Semi-AnnuAl RepoRt foR membeRS 2018

Uzbek–US bUSineSS TieS

Dear Members and Friends,

Your Editorial Board regrets that this issue of Business Connections has been delayed in reaching you; however, important changes and developments have occurred and we wanted to be sure they were included. In addition to the many positive changes being introduced by President Mirziyoyev and his administration, we are pleased that His Excellency Daniel N. Rosenblum has been confirmed as Ambassador of the United States of America to the Republic of Uzbekistan and will soon take up residence in Tashkent.

It is evident to those of us in the business community that the Uzbek economy is on the move—with new investments and com-mercial developments being announced on a weekly—if not daily basis. This is very encouraging—especially as it correlates with this issue’s feature article which traces the history of Uzbek–American trade and investment relations since independence.

We are also pleased to welcome Tatyana Bystrushkina who has returned as AmCham’s Executive Director, and to thank Nazee Aripdjanova for her extensive support and collaboration.

There are major business events taking place before year end and we look forward to covering these, as well as other important developments, in our next issue. In the meantime please be sure to visit www.amcham.uz

The Editorial Board

1WWW.AMCHAM.UZ

AMCHAM UZBEKISTANAMCHAM UZBEKISTAN

A RoAdmAp of TRAde And InvesTmenT TIes BeTween UzBekIsTAn And The UnITed sTATes

The history of business ties between Uzbekistan and the United States date back to the Soviet Era when U. S. com­panies such as Newmont Mining were actively considering establishing investments in the region. In Newmont’s case, it resulted in a joint business venture with state-owned Navoi Mining and Metallurgical Kombinat, Uzbekistan’s premier industrial enterprise. Kombinat operated Zarafshan, one of the gold mines that ranked as one of the largest in the world.

Af ter Uzbekist an gaine d inde ­pendence in 1991, many U. S. com­panies established Uzbeki affiliates and joint ventures. These compa­nies included Coca Cola, Case New Holland (agricultural machiner y), AIG (insurance), Intercontinental Hotels (hospitalit y), Central Asia Seed (cotton gin­ning), Coscom and Uzdunrobita (mobile communica­tions) and Chevron Texaco (lubricants). Other U. S. in­vestors established a local presence by purchasing and exporting commodities that Uzbekistan has in abun­dance, namely cotton and uranium. The latter continu­es to this day, with uranium being the primary Uzbek ex­port to the United States.

O t h e r m a j o r U . S . c o m p a ni e s , su c h a s B o e i ng , Caterpillar, Bechtel and GE, found Uzbekistan to be an

excellent market for their products and sales were soon forthcoming. Accompanying the U. S. multinationals was a cadre of American entrepreneurs who saw the oppor­tunities and soon immersed themselves in a variety of businesses including packaging, fast moving consum­er products, hospitality, and computer related services.

Concurrent with the interests that were being devel­oped by the private sector, the U. S. government had ac­quired and staffed its Embassy in Tashkent along with

agreements with the Uzbek authori­ties for the establishment of a Peace Corps volunteer program. The Unites St ate s A ge n cy fo r Inte rnatio nal D eve l o p m e nt ( U S A I D) wa s al s o formed. Although the volunteer pro­gram eventually closed, the USAID

continues to function with a broad range of areas in which technical assistance is provided. In addition to the pro­grams supported by USAID, other U. S. government initia­tives such as the Central Asian American Enterprise Fund (CAAEF) were created to support the private sector by providing both equity and financing to newly established and/or privatized Uzbek businesses.

The early years of independence were busy with new activities and ventures including the establishment of Tashkent International School (TIS) and the Tashkent

on september 7, 1992 henry Lee Clarke the first uS Ambassador to uzbekistan presented his creden-

tials to the president

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 20182

feAtuRe

International Clinic (TIC). These institutions have played a primary role in supporting the foreign business com­munity.

American Non­governmental organizations (NGOS) su c h a s t h e A m e ri c a n B a r A s s o c i at i o n , Wi n ro c k International, and the International Executive Service Corps (IESC), established offices with programs that local entrepreneurs and businesses could call up to help grow and develop their activities.

International Financial Institutions (IFIs) were also ac­tive in providing technical assistance and funding to local small and medium­sized enterprises (SMEs). These insti­tutions included the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the World Bank Group. Expanding the work of the IFIs, the World Bank also assisted the Uzbek State Property Committee to privatize large segments of the economy. This included both sales to foreign inves­tors, as in the case of British American Tobacco, and the launching of small private investment funds (PIFs), which were designed to be the harbinger of securities traded on the Tashkent Stock Exchange.

As a means of supporting the growing business com­munity, a  group of the leading for­e i g n i nv e s t o r s e s t a b l i s h e d t h e American Chamber of Commerce in Uzbekistan (AmCham), which is now celebrating its twenty­second an­niversary. In Washington, DC, a sim­ilar organization was created, the American Uzbekistan Chamber of Commerce (AUCC), where the founders included both American companies and Uzbek state­owned enterprises.

By the end of the decade the Uzbek economy was enjoying strong growth and encouraging prospects. The Uzbek Government was interested in the possibili­ties of joining the World Trade Organization (WTO), and American advisors were in residence providing support and counsel. The number of resident expatriates had increased and TIS needed to expand. Its new school campus was f inanced by the U. S. Overseas Private Investment Corporation (OPIC).

In 1998, most private businesses that depended on the conversion of local currency for payment of imports, fees, dividends and other hard currency charges began experi­encing delays in obtaining authorization to convert and re­mit. This was noted and reported by the resident represen­tative of the International Monetary Fund (IMF), who then informed the international businesses community that it would be hopefully be resolved quickly.

Unfortunately, currency conversion was not forth­coming, and the difficulty persisted until the new ad­ministration of President Shavkat Mirziyoyev in 2017. For fifteen years, the lack of readily available conver­sion led to the creation of a parallel market and more

importantly, deferral of foreign direct investment and the relocation of large American companies such as Proctor & Gamble.

During the extended period mentioned above, there were major changes in the composition of the U. S. commercial and investment presence. Newmont and InterContinetal Hotel Group left, as did Sheraton. The mobile phone companies were acquired and merged in­to the current operators and Coca Cola changed local ownership with the U. S. parent continuing. AIG moved

on, and CA AEF—now closed, lef t a legacy of investments in construc­tion materials, medical devices, and cotton yarn manufacturing. In 2002, USAID, together with the IFC and the Swiss government, sponsored the SEAF Central Asia Small Enterprise

Fund (CASEF), which is currently also being wound­down after having invested in a portfolio that included hospi­tality (hotels), pharmaceuticals (both drug manufactur­ing and devices), aquaculture, and financial services.

Following the tragic events on 9/11/2001, the U. S. de­clared the War on Terror, which led to military involvement in Afghanistan and the establishment of the American air­base Karshi-Khanabad in Uzbekistan. Relations between the U. S. and Uzbekistan suffered a reverse in 2005, when the U. S. military presence was withdrawn along with sev­eral NGOs.

After several years of tepid U. S.­Uzbek relations dur­ing which trade and investment was subdued, things began to improve as Uzbekistan joined in supporting the war effort in Afghanistan and the needs of the U. S. military’s Northern Distribution Network. The arrival of General Motors (GM) and its investment in the govern­ment-owned auto company was a positive sign. This was followed by GM’s decision to join with UzAutoSanoat in building GM PowerTrain, a state of the art facility to man­ufacture car engines.

Guided by the presence of General Motors, other U. S. multinationals, such as Honeywell, Lockheed Martin and John Deere have entered the Uzbek market. They provide goods and services in power generation, infrastructure and

in 1996 a group of leading foreign investors established American Chamber of Commerce in uzbeki-stan to support growing business

community

3WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

farming. A recent, and very welcomed entrant, is Hyatt and its new five-star hotel.

Since the election of President Mirziyoyev and the open­ing of the currency exchange market, the business environ­ment in Uzbekistan has improved significantly. The EBRD has returned after an extended absence and is already well advanced in continuing its earlier program of providing fi­nancial support and funding to SMEs and other larger local entities.

Between the entrance of new in­vestors and commercial partners, and the expansion and diversification of those already established, the fu­ture looks very promising. Russia and China are major players in the energy sector and the return of Turkish investors in textiles and distribution will certain­ly lead to growth and the creation of new employment op­portunities.

President Mirziyoyev’s visit to Washington, DC and meet­ing with U. S. President Trump was a milestone as evidenced by the contracts and agreements that were signed, espe­cially those in education and alternative energy.

Current conditions favor the export of Uzbek products to neighboring countries as well as increasing shipments of fresh fruits and vegetables to Russia, which is due to the establishment of a green corridor. Other markets for Uzbekistan’s highly regarded fresh produce are already in the process of being expanded to India and U. A. E. China’s creation of the One Belt, One Road initiative (Silk Road Economic Belt) will allow Uzbekistan to continue building

on the trade and investment platform that already exists with the Central Asia-China Pipeline that carries Turkman and Uzbek gas to Western China. Excellent opportunities exist in horticulture and food processing as well as in fur­ther development of alternative energy projects. Several local groups are moving into franchising U. S. fast food busi­nesses such as KFC, and the sector is wide open for oth­

ers to enter.Tourism is a priority of the new ad­

ministration and the addition of several new Boeing Dreamliner aircraft will make travel to and from Uzbekistan more vi­able. Increased frequencies to the U. S. along with the recently announced eas­

ing of visa requirements for both tourists and business peo­ple will contribute to a higher number of Americans coming to Uzbekistan.

As recently reported by the IMF, Uzbekistan is on the right track and has taken major steps forward in the past two years. It is important that the plans for privatization, bank reform and free market currency conversion contin­ue. In addition to the business and investment ties between the U. S. and Uzbekistan, we are also pleased to mention the Tashkent­Seattle Sister City relationship that goes back to the Soviet Era when the two joined in creating respec­tive Friendship Parks, that are honored and enjoyed today.

AmCham is proud to have been part of all that has oc­curred these past two decades and looks forward to its continuing role as a major support in the growth of the Uzbek private sector.

U.s. multinationals such as ho ney­well, Lockheed martin, John deere provide goods and services in pow-er generation, infrastructure, farm-

ing and other sectors

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 20184

feAtuRe

Provided by AFS Research

InvITATIons

exhibitions in uzbekistan 2018

Date Exhibition Organizers Place

10/3–5 PLASTEX UZBEKISTAN 2018 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

10/3–5 CHEMIE UZBEKISTAN 2018 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

10/3–5 O’ZBEKINPRINT—O’ZUPACK 2018 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

10/31–11/2 UZENERGYEXPO 2018 IEG Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

10/31–11/2 UZSTROYEXPO 2018 IEG Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/14–16 MACHINERY CENTRAL ASIA 2018 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/14–16 TRANSUZBEKISTAN\TRANSLOGISTIKA 2017 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/14–16 MININGWORLD UZBEKISTAN 2017 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/14–16 CAIPS/SECURIKACENTRALASIA 2017 ITE Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/21–23 UZAGROEXPO 2018 IEG Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

11/21–23 UZPRODEXPO 2018 IEG Uzbekistan Uzexpocentre, Tashkent, Uzbekistan

exhibitions in the uSA

Date Exhibition City Web site

9/24–27 ASIS 2018 Las Vegas, NV securityexpo.asisonline.org

9/24–27 Solar Power International Anaheim, CA solarpowerinternational.com

9/29–10/3 Water Environment Federation Technical Exhibition and Conference WEFTEC® 2018

New Orleans, LA weftec.org

11/23–28 Greater New York Dental Meeting New York, NY gnydm.com

12/4–6 POWER-GEN® International Las Vegas, NV power­gen.com

Provided by IBT

5WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

Ismail Mehmet Kalinci is an inter­national business leader with diverse entrepreneurial experience grow­ing and enhancing luxury hotels, re­sorts and destinations through the transformation of corporate culture. Track record of increasing sales and profitability by driving engagement of all levels of staff, setting high per­formance standards to deliver world­class service and developing unique guest experience to earn brand loyal­ty, applying fiscal management skills to reach organizational profit and budgetary goals.

