Hr Market of Uzbekistan CORPORATE ADVERT NIGERIA.Pdf 1 02/02/2015 12:46

SECOND 2015

hr market of Uzbekistan CORPORATE ADVERT NIGERIA.pdf 1 02/02/2015 12:46

CMY

K AMCHAM UZBEKISTAN

Dear Members and Friends,

It has been a challenging year and we are proud of AmCham’s achievements and the resilience of our membership. Economic upheavals continue to plague and delay a global recovery that would elevate commodity prices and foster investment—so we must hope that the tide will turn in the New Year and normalcy will prevail. In the meantime we are fortunate to enjoy Uzbekistan’s peace and stability. This issue of Business Connections is focused on human resources as it is a priority area for all of us as we look to attract, retain and nurture the best people for our respec- tive businesses. We close the year by wishing you the very best of season- al greetings and the hope that the New Year will bring good tidings and increased prosperity.

The Editorial Board

WWW.AMCHAM.UZ 1 Invitations

EXHIBITIONS in Uzbekistan, 2016

www.afs-research.com

Date Exhibition Organizers Short description

02–04 March Aqua-Therm ITE Uzbekistan Aqua-Therm Tashkent, the 5th anniversary internation- Uzexpocentre, Tashkent, Tashkent—2016 al exhibition on heating, ventilation, air conditioning, wa- Uzbekistan ter supply, sanitary ware, swimming pools, environmental technology and renewable sources of energy.

02–04 March MebelExpo ITE Uzbekistan MebelExpo Uzbekistan presents progressive solutions Uzexpocentre, Tashkent, Uzbekistan—2016 for furniture and woodworking production. It provides a Uzbekistan platform for business discussions for producers and re- tailers of furniture, suppliers and distributors of modern technological equipment, tools, furniture, and materials, and interior design specialists.

02–04 March UzComak—2016 ITE Uzbekistan The International UzComak Exhibition is the only spe- Uzexpocentre, Tashkent, cialised event in Uzbekistan that gathers leading inter- Uzbekistan national companies that produce and supply construction, road building, utility and excavation machinery, lift- ing machinery and equipment.

02–04 March UzBuild—2016 ITE Uzbekistan 17th Uzbek International Exhibition "Building and Interiors, Uzexpocentre, Tashkent, Heating and Ventilation" Uzbekistan

16–18 March AgroWorld ITE Uzbekistan AgroWorld Uzbekistan, being held alongside WorldFood Uzexpocentre, Tashkent, Uzbekistan—2016 Uzbekistan is one of the top market international events, Uzbekistan which is organized and carried out in cooperation with the Ministry of Agriculture and Water Resources of the Republic of Uzbekistan, Farmer's Council of the Republic of Uzbekistan and other Government Associations and Embassies of foreign countries. The exhibition’s mission is to provide a platform for efficient communication between agrarians and leaders of processing equipment and agricultural machinery sectors, as well as related industries experts and government bodies.

16–18 March WorldFood ITE Uzbekistan WorldFood Uzbekistan is the country’s largest food ex- Uzexpocentre, Tashkent, Uzbekistan—2016 hibition and an ideal professional meeting place for the Uzbekistan 5000 industry figures who visit every year: suppliers, producers, traders, and big names in the domestic and international food industry.

23–25 March UzMiningExpo—2016 IEG Uzbekistan The exhibition is organized with the aim to attract the Uzexpocentre, Tashkent, leading international and domestic companies, operat- Uzbekistan ing in sphere of production and supplying of industrial equipment and technologies for mining industry.

23–25 March UzMetalMashExpo— IEG Uzbekistan The purpose of the exhibition is the attraction of the Uzexpocentre, Tashkent, Metallurgy and leading international and domestic companies, which Uzbekistan Machinery work in the field of production and deliveries of industrial equipment, rolled metal product and metal structures, enterprises of ferrous and nonferrous metallurgy.

23–25 March UzSpecTechExpo— IEG Uzbekistan The Exhibition is organized for the companies operating Uzexpocentre, Tashkent, Special equipment and in the sphere of production and deliveries of construc- Uzbekistan spare parts tion, highway, municipal engineering and equipment.

2 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Date Exhibition Organizers Short description

23–25 March UzChemPlastExpo IEG Uzbekistan International specialized exhibition «UzChemPlastExpo— Uzexpocentre, Tashkent, Chemical industry. Plastics and polymers production. Uzbekistan Laboratory and analytics» will take place on March 23– 25, 2016. The exhibition is an important event in Chemical and Plastic Sector of Uzbekistan economics and will give the companies to demonstrate its production, new techno logies.

23–25 March UzSecureExpo—2016 IEG Uzbekistan Under present conditions it is impossible to effective- Uzexpocentre, Tashkent, ly perform the tasks of ensuring the national, social and Uzbekistan personal security without an integrated approach to solving them. The exhibition «UzSecureExpo—2016» will provide an opportunity to discuss important issues on personal and public safety.

23–25 March UzAutomationExpo IEG Uzbekistan The exhibition purpose is promoting widespread adop- Uzexpocentre, Tashkent, tion of computer and information technologies in indus- Uzbekistan try, demonstration of the latest software and hardware automation, control and communication systems in the industry. The exhibition is dedicated to all levels of business automation of various industries and is aimed at professionals—managers, experts in information technology, management, and automation.

19–21 April AptekaExpo Central ITE Uzbekistan com- International Specialised AptekaExpo Central Asia ex- Uzexpocentre, Tashkent, Asia—2016 pany hibition is an effective platform for showcasing finished Uzbekistan pharmaceutical products and pharmaceutical production technologies.

19–21 April Stomatology ITE Uzbekistan com- Dentistry in Uzbekistan is developing at the same level as Uzexpocentre, Tashkent, Uzbekistan—2016 pany science and medicine around the world. There are grow- Uzbekistan ing capabilities for the provision of highly qualified dental services and the effective treatment of tooth, gum and oral cavity disease.

19–21 April TIHE—2016 ITE Uzbekistan com- TIHE is the main medical forum for the latest technol- Uzexpocentre, Tashkent, pany ogies and practical healthcare in Uzbekistan. Over its Uzbekistan long history, the exhibition has been a highly effective professional platform and meeting place for representatives of government bodies, producers of equipment and medical products, scientists and practis- ing doctors. Exhibitors include world leaders of medical production, developers of new diagnostic and treatment technologies, representatives of pharmaceutical companies and developers of equipment for the pharmaceutical industry.

04–06 May Textile Expo ITE Uzbekistan com- Dentistry in Uzbekistan is developing at the same level as Uzexpocentre, Tashkent, Uzbekistan—2016 pany science and medicine around the world. There are grow- Uzbekistan ing capabilities for the provision of highly qualified dental services and the effective treatment of tooth, gum and oral cavity disease.

18–20 May Power Uzbekistan—2016 ITE Uzbekistan com- Power Uzbekistan is firmly in the lead among energy re- Uzexpocentre, Tashkent, pany lated events in the region, recognised as the largest event Uzbekistan in the industry with the greatest number of visitors. Every year, the exhibition presents visitors with the full range of the most modern equipment, technologies and services for the energy sector of Uzbekistan in fields such as "Energy, Electrical Technology and Alternative Energy".

18–20 May Oil & Gas Uzbekistan— ITE Uzbekistan com- 20th International Exhibition and Conference Uzexpocentre, Tashkent, OGU—2016 pany Uzbekistan

01–03 June Uzbekistan ITE Uzbekistan com- The international Uzbekistan Infrastructure—Ferghana Uzexpocentre, Tashkent, Infrastructure— pany Valley 2016 exhibition will take place in the centre Uzbekistan Ferghana Valley 2016 of the densely populated Ferghana Valley region of Uzbekistan.

WWW.AMCHAM.UZ 3 Invitations

International Buyer Program U.S. Trade Show Schedule for 2016

Exhibition Date City Web site

CES® 2016 06–09/01 Las Vegas, NV cesweb.org

The Shooting, Hunting, Outdoor Trade Show and Conference 19–22/01 Las Vegas, NV shotshow.org SHOT Show®

International Production & Processing Expo 26–28/01 Atlanta, GA ippexpo.com

World of Concrete (WOC) 2016 02–05/02 Las Vegas, NV worldofconcrete.com

DistribuTECH® Conference and Exhibition 09–11/02 Orlando, FL distributech.com

Progressive Insurance® 11–15/02 Miami, FL miamiboatshow.com Miami International Boat Show®

Natural Products Expo West/Engredea 2016 10–13/03 Anaheim, CA expowest.com

NAB Show® 2016 18–21/04 Las Vegas, NV nabshow.com

Offshore Technology Conference 02–05/05 Houston, TX otcnet.org

The National Restaurant Association Restaurant, Hotel-Motel Show 21–24/05 Chicago, IL show.restaurant.org NRA Show® 2016

WasteExpo 2016 07–09/06 Las Vegas, NV wasteexpo.com

InfoComm 2016 08–10/06 Las Vegas, NV infocommshow.org

International Franchise Expo 2016 16–18/06 New York, NY ifeinfo.com

Fancy Food Show (Summer) 2016 26–28/06 New York, NY specialtyfood.com

2016 AACC Annual Meeting & Clinical Lab Expo 24–28/07 Atlanta, GA aacc.org

Outdoor Retailer Summer Market 03–06/08 Salt Lake City, UT outdoorretailer.com

International Woodworking Fair 24–27/08 Atlanta, GA iwfatlanta.com

Farm Progress Show 31/08–27/09 Boone, IA farmprogressshow.com

Solar Power International 12–15/09 Las Vegas, NV solarpowerinternational.com

Water Environment Federation Technical Exhibition and Conference 24–28/09 New Orleans, LA weftec.org WEFTEC® 2015

MINExpo International 2016 26–28/09 Las Vegas, NV minexpo.com

International Baking Industry Exposition (IBIE®) 08–11/10 Las Vegas, NV ibie2016.org

