GM: Let's Get Localized - American Chamber of Commerce in ...

FIRST 2012
GM: Let's Get Localized

Dear Members and Friends,
While the winter this year was somewhat colder than usual, spring
is here and AmCham is off to a busy start with a lot of meetings,
visitors and related activity.
Your new board of directors brings vigor and enthusiasm and
while we regret the departure Bob Horton, long-standing AmCham
board member and past president, we welcome several new board
members who will greatly add to our corporate presence and
out-reach.
We are equally pleased with the formation of AmCham’s committee
for Intellectual Property Rights which has been motivated
and encouraged by the growing presence of our member Microsoft.
The recent roundtable which is featured in this issue was testimony
to the importance of IPR and the wide range of interested and
involved players.
We were also inspired by President Karimov’s speech at the
recent international conference dealing with education, which
is also featured in this issue. As we all know, education is of paramount
importance and it is reassuring to see the commitment
Uzbekistan is making.
Let us hope that the year proves to be good for business and
especially the AmCham community. Our Tax & Accounting and
Natural Resources Committee’s have already set the pace for the
rest of the year and we are certain that you as members will benefit
from and appreciate the new initiatives.
Best regards and our wishes for continued success,
Your Editorial Board
AMCHAM UZBEKISTAN
WWW.AMCHAM.UZ
1

InvITaTIonS
EXHIBITIONS 2012
# Date Exhibition Short description
1 24–27 April,
2012
2 24–27 April,
2012
3 24–27 April,
2012
4 15–17 May,
2012
5 15–17 May,
2012
6 15–17 May,
2012
2
The 17 th Uzbek International
Exhibition “Healthcare—
TIHE 2012”
The 8 th Uzbek International
Exhibition “Stomatology
Uzbekistan 2012”
The 5 th Uzbek International
Exhibition “Beauty and
Aesthetic Medicine—
Beauty Uzbekistan 2012”
The 7 th Uzbekistan
International Specialised
Exhibition “Energy, Energy
saving, Electrotechnical
& Power equipment,
Information and measuring
equipment, Cables,
Lighting, and Modern technologies
in electric energy—
POWER Uzbekistan 2012”
The 8 th Uzbek International
Exhibition “Transport and
Logistics—TransUzbekistan
2012”
The 7 th International
Exhibition on supplying,
servicing and operating
in the mining and processing
of metals and minerals.
Metallurgy—“MiningWorld
Uzbekistan 2012”
Business ConneCtions • 1’2012
www.afs-research.com
TIHE 2012—THE KEY MEDICAL EVENT FOR UZBEKISTAN & CENTRAL ASIA REGION
For sixteen years, TIHE has held a special place in the life of the medical community in Uzbekistan,
and transformed into the country’s main medical exhibition. During this time, TIHE has given
a start to a number of medical exhibitions, which are now held under the title “International
Uzbekistan Healthcare Week—TIHE”. The annual April exhibition “TIHE” is the main medical exhibition
in Uzbekistan. It is a unique platform for business and great place for meeting of medical
industry experts: producers, distributors, doctors, medical community of the country.
In our country, more and more dental institutions are interested in modern equipment, using
the latest technologies and developing advanced methods of diagnosis and treatment. Thanks
to the Stomatology Uzbekistan exhibition organized by the International Exhibition Company
ITE Uzbekistan, specialists in this field are able to obtain reliable information about manufacturers,
compare product quality, and choose the latest dental technologies. Among exhibitors
of STOMATOLOGY Uzbekistan are such well-known companies like Sirona, Degudent, Bredent
and many others. 8 th Uzbekistan International Dental Congress will discuss a number of key industry’s
questions. The seminars and workshops included in the Exhibition & Congress program
will raise a number of theoretical and practical issues that in recent years have seen new
positive results, and provide the opportunity to improve the professionalism of specialists.
The 5 th Uzbekistan International Exhibition for the Beauty Industry Beauty Uzbekistan &
AestheticMed 2012, 24–27 April 2012, Uzexpocentre, Tashkent
Beauty Uzbekistan & AestheticMed 2012 is an international exhibition for the beauty and aesthetic
medicine exhibition, which will take place within TIHE 2012, the 17 th Uzbekistan International
Healthcare Week.
POWER UZBEKISTAN 2012—7 th Uzbekistan International Specialised Exhibition and Conference,
which is a major trade show in Uzbekistan, will take place on 15–17 May 2012. The exhibition
is hugely important for energy companies both in Uzbekistan and the whole Central Asian region.
Demonstrate scientific and industrial equipment for use in Uzbekistan’s energy sector; attract
more partners and customers; expand the market for the products of domestic and foreign
manufacturers; and increase cooperation between businesses, organizations, firms and investors.
The exhibition demonstrates the development and potential in key industry sectors,
such as energy, electrical equipment, the coal industry, construction, communications, the
oil and gas industry, and utilities sector.
Trans Uzbekistan exhibition enters series of specialized transportation events, which are being
organized by ITE company in Azerbaijan, Kazakhstan and Russia.
Annual holding of the Trans Uzbekistan exhibition in Uzbekistan promotes development of transportation
services, which are being provided by the national companies of various countries,
as well as accelerates development of a large spectrum of related services in the field of transportation
and logistics of cargo, maintenance and support manning of transportation means.
7 th MiningWorld Uzbekistan Exhibition, one of the most important mining and processing
of metals and minerals event in Central Asia, which attracts over 5,000 visitors and 70 exhibitors
from across 19 countries. This event will be held on the 15 th to 17 th May, 2012 at the
Uzexpocentre in Tashkent, Uzbekistan.
MiningWorld Uzbekistan provides a well-established platform for thousands of decisionmaking
buyers to connect with international and domestic suppliers from the mining, geology,
chemical, oil and gas, and investment industries

# Date Exhibition Short description
7 15–17 May,
2012
8 15–17 May,
2012
9 15–17 May,
2012
10 15–17 May,
2012
11 15–17 May,
2012
12 15–17 May,
2012
13 15–17 May,
2012
The 4 th Uzbekistan
International Specialised
Exhibition “Road Building
and Municipal Machinery
and Equipment—UzComak
2012”
The 5 th Central Asian
International Exhibition
“Machinery, Engineering and
Automation—MCA 2012”
The 2 st International
Specialised Exhibition—
Plastex Uzbekistan 2012
The 7 th Uzbek International
Exhibition “Auto&Parts
Uzbekistan 2012”
5 th Anniversary Central
Asian International
Exhibition “Protection,
Security and Fire Safety—
CAIPS 2012”
The 5 th Central Asian
International Exhibition
«Chemical Industry—
Chemie Uzbekistan 2012»
The 16 th Uzbek International
Exhibition “Oil & Gas
Uzbekistan—OGU 2012”
AMCHAM UZBEKISTAN
The International Exhibition Road-Building and Municipal Engineering UzComak will be the
unique project in Uzbekistan aimed at promotion of special machinery in the domestic
market.
The first Uzbekistan International Exhibition Road-building & municipal machinery and equipment—UzComak
is the only specialized exhibition in Uzbekistan, which is supposed to receive
the leading international and domestic companies working in the field of manufacture and
supply of building, road, municipal, earth-moving machinery, hoisting machines and equipment.
The exhibition will become the basic platform for demonstration of new materials and
technologies in construction and repair of automobile roads, construction of bridges, driving
trenches, quarrying, asphalt production, lifting-and-shifting machines and appropriate
equipment, highway engineering, housing and municipal construction; it will also be the platform
for finding solutions targeted towards area development, roadside services, engineering
and road facility construction.
Machinery Central Asia—one of most important events in Central Asia which is organized
to assist manufacturers and suppliers of industrial machines and equipment, components,
fittings and parts to meet with industrial specialists from Uzbekistan, Kazakhstan, Kyrgyzstan,
Tajikistan, Turkmenistan and other neighbor countries.
The exhibition is held in frames of International Forum “Central Asian Industrial Week”.
The 3 rd Plastex Uzbekistan exhibition invites interested companies to exhibit at the only specialised
plastics and polymers event in Uzbekistan.
Plastex Uzbekistan 2012 will take place for the first time as part of the multi-industry forum
Central Asian Industrial Week, enabling you to profit from all the advantages of closely-related
themes being brought together. Plastex Uzbekistan 2012 is also particularly
relevant in terms of the versatile industrial uses of polymers and their considerable technical
potential.
Plastex Uzbekistan 2012 provides the ideal place where local and international companies can
exhibit the latest developments and advances in polymers production and industrial technology
for the production and processing of polymers and rubbers, stimulating new high-quality
joint projects. This is a feature of the exhibition, which is highly rated by the professional community,
who recognize the exhibition’s effectiveness.
Auto&Parts Uzbekistan—ia a meeting place of leading producers and dealers of the industry,
suppliers and consumers from European, Asian and CIS countries. At the present moment,
development of the new branch requires modern technology introduction, effective search
of raw material suppliers, investors for joint production of deliverables and spare parts for industries.
These factors stipulate the topicality of the exhibition.
CAIPS is the only significant event in Uzbekistan’s security industry. The exhibition is an ideal
launch pad for international companies entering Central Asia’s technical systems and security
market for the first time. CAIPS is a unique opportunity and effective marketing tool
for demonstrating your company’s potential and networking with industry professionals.
The event allows companies to find local distributors and to assess the reaction of the market
to their products.
CAIPS reflects the security industry on a national scale. The event is attended by key market
players—manufacturers, suppliers, government officials, professional associations and
publications.
Chemie Uzbekistan 2012 will be an essential informative event, shaping future international
cooperation between companies and businesses from Uzbekistan’s chemical industry and
companies overseas.
According to tradition, Chemie Uzbekistan will facilitate the promotion of high-performance
equipment and state-of-the-art technology onto the Uzbekistan market, essential for modernizing
industry and the chemical sector, in particular.
The 16 th International Oil and Gas Exhibition & Conference—OGU 2012
Today, OGU is the foremost international forum for the development of the oil and gas sector
in Uzbekistan.
OGU is a unique platform where leaders of the oil and gas industry present their newest developments
to the wide audience of specialists working in oil and gas sector.
OGU participating in favor to establishing direct contacts and decide the issues of the business
development.
WWW.AMCHAM.UZ
3

InvITaTIonS
EXHIBITIONS IN THE USA
4
Exhibition City Short description Date
New York International Auto Show 2012 New York New York International Auto Show 06.04.2012
15.04.201
NAB 2012 Las-Vegas International exhibition and conference of electronic media
technologies
FDIC 2012 Indianapolis Fire Department Instructor Conference & Exhibition (FDIC
Indianapolis)
Business ConneCtions • 1’2012
16.04.2012
19.04.2012
16.04.2012
21.04.2012
MAIN ST. 2012 FortWorth Fort Worth Arts Festival 19.04.2012
22.04.2012
CinemaCon (formerly ShoWest) 2012 Las-Vegas CinemaCon, Greatest Innovations in Motion Picture
Technology
23.04.2012
26.04.2012
Techtextil NORTH AMERICA 2012 Atlanta Technical textiles and nonwovens exhibition 24.04.2012
26.04.2012
SAE World Congress 2012 Detroit World congress and exhibition of auto engineers 24.04.2012
26.04.2012
K/BIS 2012 Chicago The kitchen and bath industry 27.04.2012
29.04.2012
OTC 2012 Houston International Offshore Technology Conference (OTC) 30.04.2012
03.04.2012
NHS 2012 Las-Vegas National Hardware Show 01.05.2012
03.05.2012
Sweets & Snacks (formerly All Candy Expo) 2012 Chicago Sweets & Snacks Exhibition 01.05.2012
01.05.2012
EASTEC 2012 Springfield Advanced Productivity Exposition on Metalworking 01.05.2012
03.05.2012
INTERPHEX 2012 New York Exhibition of pharmaceutical and biotech professionals 01.05.2012
01.05.2012
Interop 2012 Las-Vegas IT Conference and Expo 01.05.2012
01.05.2012
SouthPack 2012 Charlotte Trade show for the Southeast packaging marketplace 02.05.2012
03.05.2012
EDS 2012 Las-Vegas Electronic Distribution Show 08.05.2012
10.05.2012
CLEO/QELS 2012 San-Jose Laser science to photonic applications exhibition 08.05.2012
10.05.2012
LFI 2012 Las-Vegas Lightfair International 09.05.2012
11.05.2012
ICFF 2012 New York International Contemporary Furniture Fair 19.05.2012
22.05.2012
NRA Show 2012 Chicago International exhibition of hotels and restaurant business 19.05.2012
22.05.2012
Surtex 2012 New York Original Art and Design Exhibition 20.05.2012
22.05.2012
ICSC Spring Convention—RECon 2012 Las-Vegas International Sprint Convention of for shopping center industry
20.05.2012
23.05.2012
National Stationery Show 2012 New-York Stationary Show 20.05.2012
23.05.2012

