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Talks between Deputy Prime Minister – Minister of Investments and Foreign Trade of Uzbekistan Jamshid Khodjaev and the head of the EU Delegation, Ambassador Charlotte Adriaen were held.
They discussed the current state and prospects for the development of trade, economic, financial and technical cooperation, as well as interaction within the framework of Uzbekistan’s entry into the World Trade Organization at the meeting.
Obtaining the status of a GSP+ beneficiary by Uzbekistan made it possible to increase the trade turnover between Uzbekistan and the EU member states by 15% (to $2.4 billion) in the period from January to July 2022. Mutual readiness to maintain and extend these relations was expressed by the parties.
According to the sides, a new impetus to further expand bilateral relations and improve economic development will be given by the Enhanced Partnership and Cooperation Agreement between Uzbekistan and the EU and attracting European investment and experience in such areas as technical regulation, sanitary and phytosanitary measures, protection of intellectual property rights, customs regulation and more.
The participants also discussed the course of interaction within the framework of Uzbekistan’s accession to the WTO at the meeting. The commitment to continue providing technical and advisory support in this process was expressed by European side.
The new Indicative EU Partnership Program with Uzbekistan for 2021-2024 was discussed by the parties. Supplementary projects and initiatives in the field of modernization of agriculture and water management, economic development with a special focus on digital and green transformations and measures to transform the Aral Sea region into a zone of environmental innovation and technology were proposed.
An agreement to continue cooperation within the framework of the discussed initiatives and organize bilateral events at various levels in the near future was reached by the sides following the meeting.

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Parviz Shahbazov, the Minister of Energy of Azerbaijan and Azim Akhmedkhadzhaev, the First Deputy Minister of Energy of Uzbekistan (Acting Minister), met together in order to accelerate the processes related to the development of the Azerbaijan-Uzbekistan energy cooperation.
Ensuring the implementation of agreements on cooperation in the field of energy and the instructions during the visit of the head of state to Uzbekistan in June this year were discussed at the meeting.
According to minister of Energy Parviz Shahbazov, it is very important to mutually assess wide opportunities for energy cooperation and to establish joint partnerships in the period of new realities, where the basis for the comprehensive development of relations between the two countries with common historical and cultural values is laid. As the minister noted, the deepening of the strategic partnership in the energy sector was actualized by the historic state visit of the President of Azerbaijan to Uzbekistan. The two relevant ministries of the two countries signed the Memorandum of Understanding and the road map of the joint activities on energy in Tashkent. The implementation of results-oriented measures and the development of multi-spectrum energy cooperation will be contributed to by today’s discussions.
According to Azim Akhmedkhadzhaev, there are important tasks ahead in the new stage of bilateral cooperation in the energy sector, and Uzbek and Azerbaijani experts have valuable experience in the renewable energy and hydrocarbon sector. The development of the energy sector and the economy in general in both countries will be pushed forward by the traditional friendly relations of the two countries and joint efforts.
The ministers signed a roadmap on expanding of the energy cooperation between the Republic of Azerbaijan and the Republic of Uzbekistan during the meeting. 30 areas are covered by the roadmap, such as the creation of a joint working group, cooperation in the liberated territories of the Republic of Azerbaijan, the participation of Uzbek companies in renewable energy projects, as well as joint activities in the hydrocarbon sector. The document announces cooperation between Azerbaijan and Uzbekistan on export and import of oil and gas and chemical products, oil refining, as well as geological exploration and hydrocarbon production, along with the energy transition and decarbonization. The exchange of the best experiences in the fields of construction of new thermal power plants, heat supply, liberalization of energy markets, efficient use of energy resources, organize joint trainings, as well as promotion of mutual investments, and cooperation between Energy Regulatory Agencies at the expense of private investment are planned.
The implementation of measures on the roadmap is previewed for 2022-2023.

