UZBEKISTAN COMMERCIAL NEWS UPDATE

June 2006

Prepared by Mr. Jahangir Kakharov,
BISNIS Representative, Tashkent, Uzbekistan

NOTE: THIS COMMERCIAL UPDATE IS DRAWN FROM THE UZBEK PRESS AND OTHER OPEN SOURCES AND SHOULD NOT BE INTERPRETED AS OFFICIAL U.S. GOVERNMENT INFORMATION

Main macroeconomic indicators of Uzbekistan for 1Q 2006

TASHKENT. May 30 (Uzreport) - Gross domestic product (GDP) of Uzbekistan made up 3.19 trillion soums in January-March 2006 or up 3.6% year-on-year. The Uzbek State Statistic Committee said in its report that the industrial output of the country rose by 6.8% to 3.31 trillion soums in first quarter of 2006. Production of consumer goods increased by 14.2% to 829.4 billion soums. Agriculture output in Uzbekistan made up 604.8 billion soums in the reporting period or up 4.5% year-on-year. The quarterly report of the committee said the investments to fixed capital grew by 4.5% to 615 billion soums in January-March 2006. Construction works for 277.7 billion soums (up 3.6% year-on-year) were carried out in Uzbekistan in the reporting period. The report said the retail trade turnover increased by 7.5% to 1.57 billion soums in the first quarter. The volume of services, rendered to population, comprised 400.8 billion soums or up 11.8% year-on-year. Uzbek foreign trade turnover increased by 4.1% year-on-year to US$2.38 billion, of which US$1.38 billion (up 4.4%) fell to share of Uzbek exports and US$999.7 million (up 3.6%) to share of Uzbek imports. Current account balance surplus made up US$387.1 million in the reporting period. Monetary income of population increased by 28.1% to 2.68 trillion soums and monetary expenses and savings rose by 25.8% to 2.62 trillion soums in the reporting period. Monetary expenses and savings per capita grew by 24.4% year-on-year to 99,700 soums. Expenses of population to purchase goods and services comprised 1.94 trillioin soums or up 26.2% year-on-year.

VimpelCom's market share in Uzbekistan makes up 31.5% in 1Q

TASHKENT. June 1 (Uzreport) - Net revenue of Vimpel-Communications Open Joint Stock Company (VimpelCom) in Uzbekistan made up US$8.9 million in the first quarter of 2006, the company said in its quarterly financial statement on 1 June. VimpelCom, a leading provider of wireless telecommunications services in Russia and Kazakhstan, with newly acquired operations in Ukraine, Uzbekistan and Tajikistan, announced its financial and operating results for the first quarter ended on 31 March 2006. During the first quarter of 2006 the company reported continued growth in new subscribers and improved financial results. VimpelCom said its companies in Uzbekistan have over 421,400 subscribers to the end of the first quarter of 2006. The company said its share in Uzbekistan made up 31.5%. Net income in Uzbekistan comprised US$1 million in the reporting period. OIBDA of Uzbek companies made up US$5.2 million, according to financial statement of VimpelCom. OIBDA represents operating income before depreciation and amortization. The company said in the first quarter of 2006, VimpelCom invested approximately US$195.4 million for the purchase of property and equipment and US$261.0 million for the acquisition of mobile providers in Uzbekistan. As earlier reported, VimpelCom acquired two mobile operators in Uzbekistan - Unitel and Buztel in January-February. After purchase, VimpelCom said it would unite Unitel and Buztel. The price of Unitel purchase made up US$200 million with approximately US$7.7 million (excluding cash resources) in debt at closing. The purchase price for Buztel (Bakrie Uzbekistan Telecom LLC) is US$60 million plus the assumption of approximately US$2.4 million debt. "VimpelCom's acquisitions of Unitel and Buztel in Uzbekistan were completed in January-February 2006 and the two acquired companies are now in the process of being integrated into the VimpelCom Group. We expect to introduce our brand in Uzbekistan in the fall of 2006," the financial statement of Russian company said. VimpelCom operates under Beeline brand, which is valued at US$5 billion. Interbrand group named Beeline as the most valuable brand in Russia.

Share of non-CIS states in Uzbek foreign trade turnover shrinking

TASHKENT. June 1 (Uzreport) - Foreign trade turnover of Uzbekistan made up US$2.38 billion in January-March 2006 or increased by 4.1% year-on-year. Uzbek State Statistics Committee said in its quarterly report that the trade turnover with CIS states made up US$894.4 million in the reporting period or up 21.2% year-on-year. Trade turnover with non-CIS states comprised US$1.49 billion or dropped by 4.1%. The report said the Uzbek exports increased from US$1.32 billion in the first quarter of 2005 to US$1.38 billion in the same period of 2006. The growth rate made up 4.4%. At the same time, Uzbekistan exported products and services worth US$916 million (down 7% year-on-year) to non-CIS countries and US$470.1 million (up 37.3% year-on-year) to CIS states. The volume of import of Uzbekistan increased by 3.6% year-on-year to US$999.7 million in the reporting period. The volume of import from CIS states made up US$424.3 million in January-March 2006 against US$395.3 million (up 7.3%). Uzbekistan imported goods and services from non-CIS states for US$ 575.4 million (up 0.9% year-on-year). The committee said the share of non-CIS states in Uzbek foreign trade turnover shrank from 67.8% in the first quarter of 2005 to 62.5% in the same period of 2006. The report said 66.1% (74.2% in 2005) of Uzbek exports went to non-CIS states. The share of non-CIS states in imports of Uzbekistan also dropped from 59.1% in 1Q 2005 to 57.6% in 1Q 2006. The committee's report 50% of Uzbek foreign trade turnover fell to share of Europe in January-March 2006 against 58.2% in the same period of previous year. The share of Asia increased from 37.5% in three months of 2005 to 46.1% in the same period of 2006. The share of Africa and America made up 0.3% (0.2% in 2005) and 3.6% (4%) respectively in the reporting period. The share of Australia and Oceania dropped from 0.1% to 0.

