Uzbekistan – July 1-31, 2019

UZBEKISTAN – JULY 1-31, 2019

Top News of the period ...... 2 HUMO ATMs [to] function 24/7 2 Politics and Law ...... 2 Uzbek envoy holds talks with Advisor of the Belgian Prime Minister 2 New system to be introduced for development of small business and entrepreneurship 3 Economy and Finance ...... 3 WebMoney talks Uzbekistan’s benefits from joint co-op 3 New cargo air route links Xinjiang, Uzbekistan 4 From 1 July 2019, coins and banknotes in denominations of 50 and 100 soums are withdrawn from circulation 4 Wholesale electricity exchange could be set up in Tashkent 5 Visa, TezCard and Orient Finans Bank starts to accept payments using Visa cards in Ferghana public transport 5 Russia to send funds to improve the tax system of Uzbekistan 6 Innovative Technopark "Khorazm" created in Urgench 6 ADB to support energy reforms in Uzbekistan 6 Agency for Attracting Foreign Investments is created 7 Uzbekistan plans to markedly increase gold production 7 Modern agro logistics centers will expand cooperation in agriculture 8 ADB commends Government decision to transform Uzbekistan’s largest state-owned enterprise 8 Uzbekistan plans to build three coal-fired power plants 9 Uzbekneftegaz, CNODC discuss construction of gas pipeline 10 Uzbekistan presents its investment potential and prospects for development of the capital market 10 Business ...... 11 WB to help Uzbek Airlines become hybrid airline 11 [Vehicle] TRADE-IN program to be implemented in Uzbekistan 11 Bukhara City complex to be built 12 Uzbekistan Hotel's starting bid cut due to lack of bidders 12 Business Glossaru startup recognized as the best 13 Meeting in Brussels 13 TATNEFT filling stations chain has come to Uzbekistan 13 Tourism and Culture ...... 14 Uzbek archaeologists discover the legendary Alexandria Oxiana 14 The President of Uzbekistan signs a Law “On Tourism” 14 Ride on gondolas to be launched on Bozsu Channel 15 Uzbekistan to build tallest skyscraper in Central Asia 15 Uzbekistan offers to organize Tour de Silk Road 15 Bill Gates and Coca-Cola funds could join to resolve Aral Sea crisis 16 A branch of the leading French business school in tourism and hospitality management Vatel to be opened in Bukhara 16 The 1st International Gastronomic Festival "Gastro Bazaar-2019" to be held in Tashkent 17 Uzbekistan to gather world bloggers and influencers 17 Samarkand to develop into a tourism hub 18 Uzbekistan to introduce VAT refund for visitors 18 Kokand gets ready for International Handicrafters Festiva 18

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4/03/2019 Uzbekistan, July 1-31, 2019 page 1 of 18

TOP NEWS OF THE PERIOD

HUMO ATMs [to] function 24/7 About 2,500 ATMs of the HUMO payment system will be installed throughout Uzbekistan until the end of 2019. In Tashkent, more than 50 ATMs are already operating at round-the-clock service points. Find the nearest ATM on the map. From 1 June 2019, banks participating in the national payment system began the process of installing ATMs serving HUMO cards. More than 50 ATMs have already been installed and function in Tashkent, from which residents of the capital can withdraw cash around the clock. The limits for withdrawals are determined by the banks themselves. In the near future, 280 ATMs will be installed at 24/7 points. “We are pleased that banks support and contribute to the development of the HUMO payment system. More than 50 ATMs are already operating in Tashkent in paragraphs 24/7. By the end of this year, it is planned to increase the number of ATMs to 2,500 throughout the country,” Shukhratbek Kurbanov, director of the National Interbank Processing Center (NSC), said. Installed ATMs are located in places of mass gathering of people: in the transitions of metro stations, near parks, on the territory of markets and so on. Since 1 May 2019, the first issue of HUMO payment system cards equipped with NFC-modules began. Placement of ATMs throughout the country will be carried out in parallel with the issuance of cards for residents of other cities of Uzbekistan. UzDaily – Uzdaily.com

POLITICS AND LAW

Uzbek envoy holds talks with Advisor of the Belgian Prime Minister On 3 July 2019, the Ambassador of Uzbekistan in Brussels Dilyor Khakimov met with Stephane Mund, Advisor of the Belgian Prime Minister on International Affairs, the Uzbek Foreign Ministry said in a statement. At the meeting, the Belgian side thanked the Uzbek side for congratulations on approval of the heads of states and governments of the EU member states, the Prime Minister of Belgium Charles Michel as the President of the European Council. Stephane Mund noted that the Belgian side highly appreciates cooperation with Uzbekistan and is interested in its further development. This applies to the entire range of cooperation – from political to trade-economic, cultural and humanitarian areas. In this regard, the parties noted the importance of further strengthening dialogue between the countries at all levels. Prospects of intensifying bilateral contacts for the future were openly and friendly discussed at the meeting. UzDaily – Uzdaily.com