Ismail Mehmet Kalinci arrived in Tashkent in July 2018. He has over 20 years of work experience in the tourism and hospitality industry sec­tor. Within his career, Ismail Mehmet Kalinci hold multiple positions, in­cluding F & B manager, deputy gen­eral manager, general manager in dif­ferent locations e.g. Russia, Ukraine, Kazakhstan, Turkey, Egypt. Ismail Mehmet Kalinci worked with luxury hotel groups like Rixos, Swisshotel.

Ismail Mehmet Kalinci is a graduate of University of Akdeniz in Tourism and Hotel Management Department and attended multiple professional development programs worldwide.

J o e l B e n j a m i n i s t h e M a n a gi ng Par t ner of the Central Asia prac­tice of Kins tellar. Prior to opening Kinstellar’s Almaty office, Joel prac­ticed law in Kazakhstan with two well­known international law firms. Joel advises international and local clients in various industries, includ­ing oil and gas, mining, banking, tele­communications and media.

Joel has a  broad experience in corporate and commercial trans­actions with a particular specializa­tion in banking and finance, where he has developed top rankings with­in Kazakhstan and Central Asia. He has played a leading role in numer­ous transactions including bilateral and syndicated loans, trade finance, project finance, equity / debt capital markets and banking matters. Joel

has built a strong corporate prac­tice including work on numerous M & A transactions across sectors in­cluding oil and gas, mining, telecom­munications and banking.

Joel comes highly recommend­ed by Legal 500, Chambers Global, IFLR 1000, Who’s Who Legal and Best Lawyers in Kazakhstan. Joel has been named as “Lawyer of the Year” for Banking and Finance and Capital Markets Law in the 2017–2018 edition of the annual directory Best Lawyers in Kazakhstan.

Joel is admitted to practice law in California, holds an MBA in Finance from the Wharton School, University of Pennsylvania and is a graduate of the University of Pennsylvania Law School.

In addition to Kazakh law exper­tise, Joel has more than 20  years of experience assisting clients on Uzbekistan law issues.

Dmitry Shukov was born on April 27, 1969. He graduated from the St.

weLCome ABoARd

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 20186

JoIn The AmChAm fAmILy

Petersburg Military Communications Academy with honors in 1997, ma­joring in Management, and passed training courses at the Stockholm School of Economics. He began his career in telecommunications in 1990. In July 2002, Mr. Shukov be­came the business development di­rector of DIXIS, the Russian network of mobile communication and digital electronics. He was responsible for sales and development of the distri­bution network.

In August 2004, he moved to the position of Director of Sales and Distribution of the mobile operator Tele2 Russia. Mr. Shukov worked with MTS Group and AFK “System” from October 2006 to September 2015, His position was in the Marketing Unit of the Corporate Center and he later headed the company’s subsid­iaries in Turkmenistan, Uzbekistan and India.

M r.   S hukov has held the p osi ­tion of CEO of Beeline in Uzbekistan since September 17, 2015.

Mary Fowler joined AmCham this August, shortly after moving to Tash­kent, and has taken over the editing responsibilities for this publication. She and her husband Paul, are thrilled to be living in Uzbekistan.

M a r y i s c u r re ntl y c o m p l eti ng a BA in Family Studies and Human Deve lop ment through American Public Uni ver sity. She has attend­ed Oakland Uni ver sity and Bowling Green State Uni ver sity as well. Mary brings with her 20  years of expe­

rience working with non­profit or­ganizations. Early in her career she worked for the St ate of Ohio for 12 years. She also worked for Catholic Community Services, Communities In Schools and is nationally certified as a  Disaster Case Manager, pro ­viding disaster relief services in the United States. She has volunteered throughout her career advocating for those affected by domestic violence, homelessness and poverty. Mary and her husband Paul, Elementary School Music Teacher at Tashkent International School, relocated from Dubai to Tashkent after working at Dubai American Academy. Mary is also a substitute teacher at TIS. The Fowlers are avid travelers and look forward to experiencing all the rich culture Uzbekistan and Central Asia has to offer.

Tatyana Bystrushkina is a glob­al leader with over 10 years of experi­ence in emerging markets with busi­ness, government, international or­ganizations and NGOs. Tatyana is a member of Public Council under the Ministry of Ecology and the Mayor of Tashkent city.

A s a n E x e c u t i v e D i r e c t o r o f AmCham in Uzbekistan Tatyana is involved in policy analysis for pri­vate sector development, improve­ment of investment climate and in­vestment attraction, trade and reg­ulatory reforms, regional coopera­tion, integration and trade facilita­tion. She was involved in Sustainable Development projects in the UK.

Ms. Bystrushkina has recently ear ned MSc Degree in Sustainable De ve lopment and Environmental Econo mics from the University of St. And rews, UK, focusing on poli­cy develop ment in energy and en­vironment. Prior to this, Tat yana holds MA in Inter na tional Business M anage me nt from We st minste r International Uni ver sity in Tash kent and her BA in Phi lo lo gy from the Samarkand State Insti tu te of Fo reign Languages.

Tatyana is the winner of multiple awards and scholarships including Chevening, MASHAV, Rumsfeld and is an advanced networker with 4000+ business and social entrepreneurs, academics and professionals in the United States, Central Asia, Mongolia, Afghanistan, and throughout the Middle East.

Sergey Verenin is the founder, man­aging partner and lawyer of the law firm S.Verenin’s legal group since 2011. Attorney Sergei Verenin has worked in senior positions, as well as many years of experience in the legal profession, since 2004. Trained in Switzerland, USA, Turkey.

Specialization: Legal assistance to foreign investors; protection of interests of foreign companies in Uzbekistan, representation of in­terests in economic and commer­cial courts. Legal assistance in arbi­tration courts and criminal courts for economic crimes. Legal assis­tance in criminal cases related to civil claims.

7WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

yuriy voytsitskiy, head of Compliance/ Compliance officer

Yuriy Voytsitskiy was born on February 25, 1977 in the city of Lvov (Ukraine). He graduated from the Kiev Institute of International Relations of Taras Shev-chenko, National University of Kiev with honors, specializing in International Law. He also studied compliance at the Uni­ver sity of Manchester, Manchester Bu-si ness School/ ICA.

Mr. Voytsitskiy has extensive expe­rience in the areas of Anti­corruption a n d C o m p l i a n c e l aw. H e i s t h e co­founder and Chairman of the Compliance Club of the American Chamber of Com mer ce in Ukraine (2010–2017). In 2011 he was awarded the honor of “The Best Compliance Function of a Production Company in Russia and the CIS 2011”.

Since 2010, Mr.  Voytsitskiy has headed the anti­corruption and com­pliance services and departments of leading companies in Ukraine, focus­ing on global markets.

Compliance Committee mission

Sharing experience, knowledge, and skills with other GRS professionals; pro­moting the professional development of members through exposure to new knowledge, skills, and information;

Increasing awareness of Gover nan­ce, Risk, and Compliance instruments and methods, benchmarks and trends in the sphere of anticorruption and bribery, risk management, and corpo­rate governance;

Establish a competitive landscape for development, inter alia, tele ­communication, healthcare, bank­ing, and insurance sectors by sup­porting and developing the initia­tives of the President, Parliament, and Government of Uzbekistan, as well as contributing to forming a transparent and efficient regulatory system, and positive development of the econo­my of the Republic of Uzbekistan.

hR Conference: “people/Talent development in the Reality of the Uzbek Business environment”

On May 30, 2018, AmCham Uzbekistan organized the H R conference ti­tled “People/Talent Development in the Reality of the Uzbek Business Environment”. The conference was held in the Hyatt Regency Tashkent. This conference held regional sig­nif icance because the Heads of AmCham Committees participated, as well as HR companies from Russia and Kazakhstan.

AmCham President Hugo Min der-houd opened the conference by wish­ing the HR Committee great success in hosting the first HR conference, and expressing his full support in future conferences. He expressed his grati­tude to AmCham of Kazakhstan and AmCham of Russia, representatives of

AmChAm CommITTees 2018

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 20188

Committee newS

the Ministry of Higher and Secondary Specialized Education of Uzbekistan, and the Rector of INHA University Savar Babakhodjaev, for accepting the invitation to participate in the confer­ence.

The event was moderated by Rano Nurmuratova, the Chair of AmCham Uzbekistan’s HR Committee and HR Head in Carlsberg Uzbekistan. The discussion included the topic of re­cent reforms taking place in higher education in Uzbekistan, that were initiated by Sarvar Babakhodjaev. The challenges of hiring skilled and quali­fied personnel and developing talent in the realm of regional markets was raised during presentations given by Shirin Muslimova from UzCarlsberg.

Damir Deminov, Chairman of HR Committee of AmCham Kazakhstan and the People Advisory Services Manager of Ernst & Yong Kazakhstan, shared them presentation “Current trends in People Development” and caused some controversy when dis­cussing the role that artificial intelli­gence will play in reshaping the glob­al labor market in the near future. Luc Jones, Chairman of HR Committee of AmCham Moscow, and Partner and Commercial Director to Antal CIS, discussed the need for cross­cultur­al communication when entering new markets. All agreed that this was im­portant in building new businesses and relationships. Hilola Suleymanova, the founder and managing partner

of Davinci Management Consulting, shared the results of the labor market survey with the audience.

During the wrap up discussion, par­ticipants were given the opportunity to share their views and discuss their concerns with state officials. The next AmCham HR Committee event was planned for autumn 2018.

Tourism and hospitality Committee first plenary Session

The f irst plenar y ses sion of the Tourism and Hospitality Committee of AmCham Uzbekistan was held at the Hyatt Regency Tashkent on January 16, 2018 with the participation of mem­

9WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

bers in the tourism and hospitali­ty sector. Also participating were the Ambassadors of Israel, Bangladesh and Ukraine, representatives of the Latvian Embassy, the European Union Delegation, the Deputy Chairman of the State Committee of the Republic of Uzbekistan on Development of Tourism, Mr. Shakhrukh Sharakhmetov, and Advisor of the General Director of Uzbekistan Airways, Mr. Orhan Sivrikaya.

The fundamental purpose of this committee is to put heads together to discuss issues of common inter­est related to the sector, and bene­fit from the rapid and positive chang­es currently occurring in Uzbekistan.

The Chairman of the Tourism and Hospitality Committee of AmCham Uzbekist an, General Manager of Hyatt Regency Tashkent and Area Vice President, Mr. Puneet Tandon, in his opening remarks reminded partic­ipants that accelerated development of the tourism industry’s contribution to the economy, including diversifi­cation and improvement in the qual­ity of tourist services, and upgrading of tourism infrastructure, are among five priority areas of Uzbekistan’s Development strategy for 2017–2020.

