Tag Archives: Uzbekistan

UN court dismisses British gold mining Uzbek expropriation case

DEC. 23 2016 (The Conway Bulletin) — A UN court dismissed a $400m claim by British mining company Oxus Gold against Uzbekistan after the Uzbek government took control of its stake in a gold mine in 2011, a blow to the company’s ambition of recovering cash from its former asset.

The UN Commission on International Trade Law (UNCITRAL) instead awarded $10.2m in damages to Oxus for what it said was a breach of a UK-Uzbekistan Bilateral Investment Treaty on tax issues.

Oxus chairman Richard Shead said that he was disappointed that the UN court had failed to uphold its claim of $400 for what he described as the expropriation of its assets at the Amantaytau Gold Fields (AGF) and the Khandiza deposits.

“I’m devastated by the decision of the arbitration award in relation to Oxus Gold and will continue to work with the company’s lawyers to extract as much value as possible for shareholders of the company,” Mr Shead said.

The UN court has not made clear why it turned down Oxus Gold’s application for damages. Uzbekistan has not commented.

Ozux had owned a 50% stake in the Amantaytau Goldfields JV in the Kyzylkum desert. It lost control of this stake in 2011 after the government ran an audit of the mine and accused Oxus of environmental damage, failing to pay enough tax and not meeting its investment obligations.

Eric McGlinchey, professor at George Mason University who focuses on litigation of Central Asian property, said that Oxus may turn to another court to look for another, more favourable, verdict.

“The $10m the tribunal awarded for Uzbekistan’s violation of fair treatment standards may allow Oxus to tread water a little longer in the hope of receiving a more favourable verdict from a different court,” Mr McGlinchey told The Bulletin.

Western firms have been disparaging of the investment climate in Uzbekistan and will be dismayed by the UN court’s decision against Oxus.

ENDS

(News report from Issue No. 262, published on Jan. 8 2016)

Uzbekistan rejects SCO free trade zone

DEC. 17 2015 (The Conway Bulletin) – Uzbekistan is not prepared to support the creation of a free trade zone with the Shanghai Cooperation Organisation (SCO) as some other members have suggested, first deputy PM Rustam Azimov told media. Russia and China dominate the SCO which is focused on Central Asia.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

GM prices up in Uzbekistan

DEC. 15 2015 (The Conway Bulletin) — GM-Uzbekistan, General Motors car-making venture in Uzbekistan, increased retail prices across its product line by up to 30%, the podrobno.uz news agency reported. Like the rest of the region, Uzbekistan has been facing a devaluation in its sum currency while inflation has increased.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Sweden jails Uzbek hitman

DEC. 15 2015 (The Conway Bulletin) – A Swedish court sentenced Yury Zhukovsky, an Uzbek national, to 18 years in prison for the attempted murder of dissident Obid-kori Nazarov in February 2012, in a case that intensified attention on Uzbekistan’s human rights record.

The prosecutor in the trial accused the Uzbek government of ordering the murder of Mr Nazarov who had fled Uzbekistan to Sweden in 2006. He had been a popular cleric who preached against the government.

The judge, though, said that it was not possible to rule on who may have ordered the murder.

Zhukovsky was caught on CCTV camera in a shop in the remote northern town of Stromsund hours before Mr Nazarov was shot in the head with a revolver. Mr Nazarov survived the attempted murder but has been left with brain damage.

Human rights groups have criticised Uzbekistan record. They have said that the government pursues its enemies abroad.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Germany leaves UZ base

DEC. 15 2015 (The Conway Bulletin) – The German military closed its base at Termez, Uzbekistan, near the border with Afghanistan. Rent costs for the base had increased to €16m ($17.3m) per year, up from €2.9m ($3.15m) per year in 2002. Germany had used the base as part of a logistics route into Afghanistan.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Uzbekistan restricts the arts

DEC. 16 2015 (The Conway Bulletin) – The Uzbek government is imposing increasingly tough rules over artists and singers, the BBC reported. It said singers will have to provide quarterly reports on their performances so that the authorities can ensure that they are hitting the required level of “spiritual and cultural values and national traditions”.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Afghanistan and Uzbekistan sign power deal

DEC. 10 2015 (The Conway Bulletin) – Afghanistan has signed an electricity supply deal with Uzbekistan which is 10% larger than last year to meet rising demand, a source at the state- owned Uzbekenergo told Russian media. Uzbekistan is an important supplier of electricity to northern Afghanistan.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Apogee opens in Uzbekistan

DEC. 9 2015 (The Conway Bulletin) — Apogee, a Dubai-based international airport service company, opened an office in the Yuzhny Airport in Tashkent. Apogee focuses on former-Soviet countries, providing various support functions for airports.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Uzbekistan receives Aids grant

DEC. 5 2015 (The Conway Bulletin) – The Global Fund to Help Fight Aids, Tuberculosis and Malaria has given Uzbekistan a grant of nearly $14m, media reported . Uzbekistan has one of the fastest growing rates of aids in the world.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Uzbek President criticises police

DEC. 7 2015 (The Conway Bulletin) – Uzbek president Islam Karimov criticised Uzbekistan’s police force as shoddy, Eurasianet.org reported. Human rights groups have long criticised police in Uzbekistan for using torture on inmates but Mr Karimov has never previously criticised them. Mr Karimov said there had been complaints about the police.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)