Kosta Legal has successfully advised a European construction equipment supplier on repatriating its profits from Uzbekistan.
Owing to existing problems with the free conversion of local currency (the Uzbek Soum) into foreign currency, many foreign investors and traders were not able to repatriate the profits earned and kept in Uzbekistan. A vast amount of cash was, thus, trapped in the local bank accounts of our client.
We were engaged by company’s local financial counsel to advise on and to develop a scheme for resolving the matter. The difficulty of the task was to provide such a solution that would be relatively risk-free and would not occasionally infringe the relevant legislation on foreign exchange controls. Moreover, the proposed structure had to be in compliance with client’s internal policies and business development strategy.
Our client was a large Central European company, producing construction equipment and offering construction solutions, active within European and post-Soviet markets.