Country focus Uzbekistan
|Monthly Economic & Commercial Report of Uzbekistan for July, 2009
Main Macroeconomic Indicators of Economic Development:
Main indicators of economic growth of Uzbekistan for January-March 2009 as compared to the same period of previous year are as follows:-
High level visits/Intergovernmental Commission Meetings:
- GDP : 7.9%
Industrial output : 9.9%
- Agricultural output : 5.7%
- Production of consumer goods : 12.5%
- Construction work : 12.1%
- Transport & communication : 10.2%
- External Trade : 8.1%
- Exports : 6.1%
- Imports : 10.3%
- Inflation (av. monthly level) : 0.9%
Third Uzbek-Singaporean Business Forum : Third Uzbek-Singaporean Business Forum was held on July 2, 2009 at the International Business Center of Singapore.
Uzbekistan interested in attracting Slovak Investment: Elyor Ganiev, Deputy Prime Minister of Uzbekistan and Minister of Foreign Economic Relations, Investment and Trade alongwith a high level Uzbek delegation attended Slovak_Uzbek business forum in Bratislava on 13 July, 2009.
Uzbek-Vietnamese Intergoverdnmental Commission : A delegation led by the Deputy Industry and Trade Minister of Vietnam Le Zan Vin visited Uzbekistan on July 30, 2009 to participate in the third session of the Uzbek-Vietnamese Intergovernmental Commission on Trade-economic and Scientific-Technical Cooperation.
i) According to the data of the State Statistics Committee of Uzbekistan, the Gross Domestic Product Growth of the country in January-March 2009 amounted to 7.9% compared to the same period of previous year. ii) According to the official statistics the average monthly inflation rate in the country for January-March, 2009 constituted 0.9%.
iii) In January-March 2009, total foreign trade of Uzbekistan reached US$ 4780.9 million including US$ 2493.9 million exports and US$ 2287.6 million imports and the trade balance was in favour by US$ 206.9 million
Bilateral Trade (Source: State Committee on Statistics)
a) According to the State Statistics Committee of the Republic of Uzbekistan, total trade turnover between India and Uzbekistan in January-March 2009 was US$ 28.3 million and rose by 46.6% compared to the same period of previous year.
*India’s trade with Uzbekistan year-wise:
*Source of data: State Statistics Committee of the Republic of Uzbekistan. **This includes payment for purchase of IL-76 & 78 planes by India
||Imports from India(in US$ million)
||Exports to India(in US$ million)
||Total trade turnover(in US$ million)
As per trade statistics, major items of India’s exports to Uzbekistan include drugs, pharmaceuticals, machinery & instruments, metal products, paper & wood products, meat & preparations. Non-ferrous metals constitute the largest item of Indian imports from Uzbekistan, but of late, export of non-ferrous metals to India have decreased. Other principal items of import are raw cotton, petroleum, crude & products, pulses, raw silk and services (which reflect remittances of Uzbek Airways from India of its revenue from both passengers and cargo services).
India’s trade with Uzbekistan commodity-wise:
*Exports from India in US$ million
* Source of data: DGCIS, Ministry of Commerce & Industry, Government of India
||Growth rate %
|Drugs, pharmaceuticals and fine chemicals
|Machinery and Instruments
|Paper, wood products
|| (-) 55
|Meat & preparations
|| (-) 47
|| (-) 3
* Imports to India in US$ million
* Source of data: DGCIS, Ministry of Commerce & Industry, Government of India
||Growth rate %
|Petroleum, crude & products
v) Share of services sector in Uzbek economy in 2007
||In US$ million
||% share in total rendered services
|Trade and catering
|Communication and information, including services of information and resource centres
|Financial, including micro credit granting
vi) In January-March of current year, investments used to increase fixed capital in Uzbekistan reached US$ 1.83 billion or 31.4% higher compared to same period of 2009. Foreign direct investments and credits constitute 22.3% of this amount i.e. US$ 407.95 million.
The share of foreign investments and credits in different branches of Uzbek economy during January-March, 2009 are shown in the diagram below
vii) India’s investment interests/Related events:
i) Uzbekneftegaz to construct gas fields in south of Uzbekistan: Uzbekneftegaz National Holding Company will construct oil and gas condensate fields at Southern Kemachi in Kashkadarya region in 2009-2011. The project will cost US$278 million. The project will be completed in cooperation with International Petroleum Investment Co (IPIC) of the UAE. It will process 3 billion cubic meters of gas a year. The project will allow to stop decrease of gas production at the field and stabilize production at the level of 243,800 tonnes of oil and 77,000 tonnes of gas condensate a year in short-term perspective. The project will be financed by foreign investments for US$100 million, by IPIC, credit of the Fund for Reconstruction and Development of Uzbekistan for US$50 million, and own resources of Uzbekneftegaz for US$128.2 million
ii) Uzbekneftegaz develops cooperation with Spanish partners: Uzbekneftegaz national holding company signed a memorandum on studying perspectives of joint activity with Spain's Repsol, Tecnicas Reunidas and Teltronic. The document was signed within the Uzbek-Spanish Business Forum, which was held within the framework of the visit of Spanish Minister of Foreign Affairs and Cooperation Miguel Angel Moratinos to Uzbekistan.
