and highlight its advantages and benefits as a modern business education needed when establishing own business or improving organization's management activities. PMP is an intensive postgraduate 5-month training developed on the basis of MBA educational program. It is principally targeting potential entrepreneurs and managers and staff of private companies willing to foster their management skills. The program gives basic knowledge of marketing, business management, finances, human resources and production management, and other disciplines providing knowledge required to effectively compete in sophisticated economic conditions.

The first PMP was launched in 2001 and up to now over 300 people have been trained in the business management fundamentals. Through lectures, case studies and exercises, Japanese and local experts help the participants acquire knowledge and practical skills needed for organizing and successful running of business, and learn about international management practices and peculiarities of the Japanese management style. The Uzbekistan-Japan Center for Human Development was established in compliance with the agreement between the governments of Uzbekistan and Japan concluded in October 2000. The purpose of this public organization is to train specialists to facilitate business development in Uzbekistan, enhance mutual understanding and strengthen friendly relations between the countries through introduction of culture and language of Japan to the people in Uzbekistan. (UzReport.com)

TOMSK BUSINESS CIRCLES PAYING VISIT TO UZBEKISTAN

A delegation of Russian businesses, representing Tomsk region of Russia, led by deputy governor of Tomsk region and head of Tomsk region office at Russian government Alexander Cherevko is paying four-day visit to Uzbekistan.

On 15 June, Hotel Markaziy hosted a cooperation exchange, which allowed Uzbek and Russian to hold negotiations to discuss perspective business cooperation. Within the exchange, exhibition of scientific-production firm Mikan, produce of radio and communication equipment, and Tomsk Polytechnic University was held.

Chamber of Commerce and Industry of Uzbekistan and Chamber of Commerce and Industry of Tomsk region organized the current visit. The delegation includes some 30 Russian businesses, representing enterprises engaged in machinery, construction, oil and gas, furniture, timber and other sectors.

The current visit is continuation of dialogue, which was started in April 2006 at Uzbek-Russian Business forum in Tashkent.

Speaking at the meeting of businesses, Alexander Cherevko said it is necessary to strengthen contacts in industrial sector, in particular in forest and timber processing spheres and supply of fruit and vegetable products. He added: "We want to stir up and strengthen contacts with Uzbek entrepreneurs."

Cherevko also expressed readiness to cooperate with Uzbekistan in education sphere. He said Tomsk is city of science and innovation enterprises. "Here are located two significant universities – Tomsk State Unoversity and Tomsk Polytechnic University, where we invite Uzbek students. In near future, it is planned to open branch of Tomsk Polytechnic University in Tashkent," Russian official said.

Russian Federation is one of the largest trade partners of Uzbekistan. Bilateral trade turnover between states increased from US$1.6 billion in 2004 to US$2 billion in 2005. In the first quarter of 2006, the bilateral trade turnover comprised US$529 million or increased by 23.4% year-on-year. The share of Russia in Uzbekistan's foreign trade turnover made up 22.2% in January-March 2006.

Over 433 joint ventures with Russian capital operate in Uzbekistan. At the same time, some 284 ventures with Uzbek capital work in Russia. Over 80 Russian companies have offices in Tashkent.

Chamber of Commerce and Industry of Tashkent region and Chamber of Commerce and Industry of Tomsk region signed an agreement on cooperation within the exchange. President of Tomsk chamber Arkadiy Eskin and head of Tashken regional chamber Farkhad Tashmetov signed the document.

Eskin said the delegation includes directors or deputy directors of enterprises, representing almost all sectors of industry. He said the Russian companies are searching for partners, dealers and they are open for cooperation with Uzbek counterparts.

It is expected that the Tomsk delegation will meet leadership of large enterprises and companies of Uzbekistan, including Deutsche Kabel AG Tashkent, Tashelektrapparat, Fayz, Tashkentvino and others. (UzReport.com)

MTS' UZBEK SUBSIDIARY RECORDS US$6.1M NET INCOME IN 1 QUARTER

Uzbek subsidiary of Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the CIS, recorded US$6.1 million net income in the first quarter of 2006.

MTS announced on 15 June its first quarter 2006 financial and operating results and said revenues in Uzbekistan in the first quarter contributed US$25.4 million to the company's consolidated revenues (up 45% year-on-year).

The company said its subsidiary, Uzdunrobita, contributed US$15.7 million to MTS' consolidated OIBDA (up 62% year-on-year) with an OIBDA margin of 61.8%.

OIBDA represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of our net revenues.

Net income of Uzdunrobita, which started to render services under MTS starting from 15 June, increased by 2% year-on-year to US$6.1 million.

First quarter ARPU was US$13.4, down from US$15.9 in the previous quarter. First quarter MOU was 411 minutes, a decrease from 450 minutes in the previous quarter.

ARPU stands for Average Revenue Per User and it is a calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. MOU ((Average monthly minutes of usage per subscriber)) is calculated by dividing the total number of minutes of usage during a given period by the average number of subscribers during the period and dividing by the number of months in that period.

"Our subsidiary in Uzbekistan increased its market share from 55% to 57% and remains a clear leader in the country's telecommunications market," MTS said in its financial statement.

The company said its Uzbek subsidiary had 670,800 users to the end of the first quarter of 2006, while total number of mobile users in Uzbekistan comprised 1.17 million. Mobile penetration in the country reached 4%.

Mobile TeleSystems (MTS) is the largest mobile phone operator in Russia and the CIS, operating exclusively in GSM standard. Together with its subsidiaries, the company provides its services to over 61 million customers, in a license footprint area covering a population of 233.1 million in 86 out of 88 regions in Russia and the entire territories of Ukraine, Belarus, Uzbekistan and Turkmenistan.

MTS acquired 74% stake in Uzdunrobita for US$121 million in 2004 and signed option to buy remaining 26% for US$37.7 million. Uzdunrobita, founded in 1991, has licenses to provide mobile services in GSM and AMPS/DAMPS standards in Uzbekistan. Both licenses are valid until 2016. As of 1 June 2006, the company has over 770,000 users. (UzReport.com)

SOCIETY

MOSCOW UNIVERSITY' BRANCH IN TASHKENT STARTS TO ACCEPT APPLICATIONS FOR NEW EDUCATION YEAR

National University of Uzbekistan started to accept document from applicants, wishing to study at branch of Moscow State University named after Lomonosov in Tashkent. The documents accepted on 20 June-1 July.

The branch of Russian university opened in Tashkent this year in line with presidential resolution "On organisation of activity of branch of Moscow State University named after M.V. Lomonosov in Tashkent" dated 24 February.

The students are accepted to faculties on psychology and applied mathematics and computing. The Russian university will accept 80 students this year, but the building of the university designed to accept some 1,000 students.

The new building of the Moscow State University's branch in Tashkent will be located near Road-Transport Institute in Tashkent.

Resolution "On organisation of activity of branch of Moscow State University named after M.V. Lomonosov in Tashkent" said the university's main activity would be training high skilled specialists in accordance with norms of Moscow State University and general international requirements, demanded by Uzbek National programme on training specialists.

The document approved structure of organisation commission on foundation of branch of university. The resolution set that the branch will train specialists of all level, including scientific-pedagogical specialists.

The resolution said the diploma of the branch of Moscow State University admitted as document on higher education in Uzbekistan.

The activity of the university will be financed from funds of the State Budget, issued by Higher and Secondary Special Ministry as grants, and funds received from students, who entered university on payment basis.

The document said the students, who received grant of the Uzbek government, will have to work at educational establishments, enterprises and organisations of Uzbekistan for at least three years. (UzReport.com)