RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of February 10, 2021 No. PP-4986

About measures for investment attraction in further development of information technologies and communications

For the purpose of investment attraction for the accelerated development of digital economy in the republic, stimulations of broad use of innovative technologies in economy industries, and also in pursuance of the tasks determined in Strategy "Digital Uzbekistan-2030":

1. Take into consideration that:

between the Government of the Republic of Uzbekistan and MegaFon public joint stock company (Russian Federation) (further - PJSC MegaFon) the Framework agreement on creation of Digital Holding joint business is signed;

PJSC MegaFon and YueSeM Telecom limited liability company found in the Russian Federation the company in the form of Didzhital Invest limited liability company (further - Didzhital Invest LLC).

2. Approve the Investment agreement concerning the project in the field of information technologies and telecommunications in the Republic of Uzbekistan (further - the Investment agreement) signed between the Government of the Republic of Uzbekistan on behalf of the Ministry of investments and foreign trade of the Republic of Uzbekistan and Didzhital Invest LLC, providing:

the organization of activities in the territory of the Republic of Uzbekistan of the Uzbek-Russian joint business "Digital Holding" in the form of limited liability company (further - JV Digital Holding LLC);

participation of the Agency on management of the state assets of the Republic of Uzbekistan in authorized capital of JV Digital Holding LLC from shares in the amount of 49 percent and Didzhital Invest LLC (Russian Federation) from shares in the amount of 51 percent;

transfer by the Agency on management of the state assets of the Republic of Uzbekistan of the state share in the amount of 100 percent in authorized capital of COSCOM LLC as contribution to authorized capital of JV Digital Holding LLC;

transfer of shares of Didzhital Invest LLC in the amount of 100 percent in the authorized capital of CRPT Turon LLC and ICS Holding Uzbekistan LLC, and also money in the amount of 100 million US dollars (or equivalent of this amount in other foreign currency) as contribution of Didzhital Invest LLC to authorized capital of JV Digital Holding LLC.

3. Determine the main objectives of JV Digital Holding LLC:

rendering consulting assistance in implementation of innovative platforms for development of innovative and technological activity in the financial and technical sector and electronic commerce, and also increase in efficiency of the sphere of informatization and in implementation of modern telecommunication technologies in the republic;

contribution to forming of high-technology telecommunication infrastructure for acceleration of processes of digitalization and development of innovative activities according to international standards;

enhancement existing and construction of new telecommunication infrastructure for the purpose of expansion of access to telecommunication services in the territory of the Republic of Uzbekistan and to improvement of quality of their provision;

participation in creation of system of marking and control (tracking) of movement of separate types of goods;

creation of modern high-technology system of financial payment services and services of loyalty for stimulation of development of local and international goods turnover;

implementation of the mechanism of electronic commerce (digital marketpleys) for simplification of access of the population to wide range of products, including acquisitions their online, excepting need of construction of costly physical network of payment acceptance;

contribution (on the basis of economic agreements) to implementation of advanced technologies and use of modern systems, including in spheres of information security, support systems of business and data storage, and also complex integration.

4. Determine that:

a) JV Digital Holding LLC can be founded and registered with the specified name of Didzhital Invest LLC (Russian Federation) as the single founder, and ICS Holding Uzbekistan LLC can be founded and registered with the YueSeM Telecom limited liability company (Russian Federation) specified by the name as the single founder;

b) Didzhital Invest LLC and JV Digital Holding LLC (including as the tax agent of Didzhital Invest LLC) are exempted on effective period of the Investment agreement from payment:

the income tax at source of payment for the income in type of dividends in case of dividend payout and profit distribution of COSCOM LLC, CRPT Turon LLC, ICS Holding Uzbekistan LLC and other child economic societies of JV Digital Holding LLC (at the same time in case of repatriation of profit to the foreign investor the established tax liabilities regarding the income tax at source of payment for the income in type of dividends will become covered completely);

all types of tax arising or calculated in the course of introduction of deposits to authorized capital of JV Digital Holding LLC, including in the course of forming of authorized capital of JV Digital Holding LLC under its organization and also in the course of the subsequent increases in authorized capital of JV Digital Holding LLC (except as specified when such increase in authorized fund is performed for the retained earnings account of JV Digital Holding LLC, including received in the form of dividends from child economic societies);

c) the debt of COSCOM LLC to the Agency on management of the state assets of the Republic of Uzbekistan is not recognized gratuitously the acquired right to use by money, including for the purpose of application of article 299 of the Tax Code of the Republic of Uzbekistan, and does not lead to formation of the taxable income of OOO "COSCOM";

d) the requirements and conditions shown within licensing and allowing procedures in the field of telecommunications are single and identical to all mobile operators performing the activities in the territory of the Republic of Uzbekistan;

e) holding procurement procedures is performed by JV Digital Holding LLC and its child economic societies according to internal corporate regulations taking into account that the share of the state in their authorized funds constitutes less than 50 percent.

In case of subsequent change of the legislation concerning holding procurement procedures to provide to JV Digital Holding LLC and its subsidiaries the right to perform procurement procedures according to internal corporate regulations.

5. Permit:

alienation of the state share in authorized capital of COSCOM LLC cost 201, 4 million US dollars by its transfer to authorized capital of JV Digital Holding LLC as contribution of the Agency on management of the state assets of the Republic of Uzbekistan;

to state bodies and other organizations to conclude with JV Digital Holding LLC and its child economic societies contracts and agreements without carrying out the tender (competitive) biddings on the basis of carrying out direct negotiations.

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