iii) Sasol, Petronas to study Uzbekistan gas-to-fuel plant: Sasol Ltd., the biggest producer of motor fuels from coal, will study the feasibility of a joint venture gas-to-fuels plant in Uzbekistan with Uzbekneftegaz, the national oil company, and Malaysia's Petroliam Nasional Bhd. The plant will use Sasol's technology to produce about 1.3 million metric tons of fuels including diesel, kerosene and liquefied petroleum gas. Sasol owns 49% of a gas-to-fuels plant in Qatar that uses the same technology. The three parties have an equal equity share in the joint venture. The Uzbekistan plant would have a capacity of 36,000 to 40,000 barrels a day.
Kyrgyzgas's debt to Uzbekistan amounts US$19m: At present Kyrgyzgas's debt to Uzbekistan amounts US$19 million. According to Kyrgyz officials, during 5 months of current year 163.6 million cubic meters of gas was supplied to Kyrgyzstan, that is 196 million cubic meters less than for the same period in 2008.
US company to construct cement plant in Karakalpakstan: US Company Platinum Partners will build a cement plant in Karakalpakstan Republic with the capacity of 1 million tonnes in 2009-2011. The project with the cost of US$128 million will be financed from own resources of US firm for US$58 million and loans of US$70 million and will be without the guarantees of the government of Uzbekistan. Uzbekistan have planned to start construction of three cement plants in 2009 with private investments. The capacity of the plants is 5.7 million tonnes and total cost of the projects is US$700 million. Along with plant in Karakalpakstan, it is planned to construct a plant in Jizzakh region with the capacity of 3 million tonnes and the cost of 250 million euros and in Surkhandarya region with the capacity of 1.7 million tonnes and the cost of US$300 million
i) Talgo to help Uzbekistan to launch high-speed train: Talgo (Spain) and Uzbekistan Temir Yollari (Uzbekistan Railways) signed an agreement on the project of launching high-speed train AVE (Alta Velocidad Española, Spanish high-speed) between Tashkent and Samarkand. The agreement was signed during the visit of the Spanish Foreign Minister Miguel Ángel Moratinos to Uzbekistan on 3 July 2009. The realization of the project will be launched this year. The train speed will reach 250 km per hour
ii) Initec to modernize Navoi thermoelectric power station: Spain's Initec won a tender of the Uzbekenergo State Joint-Stock Company to modernize Navoi Thermoelectric Power Station with the cost of 450 million Euros. In line with the competition terms, Initec will construct combined-cycle plant at the Navoi station with the capacity of 477 megawatt. The project will be started in the fourth quarter of 2009. The project will be financed from the resources of the Fund for Reconstruction and Development of Uzbekistan and own resources of Uzbekenergo. Modernization of Navoi Thermoelectric Power Station will provide electricity to Navoi Free Industrial and Economic Zone. Navoi Thermoelectric Power Station was built in 1963 for energy supply to Kyzylkum region.
Third Uzbek-Singaporean Business Forum was held: Third Uzbek-Singaporean Business Forum was held at the International Business Center of Business Federation of Singapore. During two-day visit to Singapore, the Uzbek delegation signed seven bilateral interindustrial documents. The documents laid ground for development of cooperation among partner organizations of Uzbekistan and Singapore in oil and gas industry, pharmaceutical, electronics, production of road construction equipment, attraction of Singaporean credits and investments etc.
Afghanistan fibre optic cable connected to Uzbekistan: The Afghan fibre optic network was connected to Uzbekistan telecommunication network and officially inaugurated by Uzbek and Afghan telecommunications officials. Earlier, the authorities of the Communications and Information Technology Ministry [MoCIT] of Afghanistan signed an agreement with Uzbekistan to launch the project via Sher Khan, river port serving northern Konduz Province.
Uzbekistan interested in attracting Slovak investment: Elyor Ganiev, Deputy Prime Minister of Uzbekistan and Minister of Foreign Economic Relations, Investment and Trade led a high level Uzbek delegation to attend Slovak_Uzbek Business Forum in Bratislava on 13 July, 2009. Slovak Economy Ministry State Secretary Pavol Kristof co-chaired business forum. A Slovak-Uzbek Business Forum in Bratislava was aimed at intensifying the opportunities for co-operation in several economic sectors including investments by Slovak entrepreneurs in Central Asia. As a result of business forum number of agreements including MoU between representatives of the Slovak Investment and Trade Development Agency (SARIO) and the Uzbek foreign investment agency Uzinfoinvest were signed.
H) REPUBLIC OF KOREA
Uzbekistan-Korea: opportunities for extending mutual cooperation: A delegation of Korean businessmen led by the Deputy Chairman of Korean Federation of Small and Medium Business Byong Mun Syo [transliterated] visited Uzbekistan on July 13, 2009. During the visit, Korean businessman held meetings at a number of ministries and agencies and leading companies of Uzbekistan and discussed the opportunities for mutual cooperation.
