Investors ask to cancel privileges so that everyone has equal conditions, Minister of Investments and Foreign Trade of Uzbekistan Sardor Umurzakov said, Trend reports with reference to the Ministry.

"Improvement of the tax system, equal distribution of the tax burden for all is very important for attracting foreign investment," the minister stressed.

He drew attention to the fact that if earlier investors were counting on benefits, now they are waiting for their cancellation.

The minister noted that new investment law is currently being prepared in Uzbekistan. In his words, all currently existing legislation, decisions, decrees and orders related to investments will be revised to be reflected in the new law.

On June 20, 2019, Canada Eurasia Russia Business Association (CERBA), the Russia Canada Business Council (RCBC) and the Russian Union of Industrialists and Entrepreneurs (RSPP), held an RCBC conference on Corporate Social Responsibility, linked to the 15^th Anniversary of the Russia Canada Business Council (RCBC). The event was titled "The impact of the concept of Sustainable Development on business strategy and CSR business practices", and took place at the RSPP premises in Moscow, Russia. 

The objective of the event was to provide a platform for the representatives of Russian and Canadian companies to discuss the effective practices of Russian and Canadian businesses in the field of CSR and Sustainable Development, and to demonstrate the impact of these programs on companies’ bottom lines, including reduction or prevention of risks, meeting investors’ expectations, attracting highly qualified specialists, and generally maintaining a balance between the interests of the company and its stakeholders and the needs of the community under the general concept of Sustainable Development.

The Plenary session featured speeches by Alexander Shokhin, the President of RSPP, Nathan Hunt, the Chairman of the CERBA Moscow Board, Andrey Varichev, General Director of MC Metalloinvest and Executive Director of Russia Canada Business Council (RCBC), Mr. Alisher Usmanov, RCBC Co-Chair from the Russian side, (conveyed by Mr. Varichev), Stéphane Jobin, Charge d'Affaires, Embassy of Canada in the Russian Federation, and Valery Timashov, Head of the Department of the North America, Ministry of Foreign Affairs of the Russian Federation. Speakers emphasized the importance and relevance of the event agenda, and similarities between the economies of Canada and Russia that make possible a successful exchange of experience and identification of the most effective CSR practices that business can use to solve their immediate problems.

Welcome speeches were followed by on official RCBC Award Ceremony. On the occasion of the 15^th Anniversary of the Russia Canada Business Council  (RCBC), the following Russian and Canadian representatives received awards for their outstanding contribution to the development of business relations between Canada and Russia:  Alexander Shokhin, President, RSPP, Elena Feoktistova, Deputy Chairman of the RSPP Committee on CSR and demographic policy,  Stanislav Borodyuk, Vice-President and Head of the Moscow Representative Office, Kinross Gold Corporation, Alexander Ivlev, CIS Managing Partner,  Ernst & Young, and Neil Withers, Chairman, CFA Association Russia.

One of the brightest projects presented at the conference was "Kupol" Foundation, founded by Kinross Gold Corporation with the objective to make a contribution of to the socio-economic development of Chukotka and to assist in improving the quality of life of the local population. The fund has been working with the indigenous population of Chukotka since 2009 by supporting folk crafts, small and medium-sized businesses, financing education and health care. Over the past 10 years, "Kupol" Foundation has made a significant contribution to the socio-economic development of Chukotka by carrying out 162 projects in various fields such as healthcare, education, entrepreneurship and traditions of indigenous people. Acknowledging the 10th Anniversary of "Kupol" Foundation, and recognizing its outstanding contribution to the development of the indigenous communities of the Russian North, Siberia and Far East regions, the Russia Canada Business Council (RCBC) presented the certificate of honor to Lyudmila Danilova, Executive Director of the "Kupol" Foundation.

The plenary session was followed by the two Keynote Presentations. Neil Withers, Chairman of CFA Association Russia, has delivered the presentation "Shareholders and investors are still your main stakeholders”, where he looked at the Corporate Social Responsibility from the professional investors’ points of view, and shared practical suggestions from a global survey that included Russia. Alexander Ivlev, CIS Managing Partner and Deputy Regional Accounts Leader for Central, Eastern and Southeastern Europe & Central Asia, Ernst & Young made a speech on the topic "Will companies that society needs be the only ones to survive?", highlighting the main recent trends that influenced the transformation of the modern business.

