Tuesday, 25, June, 2024

General Director of the Russian Metalloinvest Nazim Efendiev on April 25 at the industrial exhibition "Innoprom. Central Asia” in Tashkent asked Uzbekistan to reduce rail transportation tariffs. He called for tariffs to be "fair" and equitable.

According to him, Metalloinvest, which is part of the USM holding of the billionaire Alisher Usmanov, this year invested and joined the owners of the Tashkent Metallurgical Plant, which produces cold-rolled metal. The company manages production jointly with the Uzbekistan Fund for Reconstruction and Development. He noted that Russian-made semi-finished products are converted in Uzbekistan into high value-added products.

Nazim Efendiev said that the region has "huge potential", but "there are logistical problems" - remoteness from ports and from "major markets".

“We have not aligned tariffs between Russia, Kazakhstan and Uzbekistan. Most of all, we travel through the territory of Russia - a cheap fare, when we come to Kazakhstan - the fare rises, when we come to Uzbekistan - it rises even more. And this is not an export transit, we are not transiters: we bring here a semi-finished product for processing,” he said.

The head of Metalloinvest intends to discuss this issue on April 25 at a meeting with the leaders of Uzbekistan Railways. “I want this to be a fair, even tariffs that would encourage Russian producers to bring their product here,” Nazim Efendiev explained.

He claims that Metalloinvest has been providing up to a third of Uzmetkombinat's needs for raw materials for four years now. “Last year we delivered about 300 thousand tons of hot briquetted iron to Uzbekistan, and this is actually 30% of the needs of Uzmetkombinat ... and the tariff there is high. In the cost structure for Uzmetkombinat, it hurts,” said the general director.

Deputy PM/Minister of Investments and Foreign Trade Sardor Umurzakov said that the country's authorities would study the problem. “Your proposal is absolutely logical and correct. We will certainly consider it together with colleagues from the Russian Federation and Kazakhstan. We will work, and the head of Uzbekistan Temir Yollari will definitely contact you and report to you,” he promised.

About TMP

In December, the Tashkent Metallurgical Plant for the production of cold-rolled steel with galvanized and polymer coatings was launched in Tashkent’s Yangikhayot district. The total amount of capital investments in the project surpassed 326.6 million euros, of which 226 million euros were a loan from the Russian Export-Import Bank, 147 million euros were own funds, and 15.1 million euros were a loan from Asaka Bank. The estimated payback period is about 8.6 years.

The founders changed during the implementation of the project. Initially, the founders of the joint venture "Tashkent Metallurgical Plant" with an authorized capital of 197.8 million euros were the Uzbekistan Fund for Reconstruction and Development (49.9% or 98.7 million euros) and the Dutch company Metallurgical Technology and Engineering B.V. (50.1%, 99.1 million euros). The total cost of the project was estimated at 278.2 million euros.

The SFI Management Group, which managed the implementation of the project, came out with an offer to become participants in the project. The restructuring of the founders was performed with a decrease in the share of Metallurgical Technology and Engineering B.V. down to 41.9%. SFI received 8.2%.

As of April 25, Metalloinvest Holding (Cyprus) Limited became the owner of a 41.8% stake in TMP instead of the Dutch Metallurgical Technology and Engineering B.V., and the Cypriot Miramonte Investments Limited - 8.2% instead of SFI.

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