New system to be introduced for development of small business and entrepreneurship On July 23, a meeting on the issues of further development of small business and entrepreneurship was held under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev. Small business and private entrepreneurship is an important factor in development of the economy, increasing employment and incomes of the population. Over the last two and a half years more than 50 decrees and resolutions of the President have been adopted in order to fully support entities of this sphere. In particular, state registration of business activities, obtaining permits and many other procedures were simplified. Public Services Agency and its centers at places have been established for greater convenience. The institute of the Commissioner for the protection of the rights and interests of business entities (Business Ombudsman) has been introduced. Activities of reception offices of the Prime Minister have been established in all regions of the country for considering appeals from entrepreneurs. The State Fund for Supporting Entrepreneurship Development has been created under the Cabinet of Ministers, which has been allocated 200 billion soums and 50 million dollars. Lending to entrepreneurs from commercial banks has also expanded. … Uzbekistan National News Agency - uza.uz

ECONOMY AND FINANCE

WebMoney talks Uzbekistan’s benefits from joint co-op The arrival of WebMoney system in Uzbekistan will be an important factor for the growth of e-commerce in the country, a source from the International company WM Transfer told Trend in an interview. "The system will also increase citizens’ trust in online shopping," a source said. The representative noted that sellers and buyers in Uzbekistan will be able to use dozens of solutions developed by WebMoney Transfer: automatic payments, mass payments, protection of transactions and many other services. Uzbek businessmen interested in exporting goods will be able to set up WebMoney system accounts for accepting payments from foreign clients in foreign currencies. "The owners of cafes, restaurants and shops have a solution to the system that makes it possible to accept non-cash payments using a QR code," the source stated. Founded in 1998, WebMoney Transfer is an international settlement system which creates online business environment. The number of registrations with WebMoney Transfer currently exceeds 39 million. Trend News Agency – trend.az

New cargo air route links Xinjiang, Uzbekistan A new cargo air route was launched Monday linking Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, and Tashkent in Uzbekistan. The cargo flight, loaded with clothes and electronic devices made in the southern Chinese city of Guangzhou and the city of Yiwu in east China, left Urumqi for Tashkent at 4:00 p.m. Monday. The returning flight will be filled with agricultural products from Tashkent, according to Ren Fei, general manager of a local aviation service company. The flight will be operated five to seven times per week, with the frequency adjusted as needed, according to the company. It used to take about 12 days to transport goods from China to Central Asian countries by train or truck. With the launch of the new air route, the time will be shortened to three hours, Ren said. Xinjiang has opened four international cargo air routes so far, including Urumqi to Belgium's Liege, Kyrgyzstan's Bishkek, and Almaty in Kazakhstan. In the first half of this year, around 73,500 tonnes of cargo and mail were transported through the Diwopu International Airport in Urumqi, up 11.98 percent year on year. Xinhuanet – xinhuanet.com

From 1 July 2019, coins and banknotes in denominations of 50 and 100 soums are withdrawn from circulation It is known that starting from 1 July 2019, coins of denomination of 50, 100 soums (samples 2001-2002, 2004 and 2009) and banknotes of 50, 100 soums (sample 1994) lose their solvency and withdrawn from circulation. According to the Regulations on the procedure for the exchange and withdrawal from circulation of coins of 50, 100 soums, and banknotes of 50, 100, 200 and 500 soums of the old type of the Central Bank of the Republic of Uzbekistan, before 1 July, coins and banknotes of 50, 100 soums were accepted and exchanged by cash settlement centers of the Main Territorial Administrations of the Central Bank, all commercial banks and their branches. From 1 July 2019, coins and banknotes of 50, 100 soums of the old type will not be accepted for payment for goods and services. Coins and banknotes in denominations of 50 and 100 soums of the old type that are in the hands of the population can be exchanged directly in the cash processing centers of the Main Territorial Departments of the Central Bank for new-type coins or for other banknotes in circulation. According to this Regulation banknotes of 200 and 500 soums of the old type will be in circulation until 1 July 2020 and will be considered a means of legitimate payment. From 1 July 2019, banknotes handed over to the cash offices of banks with a nominal value of 200 soums of 1997 sample and 500 soums of 1999 sample will be exchanged with branches of a commercial bank. UzDaily – Uzdaily.com

Wholesale electricity exchange could be set up in Tashkent International Wholesale Electricity Exchange is planned to be created in Tashkent. "We are planning to set up in Tashkent in the near future, let's say that the prototype of a wholesale electricity exchange. Various electricity producers from other countries will be able to offer their electricity surplus for sale," the deputy Energy minister Sherzod Khodjaev said during a press conference. According to him, the National Electric Networks of Uzbekistan, which are authorized to carry out export and import operations, will also be able to make use of it. This company, he added, will be able to enter into long-term contracts for purchase of electricity for resale, for example, in Afghanistan. Khodjaev added that Uzbekistan and Afghanistan are planning to sign a ten-year contract for the supply of electricity on a take-or-pay basis before November this year. One of its conditions is that Uzbekistan will have the opportunity to sell electricity to Afghanistan, purchased from other countries, in case Uzbekistan lacks enough of its generating capacity. Tashkent Times – tashkenttimes.uz

