UZBEKISTAN LEGAL NEWSLETTER FOR MAY 2023

Some of the most notable legal developments in Uzbekistan in May 2023 were legal measures to implement reforms envisaged by the Constitution, as had been amended based on results of a national referendum on 2 May 2023; the introduction of “green energy” certificates; improvement of the regulatory policy related to the differentiation of medicines distributed with and without a prescription; and measures to support a PPP project for the construction of general schools in Tashkent and the Tashkent region. 

 1.  MEASURES FOR IMPLEMENTATION OF A NEW CONSTITUTION 

The President has signed a Decree setting out measures for the implementation of reforms envisaged by recently introduced amendments to the Constitution. The Decree, among other things, provides for the following:

• the abolition of the procedure for registration of citizens in Tashkent and the Tashkent region and the introduction of a notification procedure;
• the abolition of administrative sanctions for contractual violations;
• starting from 1 June 2023, the abolition of requirements for the time of operation of retailers and providers of services;
• starting from 1 January 2024, individuals and business entities will no longer have to pay court fees when applying to administrative courts. Court fees will be recovered from a party at fault, based on outcomes of a case.

Presidential Decree No. UP-67 of 10 May 2023

 2.  "GREEN ENERGY" CERTIFICATES

The President has signed a Resolution introducing the system of “green energy” certificates, which confirm the generation of power energy from renewable energy sources and represent a tradeable commodity. The Resolution, among other things, provides for the following:

• the Ministry of Economy and Finance is designated as a state agency responsible for the introduction of the system, including the registration of generation facilities and the issuance and provision of “green energy” certificates;
• the system will be introduced in stages: starting from 1 July 2023 – for energy produced by hydroelectric power plants within the system of JSC Uzbekhydroenergo and starting from 1 October 2023 – for all energy produced from renewable energy sources;
• one certificate confirms the generation of 1,000 kW/h of power energy from renewable energy sources;
• “green energy” certificates remain in free circulation and can be freely transferred from one person to another in a manner prescribed by law. The issuance, redemption, and circulation of the certificates are exempt from the legislation on securities. The income received by generation facilities from the sale of the certificates is exempt from income tax;

• starting from 1 July 2023, legal entities and individuals are entitled to use “green energy” certificates for meeting the requirements for increasing the use of power energy from renewable energy sources.

Presidential Resolution No. 156 of 12 May 2023

 3.  DETERMINATION OF MEDICINES DISTRIBUTED WITHOUT PRESCRIPTION  

The Ministry of Healthcare has issued Regulations on distinguishing medicines distributed with and without a prescription. Under the Regulations, the State Centre for Expertise and Standardization of Medicines, Medical Devices, and Medical Equipment under the Ministry of Healthcare is responsible for the categorization, as done during the registration of medicine or based on a separate application for re-categorization. The following criteria have, among others, been established as to when medicines may be distributed without a prescription:

• medicine is not included in the list of narcotic drugs, psychotropic substances, and precursors;
• does not contain potent substances listed in a schedule to the Regulations;
• does not have reproductive toxicity, genotoxicity, and carcinogenic properties;
• does not pose a direct or indirect threat to the human body when used without medical supervision.

A list of medicines distributed without a prescription shall be published on the website of the Ministry of Healthcare.

Order of the Ministry of Healthcare No. 3430 of 4 May 2023

 4.  PPP PROJECT FOR CONSTRUCTING GENERAL SCHOOLS

The President has issued a Resolution on the implementation of a public-private partnership project for the construction, equipping, and maintenance of 13 general education schools in Tashkent and the Tashkent region, developed by the Uzbek government with the support of the Asian Development Bank. The Ministry of Pre-School and School Education will act as a public partner, whereas a private partner will be selected based on a relevant tender.

Till 1 January 2024, a number of state agencies and state-owned enterprises in utilities shall ensure the construction of infrastructure necessary for the project.

Presidential Resolution No. PP-163 of 25 May 2023

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Kosta Legal Law Firm