Greater New York Dental Meeting (GNYDM) 2016 25–30/11 New York, NY gnydm.com

4 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Baker Tilly Uzbekistan provides 10%– Ramada Tashkent Hotel provides spe- Fraser Avtoyuklovchi Servis is the 15% discounts for 2016 on the follow- cial offers for 2016 on following venues Official Sales, Service and Maintenance ing services: & services: Dealer in Uzbekistan for TOYOTA $$ Audit in accordance with national $$ Dublin Irish Pub ‘new venue’—15%; Industrial Equipment specializing in and international standards; $$ The Park Café Restaurant—15%; Fork Lift Trucks. It is also the Authorized $$ Financial accounting and prepara- $$ The Lounge Bar—10%; Dealer for Hangcha Fork Lift Trucks (#1 tion of financial reporting in accord- $$ Health Club ‘Revive’—20% from 6 to industrial equipment producer in China ance with national and international 1 year membership; & # 9 in the global fork lift suppliers rat- standards; $$ Accommodation—10% from Best ing), Hansa Flex hydraulic hoses and fit- $$ Taxation and business law; Available Daily Rates; tings, Watts super elastic no mark tires $$ Corporate management and finance; $$ Conferences & meetings—10%. and Takeuchi construction machinery. $$ M&A; $$ 10% on forklift service/maintenance $$ Outsourcing of business processes; and repair; $$ Due diligence; $$ 10% on tires and order made hy- $$ Complex support in investment pro- draulic hoses/fittings; jects and business consulting; $$ 5% on the full range of forklifts cur- $$ Financial and investment manage- rently available in Tashkent. ment; $$ Marketing; $$ Business planning

WWW.AMCHAM.UZ 5 Feature

Uzbekistan hr market overview by Tatyana Bystrushkina

Overview resulted in a significant drop in ag- limited relative to the size of the econ- With a population exceeding 30 million riculture shares in GDP (Graph 2). omy (1% of GDP in per capita terms). as of 2014 (WB, 2015), Uzbekistan is the However, the share of employment Deterioration of the external envi- most populated country in Central Asia. in industry has not increased, un- ronment due to recession in Russia This is nearly half of the total population derscoring that industrial sectors in caused about 200,000 Uzbek work- of the Central Asia region. The popula- Uzbekistan are relatively capital in- ers to return home in 2014, and an ad- tion is young, with 60.3% under the age tensive (Graph 3). ditional 150,000 workers in the first of 30 (graph 1). People are endowment Officially, in 2012–13, the unemploy- eight months of 2015. The number of the Republic, but with rapid popula- ment rate stood at 4.9% of the eco- of registered Uzbek workers in Russia tion growth, full utilization of the labor nomically active population (not count- has since declined to 2.1 million as of force is a difficult goal to attain. With ap- ing labor migrants abroad).It increased August 2015—representing a 6.6% total proximately 1.6% population growth an- to 5.1% in 2014 and rose to 5.2% in the decline since December 2014. While nually (WB, 2015), labor force growth first half of 2015. (WB, 2015) Uzbekistan government policies will regularly outpaces job creation, which is Today the economy of Uzbekistan need to be developed addressing ex- among the top priority directions of the is dominated by state or semi-state ternal shocks, considering the rapid socio-economic policy of Uzbekistan. enterprises. Additionally, the public growth of a young and dynamic pop- Over the last 15 years the structure sector provides at least 40 percent of ulation, would it be feasible from an of Uzbekistan’s employment shares GDP and 33 percent of employment economic and social standpoint for in certain sectors of the economy (Government of Uzbekistan, National Uzbekistan to invest in more labor in- have changed along with the eco- Statistics). Private sector companies tensive industries? nomic structure. Increases in both tend to be small and inward looking. Methodology—This article is built services and industry shares have Foreign Direct Investments remain upon a questionnaire which was dis- seminated throughout the enterprises in manufacturing, consulting and services, banking, food processing, the hospitality business and telecommunication sectors. The purpose of the questionnaire was to evaluate the labor market in Uzbekistan, including the qualifications of employees, to find out what professions are in demand, determine the level of university graduates and what employers are looking for in potential employees. Companies also shared their views on how to develop talent and motivate personnel. We were curious to know how internal company policy can be adjusted to better adapt to a turbulent external environment (expedited devaluation rate) in the sphere of compensation to keep personnel motivated.

6 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Uzbek Labor legislation to UZS 14 a week. The Minimum wage Back in the 1990’s, Uzbekistan was the benchmark, however, has not changed first former Soviet country to revise la- yet and its increase does not reflect bor legislation to fall in line with current the real situation in the economy. market requirements. However, the Some investors report that due to the country is still in the process of transi- current situation employees are ex- tioning from the Soviet system. Even pecting an increase of at least 30% in vestiges of the past, like “trade union salary in order to compensate for the committees”, and “collective agree- devaluation disparity and match their ments” remain. level of income with that of the same Uzbek labor legislation protects period last year when the UZS was sta- employees rather than employers. ble relative to the USD. Foreign inves- However, when it concerns the rights tors, however, find it difficult to justify of employees, the role of trade unions a local salary increase to their HQ. is not as crucial, and they do not tend to have the same power as do those in Labor Market Trends dency for the hospitality business. Also, OECD countries. Uzbek labor legislation people who work in hospitality are rela- protects vulnerable members of soci- Trend 1—PERSONNEL tively young and over time are eager to ety such as university graduates, wom- TURNOVER gain work experience abroad or con- en, people with disabilities and young Voluntary turnover or personnel leak- tinue their education. The current ed- people just returning from military ser- age. Here we need to differentiate leak- ucation system of Uzbekistan, howev- vice. At the same time, there are con- age of valuable employees (regrettable er, makes it impossible to combine full tradictions, such as probation periods losses). The main reason reported for time education with the shift work re- not applying to graduates, women with leakage is the departure of employees quired by the industry. children under age of 3 years or young for jobs abroad. This so called “brain men just returning from military service. drain” occurs when talented profes- Trend 2—Shortage of Additionally, government labor agency sionals leave for more income, seek ex- specialists in certain areas regulations require that companies re- perience in more dynamic markets, or Despite a young and relatively well edu- tain a certain percentage of the work- simply change permanent residence in cated population, companies report a force which can make it difficult for em- order to continue their careers and life lack of qualified specialists and man- ployers to hire the right people. outside of the country (in many cases agers. Among those surveyed, the big- Overall, current Uzbek labor legisla- repatriation to Russia). A certain num- gest employee demand not matching tion is designed to comply with inter- ber also leave in order to continue their supply was in the selection of techni- national standards. It defends the in- education abroad. cal staff, especially those in the fields terests of employees and establishes Companies reported staff turnover of engineering and finance manage- “clear rules” for employers. However, has increased an average of 10% within ment. Most difficult to find were engi- the last time changes were made was the last two years. A major reason for neers, electronic engineers, software in 2006 when the minimum hiring age this is low level of local market salaries specialists and specialists on automat- was lifted from 14 to 15 years. Still, in or- compared with the same positions in ed systems. The problem is especial- der to comply with modern business neighboring markets. A reported 55% ly acute in the rural areas. Companies requirements and current internation- of total voluntary staff departures indi- in those areas report a short supply of al practices, changes in legislation are cated that they had found another job plant managers, commercial manag- recommended so as to offer more in Uzbekistan, mostly with other Uzbek ers, corporate affairs managers, certi- flexibility to companies given the real- companies. In summary, it is both do- fied public accountants, commercial ities of the market. mestic and international demand for managers, process engineers, design Another practice inherited from talent which is fuelling salary compet- and project engineers, etc. Soviet times is the minimum wage— itiveness and employee turnover. Employers also reported a lack of a benchmark against which all oth- The Hospitality Industry tradition- young specialists with economic or er wages are calculated. However, ally sees a higher turnover of person- technical backgrounds and knowledge within the last 6 months we have wit- nel than in other sectors. High turnover of English, and in many cases Russian, nessed an accelerated rate of devalu- is especially prevalent among newco language. This problem is especially ation of the Central Bank of Uzbekistan mers to the industry. The salary level for acute in the regions outside the capital. (CBU) exchange rate. Official UZS de- workers is low and employees have the Some hotels also reported high valuation accelerated beginning in opportunity to gain experience working need for qualified hotel executives in October, from the rate of UZS 7 a week in foreign countries. This is a global ten- F&B (food and beverage), Operations,