Visa, TezCard and Orient Finans Bank starts to accept payments using Visa cards in Ferghana public transport Visa, together with Orient Finans Bank and TEZCARD, announced expansion of coverage of non-cash payments in public transport in Uzbekistan. Now payment for travel with contactless Visa cards has become available to residents and guests of the city of Ferghana. Holders of contactless Visa cards of any bank can quickly and conveniently pay their fare in 38 city buses of Ferghana. To do this, simply attach your Visa card to the TEZCARD validator terminal. In May 2019, Visa, TEZCARD and Orient Finans Bank began to accept banking cards in the public transport of Samarkand and this project is a continuation of cooperation between the companies. “Visa has a global expertise in the implementation of innovative solutions to urban services and is a reliable partner of city authorities for the development of urban infrastructure. Today, after Samarkand, residents and guests of Ferghana will be able to pay for transport fares quickly and conveniently using contactless Visa bank cards,” Aliya Chynybayeva, General Manager of Visa in Central Asia, commented. “We are confident that innovative Visa transport payment technologies will make the journey more comfortable for the citizens, as well as contribute to the creation of a safe and convenient fare payment system.” “We are very pleased with the new stage of our cooperation with Visa, thanks to which TEZCARD users in the next city of Uzbekistan received additional amenities and opportunities. We are confident that the launch of such a unique opportunity in Ferghana will be an additional incentive for the development of the tourist potential of this beautiful city,” Aziz Ahmedov, director of TEZCARD, said. “We are very pleased to participate in such projects, learn from the experience of global players in the payment solutions market, create a payment infrastructure more convenient for residents and guests of Uzbekistan. We understand and see that in the very near future, payments by a contactless method will be used many times more often than cash payments, due to ease of use and speed of the operation. We hope for further territorial expansion of contactless payment points in public transport and not only,” Sherzod Tuyboev, Deputy Chairman of the Board of Orient Finance Bank, said. UzDaily – Uzdaily.com

Russia to send funds to improve the tax system of Uzbekistan Russia will send 515.13 million rubles (more than US$8.1 million) in the form of free technical assistance for the development of the tax administration system in Uzbekistan in 2019-2020. The state contract for carrying out “works on rendering free aid” was signed on 1 July 2019. The Federal Tax Service of the Russian Federation is the customer. JSC “Main Scientific Innovation Center” became the contractor. The project provides for the reengineering of business processes of tax administration, the development of concepts for improving the taxation of real estate and the organization of work with taxpayers. The Russian company will also develop methodological materials and a training program for employees of the tax authorities of Uzbekistan to improve their customer focus. UzDaily – Uzdaily.com

Innovative Technopark "Khorazm" created in Urgench A government resolution was passed on measures to increase the scientific, technical and innovation potential of Khorezm region. In accordance with the resolution, an innovative Technopark “Khorazm” was created at Urgench State University and its main tasks and functions were determined. The status of a technopark resident is granted to economic entities by a decision of Khorezm region khokimiyat up to 10 years on a competitive basis, followed by their registration in the Technopark Directorate. By a resolution, buildings and structures of the Urgench Industrial College were transferred to Urgench State University and identified as the location for the Directorate of Technopark. UzDaily – Uzdaily.com

ADB to support energy reforms in Uzbekistan Asian Development Bank (ADB) will continue to provide strong support in the Uzbek government’s energy reform program through both its public and private sector operations, Trend reports with reference to ADB. Energy Division Director in ADB’s Central and West Asia Department Ashok Bhargava discussed this topic at the roundtable organized by the Government of Uzbekistan, attended by various international financial institutions (IFIs) including the ADB. Modernizing and reforming the energy sector is the centerpiece of the government’s ambitious program to transition Uzbekistan to an industrialized and upper middle-income country by 2030. “ADB has initiated key reform actions to achieve financial sustainability in the power sector and has supported successful structural reforms in the largest state-owned enterprise in oil and gas sector. We are very much encouraged by the government’s plan to further intensify reforms and actively seek private investments in the sector,” Bhargava said. ADB has been the largest investor among IFIs in Uzbekistan’s energy sector with a $1.7 billion portfolio spanning generation, transmission, and distribution subsectors.

Aside from infrastructure investments, ADB has also been supporting the power sector through various technical assistance grants for more than a decade. Furthermore, ADB is a lead adviser for the power utilities’ sustainable debt management strategy, long- term power sector master plan, and financial recovery actions, which includes the introduction of International Financial Reporting Standards accounting, development of tariff policy, and methodology. Trend News Agency – trend.az Agency for Attracting Foreign Investments is created The Government of Uzbekistan approved the Regulation on the Agency for Attracting Foreign Investment under the Ministry of Investments and Foreign Trade. In accordance with the Regulations, participation in the implementation of a unified state investment policy aimed at attracting foreign investors to the economy of the republic, creating favorable conditions for foreign investors is one of the main tasks of the Agency. The agency is headed by a director appointed and dismissed by the Government on the proposal of the Minister of Investment and Foreign Trade. The effectiveness of the Agency’s activities is subject to regular evaluation. Employees of the Agency are paid surcharges for continuous work experience (seniority). UzDaily – Uzdaily.com

Uzbekistan plans to markedly increase gold production

Uzbekistan produces more than 100 tons of gold annually. Navoi and Almalyk mining and metallurgical plants produce 20 and 70 percent of the total precious metal production in the country, respectively. Uzbekistan intends to bring the annual gold and silver production to 300 tons by 2021, according to the Ministry of Justice. This is envisaged in the State Program for the Development and Reproduction of the Mineral and Raw Material Base for 2020–2021. Within its framework, the share of the search for promising mineral resources will be increased to 35 percent in 2020, and to 40 percent in 2021. As Justice Ministry informed, in 2020, gold and silver production will be increased to 150 tons, and in 2021 - to 300 tons, and 2.3 trillion soums ($266 million) will be allocated for the implementation of the program. The presidential decree also approved a road map to further improve the exploration, rational study and development of the subsoil, as well as increase the investment attractiveness of the mining and geological sector for 2019-2020. As part of the implementation of the roadmap, international standards for the preparation of reports on the results of geological exploration and approval of mineral reserves in accordance with the JORC Code will be implemented. Besides, a single electronic online platform will appear for posting information on prospective areas and deposits of solid minerals. Another important area is the development of a draft presidential decree to further improve the system for attracting investments for the development of strategically important types of solid minerals.

