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Uzbekistan to launch privatisation drive in '99 | (Reuters) |
Uzbekistan, hungry for foreign investment, will
begin privatising many of its largest state companies next year, an official said on
Wednesday.
"From 1999, the government of Uzbekistan will begin selling off shares in
companies involved in the basic sectors of the economy, and will do so with the
participation of international consultants," a State Privatisation Committee official
said.
The cabinet had approved an order aimed at speeding up foreign investment
through privatisation, he told Reuters.
The former Soviet state has been slow in opening up its economy, allowing only
a handful of Western firms to invest in some projects in the car making, gold and
tobacco sectors.
Discouraged by foreign exchange controls, foreign investors have been slow to
pursue projects in the mostly farm state of 23 million people.
The prize assets among the 30 companies set to go under the hammer in the next
two years include a 46.5 percent stake in the Almalyk Metallurgical Plant
copper producer, which could raise up to $400 million for state coffers.
Almalyk, and companies such as the Tashkent Aviation Production Co, the
National Bank of Foreign Economic Activity and the Uzkabel cable plant would
be offered in 1999.
In 2000, the sell-off list includes the Uzmetkombinat metallurgical plant, the
Fergana oil refinery, Tashkent airport, the Elektrokhimprom chemicals group in
Chirchik and the Kyzylkum Phosphorous Combine.
The stakes in the 30 firms-- which would be valued by Western consultants--
will be sold off one by one, with shares of between 25 and 50 percent on offer.
The government order includes a list of another 159 medium and large firms
whose shares would be sold to foreigners on the stock and over-the-counter
markets.
Another 69 medium-sized companies would be sold off wholesale through
tenders and investment transactions in 1999 and 2000, the state order said.
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President announces amnesty on Constitution Day
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President Karimov's special decree announced amnesty before the forthcoming
December 8 Constitution Day, which is a national holiday. It has become a tradition to
proclaim amnesty on Constitution and Independence (September 1) Days. Prisoners who are women over 60,
World War Two participants, minors, first and second group disabled persons, inmates convicted
up to three years and those, convicted up to five years, who have served a quarter of their
sentence term will be entitled to the amnesty and freed.
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President appoints new minister of communal services
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President Islam Karimov dismissed long-ruling minister of communal services
Viktor Mihaylov and appointed Gafur Muhamedov instead. In the last three months
the president dismissed three vice-premiers, three ministers and two governors. Sources in
the government say that this is not the end of the anti-corruption campaign yet.
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FSB denies allegations about Russia's trace in conflict
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The Russian government today dismissed allegations that its
secret services provoked a recent confrontation between Uzbekistan and
Tajikistan, two ex-Soviet republics in Central Asia.
On Monday, Uzbek President Islam Karimov accused the Russian Federal
Security Service, the KGB's main successor, of fomenting a recent dispute
between his nation and neighboring Tajikistan.
The dispute centered on an anti-government rebellion last month in Tajikistan,
which was put down after several days of fighting that claimed 334 lives.
Tajik authorities accused Uzbekistan of helping train the rebels, commanded by
former Col. Makhmud Khudoberdyev, and harboring them after their defeat.
Uzbekistan has denied the claims.
Karimov claimed a Russian secret service officer, an ethnic Tajik, fomented the
uprising. The security service acknowledged that the officer, Rizo Tursunov, is
an agent but said he had no role in the incident.
"Any claims about the Russian secret services' involvement in the exacerbation of
the Uzbek-Tajik relations are absolutely groundless," the Russian foreign ministry
said in a statement.
Tajikistan, an impoverished nation reeling from several years of civil war, has
been plagued by frequent clashes despite a peace deal signed last year by the
Russian-backed hard-line government and the mostly Islamic opposition.
"Our efforts are aimed at consistent support of national reconciliation and
ensuring peace" in Tajikistan, the Russian foreign ministry said. "Russia isn't
pursuing any other interests in the region."