WWW.AMCHAM.UZ 7 Feature

Finance and housekeeping. Most em- About 483,000 students graduated graduate with an aim to devel- ployees have a mid level education- schools in all regions of Uzbekistan in op top managers within ten years. al background in hospitality, but only 2015. At present, around 70,000 to Pre-establishment of trainee tal- some university faculties are prepar- 80,000 specialists complete high- ent pools, investment in job training graduates for careers as specialists er education degrees in Uzbekistan ings, as well as international trainings, in administration, sales and marketing each year. Yet, while the number of are strategies foreign investors use. and front office. students graduating from universi- This often proves to be more advan- It remains difficult to find can- ties has grown from 49,000 to around tageous for the company in the long- didates for hospitality operations. 80,000 within the last 20 years, the term. Hotels report a lack of F&B profes- shares of graduates in different sec- Several companies also repor sionals, professional chefs who are tors have not changed much since ted that they have special pre- aware of multinational cuisine, House independence. graduation programs. These com- Keeping supervisors and restaurant In Tashkent, recent graduates of panies “pre-invest” in the best stu- personnel. It is also difficult to find foreign universities (Westminster, dents within the selected universi- professional schools with programs Turin, Singapore etc.) have very high ties and “in source” potential em- offering dual systems (learning by do- salary expectations, but no experi- ployees. Special programs give stu- ing—theory and practice), better pre- ence. Graduates from foreign uni- dents opportunity to compare the- paring graduates for careers in the in- versities tend to have more practi- ory and practice. Generally, most dustry. In conclusion, the hospitality cal knowledge and self-confidence graduates are easy to attract but business is experiencing a shortage of compared to graduates of local uni- hard to retain because they do not managers and super visors who have versities. have the same perspective on sal- qualifications in tourism and services This is mainly because western aries as employers and are prone to with the required developed language oriented universities require intern- leakage. skills and relevant work experience. ships, where students work in com- This is because qualified specialists in panies gaining practical experience Trend 4—Middle managers, the hospitality business with language for certain periods of time as part and in some cases top knowledge tend to leave the country in of their curriculum requirement. managers, from multinational order to work abroad so they can gain Employers also noted that the qual- companies choose to work valuable international experience and ity level of graduates from local uni- for local companies. make much higher salaries. versities has fallen sharply over the Based on the latest trends observed, past 15 years. Companies also re- local Uzbek companies, especial- Trend 3—The quality of new ported that a combination of good ly in FMCG (fast moving consumer university graduates from Uzbek English and engineering (technical) goods), retail business, services and and Foreign Universities does background is almost impossible to food processing, are growing rapidly. not match up with their high find among young graduates of uni- Owners and top managers of most ambitions and salary expectations versities especially in the regions local companies are former employ- outside of Tashkent. ees of multinationals who implement Currently, there are more than As a rule, most multinational com- western corporate practices. Local 70 universities in Uzbekistan, and panies prefer to employ young indi- companies, therefore, present se- only 60% of them are under the con- viduals with an overall good educa- rious competition to multinationals trol of the Ministry of Education. The main languages used in the univer- tion, good leadership skills and an when it comes to personnel moti- sities of Uzbekistan are Russian and enthusiasm, rather than people with vation, development and training. Uzbek, but some lessons are also practical experience. When select- Uzbek companies are far more flexible taught in English. In addition, seven branches of foreign universities, ad- ing candidates, companies consider in terms of compensation and quick- mission quotas of which are defined these so called “talents” passionate ly adjust to market changes as they do separately, are operating within lovers of their profession who want not have to coordinate with an inter- the country. They are Westminster to acquire maximum skills based on national headquarters abroad. Some International University, branches of Lomonosov Moscow State their back ground who are eager to foreign companies reported that they University, Gubkin Russian State work. usually they have 18 months plans University of Oil and Gas, Plekhanov Lack of work experience is not a for salary and compensation and are Russian Economic University, The Management Development Institute problem. Companies usually have therefore unable to quickly adjust to of Singapore, The Polytechnic internal programs aimed at devel- market changes. University of Turin and a represen- opment of skilled professionals af- There also tends to be more so tative office of Nagoya University, INHA University. ter graduation from the universi- called “freedom and self realiza- ties. Companies invest in the fresh tion” in local companies. Absence

8 Business Connections • 2’2015 AMCHAM UZBEKISTAN of multiple bosses, like in multinationals, and freedom to introduce Graph 1. Working age population in Uzbekistan innovations without coordination with several layers of top manage- thousands of individuals % ment, attracts experienced man- 20000 68 agers from multinationals to seek employment with local companies 15000 64 where they are able to apply their extensive knowledge and experi- 10000 60 ence and realize their own profes- 5000 56 sional ambitions. 0 52 CONCLUSION 2000 2015 2030 2045 2060 2075 2090 The labor market of Uzbekistan is char- Working age population acterized by a large excess of labor Share of working age population in total population supply over labor demand. Despite this disparity, the country is experi- Source: WB calculations using UN, World Population Prospects, 2012 encing a shortage of certain categories of professionals like engineers, fi- nancials managers and others. There Graph 2. Employment by sectors of economy is also disparity in salary expectations and “real salary” which contributes to leakage of skilled and qualified labor 2011 2012 2015 2013 2014 2001 2010 2007 2002 2005 2003 2004 2006 2009 to neighboring markets and migration 2008 abroad. 80 % The public sector is Uzbekistan’s 60 % main employer. The public sec- 40 % tor is unable to compete with pri- 20 % vate sector salaries. Labor force 0 % growth is outpacing job creation in Net taxes 12 12 13 14 11 9 10 9 7 8 8 8 8 8 9 Uzbekistan every year. In order to Industry 14 14 15 17 21 22 24 22 24 24 24 24 24 24 24 address this challenge, Uzbekistan Agriculture 30 31 29 27 25 24 22 19 18 18 18 17 18 17 17 will need to decide how the private Construction 6 5 4 5 5 5 5 6 7 6 6 6 6 7 8 sector can play a larger role in the Services 37 39 38 38 38 39 39 43 44 44 45 45 44 44 43 economy. Source: Government of Uzbekistan and World Bank calculations This can be achieved by structur- al reforms accelerating labor shed- ding from presently overstaffed enterprises and affect real wages. Graph 3. Employment by sectors of economy Large reallocation of labor will have to take place from public to private 2011 2012 sectors and from old unproductive 2015 2013 2014 2001 2010 2007 2002 2005 2003 2004 2006 2009 2008 to new competitive sectors. This requires creation of more favorable 80 % conditions for private sector devel- 60 % opment and attraction of foreign in- 40 % vestors. 20 % Labor legislation is overall satisfac- 0 % tory. Still, in order to remain compat- Industry 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 ible with modern business require- Agriculture 34 33 32 31 29 28 28 28 26 27 27 27 26 25 25 ments and international business Construction 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 practices adjustment of labor code Services 46 47 47 48 49 50 50 50 52 51 51 51 52 53 53 legislation is recommended to offer more flexibility to companies given Source: Government of Uzbekistan and World Bank calculations the realities of today’s market. #

WWW.AMCHAM.UZ 9 Feature

Efficient instruments of personnel motivation in Uzbekistan

The main goal of many managers today to make decisions. However, the subse- their work, as long as work is complet- is to find the right ways to motivate their quent interest of someone to work in a ed on time; employees. In any case, the success of company, to develop init and together $$ additional days off—in addition to the organization as a whole, and its im- with it, depends on the employer. the weekends, fixed by law, the em- age among clients and staff, depends There are two categories of employ- ployer gives the employee days off for on the employee’s work. Our company ee motivation: tangible and intangible. achieving a specific goal, timely imple- often receives orders for recruitment The most commonly used type of mentation of a project, and so on; with a certain level of motivation. For motivation is the financial incentive; it $$ comfortable team atmosphere— example, some employers are afraid is generally understood that employ- the most popular incentive for work, of candidates who are too motivated ees feel it is most important to receive communication and interaction in a in getting a particular job, while others an additional financial reward for good group occupies most of the working are afraid of the opposite—employees work in order for them to be loyal to hours, so it is important to create a with low levels of motivation to work. the company. This certainly can and team atmosphere which is favorable; HRC company often receives a re- does work, but how long will this result $$ development and promotion poten- quests to diagnose employee motiva- last? There is a strong possibility that tial—allows employees to understand tion. For testing this, HRC uses various at some point a person will not suc- what management sees and appreci- psychological techniques, structured cumb to such stimulation and change ates in their work and achievements, interviews, and case studies, which from one company to another, which including higher promotion potential, simulate a situation of choice, clearly may provide less monetary compen- therefore prompting employees to the showing what motivates the employee. sation, but may provide something constantly develop, and strive to as- Our expertise include understand- else the employee needs. This “some- cend to greater heights. ing what it is candidates expect from an thing”, refers to intangible incentives. By simply being respected and rec- employer is to understand what candi- Intangible incentives consist of: ognized in the workplace as a person, dates expect from an employer, what $$ flexible working hours—employees an employee will work harder for the they aspire to, and what motivates them may choose the time and duration of prosperity of the company. When supporting the development of an employee, you are supporting the development of the whole company. Each manager decides what is important: to motivate employees with a tangible financial incentive—this is an easy way to motivate employees quickly, but it is not sustainable; or intangible—with an orientation to the future, giving the employee time to form loyalty to the employer. Of course, many companies are trying to introduce a system of staff loyalty, but we must first consider the system’s compliance with corporate culture, rules and regulations. Then the loyalty system will begin to work for the good of the company.

10 Business Connections • 2’2015 AMCHAM UZBEKISTAN

The question of what kinds of motivation are best will be discussed for Recruitment of Expatriates—In a surprising move the Uzbek authori- a long time in professional circles, but ties have announced that foreign professionals will be recruited as se- we should definitely consider the pos- nior executives in select state-owned enterprises including senior po- sibility of combining both material in- sitions in following enterprises: $$ Uzbekneftegas (Uzbek Oil and Gas National Holding Corporation); centives and non-material incentives. $$ Deputy Chairman of JSC Surhonparmalashishlari; Despite the interest of employees $$ Deputy Chairman on geology JSC Kokand neftegazparmalashishlari; to continue to work productively in your $$ Deputy Chairman on geology JSC Neftvagazquduqlarnisinash; company, an important thing which $$ First deputy chairman of JSC Neftvagazquduqlarnisinash; needs to be considered is why a can- $$ Deputy Chairman on geology JSC Qashqadaryoparmalashishlari; didate chooses to work for you, rather $$ Deputy Chairman on geology JSC Bukhoroneftegazparmalash; $$ Chairman of the board AO ASAKATRANSNEFT; than for your competitor, and vice versa. $$ Chairman of the Board JSC Tashneftegastroy; According to the results of our $$ First deputy chairman of JSC Uzpartamponaj. study we have identified the following factors determining why candidates Other vacancies are available in: choose to work for an organization: $$ Uzkimyosanoat (Uzbek Chemical Association); $$ Uzbekengilsanoat (Uzbek Textile Industry); $$ Uzagroprommash holding (Uzbek Agro-Industrial Association); Figure 1. Factors determining $$ Uzbekiston Temir Yullari (Uzbek Railways); choice of employer $$ Uzbek Ministry of Agriculture and Water Resources; $$ Uzpahtaeg (Uzbek Cotton Export); 29 % 21 % $$ Uzvinprom holding (Uzbek Winery); $$ Uzmetcombinat (Uzbek Metallurgy); $$ Uzstroymateriali (Uzbek Construction).

Given the significance of this AmCham will follow-up and contact the Uzbek authorities to get further details and information on terms and conditions of employment.