The draft document will revise the rates of the subscription bonus for the right of exploration and prospecting for minerals and will guarantee the immutability of tax legislation for the entire period of the investment project. So far, more than 60 gold deposits were discovered in Uzbekistan. Trend News Agency – trend.az

Modern agro logistics centers will expand cooperation in agriculture

On July 4, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on deep processing of agricultural products and improving the quality of food products. 20 million tons of fruits and vegetables are grown per year in Uzbekistan. However, only 15 percent of this volume is processed at the industrial level, of which 7-8 percent is exported. Due to underdeveloped infrastructure, the loss of products in collection and storage reaches 30 percent. Further development of food industry and increasing the volume of export can be achieved through rational use of existing opportunities and expansion of deep processing of products. The Head of the state noted that for this purpose it is necessary, first of all, to increase the number of modern agricultural centers covering the process of collection, transportation, storage, processing, packaging and export of agricultural products. There are 31 agro logistics centers and 1.5 thousand refrigerated warehouses in Uzbekistan. The capacity of such warehouses allows storing only 4.5 percent of total volume of fruits and vegetables. This, of course, is very little. Shavkat Mirziyoyev noted the need for ensuring stable food prices and creating widely branched infrastructure for uninterrupted saturation of market. Uzbekistan National News Agency - uza.uz

ADB commends Government decision to transform Uzbekistan’s largest state-owned enterprise

Uzbekistan’s largest state-owned enterprise, the oil and gas company Uzbekneftegas (UNG), will be restructured to improve its long-term sustainability and credit quality following a decision by the country’s government to implement a corporate transformation plan prepared with support from the Asian Development Bank (ADB). The decision was announced in a decree signed by the President of Uzbekistan, Mr. Shavkat Mirziyoyev, on 10 July and is a part of a series of comprehensive energy sector reforms underway in Uzbekistan to strengthen the country’s resilience to external economic shocks and increase economic growth. UNG’s financial sustainability is critical to the country’s economy and energy sector. The company provides more than 80% of Uzbekistan’s energy and electricity, contributes almost 20% of the national tax revenues, and accounts for 10% of gross domestic product. Weak corporate governance and financial management systems, however, have raised concerns about the resilience of the company to withstand external economic shocks and the risks that could pose to the country’s economy and development.

In 2018, the government requested ADB technical assistance to help UNG develop a corporate transformation plan to improve transparency in its financial reporting and increase financial discipline, efficiency, and production. Under the terms of the transformation plan, UNG will be restructured into a corporate legal entity that is run independently with enhanced governance and financial management structures. Meanwhile, Uztransgaz, a subsidiary of UNG that controls gas transmission in Uzbekistan, will be unbundled from the parent company and function as a standalone entity. The move is expected to remove any conflict of interests between gas producers and suppliers, while improving transparency. “ADB commends the government for taking another important step in its energy reforms,” said ADB Country Director for Uzbekistan Ms. Cindy Malvicini. “Unbundling UNG into independent production, service, and transmission companies—and divesting non-core assets—is consistent with good international practice.” The transformation of UNG will bring the company in line with international financial reporting, auditing, and governance standards that are expected to improve its ability to raise capital from international investors to finance the expansion and modernization of its gas transmission network. Modernizing and reforming Uzbekistan’s energy sector is the centerpiece of the government’s ambitious program to transition Uzbekistan to an industrialized and upper middle-income country by 2030. The reforms are designed to help the country meet local demand for energy and supply surplus power to neighboring countries through an increased regional power trading network. Tashkent Times – tashkenttimes.uz

Uzbekistan plans to build three coal-fired power plants

"The energy sector development program of the includes the construction of three new coal-fired power plants. All of them will be located near the Angren coal mine," said Ruslan Mubarakshin, the CEO at Thermal Power Plants. “The first 150 MW capacity unit was built here by the Chinese company Harbin Power Engineering Company. Its efficiency is about two times higher than that of the old one. Burnt coal amount is at 1 million tons per year. When we were implementing this project, we were already envisaging the installation of auxiliary and fuel supply equipment for the second unit. This year we will complete the project's feasibility study and are discussing with the potential investor the construction of the second 150 MW power unit," he added. According to him, in two years it is planned to build the third 150 MW power unit and then another one not less than 300 MW in capacity. This entire program focuses on switching over from natural gas to coal. “The high-end equipment at the Angren TPP minimizes carbon emissions. The emission of carbon dioxide is minimal that it does not affect even nearby villages and the area,” he stressed. According to him, in 7-8 years the coal consumption is expected to literally reach 6-7 million per year, and most of it will be mined in the Angren open-pit mine. Tashkent Times – tashkenttimes.uz