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According to Armenian Prime Minister Nikol Pashinyan, opportunities for Georgia and Armenia to take steps not only in the direction of the international transport corridor Black Sea-Persian Gulf, but also on other initiatives that provide hubbub are provided by cooperation in a number of structures. It was said in his speech on the occasion of the opening of the Friendship Bridge today.
Pashinyan noted that regional cooperation will be fostered by more active work, implementation of the reached agreements and the involvement of the interested parties and other interested parties.
The need to make additional efforts to facilitate cargo transportation with Georgia was pointed to by the Armenian Prime Minister.
He also emphasized the importance of expanding cooperation in the sphere of railway transport and ferry transportation.
According to Pashinyan, a serious transit role for Armenia is played by Georgia.
97% increase is shown by trade and economic relations with Georgia
In spite of current difficult conditions between Georgia and Armenia from the viewpoint of trade and economic relations, 97% increase has been attained. It was mentioned in Armenian Prime Minister Nikol Pashinyan’s speech on the occasion of the opening of the Friendship Bridge today.
According to him, strong basis for future cooperation is created by modern infrastructure.
He said that today the development and deepening of relations with brotherly Georgia has all the prerequisites.
Pashinyan noted that this encourages further intensification of Armenia- Georgian relations. The spheres of industry, agriculture, pharmaceutics, communications and communication and transport have serious potential for the development. The counties already have a serious experience of cooperation in the sphere of energy. Such areas as cybersecurity, culture, tourism (for example, through the development of unified tour packages) are also important to develop relations in.
Communications, which allow for integration into the world economy, play the key role for the development of trade and economic relations.

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Exports of goods reached 2290.4 million US dollars in the first six months of the year (1.7 times increase compared to in the same period last year).
The National Bureau of Statistics reports that exports of domestic goods reached 1,705.5 million US dollars (74.5% of total exports), (1.7 times up compared to the same period of 2021). This fact contributed to the increase of the total value of exports by 54.3%.
Romania (29.0%), Ukraine (10.8%), Turkey (9.2%) and Italy (8.5%) imported most of goods. The merchandise is exported the most frequently by road transport (73.1%), followed by maritime transport (16.6%), rail transport (9.6%) and air transport (0.7% ).
During the reported period, merchandise imports totally attained 4347.0 million US dollars (33.1% more than the same period last year). Most of goods were imported from Romania (16.2%), the Russian Federation (15.3%), China (9.4%) and Ukraine (9.1%).

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An increase was noted in the value of foreign trade in agricultural products from the Republic of Moldova to the People’s Republic of China. The conclusion was reached by the Minister of Agriculture and Food Industry Vladimir Bolea and Ambassador of China to Chisinau Yan Wenbin at yesterday’s meeting.
Strengthening of economic relations between the states, promoting the export of agricultural products to the Chinese market and analyzing administrative and logistical impediments for the delivery of batches of fresh fruits and vegetables were the main topics of the discussion.
According to Yan Wenbin, Chinese markets are kept open for Moldovan agricultural products. Special interest is marked in cherries, sour cherries, grape seeds, nuts, oil, sawdust, apples, wine, cereals etc. Domestic producers should show more initiative to obtain the importer’s license, which is a key moment for accelerating exports. The contribution to the dissemination of Chinese experience regarding technological innovations in the irrigation and soil processing sector will also be made.
In response, Vladimir Bolea underlined the crucial importance of the Chinese market for further exploitation, taking into account Moldovan wine products promotion through the National Vine and Wine Office. According to him, Moldova is grateful to China for the support of the country’s approach to boost exports of agri-food products on this market.
Statistics show that 3.6% of the total Moldovan alcoholic production in 2021 was imported by the People’s Republic of China (about 9.3 billion US dollars). The export of strong alcoholic beverages increased in 2021 by about 60% compared to 2020 (by about 32% in value).

