RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of November 24, 2022 No. PP-430

About expansion of use of exchange mechanisms in industries of economy and enhancement of system of regulation of stock exchange trading

For the purpose of further expansion of operations on the stock exchange, enhancement of regulation of activities of the commodity and raw exchanges and their professional participants, widespread introduction in practice of modern mechanisms of the organization of trade in commodity derivatives, including future trade, and also ensuring execution of the tasks determined by the State program by strategy implementation of development of New Uzbekistan for 2022 - 2026 in "Year of ensuring interests of the person and development waved", the Republic of Uzbekistan approved by the Presidential decree of January 28, 2022 No. UP-60:

1. Determine that:

in case of state registration and registration of subjects of entrepreneurship the procedure for their simultaneous accreditation in exchange system takes root;

the requirement of obligatory receipt of the electronic digital signature by foreign suppliers for participation in system of public procurements is cancelled;

the section of the perspective products of subjects of entrepreneurship which are not relating to highly liquid and exclusive goods for the purpose of realization by means of the exchange biddings is created;

for subjects of entrepreneurship the possibility of use at will by the guaranteed settlement servicing under the direct agreements signed out of the exchange by means of settlement and clearing system of the exchange is created;

the procedure for sales of products under "forward" contracts extends also to the export-import agreements signed by means of the exchange biddings.

2. Establish procedure according to which during the period from December 1, 2022 to January 1, 2026 in the domestic market only by means of the exchange biddings realization the following goods is subject:

a) made by enterprise monopolists and (or) legal entities, in authorized fund (capital) of which the state share constitutes 50 percent and more, legal entities, in authorized fund which (capital) of 50 percent and more belongs to legal entities, in authorized fund (capital) of which the state share constitutes 50 percent and more (further - the organizations monopolists and the organizations with the state participation), - in the amount of 100 percent of production volume spheres steel, sheet rolling of metal, oxide of liquid carbon, industrial oxygen, the caustic soda, coke oil, synthetic naphtha, the bard;

b) made by the legal entities who are not monopolists, and (or) legal entities in authorized fund (capital) of which the state share constitutes less than 50 percent, or the legal entities who do not have the state share:

sheet rolling of metal and cement - in the amount of at least 50 percent of production volume;

cotton seeds, cotton oil (including extraction cotton oil), the processed waste of seeds (meal, peel) and consumer ethyl alcohol - in the amount of 100 percent of production volume.

At the same time business entities expose on the exchange biddings the part of the goods specified in this Item exceeding the amount used by them for own needs.

3. Implement the system of prevention of sharp price increase and formation of artificial deficit in the domestic market providing:

control by antimonopoly authority of approval by business entities of schedules of exposure to the exchange biddings of the highly liquid and exclusive products which are subject to obligatory exposure to the exchange biddings, depending on production volumes, the available opportunities and reserves during acute fluctuation of the prices;

in case of realization on the basis of direct agreements of the highly liquid and exclusive products which are subject to obligatory exposure to the exchange biddings - calculation of the value added tax and income tax for the established rate bodies of the State Tax Service on difference amount between the calculated average quotation (price) created on homogeneous products following the results of the exchange biddings on the date of realization and the price specified in direct agreements;

implementation by Committee on development of the competition and consumer protection and the State Tax Committee of mechanisms of tracking of real market prices of goods and early identification of the facts of coordinated actions and collusion, manipulations and other violations of the law by integration of the information systems with information systems of the commodity and raw exchanges.

At the same time responsibility for guaranteeing confidentiality of data on operations on the stock exchange and target use of exchange information is assigned to the corresponding officials of the state bodies which implemented data exchange.

4. Determine that:

directing or acceptance by state governing bodies of the decisions influencing results of the exchange biddings including setting restrictions in relation to participants of the goods market and the prices offered by them are prohibited;

highly liquid, exclusive and demanded types of products, raw materials and materials which based on relevant decisions of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan are subject to realization at the exchange biddings by enterprise monopolists and (or) legal entities in authorized fund (authorized capital) of which the state share constitutes 50 percent and more, or legal entities, in authorized fund which (authorized capital) of 50 percent and more belongs to the legal entity from shares of the state of 50 percent and more, are implemented till December 1, 2027 only at the Uzbek republican commodity and raw exchange on the basis of the market principles.

5. To the Ministry of Economic Development and reducings poverty and to the Antimonopoly Committee till March 1, 2023 to develop the Development strategy of the Uzbek republican commodity and raw exchange with involvement of foreign experts and the consulting companies. At the same time to provide:

implementation into practice the mechanisms of trade and commodity derivatives which are widely put at the large exchanges of the world, and also expansion of use of information technologies in this sphere;

the creation of system of complex assessment of offers and goods prices demanded at the level of national and regional economy, and also possible risks on them and the available opportunities;

implementation of the methodologies and the advanced simulyatsionny software directed to forming of skills of use of electronic systems of stock exchange trading and public procurements at representatives of subjects of entrepreneurship;

implementation of financial accounting and receipt of the international credit rating following the results of 2022 on the basis of International accounting standards (IFRS);

carrying out substantive audit of the financial reporting of the exchange following the results of 2022 on the basis of international standards of audit with attraction of one of auditing organizations of "big chetvertka" ("big four").

6. To the Cabinet of Ministers in week time to make the Government decision providing:

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