Based on our experience in the la- with rapidly growing importance of the 50 % bor market, we can say that the most company’s image as a factor deter- popular factor in why employees mining the choice. Image of the company Work conditions choose a company are working con- Do not forget, “The best people Opportunities for professional growth ditions (wages—ranked highest), along work in the best companies” #

1. Working conditions in the organi- lution of business problems of our cli- zation—the first and most important fac- ABOUT HRC ents rather than simple recruitment. tor to why employees choose an employ- «HR Capital Consulting» (HRC) es- Our consultants keep tracking of er—this includes salary, friendly staff, of- tablished in 2006 to develop human information and changes occurring fice location, and comfortable workplace; resources; the main purpose of the at the labor market and willingly share 2.Opportunities for professional company is to attain leading posi- this information with the clients. growth and development of employ- tion providing consulting services HRC works to increase compet- ees—many candidates are ready to in such spheres as recruitment, HR itiveness of your company by staff- ing it with highly qualified personnel. leave their high paying jobs and switch consultancy and business training, Success of your personnel and as a to a company where they have an op- assessment of the personnel. portunity to express themselves, de- result—of your company—is the main HRC utilizes modern HR method- indicator of effectiveness of our work. velop professionally, and have a high- ology and information technologies er promotion potential; in its daily work. The main asset of the Contacts: 3. The image of the company—a company is the trust of our clients— Address: Tashkent, 100000 factor which is increasingly popular in well-known national and internation- 1, Niyozbek Yuli Street why employees choose to work for an al companies, as well as a consider- 3rd floor, office #9 organization—this expresses how the able database of the best specialists. URL: www.hrc.uz company presents itself on the mar- Our Company adheres to the Email: [email protected] ket, the image of those who work there, principles of client-orientation and Phone: +998 (71) 150‑4230 and that the company is willing fight to confidentiality, concentrating on so- retain valuable employees.

WWW.AMCHAM.UZ 11 Committee News

Trade and Investment Committee work in 2015—Second Half

Members of the AmCham Trade and business, tourism, consulting, retail, about the development of the in- Investment Committee are primarily and the trade and telecommunica- vestment climate and banking sector private business representatives both tion sectors met with Mr. Christopher in Uzbekistan. They also discussed with foreign and Uzbek capital. Other Miller, visiting program Manager on opportunities for HSBC in bank- than gathering for regularly scheduled Trade and Competiveness Program, ing and major investment banking meetings, members also meet with vis- IFC. The objective of the meeting was products, Export Finance and non- iting companies, international organi- to get perspective from the private recourse finance. In line with their zations etc. sector on key regulatory and institu- strategy of optimization of global In the second half of 2015 mem- tional constraints affecting domestic markets and reduction of complex- bers of the Trade and Investment and foreign investors in Uzbekistan in ity, HSBC closed their operations in Committee had several interesting order to better assess country devel- Kazakhstan and were in the process and useful meetings including: opment strategy in the coming years. of selling their Turkish branch in 2015. Meeting with HSBC Export Finan At the same time, HSBC is looking for Private Sector Consultations ce, Russian Project Finance, Export new destinations, including captu with International Finance Capital Financing and the ring growth opportunities in Asia; in- Finance Corporation head of Capital Financing, Global cluding China’s Pearl River Delta, in Over twenty members of AmCham banking and Markets Moscow, Russia, the Association of Southeast Asian representing manufacturing, agri- participants exchanged opinions Nations (ASEAN), and in our Asset

12 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Management and Insurance businesses. Uzbekistan, with a population of 30 million, could be a po- Benjamin Schneider tential market for HSBC expansion. NEW CO-CHAIRMAN Members of the HSBC team mentioned that they have no experience T&I COMMITTEE working in Uzbekistan and as of this moment have not provided any private sector loans or general banking services within the country. JP Morgan Chase Executive Direc tor, Central Asia, discussed project finance and opening up the Uzbek market to external long-term (25 years) investment. ing the Gen 2 B-DOHC engine at GM Powertrain IMF Article IV Uzbekistan in Tashkent. Consultations Mission Ben has twenty-sev- And finally, on December 3, 2015, en years of experience members met with the new mission in the automotive indus- chief of the International Monetary try in various functions Fund, Mr. Albert Jaeger, who visit- including Finance, Sales, ed the country with a team in order Marketing, Planning, and to conduct Article IV Consultations Program Management. with the Government of Uzbekistan Schneider began his (GoU). The mission shared obser- career with GM in 1988 on vations based on consultations with the Finance Staff at the the GoU. Low commodities pricing for AC Spark Plug Division in the primary articles of Uzbek export, Flint Michigan. He sub- and deterioration of the external envi- Benjamin (Ben) Schneider sequently held vari- ronment, namely recession in Russia, is currently the Manager— ous positions in GM have caused certain difficulties with- Major Projects for GM op- Component, Vehicle in the economy of Uzbekistan. About erations in Uzbekistan, and Powertrain divi- 200,000 Uzbek workers were forced where GM and joint ven- sions, including Assistant to return home in 2014, and an addi- ture partner UzAvtosanoat Program Manager for the tional 150,000 workers returned in manufacture world-class Luxury Vehicle Line Team, the first eight months of 2015 (World vehicles and powertrains Program Administrator Bank). The number of registered for sale in Uzbekistan, for the Global L850 Uzbek workers in Russia has declined Russia, neighboring CIS Engine Team and Regional to 2.1 million as of August 2015—a 6.6% countries and other mar- Program Execution and decline since December 2014. This keting regions. Process Manager for GM will inevitably impact the econom- Prior to his current as- Powertrain in Europe. ic growth of the country. The gov- signment, Ben worked at Schneider holds a ernment of Uzbekistan is develop- GM China as a Regional Master of Business ing policies addressing these exter- Program Manager for the Administration degree in nal shocks and is working to provide Small Gas Engine pro- General Management and the private sector with more liberal- gram since June 2013, Finance from the Fuqua ization. Participants discussed stra- where he was responsible School of Business at Duke tegic projects, localization and import for ensuring the success- University. He also holds substitution models, including ben- ful launch of the SGE en- a Bachelor of Arts Degree efits and shortcomings, accelerated gine in China. Before mov- in Political Science from rate of devaluation of the Uzbek soum ing to China, Schneider Wayne State University, and how companies plan to address was the Program Manager where he majored in East it, along with the economics of long- responsible for launch- European studies. term investment, etc. #

WWW.AMCHAM.UZ 13 Committee News

CSR COMMITTEE NEWS “Ucell—territory of joy”— 12 children playgrounds all around the country!

Ucell Company is proud to announce families with children. Construction participants of the festivities were that currently there have been al- of playgrounds is performed in each children and their parents, who ready built and offered to children to Region in their own way. came to enjoy festivals. enjoy—eight modern and gorgeous This is the reason of special ap- Comments of Rodica Verbeniuc, playgrounds in the cities of Fergana, proach to the traditions which Ucell Corporate Communications Karshi, Bukhara, Samarkand, Jizzah, is relevant to each Region of the Director: “The great piece of luck Urgench, Nukus and Gulistan. Other country. From the first day of the for parents is to see the joyfulness 4 playgrounds will be gifted in the first playgrounds’ construction, resi- and admiration in the eyes of their decade of new 2016 year. dents of all 8 above mentioned cit- children. In this event I saw that chil- «Ucell Quvonch Makoni» is a so- ies actively participated in all pre- dren liked new playground and it will cial initiative, which is included in paring works. daily bring them good mood. We annual social economic support In all those cities, the festive should educate healthy and harmo- program developed by the compa- opening ceremonies took place in nious generation for the good of our ny. The project concept is to con- the presence of Ucell Management, country and strengthening the fam- struct 12 children playgrounds all mass media representatives, and ily values. along Uzbekistan! honored guests from khokimiyats That’s why Company continues its The playgrounds have been built and most important participants of social support. In parallel with mod- in densely populated places thus the event—children from local ma- ern and accessible communication provide accessibility to be used by hallas. Owing to good tradition, main service rendering, we also make our

14 Business Connections • 2’2015 AMCHAM UZBEKISTAN contribution into the development of the society”. As usual, fairy tales heroes from cartoons who adored by children, contributed magic atmosphere to the day. Children joyfully painted, danced, participated in various con- tests with prizes that were prepared by event planners. Musical acts performed by talented kids as well as pupils from music schools, will be definitely memorized by locals and event guests. «When I first heard that Ucell gifted children such sophisticated and bright playgrounds in Fergana and Karshi, I could not even imagine that next playground will be built in my mahalla. And here is the joy! Today our children are playing on territory of joy from Ucell. As a mother of two sons, now I may not worry for them as they will be playing here, not in the neighboring yard, our of my sight, so I feel calm», shared her joy MutabarkhonAlimova, resident of local mahalla in Bukhara. We would like to note that “Ucell- Quvonchmakoni” project is aimed at support of healthy and cultural education of children and safe and interesting pastime by families. To support healthy and cultural education of children in regions, our company is planning to build four more children playgrounds in other cities of Uzbekistan. Project is realized owing to general efforts and support by local authorities, in particular, regions and cities khokimiyats as well as the Ministry for Development Information Technologies and Communications of the Republic of Uzbekistan. Ucell expresses its gratitude for the support offered by the representatives of the Ministry for Development of Information Technologies and Communications of the Republic of Uzbekistan, regional and district khokimiyats, as well as people who welcomed our project. Also, Ucell gives special thanks to its construction project partner—Infranet Asia. #

WWW.AMCHAM.UZ 15 AmCham events

Mr. Jinghun Cho, World Bank Country Manager Tõnu Grünberg, Ucell and AmCham Vice-President

