24 August, 2006

Politics:
Uzbekistan shows interest in energy cooperation with Japan
Kyrgyz FM starts visit to Uzbekistan to discuss ties
Iranian officials felicitate Uzbekistan Independence Day - report
Uzbek parliament's upper house opens its web site
Meetings of Senate's committees continue

Economics:
Exhibition "Made in Uzbekistan -2006" starts its work
Foreign experts analyze economic development of Central Asia
Tashkent To Host Second Uzbek International Cotton Fair
Shurtan Gas and Chemical Complex: Dynamics of Development
Uzbek-Chinese interstate commission meets in Tashkent

POLITICS

UZBEKISTAN SHOWS INTEREST IN ENERGY COOPERATION WITH JAPAN

Uzbek President Islam Karimov has expressed interest in expanding cooperation with Japan over energy resource development, while also supporting Japan's bid for a permanent seat on the UN Security Council and sharing its concerns over North Korea's security issues.

Islam Karimov made the remarks in a written interview Wednesday with Kyodo News, ahead of Japanese Prime Minister Junichiro Koizumi's visit to Uzbekistan and Kazakhstan next week to become the first Japanese premier to travel to Central Asia.

His responses can be seen as welcoming Japan's presence in Central Asia and involvement with the regional situation. The Japanese government seeks to strengthen ties with the region, which is abundant in natural resources and close to Russia and China. Describing Japan as a trustworthy partner, the Uzbek leader said he considers Koizumi's visit to Uzbekistan will be a significant step in bilateral relations.

He also named fields such as petroleum oil, natural gas and uranium mine development in which the resource-rich country hopes to expand economic cooperation with Japan.

Islam Karimov praised Japan's efforts to engage with Central Asia, including its having organized a policy dialogue forum in Tokyo in June among the foreign ministers of Uzbekistan and three other Central Asian countries and Afghanistan.

Uzbek President said he supports Japan's bid to gain permanent membership on the Security Council, citing the country's contributions to the United Nations.

He said Uzbekistan shares Japan's concerns about North Korea's missile launches and backed Tokyo's efforts to denuclearize the Korean Peninsula.

Koizumi is scheduled to leave Japan next Monday for his visits to Kazakhstan and Uzbekistan and return to Tokyo on Thursday next week. (UzReport.com)

KYRGYZ FM STARTS VISIT TO UZBEKISTAN TO DISCUSS TIES

Foreign Minister of Kyrgyz Republic Alikbek Jekshenkulov starts his two-day working visit to Uzbekistan on 24 August, Foreign Ministry of Kyrgyz Republic said.

The head of Kyrgyz Foreign Ministry will meet Uzbek Prime Minister Shavkat Mirziyayev and Foreign Minister Vladimir Norov.

The sides will discus Kyrgyz-Uzbek relations and issues connected with official visit of Kyrgyz President Kurmanbek Bakiev to Uzbekistan.

IRANIAN OFFICIALS FELICITATE UZBEKISTAN INDEPENDENCE DAY - REPORT

Majlis Speaker Gholam-Ali Haddad-Adel and Foreign Minister Manouchehr Mottaki in separate messages to their Uzbeki counterparts felicitated the 15th anniversary of Uzbekistan Independence Day to the government and nation of Uzbekistan, IRNA of Iran reported.

According to the report of Iran's embassy in Tashkent on Wednesday, Haddad-Adel in his message to the Oly Majlis (Supreme Assembly) Speaker Erkin Khalilov said, "On behalf of majlis deputies and myself, I congratulate the Independence Day to your excellency and other esteemed Oly Majlis deputies."

The speaker noted that the rising trend of relations between the two countries in recent years indicate the intention of the senior officials of both countries to promote the mutual cooperation.

Wishing success for friendly people and government of Uzbekistan, majlis speaker expressed hope that bilateral parliamentary cooperation could strengthen further. Foreign Minister Mottaki in his message to the Uzbekistan's new Foreign Minister Vladimir Narov felicitated both his appointment and the anniversary of Independence Day.

Inviting him to visit Iran, Mottaki wrote, "I am confident that friendly and close relations of Iran-Uzbekistan, which is in direction of national interest of both countries will be promoted under the auspices of presidents of the two countries.

Uzbekistan achieved its independence from former Soviet Union on 31 August 1991.