Uzbekneftegaz, CNODC discuss construction of gas pipeline

A management of Uzbekneftegaz held a meeting with a delegation of CNODC (China). The agenda included a discussion on accelerating the implementation of a project to build the 4th line of the Uzbekistan-China gas pipeline, as well as to determine the volume of supply of Uzbek gas transported through this facility. It was noted that, to date, the project serves the interests of not only Uzbekistan and China, but also the countries of the Central Asian region. Based on this, the parties agreed to take joint measures to accelerate the construction of the gas pipeline. It should be noted that the length of the Uzbek section of this pipeline is 205 km, and will run through the territory of Surkhandarya region. To implement the project, the joint venture Eastern Gas Pipeline was created with equal shares between Uzbekneftegaz JSC and CNPC. The amount of foreign direct investment and loans to the project is approximately US$800 million. UzDaily – Uzdaily.com

Uzbekistan presents its investment potential and prospects for development of the capital market

Delegation of the Republic of Uzbekistan, led by the Minister of Foreign Affairs Abdulaziz Kamilov, held a presentation of Uzbekistan’s investment potential and prospects for development of the capital market, in Washington, DC. According to the Embassy of Uzbekistan, the event was attended by representatives of official, expert, business circles, including portfolio investors, heads of companies, financial and banking structures, the media and international institutions. The Minister of Foreign Affairs Abdulaziz Kamilov and the First Deputy Chairman of the Senate of the Oliy Majlis Sodik Safoyev, informed the participants on the implementation of the Country Development Strategy, socio-political and socio-economic reforms, foreign policy priorities and prospects for bilateral Uzbekistan – American relations. Deputy Assistant to the President of the United States Lisa Curtis, Acting Assistant Secretary of State for South and Central Asian Affairs Alice Wells, as well as Chairman of the American – Uzbekistan Chamber of Commerce Carolyn Lamm addressed the event. American speakers praised the ongoing reforms in Uzbekistan aimed at ensuring sustainable development of the country, liberalizing the economy and improving the business climate, supporting investors and business initiatives. Following the presentation, negotiations were held with participants of the event, prospects for cooperation were discussed. An agreement was reached on holding an additional round of discussions at the investment forum, scheduled to be held in New York on July 22, 2019. The companies participating in the presentation were invited to the annual Uzbekistan – American business forum to be held in Washington in October. Uzbekistan National News Agency - uza.uz

BUSINESS

WB to help Uzbek Airlines become hybrid airline

Uzbekistan Airways plans to switch to a hybrid airline by the end of 2019, Trend reports citing Podrobno.uz. "When we worked with World Bank (WB), they assured us that the best option that is actively used throughout the world is to create a hybrid airline," a representative of Uzbekistan Airways said. The hybrid airline will continue to fly in some areas in two classes (business and economy), and operate only economy class flight in some other directions. In the latter case, there will be a maximum number of passengers with a minimum number of services. As a result, the consumer will receive a minimum ticket price for this flight. Initially, Uzbekistan Airways was carrying out plans to build a low-cost airline based on Boeing 757. However, the problem was that there are not enough spare parts for this aircraft on the world market, and with any technical malfunction it would be idle for a long time, which is impossible in the conditions of the low-cost airline, the source said. "We have already completed the first stage of work with the World Bank, which prepared detailed recommendations. Now we are moving to the second stage, which implies their implementation. We think we will launch hybrid air services by the end of this year. The passenger doesn’t care whether this airline is a low-cost airline or a hybrid. They only care about the price for a ticket," the representative of Airways said. The appearance of a hybrid work scheme implies the full automation of internal processes in the airline when computers must perform all possible routine work, as well as an increase the efficiency of all structures. Trend News Agency – trend.az

[Vehicle] TRADE-IN program to be implemented in Uzbekistan

Uzbekistan plans to introduce the TRADE-IN program, giving customers the opportunity to purchase a new domestic vehicle by transferring to an official dealership organization of their own used vehicle and paying the difference in their cost, from 1 October 2019. The President of Uzbekistan signed a resolution “On additional measures to accelerate the development of the automotive industry of the Republic of Uzbekistan”. The President of Uzbekistan agreed with the proposal of the Ministry of Economy and Industry of the Republic of Uzbekistan and Uzavtosanoat to implement the TRADE-IN program from 1 October 2019, which provides buyers with the opportunity to purchase a new vehicle of domestic production by transferring to an official dealer organization implementing new vehicles of domestic production, own used motor vehicle and additional payment of the difference in their value. When an authorized dealer sells used motor vehicles of individuals, the tax base for calculating the value- added tax is defined as the positive difference between the selling price and the book value of the retiring facilities, which includes the amount of value-added tax. Following are not subject to mandatory notarization of the contract for the sale of official dealers:

used vehicles with the introduction of the procedure for issuing certificates to the buyer of the established sample; new vehicles purchased from official dealers of domestic manufacturers; The official dealer organization does not pay a fee for the purchase of used vehicles when they are registered with the bodies of the Ministry of Internal Affairs of the Republic of Uzbekistan. The Ministry of Internal Affairs of the Republic of Uzbekistan, in accordance with the established procedure, has been instructed to provide official dealers of domestic manufacturers of vehicles with forms of reference accounts of appropriate security for the sale of used vehicles purchased under the TRADE-IN program. UzDaily – Uzdaily.com