September Key facts from the presentation: and the Middle East & North Africa. He Monthly Meeting $$ Uzbek economy’s average growth is has worked on fiscal and public sec- 8 percent within the last decade tor management, monitoring and eval- The September Monthly Meeting fea- $$ public sector contributes at least uation reforms, e-governance, and in- tured a long awaited presentation 40 percent of GDP vestment lending issues, among oth- by World Bank Country Manager for $$ public sector represents 33 percent ers. Mr. Cho graduated from Yonsei Uzbekistan Mr. Junghun Cho. of employment University, Seoul, Korea, with BA in The presentation of Mr. Junghun $$ FDIs comprise 1 percent of GDP and Business Administration and holds Cho was entitled “Economic Develop in per capita terms. a MPA in International Development ment and World Bank Program in Mr. Junghun Cho is a South Korean (MPA/ID) from Harvard University, John Uzbekistan” and covered a number of national and an expert in public sec- F. Kennedy School of Government. important factors business need to tor management and governance, Over 60 participants of the event take into consideration whilst doing who has worked throughout Europe were mainly heads of international business in Uzbekistan. and Central Asia, Africa, South Asia companies—members of AmCham

Tatyana Bystrushkina, Asal Salikhova, Hotel Wyndham Tashkent, Bekhzod Teshabaev, Ragu Govender, Sasol AmCham Executive Director Middle East and India (PTY) Ltd

16 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Atabek Alimdjanov, Move One Relocation, Umid Khudayberdiev, INGO Uzbekistan, Hugo Minderhoud, Shiraz Poonja, Sitara International Ltd. AmCham Treasurer

October and operations of ADB within Uzbe Key facts about Asian Development Monthly Meeting kistan. Mr. Konishi told participants Bank: that Uzbekistan has been a member $$ As of 31 December 2014, ADB’s Mr. Takeo Konishi, ADB Country Director of ADB since 1995 with 0.677 per- shareholders consist of 48 develop- was the honorable speaker of the cent of shares as of 2014. Since 1995, ing and developed member countries AmCham October monthly meeting. ADB has provided more loans to within Asia and the Pacific region, and Mr. Konishi is a graduate of Pittsburg Uzbekistan than to any other devel- 19 members from outside the region. University, USA. His vast work experi- oping member country in the Central $$ ADB members who are also members ence spans the globe, ranging from Asia region. As of 31 December 2014, of OECD hold 64.6 % of total subscribed USA, Philippines, Japan, Tanzania and Uzbekistan has received 54 loans to- capital and 58.6 % of total voting rights. different positions within ADB, UNHCR taling $4.1 billion, including two pri- $$ The United States is the second and other organizations. vate sector loans totaling $225.0 mil- biggest shareholder of the Asian The presentation provided an lion, and $61.7 million in technical as- Development Bank (ADB) with 15.7% overview of the general activities sistance grants. of shares as of December 2014.

Timothy Bugansky, U.S. Embassy Takeo Konishi, ADB Country Director

WWW.AMCHAM.UZ 17 AmCham events

Angelina Abdullayeva, Train Consultancy H.E. Pamela Spratlen, Ambassador Plenipotentiary and Extraordinary of the United LLC with a guest States of America to Uzbekistan

To get a copy of the presentation Over 75 members of the Chamber Due to several reasons, like dis- of Mr. Takeo Konishi, ADB Country gathered in the DOME restaurant of tance between the countries and Director for Uzbekistan contact the Hotel Tashkent International to peculiarities of doing business in AmCham office. participate in the event. Uzbekistan, the United States is the Donald Nicholson II, AmCham 12th largest trade partner of Uzbekistan, Monthly Meeting President, in his introductory re- with $227.3 million in bilateral trade in on November 19, 2015 marks thanked the U.S Embassy 2014. Major U.S. investors in the coun- headed by Ambassador Spratlen try include Case New Holland, Coca- Ambassador Plenipotentiary and for support and fruitful coopera- Cola, and General Motors. Extraordinary of the United States of tion with the chamber. In 2017, the United States and Uz America to Uzbekistan Ms. Pamela “Thank you Don, for all these years bekistan will celebrate the 25th anni- Spratlen addressed AmCham in of dedication and enthusiasm that versary of the establishment of dip- Uzbekistan members at the November drives AmCham in Uzbekistan,” start- lomatic relations between the two 19th monthly meeting. ed Ambassador Spratlen. countries.

AmCham BOD members and guests Donald Nicholson II, AmCham President

18 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Central Asian countries to collaborate and prosper as a region. A question and answer session fol- lowed the speech. Ambassador Spratlen addressed several questions from the members of AmCham, including about the status of a bilateral tax agreement, on Uzbekistan’s business climate, and about big U.S. projects in the region. “The United States is a long-standing partner of Uzbekistan interest- ed in trade and investment, security and cultural cooperation, and foster- ing bilateral relationships,” concluded Ambassador Spratlen. All participants were invited to a cocktail reception after the formal Muhammadali Makhmudov, Legalmax Law Firm, Marina Galkina, U.S. Embassy part and had a chance to speak with Ambassador Spratlen.

2015 was remarkable in terms of U.S. Department of State Deputy Business Mixer high-level official visits and related Assistant Secretary Daniel Rosenblum on October 2, 2015 events. Assistant Secretary of Com participated in the American-Uzbekis merce Mr. Arun M. Kumar led an offi- tan Chamber of Commerce’s Annual Tashkent International School (TIS) host- cial delegation in June 2015. As a result, Business Forum in October 2015 and ed the September AmCham Business MFERIT, the Department of Commer delivered a speech. Mixer on the warm autumn evening of ce, and the U.S. Embassy agreed to And finally, the visit of Secretary October 2, 2015. Members value business host business round tables with rep- of State John Kerry to Samarkand mixers at TIS as exceptional networking resentatives of American business. on November 1 and the historic C5+1 events with great music, deliciously home- The round tables are supposed to be meetings in New York in September made food, good wine and of course at- held several times a year and serve and in Samarkand on November 1 mosphere of the campus which makes as a platform to foster public-private represent a significant step forward everyone want to come back to TIS again dialogue and attract investment to for the U.S.-Central Asia relationship and again. After season of summer leaves, Uzbekistan. and a sign of the growing capacity of over 50 representatives of business cir-

AmCham guests at Business Mixer David G. Henry, Director of TIS

WWW.AMCHAM.UZ 19 AmCham events

cles, international organizations and dip- lomatic corps attended to celebrate the beginning of the school year, and second part of the business year. “We thank TIS which joined AmCham in 1997, just when AmCham was officially registered, for loyalty, for being a member for so many years, for support and your hospitality”—stated Tatyana Bystrushkina, Executive Director, AmCham Uzbekistan. David G. Henry, Director of TIS, welcomed participants and presented a team of teachers, administration and marketing staff who jointly contribute to school’s success. “Graduates of the school are admitted to the best universities worldwide”—mentioned Henry. TIS Adil Onar, Wyndham Tashkent, Tatyana Bystrushkina, AmCham,TõnuGrünberg, Ucell started its 21st school year in Uzbekistan with around 500 students from around the world in preschool through grade 12. Director, thanked representatives of Ragu Govender, Head of Sasol Repre TIS is the only school in Uzbekistan au- Sasol Middle East and India (PTY) Ltd s e n t a t i v e o f fi c e. thorized to offer all three International for being active and supportive mem- “Oltin Yo’l GTL (Gas to Liquid), a Baccalaureate Program mes. bers of AmCham for many years, and joint project of Uzbekneftegaz and for hosting this amazing event. Sasol Middle East and India (PTY) Ltd, Business Mixer The event was held in the Turquaz will be one of the most advanced en- on October 23, 2015 Restaurant of the Wyndham Tashkent, ergy plants in the world, producing a well recognized worldwide hotel high quality fuels and other products Sasol Middle East and India (Pty) Ltd, chain. Newly arrived General Manager which will improve air quality, deliver a a Platinum member of AmCham in Mr. Adil Onar presented himself to par- cleaner transport future and support Uzbekistan, sponsored a business ticipants. growth and development”—stated Mr. networking event on October 23, 2015. “We welcome all members of James Vaughan, General Manager. In her opening remarks Tatyana AmCham and partners to enjoy to- Famous Uzbek music band “Zarb” Bystrushkina, AmCham Executive day’s evening with us”—stated Mr. played all evening. A special gift for

TõnuGrünberg, Ucell and AmCham Vice-President, Ragu Govender, Sasol Middle East James Vaughan, OltinYo`l GTL opens the and India (PTY) Ltd, James Vaughan, OltinYo`l GTL evening

20 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Ragu Govender, Sasol Middle East and AmCham members and guests at Business Mixer India (PTY) Ltd with a guest participants of the event from the of AmCham in Uzbekistan since 2008, in the USA, Germany, Switzerland company was a show by children’s and an active supporter of the busi- etc. At the event, guests were giv- musical center “Barkamol Avlod”. ness association. en the opportunity to tour the clin- AmCham in Uzbekistan is an associ- Founded in 1988, Sadaf Stoma ic. Sadaf Stomatologya is a chain of ation of international business that pro- tologya was the first private dental premium affordable dental services poses wide business contacts in the clinic in the USSR. The founder and around Tashkent. country and useful networking events co-owner of Sadaf Stomatologya After formal introductions, all par- for development of your business. is Mr. Farrukh Mirzaev, who wel- ticipants were invited to Arbat res- comed participants on the premis- taurant where a reception was per- Business Mixer es of a newly constructed five sto- fectly organized by personnel of Sa on November 25, 2015 ry state of the art dental clinic in daf Stomatologya. Over 50 mem- the center of Tashkent. The clinic is bers of AmCham in Uzbekistan, and The November Business Mixer sponsor equipped with modern equipment their guests, enjoyed the November was Sadaf Stomatologya—a member from the world—known producers Business Mixer.

