Agreements have been reached between Uzbekistan and Russia on the supply of raw cotton and yarn to Russia, Deputy Minister of Industry and Trade of Russia Oleg Bocharov said. He took part in the all-Russian forum "Manufactura 4.0" in Ivanovo, Ritmeuraisa reports.
"There is progress in the supply of cotton: an agreement has been reached with the traditional supplier - Uzbekistan, - said Bocharov, to reduce export payments for cotton and yarn."
The reduction of these payments (meaning the rates of export duties and export prices) became possible within the framework of the mutual most favored nation treatment in both countries in mutual trade. And also - in view of the participation of Uzbekistan in the CIS Free Trade Zone and in the status of an observer in the EAEU.
Both sides are working on a "strategic partnership for raw materials for the textile and light industry." According to Russian Soyuzlegprom, the parties intend to set up joint ventures in Russia and Uzbekistan to produce cotton yarn and other light industry commodities. These enterprises will be focused mainly on deliveries to Russia.
Since the middle of this year, a growing shortage of raw material and yarn has been observed in Russia due to the temporary cessation of these supplies from Uzbekistan. This was due to the fact that the demand for the same goods in Uzbekistan itself and a sharp surge in world prices for raw materials increased. In connection with this situation, Soyuzlegprom turned to the Russian Ministry of Industry and Trade, offering to send these goods to Russian enterprises from the state reserve.
At the same time, consultations with Uzbekistan began. By now they have led to the solution of most of the issues related to the regular supply of raw cotton and primary products of its processing to Russia. And during a recent partnership forum, the Uzbek side announced the possibility of mutual deliveries in national currencies or at a special exchange rate.
CentralasianLIGHT.org,
November 24, 2022