Some of the most notable legal developments in Uzbekistan in March 2022 were new measures to accelerate privatization, to improve corporate governance in LLCs and JSCs, and to introduce control over the attraction of foreign loans by state-owned enterprises. There were also some changes in the tax and foreign currency control legislation and the rules for leasing state-owned agricultural lands.
The President has issued a Resolution on accelerating privatization, which, among others, provides for the following:
A Law introducing changes into the legislation on limited liability (LLC) and joint-stock companies (JSC) has been adopted. It, among others, envisages that:
The Cabinet of Ministers has adopted a Resolution regulating the attraction of foreign loans by country’s largest state-owned companies, including JSC “Navoi Mining and Metallurgical Combine”, JSC “Almalyk Mining and Metallurgical Combine”, JSC “Uzbekneftegaz” and entities it controls, JSC “Uzkimyosanoat” and entities it controls, and others, as provided in Annex 1 to the Resolution. The Resolution envisages that starting from 1 May 2022, a risk-based approval process will be in place for these enterprises for attracting foreign loans. The following procedure has been established:
A Law introducing changes to the Tax Code, the Law on the Foreign Currency Control, and some other legal acts has been adopted. Some of the relevant changes include:
The President has issued a Decree providing for simplification of the procedure for the lease of state agricultural lands. In accordance with it, results of open electronic tenders for the right to lease agricultural land will no longer have to be approved by regional executive authorities (the Cabinet of Ministers of Karakalpaksatan or regional khokimiyats). A relevant lease agreement shall, thus, be concluded based on results of a tender without further authorization being required.
Presidential Decree No. UP-91 of 24 March 2022
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Kosta Legal Law Firm