Minister of Economy Maxim Reshetnikov on the development of relations with Uzbekistan

Minister of Economy Maxim Reshetnikov in an interview with Kommersant, he spoke about the state of mutual trade with Uzbekistan, and also assessed the prospects for joint investment projects in the country with the participation of Russian investors – they have a high share of engineering imports from the Russian Federation, but the Russian side hopes to use the capabilities of the Uzbek financial system to finance projects.

— How is bilateral trade developing with Uzbekistan? Is it growing, as with all countries in the region? Trade statistics are now closed.

— Uzbekistan is a large developing market with a growing population. The country is undergoing industrialization, the country is open. It is clear that our business is also ready to develop quite a lot there, launch production in order to stake out this market. At the same time, of course, there is competition, but in principle there is enough space for everyone. Indeed, trade turnover is growing very rapidly. Over the past year, growth has exceeded 26%, and this year we will reach another record. Speaking a little more broadly, it is important that our colleagues are very actively and interested in implementing our experience. For example, Russian investment support mechanisms are used very closely there – technology parks, industrial parks, special economic zones. There are many projects in Uzbekistan through the Ministry of Economic Development, the Ministry of Industry and Trade is also very active, and naturally, so are the regions, especially Tatarstan. Thus, in a number of technology parks, it is people from Tatarstan who work, and very effectively, which is why our companies come there.

— Our imports from China are growing sharply, while Uzbekistan has adopted a strategy to actively increase exports. Are there vulnerabilities in bilateral trade?

— There were a number of issues for which we were looking for solutions. For example, the same oil and gas chemistry. There was an anti-dumping investigation into polyethylene from Uzbekistan, but we reached agreements and agreed on a balanced policy. Uzbek producers assumed price obligations and agreed with the volumes of products proposed for delivery to the EAEU market.

On the one hand, it is good when cheaper products are supplied to our market. This supports competition and is beneficial to consumers, but on the other hand, sometimes, of course, the question arises of how pricing works, formed in different conditions. We are looking for a balance, given that we are very interested in each other. We agree on all barriers and find a compromise.

— During the visit of the President of Uzbekistan Shavkat Mirziyoyev to Moscow, the start of Russian gas supplies through the territory of Kazakhstan was announced. What else is being discussed as part of economic negotiations?

— There are quite a lot of questions here. This is the further development of trade, industrial cooperation projects and the creation of joint production. The second point is the further expansion of investments, including Russian investments in the Uzbek economy. They are more than significant: we have a portfolio of projects worth 2.7 trillion rubles.

We lend to the Uzbek economy, but we lend specifically to specific projects. That is, this is not just lending to current expenses, but investment aimed at further development. On the one hand, these are great opportunities and appetites are growing, but on the other hand, there are risk limits. We monitor them, and to minimize them we need to look for expansion options, when we do not give borrowed funds, but enter with capital and already take borrowed funds from within.

— Is mutual trade balanced? Imbalance of supplies is now considered an obstacle to mutual settlements.

— Our exports are greater than imports, but the gap there is not fatal; it varies depending on the supply of mineral resources and their prices. More importantly, our share in national currencies is good – according to the results of the first half of the year, it is 55%. Moreover, many Uzbek banks are connected to the financial messaging system of the Bank of Russia. A lot of bilateral correspondent accounts have been opened. Here we already have banks with 100% Uzbek participation. Therefore, in principle, we are saying that fairly stable financial relations have been built. Questions arise, but in general the system is built.

— What will the Center for Strategic Development do? Will this be some kind of single window for business requests?

— Yes, this is both a window for business and a bridge for us. We will attract specialists who simultaneously know both Uzbek and Russian legislation. This includes working with young people who are involved in economics, so that our young specialists are more interested in Uzbekistan, because the country is unique both from an economic and cultural point of view.

Interview conducted by Tatiana Edovina