Share of cotton fibre in Uzbek exports decreasing

TASHKENT. June 1 (Uzreport) - The share of cotton fiber in Uzbek exports decreased from 27.3% in January-March 2005 to 26.7% in the same period of 2006. At the same time, the volume of export of cotton-fiber increased by 2.1% year-on-year. Energy resources and services also had the largest share in Uzbek exports – 11.8% and 11.7% respectively. At the same time, the share of energy resources increased from 11.2% in January-March 2005 to 11.8% in three months of 2006, while services rose from 7.2% to 11.7%. The share of non-ferrous and ferrous metals in Uzbek exports grew from 9.7% in the first quarter of 2005 to 10.1% in the same period of this year. The share of machinery and equipment remained at the level of 7.7%. The exports of consumer goods also increased, according to Uzbek State Statistics Committee's quarterly report. The share of consumer goods in export rose from 2.9% to 3.8% in the reporting period. Foreign trade turnover of Uzbekistan made up US$2.38 billion in January-March 2006 or increased by 4.1% year-on-year. The report said the Uzbek exports increased from US$1.32 billion in the first quarter of 2005 to US$1.38 billion in the same period of 2006.

New excise-duties introduced to imported products

TASHKENT. June 1 (Uzreport) - 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.

Uzbek carmaker sells 23,738 cars in January-May

TASHKENT. June 5 (Uzreport) - UzDaewoo Auto, Uzbek carmaker, sold 23,738 cars for 220.76 billion soums in January-May 2006, the company said in its material at local newspaper. Narodnoye Slovo, state-run newspaper, reported that the Uzbek carmaker sold largest volume of cars in Tashkent city. UzDaewoo Auto traded 9,782 cars for 90.9 billion soums in January-May. The report said the company sold 3,176 cars in Andijan region, 1,756 cars in Bukhara region, 1,717 cars in Ferghana region, 1,621 cars in Khorezm region, 551 cars in Karakalpakstan, 544 cars in Jizzakh region, 513 cars in Kashkadarya region, 894 cars in Navoi region, 781 cars in Namangan region, 580 cars in Samarkand region, 578 cars in Surkhandarya region, 466 cars in Syrdarya region and 779 cars in Tashkent region. UzDaewoo Auto said it is planning to sell 7,681 cars in internal market in June 2006, including 1,174 Damas mini-buses, 2,945 Matiz cars and 3,562 Nexia cars. It is expected that 2,785 cars will be traded in Tashkent city and 1,048 cars in Andijan region. In total, UzDaewoo Auto, Uzbek carmaker, produced over 50,500 cars in January-May 2006 against 42,680 cars in the same period of 2005. Uzbek carmaker exported over 25,000 cars in the reporting period against 24,044 in the same period of previous year. Over 90% of exported cars fell to share of Russia. UzDaewoo Auto said its exports to Ukraine increased fivefold. It is expected that UzDaewoo Auto will produce 135,000 cars in 2006, of which 63,000 will be realized in Uzbekistan and 71,000 will be exported.

PSA on Aral Sea deposits to be signed in 2006 - Lukoil

TASHKENT. June 6 (Uzreport) - Lukoil, Russia's leading independent crude producer, said on Monday a production sharing agreement to prospect and develop oil and natural gas fields in Uzbekistan would be signed by the end of 2006. A consortium made up of Uzbekneftegaz, Malaysia's Petronas, Russia's Lukoil Overseas Holding Ltd., South Korea's KNOC and China National Petroleum Corporation, was established in September 2005 to conduct prospecting work in the Uzbek area of the Aral Sea. The members of consortium signed preliminary agreement on joint exploration and development of natural gas and gas condensate in Aral Sea sector in 2005. The reserves of the sector evaluated at over trillion cubic metres of gas. The first stage will be carried out within three years and it envisages to carry our seismic works. The first stage requires investments for US$80 million. The second stage envisages drilling works and requires investments worth US$200 million of investments. Third stage, the terms of which were not determined yet, will start development of deposits. Uzbekistan is the second largest gas producer in Central Asia, after Turkmenistan. In 2005, the country produced 59.67 billion cubic metres of gas and 5.45 million tonnes of oil and gas condinsate.

Uzbekistan hopes for Japanese investment in energy, other sectors

TASHKENT. June 6 (Uzreport) - Uzbek Foreign Minister Elyor Ganiyev on Monday expressed hope for Japanese investment in energy resources and other fields in Uzbekistan. Meeting with Japanese Foreign Minister Taro Aso, Ganiyev showed gratitude for Japan's official development assistance. Uzbek Foreign Minister Elyor Ganiev visited Tokyo to attend a meeting of foreign ministers from Japan and Central Asia held on Monday. Uzbek official also offered continued support for Japan's bid to obtain a permanent seat on the UN Security Council. Japanese Foreign Minister Taro Aso said that Japan places importance on its relations with Uzbekistan as a major country in Central Asia. But he voiced concern over the internal situation in the country, calling for democratization and economic reforms.

Huawei Technologies helps Perfectum Mobile to launch CDMA network

TASHKENT. June 7 (Uzreport) - Huawei Technologies Co., Ltd., a leader in providing next generation telecommunications network solutions for operators around the world, today announced that Perfectum Mobile, the largest CDMA mobile operator in Uzbekistan, has officially launched the CDMA2000 1X network deployed by Huawei in Uzbekistan. The network has been running well and has witnessed a dramatic increase in the number of users. This successful launch further reinforces Huawei's strong position in CDMA products in Uzbekestan. At the end of 2005, Huawei was selected by Perfectum Mobile as a partner to deploy its CDMA network solutions, including Radio Access Network and Core Network equipment, as part of Perfectum Mobile's CDMA network. The project called for an expansion of Perfectum Mobile's existing CDMA network covering all major cities in the country as well as for the swapping of all existing equipment in the capital Tashkent. During the five months of the project construction, teams from Huawei and Perfectum Mobile formulated a detailed network equipment debugging and migration plan which ensured the smooth swapping of all equipment. Mr. Nadir Tulaganov, General Director of Perfectum Mobile said, "We are very pleased with the quality of services provided by Huawei. Perfectum Mobile is committed to providing quality communications services for the people of Uzbekistan. Our partnership with Huawei enables us to reach this goal." Mr. Sun Yelin, Persident of Huawei CIS, commented, "Huawei is honoured to have become a partner of Perfectum Mobile. We are dedicated to providing the best network solutions and services to benefit the customers of Perfectum Mobile and look forward to a closer long-term partnership with Perfectum Mobile in the future." As of March 2006, Huawei has won 19 CDMA2000 1xEV-DO commercial contracts and deployed CDMA networks serving 40 million subscribers globally. Huawei is the first vendor to provide CDMA softswitch solution, which now serves 10 million subscribers worldwide. Huawei's leading series of next-generation CDMA base stations help enhance the competitiveness of global CDMA carriers by providing features and functionality that allow them to quickly deploy networks with high efficiency and performance. In November 2005, Huawei was ranked as one of the "Top Three Vendors in the CDMA Market" by Frost & Sullivan. Perfectum Mobile is currently the largest CDMA mobile operator in Uzbekistan. Now the network is covering all major cities including the capital of the country.

