This week, key topics were discussed in the fields of energy, foreign trade, legislation, and finance. In this weekly roundup, Spot has compiled the most important articles and news of the week that you may have missed.
Energy
On November 6, the Committee for Competition Development and Consumer Rights Protection set a price ceiling for propane on the commodity exchange (UzRTSB).
According to the agency's directive from November 5, a price growth limit (spread) of 20% from the seller's initial price for liquefied gas was introduced starting Wednesday.
One day after the introduction of the limit, the exchange price for propane dropped by nearly 12%—to less than 9 million soums per ton. The volume decreased by more than 15%.
According to market participants interviewed by Spot, the price ceiling is artificially restraining exchange quotations, limiting competition, as all participants can offer the maximum allowed price.
Furthermore, since the beginning of the week, the supply of propane on the exchange has halved. While over 2,000 tons of liquefied gas were sold on November 1, only 1,070 tons were sold on November 7. The price remained at 8.9 million soums.
Business Inspections
Uzbekistan plans to approve a list of authorities authorized to monitor the activities of entrepreneurs and their areas of control.
Inspections not included in this list will be prohibited. All inspections must be registered in the "Unified State Control" information system, with mandatory notification to the Business Ombudsman.
Starting January 1, 2025, inspections will be conducted based on the electronic "Risk Analysis" system, categorizing entrepreneurs into three types:
- low risk;
- medium risk;
- high risk.
Businesses classified as low risk will not be inspected. For entrepreneurs with medium risk, preventive measures will be applied, and inspections will only be permitted if violations are not rectified.
In turn, regulatory bodies may initiate inspections of enterprises with high risk without conducting an analysis in the electronic system.
WTO and ILO
The special representative of the president for WTO issues, Azizbek Urunov, stated that Uzbekistan plans to unify excise taxes within 2-3 years.
This is being done to establish uniform rates for importers and domestic producers: for tobacco by 2026, and for alcohol and sugar by 2027.
This week, Uzbekistan completed negotiations with the USA regarding its accession to the organization. Additionally, Uzbekistan is negotiating its entry into the World Trade Organization (WTO) with Russia, China, the European Union, the United Kingdom, Switzerland, and other countries.
Uzbekistan has also ratified the ILO Convention on Paid Leave. According to the convention, leave must be granted to all workers regardless of their employment sector, which contributes to restoring work capacity and improving working conditions.
In total, the country has joined 25 conventions, including 5 in the last few months.
Banks and Sanctions
The Central Bank has restricted active operations of five banks that failed to meet the minimum charter capital requirement, which is set at 350 billion soums as of April 1.
According to the head of the Central Bank, Mamarizo Nurmuradov, the supervisory boards of the banks have committed to increasing their charter capital.
Additionally, the chairman of Madad Invest Bank, Ulugbek Tavakkalov, left his position on November 1 but remains with the bank as a consultant. The acting head of the bank is the first deputy chairman, Safarali Rahmatullaev.
The head of the Central Bank, Mamarizo Nurmuradov, commented on the risks of sanctions for Uzbekistan. He stated that banks are independently complying with the requirements of the Office of Foreign Assets Control (OFAC) and the European Union.
“We have $4.6 million in frozen funds, but not due to sanctions. The banks froze the funds or did not process payments. We are working directly with OFAC on these cases and will take measures to return them to their owners,” noted Nurmuradov.
Furthermore, the German prosecutor's office has closed the investigation into money laundering against Alisher Usmanov. According to his lawyers, the investigation found no evidence for the main allegations over the past 2.5 years.
Quote of the Week
The chairman of the Central Bank, Mamarizo Nurmuradov, commented on the new restrictions on online loan issuance. Now, when applying, a "cooling-off period" of 48 hours will be in effect.
The new restrictions came into force on November 1 and will last until April 1, 2025. Over the next five months, the Central Bank plans to refine and test mechanisms that will determine the basis for online payments and transfers.
The chairman of the Central Bank emphasized that after the temporary order ends, the restrictions will remain. For more details on how the online loan application process has changed, see our guide.
Number of the Week
On November 7, 789 vehicle registration numbers were sold for 3.82 billion soums. The minimum price was set at 1.9 million soums, while the average was 4.9 million soums.
The most expensive "beautiful" license plate was sold on March 28, purchased by a legal entity from Tashkent for 517.1 million soums.
Article of the Week
Spot has launched a section titled "Where to Invest Money," which will explore various sectors for passive investing. The first topic of the release was the local securities market.
Managing partner of Avesta Investment Group, Karen Srapionov, discussed whether it is worth investing in the stock market in Uzbekistan, how to choose securities, as well as their profitability and risks.
Spot analyzed the financial reports of payment organizations and fintech services in Uzbekistan for the third quarter of 2024. More than half of the companies reported losses, while Uzum Nasiya was the leader in profits.
Additionally, Spot found out which bank offers the most favorable conditions for microloans. As of November 2024, 24 banks are offering microloans. "Davrbank" set the lowest and highest interest rates at 23.99% and 49%, respectively.