UZBEKISTAN – JUNE 1-30, 2020 Top News of the period ..................................................................................................................................................................... 2 Uzbekistan abolishes excise tax on imported cars 2 Quarantine in Uzbekistan extended until 1 August 2020 2 Politics and Law ..................................................................................................................................................................................... 3 Uzbekistan plans to introduce a new type of immigrant visa 3 Uzbekistan is developing a low-carbon development strategy 4 Anti-Corruption Agency established in Uzbekistan 4 Special mobile software will be developed to inform on corruption. 5 MPE plans to create a National Freelancers Center 6 Gov't adopts digital tax administration strategy 6 Uzbekistan creates inter-parliamentary groups with France, Belgium 7 Economy and Finance ........................................................................................................................................................................ 7 Uzbekistan registers its first e-money system 7 Yandex.Money launches transfers to Uzcard cards 8 Uzbekistan is accelerating the transition to international financial reporting standards 8 Uzbekistan intends to issue Eurobonds in national currency 9 Business 10 Sales of Volkswagen and Škoda cars to begin in Uzbekistan from 2020 10 Coca-Cola Uzbekistan to be privatized 10 UzAssets investment company being set up in Uzbekistan 10 Uzbekistan's first Free Economic Zone boosts businesses 11 Humans enters the market of Uzbekistan 12 Digital Technology Training Center Opens in Ferghana Region 12 IFC talks development of solar photovoltaic parks in Uzbekistan 13 New products from sheep wool 14 New mobile operator to launch its activity in Uzbekistan 14 Ukrainian SkyUp Airlines eyes to launch flights to Uzbekistan 14 Uzbekistan to establish 350 food enterprises 15 Business Clinic – a consultant for entrepreneurs in a pandemic 15 Uzbekistan to establish one-stop shop for agricultural services 15 Food production enterprise to be built in Tashkent region 16 Uzbekistan launches new international tender for 3 hydropower plants 16 Tourism and Culture ..........................................................................................................................................................................17 Uzbekistan to pay tourists who catch COVID-19 $4,370 as compensation 17 Special website developed to promote CBT tourism in Uzbekistan 18 Gov[ernmen]t is preparing to resume international flights - Tourism Develoment Committee chair 18 Uzbekistan guarantees safe travel 19 Saving tourism with tax breaks 19 Uzbekistan to host the International Festival of Oriental Handmade Carpets 20 //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4/03/2019 Uzbekistan, June 1-30, 2020 page 1 of 21 TOP NEWS OF THE PERIOD Uzbekistan abolishes excise tax on imported cars On 3 June, President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to further streamline foreign economic activity and stimulate the development of the domestic vehicle market”. According to the resolution of the head of Uzbekistan, from 1 August 2020, the current import excise tax rates are canceled for: tractors (HS code 8701); motor vehicles for the transport of 10 people or more (HS code 8702); cars of cars and other motor vehicles intended primarily for the transport of people (except for the HS code 8702), including utility vehicles and vans and race cars (HS code 8703); motor vehicles for the transport of goods (HS code 8704); It should be noted that now the excise rate on import of cars is 30%. At the same time, the excise rate for new cars produced in Russia, Kazakhstan and Ukraine is 2% of the customs value. UzDaily – Uzdaily.com Quarantine in Uzbekistan extended until 1 August 2020 By the decision of the Republican Special Commission for the preparation of the Program of measures to prevent the importation and spread of coronavirus, passenger railway and international air communications were also allowed. The division of districts, regions and cities into “red”, “yellow” and “green” zones, as well as enhanced sanitary and hygienic control will be maintained until 1 August. From 15 June, the following countries are allowed to fly to countries with a stable sanitary and epidemiological situation: - employees of diplomatic missions and consular posts of foreign countries and members of their families; - specialists of foreign companies and other organizations operating in the republic as part of investment projects; - persons who come (leave) for treatment; - persons with close relatives or seriously ill relatives abroad; - persons traveling (in transit) to other countries through Uzbekistan at the request of diplomatic missions and consular posts of foreign countries; - foreign citizens permanently registered in Uzbekistan, stateless persons permanently residing in the country, as well as Uzbek citizens permanently registered in a foreign state; - citizens of Uzbekistan to continue their studies and work. The following requirements are established for citizens of Uzbekistan arriving from abroad: //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4/03/2019 Uzbekistan, June 1-30, 2020 page 2 of 21 - Persons who have arrived from states with a stable sanitary and epidemiological situation - Japan, South Korea, China and Israel, and who have been in them for the past 14 days will not be quarantined; - Persons who arrived from the countries of the European Union, Malaysia, Thailand, Singapore, and who were in these countries over the past two weeks will be placed in 14-day home quarantine; - Persons arriving from countries where the number of cases of coronavirus infection has not decreased - the UAE, Turkey, Iran, Afghanistan, Russia and other CIS countries will be placed in quarantine centers for 14 days. Starting from 15 June, passenger rail service opens. Passenger trains are allowed to run on the following routes: Tashkent-Bukhara-Tashkent Tashkent-Termez-Tashkent Tashkent-Khiva-Tashkent Tashkent-Nukus-Tashkent Andijan-Khiva-Andijan Andijan-Bukhara-Andijan Andijan-Termez-Andijan Tashkent-Samarkand-Tashkent (Afrosiab train traffic) On trains all sanitary and hygienic rules must be strictly observed. State preschool educational institutions will be open only from 1 August. From 15 June, the activities of private kindergartens are allowed in the "green" and "yellow" zones. UzDaily – Uzdaily.com POLITICS AND LAW Uzbekistan plans to introduce a new type of immigrant visa Uzbekistan plans to introduce a new type of ‘Uzbekistan Is My Second Home’ immigrant visa to attract people with high incomes and high academic knowledge. This was reported by the Uzbekistan 24 TV channel. The introduction of visas is planned to be carried out as part of the Presidential resolution “On Additional Measures for the Development of the Tourism Sphere with Strict Compliance with the Requirements of the Enhanced Sanitary and Epidemiological Safety Regime” from 19 June. It is expected that the new visa will be introduced from 1 January 2021. The President entrusted a new type of immigration visa within two months. The visa is being introduced to attract people of high income, with high academic knowledge, life skills, and abilities to Uzbekistan to live. They and their family members can live in the country and invest their knowledge. UzDaily – Uzdaily.com //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4/03/2019 Uzbekistan, June 1-30, 2020 page 3 of 21 Uzbekistan is developing a low-carbon development strategy Uzbekistan will adopt the National Low-Carbon Development Strategy, which is currently being developed by the country’s Ministry of Energy with the involvement of international experts. This was reported by the press service of the Ministry of Energy. The document will reflect the transition to the production of electricity with low greenhouse gas emissions that negatively affect the environment. In early May, the country adopted the "Concept of providing the Republic of Uzbekistan with electric energy for 2020-2030", which was developed with the participation of the Asian Development Bank and the World Bank. The concept envisages the modernization of existing power plants, the creation of new types of power generation through renewable energy sources and nuclear power plants. These measures will reduce greenhouse gas emissions by 10% by 2030 compared with 2010. Currently, on the basis of this document, the National Low-Carbon Energy Strategy of Uzbekistan is being developed, in the preparation of which experts from the European Bank for Reconstruction and Development are participating. A strategy is necessary to solve the problem of the country’s energy supply, on the one hand, and to reduce the negative impact on the environment, on the other. “The strategy for the transition to low-carbon energy is being developed using the method of modeling the country’s energy system and possible future development scenarios. This will be done by the international consulting company Corporate Solutions. In parallel, we are studying