November Business Mixer sponsored by Sadaf Stomotologiya Clinic tours

WWW.AMCHAM.UZ 21 WELCOME ABOARD

Join AmCham family

gistics planning, and multination- Execution of GM’s Product Portfo al event coordination. lio for Korea and Uzbekistan, lead- Andrew is married to Alicia ing to market share growth and Pashby, Primary School Music sustainability. Teacher at Tashkent International Before moving to Korea, School. They have a tyrannical Villarreal was Director of Planning Tuscan farm cat, Ponce, and enjoy and Program Management for GM travel, food, music, and all the cul- in Mexico, Central America and the tural experiences their internation- Caribbean. Hector has twenty-four al lifestyle offers. years of experience in the automotive industry in various functions including Manufacturing, Engineering, Planning, Program Management and Product Development. Andrew Maul He began his career at GM de Mexico in 1990 at the Ramos Newly arrived to Uzbekistan Engine Plan as a Manufacturing in August with his wife, Alicia, Engineer. Villarreal subsequent- Andrew Maul sits on the AmCham ly held various positions in both Editorial Board, and has taken Mexico and the United States in- over editing responsibilities for cluding Resident Manufacturing this publication. Engineer for the development of Currently, Andrew is pursuing a new engines at GM Powertrain in Master’s degree in Public Administ the U.S., Manufacturing Planning ration (MPA) through Penn State Manager in Mexico City, and University, and volunteers locally Industrial Engineering Manager for as a Programme Assistant with the Hector Villarreal all Mexico plants. UNESCO Tashkent Office. He also Villarreal later became Vehicle has an Under graduate degree in Hector Villarreal is currently the Line Director in charge of small Hospitality Management from the President and Managing Director cars where he led the development University of Central Florida. for GM operations in Uzbekistan, of product programs that enabled An experienced international where GM with joint venture part- GM de Mexico its market lead- logistics professional, Andrew has ner UzAvtosa noat manufacture ership position in 2003. He then worked in more than 30 coun- world-class vehicles for sale in transferred back to the U.S. on a tries throughout Europe, Africa, Central Asia, Russia and neighbor- professional development assign- and Asia. During his eight years ing CIS countries. ment in Global Product Planning. in Civil Service, he was assigned Prior to his current assign- Villarreal is a Mechanical Engi to Hampton Roads, Virginia; ment, Hector had served as Vice- neering graduate from the Monter Manama, Bahrain; and Livorno President of Planning and Program rey Institute of Technology in and Vicenza, Italy. His expertise Management at GM Korea since Mexico. He holds a Master’s de- and experience include port op- September 2012. He was re- gree in Industrial Engineering erations, transportation and lo- sponsible for the Planning and from the same institution, where

22 Business Connections • 2’2015 AMCHAM UZBEKISTAN he also served as Professor in the tality industry. Within the last Engineering Department. 14 years Mr. Adil Onar has served as General Manager in the recognized chains of the hotels like Holiday Inn and local hotels in different countries including Moldova, Turkey etc. Mr. Adil Onar graduated from Georgia Technological University, Institute for Hotel Management, Atlanta and worked and lived in Atlanta for many years holding different positions including F&B manager, operations manager in Timothy Bugansky hotels and spot clubs. Mr. Adil Onar is married and has Timothy Bugansky represents the 3 children. U.S. Embassy in Uzbekistan as an Otabek Muhammadiev ex officio, non-voting member on the AmCham Board of Directors. Otabek Muhammadiev is a General He is a State Department Foreign Director of a PwC Uzbekistan. Service officer covering economic He started his career in PwC and commercial matters, and he Uzbekistan 15 years ago by active- also assists with implementing U.S. ly being involved in audits of key Department of Commerce pro- local and multinational manufac- grams in Uzbekistan. turing, banking, telecommunica- He arrived in Uzbekistan in tions and public utilities compa- May 2015. His previous Foreign nies across Uzbekistan, Tajikistan Service postings were to Tijuana, and Russia. Mexico, and Islamabad, Pakistan. Starting from 2007, he joined He holds degrees from Kent State IFRS technical group in Price University and Ohio University. waterhouseCoopers in Moscow and was able to successfully con- Huseyin Bitmis sult a large number of PwC clients in Russia, Kazakhstan and CIS Joined the Coca-Cola system in countries. After 2 years of his ex- 1993 as Management Trainee at perience, he proceeded with IFRS Coca-Cola Icecek (Coca-Cola technical group in Almaty with fo- Bottler of ten countries in Central cus on Caucasus and Asia. Asia, Middle East and Turkey) and Before moving to Uzbekistan in held different positions in various 2012 as an assistant to the office functions in the organization in leader of PwC, he practiced audit 1993–2005 period. in Almaty with client portfolio con- In 2005 Huseyin moved to sisting of mainly oil, mining and to- the Coca-Cola Company, as bacco manufacturing clients. Operations Marketing Manager From July 2015, Otabek took for Uzbekistan, Turkmenistan and over the position of Uzbekistan of- Kyrgyzstan and is currently based fice leader. Adil Onar in Tashkent as Market Manager for He holds a Master`s Degree by Uzbekistan and Turkmenistan. Karshi State University, certified Mr. Adil Onar, has arrived to Tash Huseyin is responsible for imple ACCA fellowship as well as statu- kent in August in the capacity of mentation of marketing and com- tory office license by Ministry of General Manager of Wyndham mercial strategies in the markets Finance of Uzbekistan and Central Tashkent Hotel. Mr. Adil Onar and managing franchise relation- Bank of Uzbekistan. has huge experience in hospi- ships with the bottlers. #

WWW.AMCHAM.UZ 23 WELCOME ABOARD

New members

The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Mercury Service is an Event and Coca-Cola, one of the world’s most Travel Management Company oper- Agesa Grup Klima Insaat Mobilya valuable and recognizable brands, our ating in Uzbekistan, Kazakhstan and Hastane Malz. TIC. VE SAN. STIİ in Company’s portfolio features 20 bil- the United States which has its own Turkey since its establishment per- lion-dollar brands including, Diet Coke, resources based on 6 distinct di- forms the supply of equipment, in- Fanta, Sprite, Coca-Cola Zero, vita- rections: Conference Management, stallation and commissioning, main- minwater, POWERADE, Minute Maid, Travel Management, Chauffeured tenance, computer diagnostics, re- Simply, Georgia, Dasani, FUZE TEA and Transportation Services, Restaurant and pair, supply of spare parts for chillers, Del Valle. Globally, we are the No. 1 pro- Outside Catering Services, Conference central air conditioning systems, VRF, vider of sparkling beverages, ready-to- and Office Equipment Rentals and cold rooms, heating systems, pumps, drink coffees, and juices and juice drinks. Arrangement of Incentive Programs. automatic control systems and as well Through the world’s largest beverage Mercury Service has extensive ex- as other industrial type equipment. distribution system, consumers in more perience in planning, developing and Our company is an authorized deal- than 200 countries enjoy our beverages delivering events ranging from meet- er and distributor of CARRIER, STULZ at a rate of 1.9 billion servings a day. With ings and seminars, to large-scale do- UNTES-RHOSS, ARKEN, TESCOM and an enduring commitment to building mestic and international conferences. TOSHIBA. sustainable communities, our Company The area of expertise of the company Also we have a highly qualified ad- is focused on initiatives that reduce our lies specifically in the area of Event ministrative and technical staff. We al- environmental footprint, support ac- and Travel Management services. ways try to use new technologies, in- tive, healthy living, create a safe, inclu- With our own resource base (vehicles, creasing the level of knowledge and sive work environment for our associ- equipment, tools etc.), each division of teaching staff, and thereby provide ates, and enhance the economic de- Mercury Service™ ensures the high qual- the best, quality work. velopment of the communities where ity and promptitude of provided servic- we operate. Together with our bottling es. These valuable assets complement- Our services: partners, we rank among the world’s top ed with the skilled and professional team $$ installation of industrial machinery 10 private employers with more than of Mercury Service™ allows us to con- $$ Chillers 700,000 system associates. duct several events in various regions of $$ Central air conditioners the country simultaneously. $$ Equipment for automatic air control Head of Representative: $$ Automatic control system Huseyin Bitmis Head of the company: $$ Diesel generators Address: Inkonel Business Center, Murod Makhmudov $$ Uninterruptible Power Supply 75, Mustakillik Av. Address: Eurasia Business Centre, $$ Gas turbine equipment Phone: +998 (97) 775‑2560 1, Niyozbek Yoli street $$ Assembling of cold rooms and Email: [email protected] Phone: +998 (71) 234‑9887 equipment Website: Email: [email protected] $$ The equipment for drying fruits and www.cocacolacompany.com Website: www.mercuryservice.uz vegetables

24 Business Connections • 2’2015 AMCHAM UZBEKISTAN

$$ Launching systems and commis- in Uzbekistan. The main activities are ganization has undergone rebrand- sioning the provision of fixed-line services, ing. $$ Services on technical supervision broadband, telephone and TV prod- The new multicolored logo com- $$ Periodical technical service ucts and services as well as networked prises of letter N (the first letter on $$ Delivery of spare parts for the above IT services. Nano) which is made up of three el- equipment The company sells products and lipses of different colors (blue, light $$ Installation, commissioning, repair, services to consumers, from small to blue and light green) that signify maintenance. large sized enterprises and the pub- the three main services (Internet, lic sector. IPTV and IP telephony) that the Head of the company: Relatively young organization but company provides, whereas the Murat Aksahin has managed to prove itself as a re- other two colors in the intersection Address: 37, Shohjahon Str. liable company among the custom- of ellipses (navy-blues and green) Phone: +998 (71) 280‑6243 ers providing outstanding customer mean two additional services (da- Email: [email protected] service with one-stop communica- ta transfer and network mainte- Website: agessa.uz tion solutions for businesses. One nance). of the core competitive advantages that the company enjoys is the new Head of the company: technologies and software it uses Evgeniy Vishnevskiy that guarantee the constant inter- Address: 58-A, Abdulla Kadiriy Str. net speed and customer orienta- Tashkent, Uzbekistan tion is of paramount importance to Phone: +998 (71) 205‑0000 the company. Fax: +998 (71) 205‑0155 Nano Telecom is one of the leading The company was founded in Email: [email protected] communications services companies early 2012. In the year 2015, the or- Website: www.nano.uz #

WWW.AMCHAM.UZ 25 Legislation

Recent changes in legislation In this issue, we have summarized notable recent amendments in the Uzbek legislation