AMCHAM UZBEKISTAN
Exhibition City Short description Date
Medtrade Spring 2012 Las-Vegas Home medical equipment exhibition 25.05.2012
26.05.2012
INFOCOMM-International 2012 Orlando Information and computer technologies Exhibition 01.06.2012
01.06.2012
Natural Market Place (formerly NNfA) 2012 Las-Vegas Annual Natural Products Trade Show and Convention 01.06.2012
01.06.2012
Cine Gear Expo 2012 Los Angeles The Film and Digital Media Conference 01.06.2012
01.06.2012
Buildings Show @ NeoCon World’s Trade Fair 2012 Chicago Building Show 01.06.2012
01.06.2012
Sensors Expo & Conference 2012 Rosemont The International Conference & Exposition of Sensors and
Systems
WWW.AMCHAM.UZ
01.06.2012
01.06.2012
International Bowl Expo 2012 Grapevine International Bowl Expo 01.06.2012
01.06.2012
IECSC 2012 Las-Vegas International Aesthetics, Cosmetics & Spa Conference 01.06.2012
01.06.2009
E3 2012 Los Angeles Electronic Entertainment Expo 01.06.2012
01.06.2012
NACDS 2012 Boston Pharmacy and technology 01.06.2012
02.06.2012
A&WMA 2012 Orlando Air & Waste Management Association Annual Meeting &
Exhibition
ACE 2012 Washington American Water Works Association Annual Conference &
Exposition
01.06.2012
01.06.2012
01.06.2012
01.06.2012
AIA 2012 Boston Exhibition of the American Institute of Archeologists 01.06.2012
01.06.2012
Nanotech 2012 Boston The Nanotechnology Conference and Trade Show 01.06.2012
01.06.2012
NeoCon 2012 Chicago Building Show 01.06.2012
01.06.2012
WINDPOWER 2012 Atlanta Wind energy conference 03.06.2012
06.06.2012
DAC 2012 San Francisco The design automation conference 03.06.2012
07.06.2012
Book Expo America 2012 New York Book Expo 04.06.2012
06.06.2012
JCK 2012 Las-Vegas Jewelry exhibition 05.06.2012
08.06.2012
Commercial Marine Expo 2012 New Bedford Trade Show for the Commercial Fishing, Seafood
Processing, and Workboat Markets
11.06.2012
13.06.2012
NFPA Conference & Expo 2012 Las-Vegas National Fire Protection Association Exhibition 11.06.2012
14.06.2012
Licensing International 2012 Las-Vegas Licensing International Expo 12.06.2012
14.06.2012
INPEX 2012 Pittsburgh The Invention & New Product Exposition 13.06.2012
15.06.2012
NEW Hospitality @ NeoCon World’s Trade Fair 2012 Chicago International Hospitality Exhibition 13.06.2012
15.06.2012
F.I.R.E. 2012 New York Annual Conference & Exposition New York State
Association of Fire Chiefs
15.06.2012
18.06.2012
Bio 2012 Boston International Biotechnology Meeting & Exhibition 18.06.2012
21.06.2012
HSMAI’s Affordable Meetings® West 2012 Long Beach Tourist Fair 18.06.2012
20.06.2012
THE GREAT WEST TRUCK SHOW 2012 Las-Vegas The Great West Truck Show 21.06.2012
23.06.2012
IFT Food Expo 2012 Las-Vegas Food Expo 25.06.2012
29.06.2012
Summer NAMM 2012 Nashville International Musical Exhibition 12.07.2012
14.07.2012
MINExpo INTERNATIONAL ® 2012 Las-Vegas Exhibition of mining equipment, products and services 24.09.2012
26.09.2012
5

FEaTuRE
GM AND LOCALIZATION
Located on the outer ring road near
the new domestic airport terminal,
the GM Powertrain Uzbekistan factory
complex is a state-of-the-art facility
and a glowing example of Uzbekistan’s
future in the automobile sector.
Owned jointly by General Motors
and UzAutosanoat, the joint venture is
a further strengthening of the ties between
GM and Uzbekistan that started
with the car manufacturing plant in
Asaka, Ferghana Valley, where GM is a
minority shareholder with 25% ownership,
to the new Powertrain joint venture,
where GM owns 52%.
With over 6,000 people currently
employed in the Asaka facilities, GM
Powertrain will add a further 1,000,
making it one of the largest employers
in Uzbekistan. This is of particular
importance, given the level of training
and skill enhancement that the company
imparts to its work force. Working
6
Business ConneCtions • 1’2012
in close collaboration with the Torino
Polytechnic University in Tashkent,
which is an affiliate of the prestigious
Polytechnic University of Turin, Italy,
GM Powertrain employees have the
opportunity to learn the latest in automotive
manufacturing technology.
During a recent visit to the new GM
Powertrain facilities a small AmCham
team had a first-hand opportunity
to witness the impressive facilities.
We were received and hosted by
Juergen Spendel, General Director and
Plant Manager, who in addition to managing
the joint venture is also a director
and Vice president of AmCham.
Joining Mr. Spendel were other
members of his core team including
Ben Schneider, Tom Gustafson, Danny
D’haese, Martin Weber, Robert Strimpel,
Mark Yeager and others.
For many of us in AmCham this is a
welcome reunion harking back to the
first GM presentation that was made
to our general membership by Sergio
Rocha, VP of GM—Daewoo Auto Korea
in February 2008.
As we began our visit it was impressive
to note the priority and attention
that is given to safety—both in what one
wears to where one walks, touches and
is near. This not only applies to visitors
but to every person working in the complex.
Hard hats, vests, safety glasses
and proper foot wear are de rigueur.
Equally impressive was the attention
to, and investment in, environmental—
ecological aspects ranging from the water
treatment facilities to the recycling
of materials.
GM with the assistance of Uz Autosanoat
and its other local and foreign
contractors has built a state-ofthe-art
facility that ranks with the very
best anywhere in the world. In this respect
we should also mention that two
other AmCham members share the
same distinction, namely Carlsberg
and Nestle, who have also built modern
facilities in Tashkent and Namangan
that set the highest standard in their
respective sectors. On behalf of
AmCham we compliment all three.
Led by Juergen Spendel we toured
the GM Powertrain facilities. It was impressive,
not just the size but also the
cleanliness, low noise level, attention
to worker safety, ease of movement for
both people and materials, and clear
display of signs and messages for everyone
to follow. Also impressive was
the use of laptop computers by many
of the workers—this is a modern factory
where IT is an integral component.
Many of the manufacturing tasks are

performed by robots, eliminating the
possibility of human error.
GM Powertrain makes modern small
engines (1.2 liters and 1.5 liters) for cars
in emerging markets. Four different engine
models are made and the plant
once at full capacity will be turning out
225,000 engines a year. Many of the engines
will go to the auto plant in Asaka
where they are put in current models
and in new models due later this and
next year. The balance will be exported
to GM plants in Indonesia, within the
CIS, Egypt, and Brazil. As we saw, the
engines proudly show their made in
Uzbekistan heritage.
While much of the facility consists
of machines performing assorted tasks
ranging from cutting, polishing, testing,
and washing, other machines and
work stations fulfill the tasks that add
components to the engine as it progresses
through the plant. However, everything
starts at the foundry—a large
separate building that houses the first
new cylinder head foundry GM has built
in twenty-five years. Aluminum ingots
are melted, treated, and poured into
specially made sand forms that then
become the cylinder head. It’s a complex
process where again the tidiness,
safety, working conditions were beyond
anything any of us had ever seen.
Most impressive- and a tribute to Tom
Gustafson, the GM Powertrain manager
who has managed and overseen
the design, building and now running
of the foundry section. As Tom is proud
to point out, he has personally been involved
in everything from the sourcing
of the right sand, to the final disposal
of the few remnants of the casting process
that are not internally recycled.
Once cast the cylinder head moves
to the machining, testing, assembly, cold
and/or hot testing of the finished engine,
and final inspection building that adjoins
the two-storey administrative center.
It’s a large building which probably ranks
with the Uzbekistan Airlines service
building at the airport in terms of span
between the columns, roof height and
other technical considerations.
While most of our visit was dedicated
to touring the plant facilities and be-
ing briefed on the engine specifications,
there are other key components that
deserve mention. Two of these being
procurement and finance—and both
are equally critical to the company’s
success. Procurement during the construction-installation—start
up stage
is nearly finished and is now focused
on sourcing the many inputs the manufacturing
process requires. These range
from raw materials, both local and imported,
to finished parts that are incorporated
into the engine as it works its
way through the assembly line. Some
of our AmCham team had attended
the recent conference at UzAutosanoat
dealing with localization, and this will
be a factor for GM Powertrain as well,
as the cast iron engine block is imported
and might be a good candidate
to be made locally. More on localization
later, let us now move to finance
and the heroic job Danny D’haese the
CFO has done in managing the project’s
requirements during construction and
now operations.
Going forward and looking to help
and encourage localization, we as
AmCham can only recommend that
every effort be made to facilitate the
banking, import and currency conversion
policies and procedures—as these
are the key factors for most investors
looking to establish manufacturing facilities
here. As we were informed by
the GM team, two potential localization
AMCHAM UZBEKISTAN
projects would be a cast iron foundry
and high pressure die casting.
As we finished our visit we talked
briefly about some of the lessons
learned and it was interesting to note
that Project Management was a critical
component where local universities
and technical schools would be well advised
to give greater attention. As more
foreign investors come to Uzbekistan
with the intention to build complex,
state-of-the-art facilities, project management
skills will be in increasing demand
and GM is ready to help.
Another small but nevertheless important
note is that GM is looking to recruit
more women for manufacturing
jobs. This is interesting as it follows
the trend set in other countries where
women learn the skills and appreciate
their enhanced value and earnings
capacity.
We left GM Powertrain Uz on a bright
sunny afternoon knowing and recognizing
that Juergen Spendel and his
extended highly professional team
has really contributed a major building
block for the future growth and development
of Uzbekistan.
As a final note we are pleased to
mention that the United States Govern
ment has included GM Powertrain
Uz in the list of finalists for the prestigious
Annual Award for Corporate
Excellence in 2011.
Well deserved. #
WWW.AMCHAM.UZ
7

CommITTEE nEwS
INTELLECTUAL PrOPErTy rIGHTS
rOUNDTABLE
FebRUARY 29, 2012
Mrs. Tatyana Telegina, Microsoft
The new Intellectual Property Rights
(IPR) Committee of the American
Chamber of Commerce in Uzbekistan
held its first-ever roundtable discussion
on Feb. 29. The focus of the meeting
was “Protecting Intellectual Property
Rights (IPR),” and included the participation
of Microsoft, the worldwide leader
in software production and innovation.
More than 50 participants attended
the roundtable, including representatives
of large corporations, law firms,
patent and trademark offices, and officials
from other agencies and governmental
offices. The group gathered
in the Club Lounge Room of the
InterContinental Hotel Tashkent.
The event’s format was divided into
two parts—the afternoon roundtable
followed by the AmCham business
mixer in the evening. The social mixer
was sponsored by Microsoft and held
in the hotel’s Dome Restaurant.
Donald Nicolson II, AmCham president,
and Tatyana Telegina, regional
8
Business ConneCtions • 1’2012
leader at Microsoft, opened the roundtable,
inviting participants to be actively
involved in the committee’s activities.
The roundtable was moderated
by Eugene Danilov, anti-piracy
lead for Central and Eastern Europe
at Microsoft. He opened the event
with its first panel, a report on “The
Formation of a Civilized IT Market in the
Republic of Uzbekistan.”
Sad statistics from an independent
study indicate that piracy and illegal
use of IPR comprises as much
as 95 percent of the market in Uzbe
ki stan. “There is a huge amount
of work to be done to reduce these
statistics,” Danilov reported. He also
shared about Microsoft’s experiences
of how they have interacted with
go vernmental agencies to implement
projects aimed at reducing software
piracy in the countries of Central and
Eastern Europe.
Zebo Kuylieva, head of the agency
on intellectual property in the Repub-
Participants of IPR Committee roundtable meeting
lic of Uzbekistan, a department of control
and state registration of organizations
controlling property rights, gave
a presentation on the “Activity of the
Agency on Intellectual Property Rights
of the Republic of Uzbekistan.”
In her presentation, Kuylieva talked
about the mission, function and structure
of the agency, which was created
by presidential resolution on May 11,
2011. The agency is authorized to represent
the Uzbekistan World Intellectual
Property Organization and/or other
similar organizations.
The agency is also authorized to register
musical, literary and artistic works;
discoveries and inventions; and words,
phrases, symbols, designs and other intellectual
property within the territory
of Uzbekistan. In 2011, the agency registered
428 objects of IPR in Uzbekistan.
Kuylieva continued with a list of legislative
acts that affect development
of IPR in Uzbekistan. Her full presentation
is available in the AmCham office.