Bukhara City complex to be built

A government resolution “On organizational measures for the construction of a modern business and residential center“ Bukhara City ”in the city of Bukhara” was adopted. In accordance with the resolution, a modern business and residential center “Bukhara City” will be built on an area of 83 hectares, occupied by inefficiently used facilities, buildings and structures in certain areas of the city of Bukhara. Accordingly, the Directorate for the construction and operation of facilities was established on the territory of “Bukhara City”. The composition of the regional council on the organization of the necessary measures and the consideration of investment projects in the process of building this complex has been approved. On the territory of the complex, priority will be given to the location of the museum, Expocentre for holding international conferences and forums, a cinema, a theater, a library, banks, offices, residential buildings and other modern facilities. UzDaily – Uzdaily.com

Uzbekistan Hotel's starting bid cut due to lack of bidders

The initial price of the government’s share in the Uzbekistan Hotel put up for sale was cut by 10% due to lack of bids, the State Assets Management Agency said. Now the state owns 80.13% in the landmark hotel. Initially, the government was planning to sell its share for US$ 33 million, now it is reduced to 29.7 million dollars. The state share is sold with the condition that the owner will preserve the core business activity (hotel services) for a period of 10 years, refurbishing the hotel without altering the facade and attracting the best management practices. Uzbekistan Hotel is one of the Tashkent’s landmark buildings. The 4 star hotel is located in the centre of Tashkent near Amir Temur Square. The Uzbekistan Hotel is a mix of European and Uzbek architectural styles, one of the most attractive and prestigious buildings in Tashkent situated in the business center of the city, Tashkent Times – tashkenttimes.uz

Business Glossaru startup recognized as the best Meeting in Brussels

Uzbekistan’s Ambassador to the Benelux countries Dilyor Khakimov visited the headquarter of the International Trade Union Confederation (ITUC) in Brussels, where he held negotiations with Anton Leppik, Executive Secretary of ITUC’s Pan-European Regional Council. Prospects of expanding multifaceted cooperation with Uzbekistan to maintain a dialogue in labor relations were considered at the meeting. The important role of the Council of Uzbekistan Trade Unions Federation, which significantly intensified its activities in terms of great changes taking place in Uzbekistan and affecting the trade unions activities, was noted. Improvement of the situation in child and forced labor was recognized as an important achievement. A number of joint steps were agreed upon following the negotiations, including contacts plan for the future on holding a bilateral meeting in August 2019 in Kyrgyzstan with representatives of the Council of Uzbekistan Trade Unions Federation within the framework of the thematic meeting of ITUC, organization of the visit of representatives of ITUC to the Aral Sea region at the end of 2019 to explore possible areas of cooperation in the region. Uzbekistan National News Agency - uza.uz

TATNEFT filling stations chain has come to Uzbekistan

TATNEFT Company has expanded the list of the Company’s presence regions by opening filling stations in the Republic of Uzbekistan. The opening ceremony of the TATNEFT’s filling station took place in the Urtachirchik district of the Tashkent region (Okhunboboev massif, the 5th km of the Tashkent-Nurafshon highway) with participation of O.B. Rustamov, First Deputy of the Tashkent Region Hokim, N.U. Maganov, General Director of PJSC TATNEFT, and G.D. Dynnikov, Sales Representative of the Russian Federation in the Republic of Uzbekistan, B.B. Sidikov, Chairman of the Board of JSC Uzbekneftegaz, R.A. Shakirov, Representative of the Republic of Tatarstan in the Republic of Uzbekistan. The event was also attended by representatives of ministries and departments of the Republic of Uzbekistan, employees of khokimiyats, etc. Addressing the participants of the event, Nail Maganov pointed out that the good partnership between Russia and Uzbekistan was aimed at the mutual strengthening of the scientific, technical, industrial and production potential. There are many touch points between TATNEFT Company and Uzbekistan in geological exploration, fields development, tire manufacturing business. There are opportunities for cooperation in the field of training and other areas. The first TATNEFT’s multi-fuel filling station has been launched in the Tashkent region. The plans for the future provide for expanding the retail network of TATNEFT Company, which will supply the region with fuel from the leading refineries of Russia, including high-quality gasoline from the TANECO refinery complex. The filling stations plan to sell gasoline grades AI-95, AI-92 and diesel fuel produced by TANECO, gasoline AI-80 produced by the Uzbek refineries, as well as methane.