The event included two panel discussions. The first discussion was devoted to corporate business practices in the field of environmental protection in the context of Sustainable Development concept. The panel was moderated by Dr. Evgeny Shvarts, Director for Conservation Policy of World Wildlife Fund (WWF) Russia. In the modern world, the environmental problem is very acute, and business cannot ignore it. Top experts from Canadian companies -  Kinross Gold Corporation, BRP, Wood PLC Russian companies as En+ Group, Rosatom, SIBUR, Segezha Group, spoke about cases on forest restoration, careful use of resources, separate waste collection, as well as innovative projects for the development of environmentally friendly packaging, new types of metals, and generally about the “Green production” concept. All participants agreed that, besides a positive effect on the state of the environment, the environment protection practices can also positively affect the profitability of the business - saving resources practices, for instance, can significantly reduce manufacturing and other costs. As Leslie Quinton (BRP) summarized it, “despite the fact that at first environmental projects may require certain costs, in the long term they pay off in full.”

The second panel discussion on the topic "CSR Practices in Relations with Stakeholders” was moderated by Elena Feoktistova, Managing Director of the Department on Corporate Responsibility, Sustainability and Social Entrepreneurship of RSPP, Deputy Chairman of the RSPP Committee on CSR and demographic policy. The discussion focused on the issue of the company’s successful interaction with its various stakeholders, which is one of the key principles of corporate social responsibility, as well as a way to maintain a balance of interests, and a risk management factor. The panel featured representatives of Hatch, ERM, Buhler/Rostselmash, EuroChem Group, MC Metalloinvest, AFK Sistema, Severstal, Norilsk Nickel, and "Kupol" Foundation. During the discussion, panel participants agreed that correct management of community relations, community development and early planning could bring a lot of benefits to the company in the long term, and also acknowledged the importance of the supply chain management.

Summing up the results of the conference, Nathan Hunt and Elena Feoktistova expressed satisfaction that the issues on the agenda of the conference aroused keen interest of the expert community, and were the base for an interesting and fruitful discussion, equally beneficial for both parties. They also emphasized a very important conclusion made on the basis of the participants' speeches – a well-implemented CSR policy can not only significantly improve the company's image, but also significantly strengthen its position in the market. In words of Nathan Hunt, "… CSR is not only about what is "good", it is also a financial benefit for a company that practices this approach." Elena Feoktistova acknowledged that the conference featured “a serious and productive conversation, it is good that it was possible to combine the experience of RSPP, our best industrialists, and Canadian companies that have a great tradition of CSR”.

The conference was attended by more than 120 representatives of the major Russian and Canadian businesses, and demonstrated that Sustainable Development and Corporate Social Responsibility is one of the areas with great potential for the facilitation of the Russia Canada business dialog.  In a more general sense conference demonstrated that both sides are interested and willing to support the promotion of such a dialog. CERBA consider this event to be a big success and an important step toward further improvement of the business dialog and cooperation between Canada and Russia.

On July 1 in Moscow, Russia, representatives of the diplomatic community as well as Canadian and Russian government, business, political, sport, and culture circles enjoyed a reception on the occasion of the Canada Day celebration. The event was organized by the Embassy of Canada in the Russian Federation, in the Hall of Fame of the Hockey Museum. It brought together more than 100 guests – contacts of the Embassy involved in various sectors of interest to Canada. The event started with the welcoming speech of Stéphane Jobin, Charge d'Affaires, Embassy of Canada in the Russian Federation, who highlighted the fact that the people-to-people connections between citizens of our countries provide a solid background for a frank dialogue between the governments about critical issues like a rules based international order, regional security, respect for human rights, and the future of our Arctic regions. He also explained the choice of the venue – the Hockey Museum – as a symbolic highlight of an important and longstanding cultural aspect shared by Canadians and Russians - the passion for hockey. From the Russian side, Vladislav Tretiak, President of Society of Friends of Canada, President of the Ice Hockey Federation of Russia, Member of the State Duma of the Russian Federation, and Viacheslav Fetisov, Soviet and Russian Hockey Player, Member of the State Duma of the Russian Federation, greeted the guests and presented to Mr. Jobin an autographed commemorative photo of the Canadian and Russian Hockey Legends.

