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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of February 15, 2018 No. 118

About approval of the Regulations on procedure for forming and use of fund of development of defense industry complex

In pursuance of the Presidential decree of the Republic of Uzbekistan of November 20, 2017 the No. UP-5246 "About Formation of the State Committee of the Republic of Uzbekistan on Defense Industry" Cabinet of Ministers decides:

1. Approve Regulations on procedure for forming and use of fund of development of defense industry complex according to appendix.

2. To impose control of execution of this resolution on the deputy prime minister of the Republic of Uzbekistan - the chairman of the board of JSC Uzagrotekhsanoatholding N. S. Otazhonov and the chairman of the State committee of the Republic of Uzbekistan on defense industry A. S. Ibadullayev.

Prime Minister of the Republic of Uzbekistan
Abdullah Aripov

Appendix

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of February 15, 2018 No. 118

Regulations on procedure for forming and use of fund of development of defense industry complex

Chapter 1. General provisions

1. This Provision determines procedure for forming and use of fund of development of defense industry complex of the State committee of the Republic of Uzbekistan on defense industry (further - Fund).

2. The fund is created in the State committee of the Republic of Uzbekistan on defense industry (further - Committee) without formation of legal entity.

Chapter 2. Sources of forming of fund

3. Fund is created at the expense of the following sources:

a) the funds of the Government budget of the Republic of Uzbekistan allocated in accordance with the established procedure for development of defense industry complex;

b) the commission fees paid to Committee including:

1 percent from the cost of the signed import contract (commission agreement) on delivery of arms, the military and special equipment, rendering services of military and technical appointment;

1 percent from the cost of the signed contract (commission agreement) on the sales of products of military and dual purpose made by the companies of defense industry complex;

30 percent from the cost of the signed contract on realization for the foreign markets of the released military and technical property;

c) 100 percent of the means arriving from licensing by Committee, established by the legislation of fields of activity including the budgetary funds provided on the specified purposes in expense budgets of the relevant ministries and departments;

d) assignments of the organizations entering into structure of Committee which amount are determined in coordination with the Ministry of Finance of the Republic of Uzbekistan and the State committee of the Republic of Uzbekistan on assistance to the privatized companies and development of the competition;

e) 100 percent from the amount of the penalties levied in administrative and legal process from legal entities for violation (contractual) contractual commitments;

e) income gained from temporary placement of available funds of Fund in liquid financial instruments (deposits, securities, bonds, etc.);

g) other sources which are not forbidden by the legislation.

4. The means specified in Item 3 presents of the Provision accumulate on the bank accounts of Committee opened in divisions of the Central bank of the Republic of Uzbekistan.

Chapter 3. Use of fund

5. Fund is allocated on:

financing of programs and projects, including investment, on practical support of defense industry complex, development and building-up of its potential, and also creation of new productions;

financing of actions for development and upgrade of arms, military equipment and military and technical property;

carrying out research and development works in the sphere of defense industry;

the organization of works of experts, including international specialists, for projects implementation and actions in the sphere of development, production, repair, liquidation and conversion of products of military and dual purpose;

actions for retraining, advanced training of personnel of Committee, including in foreign educational institutions;

the organization of visits of delegations of foreign states, the international organizations staying to the Republic of Uzbekistan on the questions which are within the competence of Committee;

holding seminars, "round tables", conferences, practical training, trainings, preventive and other actions of Committee;

payment of traveling expenses to employees of Committee as within the country, and beyond its limits;

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