It is worth mentioning that the project implementation was envisaged by the Decree of the President of the Republic of Uzbekistan “On additional measures to simplify the implementation procedures for state property business entities and land rights” dated November 11, 2018, as well as the Resolution of the Cabinet of Ministers of the country “On priority measures to improve the operation efficiency of JSC "Uzbekneftegaz" dated February 19, 2019. It is possible to purchase oil products at filling stations both paying cash and using banking and fuel cards of TATNEFT. UzDaily – Uzdaily.com

TOURISM AND CULTURE

Uzbek archaeologists discover the legendary Alexandria Oxiana

The sensational results of the excavations will be presented by the Uzbek side at the Week of Culture and Art of Uzbekistan, which will be held from 22 to 26 August in three cities of the republic - Tashkent, Termez and Samarkand. According to Uzbek researchers, Alexandria Oxiana is located on the site of the site Kampyrtepa. The Kampyrtepa complex consists of a main citadel surrounded by a moat, a lower town enclosed by a fortress wall with towers and an unfortified suburb. Archaeologists have found here well-preserved cultural layers of the early Hellenistic, Greco-Bactrian and Kushan-Yuezhi eras. At the International Archaeological Forum “Uzbekistan - the Crossroad of Civilizations”, which will be held in Termez on 24 August 2019, the results of the colossal work carried out in recent years by a group of scientists led by academician E. Rtveladze will be announced. UzDaily – Uzdaily.com

The President of Uzbekistan signs a Law “On Tourism”

On 18 July 2019 President of the Republic of Uzbekistan Shavkat Mirziyoyev signed a Law “On Tourism”. According to the law, the State Committee for the Development of Tourism is an authorized state body in the field of tourism. Tourist information centers will be created that provide individuals and legal entities with information on tourism facilities, as well as promoting them. Tour operator and travel agent activities, as well as other travel activities are considered tourist activities. The activities of tour operators and travel agents is carried out on the basis of a license. The license is issued for an indefinite period of time. Individuals who are an individual entrepreneur who provides excursion services, a license to engage in tourist activities is not required. Guides (translator guides), guides and tour guides can provide services independently without forming a legal entity after receiving the certificate issued by the Committee. In accordance with the Law, the Committee develops the national tourist sign of Uzbekistan.

This Law enters into force three months from the date of official publication. UzDaily – Uzdaily.com

Ride on gondolas to be launched on Bozsu Channel

Venetian walks can be made in front of the Minor mosque. For this purpose, four real quadruple gondolas and one boat for eight people have been prepared. The embankment of Ankhor Bozsu has already become a favorite walking place for citizens: the coast has been landscaped, there are lanterns and benches, a free Wi-Fi zone has been created. Now this place will be even more attractive for the rest of Tashkent and guests of the city. UzDaily – Uzdaily.com

Uzbekistan to build tallest skyscraper in Central Asia

A skyscraper more than 215 meters high will be erected on the territory of Tashkent City; thereby; it will become the highest building in Central Asia, Trend reports citing Sputnik Uzbekistan. The official name of this object will be announced after August 15. The construction of 50-storey building on the territory of a little more than one and a half hectares is proceeding at a fast pace. At the end of June, 2019, President of Uzbekistan Shavkat Mirziyoyev appreciated the construction progress of Tashkent City. Foundations of more than 50 buildings have been laid on the territory of the international business center. The Congress Hall and the Hilton Hotel are being actively built. Tashkent City is the first business center in Uzbekistan and it consists of eight modern lots. The project will be implemented in four years. Offices, restaurants, cafes, apartments and luxury housing will be located on an area of about 80 hectares, and a small park with an artificial lake will be set up in the center. Trend News Agency – trend.az

Uzbekistan offers to organize Tour de Silk Road

The State Committee for the Development of Tourism of the Republic of Uzbekistan held a round table on the theme “Developing cycling as one of the ways to increase the country's tourism potential”. The meeting was attended by Advisor to the Chairman of the State Committee of the Republic of Uzbekistan for Tourism Development Bekhruz Khamzayev, representatives of the Cycling Federation of Uzbekistan, the head of the Spanish company Truebasport Fermin Truba and the manager of the company Oscar Cantero. During the conversation, representatives of the State Committee for Tourism proposed to the leadership of Truebasport to organize a joint international bike tour of the Tour de Silk Road project. According to representatives of the State Committee for Tourism, such a cycling marathon will help attract world- famous athletes to our country and will help promote the brand of Uzbekistan at the world level. During the meeting, it was noted that in the near future, Uzbekistan could become the most advanced player in Asia. The Spanish side approved the proposal of the Committee and presented its presentation

on the introduction of the bicycle system in the country, and also made proposals for the promotion of Uzbekistan as a tourist destination in Europe. “This project, which is planned to be implemented jointly with the Spanish partners and the State Committee for the Development of Tourism, will allow foreign and local tourists to easily and conveniently travel around Uzbekistan by bicycle from one destination to another. It will also contribute to a healthy lifestyle in the country and help organize long-distance cycling infrastructure,” the head of the department of the Cycling Federation of Uzbekistan, Khurshid Otakulov said. Following the meeting, the parties exchanged views on the creation of a mutually beneficial project, which will be presented to management in the near future. UzDaily – Uzdaily.com

Bill Gates and Coca-Cola funds could join to resolve Aral Sea crisis

On July 24, the Foreign Ministry presented a report to the Senate Committee for international relations, economic relations, foreign investments and tourism for H1 of 2019. The report included the steps being taken to address the Aral Sea crisis. The Government reported it addressed about 200 international organizations and foundations and that it had been also taking measures to attract private funds, with cooperation established with Bill Gates and Coca-Cola funds. Also, to address the problems of the Aral Sea region it is planned to attract funds from the European Union and the United Arab Emirates. Currently, negotiations are underway with Sweden, Germany, France and the United Kingdom. Norway was the first donor country, who pledged US$ 1.2 million. An international conference is also set to be held in Nukus on October 25, with about 300 international experts, scientists and investors to attend, who can offer precise solutions to the problems of the Aral Sea region. Tashkent Times – tashkenttimes.uz

