Tashkent, Uzbekistan (UzDaily.com) - On 4 April 2020, Presidential resolution “On Priority Measures to Improve the Financial Stability of the Oil and Gas Industry” was adopted. This was reported by the press service of the Ministry of Energy.

Uzbekneftegaz Jcapitalizes the main debt and interest on loans of the Fund for Reconstruction and Development of the Republic of Uzbekistan allocated for the implementation of investment projects in the oil and gas industry.

These projects include the construction of a GTL synthetic liquid fuel plant, the construction of a UGHK on the basis of the Surgil field with the development of this field, the completion of the South Kemachi field, the utilization of associated gases at the North Shurtan field, the acquisition of high-tech equipment for exploration, and the development of a number of fields.

Thus, the capitalization of JSC Uzbekneftegaz is envisaged by increasing the state's share in the authorized capital of the joint-stock company.

The resolution also envisages capitalization by increasing the state's share in the authorized capital of Uzkimyosanoat.

According to the resolution, the Ministry of Energy was instructed, together with other involved ministries and organizations, to develop and submit, until 1 September 2020, the General Plan of the gas transmission system development program until 2030 to the Cabinet of Ministers. It is also entrusted to involve experts from the World Bank and the Asian Development Bank in this work.

Also, by this time, it was instructed to develop and submit to the government a proposal to create a wholesale electricity and natural gas market based on exchange trading, providing for equal access to all participants and a transparent pricing mechanism.

The document also gave a number of instructions to the State Asset Management Agency together with the Ministry of Energy and the Ministry of Finance, including - until 1 June make proposals to the government on the hiring of highly qualified foreign experts and specialists, including compatriots abroad, at oil and gas enterprises.

It is envisaged for further financing the Program to increase hydrocarbon production for 2017-2021, to attract credit funds of the Silk Road Fund (PRC) and foreign commercial banks in the amount of US$250 million, as well as US$400 million from export credit agencies .

The resolution determined that from 1 May 2020, state regulation of the retail prices of automotive gasoline of the AI-80 brand and diesel fuel (including the ECO brand) is canceled. Accordingly, the sale of these products by oil refineries (refineries) is carried out from this period exclusively through exchange trading.

The document also clarifies the excise tax payment mechanism for the purchase of petroleum products from refineries through exchange trading.