UZBEK PARLIAMENT'S UPPER HOUSE OPENS ITS WEB SITE

Senate of Oliy Majlis of Uzbekistan (upper house of parliament) launched its official web site www.senat.gov.uz on Thursday, 24 August.

The presentation of the web site was held at the Senate, upper house's press service said on Tuesday.

The visitors can acquaint with function and structure of Senate, a well a news about its activity.

MEETINGS OF SENATE'S COMMITTEES CONTINUE

The meetings of the committees dedicated to the issues on the agenda of the upcoming Seventh Plenary Session was held at the Upper Chamber of Parliament of Uzbekistan. The Committee for the issues of Defence and Security discussed the issues put on the agenda of the Seventh Plenary Session of the Senate of Oliy Majlis (parliament) of Uzbekistan. The Committee for Foreign Political Issues discussed the Law of Uzbekistan "On ratification of the Amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer (Montreal 17 September 1997) and the Law of the Republic of Uzbekistan "On ratification of the Amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer (Beijing, 3 December 1999)". The senators noted that a regulatory base support the compliance with the international documents on the said issues, such as Vienna Convention and Montreal Protocol had been created and were in force. The adoption of the abovementioned two laws will allow Uzbekistan to continue participation in the global process of eliminating the threat of emissions destroying the ozone layer of the Earth to the atmosphere, and preserving the access of ozone-friendly substances to the world market.

As a result, the Committee made the corresponding conclusions that will be included for consideration of the Kengash (Council) of the Senate for inclusion of the issue in the agenda of the Seventh Plenary Session.

The committees of the Upper Chamber of Parliament also discussed the results of the senators' and committees' activity during the first half of 2006. Corresponding decisions were made.

ECONOMICS

EXHIBITION "MADE IN UZBEKISTAN -2006" STARTS ITS WORK

A jubilee exhibition "Made in Uzbekistan - 2006" started in Tashkent on 22 August, 2006. It gathered over 150 most important companies from the whole of Uzbekistan and was taking place in the Hall No. 1 of the Uzexpocentre - the main exhibition platform of the country.

The main aim of the exhibition is to present the country's achievements in different fields of the economy, and also to expand export potential and the promotion of domestic goods and services for external markets, to saturate the country's local market with high-quality goods of domestic producers.

The organizers of the exhibition are the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan and the National Exhibition Complex Uzexpocentre.

According to the National Exhibition Complex Uzexpocentre's director general, Aminat Khalmatova, "Made in Uzbekistan - 2006" is the only universal exhibition in Uzbekistan, which covers all branches of the national economy. It represents the export production of domestic producers, high-quality goods and services, whose production is aimed at saturating internal consumer market.

The exhibition was attended by such important holding companies and associations of Uzbekistan as the Uzavtoprom joint-stock company, specializing in the production of automobiles, trucks, minibuses, which controls a famous motor vehicle plant UzDAEWOOavto, the Uzvinpromholding Holding Company that produces juices, beverages, alcoholic drinks, the Uzbeklegprom (Uzbek light industry) State joint-stock company, producing cotton fabrics, sewing and knitted production, the association Uzeltekhprom (Uzbek electric and technical industry), producing cable-conductor items, television sets, crystalware, the Uzstroymaterialy (Uzbek construction materials) joint-stock company, producing marble plates, finishing materials, the Uzkhimprom State Joint-Stock company – a producer of mineral fertilizers, synthetic fibres, plastic articles, production of organic and inorganic chemistry.

Likewise, the exhibition is attended by a large quantity of joint ventures – Deutsche Kabel, Roison Building Technologies, Nestle Uzbekistan, Beta Algoritm, Viso, Puls-Bah, Orient Mebel, and private firms – the Shaffof Servis, the Farmed Sanoat", the Tinos, the Yodgorlik, the Akvatekh and the Niso Tekstil.

According to the statement of the exposition's organizers, a special feature of the current exhibition "Made in Uzbekistan" is that while thoroughly selecting its participants, they took into account, first of all, the quality of production being produced and export-orientation of production. And although there were many organizations who wished to participate in the exhibition, the organizers tried to select best producers of production out of them.

The exhibition "Made in Uzbekistan -2006" will continue until 25 August. Beginning from September and prior to the end of the year, another 12 additional international and specialized exhibitions are planned to be presented in the pavilions of the Uzexpocentre. "Textile Expo Uzbekistan 2006" (5-8 September), "Infocomexpo 2006" (19-21 September) and "Automotorshow 2006" (3-6 October) are among those planned exhibitions.

