Business news from Ukraine

EU may impose sanctions on dozens of companies from China, Iran, Kazakhstan and Uzbekistan

The EU is considering imposing sanctions against dozens of companies from China, Iran, Kazakhstan and Uzbekistan that cooperate with Russia, Reuters reports.
The agency cites diplomatic sources familiar with the European Commission’s draft proposals. Inclusion of these companies in the “black list” is possible within the framework of the prepared 11 package of anti-Russian sanctions.
In late April, Assistant Secretary of the U.S. Treasury Elizabeth Rosenberg during a visit to Kazakhstan warned of the growing risks of secondary sanctions against Kazakh companies and banks that help Russia evade Western sanctions imposed in response to the full-scale war against Ukraine unleashed by Russia.

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Siemens to build new power plants in Uzbekistan

On May 2, on the sidelines of the Uzbek-German business forum, Siemens Energy signed agreements on two projects with Thermal Power Plants JSC. It is specified that the company will be involved in the implementation of heat and electricity cogeneration technologies in the country.
It is planned to install four energy-efficient gas turbines with a capacity of 54 MW each. Two of them will be placed in the heating boiler house No. 3 in Bukhara and at the Mubarekskaya CHPP.
The plants will generate 1.7 million kWh of electricity and 1.5 Gcal of heat annually. The plants will employ 80 people for their maintenance. The total cost of the projects is EUR 72 million.
In addition, Siemens will build several new power plants.
With its support, it is planned to build a thermal power plant in Surkhandarya and launch it by the end of 2026. The German company will participate in the construction of a thermal power plant in the Navoi chemical cluster, as well as in the creation of wind and solar power plants with a total capacity of 1000 MW.

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Main buyers of Ukrainian frozen cattle meat in first quarter were China, Azerbaijan and Uzbekistan

In January-March 2023, Ukraine exported 5.3 thousand tons of frozen cattle meat worth $20.6 million.
This is evidenced by the data of the State Customs Service.
The main buyers of Ukrainian frozen cattle meat during the first quarter of this year were China (69%), Azerbaijan (9.8%) and Uzbekistan (7.3%).
Imports of frozen cattle meat during the first three months of 2023 amounted to 369 tons. In monetary terms, it cost Ukraine $1.6 million.
Most of all, Ukraine bought frozen cattle meat in Lithuania (45.1%), Brazil (40.6%) and Austria (13.4%).
As reported, global beef prices rose in March.

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Japan will assist Uzbekistan in development of fruit and vegetable production

In 2023-2028, Uzbekistan will implement a project to create a value chain in the fruit and vegetable industry with the participation of the Japan International Cooperation Agency (JICA).
The total cost of the project is $323 million, including:
– a loan from the Japan International Cooperation Agency (JICA) – $200 million;
– the contribution of the Republic of Uzbekistan to the Project in the form of value added tax coverage and customs duty exemptions – $58.3 million;
– contribution of Project participants (loan recipients – Project initiators) – $64.8 million.
The project is being implemented in all regions of Uzbekistan, and its implementation period is 6 years – from 2023 to 2028.
The International Center for Strategic Development and Research in Food and Agriculture under the Ministry of Agriculture of Uzbekistan has been appointed as the executive body responsible for the timely and complete implementation, coordination and management of the project.

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Uzbekistan and Kazakhstan set up joint foreign trade company

Uzbekistan and Kazakhstan have set up a joint foreign trade company to increase bilateral trade and enter the markets of third countries.
The founders of the export-import enterprise were the QazTrade Trade Policy Development Center and the UzTrade company.
The foreign trade company will focus on conducting market research and competitive analysis of products of large enterprises of the two countries, developing proposals for placing orders for the production of finished goods, optimizing and coordinating mutual trade processes, assisting businesses in certification and promotion of goods for export.
“At the initial stage, we plan to purchase fruit and vegetable products from Uzbekistan to meet the needs of our domestic market. In addition, we will help sell Kazakh flour products in Uzbekistan with the possibility of further export to Afghanistan. We have agreed with the Uzbek side to provide preferences for logistics costs,” said Nuraly Bukeykhanov, Head of the Trade Policy Development Center.
In 2022, trade between Kazakhstan and Uzbekistan reached $5 billion, up 29.8% year-on-year ($3.8 billion).
The volume of exports of Kazakhstani goods increased by 33% to $3.7 billion. The growth in exports was mainly due to an increase in supplies of ore and copper concentrate (up 4.8 times), wheat (up 32.3%), cars (up 83.7%), sunflower oil (up 97.2 times), fresh and chilled beef (up 4.1 times), and raw aluminum (up 70.4%).
In 2022, imports to Kazakhstan from Uzbekistan increased by 21.4% to $ 1.3 billion. Kazakhstan mainly buys car bodies, spark-ignition internal combustion engines, grapes, flat-rolled unalloyed steel, lead ores and concentrates, building bricks, floor blocks and similar ceramic products, parts and accessories for cars and tractors, and ethylene polymers.
Source.

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Uzbekistan plans to receive 7 million foreign tourists this year

Uzbekistan expects the inbound tourist flow into the country to grow by 34% in 2023, said Shukhrat Isakulov, advisor to the director of the UN World Tourism Organization (UNWTO) Silk Road office.
“If in 2016 2.2 million tourists visited Uzbekistan, in 2019 – 6.7 million. Of course, the pandemic has affected tourism, but since last year there is already a steady trend to increase the flow of tourists. Last year 5.2 million tourists visited Uzbekistan. This year, we plan to attract 7 million and exceed pre-pandemic indicators,” he told a press conference on Friday.

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