March 2021 – Spotlight on Uzbekistan: Kinstellar’s regular look at the Uzbek market
The Law "On International Commercial Arbitration" has been adopted
On 16 February 2021, President Shavkat Mirziyoyev signed the Law of Uzbekistan “On International Commercial Arbitration” (the “Law”), which will come into force from 16 August 2021. The Law is based on the UNCITRAL Model Law “On International Commercial Arbitration” and sets out the form and mechanism for concluding arbitration clauses and arbitration agreements.
The Law also addresses a number of other issues, such as the composition of arbitral tribunals, the procedure for the election and appointment of arbitrators, and the grounds for a challenge against arbitrators. In addition, the Law contains provisions relating to the application, amendment, suspension and cancellation of interim measures during arbitration proceedings.
Based on the Law, parties to international arbitration proceedings may apply to an Uzbek economic court with a request to apply interim measures awarded in the course of arbitration. It is also stated that an application to an Uzbek economic court to apply interim measures, and the subsequent application of interim measures by a court before or during arbitral proceedings, shall not be considered incompatible with an arbitration agreement. The Law also provides exhaustive lists of grounds for refusing the application of interim measures and for refusing the recognition and enforcement of arbitral awards established by Uzbek courts. At the same time, the Law establishes the procedure and relevant grounds for the recognition and enforcement of arbitral awards in Uzbekistan.
Law of Uzbekistan “On International Commercial Arbitration” ZRU-674 dated February 16, 2021
Privatisation of state assets will be subject to simplified procedures
On 11 February 2021, the president signed Decree No UP-6167 "On measures to further accelerate the privatisation of state assets”. Among its provisions, the Decree identifies the state assets that are put up for public auction and sold by the State Asset Management Agency and investment company “UzAssets”. The Decree also allows the state to hire international consulting firms, audit and investment consultants, investment banks and other specialised companies to organise public auctions and the sale of state assets identified by the Decree.
Presidential Decree No UP-6167 "On measures to further accelerate the privatization of state assets”
New draft Law “On Electric Energy Power”
A new draft Law “On Electric Energy Power” has been made available for public discussion. Once approved, the new draft law is expected to unify and replace all regulations related to electric power previously adopted. Based on the draft, the scope of the law will also extend to regulating the production of nuclear power in Uzbekistan. The draft also envisages new articles to further support renewable energy production as well as the import and export of electric energy power in Uzbekistan.
Draft Civil Code available for public discussion
A new draft Civil Code has been made available for public discussion. The final versionof the amended Civll Code is expected to come into force from 1 January 2022. The draft envisages the incorporation of new concepts such as “corporate agreement” to be concluded between the participants of a company.
The draft also contains articles regarding the following issues:
The concept of “enterprenuiral activity” is also enshrined in the draft. Furthermore, the draft envisages the distinction between public and private legal entities provides for their respective definitions.