UZBEKISTAN LEGAL NEWSLETTER: NOVEMBER 2024

On 27 November 2024, a new Law "On Railway Transport" was adopted. It consolidates earlier efforts to unbundle the state-dominated railway sector and foster competition within it. It will come into force on 1 January 2025, replacing the existing Law "On Railway Transport" of 15 April 1999. The new Law, among other things, provides the following:

• the state regulates railway sector activities through licensing and permits, technical regulations, tariff policies, monitoring compliance with laws, and other means;
  
  
• various participants in the railway services market are defined, including wagon (container) operators, carriers, operator of public rail transport infrastructure, and public rail transport enterprises;
  
  
• infrastructure and mainline locomotives of public railway transport shall belong to the operator of public infrastructure and cannot be disposed to third parties. Public railway tracks, the operator of public infrastructure and enterprises servicing the public railway tracks shall belong to the authorized organization in the public railway tracks sector – currently, state-owned JSC "Uzbekistan Railways";
  
  
• the carriage of passengers and cargo is subject to licensing. Carriers without their own rolling stock enter into service contracts with wagon (container) operators and the operator of public infrastructure. Access to railway infrastructure is granted by the operator of public infrastructure;
  
  
• state-regulated tariffs in Uzbekistan cover public railway infrastructure services, locomotive traction on public tracks, and domestic passenger transport, excluding high-speed and express trains. These tariffs are set by a collegial body authorized by the Cabinet of Ministers. Losses from passenger transport at regulated tariffs are fully compensated by the state budget;
  
  
• railway transport facilities and land plots may be transferred to private partners for construction, modernization, and management under public-private partnership (PPP) agreements based on lease, ownership, or use rights for the duration of the agreement;
  
  
• the Cabinet of Ministers shall approve the Railway Transport Charter, as well as the rules for licensing and granting permits, tariff formation for public rail transport services, compensation for carrier losses from passenger transportation at regulated tariffs, and access to railway infrastructure.

Law No. ZRU-1006 of 27 November 2024

 2.   INSPECTIONS BY STATE AUTHORITIES

The President has signed a Decree aimed at improving the country’s business environment, which includes, among other things, measures to streamline regulatory inspections of businesses. The following is provided in the Decree:

• the approval of the following documents: (i) the List of the State Authorities Responsible for Overseeing the Activities of Business Entities with a specification of their respective areas of responsibility (Annex 1 to the Decree); (ii) the List of Inspections Conducted by State Authorities with Notification to the Business Ombudsman (Annex 2); (iii) the Roadmap for Improving the Protection of the Rights and Interests of Entrepreneurs (Annex 3);
  
  
• state authorities not listed as regulators/controllers with respect to specific areas in the List in Annex 1 are not authorized to conduct inspections in those areas;
  
  
• inspections of business entities, as per Annex 2, must be notified to the Business Ombudsman and registered in the Unified State Control Information System within 24 hours of starting in cases where the business entity subject to inspection has not been identified or for the purpose of promptly preventing or eliminating risks to citizens' life and health, public safety, state interests, or the environment;
  
  
• the activities of business entities classified as "low risk" in the electronic "Risk Analysis" system are not subject to inspection by state authorities;
  
  
• starting from 1 January 2025, abolition of administrative liability for: (i) violation of the procedure for displaying fiscal marks; (ii) violation of the rules for mandatory digital labelling of goods (products); and (iii) concealment of the number of employees;
  
  
• starting from 1 March 2025, court fees will be refunded to business entities and individuals when parties to a dispute reach a settlement after the initiation of proceedings.

Presidential Decree No. UP-184 of 14 November 2024