FOREIGN EXPERTS ANALYZE ECONOMIC DEVELOPMENT OF CENTRAL ASIA

The Central Asia- Caucasus Institute within Silk Road Studies Programme under John Hopkins University (USA) and Uppsala University (Sweden) issued a report entitled "Central Asia's Economy: Mapping Future Prospects to 2015".

The 104-page report presents opinion of foreign exports on economic processes in Central Asian states in mid-term and long-term perspectives.

The report analyzed short term (till 2007) and long-term (till 2015) development of economy of Central Asian states. The report separates states of the regions into two groups: oil and gas exporters (Kazakhstan and Turkmenistan) and producer states (Uzbekistan, Tajikistan and Kyrgyz Republic), which try to diversify industrial production. Experts said economic achievements of the countries in the first group connected and will be connected with increase of production and export of hydrocarbons.

The report said the highest real GDP growth observed in Uzbekistan if compared on current figures and potential of industrial sector. In the short term, the GDP growth will make up 7% annually. The GDP growth in Uzbekistan connected with broadening of real production sector and decrease of raw material dependence.

The report predicts increase in raw material and industrial export of Central Asian states in short-term period. The volume of exports per capita in the region comprises US$588. The growth of export of raw material will be ensured by the first group and industrial goods by the second group of countries.

The study notes sharp increase of export of industrial output in Uzbekistan for last three years in average by 20% annually.

The foreign experts said in their report that in case of moderate political and economic reforms and establishment of regional cooperation the growth of GDP in Central Asia predicted in average 5% in 2008-2015. The GDP per capital will rise from US$889 to US$1,871.

The report forecasted that Uzbekistan can become regional leader on export of industrial products by 2015. It said the country will export product for US$2.518 billion in 2015 against current US$800 million (for comparison, Tajikistan's industrial export will rise to US$590 million, Turkmenistan – US$830 million and Kyrgyz Republic – US$333 million).

The document said the poverty level in the region will fell to 25.1%, in particular, it will make up 33.2% in Tajikistan, 30.1% in Kyrgyz Republic, 21.9% in Turkmenistan, 19.7% in Kazakhstan and 17.8% in Uzbekistan.

TASHKENT TO HOST SECOND UZBEK INTERNATIONAL COTTON FAIR

On October 17-18 this year Tashkent will host the Second International Uzbek Cotton Fair. Government of Uzbekistan along with the support oŽn the part of the International Cotton Advisory Board and oŽne of the world respected publications oŽn the cotton industry – the “Cotton Outlook” are organizing the fair.

Government of Uzbekistan along with the support oŽn the part of the International Cotton Advisory Board and oŽne of the world respected publications oŽn the cotton industry – the “Cotton Outlook” are organizing the fair. Main goals behind holding such event include signing of the contracts for the supply of Uzbek cotton fiber, further consolidation of the long-term trade relations with the largest consumers of Uzbek cotton.

Holding of the fair will allow the foreign partners to purchase large stocks of cotton, grown in Uzbekistan, first-hand from the Uzbek traders with no dealers between the parties. Moreover, the participants of the event will be able to conclude the long-term arrangements with local exporters oŽn the supply of the forthcoming cotton harvest.

Cotton growing and the related reprocessing industry traditionally occupy oŽne of the important places in Uzbekistan’s economy. At the moment, the country takes the sixth place in the world oŽn cotton production and the second – oŽn its exports. Uzbek cotton fiber is now exported to Russia, China, Iran, Bangladesh, Republic of Korea, Vietnam, and many other countries around the world.

First International Uzbek cotton fair, organized oŽn the initiative of President Islam Karimov, gathered in Tashkent last year nearly 350 representatives of more than 200 companies and textile enterprises from 26 countries of Southeast Asia, CIS, and Europe. Total volume of the fiber, purchased at the auctions, according to organizers of the fair, then accounted for 1.5 million tons.

As a part of the preparation and organizational procedures for the second cotton fair the organizers have launched a permanently functioning website oŽn the web: http://cotton.mfer.uz. Potential participants and guests of the event may surf through it to find out about the requirements for registration and participation at the fair, as well as other useful information related to the event.

Organizers of the fair feel confident that it will turn into a traditional and respected venue for the largest producers as well as consumers of cotton in the world to come together.