Muhammadali Makhmudov, managing
partner at LEGALMAX Law Firm,
a new AmCham member, talked about
IPR in Uzbekistan and the need for its
development in the country. He mentioned
several cases of IPR violations
the company has recently dealt with.
Evgeniy Olevskiy, general director
at OLSOFT, an AmCham member and
Microsoft partner, was the last of the invited
experts to present at the roundtable.
He talked about protection of intellectual
property as the main base
of the post-industrial economy.
In this new economy, the term
“goods” has changed from something
that used to be touchable into anything
that can be sold. In this regard,
the limits of the so-called “goods” are
only legal. In a civil society, all parties
benefit from IPR protection—producers,
corporations, distributors, consumers,
and mainly the state that receives
a lot to its budget.
The presentations and reports
from the roundtable experts evoked
a lot of discussion. Participants spoke
on such aspects as if the population
of Uzbekistan is ready to pay many
times more for legal version of a product
where a less-expensive counterfeit
version is easily found. They also
talked about the incentives and stimuli
Microsoft gives its clients, such as discounts,
several programs, special programs
for educational establishments,
and many other items used to stimulate
use of its legal products.
Mr. Eugene Danilov, Microsoft
Following the roundtable, participants
were invited to stay for the business
mixer, sponsored by Microsoft.
Telegina welcomed the guests and introduced
the Microsoft delegation. She
the evening was special, she said, because
Microsoft and the Uzbek Agency
for Communication and Information
had just signed a cooperation agreement.
As per the agreement, there will
be a join initiative in the sphere of education
in IPR. Telegina also mentioned
that there would be additional events
in 2012 sponsored by the AmCham IPR
committee.
The InterContinental Hotel Tashkent
provided the elegant setting of
the Dome Restaurant for the mixer.
Guests of the evening were delighted
by the delicious food and spectacular
view. #
Mrs. Tatyana Telegina, Regional Leader, Microsoft, Mr. Donald Nicholson II,
AmCham President and Ms. Tatyana Bystrushkina, AmCham Executive Director
AMCHAM UZBEKISTAN
IPr
COMMITTEE
mission
To respond to members' needs,
AmCham has established a
Committee for Intellectual Property
Rights (IPR). IPR committee
is focused on improving the
protection of IPR in Uz be kistan
and increasing awareness of the
risk using counterfeited products.
AmCham IPR committee’s aim
is to put together governments,
experts, community leaders and
member companies to:
$ Maintain an on-going dialogue
of the member companies with
the Uzbekistan governmental bodies
engaged into IPR protection;
$ Share best practices; improve
knowledge and execution in the
field of intellectual property and
related area;
$ Facilitate the process of harmonization
of local legislation
to comply with the international
IPR standards;
$ Provide the needed content
for its members in the area of intellectual
property laws and policies
for effective business and investment
decisions;
$ Educate the broad audience
on the benefits of strong IPR protection
for the economic growth,
IT market development, nation’s
welfare and reputation, and citizen’s
quality of life.
Activity plan includes:
$ IPR Committee Annual Events
$ IPR Quarterly Newsletter for
member companies, government
officials and business community
$ IPR-related media announcements
and publications in the local
media
$ Joint IPR Awareness campaigns
sponsored by membercompanies
WWW.AMCHAM.UZ
9

CommITTEE nEwS
TAX AND ACCOUNTING SEMINAr
FebRUARY 9, 2012
Ms. ZoyaTuchkova, State Tax Agency and Mr. Stanislav Zukal, Prom Audit Ltd.
The tax and accounting committee of
the American Chamber of Com merce
(AmCham) in Uzbekistan, driven
by two of its members—Prom-Audit
and Audit-As—held its first seminar
of 2012 on February 9. The main purpose
of the seminar was to discuss tax
modifications and amendments introduced
in 2012.
The seminar was held in the Club
Lounge Room of the InterContinental
Hotel Tashkent. The hotel kindly provided
the coffee break.
According to established practic
e , t h e b e g i n n i n g of 2 0 1 2 w a s
marked by changes in the tax policy
of Uzbeki stan. A number of norms
in the tax code have been updated.
Modifications and amendments were
10
Business ConneCtions • 1’2012
aimed not only at the rates and preferences
but also at certain tax-related
definitions.
All participants of the seminar received
a brochure prepared by the
Prom-Audit specialists. The brochure
featured the main changes in tax legislation
introduced in 2012 and outlined
taxes introduced in 2012 versus those
active in 2011.
Zoya Tuchkova, head of the department
of the state tax agency in
Uzbekistan, led the meeting. Besi des
the amendments of concern, many
other serious taxation-related items
were under discussion. In the course
of the seminar, participating accountants
exchanged opinions on the issues
pertaining to bookkeeping. The speaker
and audience showed keen interest
in the discussion.
The seminar helped participating
accountants clearly understand the
new tax issues.
Accountants within the AmCham
community will continue to be the target
audience for the tax and accounting
committee. Other changes within
tax legislation and bookkeeping will always
be the topic of the day.
Submitted by: Stanislaw Zukal,
chairman, tax and accounting committee.
#

Gosselin worldwide
Moving In Uzbekistan
Removals with a total invoice 3500–
6500 USD
$ One free night at Dedeman Hotel
Tashkent, standard room
$ Free pick up or delivery Tashkent
airport
Removals with a total invoice 6501–
10,000 USD
$ Two free nights at Dedeman Hotel
Tashkent standard room
$ Free pick up or delivery to Tashkent
airport
$ One day house hunting with a professional
real estate agent
Removals with a total invoice over
10,000 USD
$ Three free nights at Dedeman Hotel
Tashkent, standard room
$ Free pick up or delivery to Tashkent
airport
$ Free arrival or departure for one person
via CIP hall at Tashkent Inter na tional
Airport
$ Two days house hunting with a professional
real estate agent
For more info, AMCHAM members can
con tact regional manager Pim Sterckx at
pims@gosselingroup.eu
+998 (90) 186-6233
aFS-research
AFS-research is continuing to provide
discount 10% for all products and services
for all AMCHAM members.
“M & M Militzer and Muench”
Dear Partners,
Our company is proud to offer the
most competitive prices for all shipments
within “M & M Militzer and
Muench” network, as well as 10% discount
for all shipments within network
of FEDEX. Discounts are available for
all Members of AmCham.
AMCHAM UZBEKISTAN
Dedeman Hotel
Dedeman Hotel provides special discounts
for 2012 on the following services:
$ Restaurant “Opera”—15%
$ Lifestyle 6 Months and 1 Year Membership—20%
$ Accommodation from Best Avai lable
Daily Rates—20%
$ Sunday Brunch/Buffet (Food Only &
Valid for table): 2 pax—50%, 3 pax—33%,
4 pax—25%
$ Laundry and Dry Cleaning—15%
We will update information on discounts
and bonuses from AmCham
members on a quarterly basis in
Business Connection. Full information
you can get at AmCham website
www.amcham.uz

amCHam nEwS
jOIN AMCHAM FAMILy
amCHam BuSInESS aDvISoR
The American Chamber of Commerce
in Uzbekistan is pleased to welcome
Fabian Olarte from the United States
to work for one year as a special business
advisor to AmCham and its membership.
Olarte is in Uzbekistan as part
of a program sponsored by USAid,
which sends emerging-market advisors
to countries all over the developing
world for one-year assignments.
He is the first representative
sent to Uzbekistan to work alongside
AmCham and its business community.
Olarte is specifically interested in promoting
localization projects as well as
in finding ways to strengthen the overall
business climate in Uzbekistan.
Previous to his p osition with
AmCham, Olarte was a Wall Street senior
analyst at Goldman Sachs in New
York, where he worked on the commodities
trading desk. His product
expertise includes foreign exchange
and natural gas futures markets. Olarte
12
Business ConneCtions • 1’2012
spent summer 2011 working as a policy
analyst at the Office of Management
and Budget in Washington, D.C.
Olarte holds a Master’s Degree in international
business from the Fletcher
School of Law and Diplomacy with a focus
on risk management and consulting.
His native languages are English and
Spanish. He is also fluent in Portuguese
and is currently studying Russian.
GIanluCa Tozzo BIoGRapHY
Gianluca Tozzo became the new general
manager of Hotel Dedeman Silk Road
Tashkent in August 2011. He is a native
of Rome, Italy and graduated from the
Institute Hotelier “Cesar Ritz” in Switzerland,
where he received a diploma
in hotel management.
During his first six months in Tash kent,
Tozzo has enjoyed working with his dedicated
and professional team as they
partner together to best serve the hotel’s
local and international clientele. The
Dedeman Silk Road is one of the leading
properties in Uzbekistan, priding itself
on delivering warm, yet efficient service.
At the age of 39, Tozzo has already
acquired wide experience in the international
hotels industry with assignments
in Africa, Thailand, Italy, Turkey,
Russia and now, Uzbekistan. Prior
to joining Dedeman Hotels & Resorts
International, he worked for other international
chains such as Hilton
International and SwissÔtel Hotels
and Resorts.
His career comprises a variety of appointments
with prestigious properties
such as Grand Hotel Park in Gstaad,
Villa d’Este in Cernobbio, Hotel Hassler
Villa Medici in Rome, Hilton Rome
Airport, SwissÔtel, The Bosphorus,
Istanbul, and the SwissÔtel Krasnye
Holmy, Moscow.
In 2009, Tozzo was awarded The
Order of the Star of Italian Solidarity
(Cavaliere dell'Ordine della Stella della
solidarietà italiana) by the President
of Italy, Giorgio Napolitano. This award
was founded to recognize civilian and
military expatriates or foreigners who
have made an outstanding contribution
to Italy, promoting friendly relations
and cooperation with other countries
and ties with Italy.
Hotel Dedeman Silk Road Tashkent
is located in the heart of Tashkent
at the crossroads of Amir Temur and
Navoiy streets. The property is managed
by Dedeman Hotels & Resorts
International. The head office is located
in Istanbul, Turkey. The hotel offers
elegant surroundings of the finest quality,
with caring and highly-personalized
service. Dedeman embodies a true
“home-away-from-home” feel for those
who know and appreciate the best.