Uzbekistan plans to attract ADB credit to construct five small hydroelectric power stations

TASHKENT. June 7 (Uzreport) - Uzbekistan plans to attract credit of the Asian Development Bank (ADB) for US$30 million to construction of five small hydroelectric power stations in 2006, representative of Uzvodenergo (Uzbek Water Energy) told Interfax. The report said the country wants to construct three hydroelectric power stations (HPS) in Dargom channel in Samarkand region – Gulba HPS (capacity 5 megawatt), Shaudarya and Bagishamal stations (6 megawatt each). Two more stations will be constructed in Ferghana region and Tashkent region. Small HPS in Ferghana region will be located at Karkidon water reservoir (11 megawatt) and Pioner HPS in Tashkent region (8 megawatt). Total annual electricity production of these small stations will make up 182 million kilowatt per hour. Uzvodenergo said the projects are under development. The ADB can allocate credit in 2006 and the realization of project will be started in 2007. Within programme on development of small hydroelectric power stations, Uzbekistan plans to construct 15 stations with total capacity of 423 megawatt, which will allow to produce annually 1.36 billion kilowatt of electricity per hour. Uzvodenergo is completing construction of first of two energy blocks of Tupalang hydroelectric power station with capacity of 30 megawatt. Totally, two energy blocks of Tupalang station will produce 63 million kilowatt of energy per hour. Within the above-mentioned programme, the country commissioned Urgut hydroelectric power station in Samarkand region with capacity of 3 megawatt. This station can produce 12 million kilowatt/hour of electricity annually. According to assessments of specialists, Uzbekistan has over tens of water reservoirs, irrigation channels and mountain rivers, where can be constructed over 141 power stations with capacity of 1,180 megawatt with annual electricity production of 4.6 billion kilowatt/hour. Annually, Uzbekistan produces over 48 billion kilowatt/hour of electricity. The share of hydroelectric power stations in total production makes up 10%. Uzbekistan produced 47.58 billion kilowatt/hour of electricity in 2005 or 4.2% down year-on-year compared to 2004. Hydroelectric power stations manufactured 692 million kilowatt/hour of electricity in 2005 or 33.3% up year-on-year.

ADB helps Central Asia to integrate ICT in basic education

TASHKENT. June 8 (Uzreport) - Government officials from Central Asia are meeting to discuss how to increase effectiveness of programs and projects in information and communications technology (ICT) in the region, as well as share experiences and lessons learned. They are taking part in a first regional meeting of Government Focal Points and Project Coordinators from Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Mongolia, and Uzbekistan, starting today in Tashkent. The meeting is being held under a US$700,000 grant from ADB and the Tokyo-based ADB Institute to improve effectiveness of ICT in basic education of Central Asian member-countries. ADB approved the technical assistance project last December following consultations with government agencies in the participating countries. It will be carried out over about 18 months to November 2007. During the two-day meeting, participants will analyze the status of ICT development in education in the region, discuss ways to implement the TA in their respective countries in line with national governments' education strategies, and identify key challenges and issues. "ICT can be a powerful tool in the pursuit of development goals," says Manuela Prina, ADB's Project Specialist in Education. "It enables people to capture economic opportunities, helps to meet the need for a more skilled labor force, and contributes to poverty reduction. However, we need tools to better plan investments to meet educational targets." The TA will help achieve investments in ICT to improve education opportunities and align it closer with labor market needs in the six participating countries, allowing them to better analyze, plan and undertake projects and programs for ICT in basic education. It will achieve this by providing a forum, through workshops at national and subregional level for sharing experiences and lessons learned on key issues relating to effective and sustainable ICT investment in basic education. Papers on "ICT in Basic Education for Development Results in the Central Asia Region," will be released in hard copy and multi-media format. These will include a regional report on the status of ICT development in basic education in the region; issue papers on key challenges relating to educational preparedness, financial sustainability, and equitable access; and integrated tools for policy analysis and planning. Uzbekistan joined ADB in 1995. Cumulative lending to the country now stands at US$914.7 million for 19 loans. ADB has also approved grants to Uzbekistan totaling US$32 million. ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 65 members – 47 from the region. In 2005, it approved loans and grants for projects totaling US$6.95 billion, and technical assistance amounting to US$198.8 million.

Uzbekneftegaz to increase investments by 47% this year

TASHKENT. June 8 (Uzreport) - Uzbekneftegaz (Uzbek Oil and Gas) National Holding Company is planning to increase the volume of capital investments to 934.9 billion soums this year, which exceeds 2005 indicator by 47%, according to the information provided by the company's management. Five investment projects implemented by Uzbekneftegaz and worth US$175 million are included in the national investment program for 2006. In 2006, the oil processing plants of the company are planning to supply 5.533 million tons of raw material. In total the company is planning to produce 5.9 million tons of liquid hydrocarbons and 62.574 billion cbm of natural gas. Founded in 1998, Uzbekneftegaz NHC unites four joint-stock companies. The company is the monopoly in oil and gas sector of Uzbekistan. According to state statistics, in 2005, Uzbekneftegaz NHC contracted the production of natural gas to 59.686 billion cbm, which is 0.3% lower then in than in 2004. The production of liquid hydrocarbons (oil, including gas condensate) declined by 17.2% to 5.449 million tons. The company's own funds in the total volume of capital investments this year will make up 723.8 billion soums (up by 32% against 2005), and foreign investments – 211.1 billion soums (up 2.44 times).