In his remarks, Mr. Tandon empha­sized how the tourism and hospitali­ty industry is said to employ, either di­

rectly or indirectly, every 9th person in the international labor force. The value chain addition by the industry is a huge contributor to most world economies. Many countries have the tourism sector contributing double digit figures to their local economies. As per WTO 2014 report, the figure for Uzbekistan is currently under 1 %.

The positive shift in Uzbek tourism development was noted by all partici­pants. The world is increasingly recog­nizing the beauty of the country, so it should be no surprise that Uzbekistan has been listed among the 50 top des­tinations to visit in 2018 by the one of the leading world travel publications,

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201810

Committee newS

Travel and Leisure. Unlike other listings that mention specific cities, the fea­ture on Uzbekistan is for the country as a whole. The recent issue of Forbes magazine also lists Uzbekistan as des­tination worth traveling to. Additionally, the December issue of the Economist magazine has a feature on the country. Mr. Tandon’s remarks highlighted the positive buzz and how fortunate we are to be in Uzbekistan at this excit­ing time for the industry in this country.

The discussion session of the meet­ing centered on several fundamen­tal gaps and potential opportunities of the hospitality and tourism environ­ment in Uzbekistan. Cultural calendars, catalogues and guide­books in sev­eral languages about all destinations in Uzbekistan were requested by tour agents, who also participated in the dis­cussion.

A m b a s s a d o r o f B a n g l a d e s h , H. E. Mosud Mannan raised matters which necessitate considerable at­tention, one of which is Uzbek liter­ary heritage, which was suggested should be translated into foreign lan­guages and distributed around the world. Ibn Sino, Al-Khwārizmā, Ulugbek, and Alisher Navoi are all names which speak for themselves. Among oth­er suggestions raised was a propos­al to organize more cultural events that would attract tourists from all parts of the globe. One such exam­

ple of this type of event was given by Ambassador of Israel, H. E. Edward Shapira. He brought up the unique­ness of Registan Square which already attracts tourists worldwide, especial­ly when concerts of well recognized global musicians take place there.

The Ambassador also raised the real issue of transit tourism which is currently undeveloped in Uzbekistan. Many Israeli tourists, for example, trav­el through Tashkent in transit to other countries and wish to visit their relatives in Uzbekistan. The existing visa regime results in lost opportunities for tour­ism because of documentation prob­lems for transit tourists. Registration re­quirements for tourists is also an issue for both individual tourists and tour­ism agencies. One proposal is to pro­long the period of time before registra­tion is required up to 10 days.

More participants, including repre­sentatives of hotels in other cities of Uzbekistan, as well as decision mak­ers in tourism and hospitality sector will take part in the future Plenary ses­sions, the idea of which was strongly supported by the representatives of the Uzbek State Tourism Committee, and Uzbekistan Airways.

UPDATE: As of February 10, 2018, citi­zens of seven countries—Israel, Indonesia, South Korea, Malaysia, Singapore, Turkey, and Japan—will be allowed 30 days visa-free travel in Uzbekistan.

AmCham tax and Accounting Committee Seminar

A tax and accounting seminar was held in the AmCham Uzbekistan office on January 24, 2018. More than 40 par­ticipants were in attendance, among them accountants, financial manag­ers and auditors of AmCham mem­ber companies. They came to meet with Ms. Zoya Tuchkova, an expert of Uzbek tax policy.

The main topics of discussion were the Law “On Amendment s and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Basic Directions of the Tax and Budget Policy for 2018”, from December 29, 2017, No. 454 and Presidential Decree No. PP-3454, al­so dated December 29, 2017, and “On the forecast of the main macroeco­nomic indicators and parameters of the State Budget of the Republic of Uzbekistan for 2018”.

During the Seminar, accountants and auditors received information about changes in specific accounting and auditing systems of Uzbekistan and were given the opportunity to ask questions. The discussion includ­ed: rates of taxes and obligatory pay­ments, taxation of permanent estab­lishments of non­residents, lists of de­ductible and non­deductible expens­es for the corporate profit tax, the tax on corporate property of legal entities, the reduction of the rates of corporate profit and property taxes for exporter companies, benefits for organizations, land tax peculiarities and other chang­es for 2018.

At the end of the seminar, Ms. Tuch-kova and seminar participants shared thoughts on bookkeeping and showed keen interest in the seminar’s topics of discussion.

Accountants within the AmCham community will continue to be the t arget audience for the Tax and Accounting Committee. Other chang­es within tax legislation and bookkeep­ing will be introduced as topics for fur­ther discussion.

11WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

monthly meeting on January 18, 2018

The AmCham monthly meeting for January 2018 featured guest speaker, Chairman of the Senate Committee on International Relations, Foreign Economic Relations, and Investments and Tourism, Mr. Alisher Kurmanov. The meeting was very well attend­ed, with 100 members and guests, including ambassadors of France, B angladesh, U K , Ukraine, Slovak Republic and Hungar y. Of par tic­ular interest were remarks about Uzbekist an’s development from Mr. Kurmanov, such a prominent and highly respected statesman.

“We have to be really fruitful, not shiny only outside and poor inside”—Senator Kurmanov remarked at the beginning of his speech. He charac­terized the past year as practice for getting rid of stereotypes and per­ceptions formed during previous de­cades. Corruption, for example, is one of the most serious barriers for the nation across all spheres of life which was tolerated in the past in ac­cordance with our mentality. Today the mentality of our people must change to zero tolerance for cor­ruption. One proposed way which was proposed to fight corruption is through the introduction of online procurement mechanisms.

The issues of public private partner­ships, tax and customs regulations, and regional development were also raised in Mr. Kurmanov’s speech. Many pow­ers will be delegated to regional au­thorities, and in every region there will be a deputy hokim (mayor) responsible for attracting investments to the region.

Mr. Kurmanov also touched on re­forms within Uzbekistan’s admi nist­ra tive­ legal sector. He explained that economic crimes won’t be considered as criminal violations anymore but will instead be classified as administrative violations.

AmCham members and guests al­so had the opportunity to personally

discuss with Mr. Kurmanov milestones within the growing investment climate in Uzbekistan, as well as any issues they are facing doing business here.

Alisher Kurmanov started his career as a diplomat in the year 2000. From 2000 to 2003, he worked as the First Secretary, and Advisor for Economic and C ommercial Af fairs for the Embassy of Uzbekistan in Great Britain. From 2007 to 2013 he was Ambassador of Uzbekistan to Singapore and Australia (since 2011), and from 2013 to 2014 he continued his diplomatic service as am­bassador to South Korea. Beginning in July 2014, Mr. Kurmanov worked as First Deputy Minister of Foreign Affairs of

Puneet Tandon (Hyatt Regency Tashkent), Deepak Raina (JV Indorama Kokand Textile LLC), Tõnu Grünberg (Ucell).

Senator for Foreign Economic Relations Alisher Kurmanov

Representatives of Diplomatic corps of Uzbekistan at AmCham Monthly Meeting

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201812

AmChAm evenTs

Uzbekistan. Then in August 2015, he was appointed to the post of Ambassador Extraordinary and Plenipotentiary of Uzbekistan to the United Kingdom of Great Britain and Northern Ireland. In June 2017, the Uzbek Senate elect­ed Mr.  Kurmanov Chairman of the Senate Committee on International Relations, Foreign Economic Relations, Investments and Tourism.

monthly meeting on January 25, 2018

The January monthly meeting was de di cated to issues surrounding Uz­be ki stan’s accession to the World Trade Organization (WTO). USAID International Expert Mr. Jovan Jekic provided an overview of the process, as well as potential implications for an Uzbekistan with WTO membership.

The history of WTO, basic princi­ples, rules, and the accession experi­ence of other WTO member countries was described in detail by Mr. Jekic in his speech. As a member driven orga­nization, WTO members must closely examine trade regimes to ensure full compliance, as partial compliance is not acceptable. Only when all mem­ber countries are happy with candi­date country results are they finally invited to become a member. While it may be easy to talk about, compliance is much more complicated in practice.

The time and effort required to make the legislation of the candidate country compliant with WTO rules, especially when it comes to import tariff duties, is extensive. The voice of each country, regardless of interna­tional economic standing, is taken in equal consideration for any decision or dispute regarding another WTO member. One of the Mr. Jekic’s fa­vorite examples is the case of Anti gua and Barbuda when it won compensa­tion from the United States in a long-running trade dispute about gambling. The WTO panel said Antigua was en­titled to compensation of $21 mln a year from the United States for be­

ing shut out of the U. S. online gam­bling market.

Uzbekistan applied for accession to WTO in 1994. Several discussions were held; however since 2005 there was no further activity in the process. Today, however, Uzbekistan’s willing­ness to become a WTO member is clear. Uzbek policymakers are ambi­tious in their plans to join WTO with­in 18 months. For regional compari­son, Tajikistan completed the process in 11 years, but it took Kazakhstan a full 20 years to become a WTO member.

Mr. Jovan Jekic serves as a trade con­sultant for USAID’s Com pe titi ve ness, Trade and Jobs (CTJ) in Central Asia

Nadav Geller and Oynur Salikhova (UzCarlsberg)

Mr. Jovan Jekic, USAID International Expert on WTO Accession

Ryder Rogers (USAID / Central Asia), Hugo Minderhoud (AmCham President), J. Laurence Wright II (US Embassy in Tashkent)

13WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

monthly meeting on february 22, 2018

The honorary speaker at the February 22nd Monthly Meeting was Deputy Minister of Justice and Rector of the Institute of Law, Mr. Yesemurat Kanyazov. The discussion centered around criti­cal issues of Uzbekistan’s image influ­encing the attraction of sustainable for­eign investments. Mr. Kanyazov raised the problem of the educational sys­tem of Uzbekistan and the lack of qual­ified specialists who can implement business projects to the required lev­el when investors open new enterpris­es. Using the example of the Tashkent

Institute of Law, he explained how the issue of securing qualified human re­sources staff can be solved. During the Q & A portion of the meeting, the top­ic of the Judicial System of Uzbekistan was discussed. One question was about the transparency of the court system. Mr. Kanyazov shared his insight into the changes expected in the court system of Uzbekistan. He stressed that the work and rulings of the court and the admin­istration of justice, must be as public as possible, so that the citizens, the me­dia, and society can observe openly. Transparency is also important if people are to have confidence in the legal sys­tem. If decisions of the courts are veiled

Activity. He is a senior attorney with over 35 years of experience in internation­al commercial law, intellectual proper­ty, customs rules and procedures, busi­ness regulatory environment, trade and investment policies. For the past fifteen years, he has worked on donor funded projects covering areas such as World Trade Organization (WTO) accession and business environment improve­ment, trade facilitation and related in­stitutional capacity building. He provid­ed extensive technical assistance in the accession process for Tajikistan, and served as Chief of Party on the USAID WTO Accession Project for Serbia and Montenegro.

Mr. Yesemurat Kanyazov, Deputy Minister of Justice and Rector of the Tashkent State University of Law

Participants of the Monthly Meeting in February

Guests of the Business Mixer

Umida Tadjieva (Health and Travel LLC)

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201814

AmChAm evenTs

in secrecy, this could lead people to mis­trust the justice system. If this happens, it is likely to negatively influence the in­vestment climate of the country.

Another issue raised was the prob­lems with Intellectual Property Rights faced by franchising companies pres­ent in Uzbekistan and by companies who are not yet in the country yet, such as Starbucks. Solving the issues of Intellectual Property Rights is neces­sary to attract new and valuable fran­chisers to Uzbekistan.

