Wednesday, 19, May, 2021

The President of Uzbekistan signed the Measures to further introduce market mechanisms in the sale of highly liquid and monopolized goods Decree.

The Decree is aimed at prevent artificial overstatement of prices for highly liquid and monopoly goods in the domestic market by unscrupulous business entities, create a deficit and rush demand, abolish elements of the distribution system and further intensify exchange trading."

From June 15, the following goods will be sold on the domestic market exclusively through exchange trading:

1) the following items produced by monopoly enterprises and legal entities with a state share of 50% or more, as well as by legal entities, in the authorized capital of which 50% or more belongs to a legal entity with a state share of 50%:

  • polyvinyl chloride (PVC) and formalin - to all customers;
  • consumer ethyl alcohol - to manufacturers who have licenses and certificates of conformity;
  • technical ethyl alcohol - to all customers;
  • silver - to jewelry manufacturers;

2) before January 1, 2022, the following items produced by legal entities - non-monopolists and legal entities with a state share of less than 50%, or by legal entities that do not have a state share:

  • cement - at least 50% of the production volume;
  • cotton seeds, cottonseed oil and processed seed waste (meal, husk) - 100% of the production volume;

In March, First Deputy PM Achilbay Ramatov proposed to allow the direct purchase of cement and metal from manufacturers due to the high demand and the scope of construction works in 2021. The President said that it is necessary to carefully study this proposal and create a transparent system. Now cement and metal are sold through trading on the UzEX.

3) oil and gas condensate by producing (gas processing) entities (producers), regardless of the organizational and legal form, - to producers who have licenses and certificates of conformity.

The customs value of goods under deals entered into on the trading platforms of commodity exchanges abroad shall be determined solely at proces determined in these deals.

To prevent artificial overpricing in the domestic market, the Antimonopoly Committee is empowered to set a limit for products purchased by one buyer at one trading session of exchange trading, as well as to submit to organizations, regardless of the organizational and legal form, mandatory instructions on the sale of highly liquid goods exclusively through commodity exchanges.

In addition, according to the document, from January 1, 2022, the transfer of seeds obtained from cotton, subject to the return of finished products to fat and oil organizations, is carried out exclusively between organizations within the same cotton and textile cluster.

From September 1, carriage services of goods sold at exchange auctions by road are provided by monopolistic organizations and organizations with state participation exclusively through the electronic logistics trade portal in the manner of an auction.

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