Uzbek-Vietnamese Intergovernmental Commission held 3rd session in Tashkent: A delegation led by the Deputy Industry and Trade Minister of Vietnam Le Zan Vin visited Uzbekistan on July 30, 2009 to participate in the third session of the Uzbek-Vietnamese Intergovernmental Commission on trade-economic and scientific-technical cooperation. In particular, Vietnam can export tropical agricultural products, seafood, light industry products – sewing, textile products and footwear. In turn Uzbekistan can export cotton, fertilizers, silk, building materials, different technical facilities. Vietnam is interested in increasing trade and economic cooperation with Uzbekistan.
Indian owned four star hotel opened in Tashkent: A deluxe hotel "The Park Turon" started operation in Tashkent on 4th July, 2009. The Hotel owned by Delhi based exporter. The Hotel has 120 rooms, Indian restaurant, two business centres and all the other facilities available in modern Hotels.
viii) UZBEK DEVELOPMENTS:
i) Creation of Navoi Free Industrial Economic Zone (FIEZ): Over US$500 million of investments will be made for creation of Navoi FIEZ in next two years. According to preliminary calculations, the Navoi Free Industrial Economic Zone will attract US$900 million of investments to realize 50 projects. Currently, there are 40 agreements with foreign partners on realization of projects in Navoi. Number of projects, at Navoi Free Industrial and Economic Zone can reach 100 in 2010 and thus, investments volume can go upto US$5 billion, according to assessments.
ii) Uzbekistan launches pilot project on ONE-STOP-SHOP: Memorandum of Understanding on establishing One-Stop-Shop (OSS) in the Sergeli district was signed on 25 June, 2009 between United Nations Development Programme (UNDP), Communication and Information Agency of Uzbekistan (UzACI) and Khokimiyat of the Sergeli district of the Tashkent city. The signed MoU sets a framework for cooperation between the parties in establishing One-Stop-Shop (OSS) for government services in the Sergeli district through application of user-centric information and communication technologies (ICTs).
iii) Green investment schemes to be implemented at Uztransgas: Cabinet of Ministers of Uzbekistan signed a resolution, which approved the measures on realization of the project "Decreasing leakage of natural gas at compression stations at Uztransgas". The document envisages realization of the project with use of green investment schemes in cooperation with UNDP.
vi) Uzbekistan joins Intergovernmental Agreement on the TAR Network: President of Uzbekistan Islam Karimov resolved on 3 July, 2009 to approve the Intergovernmental Agreement on the Trans-Asian Railway Network (TAR). The agreement aimed at linking railroad systems of 28 countries. The parties to the agreement are countries like China, Cambodia, India, Mongolia, Republic of Korea, Russia, Tajikistan and Thailand etc. The TAR network comprises 114,000 kilometres of rail routes of international importance, aiming to offer efficient rail transport services for the movement of goods and passengers both within the region and between Asia and Europe.
v) Rural electrification with solar power begins in Uzbekistan: The Uzbek technology transfer agency is implementing a programme for decentralized electrification of rural areas of Uzbekistan. The solar batteries are being provided for rural medical establishments, schools and farms.
The principal five export destinations of Uzbekistan for overall 2008:
Country Volume % of total volume of exports*
Russia US$ 1986.5 million 17.2%
Switzerland US$ 1032.9 million 8.9%
Ukraine US$ 978.7 million 8.5%
Iran US$ 536.6 million 4.6%
Turkey US$ 534.4 million 4.6%
*Total volume of exports for overall 2008 was US$ 11572.9 million
x) The principal five import sources of Uzbekistan for overall 2008:
Country Volume % of total volume of imports*
Russia US$ 1863.1 million 24.8%
China US$ 1039.3 million 13.8%
Ukraine US$ 624.3 million 8.3%
Kazakhstan US$ 452.6 million 6.0%
Germany US$ 399.8 million 5.3%
*Total volume of imports for overall 2008 was US$ 7504.1 million
xi) The principal five export commodities in 2008 (in million US$):
Commodity Volume % of total volume of exports*
Energy & Oil products 2916.4 25.2%
Services 1203.6 10.4%
Cotton fibre 1064.7 9.2%
Machines and equipment 868.0 7.5%
Ferrous and non-ferrous metals 810.1 7.0%
*Total volume of exports in 2008 was US$ 11572.9 million
xii) The principal five import items in 2008 (in million US$):
Commodity Volume % of total volume of exports
Machinery and equipments 3999.7 53.3%
Chemical products 975.5 13.0%
Food products 607.8 8.1%
Ferrous and non ferrous metals 510.3 6.8%
Services 427.7 5.7%
*Total volume of imports in 2008 was US$ 7504.1 million
India’s top five items of export to Uzbekistan in 2007-2008:
1. Drugs, pharmaceuticals and fine chemicals
2. Machinery and Instruments
3. Metal products
4. Paper and wood products
5. Meat & preparations
Top five import items from Uzbekistan to India in 2007-2008:
Petroleum, crude & products
|Source: Commercial Section,
Embassy of India, Tashkent