Lukoil to build drilling waste disposal area in Uzbekistan

TASHKENT. June 8 (Uzreport) - Lukoil-VolgogradNIPImorneft LLC has prepared the layout for the construction of the site of temporary storage and utilization of drilling wastes in Uzbekistan, RosBalt reported. According to the information provided by the Planning Institute "Uzhydromeliovodhoz", an institution that participated in the development of the project, the site will be built in Bukhara region, in direct proximity with the operational wells on the Hauzak-Shady field. The project is said to have an important environmental protection meaning. The construction of the drilling waste disposal area on the territory of Uzbekistan is implemented for the first time. At this time, the draft and design papers on construction of the site have already been checked by the State Committee for Architecture and Construction. The project received a positive feedback from the State Ecological Examination of the State Nature Committee of Uzbekistan. In selection of the field for construction, the architects researched the area with the aim of identifying the engineering-geological characteristics of the soil and ground, the depth of ground water. The specialists of the state controlling agencies of Uzbekistan and State Nature Committee participated in the work. The main supplier of equipment will be Krasnodar (Russia) based Tehnomehservice Company LLC. The production capacity of the complex will make up 12,000 tonnes of wastes yearly. The cost of the project is not being disclosed. However, according to the information of the source in Uzbekneftegaz (Uzbek Oil and Gas) National Holding Company, the construction of the waste disposal area will cost Lukoil Company around US$7 million. Lukoil is engaged in two major projects on the territory of Uzbekistan. In 2004, the company signed a product sharing agreement with Uzbekneftegaz on the development of Hauzak, Shady, and Kandym fields for the period of 35 years. The confirmed resources of theses fields make up over 280 billion cbm of gas. The project requires the attraction of direct investments in the amount of around US$1 billion. The first gas from these fields is expected in the mid-2007. Eventually, the extraction should increase to 10 billion cbm yearly. In July of this year, Lukoil as a member of the international consortium, which also includes Malaysian Petronas, Korean Korea National Oil Corporation, and Chinese CNPC, is planning to start the exploration of natural gas and gas condensate in the area of Aral Sea with the estimated storage of over 1 trillion cbm of gas.

Baltic Beverages to invest 50m euro in new Uzbekistan brewery

TASHKENT. June 8 (Uzreport) - Baltic Beverages Holding AB (BBH), the joint venture company held equally between Scottish & Newcastle PLC and Carlsberg AS, is to invest 50 million euro in a new brewery in Tashkent, Uzbekistan. The brewery will be operational by the spring of 2007, and will have an initial capacity of 1 million hectolitres per annum, with the ability to increase production subject to demand. BBH will team up with a local partner in Uzbekistan, Sarbast Plus, and will hold a share of 75.1%, AFX reported. Uzbekistan has a population of about 27 million, a growing economy and increasing levels of beer consumption. The domestic beer market has developed positively over the past couple of years and BBH believes that it has the potential to grow strongly in the future.

Uzbekistan negotiates aircraft sale to China

TASHKENT. June 8 (Uzreport) - China intends to place an order for a large batch of aircraft from Uzbekistan, a senior Uzbek aviation official told Uzbek TV's Akhborot news programme in an interview on 7 June. Vadim Kucherov, head of the Tashkent Aircraft Production Plant named after Chkalov (TAPOiCh), was speaking during a visit to Uzbekistan's only aircraft manufacturing plant by Li Changchun, member of the Chinese Communist Party's Central Committee. "Talks to buy a large consignment of aircraft are now at an active stage. We will soon resolve all issues and Uzbekistan's TAPOiCh will then be building aircraft for the People's Republic of China," Kucherov said in the interview, broadcast on the television's Akhborot news programme.

Uzbekistan has over 6.47m heads of cattle

TASHKENT. June 8 (Uzreport) - Uzbekistan has over 6.47 million heads of cattle, including 2.82 million of cows, 1.21 million sheep and goats, 81,300 heads of pigs and 1.93 million of poultry in January-March 2006. The Uzbek State Statistics Committee said the number of cattle increased by 5%, cows –4.6%, sheep and goat – 6.6%, pig – 3.3% and poultry – 8.2%. The country manufactured 232,200 tons of meat in live weight (up 6.4% year-on-year), 844,400 tons of milk (up 6% year-on-year), 377.8 million of eggs (up 6.3% year-on-year). Dehkan and private farms produced 96.4% of meat, 99.1% of milk, 58.3% of eggs, 98.3% of wool and 67.8% of karakul.

Uzbek agriculture production increases 5% year-on-year in 1Q

TASHKENT. June 8 (Uzreport) - Agriculture output of Uzbekistan made up 604.8 billion soums in the first quarter of 2006 or up 5% year-on-year, the Uzbek State Statistics Committee said. The share of plant cultivation comprised 95.5 billion soums in January-March 2006 or increased by 7.5% compared to the same period of 2005. Livestock breeding provided 509.3 billion soums (up 4% year-on-year) of agriculture production in the first quarter of 2006. Non-governmental sector produced 99.9% of agriculture output in January-March 2006. Dehkan farms produced 90.9% of agriculture production, while agriculture enterprises produced 6% of total output. Private farms produced 3.1% of agriculture output. As of 1 April 2006, the country sowed agriculture crops for 1.56 million hectares, including winter crops. The committee said Uzbekistan sowed cotton on 78,100 hectares in 2006 against 80,500 hectares in 2005.

Kazakhstan expects reduction in gas transit from Central Asia

TASHKENT. June 9 (Uzreport) - The volume of the transit of gas from the countries of Central Asia through the gas-transportation system of Kazakhstan is expected to drop this year, said the Minister of Energy and Mineral Resources of Kazakhstan Baktykoja Izmuhambetov. "In 2005, some 115 billion cbm of gas was transited through Kazakhstan. In 2006, the figure is expected to fall to 111 billion cbm," he said at the third Kazakh Investment Summit held on Thursday, 8 June in Almaty. At the forum, the Minister explained the media representatives that the increases or decreases in the volume of gas transit did not depend on the Kazakh party. "Reduction or increase in the volume does not depend on us. It is determined by Uzbekistan and Turkmenistan together with Russia. The issue is not within our competence," he noted.

