The Embassy of Ukraine in Tashkent has held a press conference on the occasion of the 15th anniversary of the diplomatic relations between Uzbekistan and Ukraine, UzReport.com reported.

During the meeting with the press, Ukrainian Envoy V. Pohvalskiy said: "Ukraine was one of the first countries to announce its interest in contacts with the Republic of Uzbekistan. The foundation for the interstate relations between independent Ukraine and Uzbekistan was laid through the Agreement on the Bases of Interstate Relations of 28 October 1991 and the Protocol on consultations between the Ministries of Foreign Affairs of the two countries.

Diplomatic relations between the two states were officially established on 14 August 1992. Ukraine’s Embassy in Tashkent has been operating since 1993. The Uzbek Embassy to Ukraine has been working since April 1995.

Since the establishment of diplomatic relations between Ukraine and the Republic of Uzbekistan 152 bilateral agreements and legal documents have been signed, including 17 interstate, 80 intergovernmental, 45 interdepartmental and 10 agreements on inter-regional cooperation."

Speaking of the results of economic cooperation, the Ambassador Extraordinary and Plenipotentiary of Ukraine said: "About 40 Uzbek-Ukrainian joint ventures operate in Uzbekistan, primarily in food, furniture, textile and chemical industries, and construction. The offices of 12 Ukrainian firms are accredited in this country.

Also, about 30 joint ventures established in partnership with Uzbek entrepreneurs operate in Ukraine. Their areas of specialization include consumer goods production, export supplies, services rendering, etc.

Ukraine is one of Uzbekistan’s largest trade partners, currently ranking 6th according to the volume of bilateral trade. Preliminary results of the first half of 2007 indicate that bilateral trade between the two countries exceeded US$415 million (up 46.9% against the same period of the previous year). Ukrainian export to Uzbekistan is increasing especially dynamically (up 56.1%). Ukraine’s import from Uzbekistan has also increased by 41.1%.

The presence of Ukraine’s largest companies in Uzbekistan has expanded: Interpipe-Ukraine LLC (steel pipes and other metal ware), Kharkov Tractor Plant, Borschagovsky Chemical-Pharmaceutical Plant, have opened offices here. Ukrainian advanced technology is being integrated in the basic industries of Uzbekistan’s economy. Thus, in March 2007 a crushing and transfer complex, designed and assembled by the Ukrainian Azovmash was installed in the Muruntau gold mine – the main resource base of the Navoi Mining and Smelting Kombinat.

In the oil and gas and energy sectors

Ukraine is a major contributor to the modernization and development of one of the strategically important sectors of Uzbekistan’s economy – the oil and gas industry. It is one of the largest suppliers of equipment and component parts for the industry’s needs, including gas-distribution stations, compressors and pumps, drilling equipment and turbine gas-expansion machines.

A bright example of the positive results of cooperation in the energy sector is successful participation of the Sozh-Invest, Turboatom, and other Ukrainian companies in the construction of Shahimardan hydropower station on the Koksu River.

On 23-24 May this year, a delegation of the Ministry of Fuel and Energy of Ukraine headed by the V.P. Chuprun visited Uzbekistan to discuss specific issues concerning the development of Ukrainian-Uzbek cooperation in the oil and gas sector and hydropower engineering. The parties discussed the prospects of cooperation in modernization and rehabilitation of a number of hydropower stations in Uzbekistan, small energy, particularly the possibilities for Ukraine to participate in the construction of small hydropower stations on the territory of Uzbekistan, as well as in the development of non-traditional forms of electrical power engineering.

A week of Ukrainian energy-saving technology was held in the early August in the capital of Uzbekistan. At the presentation, Ukrainian entrepreneurs presented the latest achievements of the technical R&D departments of their enterprises. The managers and representatives of large industrial and scientific plants and institutes of Ukraine, including Prompribor (Ivano-Frankovsk), Konvector (Uzhgorod), the Institute of Gas of the National Science Academy of Ukraine (Kiev) also visited Uzbekistan. The Institute of Gas presented several complex programmes for the efficient utilization of gas by the thermal plants.

The production of artificial gas – from wood, peat, husks, and wastes of industrial production is in the process of development. Ukraine is prepared to work on joint projects.

During the week of its visit in Uzbekistan, Ukrainian delegation met with the management of Uzbekneftegaz (Uzbek Oil and Gas) Company, UzStandard, UzAutoSanoat (Uzbek Car Industry), UzAutoYol (Uzbek Motor Roads), UzUgol (Uzbek Coal), the heads of Tashkent and Samarkand municipal services, khokims (mayors) of Tahskent city and Samarkand region. The Director-Generla of UzTsvetMet (Uzbek Nonferrous Metal) Company Mikhail Kostetskiy found the quality and price of Ukrainian convectors very attractive. An agreement was reached on the delivery of convectors to Uzbekistan.