FArEwELL
to bob HoRton
The American Chamber of Commerce in Uzbekistan said
farewell to Robert Horton, Svetlana Horton and their two
sons in late February 2012 as the family moved back to the
United States.
Bob Horton’s long-term relations with AmCham started
in 1997. At that time, the company Bob headed was one
of the founding members of AmCham in Uzbekistan. Bob
joined the AmCham Board of Directors in 1999 and became
AmCham treasurer the same year.
In 2000 Bob became vice president of AmCham;
from 2001 to 2004 he served as president of AmCham
in Uzbekistan. Bob remained on the board of directors and
active within AmCham until his departure from Uzbekistan
in February 2012.
AMCHAM UZBEKISTAN
We will all miss Bob and remember all his accomplishments
as AmCham director, prominent businessman and
a very kind and generous person. We praise his enormous
contributions to the development of Uzbek-American business
relations and the great support he has given to the
business community. Bob will also be remembered for
all the events he organized and sponsored. Every event
he supported was brilliant, exciting and memorable.
Charity is also an indispensible part of Bob Horton’s life.
He personally supported several local orphanages and individuals
and played a vital role in AmCham’s Corporate
and Social Responsibility Committee.
We wish Robert Horton and his family the best of luck
as they return to the United States and look forward to continued
friendly relations. #
Mr. Donald Nicholson II, SEAF-SME, Robert Horton, Mr. Hugo Minderhoud, AKTE LLC, Mr. Juergen Spendel, General Motors
Powertrain, Ms. Tatyana Bystrushkina, AmCham, Mr. Fabian Olarte, AmCham, Mr. Frederick Darby, Rio Tinto, Mr. Bakhrom
Salakhitdinov, Tethys Uzbekistan B.V.
WWW.AMCHAM.UZ
13

amCHam EvEnTS
Mr. AlisherShaykhov AmCham community enjoying presentation
monthly meeting
on November 17, 2011
Traditionally the November monthly
meeting of the American Chamber
of Commerce (AmCham) in Uz bekistan
features a presentation by Dr.
Alisher Shaykhov, chairman of the
Uzbek Chamber of Commerce and
Industry. In November 2011, AmCham
stayed true to tradition as many
members of the AmCham community
gathered in the Club Lounge
Room of the InterContinental Hotel
Tashkent to hear Shaykhov’s annual
presentation.
Titled “Role of the Chamber of Commerce
and Industry of Uz be ki stan in
the Future De ve lop ment of Entre preneur
ship in Uz be ki stan and the De velop
ment of USA and Uzbek Re la tionships,”
the presentation highlighted the
14
Business ConneCtions • 1’2012
growing ties between the two countries
through an increase in military, trade
and social cooperation.
Based on statistics from the Uz be kistan
chamber, the total turnover of bilateral
trade in 2011 reached $181.7 mln.
Export dollars equaled $51.2 mln and
import topped out at $130.4 mln. At tracted
FDI from the United States comprised
$24.56 million.
Today there are 63 U.S. representative
offices in Uzbekistan and 243 JVs
in the sphere of construction, air transportation,
education, the automobile
industry, and trade work in Uzbekistan.
More than 20 projects with participation
from U.S. companies and financial
institutions have been implemented
in Uzbekistan.
Along with this, much has been done
over the years with plenty of new opportunities
available in the area of co-
Mr. Robert Horton, H.E. Keith Allan, Ambassador of the United Kingdom of Great Britain
and Northern Ireland to Turkmenistan and Mr. Donald Nicholson II, SEAF-SME
operation between small businesses
in the United States and Uzbekistan,
Shaykhov underlined.
In line with the declaration of 2011
being the “Year of the Small Business,”
the Uzbek chamber has undertaken
several big steps in improving the climate
for the operation of small businesses
in Uzbekistan. They have been
working with government officials
on “single window” lobbied reduction
of registration fees for small businesses,
simplified processes for obtaining
property, and many other reforms.
The Uzbek chamber constantly
works to attract foreign investors
to Uzbekistan and would like to see
more American businesses coming,
concluded Shaykhov.
A full copy of the November presentation
is available at the AmCham
office.
Ms. Samira Khamidova, Ucell

Mr. Donald Nicholson II, Mr. Robert Horton, Mr. Jean-Claude Beaujean, Mr. Hugo
Minderhoud, Mr. Bakhrom Salakhitdinov
General Assembly
on December 7, 2011
The American Chamber of Commerce
(AmCham) in Uzbekistan celebrated
the achievements of 2011 at its annual
general assembly on December 7
at the InterContinental Hotel, Tashkent.
The evening began with a presentation
by Tatyana Bystrushkina, AmCham
exe cutive director. Bys trush kina awarded
certificates of appreciation for “Long-
Term Valuable Support of AmCham”
to the AmCham board of di rectors.
Donald Nicholson, Hugo Min derhoud,
Jean-Claude Beaujean, Bakh rom
Salakhidinov, Robert Horton, and Saidrasul
Bakiev have all been supporting
AmCham for around 10 years or more,
Bystrushkina told everyone. AmCham
and its members are highly appreciative
of this commitment, she said.
Mr. NematullaKarimov, , Mr. Odil Djurayev
and Ms. Dilnoza Sultanova
The presentation also included a recap
of membership details, activities
and AmCham events during 2011.
Bystrushkina went on to thank the
many businesses that sponsored the
business mixers in 2011. She reminded
everyone that sponsors will each receive
a page for advertising their business
in the AmCham “Business Connections”
magazine. In 2012, AmCham will publish
three issues of this po pular journal.
Minderhoud, AmCham treasurer,
gave the financial reports for 2011.
The meeting concluded with the election
of new AmCham board members.
Charles Leo Rudd, from InterConcepts
supervised the tabulation procedure.
Following the formal meeting, members
were able to socialize at the cocktail
bar of the Club Lounge Roomand
congratulate the newly-elected board
of directors for 2012.
AMCHAM UZBEKISTAN
Mr. Donald Nicholson II, AmCham
and guest
Business mixer
on December 2011
The American Chamber of Commerce
in Uzbekistan closed out 2011 with its
newest Corporate A member, Microsoft,
at the Dec. 13 AmCham Business
Mixer hosted by Microsoft.
The festive New Year celebration included
members of AmCham as well
as members of the diplomatic missions,
international organizations and
Microsoft partners. The mixer was
held at in the Dome Restaurant of the
InterContinental Hotel Tashkent.
Donald Nicolson II, president of
AmCham, opened the evening by welcoming
all participants, noting it was
the last business mixer until 2012. He
thanked Tatyana Telegina, Microsoft
regional lead and a member of the
Microsoft Platinum Club 2011 and her
Mr. Hugo Minderhoud, AKTE LLC Ms. Tatyana Bystrushkina, AmCham
and Mrs. Jean Henry, OASIS Fes LLC
WWW.AMCHAM.UZ
15

AMCHAM UZBEKISTAN
Mr. Maxim Shirokov, Microsoft and Mr. Evgene Olevsky, OLSOFT Mr. Bakhrom Salakhitdinov
and Mr. Sanzhar Ismailov
team for their organization and sponsorship
of the evening.
Uzbekistan Microsoft is cooperating
closely with the Uzbekistan Agency on
Intellectual Property and the enforcement
of intellectual property rights.
This close working relationship is excellent
proof that Uzbekistan is fully prepared
to develop intellectual property
rights (IPR).
Microsoft has also initiated the creation
sof the new Intellectual Property
Rights Committee within AmCham
Uz be kistan, which will be chaired
by Telegina.
The year 2012 will be rich with a series
of events connected to IPR, Te legina
told the crowd as she welcomed
everyone to continue the evening by
Mr. Andrey Mitrofanov, OLSOFT
16
Business ConneCtions • 1’2012
enjoying the food and refreshments
provided in the Dome Restaurant.
monthly meeting
on January 2012
The first monthly meeting of the new
year for the American Chamber of
Com merce (AmCham) in Uzbekistan
featured a presentation by Takuya Kama
ta, the World Bank country manager.
The presentation, titled “Country
Partnership Strategy (CPS) for Uzbe kistan
for 2012–2015,” had been long anticipated
by AmCham members ever
since the adoption of the World Bank’s
new country strategy.
More than 60 participants at the
meeting had the unique chance
to hear about the history of the World
Bank’s involvement in Uzbekistan.
Kamata also talked about the phases
of cooperation between the World
Bank and Uz bekistan, which started
with unclear traction on structural
reforms with a commitment in the
amount of $47 mln for the period
of 1992 to 2004.
The 2008 Country Assistance Strategy
was based on the Government
Wel fare Improvement Strategy. Imple
mented projects under this strategy
were water supply and sanitation, energy,
agriculture, irrigation, and human
development. The projects were implemented
with participation of the World
Bank and were distributed throughout
the territory of Uzbekistan.
Mr. Edo Veenstra, Santos and Mr. Yong KyuKwak, RBS NB Uzbekistan

The World Bank operates in partnership
with the government of Uzbekistan,
international organizations, professional
associations, research institutes and
many others.
The newly approved Country Partner
ship Strategy for Uzbekistan will be
implemented in 2012–2015. Programs
under this strategy will be directed toward
economic growth, diversification,
and industrialization and will be implemented
in the spheres of urbanization,
transport, private finance, and
other areas.
Another project, “ Uzbekistan,
Vision 2030,” features sector strategies
for agriculture, transport, the private
sector, water supply and sanitation,
and energy.
After the presentation by Kamata,
meeting participants had a chance
to socialize in an informal atmosphere.
Business mixer
on February 3, 2012
Long-standing members of the American
Chamber of Commerce in Uzbe
kistan, AKTE, LLC and SEAF SME
Invest ment Management, sponsored
the first AmCham Business
Mixer of 2012.
Following tradition, the sponsors repeated
their success from last year’s
business mixer and hosted the 2012
event at the home-museum of Tamara
Khanum, the famous Uzbek dancer
AMCHAM UZBEKISTAN
Manfred Ringle, German Embassy and Ms. Beverly Picache, US Embassy Mrs. Vera Bell, Mr. Robert Horton and
Ms. Tatyana Bystrushkina
Mr. Takuya Kamata, World Bank
Country Manager
AmCham guests enjoying Business Mixer
who promoted Uzbek culture and traditions
around the world.
AmCham President Donald Nicholson
II, Hugo Minderhoud and Tatyana
Bys t rushkina welcomed the guests
and invited the director of the museum
to speak. Zubaida Muzafarova
thanked all participants for their attention
to the museum and also thanked
the U.S. Ambassador Fund, which
helped print a book about Khanum.
The book is available, in Russian, at the
museum.
Everyone who gathered for the
2012 mixer enjoyed the food and refreshments
and had a chance to look
through the Khanum’s fabulous costumes,
which are exhibited in the main
room of the museum.
WWW.AMCHAM.UZ
17

u.S. EmBaSSY nEwS
ABSENTEE VOTING INFOrMATION
FOr U.S. CITIZENS ABrOAD
SmaRT TRavElER
EnRollmEnT pRoGRam
(STEp) FoR u.S. CITIzEnS
Stay Informed
Sign up for our free Smart Traveler Enroll
ment Program (formerly known as
“Travel Registration” or “Registration
with Embassies”) to receive the latest
travel updates and information! Link:
https://travelregistration.state.gov/ibrs/ui
When you sign up, you will automatically
receive the most current information
we compile about the country
where you will be traveling or living.
You will also receive updates, including
Travel Warnings and Travel Alerts
(where appropriate). You only need
to sign up once, and then you can add
and delete trips from your account
based on your current travel plans!
Stay Connected
By connecting with us on the Smart
Traveler Enrollment Program, we will
be able to assist you better in the case
of an emergency, such as if you lose
your passport or it is stolen while you
are abroad.
We also assist U.S. citizens in other
emergencies, such as in natural disasters.
For example, after the earthquake
in Haiti, we evacuated over 16,700 U.S.
citizens and family members. During the
civil unrest in Lebanon in 2006 we assisted
nearly 15,000 U.S. citizens and
18
Business ConneCtions • 1’2012
family members, and in 2004 we helped
thousands more during the tsunami.
The travel and contact information
you enter into our Smart Traveler
Enrollment Program will make it easier
for consular officers in U.S. embassies
and consulates around the world
to contact you and your loved ones
during an emergency —including situations
where your family or friends
in the U.S. are having problems trying
to contact you with important news.
Stay Safe
We believe that a well-informed traveler
is a safer traveler. Our consular officers
around the world compile countryspecific
information, travel alerts, travel
warnings, fact sheets and emergency
messages to provide you with timely
and accurate travel information about
every country where you may travel.
We include reports on possible risks
and security threats so that you can
make informed decisions about your
travel plans and activities.
Stay informed by connecting with
us via our Smart Traveler Enrollment
Program so you can have safe and enjoyable
travels!
Your Privacy Is Paramount
All the personal information you provide
to us is protected under the
Privacy Act of 1974. This law prohibits
us from sharing the information with
anyone without your written authorization.
Certain exceptions exist, such
as when we need to share information
on a limited basis in order to protect
your safety and welfare in extreme circumstances.
New regulations for overseas voting
went into effect in the United States
in 2010. If you want to be able to vote
while you are outside the United States,
you should send a completed Federal
Post Card Application (FPCA) to your
local election officials every year. It's
easy to do—just go to www.FVAP.gov,
the official U.S. Government website
for overseas absentee voting information,
to start the process.
The U.S. Embassy strongly recommends
you get in the habit of submitting
a new FPCA every January
to ensure you receive ballots for all
the elections in which you are eligible
to vote during the calendar year.
In addition to the November general
elections held every other year,
you may be eligible to vote in federal
or state primary elections, special
elections, emergency elections, and
runoff elections.
LOOKING FORWARD TO THE 2012
PRESIDENTIAL PRIMARY ELECTIONS:
The first presidential primary elections
took place in January 2012. Plan
to submit a new Federal Post Card
Application (FPCA) as early as possible
in 2012 so your local election officials
have time to send you an absentee
ballot, and you have time to vote
and return it.
Questions on overseas voting can
be sent to VoteTashkent@state.gov.