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"Uzbekistan isn't involvement in Tajik mutiny"
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Uzbek President Islam Karimov
made an official statement on Monday denying his country having a hand in the
recent armed mutiny in Tajikistan.
"Uzbekistan has nothing to do with the armed mutiny, headed by Makhmud
Khudoiberdyev, in the north of Tajikistan," Karimov told reporters following a
working visit to Uzbekistan by Kirghiz leader Askar Akayev.
Karimov emphasized that a statement by Tajik President Emomali Rakhmonov
about Uzbekistan's involvement in the recent events had nothing to do with the
reality.
That is the first time the Uzbek president has made an official statement about
the mutiny.
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Karimov says Tajiks stoking row over rebels
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Uzbek President Islam Karimov on Monday
accused forces close to Tajik leader Imomali Rakhmonov of trying to derail
relations between the Central Asian neighbours.
The former Communist boss also slammed Russian secret service members for
provoking anti-Uzbek sentiment following an armed uprising in northern
Tajikistan earlier this month when over 300 people died.
"Some of the forces around Rakhmonov, a clan, want very much to bring the
course of events to an international, inter-governmental conflict," Karimov said.
Karimov also said Rakhmonov's comment that the Uzbek leadership helped to
plot the revolt, which he described as an attempted coup, was the result of
"hysteria."
Tajik rebel forces, led by an ethnic Uzbek, launched an assault on the Tajik
region of Leninabad, accusing Rakhmonov's government of genocide against
ethnic Uzbeks.
There was no immediate comment from Tajik authorities.
Karimov said some of Russia's forces of 20,000, patrolling its leaky borders
with Tajikistan and monitoring a 1997 ceasefire between the secular government
and Islamic opposition, were involved in the provocation.
"Helping them in this provocation are some Russian secret service troops."
Karimov said he did not see any involvement in the provocation by Russian
President Boris Yeltsin or Prime Minister Yevgeny Primakov.
Karimov, who has led his nation of 24 million with an iron fist since Soviet times,
said the border with Tajikistan would be strengthened as a result of the events
and that a visa regime could be introduced.
The incident and subsequent recriminations have driven a wedge between the
two neighbouring states after they had shown signs of willingness to unite against
the spread of Islamic fundamentalism from Afghanistan, which borders them
both.
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Akaev to discuss gas debt in Uzbekistan
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Kyrgyz President Askar Akayev will
leave for Uzbekistan on Monday on a one-day working visit for negotiations on
the Uzbek gas supply to Kyrgyzstan.
The president plans to convince the Uzbek authorities of the need to ease
conditions of the gas supply in 1999 and solve problems of the Kyrgyz gas debt,
General Director of the Kyrgyzenergo energy company Bakirdin Sartkaziyev
told Itar-Tass on Sunday.
Kyrgyzstan does not have its own gas stock and fully depends on imports from
adjoining Uzbekistan at a price of 55 dollars per one thousand cubic meters of
gas. The president plans to propose a 20 percent cut of the gas price in
Tashkent, Sartkaziyev noted.
Kyrgyzstan "would like to pay 70 percent of the gas debt to Uzbekistan with
foods and commodities," he remarked. Under the previous agreement, it paid 50
percent in hard currency and 50 percent with foods and commodities. By
November 1998 the debt amounted to 33 million dollars, and Uzbekistan
threatened to stop the gas supply in case the debt was not paid by December 1.
Sartkaziyev hopes that "mutual understanding will be reached in Tashkent."
Kyrgyzstan also plans to look for alternative gas sources. Back on November
25 Kyrgyz Prime Minister Kubanychbek Zhumaliyev had negotiations with the
Russian government on a possibility of the gas supply by Gazprom in exchange
to Kyrgyz commodities. The Russian government promised to consider the
proposal, sources at the Kyrgyz governmental department for relations with the
CIS told Itar-Tass. According to department head Kasym Isayev, "the gas
could be supplied from Uzbekistan in payment of its debt to Russia." A possible
gas supply from Turkmenistan with the assistance of Russian Gazprom is
considered as well.