A cocktail reception followed the meeting and members and guests were invited to share their comments and concerns with Mr. Kanyazov.

monthly meeting on April 4, 2018

O u r A p r i l 4 t h m e e t i n g w a s h e l d i n t h e D o m e R e s t a u r a n t l o c a t­e d in t h e I nte r n ati o n al H ote l of Ta s h ke n t . T h e h o n o r a r y s p e a k­er was Olimjon Muhamadjanovich U marov. M r.   U marov is th e F ir s t Deput y Minister for the develop ­m e n t of i n fo r m a t i o n t e c h n o l o ­gies and communications of the Republic of Uzbekistan. The Ministry of Information Technologies and Communications of the Republic o f U z b e k i s t a n w a s f o r m e d o n February 4, 2015 by the decree of the President of the Republic of Uzbekistan.

D u r i n g h i s h e a r t fe l t s p e e c h , Mr.  Umarov discussed the impor­tance of ICT development in the Uzbekistan. As continued growth in this sector is anticipated, the Ministry of Information Technologies and Communication is focused on reform policy in IT education. As a result, E-Academy has been de­veloped to allow for distance learn­ing in Uzbekistan. This IT specialized school is named after Muhammad al­Khwarizmi and provides IT cours­es for children from low­income families and is in the process of es­tablishing modern coworking cen­ters throughout Uzbekistan. There

are 99 graduates of Inha University in Tashkent and 1,487 graduates of Tashkent University of Information Technologies this year. 213 of these graduates are software engineers and are potential candidates for em­ployment in the IT sector.

M r.   U m a rov a l s o s h a re d t h at E­Government is another great prior­ity of the Ministry. He stressed the im­portance of positive interactions be­tween citizens and state authorities. He explained that citizens who expe­rience efficient services online will be likely to continue to use these servic­es and let others know how convenient they are. This will prove to be a pro­

Igor Kolesnikov (UzBAT)

Jean Henry, Dale Henry (OASIS FES LLC) and a representative of the MITC of Uzbekistan

Olimjon Umarov, MICT Deputy Minister

Guests of the Monthly Meeting in April

15WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

EBRD’s views on the recent reforms and current activities in Uzbekistan. Special guests included Ambassadors of Switzerland, Israel, Bangladesh and Slovak Republic.

The former World Bank’s Country Manager to Uzbekistan, David Spears (now the Chairman of the society

“Friends of the Nukus Museum”), ope-ned the evening by updating guests with the society’s goals in maintaining the museum’s budget and taking care of the important paintings. He explained that the art was collected at the begin­ning of the 20th century by Russian artist and archeologist Igor Savitsky. He then introduced Mr. Drakinos.

ductive process for the government as well as the citizens of Uzbekistan.

To implement the plans discussed, and to attract more investors to all sectors of Uzbekistan, improvements in telecommunication infrastructure is necessary. Regional broadband de­velopment and organization of the

“last mile” providing high-quality mo­bile connection and connecting all public agencies to the interdepart­mental data network are among high priority areas of ICT development. In 2018, the Ministry plans to increase the internet speed up to 10 times, in­stall 4,000 base stations, lay 2,000 km of fiber optics and create a long-term

plan for the development of digital tele­vision (DTV), including the introduction of new technologies (4K, 8K, etc.)

During cocktail hour, AmCham members were given the opportunity to ask questions and share concerns with Mr. Umarov.

monthly meeting on April 18, 2018

The honorary speaker during our April 18th meeting was Associate Director of the European Bank for Reconstruction and Development in Uzbekistan, Mr. Alkis Drakinos. AmCham mem­bers and guests came to hear about

Alkis Drakinos, Associate Director of the European Bank for Reconstruction and Development in Uzbekistan

Chingiz Babaev (KPMG) and Anvarkhon Azamov (Ernst & Young)

Omon Muminov (Softline) and Zulfiya Islamova (S. Verenin's legal group) Vladimir Shalajev (IT company) and Oybek Makhmudov (Baker Tilly)

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201816

AmChAm evenTs

Mr. Drakinos shared that following the launch of the broad reform pro­gram in Uzbekistan, the EBRD expand­ed its engagement with Uzbekistan by opening an office and signing the first new projects since 2010. The Bank al­so signed three loan agreements dur­ing First Vice President Bennett’s vis­it for a combined total of USD 120 mln. The largest will be a USD 100 mln fa­cility to the National Bank for Foreign Economic Activity of the Republic of Uzbekistan for on­lending to small and medium­sized enterprises (SMEs) and trade finance. At the same time, the agribusiness company LLC JV Agromir Juice and the medical sup­

plier Mutabar Medical Standard LLC will receive approximately USD 10 mln loans each for their growth and ex­pansion. Finally, the EBRD signed a  Memorandum of Understanding with the Chamber of Commerce and Industry of Uzbekistan on joint work to improve competition between SMEs in the context of the Bank’s Small Business Initiative.

The EBRD’s current objectives in Uzbekistan are to support domes­tic SMEs and promote trade finance and cross­border cooperation. They also plan to facilitate foreign direct in­vestment that will result in the trans­fer of technologies and know­how to

improve the competitiveness of the Uzbek economy.

EBRD President Sir Suma Chak-ra barti visited Tashkent in March of 2017 and signed a Memorandum of Understanding with the Government of Uzbe kistan launching this new ven­ture. The EBRD is the largest institution­al investor in Central Asia, with close to EUR 11.6 bln (USD 12.3 bln) committed to projects in various sectors that range from infrastructure to agriculture, with a focus on private sector development. Between 1992 and 2010, the EBRD in­vested EUR 894 mln in Uz be ki stan, spanning 54 projects. Entering a new stage of engagement in the country, the Bank has already identified possi­ble new projects, some of which were signed at the end of 2017, with more to follow in 2018.

monthly meeting on may 10, 2018

The May 10 th meeting was held to discuss possible investment op ­portunities across Uzbekistan. The American Chamber of Commerce invited all members and arranged honorary speakers Deputy Mayor of Tashkent, Alisher Tilyaev, and Head of the Department of Investments, I n n o v a t i o n s , D e v e l o p m e n t o f Tourism, and Assistance of Priva ti-zed Enterprises, Rustamkhon Azizov.

H.E. Olivier Chave (Ambassador of Switzerland) and David Pearce (Friends of the Nukus Musuem)

Nelly Djurabaeva (M&M Militzer & Muench) and Pavel Lee (KaynoKayra Ltd.)

Anna Shapkina and Oksana Yakubova (Agessa Grup)

17WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

He shared that in 2017, over 2.6 mln tourists visited Uzbekistan. This is 33 % higher than in 2016. Also, due to visa­free regimes granted to citi­zens from 16 countries, the number of tourists is expected to increase even more. To accommodate the increas­ing numbers of visitors to Uzbekistan, hotel numbers have increased to 171.

Finally, Mr. Azizov discussed Small Industrial Zones (SIZ). He stated that they are being developed in an effort to accelerate modernization in re­gions outside of Tashkent. If leased by foreigners, these zones will be giv­en preferential rental rates and will be exempt of property and income taxes for two years. He also extend­ed President Mirziyoyev’s guarantee that foreign investments will be in­violable, and that all profits made in Uzbekistan would be transferred at no cost.

At the end of the meeting a brief Q & A session was held during which representatives of Aggreco inquired as to the possibility of purchasing private property. The Deputy Mayor, Mr. Tilyaev, assured him that after a foreign company has leased prop­erty for 10 years, it may apply for per­manent ownership. A short cocktail party followed the session and pro­vided opportunities for guests to speak privately with city administra­tion representatives.

Together, they explained which sec­tors of Uzbek economy were devel­oping and identified ones that would be interesting to future investors.

During the last twenty years of Uzbekistan’s independence, there were limited advantages for foreign businesses to establish a presence here. This was due to the conver­sion rate which gave companies very low amounts of dollars for the Uzbek soum gained from profit. This made it difficult to make a reasonable prof­it, and future investors were hesitant to put their money into Uzbekistan. Fo r tu n ate l y, t h e n ew Pre si d e nt , Shavkat Mirziyoyev, passed curren­

cy law reforms in September of 2017 and Uzbekistan was able to open to foreign capital.

Mr.  A zizov opened his speech by discus sing Uzbekist an’s G D P growth. A World Bank graph showed that out of the Central Asian region, Uzbekistan had the highest grow­ing GDP rate (7.8 %). This surpassed Tajikistan (6.9 %), Turkey (2.9 %), and Russia (—0.2 %). Overall, Uzbekistan officially has the world’s 5th largest growing economy. This is a positive sign for investors, as a growing econo­my indicates that local business ven­tures are likely to thrive. He also dis­cussed the growing tourism industry.

AmCham members at May Monthly Meeting

Bakhrom Salahitdinov (Business Leasing) and Donald Nicholson II (AmCham)

Alisher Tilyaev, Deputy Mayor of Tashkent City for investments, innovations, industry development, tourism and assistance to privatized enterprises

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201818

AmChAm evenTs

monthly meeting on may 24, 2018

The May 24th meeting was held to recog­nize Ambassador of the United States of America in Uzbekistan, Pamela Spratlen, and her departure from her post. All Am­Cham members were invited, as well as representatives from other embassies. These esteemed guests included the Ambassadors of Hungary, Switzerland, the EU, and members of the Latvian and French Embassies. Several non­member companies were present also, including Microsoft, Mars, and Artishok.

President of AmCham, Hugo Minder-hould, opened the even by commend­

ing Ambassador Spratlen for her work to improve diplomatic relations be­tween Uzbekistan and the United States. Ambassador Spratlen then addressed members and guests by sharing her thoughts on the current political and economic situation in Uzbekistan. She stated that both the US and Uzbekistan were committed to progress and recog­nized the new regulations guaranteed by the Uzbek government. She followed up with sharing that for the desired chang­es to take place, both countries must be committed to change.

Ambassador Spratlen also dis­cussed President Mirziyoyev’s suc­cessful visit to Washington D.C, stating

that until recently, such a meeting be­tween Presidents would have been un­thinkable. She felt this was a testimo­ny to how improved Uzbek­American relations had become. She acknowl­edged Uzbekistan’s efforts to join the AUCC, the Athletic Council, and most importantly, the WTO (World Trade Organization). Summarizing her speech, she respectfully quot­ed President Mirziyoyev, stating, “the changes currently taking place in the government will be irreversible”, giving the US government and foreign busi­nesses a guarantee that current im­provements will remain.

During the brief Q & A that followed Ambassador Spratelen’s speech, the Director of Tashkent International School asked how the Uzbek and American governments were planning on developing Uzbekistan’s untapped human capital, especially in areas out­side of Tashkent. The Ambassador re­plied by saying that the subject had been discussed, but that a solution to this issue is currently in very early stages.

Wr a p p i n g u p t h e e v e n t , t h e Honorar y President of AmCham, Do nald Nicholson II, extended his cong ratulations and presented gifts to Ambas sador Spratlen. The gifts included a  hand car ved wooden memorial plaque and a painting of a  wooden door inside Tashkent ’s Old District. The symbolism and im­

AmCham BOD awarding Appreciation Diploma to the US Ambassodor H. E. Pamela Spratlen

Dilmurod Yunusmetov (Eurobasis LLC) and Oydin Atashikova (Grant Thornton)

Myna Anderson (TIS)

19WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

agery the painting represented was admired and greatly appreciated by Her Excellency.