Rubicon launches CDMA2000 standard in Uzbekistan

TASHKENT. June 9 (Uzreport) – As mentioned above, US-Uzbek joint venture Rubicon Wireless Communications (RWC), working under Perfuctum Mobile brand, has launched CDMA2000 network for 800MHtz frequency range in Uzbekistan. RWC invested about US$10 million in the network, the spokesperson for company said during official briefing, adding that the investments were made from the own funds of the company's shareholders. The equipment for the network was supplied by China's Huawei Technologies and ZTE Corp. The network currently covers the capital, Tashkent, and some areas in 10 Uzbek regions, the spokesperson said, adding that the company plans to expand the network country-wide by the end of the year. RWC, created in 1996, is 30% owned by Uzbek national telecommunications operator Uzbektelecom. The U.S.' companies L&D International and Amis Protrade hold 35% in the operator each. RWC first operated DAMPS network but later shut it down and moved to CDMA-800 standard. Rubicon Wireless Communications has about 60,000 users.

Number of Uzdunrobita's users increases by 6.9% in May

TASHKENT. June 9 (Uzreport) - Mobile TeleSystems (MTS), largest mobile operator of Russia and CIS, said its Uzbek subsidiary increased number of subscribers from 720,000 in April to 770,000 in May. Uzdunrobita, in which MTS owns 74% stake, recorded 6.9% growth of subscribers in May. MTS said Uzdunrobita had 390,000 subscribers in May 2005. The growth of number of subscribers comprised 96.2% year-on-year. Consolidated number of subscribers of MTS grew from 61.77 million in April 2005 to 62.89 million in May 2006 or up 1.8%. Russia's largest mobile phone operator Mobile TeleSystems, or MTS, bought a 74% stake in Uzdunrobita for US$121 million in July 2004. MTS has also signed a three-year option deal to acquire the 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. Currently, there are eight mobile operators in Uzbekistan, including five GSM standard operators.

China Export & Import Bank to extend Uzbekistan US$397m in credit

TASHKENT. June 9 (Uzreport) - The China Export &Import Bank, one of China's policy banks, said it would provide Uzbekistan with US$397 million in preferential export credit under an agreement signed with three Uzbek banks. In a statement, the lender said the US$397 million would support Uzbekistan's development of ten infrastructure projects.

Uzdunrobita to render services under MTS brand

TASHKENT. June 12 (Uzreport) - Uzdunrobita, No. 1 Uzbek mobile operator, will start to render its service under MTS (Mobile TeleSystems) brand starting from June 15, 2006, a senior manager of the company said in an interview. Tohir Irgaziev, director on marketing of Uzdunrobita, said MTS now would render single standards on quality of communication and services under the single brand in all territory where MTS operates. 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 June 1, 2006, the company has over 770,000 users.

MTS introduced new brand on May 10. "The chosen visual for the portal brand – a simple and eternal symbol in the shape of an egg – defines the essence of modern technologies: external simplicity that hides the striking complexity of what is inside," highlighted MTS' acting President and CEO, Leonid Melamed. "This portal brand will provide MTS subscribers with access to new hi-tech quality services that were previously impossible, including a single access point to the Internet, to mobile and fixed-line phones, single billing, and a single interface for managing one's services. In other words, the user will gain access to a single information space that he will be able to shape according to his own unique needs. The launch of the portal brand will allow the Sistema Telecom group of companies, including MTS, to best meet the high demands of the modern day user's mobile services requirements," he said.

The renewed MTS brand symbolizes leadership and a dynamic and innovative approach to business. The external change – new logo, corporate style and sales offices look – is a reflection of the large-scale internal changes that are taking place in the Company in response to the shift from a technological business development model to the one more oriented towards the client, said Irgaziev in his interview. Irgizaev said the company plans to increase number of subscribers from 580,000 in the beginning of 2006 to 1 million to the beginning of 2007. He said the company is installing new stations in rural areas and plans to increase number of stations to 1,000 by the beginning of 2007. He said that within re-branding process in Uzbekistan, the company will not only change signboards, but also it will lift its services to new level. He said the company plans to launch new national call-centre soon. The call-centre will be located in Tashkent and process all calls of users from regions and assist to solve problems. Irgizaev said the company plans to keep its leadership in the country and create necessary environments to transfer to 3G.

Chinese company to explore gas, oil fields in Uzbekistan

TASHKENT. June 12 (Uzreport) - Uzbekneftegaz, national holding company, and China National Oil and Gas Exploration and Development Corporation (CNODC) signed an agreement on exploration works in Uzbekistan, a senior manager of Uzbek company said on Monday. Shavkat Majitov, first deputy chairman of Uzbekneftegaz, said the agreement envisages carrying out exploration works in five investment blocks in Ustyurm Bukhara-Khiva and Ferghana oil and gas deposits in Uzbekistan. He said the volume of investments will make up US$208.5 million within five years and US$88.3 million will be used within minimal programme. He said some 15 exploration and 12 assessment wells will be drilled. Uzbek manager said the new venture, created on an equal footing, will develop oil and gas deposits. At the same time, he added that the Chinese side will guarantee attraction of funds to utilize new oil and gas deposits. Majitov said the Chinese company will also finance training of staff to oil and gas sector of Uzbekistan and help to improve skills of Uzbekneftegaz workers through training in China worth US$500,000.

Uzbek mobile market has great future – manager of local operator

TASHKENT. June 12 (Uzreport) - Richard Seney, President and Chief Executive of MCT Telecom Corp (USA), owner of Coscom, shared his opinion on development of Uzbek mobile market and plans of third largest Uzbek mobile company in his interview with UzReport.com correspondent. Coscom, an Uzbek-American joint venture, founded in April 1996 and specializes on creation and development of mobile communication in GSM-900/1800 standards. MCT Corp. is a provider of mobile telecommunications services in Central Asia and Russia, operating through joint ventures currently licensed to serve 60.4 million people. A US company based in the Washington, D.C. area, MCT has developed twenty-nine mobile ventures since formation, and its services have been united under the Indigo brand introduced in 2001.