A branch of the leading French business school in tourism and hospitality management Vatel to be opened in Bukhara

Uzbekistan implements consistent measures to develop tourism as one of the strategic sectors of the national economy, aimed at solving such major socio-economic problems as the creation of new jobs, the dynamic development of regions, the improvement of image and investment the attractiveness of the country. Under these conditions, the training of professional personnel for the tourism industry is of particular importance. It should be noted that the modern model of professional education of specialists for the tourism sector involves in its basis a multi-level system of continuous training, retraining and advanced training of personnel. The Embassy of Uzbekistan in France is carrying out comprehensive work on the study and promotion of French experience in introducing new educational standards that meet the needs of the industry and significantly expand the scope of specialized disciplines and practical exercises. At the same time, key

attention is paid to establishing cooperation and opening branches of French universities in Uzbekistan for targeted training of specialists in the tourism industry. To this end, the diplomatic mission of our country held talks with representatives of one of the leading universities in France in this area - the Vatel Business School on Tourism and Hospitality Management, during which they discussed issues of cooperation and the opening of a branch of this higher school in Uzbekistan. UzDaily – Uzdaily.com

The 1st International Gastronomic Festival "Gastro Bazaar-2019" to be held in Tashkent

International Gastronomic Festival “Gastro Bazaar” will be held on 9-11 August 2019 in Tashkent. The festival is organized by the State Committee of the Republic of Uzbekistan for Tourism Development and the khokimiyat of the city of Tashkent. Famous chefs and restaurateurs of Uzbekistan and neighboring countries, representatives of public catering points from all over the country will take part in the festival. Festival participants will be able to enjoy national dishes prepared in the style of each region, as well as taste dishes from other countries of the world. The festival organizers have thought over everything for a decent family holiday: playgrounds for young children, recreation areas, and public catering areas. The event also plans to conduct master classes with the participation of well-known domestic and foreign chefs, music, game shows and competitions with valuable prizes from the organizers and sponsors of the event. The positive charge at the festival will be presented by famous leaders and stars of the national stage for all the days of the festival. I International Gastronomic Festival, will be held on 9-11 August on Sayilgoh Street of Tashkent. UzDaily – Uzdaily.com

Uzbekistan to gather world bloggers and influencers On August 22-27, 2019, Uzbekistan will host the First World Influencers Congress. Owners of the most popular blogs, influencers and media representatives from around the world will gather here to discuss ideas and best practices in tourism development. The event is organized by the State Committee of the Republic of Uzbekistan for Tourism Development, the ministries of Culture and Foreign Affairs of the Republic of Uzbekistan, and the khokimiyats of the city of Tashkent, Samarkand, Bukhara and Khorezm regions. According to the State Committee for Tourism Development, the program of the event will include presentations of participants, conferences, business meetings, as well as World Influencers Congress 2019 Award Ceremony. Guests of the congress will also take part in a sightseeing tour, which will give them the opportunity to experience the hospitality that has been traditional for centuries on the Great Silk Road. One of the main objectives of the congress is to create a global network of influencers, which will bring together opinions of leaders from around the world and will be held on a regular basis in various parts of the world.

Uzbekistan National News Agency - uza.uz

Samarkand to develop into a tourism hub In Samarkand district, President Shavkat Mirziyoyev has met with region’s public figures, chiefs of organizational sectors, aksakals, farmers and entrepreneurs. The Head of the state noted that the main goal of the current trip to the region is to promote the development of tourism, entrepreneurship and processing industry. In particular, stressing the need to turn Samarkand into a tourism hub, the President gave corresponding instructions to the Deputy Prime Minister of the country and the khokim of the region. Shavkat Mirziyoyev emphasized that the business climate in the region should be transformed and all conditions should be created for entrepreneurs, underscored that it is essential to work in accordance with the system defined at the July 23 meeting on small business development. The President talked with khokims and sector leaders, individually considered the economy of each district, and instructed responsible officials on the implementation of initiatives and ideas outlined. Uzbekistan National News Agency - uza.uz

Uzbekistan to introduce VAT refund for visitors Uzbekistan is planning to introduce Tax Free system - the VAT retrun procedure for purchased goods to foreign nationals when leaving Uzbekistan, the July 10 Presidential Additional Measures to Improve Tax Administration Decree said. In the European Union, the non-EU citizens can claim VAT refund for goods purchased in Uzbekistan shops: to do this, they need to keep receipts and fill in VAT refund form. Tashkent Times – tashkenttimes.uz

Kokand gets ready for International Handicrafters Festiva On September 10-15, 2019, Kokand will host the First International Handicrafters Festival. All necessary measures are being taken for carrying out the art holiday at a high level. According to Hunarmand Association, the festival will be attended by more than 200 handicrafters from 72 countries, foreign statesmen, heads of organizations in handicraft, scientists and journalists. Scientific-practical conference on “Prospects for development of handicraft and folk applied arts” will also be held within the framework of the festival. The event will be attended by handicrafters from almost all regions of Uzbekistan. They will demonstrate their skills in 34 directions. Uzbekistan National News Agency - uza.uz