FedeRAtion oF AccoUntAnts,
AUDITOrS AND CONSULTANTS
oF UzbekistAn Assists FURtHeR
implementAtion oF tHe Risk
CErTIFICATION PrOGrAM
Employees of financial organizations
face different risks in the course of their
work. Therefore, specialists are advised
to improve their knowledge in order
to more precisely identify and reduce
potential risks that may arise.
To implement this task, the Interna
tional Finance Corporation (IFC), a
mem ber of the World Bank Group in
the cooperation with the Global Asso
ciation of Risk Professionals (GARP),
introduced the Risk Certification
Program under the auspices of risks
ma nagement in nine countries of the
Com monwealth of Independent States,
including Uzbekistan. For details,
please refer to http://www.garp.org/riskeducation/rcp.aspx.
The initiative was implemented under
the framework of the IFC Azerbaijan-
Central Asia Financial Markets Inf rastruc
ture Advisory Services Pro ject
and the IFC Financial Crisis Ma na gement
Program. It was realized in coope ration
with the governments of Switzerland,
Austria, Finland and Holland.
In August 2011, IFC signed agreements
regarding cooperation with educa
tional institutions. The Federation
of Accountants, Auditors and Con sultants
of Uzbekistan (FAAC) is one of
these institutions. For more information
about FAAC, visit www.faac.uz.
In November 2011, five trainers from
FAAC participated in professional trainings
given by GARP; they successfully
passed their exams. The certified trainers
from the FAAC also participated
in the education program. Professional
trainers from GARP underlined the high
professional level of the FAAC trainers
at the Risk Certification Program (RCP).
The RCP is an excellent opportunity
for candidates to improve their knowledge
and understanding of the processes
of risk management from the point
of view of an international business. The
program is based on widely-recognized
conceptions of finance risks management
and is ideal for specialists working
in financial sectors, such as:
$ The program is fundamental and
suited to a wide range of participants.
It does not require professional experience
in the banking sphere;
$ Serves as a source of new knowledge
for specialists of all financial structural
departments that have been involved
in banking and/or financial risks
recently; and
$ Also applicable for employees in the
sphere of accounting, audit, internal
control, legal departments, information
technology, administration, research
and sales.
FAAC, through its partner in educational
programs, Sultanova Ta’Lim, will
AMCHAM UZBEKISTAN
plan pilot training RCP in April-May 2012.
The training is called Basis of Banking
Risks and is designed for all interested
specialists. It plans to conduct open
trainings twice a year—in April/May and
in October/November—close to the examination
sessions of GARP.
The certification exam is conducted
in Russian and is comprised of 60 multiple-option
questions. The duration
is 90 minutes. An attendant passes the
exam if 42 questions are answered correctly
(70 percent). Those successfully
passing exams will be able to demonstrate
knowledge and understanding
of the methods of risk management
in financial institutions as well
as a basic knowledge of the regulation
requirements provided by the Basel
Committee on Banking Supervision.
The FAAC, through its education
partner Sultanova Ta’Lim, has the honor
to propose to its members and all interested
parties a wide range of highquality
education programs and trainings
for further professional development
and support of the proper level
of accountants, auditors and consultants
of Uzbekistan.
Contact:
Address: Uzbekistan, 100128, Tashkent
Shayhontahur Street, 1A
Tel.: +998 (71) 235-8443,
+998 (71) 241-5869
Fax: +998 (71) 235-7688
E-mail: faac@faac.uz
Website: www.faac.uz
WWW.AMCHAM.UZ
19

wElComE aBoaRD
AMCHAM NEw COMPANIES
LEGALMAX is one of the leading law firms in Uzbekistan and
is recognized and recommended by such authoritative agencies
as Chambers & Partners and THE LEGAL 500. It has
a highly qualified multidisciplinary, multijurisdictional team
that provides legal assistance at the national and international
levels.
The main areas of LEGALMAX’s expertise are:
$ Intellectual Property;
$ M&A and Due Diligence, and
$ Litigation.
The law firm has an excellent track record of success. Its client
base consists of leading corporations and financial institutions
from all over the world including those from Canada,
Finland, Rus sia, South Korea, Spain, Switzerland, the United
Kingdom, and the United States.
Winncom Technologies is an international system integrator
of complex telecommunication solutions. Winn com
is headquartered in Cle ve land, Ohio, USA, and has offices in
Hungary, Po land, Russia, Ukraine, Uz be kistan and Ka zakhstan
with highly trai ned sales and technical professionals.
Winncom is able to provide the highest level of pre-sale consulting
and post-sale engineering support to its customers
and is proud of its portfolio of successful deployments
in Central Asia, Russia and Ukraine.
The quality of Winncom’s solutions and services is confirmed
by worldwide leaders in networks technologies. Their
20
Business ConneCtions • 1’2012
product offerings include, but are not limited to, the following
leading names in the industry: ALCATEL-LUCENT,
ALVARION, AXXCELERA, CISCO, Fujitsu, Hewlett Packard,
MOTOROLA, Microsoft, PROXIM, RAD Communications,
ZyXEL and many others.
Winncom Technologies is a CISCO GOLD PARTNER and
a unique company in Central Asia, holding Cisco Master
ATP (Authorized Technology Provider) Tele Presence specialization.
Winncom's extensive experience and engineering resources
make it possible for the company to identify, design and
implement the most effective and economical turnkey solutions
based on a combination of the latest technologies.
Winncom contacts:
35, 6 th Passage, A. Kahhar Str., Tashkent, 100025, Uzbekistan
Phone: +998 (71) 150-3939
Fax: +998 (71) 150-2679
E-mail: sales.ca@winncom.com
Website: www.winncom.uz
Real Info, LLC, is a licensed real estate services provider
in Tashkent with operations in the areas of residential, industrial
and commercial property items.
Real Info provides reliable information for those considering
to rent, lease-out, purchase or sell realty items in Tashkent
such as houses, apartments, commercial property, and
ground areas.
The company can offer up-to-date information on:
$ about 700 available (unoccupied) apartments and houses
in the database any time of the week in any district of the
Tashkent region;

$ about 5,000 photos, 50 videos, and detailed information
on more than 1,900 apartments for rent;
$ English-, Russian-, and Uzbek-speaking agents who can
guide clients through the city helping them find a place that
feels like home;
$ long and flexible office hours with customer support from
9 a.m. to 9 p.m.;
$ a professional approach with any and every request; and
$ reasonable commissions/tariffs with more than 40 payment
options.
Contact information for Real Info:
Phone: +998 (71) 148-3223, 150-3223
E-mail: real@realinfo.uz
Website: www.realinfo.uz
The foreign enterprise Daewoo Pack was created in Uzbekistan
in 1997 with 100 percent foreign capital.The founders of the
company are DND Inter na tional, Inc. (USA) and Daewoo
International Cooperation (Republic of Korea).
Since its formation, the company has specialized in producing
three-layer and five-layer corrugated board products
of various sizes and configurations. Moreover, it is the
sole producer of corrugated board products in Uzbekistan
from primary raw materials (100 percent cellulose), which
allows for a strong, water-resistant packaging.
The production department at Daewoo Pack is equipped
with imported equipment from South Korea.
During the period of its existence, the company’s production
has been popular among producers of tobacco, food,
textile, medical and other industries. For more than 14 years,
the experts at Daewoo have successfully engaged in the
manufacture and sale of corrugated cardboard, corrugated
packaging, cardboard boxes and various cartons of different
shapes, which are used by companies for packaging
and careful transportation of goods.
The company also offers a wide range of products from
corrugated cardboard with the use of modern technology,
as well as a guarantee for quality, reasonable prices
for all kinds of products, prompt delivery, clean and good
quality packaging and proposals in view of each customer.
The fundamental principles of the Daewoo Pack company
include:
$ the promotion of business partners;
AMCHAM UZBEKISTAN
$ effective communication, promoting success and prosperity;
and
$ strengthening relationships with its partners and developing
new business contacts.
Today Daewoo Pack is a stable, reliable company responsive
to market changes and the needs of itspartners.
TRUST OIL GROUP was established in 2009. The company
specializes in industrial and automotive lubricants and
lubrication products. TRUST OIL GROUP is also the exclusive
distributor of TOTAL LUBRICANTS in the territory
of Uzbekistan and is responsible for the marketing, sales
and technical support for TOTAL Lubricants in the region.
In a very short period, TRUST OIL GROUP has established
ties with such prominent names in the industry as General
Motors Uzbekistan, General Motors Powertrain Uzbekistan,
Lukoil, JV MAN, and many others, supplying them with specialized
lubricants and lubrication products.
Customers also enjoy full access to the resources of ANAC
Diagnosis, the world's leading corporate diagnosis system
for diesel engines and driveline components, based on the
analysis of used oil.
Virtec-Agro, an Uzbek-Russian-Ame ri can JV (Open Joint
Stock Company), was founded in 1996. Starting on Dec. 19,
2011, it was transformed into Virtec-Agro, Ltd. The main activity
of the com pa ny is poultry breeding aimed at meat processing.
The farm is located at Bozsuv settlement, Zangiota,
in the Tashkent region.
The total area of the farm is 280 hec ta res divided into
the following zones: broilers breeding zone, adult livestock
zone, incubator, slaughter shop, vehicle fleet, storehouse,
food storage, laboratory, water intake, corn fields,
and orchard.
Consumers include the main who lesale networks of Tashkent
such as Korzinka.uz, hotels, restaurants, cafes, and hospitals.
Virtec-Argo, Ltd. also supplies to other the regions
of the republic. #
WWW.AMCHAM.UZ
21

mEmBER pRoFIlE
INTErNATIONAL BUSINESS TrAVEL:
“TrAVEL FOr BUSINESS!”
International Business Travel (IBT)
was established in 2006 by the Uzbek-
Chinese Trading House Co., Ltd., together
with the Uzbekistan Chamber
of Commerce and Industry. The project
turned out to be yet another step
for development of the national business
environment as well as for establishing
sustainable business contacts
between Uzbekistan and partners
overseas.
IBT is the only Uzbekistan company
that finds its major activity
in the arrangement of business trips
in and out of Uzbekistan. IBT can
service and conduct tours to North
22
Business ConneCtions • 1’2012
and South America, Southeast Asia,
and European U nion countries.
Additionally, the company implements
the reception of foreign delegations
coming into Uzbekistan.
IBT has agent offices covering all of
Uzbekistan plus three offices overseas.
More than 2,000 corporate clients
use IBT, including Uzbekleasing and
other lease firms, the Ministry of Econo
my of the Republic of Uzbekistan,
and Almalyk ore and mining combine.
IBT is also the exclusive Uzbekistan
partner of the Canton Fair as well as the
Ministry of Commerce of the People’s
Republic of China. In 2012 the company
officially agreed to cooperate with organizers
of some of the largest exhibitions
in Germany and the United States.
Throughout IBT’s history, the company
has organized more than 100
se mi nars and business forums in Uzbe
kistan and more than 10 overseas.
In particular, the largest forums were
or ganized in conjunction with the Minist
ry of Commerce of the People’s
Republic of China and the organizers
of the Canton Fair 2010 in Tashkent
and Samarkand. During this event, the
agreement on cooperation with the
Uzbekistan Chamber of Commerce
and Industry was signed.