A brief cocktail party followed the event, giving attendees the opportu­nity to network with each other and share their thoughts on Ambassador Spratlen’s speech.

monthly meeting on June 21, 2018

Our June meeting was held in the Dome Restaurant of the International Hotel Tashkent and was well attended by AmCham members, representa­tives of international organizations and

diplomatic circles of Uzbekistan. The topic of this meeting was current activ­ities of the National Agency of Project Management Under the President of the Republic of Uzbekistan.

T h e h o n o r a r y s p e a ke r of t h e evening was Mirpayoz Mirsaatov. Mr.  Mirsaatov is the Head of the Public Procurement Super vision D epar tment . Previously, he was AmCham Uzbekistan’s member of the Board of Directors but vacated that position due to new commit­ments. NAPM was introduced dur­ing the summer of 2017 by President of Uzbekistan Shavkat Mirziyoyev for the purpose of introducing mod­

ern tactics and methods of control based on the principles of project management. This would ensure practical use of resources when forming governance and econo ­my systems . It s mission is to in ­crease efficiency and transparen­cy of management over execution of government programs and pub­lic expenditure. In accordance with the Presidential Decree-3150 the main functions of NAPM are to intro­duce and maintain: Unified National Informational System for Project Management (UNISPM): effective­ness and transparency of programs and investment projects; common

Yuriy Voytsitskiy and Mahmud Mahamadsaidov (UNITEL)

Murat Yakubov (Grant Thornton) and Jason Wilcox (U.S. Embassy Tashkent)

Mr. Mirpayoz Mirsaatov (NPMA)Larry Wright (U.S. Embassy Tashkent) and Mirzakhid Mirzaitdinov (MULTIVAC)

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201820

AmChAm evenTs

information space for public pro­curement; implementation of feasi­ble and effective projects; analysis of projects for signs of corruption and other abuse; project management skills development.

AmCham members chose to in­vite representatives of NAPM be­cause since the organization was es­tablished, the structure for conduct­ing business for many companies has changed and members wished to learn about the new operational prin­cipals. Mr. Mirsaatov shared insight in­to NAPM’s main functions. These in­clude improvement of government asset management systems and the

purpose of the programs and their objectives. He also explained the public procurement system and its laws and options. Mr. Mirsaatov stat­ed that transparency was key in real­izing their activities with their share­holders.

Following the presentation, mem­bers and guests were given the oppor­tunity to ask questions and discuss is­sues they experienced while carry­ing out their activities in Uzbekistan. Mr. Mirsaatov and his colleagues re­ceived these questions graciously and did their best to answer all ques­tions. The event ended with an enjoy­able cocktail party.

business mixer on January 19, 2018

AmCham members enjoyed the w a r m h o s p i t a l i t y o f W y n d h a m Tashkent Hotel at the January busi­ness mixer, which was sponsored Train Consultancy LLC, Gold Member of AmCham Uzbekistan.

The event was held within the Turkuaz Restaurant of the Wyndham Hotel, which ser ved as a  beauti­ful venue, kindly organized by Train Consultancy LLC. This is not the first time a business mixer has been organized and sponsored by Train Consultancy, which proved once again to be a memorable event en­joyed by all.

“We are proud to have such a suc­cessful member like Train Con sul tan­cy LLC,” stated AmCham President Hu go Minderhoud in his opening re­marks. Mr. Minderhoud introduced new AmCham members to assem­bled guest s, including new Gold Member Wyndham Tashkent Hotel, as well as t wo Bronze members, Gor International and Marvel Food Products.

AmCham membership contin­ues to grow. Business mixers like the January event at the Wyndham give AmCham members a chance to meet new member companies and network for business connections.

Oybek Makhmudov (Baker Tilly), Dominique Rachez (Aggreko), Arsen Pogosov (Aggreko)

Oybek Makhmudov (Baker Tilly) and Malika Abduganieva (CJ ICM Tashkent ) Veronika Saparova and Nadejda Russkih (Radisson Blu Hotel)

21WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

business mixer on february 28, 2018

Kosta Legal sponsored the February Business Mixer which was held in the Lotte City Hotel Tashkent Palace. The event which featured a talent­e d ban d of a  mu sician s wa s e n ­joyed by all guests, including mem­bers and friends of AmCham, repre­sentatives of local and foreign busi­nesses, honorable Ambassadors of foreign countries, and international organizations.

Tõnu Grünberg, Vice President of AmCham Uzbekistan, gave welcom­ing remarks emphasizing how hon­

Many honorary guests and good fr i e n d s of A m c h a m Uzb e k i s t a n , a m o n g t h e m H E V i o l a i n e D e V i l l e m e u r, t h e A m b a s s a d o r o f France, enjoyed the atmosphere of the evening.

Members enjoyed the presen­tation by Train Consultancy, one of Uzbekistan’s leading companies across several market categories, including IT and textiles. Their busi­ness model is successful not only thanks to smart diversification, but also because of their strong team of professionals.

Founded in 2009, Train Con sul-tan cy is a progressive and dynami­

cally developing company which has earned its strong reputation within the business community of Uz be­kistan.

They specialize in providing ser­vices in the f ield of information technologies and telecom mu ni ca­tions at all stages ranging from proj­ect consultation through to imple­mentation.

The second direction of the com­pany is production of textiles under the brand “Platin Textile” specifical­ly for export to their primary markets in the Russian Federation, Belarus, Ukraine, Turkey, Poland, Germany, and Portugal.

Azizbek Akhmadjonov (Kosta Legal), Nodira Yadgarova (TIC)

H. E. Ambassador Mosud Mamman (Embassy of Balgladesh), Mustafa Yuzbas (Train Consultancy LLC)

Nargiza Khachaturyan (Kosta Legal) and a guest

Guests of the Business Mixer in January

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201822

AmChAm evenTs

ored the AmCham family is to have Kosta Legal on board. Nail Khasanov, founding partner of Kosta Legal, gave an informative presentation about their services and activities. Guests also enjoyed delicious food, pleas­ant company, and the event’s cordial atmosphere.

Kosta Legal is a results-oriented law firm offering a wide range of le­gal services to both new entrants and well­established businesses, with particular expertise in offering advice and services to foreign inves­tors. Based in Tashkent, Uzbekistan, Kosta Legal works with multi­nation­al and Fortune 500 companies, f i­

nancial institutions (including re­gional development banks), foreign governments, start­ups, and small and medium­sized businesses.

business mixer on April 5, 2018

F o r t h e s e c o n d t i m e i n s i x m o n t h s , A m C h a m G o l d m e m ­ber Perspektiva Stroy Invest host­e d t h e A p r i l 5 t h b u s i n e s s m i xe r. Members and friends of AmCham met at the Turkuaz restaurant in Wyndham Tashkent Hotel. Director and share holde r of Pe rsp e k tiva St roy I nve s t , M r.   U g u r A k i n a n d

A m C h a m V i c e P r e s i d e n t To n u Grunberg opened the meeting by recognizing special guests. Mr. Akin w e l c o m e d t h e F i r s t C h a i r m a n of t h e C h a m b e r of C o m m e r c e and Industry of Uzbekistan Islam Iasimov. The Director of the Uzbek­Turkish National Civilization Center D r. O m e r S a l m a n a n d H o n o re d A r t i s t o f U z b e k i s t a n , M a n s u r Ta s h m atov. A l s o i n at te n d a n c e were the Ambassadors of Bulgaria and H ungar y and new A m Cham Uzbekistan member, Agrico BV NL.

Guests were able to enjoy a love­ly spring evening and fine Turkish cui­sine while discussing business op­

Nail Hassanov (Kosta Legal) welcomes guests of the Business Mixer

Guests of the Business Mixer

Oksana Yakubova and Anna Shapkina (Agessa Grup)

AmCham member and guests enjoying the Business Mixer sponsored by Kosta Legal

23WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

portunities in the beautiful restau­rant and on the terrace.

Perspektiva Stroy Invest Const-ruc tion company was founded in 199 5 by Mr.   Akin. Throughout it s 22 years of operations in the Uzbek market, the company has success­fully completed a number of major projects and has taken a leading po­sition within the construction market of Uzbekistan.

Perspektiva has built a  reputa­tion as a  reliable and respected partner who fulfills professional ob­ligations and they confident in the continued and future success of their company.

business mixer on may 11, 2018

The British School of Tashkent gra­ciously sponsored May’s Business Mixer. This event featured not on­ly AmCham’s member companies, but other esteemed guests as well. Attendees enjoyed a lovely meal while sharing business ideas and building professional relationships. To cap off the evening, students from the British School provided tours of their new campus.

The British School of Tashkent completed its new Secondary School campus this year. The additional cam­

pus includes new classrooms, three sports halls, a new laboratory and a  25-meter swimming pool. Music and art rooms and a  theater have been added to expand the fine arts programs. 3D printers and a creative breakout space have also been add­ed to cater to new trends in technol­ogy. Not only do Secondary students and staff benefit from the new cam­pus, but Primary School does also, as they will have more space in the first campus. The new campus ensures that students of the British School have the tools and opportunities nec­essary for an innovative learning expe­rience, which will prepare them for uni­

Hilola Suleymanova and Timur Chutbaev (Davinci Solutions LLC)

A participants of the Business Mixer in the new facilities of the British School of Tashkent

A guest of the Business Mixer

Umid Aripdjanov (Centil Law Firm), Tatyana Bystrushkina (White & Case), Farrukh Irnazarov (Central Asia Development Institute)

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201824

AmChAm evenTs

versity and future careers in the mod­ern world.

BST opened a single, small cam­pus in 2010. Over the next five years, the school experienced continuous growth and expansion that included Lower and Upper campuses. BST is the only British-Uzbek co-curriculum school in Uzbekistan. It is fully accred­ited with the UK Examination Board, Cambridge International Examinations (CIE) and Edexcel. BST began their IGCSE program in August of 2017 and later added A level courses.

For more details about the school please visit:

https://www.britishschool.uz/.

business mixer on June 28, 2018

Our June 28 th Business Mixer was held at Jumanji Restaurant and spon­sored by HOLOS LLC. HOLOS has been a valuable member of AmCham since 2001. AmCham Board Director, Otabek Muhammadiyer, opened the event by welcoming guests, inform­ing all that the next mixer would be held in September, and introducing Khalmurat Manaev. Mr. Manaev is one of the founders and owners of HOLOS. Mr. Manaev expressed his apprecia­tion to AmCham for a long partner­ship and shared important milestones

of AmCham activities in Uzbekistan. One of these memories he shared was that 15 years ago, HOLOS also hosted a mixer in the very same restaurant (Jumanji) as today’s mixer.

HOLOS is a leading company that has provided customs brokerage in Uzbekistan for more than a  de­cade. HOLOS has gained consid­erable recognition for their experi­ence and outstanding ability in han­dling cargo that must pass customs boarder clearance of the Republic of Uzbekistan. HOLOS is able to provide services in an efficient and timely manner due to their many branches across the country. Along with the Tashkent branch, HOLOS is also located in the Karakalpak Republic and the regions of Andijan, B u k h a r a , K a s h k a d a r y a , N a v o i , Surkhan­Darya and Syr­Darya.

Please visit their website for more information: http://holos.uz/

The June mixer proved successful in many ways. Guests had opportuni­ties to discuss future business plans and network with old and new friends while enjoying the fine cuisine and en­tertaining atmosphere of Jumanji. The long and mutually beneficial relation­ship between AmCham and HOLOS serves as an example of the ultimate goals of AmCham, which are to build strong relationships with businesses in the community.