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The trade exchange between the two countries shows constant growth.
According to the Ministry of Agriculture, Forestry and Water Management, import of beef, milk and dairy products from Serbia has been approved by the Saudi Food and Drug Authority.
They informed Serbian Minister of Agriculture Branislav Nedimovic that this country had been placed on the list of approved food exporters to Saudi Arabia, according to the latest decision of the Saudi Food and Drug Administration, at a recent meeting with representatives of this authority.
So, Serbia will export milk and dairy products to Saudi Arabia after more than 40 years. Serbian fruit and vegetables are already exported to Saudi Arabia without restrictions.
Serbian producers consider the access of their food products to this lucrative market to be an excellent opportunity, especially profitable due to record levels reached by food prices.

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The Statistical Committee registered an increase by 11,2% attained by cargo shipments in January-June 2022 compared to the previous year’s same period.
1% growth was shown by rail shipments, 12,9% – by automobile shipments, 5,3% – by air shipments (cargo shipments carried out by airlines of other countries included), 18,4% – by “trunk pipeline” shipments.
All types of vehicles totally shipped 8 million 332,6 thousand tons of cargo.
As for passenger transport, an increase by 40,4% (71,million 030.5 thousand people transported) was attained by passenger transportation by general-use transport vehicles.
An increase by 22,5% was attained by railway passenger transportation, 43,9% – by automobile transport, 75,6% – by air transport (aircraft of other countries included), and 25,4% – by electric transport .
It is important to remember that only the volume of taxi services by legal entities, which fell down by 23,4% compared to the previous year, is shown by the automobile transport passenger indicator.
This increase of cargo and passenger transportation testifies that the sectors are recovering from the COVID-19 pandemic effects.

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According to the June export review of the Center for Economic Reforms Analysis and Communication of Azerbaijan, the country boosted its non-oil exports by $295.4 million or 25.4 percent, in January-June of 2022.
In January- June 2022, Azerbaijan’s total exports reached $18.5 billion, including $1.5 billion in the non-oil sector. The increase of fruit and vegetable production achieved 7.1 percent ($328.1 million) compared to the corresponding period of 2021.
The first place was taken by the cotton yarn ($136.9 million in non-oil exports), the second place belonged to tomatoes ($126.9 million) and the third one was occupied by carbamide ($98.7 million).
Among non-oil product exports, Turkey was the first ($428.4 million), Russia was the second ($382 million) and Georgia was the third ($88.2 million).
Exports reached $3.1 billion in June 2022, during the normalization process. Non-oil exports boosted by 5.8 percent and achieved $269.6 million. Food exports grew up by 6.6 percent and attained $119.6 million, while non-food exports showed growth by 5.1 percent ($149.9 million).
Among non-oil product exports in June, Russia took the first place ($118.6 million), Turkey was the second ($38.2 million) and India was the third ($18.2 million). The first item on the list was tomatoes ($35.8 million), then cherries ($34.2 million) and potatoes ($20.2 million).
Data on export orders received by the azexport.az portal was also included in the export review. Consequently, orders totaling $248.4 million were received by the portal from January to June 2022. The azexport.az received orders of total value of $33.4 million in June 2022. For comparison, $3.08 billion in export orders from 145 countries was received by the portal between January 2017 and June 30, 2021.
Total value of non-oil exports through the Single Window Export Support Centre in July of this year was $17.4 million.
The export review is aimed at familiarizing entrepreneurs with export issues, expanding opportunities for exporting local goods to traditional and new markets and accelerating the process of integration into international markets.