The Canton Fair was widely sanctified
and attracted more than 500 participants
in each city.
The main achievement of 2011 was
the organization of events dedicated
to meeting the business circles of
Uzbekistan and MaSyuyhun, former
deputy of the Ministry of Commerce
of China and the current senator and
president of the China Foreign Trade
Center.
Also in 2011, a tradition was established
to organize business forums
twice a year dedicated to the opening
the Canton Fair in Guangzhou, China,
together with local businessmen.
IBT has participated in international
exhibitions in Russia, Uzbekistan and
China. The company’s management
also participated in meetings of the
Shanghai Cooperation Organization
Business Council, which was held
in Ulan Bator, Mongolia, and the Baykal
Economic Forum and Expo China-
Eurasia, a foreign trade fair.
The company’s official website,
www.ibt.uz, became a Laureate in the
category of Best Website for Tourism
in the online festival UZ 2011.
Today IBT has a broad scope of activities
but its basic trends are:
$ Corporation Services—this includes
business travel service companies
on a regular basis with the basis
of all services in a “same window.” The
Corporation is a completely new service
in the Uzbek market. Its aim is to
provide competent travel planning with
the selection of the most convenient
routes and flights, hotel reservations,
car rental services, and other services
AMCHAM UZBEKISTAN
related to business travel for the client,
with the maximum reduction of costs.
Within these services, IBT takes care of
all its corporate clients and the organization
of any trips.
$ Organization of business forums
and seminars—IBT has the ability to organize
forums in any city in Uzbekistan
with the involvement of local entrepreneurs
and businesses.
$ Admission services in Uzbekistan—
the company operates and organizes
trips to all cities of Uzbekistan, including
business and educational tours.
$ Service ticket office—IBT is an agent
for major airline companies, including
Uz be ki stan Airways, Aeroflot, Korean
Air, Asiana, Turkish Airlines, Lufthansa
and others.
$ Services for visiting exhibitions—
the organization of trips to exhibitions
which consider the scope of the client,
including a complete package of services
according to exhibitions.
Professionalism, work efficiency,
and a personal approach allow IBT
managers to quickly and easily arrange
any individual and group-tour business.
Employees at IBT also assist in developing
a competent travel itinerary, selecting
the most convenient flight options
while taking into account all the
nuances and information about upcoming
exhibitions and fairs, as well
as the specific features of the country.
For more information, visit www.ibt.
uz or call +998 (71) 255-6077, or +998
(90) 981-1030. #
WWW.AMCHAM.UZ
23

mEmBER pRoFIlE
ANSHEr HOLDING LIMITED:
expAnsion oF Activities
The global financial turmoil that began
in 2008 has had a lasting impact on the
financial fabric weaving the globe. The
main players who paid the heaviest
price were the ones with the biggest assets
and worldwide reach. These global
financial institutions are still in the recovery
process with the most recent data
indicating possibilities of a new economic
sluggishness after two years of decent
growth. Fueled by post-crisis measures,
chances of a quick recovery and
sustained growth in the financial community
are dim, at best.
Financial hubs like New York and
London, as well as other major financial
centers, are still reeling from the spillover effects
of the financial troubles such as workforce
reduction, sharp drops in tax revenues
and an exodus of the biggest taxpayers
after heavy post-crisis regulation.
In these turbulent times, while the
established global financial community
is crying “foul” about the fragile situation
of financial revival, some savvy professionals
are finding extraordinary opportunities
in less-developed and muchoverlooked
regions.
The Commonwealth of Independent
States and countries in Europe and
Southeast Asia have attracted diminished
attention from investors as global
investment funds have flown between
established routes. These were satisfying
the needs of investors while also trying
to avoid the hassles associated with
exploring emerging markets.
Now for the first time since 2006,
invested capital trumped total funds
raised in these regions, suggesting that
an improving investment environment
is finally absorbing the accumulating dry
24
Business ConneCtions • 1’2012
powder and that global pools of capital
are zeroing in on the opportunities
in emerging markets.
This situation offers unique opportunities
for local investment banks and financial
advisors as the increased investor
attention brings additional volumes
and the need for local expertise. This creates
chances for investors to capitalize
on their core competencies and seek
strategic expansion strategies.
A clear demonstration of these shifting
synergies can be found in the expansion
strategy of Ansher Holding, Limited,
the leading financial and industrial powerhouse
in Uzbekistan that efficiently
utilizes opportunities created by recent
trends.
T h e w i d e g e o g r a p h i c s p re a d
of Ansher’s activities is mainly focused
in the region of the Great Silk Road, a reviving
transport corridor that fueled the
global trade that linked the West with
the East during the time of our ancestors.
This recent revival has once again
created tremendous opportunities in establishing
new East-West connections.
Ansher intends to effectively employ
its resources and skills in reestablishing
these historical connections.
As China’s economic importance has
grown, so has the attention to the structure
and health of the country’s economy.
The major priority of the Chinese central
government has been focused on the
economic development of western China,
which is less developed than the country’s
eastern industrial coastal regions.
Western China is home to one-third
of the country’s administrative provinces
and autonomous regions, covering
a 6.85-million square kilometer ar-
ea with a combined population of more
than 367 million people.In 2010 alone,
the central government of China invested
almost $100 billion into 23 new infrastructure
projects in western China.
After successfully implementing
several introductory projects in this
region, Ansher has started to actively
expand its services to effectively cover
western China. The company has already
opened a representative office
in Urmqi and has started to promote
its full package of services provided
by Ansher Holding companies.
Apart from China, Ansher is also active
in other countries aligned on the ancient
trade route connecting East with West,
including eastern Russia. While all countries
in Central Asia are covered by expansion
plans, special attention is being given
to Uzbekistan and Kazakhstan. While
the former is the region’s most populous
country and the latter has the largest territory,
both countries have experienced
high growth in investment activities while
still providing ample room for growth.
Additional attention for expansion
is being paid to the Caucasus and Baltic
states. Azerbaijan is currently experiencing
a boom in FDI, fueled by the oil
industry in the Caucasian states, while
the Baltic states are seeing an increase
in investment activities as they work
to reach European business standards.
As a consequence of this expansion,
Ansher is currently hiring a wide
range of professionals for its companies
as it works to increase its physical
presence in the regions. While new representative
offices and branches are being
opened in new markets, the workforce
in the existing branches is also being increased
with the aim of raising the effectiveness
of Ansher’s expansion plan.
The skillful and dedicated team
at Ansher, with its extensive professional
experience, is the main factor why the
chosen expansion strategy will be successful.
Ansher is on the right path to establish
itself as a major financial and industrial
powerhouse in the region, which
can provide a full scale of professional
services with rigid dedication, international
experience, local knowledge and
perfect execution. #

lEGISlaTIon
CHANGES IN TAX LEGISLATION
Presidential Decree No. ПП-1675
of 30 December 2011
Presidential Decree No.ПП-1675 of 30
December 2011 introduced amended
rates of certain taxes, as well as other
changes to tax legislation. In this newsletter,
we describe the most notable changes.
$ Minimum rate of personal income tax
for monthly taxable income of up to 5
MMW* is reduced from 10% in 2011 to 9%.
$ Unified tax payment rate for microfirms
and small enterprises engaged in
industry sector is reduced from 6% in
2011 to 5%.
$ Individual pension fund contribution
rate is increased from 4.5% in 2011
to 5.5%.
$ Property tax rate for individuals is increased
from 0.75% in 2011 to 0.9%. Tax
rates for individuals, owning flats and
houses in cities, with the total areas
more than 200 and 500 square metres,
are increased from 0.9% and 1.13%
to 1.1% and 1.35% respectively.
$ Excise tax rates for production of,
among other items, oil products, alcoholic
drinks and cigarettes are increased.
26
Business ConneCtions • 1’2012
$ As of 1 January 2012 retail trade of
gol den jewellery is subject to excise tax
of USD 10 for 1 gram of gold.
$ Obligation of maternity allowance
to be payable by employers (prior to
1 January 2010 it was paid at the costs
of social security bodies) is extended
until 1 January 2013.
$ As of 1 January 2012 legal entities
pro viding mobile services are subject
to monthly fee of Uzbek Soum 400 for
use of each customer number.
$ As of 1 January 2012 foreign commercial
organisations are subject to
state duty for accreditation of representative
office in Uzbekistan in the
amount of USD 1,200.
The following tax benefits to services
sector, previously effective till 1 January
2012, are extended until 1 January 2014:
$ Exemption from income (profits)
tax and unified tax payment for companies
engaged in certain financial,
banking, consumer and other services
as per approved list of services.
$ 10% reduction of the applicable income
(profits) tax or unified tax pay-
ment rates for service companies
on proceeds paid by plastic cards.
Tax Code is amended
as of 1 January 2012
There were a number of amendments
introduced to the Tax Code as of 1 January
2012. The most notable amendments
are as follows.
Corporate Income Tax (CIT)
$ List of taxable and non-taxable expenses
for the purposes of CIT has
been revised. The following items (previously
taxable) are added to non-taxable
expenses: lump sum bonuses not
relating to job performance, meal and
transportation costs or respective allowances,
and vacation allowance exceeding
statutory norms or related
monetary compensation (Articles 143
and 147).
withholding Tax (wHT)
$ If an Uzbek resident entity or permanent
establishment of a non-resident
has paid withholding tax on payment
to a non-resident at its own expense
(not by withholding method),
this Uzbek resident entity or permanent
establishment of non-resident
has a right for income tax refund within
12 months from the date of tax obligation
occurrence provided that the
respective non resident (i.e. recipient
of income) is a tax resident of a jurisdiction
that has a double tax treaty with
Uzbekistan (Article 155).
*MMW (minimum monthly wage) is set as Uzbek
Soum 62,920 (approx. USD 35) as of 1 December
2011 (Pre si den tial Decree No. УП-4337 of 3
November 2011)

