The most notable legal development of June 2021 is the adoption of a Presidential Decree announcing a large-scale land law reform: local municipalities have lost the authority to allocate land plots with electronic auctions becoming a universal allotment mechanism in almost all cases. Other notable developments of the month include improvement of the technical regulation regime, measures to reduce the number of enterprises with state participation, and measures to accelerate the development of the mining industry.
On 8 June 2021, the President signed a Decree envisaging a significant reform of the land legislation. It, among others, provides for the following measures, entering in force on 1 August 2021:
The Cabinet of Ministers is instructed to propose changes to land laws for reflecting the measures envisaged by the Decree within 1 month from the date of the Decree. Until relevant changes are introduced into the Land Code, local municipalities must cease allocating lands in a way different from that provided in the Decree.
The Cadastral Agency under the State Tax Committee is instructed to tighten its oversight over compliance with the land legislation and targeted use of land plots. The Agency has got the right to apply to court with claims to revoke land use rights where it has been identified improper use of a land plot.
Presidential Decree No. UP-6243 of 8 June 2021
The President has signed the Decree "On Fundamental Improvement of State Control in the Sphere of Technical Regulation". The following measures are, among others, provided by the Decree:
Presidential Decree No. UP-6240 of 2 June 2021
Following the Presidential Decree No. 6096 of 27 October 2020, the Cabinet of Ministers has adopted the Resolution on Measures for Reorganization and Liquidation of Enterprises with State Participation, in accordance with which 454 enterprises with state participation will be liquidated, 66 such enterprises will be reorganized into state establishments (‘gosudarstvennoe uchrejdeniye’), and 73 such enterprises will be reorganized into branches of other enterprises with state participation.
It is also provided in the Resolution that starting from 2022, the State Assets Management Agency, the Antimonopoly Committee, and other state agencies will regularly (by the 1st of November each year) prepare a list of enterprises with state participation proposed to be liquidated and reorganized.
Resolution of the Cabinet of Ministers No. 350 of 3 June 2021
On 24 June 2021, the President signed the Resolution “On Measures for Developing the Mining and Metallurgical Industry and Related Industries”. The following measures are, among others, provided for in the Resolution:
Presidential Resolution No. PP-5159 of 24 June 2021
The Cabinet of Ministers has approved a list of equipment, not produced in Uzbekistan, which is exempted from VAT and customs duties on import. The list names 676 types of equipment, including equipment for milk processing; manufacturing bakery products; producing chocolate and confectionery; meat and poultry processing; sewing; etc.
Resolution of the Cabinet of Ministers No. 352 of 4 June 2021
The Cabinet of Ministers approved a number of regulations on maintaining state cadastral records. The regulations, among other things, define the main tasks of the Cadastral Agency and its regional departments and set rules and principles for keeping cadastral records.
Resolution of the Cabinet of Ministers No. 389 of 22 June 2021
The President has signed a Decree facilitating the implementation of public-private partnership projects (PPP) for creating modern greenhouses on lands adjacent to individuals’ households. The Decree envisages that the state will allocate land and ensure the provision of utility services for relevant PPP projects, potential private partners – investors will facilitate the construction and equipping of greenhouses and will arrange necessary financing, while interested individuals will engage in working in greenhouses. Some customs and tax incentives will be available for investors interested in relevant projects.
Presidential Resolution No. PP-5138 of 7 June 2021
8. INVESTMENT PROJECT IN GOLD MINING
The Resolution of the Cabinet of Ministers of 19 June 2021 approved a feasibility study for a project for the development of the Turbay and Oltin madanly 2 gold deposits. The project will be implemented by the Navoi Mining and Metallurgical Combine. It is expected that, as a result of the implementation of the project, by 2024, the total mining capacity at the deposits will reach 2 mln tons of gold ore per year. The project value is approx. USD 132.4 mln, USD 14.7 mln of which are funds of the Navoi Combine itself and USD 117.7 mln are loans of foreign banks.
Resolution of the Cabinet of Ministers No. 384 of 19 June 2021
Have a good day!
Kosta Legal Law Firm