Following last week’s Investment Forum in Tashkent, Uzbekistan has signed over 100 agreements and memorandums worth over $12 billion with foreign companies and banks, whilst the country’s president receives LUKOIL president Vagit Alekperov. In Kazakhstan, the government is looking to establish a special Islamic Finance company as the country also signs agreements with France’s Peugeot Citroën and EDF. Meanwhile in Iran, the country’s National Petrochemical Company and Mitsubishi discuss ventures, as Japanese firms aim to tap into the commercial potential of the Iranian market.

Uzbekistan signs $12.4 billion worth of agreements during Investment Forum

Uzbekistan has signed over 100 agreements and memorandums for a total of $12.4 billion within the International Investment Forum held in Tashkent.

Uzbekistan’s first deputy prime minister and minister of finance, Rustam Azimov, has announced that some 104 agreements and memorandums were signed with foreign companies and banks, adding that the foreign partners’ liabilities total $4.72 billion.

The projects will be implemented in areas such as fuel and energy, the chemical industry, machinery, the textile industry and infrastructure.

Uzbek President receives LUKOIL President

The president of Uzbekistan, Islam Karimov, received the President of the Russian oil company LUKOIL, Vagit Alekperov, on 10 November.

As Karimov underlined, LUKOIL currently operates in Uzbekistan on the implementation of three projects – the Kandym-Khauzak-Shady-Kungrad gas project, the South-West Hissar mining project, as well as the exploration of the Uzbek part of the Aral Sea as part of an international consortium. The company’s total investments in projects in Uzbekistan exceed $5 billion.

The Russian company also started the construction of the Kandym Gas Processing Plant, which will process 8 billion cubic metres of natural gas annually and will be commissioned in 2018. LUKOIL’s president stated that the Russian company will ensure the full and timely fulfilment of all its obligations within the investment projects in Uzbekistan.

ADB and World Bank to implement $12 billion worth of projects in Uzbekistan

Rustam Azimov, Uzbekistan’s first deputy prime minister and minister of finance, has announced that Uzbekistan plans to implement projects worth over $12 billion in cooperation with the Asian Development Bank (ADB) and the World Bank between 2016 and 2020.

According to Azimov, Uzbekistan’s portfolio of joint projects with the ADB and World Bank is growing sustainably. The ADB’s projects in Uzbekistan currently total $13 billion, with the World Bank’s totalling $6 billion.

Kazakhstan set to establish special Islamic financial company

A special Islamic finance company is set to be established in Kazakhstan and will issue sukuk (Islamic bonds).

The National Bank has developed amendments to Kazakhstan’s legislation, including provisions aimed at improving the terms for issuing state Islamic bonds.

The Kazakh Ministry of Finance has also announced that the preparatory work for the legislative framework for the issue of sovereign sukuk is currently being carried out. The scope and terms of the future issuing of sukuk will be determined by the need to finance the deficit of the national budget.

The Development Bank of Kazakhstan was the first bank in Central Asia to issue sukuk back in 2014, with the National Bank stating that the Kazakh Ministry of Finance may issue sukuk in 2015 or 2016, once the appropriate legislation has been adopted.

Peugeot Citroёn launches full-cycle production in Kazakhstan

Kazakhstan's National Management Holding Baiterek has signed a framework cooperation agreement with Saryarka AvtoProm, part of the AllurGroup, and Peugeot Citroën in order to develop the Kazakh automotive industry.

The cars will be assembled at an automobile plant in the city of Kostanay in northern Kazakhstan.

Under the agreement, Baiterek will consider financing the full-cycle production of Peugeot Citroën cars in Kazakhstan at the facilities of the company Saryarka AvtoProm and will also consider providing support for the promotion and sale of the cars.

The agreement was signed as part of President Nursultan Nazarbayev’s official visit to France. Before the aforementioned agreement was signed, Nazarbayev met with the chairman of the managing board of Peugeot Citroën, Carlos Tavares, in Paris and discussed the prospects of cooperation between the AllurGroup and Kazakh automobile manufacturers.

Tajik president pays state visit to Pakistan

The president of Tajikistan, Emomali Rahmon, arrived in Islamabad on Wednesday for a two-day state visit to Pakistan at the invitation of Pakistan’s Prime Minister Nawaz Sharif.

A high-level delegation comprising ministers, leading business representatives and other senior officials is accompanying Rahmon on his visit.

Pakistan and Tajikistan are set to connect the South and Central Asia region through planned energy and economic corridors and are expected to make some headway towards forging this strategic partnership during this week’s visit.

Pakistani officials reportedly say that the Central Asia-South Asia 1,000-megawatt power supply programme CASA-1000 and an energy project between Tajikistan, Pakistan, Afghanistan and Kyrgyzstan, will be a major area of cooperation discussed. The World Bank has already approved funding for this project.

Kazatomprom and France's EDF sign uranium supply contract

The Kazakh National Company Kazatomprom and France's Électricité de France (EDF) have signed a contract for the supply of natural uranium. The deal continues a long-term partnership that began a decade ago.

The contract was signed during President Nazarbayev's official visit to France and will see Kazatomprom supplying 4,500 tonnes of natural uranium concentrates to EDF between 2021 and 2025.

Kawasaki to upgrade power plant in Uzbekistan

The Japanese Kawasaki Heavy Industries will upgrade the Ferghana combined heat and power plant in Uzbekistan, a project that will take until 2019 to complete.

The power plant modernisation project involves the construction of a gas turbine unit with a capacity of 57.7 megawatts, as well as the reconstruction of the boiler room.

The project will be financed through grants from the Japanese New Energy and Industrial Technology Development Organization (NEDO) and equity on the Uzbek side.

Iran’s NPC and Mitsubishi discuss ventures

The head of Iran’s National Petrochemical Company (NPC), Abbas Shari-Moqaddam, and the senior executive vice president of the Mitsubishi Corporation’s Chemical Group, Takahisa Miyauchi, exchanged their views on the possibility of the Japanese firm’s participation in Iran’s projects.

Shari-Moqaddam welcomed Mitsubishi’s interest in establishing a presence in Iran and said foreign financiers can invest in downstream petrochemical projects.

The Japanese Foreign Ministry said Japan and Iran will begin three-day negotiations in Tehran to conclude a bilateral investment treaty, a move aimed at tapping into the commercial potential of the Iranian market for Japanese firms.

Japan is hoping that such measures would make it easier for more domestic firms to operate in oil-rich Iran and eventually lead to participation in the development of Iranian oil fields.

Uzbekistan announces sale of state stake in four enterprises

The Uzbek State Committee for Privatization, Demonopolization and Development of Competition put up the state shares of four companies for sale, with a starting price of $267.6 million.

The government intends to sell a 48.05% stake in the largest chemical enterprise JSC “Ferghanaazot” for $152.8 million, a 75% stake in the industrial and domestic glass manufacturer JSC “Quartz” for $94.3 million, and a 60.35% stake in JSC Samarkandkimyo, with a starting price of $13.1 million.