Uzbek mobile market
Speaking about Uzbek mobile market, Richard Seney said to say the market is growing will be only part of answer. He said Uzbekistan observes the second birth of mobile communication. Currently, Uzbekistan has over 1.3 million mobile users. Seney noted that decrease of prices and introduction of various tariffs makes mobile communication competitive compared to fixed communication. He said this opportunity was received due to technological and informational openness of Uzbekistan with countries and firms, which are ready to present it new technologies. US company's representative said competition among suppliers of mobile communication services made the market more competitive and new technologies made it more cheaper. He praised opening of faculty on training of mobile communication specialists in Uzbek university. He added the Uzbek government adapted fast to new market conditions

Competition
Answering question on competition in Uzbek mobile market, Seney said the foreign investments to sector benefits the sector. Currently, five mobile operators work in Uzbekistan, of which two belongs to Russia's MTS (owns No.1 Uzbek operator Uzdunrobita) and Vympelcom (owns No. 2 Uzbek operator Unitel). Russian companies control about 75%-80% of Uzbek mobile market. He said opening and accessibility for other states, other economic model speaks about development of young and fast developing country. Seney said Coscom feels itself [in Uzbekistan] economically protected and he added the country is ready to work in other legal field. He said the Uzbek parliament adopted several legal acts, which allows dynamically work on international standards in Uzbekistan and removes barriers. Speaking on number of companies in Uzbekistan, he recalled development of mobile communication in Europe and Russia. He said about 10 years ago there were eight-seven companies in European states and not their number decreased sharply. He said Uzbekistan's mobile market is developing on the same scheme like in Russia, first mobile companies cover large cities and industrial centers, afterwards small villages. The mobile communication penetration in Uzbekistan with population of 26 million makes up 5-6% now.
Seney said the figure is small compared to neighboring Kazakhstan (32%) and Kyrgyz Republic (12%).

Plans in the market
Speaking on perspective of the market, Seney said the company is planning to work in long-term basis in Central Asian market, in particular Uzbekistan. He said the company invested US$100 million to Coscom last year. He said the US company plans to invest more to Coscom and as evidence said the company signed agreement with Alcatel and Motorola on supply of equipment to modernization of Coscom. Seney said Alcatel will complete supply of equipment on NGN base within 16-million euro agreement in August. He added over 100 stations and equipment on the basis of Alcatel Spatial Atrium will be supplied to Uzbekistan.
Coscom introduces Soft switch of Chinese Huawei worth US$1.5 million this summer. Equipment of another Chinese company – ZTE – is under examination now. The launch of these equipment will cover southern region of Uzbekistan – Surkhandarya. Realization of these investment projects will allow to cover all important objects of Uzbekistan and introduce new services, he said. He added that Coscom's net income increased by 45.8 times and the largest part was reinvested to development of the company. The net income of the company was 1.68 billion soums in 2005.

3G in Uzbekistan
Speaking about introduction in 3G in Uzbekistan, he said it is difficult to say how this segment will develop in Uzbekistan. Seney recalled that introduction of 3G in Europe was slow and suppliers already developed 4G. Seney expressed his confidence that 3G will come to Uzbekistan and in short period. He said the will of mobile operators will not enough and special decision of the government will be needed. He said 3G means new technologies and they should be licensed in accordance with Uzbek norms.

Coverage
Coscom plans to cover not only settlement, but also highways through which transit cargoes shipped. He also said the company may start to cover underground of Uzbek capital. He said each company should have development plan, which covers cities, industrial centers, highways, recreation zones and underground should be part of that.

ADB and Uzbekistan discuss action plan for regional cooperation in Central Asia

TASHKENT. June 15 (Uzreport) - Uzbekistan Government officials and ADB representatives today, 15 June, discussed in a workshop a draft Comprehensive Action Plan (CAP) to deepen regional cooperation in Central Asia. The workshop is the first of a series in the Central Asian Regional Economic (CAREC) Program member-countries aimed at gaining guidance from the governments of participating countries on the goals, objectives, expected outputs, priority investments and initiatives, and performance indicators that should serve as a medium-term framework for CAREC. "Only through coordinated actions and shared vision for the region can Central Asia again become a strategic crossroad, linking People's Republic of China (PRC), Russia, Europe, India, and the Middle East," says Donneth Walton, Officer in Charge of ADB's Uzbekistan Resident Mission, who chaired the workshop. The workshop was co-chaired by Mr. M. Askarov, Acting Head of the United Information-Analytical Department on Economy and Foreign Economic Relations of the Cabinet of Ministers of Uzbekistan, and Mr. D. Husband, Senior Advisor of the CAREC Program. Senior officials from the ministries of finance, economy, foreign economic relations, investments and trade, State Customs Committee, state energy company Uzbekenergo, oil and gas company Uzbekneftegaz, and representatives of the Chamber of Commerce and Industry participated in the workshop. The participants noted the importance of finalizing the CAP, which is expected to be approved at the 5th Ministerial Conference on CAREC in October 2006 in Urumqi, Xinjiang Uygur Autonomous Region, PRC. It will be a strategic framework, upon which the priorities for regional cooperation and the proper sequencing of initiatives will be decided. The participants also reviewed the current status of the CAREC Program and discussed the regional cooperation goals and objectives of the Government of Uzbekistan and key expected outputs from regional cooperation in the priority sectors. They also discussed issues related to private sector involvement, improved access to the regional and world markets, and possible inclusion of new sectors in the CAREC Program, including tourism, human development, agriculture, and environment. The workshop follows the Fourth Ministerial Conference of CAREC, which took place on 5-6 November 2005 in Bishkek, Kyrgyz Republic, and the Senior Officials Meeting (SOM) in Urumqi, on 10-11 April 2006. The CAREC Programme is an alliance comprising eight countries—Afghanistan, Azerbaijan, PRC, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, and Uzbekistan—and six multilateral institutions (MIs): ADB, European Bank for Reconstruction and Development, International Monetary Fund, Islamic Development Bank, United Nations Development Programme and World Bank. CAREC aims to promote economic growth and raise living standards by encouraging regional economic cooperation. The Program has concentrated on financing infrastructure projects and improving the region's policy environment in the priority areas of transport, energy, trade policy and trade facilitation. The combined assistance of the MIs for these sectors is expected to exceed US$1.45 billion during 2006-2008. Uzbekistan joined ADB in 1995. Cumulative lending to the country now stands at US$914.7 million for 19 loans. ADB has also approved grants to Uzbekistan totaling US$32 million. ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 65 members – 47 from the region. In 2005, it approved loans and grants for projects totaling US$6.95 billion, and technical assistance amounting to US$198.8 million.

