- Laws of the Republic of Uzbekistan

The Law “On Courts of Arbitration” (#ZRU-64) was adopted on October 16, 2006. The law is to regulate relations in the sphere of the courts of arbitration establishment and practices in the Republic of Uzbekistan. Thus, permanent and temporary courts of arbitration may be formed. According to the Law, the state authorities will not be entitled to form courts of arbitration and be the parties of any arbitration agreement. Besides, the courts of arbitration will not have a capacity of   legal entities.  They may be formed by the legal entities and act as their attached bodies.
Courts of arbitration should settle disputes arising from the civil matters, including economic disputes between the entities of entrepreneurship. On the other hand, disputes arising from the administrative, family and labour legislation, as well as the other disputes envisaged by the law, will not be in the competence of such courts.
Records maintaining procedure for the courts of arbitration will be specified in the Provisions to be approved by the Cabinet of Ministers.
The law becomes effective on January 1, 2007.   

Guarantees for NNOs
On January 3, 2007, the President signed the Law “On Guarantees of Activity of Nongovernmental Nonprofit Organizations (#ZRU-76). The law is intended to regulate the guarantees for activity of nongovernmental nonprofit organizations, ensure protection of their rights and legal interests, and provide the state support of such organizations. The Law came into force on January 4, 2007. 

- Resolutions Issued by the President of the Republic of Uzbekistan

Resolution of the President of the Republic of Uzbekistan “On Investment Program of the Republic of Uzbekistan (2007)” (#PP-484, October 9, 2006) defines the main parameters of the Investment program to provide wide attraction of direct foreign investments and their efficient use;  to implement  a program of modernization and technical reequipment; to open new jobs. The Document approves the limits of the  2007 centralized capital investments  to be made from the State budget and non-budget funds; a targeted program of investment projects to be implemented by attraction of financial resources  of the Fund of Reconstruction and Development of the Republic of Uzbekistan; a targeted list  of facilities to be constructed by equity financing in  2007 within the framework of big investment projects; and a targeted program of investment projects to be implemented with involvement of foreign credits under the guarantee of the Uzbek Government.

Uzbekistan Intends to Carry out Deep Modernization of Geological Exploration Industry

Islam Karimov, the President of the Republic of Uzbekistan, resolved to undertake “a cardinal improvement of the geological exploration organization structure, its management and forecasting systems; such improvement is to raise efficiency of the geological exploration efforts, first of all, for hydrocarbons, precious, non-ferrous, rare-earth metals and uranium, and subsurface fresh and mineral water”.
The related Resolution, issued by the President of the Republic of Uzbekistan and adopted on January 17, 2007, states that “the commercially significant sources of minerals and raw materials are being developed rather slow; certain potentially ore-bearing territories are still poorly surveyed; high technologies are not used in full in the course of the exploration work; the research capacity is noticeably weak and unreasonably dispersed”.
The document states that “the exploration organization structure and its management does not comply with the current requirements; an obsolete practice, when exploration efforts are evaluated by their physical volumes instead of their final results, is still existing; a high extent of wear of mining, drilling and laboratory equipment and the lack of special instruments locks down any prospecting work based on the new methods and technologies”.  
The Resolution will regulate “implementation of advanced procedures of the exploration work financing based on its performance evaluation and incentives dependent on the final results of the industry activity, i.e. on the growth of commercial reserves”. The document points out a necessity “to enhance objectivity and reliability of the geological information based on its sophisticated analysis, wide application of  new technologies and advanced  methods of forecasting of the reserves in place, in light of  requirements for the natural resources efficient utilization and  mineral raw materials mining”.
The Resolution approves  proposals of  the Ministry of Economics, Ministry of Finance, State Committee for  Geology and State Property Committee to establish  the research-and-production centres as follows: “Geology of Precious and Non-ferrous Metals”, “Geology of Uranium and Rare-earth Metals”, “Geology of Hydro-mineral Resources”; such Centres will be established with the framework of the State Committee for Geology.
The major tasks of the newly established Centres will be: search for prospective territories and evaluation of their geological potential; development and implementation of the exploration work advanced methods and technologies; coordination of the exploration work at prospective sites. 
The said Resolution will release the exploration industry from the customs payments applicable to the imported equipment and materials; such exemption will be valid until January 1, 2011.

- Resolutions of the Cabinet of Ministers of the Republic of Uzbekistan

On October 16, 2006, the Cabinet of Ministers adopted Resolution “On Measures to Provide Efficient Management of Enterprises with the State-owned Share in their Authorized Capital, and to Maintain Proper Records of the Stat-owned Property” (#215). The Resolution has approved: 
- Provisions on the State-owned Enterprises, which define the legal status of a state-owned enterprise and its affiliations and representatives offices; it describes particulars of their establishment and operation, rights and obligations of their constitutors and executive boards, property relationship between a state-owned enterprise and its constitutor;  
- Provisions on the Internal Audit Service at the Enterprises;  they set up standard requirements for the internal audit procedures at such enterprises where the book cost of assets exceeds 1 bln soums, as well as the methodological principles of such audit. Requirements of the Provisions do not cover commercial banks and State-financed organizations;
- Provisions on Conveyance of the State-owned Stake (Shares) under the Trust Management. This document, in particular, will regulate a procedure of conveyance of the State-owned stake (shares) under the trust management, a trustee’s status, rights and obligations, and the related rights and obligations of the State Property Committee.   
These Provisions are supplemented with a Master Agreement on Trust Management.

Minselkhoz (Ministry of Agriculture) Makes Silk
In compliance with the Resolution of the President of the Republic of Uzbekistan “On Measures for Further Reforming of  Silk Industry of the Republic” (#PP-512, November 15, 2006), the Cabinet of Ministers adopted its Resolution “On Modifications and Additions to and Invalidation of Certain Decisions Taken by the Government of the Republic of Uzbekistan” (January 4, 2007, #7). They are connected with liquidation of the “Uzbek Ipagi” (“Uzbek Silk”) Association and incorporation of the “Pilla” local associations into the Ministry of Agriculture and Water Economy; and with a necessity to harmonize certain decisions of the Government with the Resolution of the President (PP-512).
The Cabinet of Ministers also approved an organization structure and chart of the Ministry of Agriculture and   Water Economy; also, it approved an organization structure of the “Uzbekyengilsanoat” State Joint-stock Company and its executive board organization chart. 

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(Material from published articles compiled by Uzbek A. Rustamov, General Representative, Interconcepts Inc. Translation to English: Lyubov Belokon)

Uzbek Agzamovich Rustamov, Interconcepts Inc.