Uzbekistan, Tashkent, May 5 / Trend D.Azizov /
Uzbekistan will insist on the liquidation of the Amantaytau Goldfields (AGF) JV, Foreign Economic Relations, Investments and Trade Deputy Minister Shavkat Tulyaganov told reporters.
The country is ready to sue the owner of the joint venture Oxus Gold Plc.
He said the liquidation issue arose because the company avoided paying taxes for several years.
"No political moment exists in the conflict with the British company, it's only economic problem," he said.
He said enterprises with foreign investment has enjoyed significant tax breaks up to 2007 with a view to reinvest the freed resources into product development. The government abolished these benefits after 2007 and equalized enterprises with foreign investment with domestic enterprises.
Tulyaganov stressed that the AGF JV in Uzbekistan were granted significant tax and customs privileges for a certain period.
"However, when the grace period ended, the company failed to pay the taxes, despite the fact that the company was profitable," Tulyaganov said.
Nevertheless, the Uzbek side has offered Oxus to peacefully disperse and they wanted to realize their foreign equities, Tulyaganov said.