By Kamila Aliyeva

Uzbekistan and Russia have agreed on attracting Russian funding for a number of major investment projects worth more than $3 billion in the oil and gas sector.

Currently, the parties are working out specific mechanisms for investing in a number of joint projects and organizing export financing, as well as insuring Russian banks through the Russian Agency for Export Credit and Investment Insurance (EXIAR), podrobno.uz reported.

Recently, a large Uzbek-Russian forum was held in Tashkent. The Russian delegation was headed by the General Director of Russian Export Center JSC, Peter Fradkov. Representatives of Gazprombank, EXIAR and a number of major manufacturers, such as the United Engineering Works Group, Silovye Mashiny, United Metallurgical Company, REP Holding JSC and others also joined the forum.

The Russian side noted the presence of favorable factors for increasing cooperation, especially in the oil and gas industry of the country.

Previously, Uzbekistan, Gazprombank and the Russian Export Center signed a framework agreement on joint implementation of investment projects in the oil and gas, chemical, mining and metallurgical sectors of the country.

Gazprombank will finance the project to create a synthetic liquid fuel production based on the refined methane of Shurtan GCC and fund the export of the air separation units produced by Russian Cryogenmash PJSC.

In addition, the document provides for the financing the construction of a plant for the production of sheet metal with a capacity of up to 500,000 tons per year by Gazprombank and the organization of deliveries of excavator equipment for the needs of the mining industry of Uzbekistan in an amount not less than 44 units with a total value of at least $155 million in 2017-2021.

In 1991-2016, total investments in the oil and gas industry were $30.7 billion, including direct investments and loans worth more than $17 billion, according to Uzbekneftegaz.

Russia is one of the leading trade partners of Uzbekistan. In 2016, bilateral trade exceeded 4 billion US dollars. Uzbekistan exports natural gas, cars, chemical, textile, fruit and vegetable products to Russia. Black and nonferrous metals, wood, oil and oil products, electrical engineering, paper products and pharmaceuticals are imported from Russia.

There are 961 enterprises in Uzbekistan with participation of Russian capital and 569 enterprises created with participation of investors from Uzbekistan in Russia.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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