Adrian Macaulay (British School of Tashkent)

A Guests of the Business Mixer

Yana Krutoyarskaya (British School of Tashkent) and Myna Anderson (TIS)

Maria Staravoytova (CJ ICM Tashkent), Oscar Khusnullin (Holos Ltd.) and Malika Abduganieva (CJ ICM Tashkent)

25WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

new membeRS

In 1973, a group of potato growers in Netherlands joined forces to create one, new cooperative. This signaled the birth of Agrico. Now, years later, this cooperation has evolved into an organization that markets potatoes all over the globe, breeds new varieties and invents innovative solutions. This demands a lot of effort, but we know what motivates us: providing the best potato for millions of consumers all over the world.

Agrico started its activity in Uz­b e k i s t a n i n 19 9 3 , wh e n n o b o d y

real ly knew how to grow potatoes. Uzbekistan imported hundreds of thousands tons from Russia. Howe-ver the transport costs became ex­orbitant and the Govern ment of Uzbekistan decided to start its own Potatoes’ production. So Agrico as usual was in right moment and at the right place.

They won tender on supplying seed potatoes for that grandiose purpose. Since that time Agrico is the main supplier of high quality of seed potatoes to Uzbekistan. Uzbek farmers in the beginning could dis­tinguish potatoes by color only and now they order potatoes for fries and crisps for salads and starch! Uzbek producers built professional potatoes stores and processing fac­tories. It ’s long way to success and Agrico is proud to be one of the key players in it!

“Beeline” brand is a trademark of “Unitel” LLC in Uzbekistan and was founded in 1996. Currently, the company is the leading telecom operator in Uzbekistan. From September 12, 2006, “Unitel” be­gan providing services under the inter­nationally recognized “Beeline” brand. On December 2, 2008, “Unitel” be­came the first company in Uzbekistan to announce the commercial launch of a 3G network. In 2014, “Beeline” was al­so the first in Uzbekistan to launch a 4G LTE. By 2015, the number of subscrib­ers reached 9.9 mln people.

VEON. “Buzton” joint venture was formed in 1995. The principal activ­ities of the first phase were interna­tional services, including local and long distance digital telephone ser­vice. In 2000, the company expand­ed its activities in the telecommunica­tion market by providing data services and Internet access. Today “Buzton” is the operator of integrated communi­cation services providing clients a full range of modern telecommunica­tion services including: telephony, da­ta transmission, and Internet access. In 2008 “Buzton” became part of the

“VEON” group of Companies.VEON is both the new name of the

company and of a new personal digital

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201826

weLCome ABoARd

platform, which is intended for deploy­ment across all markets in the coming year. With an increased free float of 24.1 % and shares listed and traded on NASDAQ and Euronext Amsterdam, VEON serves over 235 mln custom­ers across 13 markets.

The core communication and con­nectivity services VEON provides are recognized as key drivers of social and economic development. With accel­eration in digital strategy, alongside core business processes, VEON in­tends to develop innovative technol­ogies to deliver new services and drive growth. VEON remains firmly commit­ted to the well­being of the communi­ties they serve by transforming lives with new and creative digital servic­es while continuing to make a positive, lasting and sustainable impact.

Comfort Technologies Office was founded in 2010 in Kazakhstan. As of today company is the dealer of sev­eral European office furniture man­ufacturers. The main partners are

Kinnarps (Sweden) and Narbutas (Lithuania). For the years of opera­tion in Central Asia region company was striving to meet the demands of its clients and offer various solutions, starting form research and analysis and ending up with implementation of a project.

On Uzbekistan market compa­ny provides turn­key solutions on space planning and office furniture delivery, ergonomics trainings, inte­rior design.

The benef it s company can of­fer to its clients—individual and cre­ative approach, flexible price offers, planned project logistics, after sales services.

We create inspiring atmosphere where people can successfully work and learn.

Marvel Dry Foods LLC is importer of coffee beans and other food prod­ucts in Uzbekistan market. Planning to start agricultural foods processing for export to EU countries along with

dry food products outsourced from local farmers. Also render consulting services for foreign companies enter­ing Uzbekistan market with new prod­ucts and services.

The Law Firm “S.Verenin’s legal group” registered in the Register of the Ministry of Justice of the Republic of Uzbekistan under No 467 was estab­lished in June 2011 by reorganization of the Legal Bureau “S.Verenin’s” op­erated since 2004, and attachment of the Legal Bureau “ADVICE OPTIM” which also carried out its activity since 2004.

The subject of our company’s ac­tivity is the implementation by its partners of the practice of law and the provision of legal and consult­ing services by the firm to its princi­pals on all issues of doing business in the Republic of Uzbekistan, includ­ing those related to the protection of the interests of principals and per­sons in criminal proceedings in bank­ruptcy.

27WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

Set in the hear t of Tashkent cit y, Wynd ham Tashkent is an upscale ho­tel which is a perfect choice for travel­ers who prefer a high level of service and comfort. The Wyndham Tashkent was built in 2003 and fully renovated in 2017. With a blend of modern and clas sic styles, the hotel features indoor and outdoor swimming pools, a health club, three food and beverage venues and five conference halls. Other ame­nities include a beauty salon, business

center, currency exchange office, car parking, luggage storage and travel agency.

“Premium Silk Road” travel agency is another brand of JV LLC “Silk Road Tourism Investments” which offers inbound/outbound tours and inter­national air tickets. The hotel offers 206 rooms and 5 different catego­ries of rooms (from Superior room to Presidential Suite), equipped with mini­bar, individually controlled air condi­tioning and coffee/tea making facilities.

Five fully equipped conference halls are suitable for different kinds of events: from corporate dinners to press conferences and business meetings. Decorated in an exclusive

style, banquet halls are an ideal choice for your wedding or birthday celebra­tions. High­level service, creativity and classic atmosphere of Wyndham Tashkent Hotel—guarantees success of any event.

Wyndham Tashkent Hotel is owned by “Apeas Construction Co. Inc.” com­pany in Turkey and JV LLC “Silk Road Tourism Investments” Uzbekistan.

DaVinci Management Consulting—specializes in management consult­ing with a focus on analysis, creation and implementation of a business management system, development and implementation of business pro­cesses, as well as the development of the human capital of client companies.

For the company, is important the result of cooperation: we help our cli­ents grow.

Kinstellar is the leading independent law firm in Emerging Europe, Turkey and Central Asia, with offices in Almaty, B elgrade, B ratislava, B ucharest , Budapest, Istanbul, Kyiv, Prague, Sofia and Tashkent.

The Tashkent office is a fully in­tegrated part of Kinstellar’s Central Asian coverage. The team of local lawyers is led by Joel Benjamin, who has two decades of valuable expe­rience. The Tashkent office handles the full range of corporate and com­mercial law requirements for clients and boasts particular strengths in the oil and gas, mining, and banking and finance sectors.

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201828

weLCome ABoARd

On January 18, 2018, AmCham mem­bers met with the World Bank Chief E xecutive O f f icer M s .   Krist al ina G eorgieva and World B ank V ice President for Europe and Central Asia, Mr. Cyril Muller. The meeting was led by President of AmCham Uzbekistan Mr. Hugo Minderhoud. The meeting was held to discuss the opportunities and challenges of reforms taking place in Uzbekistan.

During her visit to Uzbekistan, Ms.  Georgieva spent two days re­viewing wide ranging reforms direct­ed at boosting the country’s econo­

my and improving the lives of popu­lation. Her agenda included a meet­ing with the President of the Republic of Uzbekistan, Mr. Shavkat Mirziyoyev. The parties exchanged views on the priorities of bilateral cooperation and discussed key areas of partnership and implementation of prospective projects. Ms. Georgieva offered sup­port to the country’s reform program, particularly in the areas of agricultural modernization, public service delivery and private sector development.

Ms. Georgieva also met with sever­al high-ranking officials that included

Prime Minister Abdulla Aripov, Deputy Prime Minister of Finance, Djamshid Kuchkarov, Deputy Prime Minister Sukhrob Kholmuradov and Deputy Prime Minister and Chair of the Women’s Committee of Uzbekistan Tanzila Narbayeva.

The World Bank Group is com­mitted to continue their support of Uzbekistan’s reform agenda with fi­nancial and technical assistance. They work closely with authorities on improving access to water, en­e rg y, e du c atio n a n d h e alth c a re among other.

dIsCUssIons

meeTIng on JAnUARy 18, 2018 wITh ms. kRIsTALInA geoRgIevA, woRLd BAnk ChIef exeCUTIve offiCeR

31WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

Flat personal income tax / 8 % em-ployee’s social security contri-bution abolished/ Unified Social Payment rate reduced / 3.2 % turn-over tax abolished / Change in cor-porate income tax rates / New cri-terion for simplified tax regime / Reduction of property tax rate / Withholding tax rate on dividend and interest income reduced.

In this issue, we have summarised the most notable changes to tax legis­lation in accordance with recently ap­proved concept of tax reform.

Presidential Decree of 29 June 2 0 1 8 a p p rove s t h e C o n c e pt of Enhancement of Tax Policy of the Republic of Uzbekistan (Concept).

Concept is generally aimed at: P reduction of tax burden;

ConCepT of TAx RefoRmTax and Legal Alert / Issue No. 3 / 3 July 2018

P s i m p l i f i c at i o n of t a x s y s t e m through unification of taxes with similar tax base, reduction and sim­plification of tax reporting;

P simplification of tax legislation, elim­ination of contradictions, strength­ening of protection of rights and in­terests of bona fide taxpayers;

P ensuring stability of tax legislation and direct application of Tax Code by reducing references to by­laws, establishing rates of taxes and other obligatory payments in the Tax Code;

P improvement of tax administration, including improvement of tax con­trol mechanisms, including imple­mentation of modern technologies.In accordance with the Concept

the following changes are to be intro­duced as of 1 January 2019:

payroll taxes P Personal Income Tax (PIT) to be

charged at a flat rate of 12 % (cur­rently, charged at progressive rates from 7.5 % to 22.5 %).

P The rate of contribution to the indi­vidual accumulative pension system to be decreased from 2 % to 0.1 %.

P Contribution to Non-Budget Pen-sion Fund (PFC) to be abolished (current rate—8 %).

P Unified Social Payment (USP) shall generally be reduced from 25 % to 12 %. However, 25 % USP will re­main payable for by budget organ­isations and state enterprises, le­gal entities with state participation of at least 50 %, as well as legal en­tities where at least 50 % belongs to the latter.

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201832

legiSlAtionS

direct taxes P Mandatory contribution to the des­

ignated state funds charged on turnover (current rate—3.2 %) to be abolished.

P Following changes are introduced to Corporate Income Tax (CIT) rate:

R reduction of general CIT rate from 14 % to 12 %;

R reduction of CIT rate for banks from 22 % to 20 %;

R increase of CIT rate for mobile op­erators from 14 % to 20 % along with abolishment of taxation of excess profits.

P Dif ferent criterion to be intro ­duced for taxpayers eligible for simplified tax regime. Thus, cur­rent headcount criterion to be replaced by the annual turnover threshold of UZS 1 bln. (approxi­mately, USD 128,200 at the cur­rent exchange rate). Enterprises with annual turnover of more than UZS 1 bln. shall be subject to the standard tax regime.

P The rate of Unified Tax Payment un­der the simplified tax regime to be generally fixed at 4 %.

