Russia, Uzbekistan to study construction of hydro-power plant in Kyrgyzstan
By Aynur Jafarova
Russia and Uzbekistan have agreed to conduct an international independent expertise on the construction of a hydro-power plant in Kyrgyzstan. The agreement was reached at a regular session of the Uzbek-Russian intergovernmental commission on economic cooperation, which was attended by Russian Deputy Prime Minister Dmitry Kozak, on Thursday.
Uzbekistan's First Deputy Prime Minister Rustam Azimov said the decision of the Russian government on the need for such an expertise on Kambarata HPP-1 demonstrates a constructive approach to all issues of water use and energy cooperation in Central Asia.
Russia and Kyrgyzstan in September signed an agreement for the construction and operation of Kambarata HPP-1. Electricity generated at the power plant can be used both to meet the demand of Kyrgyzstan and for export to neighboring countries.
Uzbekistan has repeatedly expressed concern over the construction of hydropower facilities in neighboring countries, which may affect water and energy balance in the region.
The same day Russian Deputy PM Kozak was received by Uzbek President Islam Karimov.
President Karimov noted that the inter-governmental commission intends to address issues of economic relations and their development, facilitating at the same time an environment more conducive for cooperation.
During the discussions the sides exchanged views on prospective strides toward boosting economic interaction. Kozak stressed Russia's willingness to enhance its economic relations with Uzbekistan, including in the areas of trade and investments.
Russia, which holds a stable position as Uzbekistan's largest trading partner, is keen to deepen its coopetation with the Central Asian state.
At the talks held during the June visit of Russia's president to Uzbekistan, Islam Karimov and his counterpart Vladimir Putin expressed interest in major diversification of bilateral trade turnover and expansion of the scope of investment cooperation. Those negotiations produced a declaration on the enhancement of strategic partnership between Uzbekistan and Russia, which defined prospective dimensions of interaction on a new level.
In 2011, the trade turnover between the two countries amounted to $6.688 billion. In January-September 2012, it made up $5.58 billion.
There are 858 businesses with Russian capital in Uzbekistan, including 716 joint ventures and 142 foreign companies with 100 percent Russian capital.
The most important area of bilateral economic cooperation in recent years has been the energy industry in which Uzbekistan's cooperation with leading Russian companies is long-term and mutually beneficial.
In particular, projects are underway with Russian oil giant Lukoil under the three PSAs on the development of oil and gas fields in South West Gissar and the Ustyurt region, the Kandym group of fields and the Khauzak-Shady and Kungrad areas, as well as in the Aral Sea, with a total amount of investments standing at more than $2 billion.
Another Russian energy giant, Gazprom, is involved in the project on a geological study of the Ustyurt region's fields with an investment volume of around $380 million.
The Uzbek-Russian commission on economic cooperation, which plays an important role in developing bilateral relations, has held 13 meetings so far.