As a result of the talks, Ukrainian managers decided to set up a joint venture. The enterprise will assemble "convector" type heating systems.

Investments in economy and cooperation potential

Within the frame of the privatization programme of Uzbekistan for 2007-2010, and the formation of the Fund for Reconstruction and Development of the Republic of Uzbekistan, the possibilities of Ukrainian investments in the Uzbek economy are now being considered. Particularly attention is given to the energy sector, development of transit networks, construction of transcontinental transportation corridors.

A historical landmark in the development of bilateral economic cooperation was the entry into force as of 2 April 2007 of the Protocol on introduction of amendments and addenda to the intergovernmental Agreement on Free Trade dated 29 December 1994, envisaging the introduction of the real regime of free trade between the two countries without exceptions and limits fully complying with the principles of the World Trade Organisation.

Both parties believe that the implementation of this Protocol will substantially activate bilateral cooperation primarily in the spheres of agricultural machinery, chemical production, light, food, pharmaceutical and construction industries.

Export and import

In 2006, Kharkov Tractor Plant made the first shipment of new models of tractors to Uzbekistan. A network of service centres of the KTP is now being created. The possibilities of setting up a joint production of tractors and rigs in Uzbekistan are being considered.

Last year, Ukraine became the second largest (after Russia) importer of Uzbek cars. UzDaewoo trademark is becoming increasingly popular in the country. In the first half of this year, the volume of Uzbek cars exported to Ukraine exceeded US$26 million, which exceeds the total volume of cars supplied in the whole year of 2006 1.44 times.

There is a vast potential for the long-term mutually beneficial cooperation in the sphere of aircraft-building, particularly cooperation in the production and supply of AN-140, AN-74, AN-32, and AN-148 aircrafts to Uzbekistan. There are opportunities for the organization of cargo conveyance by AN-124-100 aircrafts of Antonov Airlines.

The analysis of trade turnover between Ukraine and Uzbekistan for the past 10 years indicates an absolute growth. They are characterized strictly by market relations. Whereas in 1997-1999, up to 40% of bilateral trade operations were conducted by barter schemes, it can be claimed that since 2000 and until now all operations are conducted on commercial basis.

Over the years of independence, Uzbekistan gradually entered the Ukrainian market having brought its nonferrous metals, cotton, processed cotton products, textiles, UzDaewoo cars (about 11,000 pcs supplied in 2006), and natural gas.

Uzbekistan has traditionally imported from Ukraine metal, chemical products, machinery, drugs. It is now making the initial steps toward procuring energy saving equipment.

Among the positive moments of Uzbek-Ukrainian cooperation is the activity of the Ukraine-Uzbekistan Trade House established 11 years ago. Within this period, it has supplied products and component parts to satisfy the needs of the Navoi Mining and Smelting Plant for tens of millions of US dollars.

The process of positive shifts, as indicated by statistics, has become more dynamic. The increase of bilateral trade volume to US$1 billion is quite realistic, particularly if to take into account the fact that a "free trade regime without exceptions or limits" was launched on 2 April this year.

Cooperation prospects

I would like to specifically emphasize the positive prospects of Ukrainian-Uzbek scientific and technological cooperation, particularly high-tech spheres: materials technology, pharmaceutics and healthcare, non-traditional energy sources, cosmic studies, etc.

Ukraine is interested in close cooperation with Uzbekistan in the integration of energy and resource saving technology, new materials and nano-technology.

Uzbek-Ukrainian cooperation is also developing fruitfully in the scientific, cultural-humanitarian, and information spheres. Over the years of cooperation, about 300 Uzbek citizens received grants from the state budget of Ukraine to study in its leading universities and institutes. Ukrainian delegation will participate in the festival and celebration of the 2,750th anniversary of Samarkand in August this year.

In July, personal exhibition of the Uzbek artist Amir Halikov titled "Water and Stones" was held in Kiev. The exhibition evoked great interest of art-lovers and the media.

On 21 August this year, a concert devoted to the 15th anniversary of the diplomatic relations between our countries will be held at the State Academic Bolshoy Theatre named after Alisher Navoi under the aegis of the Embassy. In September, the Kiev Academic Orchestra and Choir will visit Tashkent and Samarkand with a tour.