SHURTAN GAS AND CHEMICAL COMPLEX: DYNAMICS OF DEVELOPMENT

The Shurtan Gas and Chemical Complex, the largest plant of its kind in Central Asia, came into being with the Independence of the Republic of Uzbekistan. Put into operation at the end of 2001 this unique plant began producing the first Uzbek polyethylene of raw materials extracted from local gas fields.

Owing to this, since 2003 Uzbekistan has not oŽnly been able to meet its domestic needs but also export over 65 % of products to the countries of Europe, Asia and CIS.

It took oŽnly to years for the Shurtan Gas and Chemical Complex to reach its full productive capacity. It is worthy to note that over 95 % of the plant’s work force consists of local specialists.

It is interesting to observe the development dynamics of the Shurtan Complex: in 2002 the enterprise processed 1 294,2 million cubic metes of gas, in 2004 – 3 084 million and last year – 3 564 million cubic meters of gas. That means during the first three years the volume of processed gas increased by 1,6 times. At the same time, the volume of sold ready product grew by 11,3 times. Such a leap forward in development - unprecedented in the national industry – was achieved at the expense of an increase in production of polyethylene, the main product of the complex. While in 2002-2005 the volume of commodity gas grew by 2,73 times, gas condensate and liquefied gas – by 2,8 times, the output of polyethylene increased by 8,6 times. The high quality of Uzbek polyethylene enabled to meet competition at the international market. Today foreign customers pay almost double price for the products of the SGCC then three years ago.

It is notable that foreign companies purchased output worth $93 million last year oŽnly. This year, according to preliminary calculations, the volume of export will account for $105 million.

Natural gas extracted from Shurtan gas fields is subjected to a ten-time refinement. The extent of refinement reaches 99,99 %. 85 % of 3 billion 564 million cubic meters of gas processed this year is refined from other gas components and supplied to meet customers’ needs. The remaining 15 % is utilized to produce over 100 thousand tons of liquefied gas, 102 thousand tons of gas condensate and 600 tons of sulfur.

In the process of making gas condensate and liquefied gas the value of a unit product worth 1 Uzbek soum increases by 4,4 times. The production of gas condensate and liquefied gas oŽnly is sufficient to make the plant profitable. Taking into account that the plant also produces polyethylene, each 1 Uzbek soum invested generates the income of 22 soums and 10 tiyns. Besides, almost 72 % of polyethylene is exported. Last year oŽnly produce worth $82 million has been sold to foreign customers, while demand is ever increasing.

UZBEK-CHINESE INTERSTATE COMMISSION MEETS IN TASHKENT

Uzbek-Chinese interstate commission on trade-economic and scientific-technical cooperation gathered in Tashkent to discuss bilateral relations in various sectors. The sides noted that there is potential and intention to develop further trade-economic relations. The session, co-chaired by Uzbek Foreign Economic Relations, Investments and Trade Minister Elyor Ganiev and Chinese Vice Commerce Minister Yu Guangzhou, said the relations between Uzbekistan and China are developing gradually in all spheres.

The session said the cooperation in various sectors, including investments, developed gradually. The sides underlined that companies of two states are realizing several projects in oil and gas, telecommunication, agriculture, sericulture and communication sectors.

Yu Guangzhou also noted that the ties between Uzbekistan and China are developing and added that the sides are realizing project in machinery, energy, chemical, telecommunication and other sector of economy. He said these projects represent great interest to both sides.

He noted that the sides should use untapped opportunities and continue to develop relation in trade, improve works of companies and businesses.

The session of the interstate commission analyzed current state of trade-economic cooperation between Uzbekistan and China and considered opportunities on expansion of tie in perspective. The sides achieved agreement on creation of new venture and expand trade-economic relations. The session demonstrated that the countries have potential and will to develop collaboration.

After the end of talks, the sides exchanged notes on project on construction of specialized military hospital in Uzbekistan due to soft credit of Chinese government. The sides also signed agreement on allocation of grant for 50 million Chinese yuan to develop economy of Uzbekistan.

China is one of the largest trade partners of Uzbekistan. The bilateral trade turnover made up U$378.8 million in January-June 2006. The bilateral trade turnover was US$485.5 million in 2005 or up 32.2% year-on-year.

Some 83 enterprises with Chinese investments operate in Uzbekistan in such sectors of economy as light industry, agriculture, information technologies and others. About 26 Chinese firm and companies have their representative office in Uzbekistan.