P Property tax, land tax and water use tax to be extended to all en­tities, including enterprises paying

Tax Current regime Proposed regime (as of 1 January 2019)

CIT General rate—14 %Commercial banks—22 %Mobile operators—14 % on profit attributable to profitability lower than 20 % and 50 % rate on prof­itability higher than 20 %

General rate—12 %Commercial banks—20 %Mobile operators—20 % regardless of profitability

Property Tax 5 % 2 % (extended to all taxpayers)

Mandatory Contribution to Designated Funds

3.2 % abolished

WHT on dividends and interest 10 % 5 %

Unified Tax Payment 5 % 4 % (Property tax, Land tax and Water use tax intro­duced for UTP payers)

Small entity criterion Average annual headcount (25–200) Annual turnover (approx. USD 129 thousand)

PIT Up to 1 MMWA—0 %From 1 to 5 MMW—7.5 %From 5 to 10 MMW—16.5 %More than 10 MMW—22.5 %

12 %

USP Large enterprises—25 %Small enterprises—15 %

12 %—general rate25 %—for budget organisations and state enterpris­es / entities with state participation of certain level

Contribution to Non-budget Pension Fund

8 % abolished

A MMW—Minimum Monthly Wage. 1 MMW = UZS 172,240 (approximately USD 22)

taxes under the simplified tax re­gime.

P Property tax rate to be reduced from 5 % to 2 %.

P Income tax withheld at source of payment from dividend and inter­est income to be reduced from 10 % to 5 %. While it is not clear in the Decree, we understand that the reduced rate shall apply to div­idend and interest income paid to both residents and non­residents of Uzbekistan.

indirect taxes P VAT rate to be kept unchanged at

20 % for 2019. Concept envisages introduction of fully­fledged VAT credit system, narrowing the list of VAT exempt turnover, as well as re­duction of VAT rate after 2019.

P Input VAT on capital items will be eligible for offset (previously, cap­italised).Decree also approves the struc­

ture of Working Groups that will be re­sponsible for coordination of develop­ment of a new edition of the Tax Code of Uzbekistan (the draft to be prepared by 1 December 2018) and abolishment of inefficient tax and customs benefits and privileges (proposal on abolition to be prepared by 1 November 2018).

For convenience purposes, in the table below we have summarized main changes in tax rates.

“PricewaterhouseCoopers” LLC88A, Mustaqillik prospekt,Tashkent 100000, UzbekistanT: +998 (78) 120-6101www.pwc.com/uz

© 2018 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind an­other member firm or PwCIL in any way.

The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any ac­tion, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.

33WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

UzBekIsTAn: RevIew of mACRoeConomIC IndICAToRs

January­June 2018

Billion UZSCompared to the

same period of the previous year

Gross domestic product 152,533.4 104.9

Industrial output 39,865.2 106.1

Agricultural production 21,863.9 102.7

Investment in fixed assets 41,239.2 113.4

Construction work 9,649.3 109.7

Transportation of goods, bln t­km 574.1 104.8

Passengers, bln pass/km 2,866.5 100.0

Retail turnover 12,499.3 101.7

Services 32,727.5 105.0

Foreign trade turnover, mln USD 17,688.6 146.9

Export 7,793.7 131.4

Import 9,894.9 162.2

Balance –2,101.2 ×

Report alert

The gross domestic product (GDP) of Uzbekistan in January–June 2018 amounted to UZS 152,533.4 bln and increased by 4.9 % in comparison with January–June 2017.

In 2018 there were produced industrial goods to the amount of UZS 39,865.2 bln. The growth rate to the same peri­od of 2016 was 6.1 %.

In the reporting period (January–June 2018), the volume of agricultural production was UZS 21,863.9 bln or 102.0 per­cent to the corresponding period of 2017.

The freight turnover was 574.1 bln t-km or 4.8 percent higher than in January–June 2017.The retail turnover increased by 1.7 percent and was UZS 12,499.3 bln.The foreign trade turnover amounted to USD 17,688.6 mln or increased by 46.9 %.

for more information contact Afs office:Phone: +998 (71) 234-9611Email : info@afs­research.comWeb site: www.afs-research.com

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201834

eConomIC IndICAToRs

AppLICATIon foR ChAmBeR memBeRshIp

Chamber membership Categories

Membership Category Qualifications Annual Dues

Vo

tin

g M

em

be

rs

Platinum Annual worldwide revenues of $100m and above

USD 4,000

Gold Annual worldwide revenues less than $100m and more than $5m

USD 3,000

Annual worldwide revenues less than $5m USD 1,500

No

n-v

oti

ng

me

mb

ers

Silver Annual worldwide revenues less than $100m USD 1,000

Bronze Annual worldwide revenues less than $5m USD 600

Non-profit Registered as a non-profit organization USD 500

Non­resident Organization with no local representation/registration in Uzbekistan

USD 1,500

All categories give the member access to a full range of services and benefits including busi-ness de ve lopment function, the committee network, and all publications.

Non-voting members may not vote or sit on the Board of Directors.

1. Please indicate the category of membership for which you are applying: Membership is per calendar year. Enrollment is prorated by the number of months remaining in the calendar year.

Type of membership Annual Dues Type of membership Annual DuesG Platinum USD 4,000 G Bronze USD 600G Gold USD 3,000 G Non-profit USD 500G Gold USD 1,500 G Non­resident USD 1,500G Silver USD 1,000

2. I/We agree, if accepted, to be bound by the Chamber’s rules and regulations, and to pay the appropriate annual dues:

Name of company

Address

Tel. Fax E­mail

Head of firm in Uzbekistan:

Name Title / Position

35WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

Representatives (voting if American Company)

(first alternate)

(second alternate)

3. Nationality of parent company:

G US G Uzbekistan G Other (please specify)

Place and Date of Incorporation

4. Type of company in Uzbekistan:

G Manufacturing facility G Sales/Representative office G Service facility

Brief description of activity:

Addresses of branches or other offices in Uzbekistan:

Specify relationship with firm in the USA (if any): branch, subsidiary, affiliate, joint venture, sales offic­

es. Give US name, complete address, telephone and fax number:

5. Please indicate the approximate amount invested into the economy in Uzbekistan:

G USD 1,000–10,000 G USD 100,000– 1,000,000G USD 10,000– 100,000 G More than USD 1 million

6. Number of employees in Uzbekistan at all locations:

G less than 20 G less than 50 G 50–100

7. Annual revenue:

G less than USD 100,000 G USD 100,000–500,000 G More than USD 500,000

Prepared by Date

Signature of applicant

Important notice: Information found on this application is for internal AmCham use only and will be handled as business confidential.

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201836

AMCHAM UZBEKISTAN

The design and projecting of mechanical systems and electrical power supply systems.

Anna ShapkinaDeputy of Head office in Uzbekistan

Tel.: +998 (71) 270-7474, +998 (97) 720-2174Email: info@agessa.uz

Engineering Translation Services

Ruslan DaminovDirector

Tel.: +998 (90) 921-9163Email: ruslan.daminov@globalts.uz

Salary Survey, Executive Search, Team Building facilitation

Hilola SuleymanovaManaging Partner

Tel.: +998 (90) 168-4183Email: hilola.suleymanova@davinci.uz

Space planning consultancy and office furniture solutions

Zukhra NazhmetdinovaDirector

Tel.: +998 (90) 996-4116 Email: z.nazh@comtech.kz

Insurance Industry

Miraziz KhidoyatovTel.: +998 (90) 9689330Fax.: +998 (71) 2322307

Email: miraziz.khidoyatov@gross.uz

Freight Forwarding, Project Logistics, Removals & Relocation

Sevil BekirovaBusiness Development ManagerTel.: +998 (78) 129-9900/1/2/3/4

Fax.: +998 (78) 1299911Email: s.bekirova@globalinklogistics.com

Representative “AGESA GRUP”

AMCHAM members will be given a discount of 25 %.Discount: 25 % for all kind of services and goods

Date this service is valid: until 31.12.2019

Comfort Technologies Office LLC

Discount: 25 % for any piece of office furnitureDate this service is valid: End of 2018

DaVinci Management Consulting

Discount: Salary Survey—discount 10 %; Executive Search—10 %; Team Building facilitation—5 %

Date this service is valid: 31/12/2018

Global Translation Company

Discount: 20 % Date this service is valid: July 2018 till July 2019

Globalink Logistics

Value-added Services: Customs Brokerage; Cargo Insurance; Warehousing; Domestic Distribution

Discount: 5 %.

Gross Insurance LLC

Discount: 15–25 % discount depending on the type of insurance product

Date this service is valid: Until December 31, 2019

International and local logistic, custom services

Nozimjon MamasolievDirector

Tel.: +998 (78) 120-7887Mob.: +998 (90) 370-6098

Email: tashkent@spaarmann.eu

Real Estate Agency

Erkinali KarimjonovDirector

Tel.: +998 (97) 454-3344Email: rentals.uzb@gmail.com

Food and Beverage Services

Veronika SaparovaPR & Social Media Officer

Tel.: +998 (78) 120-4900, +998 (94) 655-4924Fax.: +998 (78) 120-4902

Email: veronika.saparova@rdhotel.uz

Household goods Moving and Cargo Logistics services

Atabek AlimdjanovCountry manager

Tel.: +998 (71) 235-1843Fax.: +998 (71) 235-7390

Email: atabek.alimdjanov@moveoneinc.com

Export and Import shipping; Air cargo; Container & Truck Shipments; Personal Effects

NodirCustomer relations and sales

Tel.: +998 (97) 480-3700Fax: +998 (71) 233-3147

Email: nodir@zudlik.com

C Spaarmann Tashkent LLC

Discount: 5 % for full servicesDate this service is valid: end of 2018

Move One Logistics

Discount: 7 % discount for moving and 5 % for logistics services

Date this service is valid: end of 2019

Radisson Blu Hotel Tashkent

Discount: 15 % discount on a la carte menu in Café Europa, Aqua Bar & Restaurant.

Date this service is valid: The service is valid until 31.12.2019.

The discount cannot be used during special events, festive season and in conjunction

with other promotions.

Rentals Ltd.

