- I’m glad to note positive dynamics in economic relations between our countries, increase of commodity turnover and the number of Russian companies in Uzbek market, diversification of economy areas which involve Russian business.

As the head of trade representative office I can say that Uzbekistan is one of the main trade partners in the Central Asian region. Uzbekistan stands 4th in Russia’s total turnover with CIS countries – its share is 4%. Russia’s share in Uzbekistan’s foreign trade made 30% in 2007.

According to State Statistics Committee of Uzbekistan the rise in bilateral trade in 2007 exceeded 45% that is more than US$4 billion.

The development of mutual investments is also worth mentioning. Today 688 joint ventures and companies with Russian capital operate in Uzbekistan. The representative offices of 145 Russian companies obtained accreditation in the republic. The number of joint ventures in Russia is also growing and there are 300 Uzbek companies working now.

The growth of bilateral trade is mostly conditioned by the cooperation in fuel-energy complex, power industry, agricultural sector, engineering industry, aircraft construction space researches. I consider cooperation in these sectors most perspective.

For example: Russian companies “Zarubezhneftegaz” Close Corporation (Gazprom’s subsidiary), “LUKOIL,” “Stroytransgaz” Public Corporation, “Soyuznegtegaz” successfully invest in fuel-energy complex.

“LUKOIL Oversis Ltd” and “Uzbekneftegaz” launched Hayzak gas field in Buhara region, Uzbekistan. The investments in such a huge project make up about US$2 billion.

Russia’s 70 regions trade with Uzbekistan. The most active of them are Sverdlovskiy, Astrahanskiy, Orenburgskiy, Voronezhskiy, Tchelyabinskiy, Samarskiy regions, Moscow and St Petersburg cities and Altai. These regions share 50% of total turnover with Uzbekistan. The most active cooperation is in gas-and-oil industry, energy, machinery, agriculture, and medicine.

- That’s true; information technology today along with fuel-energy complex is one of the most developing sectors of mutual cooperation.

The investment volume of Mobile Tele Systems public corporation (MTS) in Uzbekistan economy made up US$250 million. The Russian “VympelCom” also intends to invest US$150 million into cellular communications in Uzbekistan.

Russian Eventis Telecom Investment Company has invested US$5 million in internet services in Uzbekistan in 2007.

Cooperation in other sectors is also intensifying.

A vivid example of Russian business involvement in Uzbekistan’s economy is Perm Chemical Company LTD, which offered to buy 49% of Navoi Azot public company’s stock at starting cost US$60 million.

In 2008 the Russian West Ural Machinery Building Concern and Chinese CITIC State Company are to build potash fertilizer factory in Uzbekistan worth US$123.7 mln.

The Russian JSC EUROCEMENT Group holding took up 75.5% of “Ahangarancement” shares in august 2006 and assets of Sergeli plant of construction materials, Tashkent.

The total amount of investments in 2006-2007 constituted over US$ 3.5 million. The means are committed to purchase new equipment, repair and marketing. In 2008-2011 it is projected to commit US$11.5 to “Ahangarancement” Open Society modernization. According to “Uzpromstoymaterialy” Incorporated, the investment program will allow to increase factory capacities by 200 thousand tons of cement a year and reach the level of 1.936 million tons till the end of 2011.

- I agree, the agriculture is really perspective sector and cooperation in this sphere steadily develops. The “Agromashholding” Open Society and the Government of Uzbekistan have signed an agreement specifying strengthening and development of technical basis of the republic by implementing of projects on creation of new competitive kinds of agricultural machinery. Today there are over 2000 new Volgograd tractors in Uzbekistan.

The Russian “Baltimore” Holding, which major activity is agricultural products processing, has presented in 2007 its US$3.63 million offer at the tender on sale of 57.7 % of state assets of “Djizak plastic” Open Society, Djizak. It is a good proof of stability of the Uzbek market and growth of Russia’s interest in it. In our opinion, the development of package production is vital. Save and deliver final product to the consumer is very important, after all.

For example, the Russian Vimm Bill Dann Company invested own funds in “Vimm Bill Dann Toshkent” Limited - production of dairy products, juice and drinks. Russian investments in company development make US$7.3 million. It is already drawn US$5.3 million of five-year project. Part of these means has been directed on issue of new kinds of production on modern equipment. According to company management, they projected large investments into mainline for 2008.

During the Russian national exhibition November, 29th  we held a “Roundtable” on cooperation in agriculture, agro-industrial complex, agricultural products processing and the prospects of realization of joint investment projects. The basic attention was given to development of dairy and meat industry. The agreements in milk and meat processing are of great importance. The Uzbek “Karakul” Company offered Russian companies to make a contract on karakul fur deliveries.

The Uzbek party was also interested in purchase of Russian seed potato. As known, Russia raises the new potato breeds suitable for climatic and ecological conditions of Uzbekistan. The Uzbek party also offered to purchase Russian engineering on seed processing.

- As to results, they’re more than impressing. Within the exhibition our parties signed contracts for the sum over US$100 million. Russian and Uzbek parties signed corresponding contracts, memorandums and protocols of intentions. The Russian national exhibition passed in Tashkent from November 28 till December 2. The expositions, which exceeded 4 thousand sq m, hosted 168 companies from 17 regions of the Russian Federation and presented export production and technologies demanded in Uzbek market. Both chiefs of Uzbek ministries and departments, and over 2 thousand representatives of business communities of the republic highly appreciated the production.