09 April, 2006

Politics
Russian leader sends Uzbek-Russian allied relations treaty to parliament
SCO member states develops list of terrorism groups

Economics:
Uzbek leader receives World Bank Vice President for Europe and Central Asia
ADB report says Uzbek economy to expand 6% annually in 2006-2007
South Korean companies to boost Uzbek textile sector
Uzbekneftegaz, South Korean companies realise joint projects
Russian company opens flight from Moscow to Urgench
Navoi Mining and Smelting Complex receives BID award
Navoi Mining Complex negotiates with Russian Tehsnabexport
Kazakhstan considers importing fruit and melons from Uzbekistan

Society
Uzbek Television and Radio Company to cooperate with KBS

RUSSIAN LEADER SENDS UZBEK-RUSSIAN ALLIED RELATIONS TREATY TO PARLIAMENT

President of Russia Vladimir Putin introduced to State Duma (lower house of Russian parliament) agreement on allied relation between Russia and Uzbekistan for ratification. The press service of Kremlin said on Saturday Russian leader gave appropriate order. The agreement between Uzbekistan and Russia was signed on 14 November 2005 in Moscow, Russia.

The order said Deputy Foreign Minister of Russia Grigoriy Karasin appointed official representative of Russian president in consideration of ratification of agreement in Federal Assembly chambers of Russia.

SCO MEMBER STATES DEVELOPS LIST OF TERRORISM GROUPS

Meeting of representatives of anti-terrorism departments of the Shanghai Cooperation Organisation (SCO) was held in Tashkent, Uzbekistan.

Representatives of Russia, China, Uzbekistan, Kazakhstan, Kyrgyz Republic and Tajikistan approved list of terrorism organisations and discussed cooperation issues for next three years. The meeting also adopted list of terrorists, which include over 400 surnames. The SCO group included 14 organisations to black-list, including High Military Madjlis ul Shura of United Forces of Modjaheds of Caucasus, Riyad-As-salihin, Al-Djihad, Hizb ut-Tahrir al-Islami, Taliban, Islamic Party of Turkestan and others.

It was noted that the work of Regional Anti-Terrorism Structure of the SCO, based in Tashkent, allowed to prevent over 250 terrorism acts in territories of six member-states.

ECONOMICS

UZBEK LEADER RECEIVES WORLD BANK VICE PRESIDENT FOR EUROPE AND CENTRAL ASIA

President of Uzbekistan Islam Karimov received Shigeo Katsu, Vice-President for the Europe and Central Asia Region of the World Bank, at Oqsaroy residence on 6 April. Uzbek head said interest of the World Bank to Central Asia, including Uzbekistan, inspires to new cooperation projects.

ADB REPORT SAYS UZBEK ECONOMY TO EXPAND 6% ANNUALLY IN 2006-2007

The Asian Development Bank issued on 6 March its major report on development of Asian economies – Asian Outlook 2006.

The report, in particular, said: "Uzbekistan has posted strong growth over the past two years with significant contributions from agriculture and robust performance on external trade. This growth momentum is expected to continue in 2006-2007 with GDP projected to expand about 6% annually, aided by greater foreign direct investment in the hydrocarbon sector. Medium-term prospects are bright; however, a sustained, broad-based high-growth track would require undertaking the critical mass of reforms needed for private sector-led growth."

SOUTH KOREAN COMPANIES TO BOOST UZBEK TEXTILE SECTOR

Results of the state visit of Uzbek President Islam Karimov to South Korea were fruitful for light industry of the country.

Alexey Dogonkin, head of department on attraction of investments and creation of joint ventures of Uzbekyengilsanoat (Uzbek Light Industry) state joint stock company, said in interview to Jahon that several documents were inked to deepen and develop Uzbek-Korean cooperation in textile sector and several meeting with textile bodies of South Korea were held within the visit.

Uzbekyengilsanoat and Federation of Textile Industry of South Korea signed agreement on strategic cooperation, which envisages that the Korean federating will represent interests of Uzbek side in South Korea and assist in promotion of Uzbek goods, produced at ventures, in third counties.

Dogonkin said the federation will also assist Uzbekistan in attraction for South Korean investments into Uzbek light industry.

He said other agreements have concrete bases and the work on them already started. In cooperation with Daishin Textile Co. Ltd started construction first phase of textile plant of knitwork goods. The plant will produce 4.5 million units of knitwork annually. The plant will be launched on the eve of 15th anniversary of Uzbekistan's independence (1 September 2006).

