Guarantees and Measures of Protection of Foreign Investors

Foreign investments in the Republic of Uzbekistan enjoy the national treatment which provides foreign investors with conditions not less favorable, than corresponding conditions for investments, made by legal entities and natural persons of the Republic of Uzbekistan.

The legislation, alongside with the general guarantees and measures of protection of foreign investors, may envisage additional guarantees and measures of protection, including providing unconditional performance by partners.

Additional guarantees and measures of protection can be given to foreign investors in each individual case at investment in:

· the priority sectors providing steady economic growth, progressive structural changes of a national economy;

· the priority projects providing strengthening and expansion of an export potential of the country, its integration into world economic relations;

· projects in sphere of small business oriented at processing of raw material and materials, production of consumer goods and services, providing population with employment.

The investment agreement

In case the Government of the Republic of Uzbekistan provides the foreign investor with additional guarantees and measures of protection (privileges and preferences), without fail, the investment agreement shall be concluded.

The investment agreement shall be concluded on behalf of the Government of the Republic of Uzbekistan between the Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan and the foreign investor.

Also, the state guarantees and protects the rights of the foreign investors carrying out investment activity within the Republic Uzbekistan.

In case the subsequent legislation of the Republic of Uzbekistan deteriorates investment environment to foreign investors, within ten years from the moment of investment, the legislation acted on date of investment is applied. The foreign investor is entitled to apply at own discretion those provisions of the new legislation which improve investment environment.

The legislation stipulates the notifying order of use of a ten years' guarantee. Thus, at approach of deterioration investment environment, the foreign investor notifies the corresponding authorized body on application of a guarantee.

The authorized bodies which shall be notified on application by the foreign investor of a guarantee, are the public organizations carrying out the state registration of legal entities, the Ministry for Foreign Affairs, the Ministry of Internal Affairs, the Ministry for Foreign Economic Relations, Investments and Trade, the State Tax Committee of the Republic of Uzbekistan and servicing banks.

The notice of the foreign investor is the basis for application by the authorized body concerning the foreign investor of the legislation acted on date of investment. The notice, irrespective of date of its direction to the authorized body, operates from coming into force of the act.