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Akaev negotiates Uzbek gas exports
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Kirgiz President Askar Akayev in
Monday visits Tashkent, Uzbekistan's capital, for one-day talks on Uzbek gas
exports to Kirgizstan.
The director of Kirgizenergo company, Bakirdin Sartkaziyev, told Itar-Tass that
the Akayev wants to negotiate softer terms of Uzbekistan's gas deliveries in
1999 and solve the issue of Kirgizstan's gas debt.
Kirgizstan has no gas fields and imports all its gas from Uzbekistan at 55 dollars
for 1,000 cubic metres.
Sartkaziyev said the Kirgiz side would bargain for a 20 per cent lower price at
the talks in Tashkent.
He said Kirgizstan "would want to repay to Uzbekistan 70 per cent of the gas
debt with goods and food".
Under an earlier contract, Kirgizstan pays 50 per cent of its debt in the hard
currency and 50 per cent in commodities and food.
Kizrgizstan's gas debt to Uzbekistan has totalled 3.3 million dollars by
November, and the Uzbek side warned that it would stop gas deliveries unless
the monetary part of the debt is cleared by December 1.
Sartkaziyev said he expected that an "understanding will be found" at the
Tashkent talks.
However, Kirgizstan will look for alternative gas imports. Prime Minister
Kubanychbek Zhumaliev on November 25 held talks in Moscow with the
Russian government on Gazprom's gas exports in exchange for Kirgiz
commodities, a spokesman at the Kirgiz governmental department in charge with
CIS contacts told Itar-Tass.
The spokesman said the Russian government promised to consider the deal.
Department chief Kasym Isayev said "the gas supplies could come to the
republic from Uzbekistan against the debt of this country to Russia."
Another considered option is Turkmenistan's gas exports to Kirgizstan with
assistance from Russia's gas monopoly Gazprom.
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Minimum wages in Uzbekistan increased
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The President issued a decree this week announcing the indexation of wages by 1.2-fold
beginning January 1, 1999. Last time wages were increased on July followed by the immediate
increase of prices. There is no doubt that prices this time will rise even before people will get
their increased salaries. So the new minimum salary in Uzbekistan will be 1,320 soums that is 12
dollars at the Central Bank rate or 3.5 dollars at the unofficial rate.
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President meets Russian governor
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President Karimov met with visiting governor of the Russian Orenburg oblast Vladimir Yelagin.
Uzbekistan has had fruitful cooperation with this part of Russia. Orenburg is even one of the
major partners of Uzbekistan among CIS oblasts. For the past nine months the trade turnover
was 5.6 million dollars. Orenburg maintains direct contacts with Uzbekistan's Samarkand,
Bukhara, Kashkadarya, Andijan and Khorezm regions. There are ten Uzbek companies
operating in Orenburg that manufacture commodity goods and do assembling and maintenance
works in the energy sector. Mr. Yelagin said that he came to Uzbekistan to make more contacts
and expand the economic cooperation with the regions of Uzbekistan.
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Japanese vice-speaker in Uzbekistan
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A parliamentary delegation from Japan led by its vice-speaker Kozo Watanabe was received at
the Oliy Majlis by Chairman Erkin Khalilov. The speaker of the Uzbek parliament told the visiting guests about existing laws and said he was
glad to expand relations with the Japanese parliament. Both sides spoke about the cooperation
of the Oliy Majlis with European and Asian states. They discussed ways to create laws that are
applicable in a democratic society. The Japanese delegation was then given a tour inside the
Oliy Majlis.
