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Uzbekistan bans entry of several types of foreign wagons

Ozbekiston Temir Yollari (“Uzbekistan Railways”) banned the entry of covered wagons, glacier and thermos wagons of all railway administrations, except from cars attributed to local administration. Previously, Kazakhstan banned the entry of foreign grain, which led to a complaint to the ECE on anti-competitive behavior of local railways, for which ECE launched an investigation.

The ban of entry for foreign wagons in Uzbekistan, was reported by Russian Railways, with reference to the appeal of the company. The Directorate of Railway Transport Council of CIS ( CSJT ) was notified on January 28.

The ban is introduced for an indefinite period until cancelation. Last year at this same time, Uzbekistan introduced conventional prohibition on the receipt and transmission of empty box cars, grain cars and flatcars between Uzbekistan  and Kazakhstan, with the exception attributed to "Kazakhstan Temir Zholy " ( KTZ ).

Railway Administration is eligible to issue conventional prohibitions, their treatment meets CSJT requirements without analyzing the reasons for its introduction. Often, a country inroducing a ban risks attracting suspicion of abuse of this mechanism for protectionist purposes.

Such bans were introduced in CIS before: for example, from 5 to 15 January the ban on reception and transmission of empty grain cars of all railway administrations, except for Kazakh was active. Then the ban was challenged by operators of the grain market, who pointed out that the ban was placed citing the lack of applications for loading grain, however KTZ took carload costly assistance from Latvia and Belarus.

In particular, one of the participants of the market, "Technotrans” appealed to the ECE with evidence of violation of the general rules of competition by KTZ expressed by the introduction of the ban. Department of anti-monopoly regulation ECE, took up this statement on January 28 and ordered KTZ to provide a list of documents required for the investigation and enforcement of common rules for cross-border competition in the markets. KTZ is required to provide the documents until February 15. 

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