Changes to legislation ty or individual entrepreneur to the ap- foundation documents has been abol- based on Law 391 propriate licensing authority to receive ished for the following purposes: A number of legislative changes were the license has been abolished. $$ Obtaining accreditation of enti- introduced by virtue of the Law of the Moreover, the term for issuing de- ties entitled to perform conformance Republic of Uzbekistan No. ЗРУ-391 of cision by the licensing authority or evaluation based on the Law “On con- 20 August 2015 (Law 391). Below we court on reinstatement of suspend- formance evaluation” No. ЗРУ-354 of have summarized some of the most ed license has been reduced to 3 days 4 October 2013; notable ones. (formerly 10 days) from the date of $$ Registration of participants of free confirmation by the licensee on elim- economic zone under the Law “On free Law “On accumulative pension ination of the shortfalls that caused economic zones” No. 220-I of 25 April system” No. 702-II of 2 December the suspension. 1996; 2004 $$ Receiving preliminary approval of According to the amended Article 7, le- Law “On contractual and legal basis antimonopoly authority for creation of gal entities and individuals are granted for activities of business entities” associations of economic entities, their a right to submit the electronic applica- No. 670-I of 29 August 1998 merger, conjunction and for acquisi- tion for registration of citizens in accu- Requirement for certification of com- tion of shares in an authorized fund (au- mulative pension system, as well as to mercial contracts exceeding the val- thorized capital) in accordance with open individual accumulative pension ue of 200 minimum monthly wages the Law “On competition” No. ЗРУ-319 accounts through the Integrated Portal (MMW) by in-house or third-party law- of 6 January 2012. of Interactive State Services. yers has been abolished. Amendments to the Tax Code Law “On licensing of certain types of Requirement to provide copies Article 91 of the Tax Code is amended activities” No. 71-II of 25 May 2000 of foundation documents to include specific wording that statu- Requirement to submit copy of certif- In accordance with the Law 391, the tory tax audit cannot cover period of icate on state registration of legal enti- requirement for provision of copies of more than five calendar years of taxpayer’s activity preceding the year of commencement of the tax audit. According to the amended Article 108 of the Tax Code, when a taxpayer commits several tax offenses financial sanctions are applied on an array of tax offenses by absorption of less severe fine by more severe one or by adding the fines for individual offences. In any event, the final amount of the fine for numerous offences shall not exceed the amount of the maximum fine en- visaged for the most severe offense.

Amendments to the Criminal Code Law 391 introduced new chapter to the Criminal Code envisaging liability for of-

26 Business Connections • 2’2015 AMCHAM UZBEKISTAN fences related to hampering of and il- legal intervention into entrepreneurial activity. Furthermore, in accordance with the amended Article 184 of the Criminal Code on evasion from payment of taxes and other obligatory pay- ments, first time offenders are relieved from charges if they compensate the damage to the state budget (including late payment interest and other financial sanctions) within thirty days from the date of the relevant decision of the tax authority.

Increase of the minimum monthly wage In accordance with the Presidential Decree No. УП-4751 of 26 August 2015, effective from 1 September 2015 the MMW is increased from UZS 118,400 to UZS 130,240. MMW affects, among others, calculation of salaries in public sector, retirement pensions, statutory fines and duties etc.

Resolution “On further measures on improvement of 30% or USD 2 per 1 kg whichever is come and capital signed on 8 July 2013 foreign economic activity of greater; came into force on 19 September 2015. the Republic of Uzbekistan” $$ rods and profiles from refined cop- No. 2388 of 13 August 2015 per—30% (no customs duty applied Tax benefits for Effective 1 September 2015 Presidential previously); commercial banks Resolution No. ПП-2388 of 13 August $$ communication cables, including A joint resolution of the Ministry of 2015 has introduced a number of for modern wired communication sys- Finance, Central Bank and the State Tax amendments to the excise tax rates tems—30% (no customs duty applied Committee No. 2716 of 29 September for imported goods. previously). 2015 introduced a Regulation on appli- Some of the notable ones include: cation of income tax incentive by com- $$ Polyethylene, with unit weight less The Convention on avoidance mercial banks in relations to the share than 0.94—10% (no excise tax applied of the double taxation of long-term investment financing in previously); between Uzbekistan and the credit portfolio. $$ Lamps electric and lamps for exter- Spain has been enforced Thus, in accordance with the Regu nal lighting—10% (no excise tax applied The Convention between the Republic lation, commercial banks will pay cor- previously); of Uzbekistan and the Kingdom of Spain porate income tax at differentiated $$ Assembly structures for construction on avoidance of double taxation and rates through 1 January 2020 as dem- works from ferrous materials—10%, etc. prevention of evasion of taxes on in- onstrated below: In addition the Resolution amended the rates of import customs duty Share of long-term investment financing Applicable CIT rate, for several goods, including: in credit portfolio in % of the standard rate $$ pipes, tubes and hoses from vinyl chloride polymers, not reinforced nor 35–40% 80 combined with other materials, without fittings—the rate increased three- 40–50% 75 fold to 30% or USD 2 per 1 kg whichever is greater; $$ plastic fittings—similar to the above Above 50% 70 item the rate increased threefold to

WWW.AMCHAM.UZ 27 AMCHAM UZBEKISTAN

New Regulation on business trip expenses New Regulation on overseas business trips was approved by virtue of the Order of the Ministry of Finance No. 2730 of 19 November 2015. The most notable amendments are provided below: $$ In case of air transportation, if the date of arrival to the foreign country is different from the day of departure from the airport in Uzbekistan (as per air ticket), daily subsistence allowance for the day of departure is not paid. $$ Similarly, if the date of arrival to Uzbekistan is different from the date of departure from the foreign airport (as per air ticket), daily subsistence allowance for the day of arrival is not paid. $$ If travel advance is provided in US dollars while expenses are incurred in other currencies, the expense report is accepted at the exchange rate supported by relevant currency exchange documents from the desti- nation country. Republic of Brazil on economic and Michael Ahern, trade cooperation signed on 28 May Partner, Tax List of goods exempt 2009 came into force on 17 August [email protected] from customs duty and 2015. As a result, Brazil has been includ- VAT is expanded ed into the list of countries that enjoy Otabek Muhammadiyev, According to the joint Resolution of the most-favoured nation trade regime. Director, Assurance the Ministry of Economy, Ministry of NOTE: Most-favoured nation re- [email protected] Finance, Ministry of Foreign Economic gime provides certain customs bene- Relations, Investments and Trade and fits. For instance, import customs du- Jamshid Juraev, State Customs Committee No. 2436‑4 ty is applied at standard rate for goods Senior Manager, Tax of 24 November 2015, the list of techno- originating from the concerned na- [email protected] logical equipment exempt from import tions, while goods originated from customs duty and VAT is supplemented countries without such status are Audit Organization with few new positions as follows: subject to double the standard rate “PricewaterhouseCoopers” LLC $$ computers and servers compris- of customs duty. 88-A, Mustaqillik prospekt, ing telecommunication networks and Mirzo-Ulugbek district, equipment for internet access provi- Let’s talk Tashkent 100000, Uzbekistan sion, routers, gateways, modems, etc. For a deeper discussion of how this is- T: +998 (71) 120-6101 (excluding personal computers weigh- sue might affect your business, please F: +998 (71) 120-6645 ing less than 10 kg); contact: www.pwc.com/uz # $$ base station equipment, antennas; $$ TV cameras, digital cameras. © 2015 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), Agreement between 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 Uzbekistan and Brazil not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of on economic and trade 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 cooperation came into force firm nor can it control the exercise of another member firm’s professional judgment or bind anoth- The Agreement between the Govern er 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. ment of the Republic of Uzbekistan Before taking (or not taking) any action, readers should seek professional advice specific to their sit- and Government of the Federative uation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.

28 Business Connections • 2’2015 AMCHAM UZBEKISTAN

In Memory of It is with great sadness and regret that we report the death of Bharat Shah, a long standing member Bharat Shah of AmCham and a leading member of the pharmaceutical sector. AmCham will miss his presence and we extend our deepest sympathies to his family.

WWW.AMCHAM.UZ 29 Legislation

Uzbekistan: Review of macroeconomic indicators, 2015

Macroeconomic indicators January-June 2015

Compared to the Billion SUM same period of the previous year

Gross domestic product 72,172.8 108.1

Industrial output 40,791.1 108.1

Agricultural production 17,569.0 106.5

Investment in fixed assets 18,069.9 109.8

Construction work 11,751.8 118.0

Transportation of goods, mln tn 629.6 104.3

Freight turnover, mln tn-km 25,064.3 104.1

Passengers, mln 3522.3 103.3

Passenger turnover, mln pass-km 48,137.0 105.3

Retail turnover 31,732.7 114.8

Services, total 40,247.0 113.1

January-June 2015

The gross domestic product (GDP) of Uzbekistan in January–June 2015 amounted to 72,172.8 billion SUM, or grew by 8.1%. According to the State Statistics Committee, the growth of industrial production made 8.1% and reached to 40,791.1 billion SUM. In the reporting period, the volume of agricultural production increased by 6.5%—up to 17,569.0 billion SUM. Investment in fixed assets reached 18,069.9 billion SUM or increased by 9.8%. Retail trade turnover in Uzbekistan in the first half of 2015 amounted to 31,732.7 billion SUM that is higher than the indicator of the same period of the previous year for 14.8%.

For more information contact AFS office:

Phone: +998 (71) 234‑9611; +998 (71) 120‑9611 Email : [email protected] Web site: www.afs-research.com

30 Business Connections • 2’2015 AMCHAM UZBEKISTAN

APPLICATION FOR CHAMBER MEMBERSHIP

Chamber Membership Categories

Membership Category Qualifications Annual Dues

Platinum Annual worldwide revenues of $100m and USD 4,000 above Gold Annual worldwide revenues less than $100m USD 3,000 and more than $5m Annual worldwide revenues less than $5m USD 1,500 Voting Members Voting

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

Non-resident Organization with no local representation/ USD 1,500 Non-voting members Non-voting registration in Uzbekistan

All categories give the member access to a full range of services and benefits including business development 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 Dues G Platinum USD 4,000 G Bronze USD 600 G Gold USD 3,000 G Non-profit USD 500 G Gold USD 1,500 G Non-resident USD 1,500 G Silver USD 1,000

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

Name of company

Address

Tel. Fax E-mail

Head of firm in Uzbekistan:

Name Title / Position

WWW.AMCHAM.UZ 31 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 offices.