MTS' Uzbek subsidiary records US$6.1m net income in 1Q

TASHKENT. June 16 (Uzreport) - 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.

Round table focuses on financial sector reforms in Uzbekistan

TASHKENT. June 19 (Uzreport) - A roundtable on financial sector reforms was held on 15 June in the World Bank Country Office. The roundtable brought together representatives of the Central Bank, foreign and commercial banks, research institutes, the Banking and Finance Academy, the Tashkent Financial Institute other government agencies and the International Financial Institutions.

"The Government has declared its intention to deepen financial sector reforms – today's discussion is intended to assist in this process and to emphasize how important it is to get reforms right", said Martin Raiser, the Country Manager of the World Bank, in his opening remarks.

The topic of the discussion was focused on taking stock of the level of current financial intermediation and the quality of financial services provided in Uzbekistan and examining opportunities for reform. Participants heard two introductory presentations, on the current status of Uzbekistan's financial sector, and on international experience with the reform of state-owned banks, followed by an open discussion.

In the first presentation Martin Raiser noted that Uzbekistan's financial depth remains low in international comparison, but emphasized that other CIS countries had recently experienced rapid financial deepening following macroeconomic stabilization and financial sector reforms. There were some signs that Uzbekistan might follow this trend, but this would require accelerating financial sector reforms. Martin Raiser noted in particular that banks in Uzbekistan were presently not a main source of investment capital, and that banking sector profitability was low, reflecting poor risk management in the past, distortions in the market for commercial loans, and remaining government regulations of the sector. Mr Raiser also noted the recent strong growth of private banks, albeit from a very low level, and argued that these presented both an opportunity for strengthening banking sector competition and increasing financial intermediation, but also a challenge for regulators, since some of these banks were still engaged in heavy related party lending. Other opportunities for greater financial deepening in the short run were identified in the growth of the leasing market, and the establishment of new microfinance institutions.

In the second presentation, Mr. James Lacey, an experienced international banking consultant, focused on the challenge of restructuring and then privatizing Uzbekistan's still dominant state-owned banks. He examined lessons of experience from international case studies, emphasizing the importance of doing a proper analysis of state bank portfolios and options for restructuring state banks, before embarking on bank privatization. He noted that international experience suggested that the process inevitably imposed some costs on the state budget as a result of restructuring loan portfolios, but that these costs only grew if restructuring was delayed.

The presentations were followed by intensive discussion. Participants expressed gratefulness to the World Bank for having initiated the dialogue, while many noted that a much more detailed analysis was required to understand fully the functioning of Uzbekistan's financial sector and the challenges going forward. The representative from the Central Bank noted that the financial sector was already providing important impulses for economic growth in Uzbekistan, and outlined further reform measures planned over the coming year.

"This is just the beginning of an important dialogue. Ultimately, we all agree that Uzbekistan should have a strong, privately owned and operated financial sector. Our task is to examine how to get there and for this ongoing dialogue is required", said Martin Raiser closing the discussion.

The World Bank has provided support for financial sector reform in Uzbekistan for the past ten years. It's lending and technical assistance include: Institution Building Technical Assistance Project (approved in 1995), the Financial Institution Building Loan (approved in 1998), the Financial Sector Technical Assistance (approved in 2005). With these interventions, the Bank supported the modernization of payment system, provided training for commercial bank staff, and helped draft prudential and supervisory regulations.

Gazprom plans to sign PSA for Uzbekistan fields in July

TASHKENT. June 21 (Uzreport) - Russia's Gazprom expects to sign a production sharing-agreement with Uzbekistan to develop jointly fields in Uzbekistan's Ustyurt region in July, the company's deputy chairman Alexander Ryazanov said. "We are actively working on signing the agreement with the Uzbekistan government. We hope the PSA will be signed in July," he told reporters on June 20. Ryazanov said Ustyurt is to become "a significant project, with output to amount to several billion cubic meters" of gas per year. "An evaluation of the region's [potential] capacity is currently under way," he added. Ryazanov also said that Gazprom was prepared to invest some $450 million on exploration and study of new fields in Uzbekistan in the next five years. Earlier this year, Gazprom said it had agreed with Uzbekistan's government to develop the Urga and Kuanysh fields as well as the Akchalak group in the Ustyurt region under a 25-year PSA. The gas giant also agreed at the time that it would develop a stage-by-stage program to explore new blocks in the Ustyurt region. If new fields are discovered, Gazprom will have an exceptional right to negotiate their development under PSA with Uzbekistan's government. Uzbekistan's total reserves are estimated at over 6.25 trillion cubic meters of natural gas, including 1.62 trillion cubic meters of commercial reserves. The country produces around 60 billion cubic meters/year of gas, of which 5 billion cubic meters are exported to Kazakhstan, Kyrgyzstan and Tajikistan. Uzbekistan exported around 8 billion cubic meters of gas to Russia in 2005 and plans to raise exports to 9 billion cubic meters this year.

ADB issues two grants to improve public education in Uzbekistan

TASHKENT. June 21 (Uzreport) - The foundation stone for the implementation of the two grant projects of the Asian Development Bank (ADB) was laid today, 21 June, at the Ministry of Public Education of Uzbekistan (MPE).

The first project worth US$1.5 million envisages improvement of the primary education of children with disabilities. The second one is aimed at supporting the reforms in the sphere of education. Its budget totals US$400,000. The official grant signing ceremony was held at the MPE. Deputy Minister of Public Education of Uzbekistan Mr. U. Musaev, Executive Director of the ADB Board of Directors Mr. Chol-Hwi Lee, as well as the specialist for the projects in the field of education Ms. Manuela Prina participated in the ceremony. Ambassador Extraordinary and Plenipotentiary of Japan to Uzbekistan Mr. Yuichi Kusumoto, representatives of the World Bank, UNICEF, Japanese Agency for International Cooperation, and other international organizations, as well as media also attended the event.

