Uzbekistan to transfer share of Uzbekcoal under management of Russian company

Business Materials 11 March 2019 18:41 (UTC +04:00)

Baku, Azerbaijan, March 11

By Fakhri Vakilov-Trend:

Conditions and terms of transfer of Uzbekcoal shares to the trust management of Russian company Progressgortech have been determined in Uzbekistan, Trend reports via Uzbek media.

The corresponding decree was signed by Uzbek President Shavkat Mirziyoyev.

The document confirms that Russian company will become the trust manager of the shareholding of Uzbekistan Railways in the authorized capital of Uzbekcoal in the amount of 45 percent.

The contract is planned to be concluded by July 15, 2019. Prior to this, it is planned to conduct a comprehensive audit of Uzbekcoal (with the involvement of an international audit organization) and the development of an enterprise strategy. The decree states that it is also planned to purchase new equipment and revise coal prices in 2019, taking into account operational and capital costs, as well as profitability of at least 10 percent.

The decree stresses that project and contractual foreign organizations attracted by Uzbekcoal and trustees are exempt from corporate income tax until 2024. The coal enterprise itself, like the management company, is exempt from a number of customs duties and government fees.

Uzbekcoal is the largest coal mining enterprise in the country. Annual production is more than 3 million tons. The main consumer is the electricity sector, which accounts for more than 85 percent of consumption.

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