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– 1,000,000 G 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.

32 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Carlsberg Uzbekistan Vivek Sharma, 140‑9999 Membership List Colibri Law Firm Zafar Malikov, 120‑4778 Deloitte va Touche LLC Erkin Ayupov, 120‑4445 “Grata” Law Firm Bakhodir Jabborov, 233‑2623 Ingo-Uzbekistan Insurance Company Rustam Turaev, 150‑9999 JV Indorama Kokand Textile LLC Deepak Raina, 253‑8325 PLATINUM MEMBER OLSOFT JP Morgan Chase Bank N.A. BAT Uzbekistan Evgeniy Olevskiy, 256‑3291 Uzbekistan David Le Blond, 120‑5555 Po`latqurilma JSC Tokhir Sultanov, 140‑3770 CNH Industrial Azad Sharapov, 254‑1409 KDB Bank Uzbekistan Paul Wakefield, 120‑7450 SEAF-SME Investment Injoo Kim, 120‑8000/01 Coca-Cola Mes. Paz. Dan. San. Ve. Management Ram Dis Ticaret Tic. A.S. Donald Nicholson II, 129‑3040 Lyubov Belokon, 252‑6779 Huseyin Bitmis Transcontinental JV LLC SEP Nestle Uzbekistan Ernst & Young Janna Popkova, 120‑3838 Sergey Tratsevskiy, 140‑0600 Anvar Azamov, 140‑6482 Train Consultancy LLC General Motors Operations Mashrab Saidov, 235‑0424 BRONZE MEMBER Uzbekistan WCH Service bureau AFS-Research Company Hector Villarreal, 280‑6433 Alexander Tulupov, 254‑3621 Aleksey Kirilov, 234‑9611/12 PwC Agesa Grup Otabek Muhammadiev, 120‑6101 SILVER MEMBER Murat Aksahin, 280‑6243 Sasol Synfuels International Ansher Investment LLP Ahlers International James Vaughan, 113‑4080 Nozim Kabilov, 268‑9970 Diana Tomena, 252‑7120 Ucell Air Astana in Uzbekistan AMBiT Tõnu Grünberg, 180‑0000 Yevgeniy Krutov, 140‑3002 Hikmat Abdurakhmanov, 269‑9339 Bechtel International Systems Ancora Consulting Service GOLD MEMBER David Bjorkbom, 120‑4425 Oleg Daminov, 150‑4436 AKTE LLC Hugo Minderhoud, 252‑2402 Avialeasing Aviation Company Igor Smirnov, 120‑4950 ”Bo’stonlig Sut” JV Jamilya Askarova, 120‑4965 Central Asia Seed Company Azizkhan Akhmedov, 291‑0073 Colgate-Palmolive Jacques Martin, 252‑3014 Daewoo Pack Co, Ltd. Jang Dae Won, 295‑0573 Hotel International Tashkent Bekhzod Zufarov, 120‑7000 Hotel Radisson Blu Tashkent Andersen Peter, 120‑4900 Hotel Wyndham Tashkent Adil Onar, 120‑3700 InterConcepts Inc. Charles L. Rudd, 239‑1491

WWW.AMCHAM.UZ 33 AMCHAM UZBEKISTAN

Neftgazkipavtomatika Tojiev Ruzimurat, 268‑2401 Oasis FES LLC Dale Henry, 237‑5315 Ramada Hotel Dinesh Upreti, 140‑6000 SIS Travel Sergey Saakov, 252‑7419 Sitara International Ltd. Shiraz Poonja, 281‑4148 Stomatologiya Budushego Zafar Usmanov, 232‑2022 Sushen Medicamentos Pvt Ltd. Parishuram Marathe, 150‑0214 Wakefield Inspection Service Ltd. Philip Hesketh, 273‑1071 Winncom Technologies Corp. Leonid Myatejnikov, 150‑3939

NON-PROFIT NON-VOTING Anglesey Food Holos Ltd. The British School of Tashkent Zafar Khashimov, 140‑1414 Khalmurat Manaev, 252‑7185/86 David Kirkham, 262‑6020 Atlantik Trade HR Capital Consulting (HRC) Canadian Consulate Farkhad Yusupov, 140‑4868 Aziz Kurbanov, 150‑4230 Alexander Antonov, 120‑7270 Baker Tilly Tashkent Iberiasia Tour JETRO Guzal Islamova, 150‑1512 Farkhod Sabirov, 255‑4990 Manabu Shimoyashiro, 120‑5591 Carolina Technologies, Ltd. Imeon Logistics Group Ltd. OSCE Alexander Veksler, 281‑4362/63/64 David O`Connor, 150‑1856 György Szabo, 140‑0468/69/70 Compass Consulting International Certificate System Tashkent International School Ulugbek Hojiahmedov, 255‑4693 Group LLC David Henry, 291‑9670/71/72 Crowe Horwath Int. (Audit-As) Dr. Shervin Mirzadeh, 236‑2341 Tashkent International Clinic Vera Bell, 241‑4618 “Isakov and Partners” Law Firm Matthew Kuschel, 291‑0142 Dentons CA Limited Yokubjon Isakov, 351‑1232 Marla Valdez, 120‑6946 SE “Ishan Group” HONORARY MEMBERS Education Standard Consulting Khwaja Zia Ahmed, 262‑0012 ADB Group KN Ibrakom FZco Takeo Konishi, 140‑1920 Elena Sergeeva, 268‑7544 Ravshan Fazilov, 254‑0019 IMF Resident Elan Express LLC Legalmax Law Firm Representative Office Babur Asuraliev, 150‑2550 Mukhammadali Makhmudov, Galina Kostina, 233‑4243 Eurobasis LLC 212‑4732 UNDP Dr. Taymurot Yunusmetov, 254‑4563 Marvel Juice Stefan Priesner, 120‑3450 FAYSEL Construction Logistics Maksud Khudayberdiev, 234‑2671 World Bank Country Office / IFC Yuksel Adana, 255‑5216 Mega Prodex LLC Junghun Cho, 238‑5950 FMN Logistics Normukhamedov M., 246‑1611 Zunnun Yuldashev, 129‑0055 Mercury Service Events & NON-RESIDENT Fraser Avtoyuklovchi Servis Travel Management LLC Dr. Gregory Gleason Alisher Salikhov, 150‑1919 Murod Makhmudov, 235‑7771 University of New Mexico Globalink Logistics Group M&M Militzer & Muench +49 (8821) 750‑2526 Khalid Farooq, 129‑9900 Uzbekistan National Bank of Pakistan Global Translation Service Khurshid Kasimdjanov, 140‑0003 Dildora Yuldasheva, 237‑1991 Ruslan Daminov, 914‑7627 Move One Logistics Gosselin World Wide Moving Atabek Alimdjanov, 235‑1843 INDIVIDUAL Pim Sterckx, 186‑6233 Namuna-Diyor Private Scientific Andrew Kemp Maul, 903‑5684 Grant Thornton Industrial Enterprise Angie Cairns Kuschel, 930‑0261 Nematulla Karimov, 234‑4632 Furkat Salimov, 255‑3278 Ilkhom Khodjakulov

34 Business Connections • 2’2015 AMCHAM UZBEKISTAN

Tax & Accounting Committee Chairs of AmCham Committees in 2015–2016

Guzal Islamova

Trade & Investment Committee Corporate & Social Responsibility Committee

Benjamin Schneider Donald Nicholson II Rodica Verbeniuc

Agriculture and Food Tourism & Hospitality Membership Processing committee Industry Committee Committee

Dale Henry Johanna Wohlmeyer Otabek Muhammadiyev

WWW.AMCHAM.UZ 35 AMCHAM UZBEKISTAN

Executive Director: Tatyana Bystrushkina

Editorial Board: Donald Nicholson II Hugo Minderhoud Tatyana Bystrushkina Lyubov Belokon Andrew Kemp Maul President: Vice-President: Treasurer: Alexey Kirilov Donald Nicholson II Tõnu Grünberg Hugo Minderhoud Lola Shaisla mo va SEAF-SME Ucell AKTE LLC Julia Bakhmatch Investment Management Contributing Authors: Donald Nicholson II, Tatyana Bystrushkina, Julia Bakhmatch, Rano Kosimova, Dale Henry, Leon de Kock, Nigyar Huseynzade

Address: 4-B, Afrosiab Str., Tashkent, 100031, Uzbekistan James Vaughan Otabek Muhammadiev David Le Blond Phone: +998 (71) 140‑0877 Sasol Synfuels PwC UzBAT Fax: +998 (71) 140‑0877 International Email: [email protected] Website: www.amcham.uz The AmCham Uzbekistan and authors declare that they have compiled this document care- fully and to the best of their knowledge. However, no warran- ty or representation is made to the accuracy of completeness of the information contained in this document. The AmCham Mirpayoz Mirsaatov Hector Villarreal Huseyin Bitmis Uzbekistan and authors assume OLSOFT General Motors, Coca-Cola Company no liability whatsoever for any Uzbekistan Uzbekistan damage resulting from the use of this document or its contents. This bi-annual free-of-charge advertising bulletin is not considered to be a subject of mass communication and may be dis- tributed free of charge without registration among limited number of entities and individuals.

Designer: K. Abidjanov

Printed by Print Media Tatyana Bystrushkina Timothy Bugansky 32, Uzbekistan Ovozi Str., Tashkent Executive Director Ex-Officio BOD member, Phone: +998 (71) 233‑0321 U.S. Embassy in Fax: + 998 (71) 232‑2566 Tashkent

36 Business Connections • 2’2015