The second phase will create capacity on cotton yarn production and full circle of production will be created from raw cotton processing to ready product manufacturing. The cost of the project is US$10 million, he said.

Shindong Enercom Inc will create similar plant on the base of Surkhan plant in Termez, Surkhandarya region. It will process 4,000 tonnes of cotton yarn and produce 6 million units of products annually. The cost of the project is US$8 million.

NIC International signed protocol of understanding on construction of joint hosiery plant in Ferghana region with project cost of US$2 million. It is expected that 90% of products will be exported to European states and the USA.
All above-mentioned projects implemented due to foreign direct investments and South Korean companies.

Interesting agreement was signed with Daewoo International, which has eight years of experience in Uzbekistan. Daewoo International invested US$50 million in textile plant in Ferghana region.

Daewoo International will manage low-profitable textile enterprises of Uzbekistan, which are in bankruptcy process or external management introduced. The management should rehabilitate production process and manufacture competitive goods.

UZBEKNEFTEGAZ, SOUTH KOREAN COMPANIES REALISE JOINT PROJECTS

Uzbekistan and South Korea signed agreements on implementation of investment projects for US$1.8 billion during the state visit of Uzbek President Islam Karimov to South Korea in the end of March.

The large volume of investments will be directed to development of oil and gas deposits in Uzbekistan.

Sobitjon Abdurahmanov, chief of head department of Uzbekneftegaz, spoke on concrete measures on implementation of reached agreements.

Abdurahmanov said five documents were signed in South Korea connected with oil and gas sector. He said Korean National Oil Corporation (KNOC) and Uzbekneftegaz signed two agreements. First of them is agreement on main principles of joint study and conducting exploration works in Chust-Pap and Namangan-Tergachin investment blocks in Ferghan region of Uzbekistan.

The agreement envisages formation of managing committee on realisation of project, joint group to study existing geologic-geophysical materials and preparation of stage-by-stage programme on exploration works.

The document also determines preliminary volume of works and necessary volume of investment to implementation of them at US$50 million.

The agreement came into force after signing ceremony and it has concrete terms for realisation, study of materials and preparation of programme. All preparation works will be carried out this year with issue of license to conduct geology study of entrails and start of exploration works.

Second document is protocol on realisation of memorandum on understanding between Uzbekneftegaz national holding company and Korean National Oil Corporation (KNOC). It presents review of cooperation between two companies since signing of cooperation memorandum on 11 May 2005.

The document analyses realisation of investment projects on exploration works at the Uzbek part of Aral Sea and concrete measures on speeding up signing of product-sharing agreement. It reflects interest of KNOC to develop revealed deposits in Namangan-Tergachin invesyment block in Ferghana region and study of materials on these deposits to adopt decision to realize project.

Abdurahmanov said three agreements were signed with Korea Gas Corporation (KOGAS). He said these are agreement on main principles of joint study and carrying out exploration works at Uzunkui-Tuarkyr investment block in Ustyurt regions.

The document envisages formation of management committee and joint working group to study existing geologic-geophysical materials and preparation of programme on exploration works.

The agreement determines preliminary volume of works and necessary volume of investments to realize them – US$62.4 million. The document also sets terns for implementation of preperation works.

The second document is memorandum of mutual understanding on complex development of Surgul deposit at Ustyurt region of Uzbekistan with attraction of valuable components.

The document reflects implementation of investment project, including drilling and construction of infrastructure at Surgul deposit and others. It is planned to construct new gas-chemical complex, which will produce liquefied gas and other petrochemical products. Abdurahmanov said the preliminary estimates shows that US$960 million will be required to implement this project.

Surgul gas deposit has gas with more valuable components. The gas has 4.8% of ethane in its structure. He added it will allow to produce petrochemical products, demand for which is high.

On the result of preliminary works and expertise of preliminary feasibility study will be developed expanded feasibility study and source of finance will be set.

Finally, memorandum on understanding on cooperation in gas sector sets legal bases of cooperation of Uzbekneftegaz and KOGAS. The document sets spheres of mutual beneficial cooperation of companies, including production of liquefied and compressed gas and exchange of experience and new technologies.

