Spotlight on Uzbekistan: Kinstellar's regular look at the Uzbek market.
New Amendments to the Law of Uzbekistan “On Public-Private Partnership” and “On Currency Control”
On 22 January 2021, the Law of Uzbekistan No ZRU-669 came into force incorporating amendments to the Laws of Uzbekistan “On-Public-Private Partnership” and “On Currency Control”.
Pursuant to the amendment made to the Law of Uzbekistan “On Currency Control”, for goods sold and services rendered on the territory of Uzbekistan, the pegging of prices to foreign currencies can be allowed in the following cases:
- if the the goods are sold and services rendered for projects carried out based on foreign investment made within the framework of public-private partnership agreements;
- if the the goods are sold and services rendered within the framework of Investment Agreements made with the Government of Uzbekistan or based on Presidential Decrees.
The amendments made to the Law of Uzbekistan “On Public-Private Partnership” concern the relations deriving from concession agreements. The amendments provide for new concepts such as “concession”, “special project company” and “applicant”.
Furthermore, it is also enshrined that amending the terms of Public-Private Partnership Agreements and their termination shall be subject to approval by the respective state agency, provided that the value of the agreement equals or exceeds USD 1 million, while amending and terminating the same agreements exceeding USD 10 million shall be subject to approval by the Cabinet of Ministers.
The new amendments also envisage a support mechanism to be implemented for Public-Private Partnership Agreements, pursuant to which such support can be made by concluding a Government Support Agreement between the private partner and the Government of Uzbekistan.
A Government Support Agreement is signed by the Ministry of Finance on behalf of the Government and shall be subject to entry into force upon approval of the Cabinet of Ministers and/or adoption of a Presidential Decree.
Law of Uzbekistan “On amendments and additions to, and invalidation of certain regulations of the Republic of Uzbekistan in connection with the improvement of the legislation on public-private partnership” ZRU-669 dated 22 January 2021.
New Category of Economic Disputes to be Incorporated into Economic-Procedure Code of Uzbekistan
On 12 January 2021 the Law of Uzbekistan No ZRU-663 came into force incorporating amendments to the Economic-Procedure Code of Uzbekistan.
Pursuant to the amendments, disputes arising from investment and antitrust claims shall be preliminarly subject to the jurisdiction of economic courts of Uzbekistan. However, these amendments do not compromise or diminish the ability of foreign investors to bring claims elsewhere based on bilateral and multilateral investment treaties to which Uzbekistan is a party.
The amendments also define the subject matter of claims attributable to the investment and antitrust categories of economic disputes.
In addition, the amendments also exclude the prosecutor's right to participate in court proceedings at its own initiative.
Law of Uzbekistan “On amendments and additions to the Economic Procedure Code of the Republic of Uzbekistan in connection with the improvement of the institution of revision of judicial decisions” ZRU-663 dated 12 January 2021.
New Amendments to the Law of Uzbekistan “On Personal Data”
On 14 January 2021, the Law of Uzbekistan No ZRU-666 came into force amending the Law of Uzbekistan “On Personal Data”. The new amendments impose an obligation on the owners of websites to store the personal data of Uzbek citizens on the territory of Uzbekistan.
The Law further provides that the personal data of Uzbek citizens shall be processed by technical means physically located on the territory of Uzbekistan and duly registered with the State Register.
The amendments will come into force starting from 15 April 2021.
Law of Uzbekistan “On amendments and additions to certain regulations of the Republic of Uzbekistan” ZRU-666 dated 14 January 2021.
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