The event was held in a ceremonial atmosphere, Canadian and Russian national anthems were played.

The event highlighted the diversity of interests that Canadians have in Russia and the longstanding people-to-people connections.

The Prime Minister, Justin Trudeau, today announced that the President of Ukraine, Volodymyr Zelenskyy, will visit Canada from July 1 to 3, 2019. The two leaders will meet in Toronto on July 2, 2019, during the Ukraine Reform Conference.

During the meeting, Prime Minister Trudeau will reiterate Canada’s unwavering support for the people of Ukraine and its sovereignty and territorial integrity. The two leaders will discuss Ukraine’s reform efforts on its path to Euro-Atlantic integration, the security situation in the region, and how to further deepen Canada-Ukraine commercial relations.

Quote

“Canada and Ukraine share a deep and historic friendship built on shared values and strong people-to-people bonds. I look forward to my meeting with President Zelenskyy, where I will reaffirm Canada’s commitment to the Ukrainian people, and discuss ways to deepen our economic partnership and create good, middle class jobs in both of our countries.”

— Rt. Hon. Justin Trudeau, Prime Minister of Canada

On June 18, 2019 the National Bank of Ukraine (NBU) announced cancellation of mandatory conversion of foreign currency proceeds into UAH starting from June 20, 2019. This restrictive measure was last introduced in 2012 to stabilize the Ukrainian currency. In the past, the rate of mandatory conversion varied from 50% to 100%.

The last time it was changed it was reduced to 30% in March 2019 as a part of liberalization of foreign currency control rules. Cancellation of this measure was arguably one of the most expected by the international business community in Ukraine. This step will improve the business climate in Ukraine and increase its attractiveness among international investors.

_____________________

Information from the Schneider Group, June 18, 2019

If you would like more information on the liberalization of currency rules in Ukraine, please feel free to contact the Schneider Group

In the 2020 edition of the Best Lawyers in Russia, five Gowling WLG professionals from the Moscow office earned a total of 10 listings across multiple areas of law – a testament to the firm's Intellectual Property (IP) strength and expertise in Russia and the CIS.

The following Gowling WLG professionals have been recognized:

Information Technology

Intellectual Property

David Aylen
Alexander Christophoroff
Marina Drel
Vladislav Ugryumov

Life Sciences

Litigation

Alexander Christophoroff
Marina Drel

Telecommunications

Alexander Christophoroff (Lawyer of the Year, 2020)

Considered one of the world’s most authoritative guides to legal talent, the Best Lawyers series is published annually and ranks individual lawyers and firms across a wide range of jurisdictions and practice areas.

Gowling WLG is one of the world's most respected and trusted law firms when it comes to protecting and enforcing IP rights. Through the firm’s Moscow office, the experienced team of IP practitioners has worked seamlessly with a global clientele for over two decades to deliver strategic advice in all aspects of IP law throughout Russia and the CIS. Learn more

Ten agreements for $150 million were signed at the Uzbekistan-U.S.-Canada business forum, in Navoi on May 17, including 5 in investment and trade and 5 in education, health care, and twin city relations, the Foreign Ministry of Uzbekistan reported.

The Navoi region administration has signed a $100 million agreement with Calatrava Grace on the construction of the single composite block factory and affordable housing. Cooperation has been established with Canada’s Advanced Bio-Oil Technologies in the creation of the cluster for growing biofuel crops. The investments in the project are estimated up to $24 million.

 Uzbekistan plans to split up its state energy company amid efforts to boost efficiency, improve transparency, and attract foreign capital.

The overhaul comes as Central Asia’s most populous nation -- and one of the top three natural-gas producers in the former Soviet Union -- opens up after decades of isolation. The government has stepped up efforts to bring in more outside investment as it targets a 17% increase in gas production by 2025.

Uzbekneftegaz will be split into three separate companies by the end of this year, Chairman Bakhodirjon Sidikov said in the Uzbek capital, Tashkent. One will produce gas and oil and run refineries, one will operate pipelines, and the third will oversee gas distribution, he said.