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According to Ambassador of Armenia to Iran, efforts are made to increase Iran-Armenia annual trade volume to one billion US dollars, due to the need to increase the volume of trade between these two countries.
As Ambassador Arsen Avagyan said in his Friday evening meeting with the governor-general of East Azarbaijan Province, Iran’s neighboring provinces with Armenia have great importance for his country. Establishment of a consular office in Tabriz has also been requested.
Avagyan said that the Armenian side is ready to have face to face meetings with foreign merchants and businessmen, and West Azarbaijan province merchants and officials are invited to visit Armenia’s Syunik Province.
Araks border river has also been mentioned by Ambassador Avagyan due to its significant importance for both Iran and Armenia. The question of environment protection arose, and one of the mines has been shut down till required moves will be made to eliminate the environmental hazards.
According to the Ambassador, buying the manufactured goods in East Azarbaijan Province is among Armenia’s priorities, as it is the closest transit route for Armenia.
That province is quite ready for boosting trade with neighboring countries, including Armenia, as the governor of East Azarbaijan Province said, and he emphasized that increasing interactions with neighboring countries is one of the basic policies of the 13th Government, and the provinces have the required authorities for the purpose.
According to Abedin Khorram, increased trade and business between the two provinces of East Azarbaijan and Syunik is quite favorable for Iran.
The supreme scientific status of East Azarbaijan Province in Iran has also been referred to, and province’s readiness for establishment of a joint science and technology park, which can be turned into a regional export hub, has been announced.
Khorram underlined the great importance of Araks River for Iran, and therefore major steps to control the entry of mining sewage water into it are expected from Armenia.

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The recent appreciation of the dram and the dollar depreciation (the contracts for export are mostly signed in dollars) has become a problem for companies exporting from Armenia. The price of raw material has also increased because of inflation. Logistic problems have also appeared.
The USA is the main export destination of Armavir Fruit processing agricultural goods (canned fruits and vegetables, dried fruits). According to the company founder Hayk Manukyan, the fluctuation of the foreign currency and the appreciation of the dram is their main problem at this moment. Luckily, state assistance programs helped people to build orchards, greenhouse farms and to increase the volumes.
He says that any problem is automatically transferred to rural people, who are not able to process that volume under dram appreciation. The price changes very little over the years. If it increases, a market will be lost.
Dollar decreasing by around 20% makes exporting some goods unprofitable for the company now. Exports continue in spite of financial loss in order to save the market.
According to logistic company Spinnaker Group co-founder Norayr Gevorgyan, the fluctuation of the foreign currency is a problem for all exporters. The worst thing is that the dram appreciation happened immediately.
The calculation of the prices in the field of cargo transportation in dollars makes price increase as most of the expenditures in Armenia is in drams.
The opinion of the Central Bank, expressed by CBA Governor Martin Galstyan, is that serious problems will be caused by the artificial depreciation of the dram, for example, a new inflationary wave that will impact all citizens of Armenia, including exporters.
The Upper Lars border checkpoint regular shutting down because of bad weather and major queues there are also a problem for exporters. Armenian cargo trucks suffer most of all.
Russia also imports Armavir Fruit goods, but not much. According to Hayk Manukyan, major agreements with the partners of the Russian market will be signed soon. It makes the problem of Lars checkpoint very relevant, taking into account imports made for reprocessing.
Contracts make Lars very important for each exporter. If it is not solved, reserves in Russia are necessary in order to fulfill the contract.
According to Spinnaker Group co-founder Norayr Gevorgyan, there have always been problems with Lars checkpoint in every season, but this year the major flow of vehicles from other countries which cannot travel to Russia via Europe supplemented this difficulty. Lars served as an alternative route for them, but it couldn’t serve so many cars.
The exports of apricots stopped this year, because queues made it impossible to pass Georgia quickly.
They expect to launch a ferry communication to mitigate the problem of Lars. They are delaying the launch previewed for June 15th because the permission has not been granted by the Dutch company, the Poti port operator, yet, and it has also imposed sanctions against Russia. This measure will not solve the problem completely, as a ferry can’t transport all the goods exported from Armenia.
Inflation affects many countries. According to Hayk Manukyan, the decline of foreign currency doesn’t make the prices fall. The economy could be negatively affected by the dram depreciation from inflation perspective. He proposes to support exporting companies.

According to Spinnaker Group founder Norayr Gevorgyan, the fluctuation of a foreign currency is a global problem and does not depend on Armenia only. It makes exporters suffer, and it is necessary to provide a respective approach to them.
Without compensation, the situation will become very difficult for suffering sectors. They should provide a sectoral assistance to exporting companies, having contracts in dollar.

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