$ In case of payment of income to
foreign banks and international interbank
communication systems (previously
only to foreign banks), the confirmation
of their tax residency is not
required for the purpose of application
of tax treaty provisions provided
that their residency can be confirmed
by publicly available information
sources (Article 155).
personal Income Tax (pIT)
$ For the purposes of PIT, meal and
transportation costs or respective allowances
provided by employers are
included in the employment income
(Article 174).
$ Income of individuals from sale of
non-residential premises and recurring
sale of residential property (i.e. if sale
is made more than 2 times in a consequent
12 months period) shall be subject
to PIT (Article 179).
$ Income received gratuitously from
close relatives in the form of shares and
stock is added to the list of PIT exempted
income (Article 179).
$ Minimum PIT rate of 9% is applied
to income from lease of property, gifts
from individuals (other than close relatives)
in the form of shares and stock, and
to income of individuals from sale of immovable
property other than occasional
sale of residential property (Article 181).
property Tax
$ For the purposes of property tax,
a definition of ‘construction in progress’
is introduced as objects not fully constructed
within the timeframe defined
by construction documents; in the instances
where such timeframe is not
specified—within 24 months from the
beginning of construction (Article 266).
Unified Social Payment (USP)
$ Income of foreign personnel paid
to non-resident legal entities as part
of secondment fees under personnel
provision agreements is subject to USP
(Article 306). Taxable base for calculation
of USP on such income shall be the
actual income of the foreign personnel
provided, but not less than 90%
of the secondment fee payable under
the personnel provision agreement
(Article 307).
$ The following payments exceeding
statutory norms are excluded from USP
exemptions: additional pay for frequent
travelling employees and shift workers,
fieldwork allowances, per diems for business
trips, compensations for personal
cars used for business purposes.
Exemption from USP on employment
income remitted to charity funds is also
abolished (Article 308).
Tax reporting and
payment deadlines
$ Deadlines for tax reporting and settlement
on corporate income tax, property
tax, infrastructure development
tax and contribution to Pension Fund
have been changed. We will be pleased
to provide the details at request.
Obligatory conclusion
of lease agreements
As of 1 January 2012 lease of buildings
or their parts and residential premises
between individuals is subject to conclusion
of notarised lease agreements.
Failure to comply with this requirement
may lead to imposition of a fine from 5
to 10 MMW (approx. USD 175,350).
Legalisation of foreign documents
As we mentioned in our Tax Alert 4 of
21 July 2011 the Republic of Uzbekistan
has joined the Hague Convention abolishing
the requirement for legalisation
of foreign public documents. Decree
of the Cabinet of Ministers No.307 of
17 November 2011 has established
Regulation on the procedure for issuance
of apostille effective as of 15 April 2012.
State duty for issue of an apostille comprises
10% of MMW (approx. USD 3.5).
Accreditation of representative
offices of foreign companies
Generally, representative offices are
not allowed to carry out any commercial
activities. An amendment to the
Regulation on accreditation and activities
of representative offices of foreign
commercial organisations in the territory
of Uzbekistan introduces one exception
whereby representative offic-
AMCHAM UZBEKISTAN
es of foreign airline companies have
a right to carry out commercial activities,
in which case they should be considered
as permanent establishments.
***
PwC would also like to draw your attention
to deadlines in respect
of PERSONAL INCOME TA X and
PERMANENT ESTABLISHMENTS filings.
PERSONAL INCOME TAX (PIT) return
for 2011 is due before 1 April 2012.
In accordance with the Tax Code, Uzbek
PIT is paid by tax residents—on their
worldwide income, and non-residents—on
their income received from
Uzbek sources. An individual is deemed
to be tax resident if he/she spends
183 days and more during any consecutive
12-month period ending in a calendar
year. The Tax Code further states
that if the foreign national has become
tax resident prior to 1 April of the year
following the reporting one (i.e. has arrived
in Uzbekistan prior to October 2011
and stayed through 1 April 2012), he is required
to file a PIT declaration for the
year of arrival (i.e. 2011).
PERMANENT ESTABLISHMENT
(PE) requirements for 2011 tax filings
are as follows:
$ Property Tax report is due before
25 January 2012;
$ Land Tax report is due before
15 February 2012;
$ Corporate Income Tax and Net
Profits Tax reports are due before
25 March 2012.
Please feel free to contact us with
queries on PIT and PE compliance requirements,
if any, or in case you need
support on other tax issues.
Tax Alert
Uzbekistan 9 January 2012 #
Legal Disclaimer: The material contained in this alert is provided
for general information purposes only and does not contain
a comprehensive analysis of each item described. Before taking
(or not taking) any action, readers should seek professional
advice specific to their situation. No liability is accepted for acts
or omissions taken in reliance upon the contents of this alert.
© 2011 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), or, as the context requires, individual member firms of
the PwC network. Eachmember firm is a separate legal entity and
does not act as agent of PwCIL or any other member firm. PwCIL
does not provide any services to clients. PwCIL is not responsible
or liable for the acts or omissions of any of its member firms
nor can it control the exercise of theirprofessional judgment or
bind them in any way. No member firm is responsible or liable for
the acts or omissions of any other member firm nor can it control
the exercise of another member firm's professional judgment
or bind another member firm or PwCILin any way.
WWW.AMCHAM.UZ
27

lEGISlaTIon
LATEST CHANGES
ChANGING The SIze OF The
ShAre OF CAPITAL IN BANkS
The board of the Central Bank of the
Republic of Uzbekistan made amendments
to the regulations on the procedure
for changing the size of the share
of capital shareholders, the name and
location, and the registration of the
amendments to the charter of the
bank. These mentioned amendments
entered into force on December 24,
2011. It has been accepted that in order
to change the name of the bank,
the shareholders must mutually agree
to do so and the consent of the Central
Bank of the Republic of Uzbekistan
is not required. Once the decision has
been made and amendments to the
charter, the shareholders, no later
than one month, must submit to the
Department of Licensing, the protocol
of the general meeting of the
shareholders with the decisions to re-
28
Business ConneCtions • 1’2012
name and text changes to the charter
of the bank regarding the renaming
of the bank. The Central Bank
has the right to refuse the proposed
changes under the situations in which
the new name can falsely misrepresent
the types of activities or services
offered or if it misleads current
and potential clients. This amendment
was registered by the ministry
of Justice of the Republic of Uzbekistan
on December 14, 2011.
1. Changes in Bankruptcy Law
The Cabinet of Ministers of the Republic
of Uzbekistan made amendments and
resolutions to the law ‘On Bankruptcy’.
As dated of December 2011, if a company
is declared bankrupt or is facing liquidation,
in accordance with articles 142
and 143 of the law ‘On Bankruptcy’, the
enterprise can hold a public auction
to sell their assets within three months.
If the enterprise does not do so, the
assets are then transferred to public
or governmental authorities or to proposed
creditors. The authorities, within
fifteen days after receiving the notice
shall bear all costs of its content.
2. “Goods of Own Manufacture”
A new legislature which entered force
on February 5 th 2012, passed by the
Ministry of Finance made amendments
to the rules for determining
goods, works or services of own production
for the application of privileges
and preferences when exported
for hard currency. This legislation expanded
the concept of the term ‘goods
of own manufacture’. Now, where products
are manufactured from the raw
material, which is a commodity of its
own company and transferred to the
enterprise for processing, the goods
should be considered for the owner
of the raw materials and for the processing
plant.
3. Changes in Legislation
on retail Trade
The resolution of the State Committee
of Uzbekistan on State property “On approval
of regulations on the organization
and conduct of public auctions
of the right of lifetime inheritable possession
of land for individual housing
of farmer facilities”. This legislation entered
into force on January 23, 2012.
Amendments have been made to the
Rules of retail trade in the Republic
of Uzbekistan on February 1, 2012. The
regulations introduced new concepts
such as “network marketing”, “network
organization” and “sales agent”.

Furthermore, an additional section was
introduced which describes the characteristics
of retail trade through Network
Marketing. It is established that the implementation
of a network organization
products with agents can be carried out
for non-cash based agreements concluded
between them however the
Network organization must have a license
for wholesale trade. Biologically
active addictives (BAA), pharmaceutical
and medical products are not permitted
alongside goods imported by individuals
who are not subject to businesses
or representatives of foreign
commercial organizations.
4. Limitation of Monopolistic
activity
According to the Law “On Competition
and Limitation of Monopolistic Activity
in the commodity markets”, agreements
(concerted actions) of competing
businesses or potential competitors,
with a total market share, in certain
product, thirty-five percent or more,
which have or may have the effect
of limiting competition are prohibited
and considered void whole or partly.
According to the approved Re gulations
and the Agreement are identified
as horizontal or verticalagreements.
Horizontal agreements are identified
in the form of establishing or main-
tainingfixed prices in one market,
matching supply and market sharing
on theterritorial basis and on a circle
of sellers or consumers.
Vertical agreements are identified
in the form of resale price maintenance
and the conclusions between noncompetingeconomic
entities at different
levels (supplier—customer, but not
independent of each other vertically
(limiting price at which the seller can
resold the goods), the establishment
of the exclusive rights to sell in the range
Of certain territory to the fulfilment
of the contract, forced reduction
of Buyer's choice of goods (works,
services).
The Law defines the procedure
to detect the presence of the Agreements,
the procedure for collecting
evidence and conducting analysis
to detect signs of the Agreements.
If there is evidence of the fact of active
Agreements, Competition authority
initiates a legal proceeding on violation
of the Law “On Competition
and Limitation of monopolistic activity
on commodity markets”, in accordance
with the Regulations on initiation
and review of cases involving violations
of the antimonopoly legislation,
on natural monopolies, consumer protection
and advertising, and takes measures
in accordance with the antimonopoly
legislation. #
AMCHAM UZBEKISTAN
INTErNATIONAL
CONFErENCE
on edUcAtion
Uzbekistan recently hosted an
international conference on
education that attracted a large
num ber of foreign participants
with quite a few from the United
Sta tes, including Ambassador
Adam Ereli, Principal Deputy
As sis tant Secretary of State—
Bu reau of Educational and
Cultural Affairs.
President Islam Karimov
ad dres sed the conference on
February 17 th with a detai led
and very encouraging speech
that highlighted the im por tance
of education and the commitment
by the Go vern ment
of Uzbekistan to reforming the
edu cational system to meet
the needs of the 21 st century.
AmCham was well represented
at the conference in ad -
di tion to meeting separa tely
with Ambassador Ereli, Jo nathan
Henick, Director of Press
& Pub lic Diplomacy—U.S. Depart
ment of State, and other
US Go vern ment Officials inclu
ding U.S. Am bas sador to
Uzbekistan Geor ge Krol. The
role of private edu ca tion was
discussed including AmCham’s
involvement and sup port for
local English langua ge schools,
business training centers, corporate
intern ships and possible
linkages with Ame rican
colleges or universities. Several
other initiatives including
AmCham’s support for the
Sa vitsky Museum in Nukus were
also discussed. #
WWW.AMCHAM.UZ
29

lEGISlaTIon
UzbekistAn mAcRoeconomic indicAtoRs
Real indicators
2006 2007 2008 2009 2010 2011
Nominal GDP (LCUbn) 20759 28186 36839 48097 61831.2 77750.6
Nominal GDP ($bn) 17.0 22.3 27.9 32.8 37.2 43.3
Real GDP growth (YoY, %) 7.3 9.5 9.0 8.1 8.3 8.3
Industrial production growth (YoY, %) 10.8 12.1 12.7 9.0 8.3 6.3
Prices
CPI (YoY, %) 14.2 12.3 12.7 14.0 7.3 7.6
PPI (YoY, %) 12.3 12.7 14.0 29.5 16.4 20.4
Budget
Budget balance (% of GDP) 0.1 -0.3 -0.5 1.1 1.5 0.2
Balance of payments
Exports ($bn) 6.6 8.9 11.6 11.8 13 15.02
Imports ($bn) 4.6 5.2 7.5 9.4 8.7 10.5
Trade balance ($bn) 1.6 3.7 4.1 2.4 4.2 4.5
Current account balance (% of GDP) 7.2 7.7 9.1 7.3 12.8 5.0
Social indicators
Population (mln) 26.5 26.9 27.2 28 28.2 29.5
Unemployment (% of labour force) A 4.1 4.0 4.0 4.2 4.1 4.0
A Estimates
Sources: State Statistics Committee of Uzbekistan, AFS estimates
This document should not be interpreted as an offer, or a solicitation of an offer, or an invitation, to engage in investment
activity, buy or sell any securities or other financial instruments or participate in project(s)/company(s) or part of the
project(s)/company(s) in any industry. This do cu ment does not constitute an advertisement or an offer of securities,
or related financial instruments. This document is for information purposes only. Recommendations, information, forecasts,
estimates, views or opinions mentioned herein are not intended to be complete and exhaustive.
30
Business ConneCtions • 1’2012

CommITTEE nEwS
COrPOrATE AND SOCIAL rESPONSIBILITy—
BUSINESS CONNECTIONS APrIL 2012
Members of the American Chamber
of Commerce (AmCham) in Uzbekistan
remained active last fall and winter with
corporate and social responsibility activities.
Invalid Day—Dec. 3, 2011
One hundred food packets were distributed
to APLA (Assistance for People
with Limited Abilities) in December
for Invalid Day, thanks to employees
at PwC. Each package contained a kilogram
of rice, flour, sugar and a liter
of oil. APLA helps children, young
adults and adults with limited abilities
and their families. PwC also made osh
for about 50 people at APLA in recognition
of Invalid Day.
new Year’s Gifts
Thirty children at an orphanage in Kibray
were given new sweatshirts and match-
32
Business ConneCtions • 1’2012
ing sweatpants to help celebrate New
Year’s. The warm, new outfits were provided
by employees of PwC.
Save Energy Campaign
Members of the Girl Scouts Juniors
Troop at Tashkent International
School ( TIS) launched an energyawareness
campaign at the school,
encouraging fellow students to save
energy. The girls created a variety
of handmade posters listing energy
awareness ideas. The posters were
hung throughout the school.
The Junior Troop girls also presented
a skit at the February elementary assembly,
giving students additional information
about how to conserve energy.
reduce, reuse, Compost!
The elementar y student council
at TIS is getting ready to make use
of its first batch of compost. Last
fall the students created their own
compost site on campus. Since then,
they have almost filled the compost
with organic food scraps collected
during elementary lunch and snack
times. Used coffee grounds and tea
bags from the faculty lounge have
also been collected; teachers have
helped by bringing in compost scraps
from home.
The compost should be ready
in April or May. Once it is, the organic
material will used to fertilize green areas
on campus, such as around trees,
bushes and in flower beds.
The students are part of the Green
Team, an offshoot of the elementary
student council.
The AmCham CSR committee is also
looking for more news from member
companies about their CSR activities
and upcoming events. If you have news
to share or are looking for assistance
with a CSR project, contact Ludmilla
Park, CSR chairman, at PwC. #