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Uzbek-Turkish JV to produce meat
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The consumption of meat in Uzbekistan is way lesser than in Europe or America and the Uzbek
State Company for poultry production is to blame for the poor work. However there are some
private companies that are trying to minimize the shortage. An Uzbek-Turkish joint venture
Golden Wing has a poultry farm in Bostanlyk. To be more correct they re-equipped and
improved the existing state farm by investing two million dollars. During one year of the
company's operation they have sold 600 tons of meat. Their target for the next two years is 3
and 15 thousand tons of meat sale respectively. The company also has a Golden Wing
restaurant in the center of Tashkent which serves meals from their own products.
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Tashkent Mayor's Office tries to save the environment
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Seems like the city officials have found a way to make the environment cleaner. The capital as
well as other cities have suffered from the shortage of public refuse-bins and garbage boxes and
transportation to convey them. As a result 600 garbage trucks, which is a quite small number for Tashkent, wouldn't cope with
the four and a half thousand tons of everyday wastes that would be stockpiled for several days
causing infectious diseases like hepatitis and making streets look bad. Now in Tashkent
neighborhoods you can see special fenced public dumps with dozens of plastic waste-bins
produced locally for specific kinds of waste. A guard will watch after the bins and will make
sure that people are using them for appropriate garbage. Currently there are 178 such dumps in
the city and additional 550 are expected to be produced soon. This project cost the city budget
around 12 to 15 million dollars.
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Traffic accidents happen fewer
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A traffic security commission under the Cabinet of Ministers held its meeting and made a report.
In the past ten months over 8 thousand and a half traffic accidents occurred in the country killing
almost one thousand six hundred people. These figures are smaller than those last year, but even
the death of one person is never little. The commission spoke about improving the work of
traffic security services, whose negligence may let a drunk driver commit a crime. In 83
accidents truck drivers hit people driving while intoxicated.
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Human story about long-lived people
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People have always wondered what the secret of long-life was. In an attempt to reveal this
secret, I met with a handful of old people who crossed the 100-year mark. Healthy
environment, prosperous economy, high-living standards and advanced medicine are definitely
the main factors of long-life, but most of the people I met said that hard-work was the secret of
their century of life.
106-year-old Zulayho Khojanazarova is five years older than her neighbor Haitova Aqiloy. The
two friends and neighbors havent seen each other for such a long time, that when they met they
were surprised to see each other still alive. They have lots of descendants who take care of
them. In Uzbek traditions the sons wife has to look after his parents. The 111-year-old
grannys 75-year-old daughter-in-law is still with her husbands parents. The two neighbors said
that they had worked in a collective farm and had always competed with each other. Even now
they seemed to be competing to outlive one another.
The 111-year-old Qodirqul Pirimqulovs grandchildren study overseas. The old man says hes
never been outside of his neighbourhood and has spent his life working hard and growing cotton
and grain in a collective farm. He wishes he had been born now, because he believes that
Independence brought great possibilities for young people.
What is a dream for most people is the reality for these individuals. And we would think that
they have all the reasons to be happy. However, it is not always the case. 116 year-old Mother
Turgunoy didnt seem to be excited from long-life. She outlived all of her eight children and
despite a number of grandchildren and great-grandchildren she feels lonely.
The happiest of all was Lutfiya Shodieva, who is 122 years old, the oldest person in
Uzbekistan. She is the mother of six children. She also has 15 grandchildren, 50
great-grandchildren and 10 great-great-grandchildren. Her husband died 30 years ago and she
did not re-marry. May be because shes been loyal to him or perhaps she hasnt found a man
older than herself. All her life she worked in a collective farm. In mid 20s, during the first years
of the Soviet state, she worked closely with Soviet Uzbekistans early leaders. The only reason
she is still alive, she says, is because she never stopped working hard.
According to the statistics from the Ministry of Social Security, there are almost 700
centenarians in Uzbekistan and there are 413 people who are over 100-years-old.
My grandfather died this year when he was 101 and my grandmother died two years ago at the
age of 98. There is no doubt that if I had asked them what the secret of long-life was, they
would have surely told me: Hard work. (Odil Ruzaliev)
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