The first grant financed by the Japan Fund for Poverty Reduction, funded by the Japanese Government, was approved by the ADB in March of this year. This pilot project on the use of exclusive and integrated approaches in improving the education and integration into the society of the children with disabilities in Uzbekistan. The education of children with disabilities in Uzbekistan is incorporated in the system of public education, which currently requires close attention. Meanwhile, university students with disabilities represent the most vulnerable group of the population with disabilities. Many of them are from needy families. The majority of children with disabilities study at home or in specialized educational facilities and board schools, which do not always have good study facilities, textbooks, etc. There is also an urgent problem of limited social life. Children with disabilities do not usually socialize with other students and the society as a whole, largely because the educational facilities the latter attend are most commonly far from their homes. The results of numerous studies prove that such system of separate education, though aimed at meeting the special needs of students in each of the specialized schools, nevertheless create a huge gap between children with disabilities and the rest of the society, separates them and deprives of the ability to integrate in the social life, find employment and raise their living standards. Inclusive education is the process whereby children with disabilities are included in the educational process organized for the other children. This provides them the opportunity to take part in public life. During the meeting it was noted that the total of 18 schools, 6 specialized facilities and 12 public schools of the city of Tashkent, Kashkadarya and Surkhandarya regions would participate in the project. These schools will work together and develop a model of social integration among the children of public and specialized schools. The teachers will be specifically trained to work in classes with children with different needs using various study and teaching methods. The funds of the grant will also be used to modernize schools, including their equipment with information and communication technology. Specialized schools will be provided equipment specifically designed for children with disabilities, including hearing-aid and wheelchairs. Public schools, in turn, will be adapted to suite the needs of children of disabilities. For instance, special pathways will be built to allow the movement of wheelchairs, guiding handrails will be installed for blind children, and barriers (plinths and doorsteps) will be removed from restrooms.

The second grant named "Effective management of investments and reforms in general education" is targeted at support of reforms in the sphere of education, including the issue of creation of a Centre for Coordination of Donors' Activity. In order to implement the National School Education Development Programme (NSEDP) for 2004/09 the government of Uzbekistan will have to attract funds worth US$1.2 billion, and it is expected that nearly US$240 million of this sum will be attracted from international and bilateral development organizations. The centre will play a key role in coordination of investment projects and attraction of new investments to raise the quality of education in Uzbekistan. It is a kind of an effective institutional mechanism ensuring that financing bodies will supplement each other and helping avoid doubling of donor activity. The participants noted that this would help improve the efficiency of assistance rendered in the spirit of Paris declaration. The funds for the technical assistance (TA) in the form of grant worth US$400,000 were approved by the ADB in December 2005 and are provided by the Japanese government through a special Japanese fund. The TA within two years will help create a working coordination centre, as well as assist the Uzbek Public Education Ministry in more effective management, realization, monitoring and evaluation of investments, in policy, in general secondary education, and in strengthening of coordination of the assistance of the international community.

ADB is one of the leaders on financing in the Uzbek education sector and has under its belt two successfully implemented investment projects, one programme project and three project loans at the stage of realization, as well as a new project on introduction of information and communication technologies in the general education of Uzbekistan which was approved in 2005.

French company shows interest in Uzbek uranium, no government response follows

TASHKENT. June 22 (Uzreport) - French Cogema Company has showed interesting cooperation with the Uzbek party, however no special decision of the Cabinet of Ministers of Uzbekistan has been adopted on the issue," a government source told press-uz.info Wednesday. According to the source, some media have distributed unfounded information referring to the non-existent document. Meanwhile, the source confirmed that Uzbekistan is one of the largest producers of uranium in the world, and the interest is shown by many countries, including France.

EurAsEC members may finalize Customs Union regulations by 2007

TASHKENT. June 23 (Uzreport) - The member-states of the Eurasian Economic Community (EurAsEC) are going to finalize the regulatory framework of the Customs Union by the end of the year, Belarusian Deputy Prime Minister Andrei Kobyakov told reporters after a meeting of the Integration Committee of the EurAsEC. The secretary general of the community, Grigory Rapota, added there were about 15 documents to be signed to establish the Customs Union. "These issues mostly pertain to the tariff and non-tariff regulation regarding trade with third countries," Rapota said. It is also necessary to continue unifying customs tariffs. "So far 62% of tariffs have been unified, but we need to bring the number up to 80%. We will have to compromise," Kobyakov said adding there was a good reason behind the differences in tariffs. Besides, the Integration Committee addressed transport tariffs in the community, but no progress was reached, Kobyakov said. So far EurAsEC working groups have create a concept of the common transport space. "In December the committee will consider the concept, so some progress should be expected late this year," Kobyakov added. There are certain problems with other key agreements of the EurAsEC, especially in the common energy policy of the community, the vice-premier of Belarus said.
The EurAsEC includes Belarus, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The EurAsEC creation treaty was signed in Astana on October 10, 2000. The organization aims at promoting the creation of the common customs and economic space in the CIS. The coordination of WTO accession efforts of the member countries is another priority of EurAsEC.

UAE company plans to acquire Tajik, Uzbek mobile operators - reports

TASHKENT. June 23 (Uzreport) - Etisalat of the UAE plans to acquire mobile communication companies in Uzbekistan and Tajikistan, UAE media reported. The reports said Mohammed Omran, Etisalat's President, said the company is aiming to secure licences in Yemen, Russia, Greece, Uzbekistan and Tajikistan. The UAE company plans to acquire from 70% to 85% stake in mobile operators in Tajikistan and Uzbekistan, the reports added. Etisalat has been the telecommunications service provider in the UAE since 1976, and has built up a modern telecom infrastructure and established itself as an innovative and reliable operator. Etisalat stands 140th among the Financial Times Top 500 Corporations in the world in terms of market capitalization, and is ranked by The Middle East magazine as the 6th largest company in the Middle East in terms of capitalization and revenues. The corporation is the largest contributor outside the oil sector to development program of the UAE Federal Government, and is an award-winning socially responsible corporation. Etisalat has also won accolades from across the region for its nationalization program.

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