APPLICATION FOr CHAMBEr MEMBErSHIP
Chamber Membership Categories
1. Membership with the right to vote:
Corporate A open to all companies with revenues in excess of $100.0 million
Corporate B open to all companies with revenues in excess of $ 5.0 million but
less than $ 100.0 million
Corporate C open to all companies with revenues below $5.0 million
2.Membership with no right to vote - open to all companies:
Non-Voting Corporate A open to all companies with revenue in excess of $ 5.0 million
Non-Voting Corporate B open to all companies with revenue below $ 5.0 million
Non-profit-non-voting Non-voting non-profit membership is open to any duly authorized
accredited non-profit
Non-resident organization with no authorized representative in Uzbekistan
All categories give the member access to a full range of services and benefits including business
de ve lopment 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 Corporate A USD 4,000 G Non-voting Corporate B USD 500
G Corporate B USD 3,000 G Non-voting non-profit USD 500
G Corporate C USD 1,500 G Non-resident USD 500
G Non-voting Corporate A USD 1,000
2. I/We agree, if accepted, to be bound by the Chamber’s rules and regulations, and to pay the appropriate
annual dues:
Name of company
Address
Tel. Fax E-mail
Head of firm in Uzbekistan:
Name Title / Position
AMCHAM UZBEKISTAN
WWW.AMCHAM.UZ
33

AMCHAM UZBEKISTAN
Representatives:
(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 USD10,000– 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.
34
Business ConneCtions • 1’2012

MEMBErSHIP LIST
CoRpoRaTE a
CNH France S.A.
Paul Wakefield, 120-7450
Ernst &Young
Anvar Azamov, 140-6482
General Motors Powertrain
Uzbekistan
Juergen Spendel, 140-5540
Microsoft RA LLC
Tatyana Telegina, 104-1412
NUKEM
Alexander Michshenko, 281-5224
PricewaterhouseCoopers
Abdulkhamid Muminov, 120-6101
Rio Tinto Mining
and Exploration Limited
Frederick Darby, 232-2032
Sasol Synfuels International
Elfranco van Loggerenberg
Uz-Prista
Maksim Lilov, 120-6776, 244-0123
CoRpoRaTE B
Avialeasing Aviation Company
Igor Smirnov, 120-4950, 120-4952
Central Asia Seed Company
Azizkhan Akhmedov, 291-0073
Colgate–Palmolive
Shobhit Malhotra, 252-3014
Tethys Uzbekistan B.V.
Bakhrom Salakhitdinov, 237-5485
CoRpoRaTE C
AKTE LLC
Hugo Minderhoud, 252-2402
BNZ Industrial Support
Nargiza Akhmedova, 254-4128
"Bo'stonlig Sut" JV
Jamilya Ibragimova, 120-4965
FC Daewoo Pack
Jang Cheon Ho, 295-0573
InterConcepts Inc.
Charles L. Rudd, 239-1491, 239-1302
OLSOFT
Evgeny Olevskiy, 256-3291
SEAF-SME Investment
Management
Donald Nicholson II, 239-1459
Transcontinental JV LLC
Alisher Khasanov, 120-3838
AMCHAM UZBEKISTAN
WCH Service bereau
Alexander Tulupov, 254-3621
non-voTInG CoRpoRaTE a
Ansher Holding Limited
Nazim Kabilov, 268-9970
Air Astana in Uzbekistan
Serik Rys-Uly, 140-3002
Badri's Global Co., Ltd.
Thogral Badri, 215-6429
Carlsberg Uzbekistan
John Gillan, 140-9999
Chartis Uzbekistan
Hasan Mamadjonov, 140-3800
Colibri Law Firm
Zafar Malikov, 120-4778
Deloitte & Touche LLC
Nasiba Nasretdinova, 120-4445
Everest Impex Plus
Mukhtor Umarov, 402-2000
Furniture Uz Ltd.
Evgeny Rojkov, 269-4258
FE COSCOM LLC (TM Ucell)
Oguz Memiguven, 559-0202
Hotel Dedeman Silk Road
Tashkent
Gianluca Tozzo, 120-3700, 234-0101
Hotel Intercontinental Tashkent
Sacha Jurva, 120-7000
Ingo-Uzbekistan Insurance
Company
Rustam Turaev, 150-9999
JP Morgan Chase Bank N.A.
Uzbekistan
Tokhir Sultanov, 140-3770
Ram Dis Ticaret
Lyubov Belokon, 252-6779, 252-6781
Santos Limited
Edo Veenstra, 354-3005, 238-9455
SEP Nestle Uzbekistan
Philipp Gorbunov, 140-0600
Trust Oil Group
Jamshid Yakubov, 150-8010
UzKDB Bank
Jang Jin Kim, 120-8000/01
non-voTInG CoRpoRaTE B
Abris Distribution Inc.
Denis Khegay, 140-5300
AFS-Research Company
Aleksey Kirilov, 234-9611/12
Ahlers International
Diana Tomena, 252-7120, 252-1776
Anglesey Food
Zafar Khashimov, 267-3884
WWW.AMCHAM.UZ
35

Aleks Treyding LLC
Natalya Demasova, 120-4661
Audit-As
Vera Bell, 214-6012
CafeJUM
Kamil Khodjaev, 120-6189
Carolina Technologies, Ltd.
Alexander Veksler, 281-4362/63/64
Classic International
Dr. K.M. Chaudhary, 276-0223
SNR Denton CA Limited
Marla Valdez, 120-6946/7, 255-6070
Donaev Management
Consulting
Bakhodir Donaev, 239-1183
Education Standard Consulting
Group
Elena Sergeeva, 268-7544
Eko Investors
Martins Riksis, +3712 922-0216
Elan Express LLC
Denis Sautov, 150-2545
Globalink
Khalid Farooq, 129-9900
Gosselin World wide moving
Pim Sterckx, 255-3266, 186-6233
Grant Thornton
Nematulla Karimov, 234-4632
Holos Ltd.
Khalmurat Manaev, 252-7185/86
JV Indorama Kokand Textile LLC
Deepak Raina, 552-1558
36
AMCHAM UZBEKISTAN
Business ConneCtions • 1’2012
International Caravan Travel Serice
Gulnora Khurramova, 237-1241
SE “Ishan Group”
Khwaja Zia Ahmed, 263-6712
KN Ibrakom FZco
Riza Tosun, 254-0019
Legalmax Law Firm
Mukhmmadali Makhmudov, 212-4732
M&M Militzer & Muench Uzbekistan
Khurshid Kasimjanov, 140-0003
Move One Relocations
Atabek Alimdjanov, 235-7390
Oasis Fes LLC
Dale Henry, 237-1324
Prom Audit Ltd.
Farkhad Makhmudov, 233-0152
Real Info LLC
Alisher Niyazov, 148-3223
Renessans Tour International
Adolat Nasirova, 274-1290
RKeeper-Uzbekistan
Kakhramon Shukrjanov, 235-7370
Samarkand Airways JV LLC
Aleksander Shevchenko, 120-3046
Sitara International Ltd.
Khadim Poonja Nathoo, 281-4148
Sogda Tour Ltd.
Saad Al-Haire, 268-0284, 268-1070
Sushen Medicamentos Pvt Ltd.
Bharat shah, 150-0214
Tekser Dresser Wayne
Kerem Dagoglu, 249-4160
Uzbek Association
for Consulting Engineers
and Constructors
Mirodil Mirakhmedov, 232-4352
Uzbek Chinese Trading House Ltd.
Hikmat Abdurahmanov, 254-0005
“Uztex Chirchik” JV LLC
Fazilettin Siraceddinov, 712-9393
JV OSC “Virtec-Agro”
Mirpayoz Mirsaatov, 215-5152
Winncom Technologies Corp.
Ferdaus Sabirova, 150-3939
non-pRoFIT non-voTInG
British School of Tashkent
Raymond Finch, 262-6020
Canadian Consulate
Alexander Antonov, 120-7270
Federation of Accountants,
Auditors and Consultants
of Uzbekistan
Dilnoza Sultanova, 241-0497
JETRO
Toru Suehiro, 120-5591
National Democratic Institute
for International Affairs
Clark Plexico, 255-9099
OSCE
György Szabo, 140-0468/69/70
Tashkent International School
Robert Brindley, 291-9671/72/70/67
HonoRaRY mEmBERS
ADB
Kazuhiko Higuchi, 140-1920
UNDP
Anita Nirody, 120-3450, 120-3451
World Bank Country Office/IFC
Takuya Kamata, 238-5950, 238-5928
IMF Resident Representative
Office
Galina Kostina, 233-4243
non-RESIDEnT
National Bank of Pakistan
Dildora Yuldasheva, 237-1991
University of New Mexico
Gregory Gleason, 49 (8821) 750-2526
Thomson Reuters
Michail Borisiewicz, 651-7142
non-voTInG InDIvIDual
Angie Cairns Kuschel, 930-0261
Ilkhom Khodjakulov, 281-3080
Jamshid Miralimov, 237-1024

BOArD
OF DIrECTOrS
2012
vice-president:
Juergen Spendel
General Motors
Powertrain
Bakhrom
Salakhitdinov
Tethys Uzbekistan B.V.
Frederick Darby
Rio Tinto Mining and
Exploration Limited
Treasurer:
Hugo Minderhoud
AKTE LLC
Elfranco
van Loggerenberg
Sasol Synfuels
International
Mirpayoz Mirsaatov
OLSOFT
president:
Donald Nicholson II
SEAF-SME
Investment
Management
Secretary:
Alex Michshenko
NUKEM, Inc.
Abdulkhamid
Muminov
PwC
Tatyana Bystrushkina
Executive Director
AMCHAM UZBEKISTAN
Business Connections is published
3 times a year for American
Chamber of Commerce in Uz beki
stan. Copyright 2012.
All rights reserved.
Executive Director:
Tatyana Bystrushkina
Editorial Staff:
Donald Nicholson II, Hugo
Minderhoud, Tatyana
Bystrushkina, Lyubov Belokon,
Ludmila Park, Angie Cairns
Kuschel, Alexey Kirilov, Dale
Henry, Fabian Olarte
Contributing Authors:
Donald Nicholson II, Tatyana
Bystrushkina, Angie Cairns
Kuschel, Ludmila Park, Aziz
Payziev, Alexey Kirilov, Fabian
Olarte
Address: 2, Afrosiab Street,
Tashkent, Uzbekistan, 100031
Phone: +998 (71) 140–0877
Fax: +998 (71) 140–0977
E-mail:
amcham.director@amcham.uz
Website: www.amcham.uz
The AmCham Uzbekistan and
authors declare that they have
compiled this document carefully
and to the best of their knowledge.
However, no warranty or
representation is made to the accuracy
of completeness of the information
contained in this document.
The AmCham Uzbekistan
and authors assume no liability
whatsoever for any damage resulting
from the use of this document
or its contents.
This free-of-charge advertising
bulletin is not considered to
be a subject of mass communication
and may be distributed
free of charge without registration
among limited number of entities
and individuals.
Designer:
kakhramon@abidjanov.uz
Printed by “OMAD PRINT” Ltd.
Uzbekistan, Tashkent,
4, Amir Temur str., Center-5
Tel.:+998 (71) 234-6874
Fax: +998 (71) 234-9679
WWW.AMCHAM.UZ