Discount: 50 % + bonusesDate this service is valid: September 30, 2019

Zudlik Trans LLC

Discount: 20 %Date this service is valid:

Offer valid from October 1st 2018 till August 31st 2019

plAtinum membeRBAT UzbekistanDavid Le Blond(78) 120-5555CNH IndustrialAlisher Tangribergenov(78) 120-7450Coca-Cola Mes. Paz. Dan. San. Ve. Tic. A.S.Gabil AhmadovErnst & YoungAnvar Azamov(78) 140-6482General Motors Operations UzbekistanJennifer Bigelow(71) 280-6433Hyatt Regency TashkentPuneet Tandon(71) 207-1234PwCOtabek Muhammadiev(78) 120-6101, 120-6823UzCarlsberg LLCNadav Geller(78) 140-9999UNITEL LLCDmitriy Shukov(90) 970-1383UcellTõnu Grünberg(93) 180-0000

goLd memBeRAKTE LLCHugo Minderhoud(71) 252-2402BNZ Industrial Support LLCBrian Quigley(71) 254-4128

Central Asia Seed CompanyAzizkhan Akhmedov(71) 291-0073Crowe Horwath Int. (Audit-As)Vera Bell(71) 241-4618Daewoo Pack Co, Ltd.Jang Dae Won(71) 295-0573Erka Architects LLcAybek Erkabaev(90) 970-5515Hotel International TashkentSardor Malikov(78) 120-7000Hotel Radisson Blu TashkentAkmal Muratkulov(78) 120-4900Infranet Asia LLCLenur Mambetov(71) 244-0803KPMG Audit LLCSanjarbek Saidov(71) 205-1402Kinstellar Business Services S.á.r.l.Joel Benjamin(78) 150-6222OLSOFTEvgeniy Olevskiy(71) 256-3291ONS Frankfurt GmbHVadim Berdyanski(71) 252-2156

Perspektiva Stroy Invest LLCUgur Akin(71) 233-5097S. Verenin’s Legal GroupSergey Verenin(78) 150-1506Transcontinental JV LLCJanna Popkova(78) 120-3838Train Consultancy LLCMashrab Saidov(71) 235-0424Wyndham Tashkent HotelIsmail Kalinci(78) 120-3700WCH Service bureauAlexander Tulupov(71) 254-3621

sILveR memBeRAir Astana in UzbekistanYevgeniy Krutov(78) 140-3002Centil Law FirmZafar Malikov(78) 120-4778Deloitte va Touche LLCErkin Ayupov(78) 120-4445Frito Lay Manufacturing Vakolatxonasi (PEPSICO)Aidar Turmukhamedov(71) 281-4609Grata Law FirmBakhodir Jabborov(71) 233-2623, 233-9524General Electric CompanySaidolim Artikov(71) 205-0281Gross Insurance LLCAbduaziz Abdusattorov(71) 232-2305/06Ingo-Uzbekistan Insurance CompanyBakhtiyor Gaybullaev(78) 150-9999JV Indorama Kokand Textile LLCDeepak Raina(71) 253-8325JP Morgan Chase Bank N.A. UzbekistanTokhir Sultanov(78) 140-3770

IDEMIAPierre-Paul Antheunissens(71) 238-5970SEP Nestle UzbekistanSergey Tratsevskiy(78) 140-0600Schneider Group LTDNodir Ayupov(78) 120-4430Winncom TechnologiesKhurshidkhudja Isokhudjaev(78) 150-0837

bRonZe membeRAction Group LLC Edu-ActionUmid Ishmukhamedov(78) 148-8686Avialeasing Aviation CompanyIgor Smirnov(78) 120-4950/52AFS-Research CompanyAleksey Kirilov(71) 234-9611/12Agesa GrupMurat Aksahin(71) 280-6243Agrico BV NLFeruza Tatybaeva(71) 256-8484Atlantik TradeFarkhad Yusupov(78) 140-4868Business LeasingDildora Umurzakova(78) 120-3040Baker Tilly TashkentGuzal Islamova(78) 150-1512Carolina Technologies, Ltd.Alexander Veksler(71) 281-4362/63/64Comfort Technologies OfficeZukhra Nazhmetdinova(90) 996-4116Council Law FirmAlisher Kadirov(71) 233-3399CJ ICM FZcoRavshan Fazilov(71) 254-0019

memBeRshIp LIsT

37WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

Davinci Solutions LLCHilola Suleymanova(78) 113-2390DGP Research & CounsultingAkmal Vasiev(78) 148-8282Dentons CA LimitedEldor Mannopov(78) 150-3105Education Standard Consulting GroupElena Sergeeva(71) 268-7544Elan Express LLCBabur Asuraliev(78) 150-2550Eurobasis LLCTaymurot Yunusmetov(71) 254-4563FAYSEL Construction LogisticsYuksel Adana(71) 255-5216GOR Investment LTDMartin Dunkan BurgessGlobalink Logistics GroupShabir Firdous(78) 129-9900Global Translation ServiceRuslan Daminov(90) 914-7627, 921-9163Grant ThorntonNematulla Karimov(71) 234-4632, 233-3056Holos Ltd.Khalmurat Manaev(71) 252-7185/86Health and Travel LLCUmida Tadjieva (71) 281-5526HR Capital Consulting (HRC)Aziz Kurbanov(78) 150-4230Iberiasia TourFarkhod Sabirov(71) 255-4990International Certificate System Group LLCShervin Mirzadeh(71) 236-2341SE “Ishan Group”Khwaja Zia Ahmed(71) 262-0012

Legalmax Law FirmMukhammadali Makhmudov(71) 212-4732Kosta Legal Law FirmAzizbek Akhmadjonov(71) 238-9428Marvel Dry Foods LLCNematjon Askarov(78) 129-1916Mega Prodex LLCNormukhamedov M.(71) 246-1611Mercury Service Events & Travel Management LLCMurod Makhmudov(71) 235-7771M&M Militzer & Muench UzbekistanKhurshid Kasimdjanov(78) 140-0003Move One LogisticsAtabek Alimdjanov(71) 235-1843MULTIVAC EXPORT AGMirzakhid Mirzaitdinov(71) 237-5702Namuna-Diyor Private Scientific Industrial EnterpriseFurkat Salimov(71) 255-3278NeftgazkipavtomatikaTojiev Ruzimurat(71) 268-2401Newmax Technologies LLC (MyTaxi)Akmal Paiziev(95) 202-0001Oasis FES LLCDale Henry(71) 237-5315Prae Legal UzbekistanDavron Ahmadov(95) 198-2112

“Rentals” LLCErkinali Karimjonov(97) 454-3344Ramada HotelDinesh Upreti(78) 140-6000Riks Education CentreAzimjon Khusanov(71) 234-0234

Softline InternationalAybek Arifdjanov(78) 120-4909Sitara International Ltd.Shiraz Poonja(71) 281-4148Spaarmann TashkentNozimjon Mamasoliev(78) 120-7887Stomatologiya BudushegoZafar Usmanov(71) 232-2022UHY Tashkent LLC Audit organizationSarvarkhon Karimov(71) 233-1448UzNEKZokir Askarov(71) 244-3377Wakefield Inspection Service Ltd.Philip Hesketh(71) 273-1071Zudlik TransDaniyar Yusupov(71) 244-0484

non-pRofit non­voTIngAMBiTHikmat Abdurakhmanov(71) 269-9339The British School of TashkentAdrian Macaulay(71) 262-6020Canadian ConsulateEldor Manopov(78) 120-7270National Association of Financial Market ParticipantsElyor Ismailov(95) 198-5747OSCEHans­Ullrich Ihm(78) 140-0468/ 69/70Tashkent International SchoolMyna Anderson(71) 291-9670/71/72Tashkent International ClinicMatthew Kuschel(71) 291-0142

honoRARy memBeRsADBTakeo Konishi(78) 140-1920IMF Resident Representative OfficeGalina Kostina(71) 233-4243UNDPStefan Priesner(78) 120-3450, 120-3451World Bank Country Office / IFCJan-Peter Olters(71) 238-5950, 238-5928IFCZafar Khashimov(78) 120-2454, 120-2445

non­ResIdenTAggreko Eurasia Limited Liability CompanyArsen Pogosov(97) 705- 1713Birches Group LLCLourdes Belen+1 (646) 837-5553BA Logistics IncShukhrat Begmatov(97) 737-8804Bureau VeritasTurgay Karaagac(78) 150-7127Dow Europe GmbH Representative officeArthur Eritspokhov+7 (495) 663-7984

non­ResIdenT non – pRofitUniversity of New MexicoGregory Gleason+49 (8821) 750-2526National Bank of PakistanDildora Yuldasheva(71) 237-1991

IndIvIdUALIlkhom Khodjakulov+49 (175) 997-3902Benjamin Schneider

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201838

memBeRshIp LIsT

TAx & ACCoUnTIng Committee

Vera BellTax and Accounting Committee meets on a regular basis bringing together a dynamic group of senior profession­als from the leading auditing compa­nies, multinationals, and tax specialists.

TRAde & InvesTmenT Committee

Gabil AhmadovTrade and Investment Committee meets and engages with the major is­sues faced by local and foreign inves­tors as well as those dealing with com­mercial matters.

AgRICULTURe And food pRoCeSSing SubCommittee

Dale HenryAgricultural and Food Processing Subcommittee brings together a wide range of interested players including representatives of the public sector to review and discuss a full agenda of related issues.

CoRpoRATe & soCIAL ResponsIBILITy CommITTee

Nodira YadgarovaCorporate & Social Responsibility Committee meets to review and dis­cuss the ways in which the business community can best serve its many stakeholders including those in need.

The memBeRshIp Committee

Otabek MukhammadievMembership Committee looks to not just attract new candidates for mem­bership in AmCham but also how to best serve the existing members.

hUmAn ResoURCe Committee

Rano NurmuratovaThe Human Resource Committee provides analysis and updates on HR trends, labor and employee relations, compensation and benefits.

ToURIsm & hospITALITy IndUsTRy CommITTee

Puneet TandonTourism & Hospitality Committee brings together on a regular basis the many members in the hotel—tourism sector, with the focus being on how to improve service, deal with issues and contribute to the sector’s growing importance.

dIgITAL TRAnsfoRmATIon Committee

Omon MuminovDigital Transformation Committee meets to help its members to get ac­quainted with the latest digital and technological trends.

CoRpoRATe goveRnAnCe Committee

Yuriy VoytsitskiyIncreasing awareness of Governance, Risk, and Compliance instruments and methods, benchmarks and trends in the sphere of anticorruption and bribery, risk management, and corporate governance.

ChAIRs of AmChAm CommITTees 2018

39WWW.AMCHAM.UZ

AMCHAM UZBEKISTAN

BoARd of dIReCToRs 2017

J. Laurence Wright IIEx-Officio BOD member, U.S. Embassy in Tashkent

Secretary:Joel BenjaminKinstellar Business Services

Treasurer: Vera Bell Crowe Horwath Int.

Puneet TandonHyatt Regency Tashkent

Anvar AzamovErnst & Young

David Le BlondUzBAT

Vice-President: Tõnu Grünberg Ucell

Otabek MukhammadievPwC

Executive Director:Tatyana Bystrushkina

President: Hugo Minderhoud AKTE LLC

Gabil AhmadovCoca­Cola Uzbekistan

Business Connections is semi­annual and annual reports for members that are published 2 times a year for American Chamber of Commerce in Uzbekistan.

Executive DirectorTatyana Bystrushkina

Editorial BoardDonald Nicholson II Hugo Minderhoud Lola Shaislamova Julia Bakhmatch Jean Henry Mary Fowler Igor Fedorov Mitali Dhone

Contributing AuthorsDonald Nicholson II Nazi Aripdjanova Julia Bakhmatch Dale Henry Tatyana Bystrushkina

Address: 4B, Afrosiab Str., 100031 Tashkent, UzbekistanPhone: +998 (78) 140-0877Fax: +998 (78) 140-0977Email: amcham.director@amcham.uzWebsite: www.amcham.uz

The AmCham Uzbekistan and au­thors declare that they have com­piled this document carefully and to the best of their knowledge. However, no warranty or represen­tation is made to the accuracy of completeness of the information contained in this document. The AmCham Uzbekistan and authors assume no liability whatsoever for any damage resulting from the use of this document or its contents.

This bi­annual free­of­char ge advertising bulletin is not consid­ered to be a subject of mass com­munication and may be distribut­ed free of charge without registra­tion among limited number of enti­ties and individuals.

Printed by CLOSSAUzbekistan, Tashkent 10001593, Avliyo-Ota streetTel: +998 (71) 2813998

President Emeritus:Donald Nicholson IISEAF­SME Investment Management

Business ConneCtions • seMi-AnnuAl RepoRt foR MeMBeRs 201840

AMCHAM UZBEKISTAN