RUSSIAN COMPANY OPENS FLIGHT FROM MOSCOW TO URGENCH

Aviakompaniya Sibir, working under brand S7 Airlines, included to its 2006 summer schedule weekly flights from Moscow, Russia, to Urgench, Khorezm region of Uzbekistan. There will be 20% more S7 flights from the hub airports of Moscow, Novosibirsk, Chelyabinsk and Irkutsk. There are 12 new routes. Over the summer months, there will be an average of 120 S7 flights every day. The S7 network consists of 64 destinations.

NAVOI MINING AND SMELTING COMPLEX RECEIVES BID AWARD

In February of this year, Frankfurt (Germany) hosted the thirty second meeting of the Business Initiative Direction (BID) International Convention that gathered the representatives of companies from different areas of activity from 166 countries of the world. Invited are companies marked by the international jury of the B.I.D. independent organisation for the achievements in sustaining high quality, technical perfection, high professionalism, business initiative and contribution to the international business.

This year, Navoi Mining and Smelting Industrial Complex of Uzbekistan participated in the event, and received the international award of the Arch of Europe for Quality and Technology 2006 in the nomination "Brilliant". This is the 31 international award of the Navoi based industrial complex which demonstrates the recognition of its achievements by the world community.

NAVOI MINING COMPLEX NEGOTIATES WITH RUSSIAN TEHSNABEXPORT

Navoi Mining and Smelting Industrial Complex (NGMK) and Russian Tehsnabexport (Technology Supplies for Export) open-type joint-stock company are negotiating on joint development of uranium fields in Uzbekistan.

NGMK is a monopoly in extraction, enrichment, and export of uranium in Uzbekistan. At this time, uranium is extracted by three divisions of the Complex and processed at the hydrometallurgical plant GMZ-1 in Navoi.

Uzbekistan currently has the seventh largest uranium reserves in the world. The country's uranium base is constituted by 27 fields in Kyzylkum region. The total uranium reserves in these fields are estimated at approximately 55,000 tonnes.

KAZAKHSTAN CONSIDERS IMPORTING FRUIT AND MELONS FROM UZBEKISTAN

The import of fruit and melons to Kazakhstan was discussed by the representatives of Uzbekistan and Kazakhstan at the Ministry of Industry and Trade in Astana. During the recent visit of the Kazakh President Nursultan Nazarbaev to Uzbekistan, the parties had signed over 30 protocols envisioning the supply of Uzbek agricultural products to the neighbouring country.

"Today the import of fruit and vegetables makes up only 5% of the total volume of consumption in the republic," said Vice Minister of Industry and Trade of Kazakhstan Bolat Smagulov.

To speed up and simplify the supply process, the two countries prepared proposals on the issue. In particular, the Customs Control Committee of the Kazakh Finance Ministry proposes identifying three specific points where the imported goods would be let through, and which would function on twenty-four-hour basis. In the course of the meeting, parties also discussed the issues relating to the volume of supplies, pricing policy, specialized trading houses, etc.

SOCIETY

UZBEK TELEVISION AND RADIO COMPANY TO COOPERATE WITH KBS

In the course of the state visit of President Islam Karimov to the Republic of Korea, the parties signed an Agreement on Cooperation between the National Television and Radio Company of Uzbekistan and Korean Television and Radio Broadcasting System (KBS).

Following the independence, the two organisations have cooperated in elucidation of important events in the public, political, socio-economic, cultural and sport life of the two countries. Several of KBS' soap operas and shows have been broadcasted on the Uzbek television channels, and Korean company is closely following the products of their Uzbek colleagues paying special attention to the life of Korean Diaspora.

The agreement is intended to intensify the exchange of information on the following issues: informing the population of the two countries about the reforms taking place in Uzbekistan and Korea, about the development of the economy, agriculture, entrepreneurship, farmers' movement, healthcare, education, culture and other spheres; exchange television and radio programmes of humanitarian and enlightenment nature; develop folk and ethnic traditions; familiarise with the best examples of national literature, music, theatre, cinema, art; cooperate in organisation of television and radio broadcasts about the support and development of sport in Korea and Uzbekistan, prepare television and radio programmes intended to promote healthy lifestyle, mass development of children's and family sports, revival and development of national types of sports and national games; elucidate youth participation in the development processes, protection of human rights and liberties, and education.

The agreement opens new opportunities for preparation of joint television and radio projects, and organisation of direct satellite broadcasts about the most important events, creates conditions for exchanging programmes; provides legal framework for sharing experience in the issues of television and radio broadcasting development, integration of information and media- technology in the process of television programme production; improvement of professional skills of the art and technical personnel.