Uzbek Cotton Cluster Fined Over Off-Exchange Sales

Tashkent, Uzbekistan (UzDaily.uz) — The Syrdarya regional department of the Committee for Competition Development and Consumer Protection has taken enforcement measures against WHITE GOLD KLASTER LLC for gross violations in the sale of highly liquid products.

During routine monitoring of exchange prices, specialists from the department identified instances of bypassing lawful trading mechanisms, which limit or could limit market competition. An investigation revealed that the enterprise sold more than 5,000 tonnes of cotton fiber through direct contracts outside of commodity exchange trading. The total value of the products sold in violation of the established procedure amounted to 104 billion soums.

According to the current Regulation of the Cabinet of Ministers of the Republic of Uzbekistan No. 170 dated 18 March 2020, this type of commodity is subject to mandatory sale through open exchange auctions.

In addition to violating trade rules, the anti-monopoly authority recorded that the raw material was sold at prices exceeding average exchange quotations. As a result of these actions, the textile cluster received an unjustified income of more than 700 million soums.

Based on the collected materials, the Special Commission of the regional department initiated a case against WHITE GOLD KLASTER LLC for violating Article 29 of the Law "On Competition" and the norms of the government resolution. Following the proceedings, a financial fine was imposed on the company in accordance with the law.

The department also issued a mandatory directive to the enterprise, requiring it to fully eliminate the committed violations and prevent similar incidents in its future operations.