By dividing up Uzbekneftegaz -- the country’s largest employer -- the government is seeking to prevent potential conflicts of interest as it courts foreign investors following the death of longtime leader Islam Karimov in 2016. His successor, Shavkat Mirziyoyev, has won praise from the International Monetary Fund for a wave of reforms that included liberalizing foreign exchange and improving the quality and availability of economic data.

FDI Boost

Amid the changes at Uzbekneftegaz, the government is considering selling part of its 100% stake, according to 40-year-old Sidikov. It also plans to introduce public-private partnerships in the gas distribution system and is seeking more than $30 billion of foreign direct investment for projects across the company in the next six years, he said.

Uzbekneftegaz attracted $1.2 billion of FDI in the first four months of 2019, more than double an initial target of $550 million.

“We used to have a lot of issues with attracting foreign investment because all information was considered confidential,” Sidikov said. “Now we have instructions from our president, and Uzbekneftegaz will be an open company.”

That openness extends to its foray into international debt markets. Uzbekneftegaz is talking with Credit Suisse Group AG and others to raise $1 billion in a debut eurobond sale around the middle of next year, according to Sidikov. The Uzbek government, aiming to set a benchmark for corporate issuers, also sold $1 billion of eurobonds in February.

Production Target

Uzbekneftegaz plans to pump 43 billion cubic meters of gas this year. The country as a whole expects to increase production to 63.6 billion cubic meters, from 60 billion in 2018, and is targeting 70 billion by 2025.

Foreign producers Lukoil PJSC, Gazprom PJSC and China National Petroleum Corp. are already producing gas in Uzbekistan. Mirziyoyev has now given “clear instructions” to Uzbekneftegaz to invite more major energy companies such as BP Plc and Total SA to explore and develop the country’s gas reserves, Sidikov said.

President Shavkat Mirziyoyev signed the Using Renewable Energy Bill into Law. According to the document, producers of renewable energy and renewable energy units within their authority are entitled to:

• participate in the preparing and implementation of state and other programs in the field of the use of renewable energy;
• enjoy tax, customs and other benefits and waivers in the use of renewable energy;
• create local grids (electric, thermal and (or) gas);
• enter into contracts with legal entities and individuals for the sale of electricity, thermal energy and (or) biogas, produced from renewable energy sources supplied through a local (electric, thermal and (or) gas) grids.

“Tax and customs waivers can be provided to businesses and individuals when importing renewable energy units, the use of which significantly increases the efficiency of using renewable energy sources,” the document said.

Renewable energy producers will be exempt from property tax for renewable energy units and land tax on the areas occupied by these facilities (with a nominal capacity of 0.1 MW or more) for a period of ten years from the date of commissioning.

The law states that the tariffs for electricity generated from renewable energy sources will be set following bids.

Moscow, May 2019 – from February to April 2019, lawyers from Dentons’ Russia Real Estate practice held a series of nine seminars on current leasing issues. These events were attended by more than 600 representatives from top Russian and international companies in the fields of real estate and construction, the hotel and restaurant business, retail and FMCG, financial institutions, professional brokerage services and others.

The seminars were held in a panel format and included discussions of current cases and controversies, answers to client questions and sharing of practical experience among business representatives, in-house lawyers, brokers and Dentons professionals. The seminars delved into the following topics: execution of a premises lease agreement; lease payment structuring; securing the performance of obligations; limitation of the parties’ liability; works in leased premises; and termination of leases. For each of the topics, special attention was given to tax and litigation issues, which were covered by lawyers from Dentons’ Commercial Litigation and Tax practices. The discussions were based on Dentons lawyers’ considerable hands-on experience with lease transaction support and leasing litigation, along with the experience of participating companies.

Sergey Trakhtenberg, partner and head of Dentons’ Russia Real Estate practice: “Our team went to considerable lengths to make this series of events as useful and interesting as possible for our clients. We are delighted by the huge turnout for the seminars and the numerous attendees taking direct part in the discussions. This was a classic win-win situation in which all involved, both Dentons' lawyers and our clients, had an opportunity to share valuable expertise on the latest issues affecting the leasing market. The audience engagement, minimum of theories and utmost emphasis on practical experience by all attendees made this series of seminars a notable happening in the Russian legal market.”

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