Financial Crime World

Uzbekistan’s Gold Reserves Increase by 7 Tons, Trade with Switzerland Sees Decline

Central Bank Reports Increase in Gold Reserves

Tashkent, Uzbekistan - The Central Bank of Uzbekistan has announced that the country’s gold reserves have increased by 7 tons compared to last year. This development comes as no surprise, given the global decline in gold prices in recent years.

Trade with Switzerland Sees Decline

In related news, Uzbekistan stopped selling gold to Switzerland in September 2020 due to a drop in world market prices and resumed exports in June 2021. The country’s trade with Switzerland saw a decline, with imports decreasing by 33.8% to $2.9 billion in 2020.

Imports See Decline, Except for Medical and Pharmaceutical Products

According to the Swiss Federal Customs Administration, imports from Uzbekistan declined across various categories, except for:

  • Medical and pharmaceutical products: an increase of 24.6% to $1.2 billion
  • Essential oils, resinoids, and perfumery substances: an increase of 21.5% to $237.9 million

Bilateral Trade Discrepancies

There were discrepancies in the reporting of bilateral trade between Uzbekistan and Switzerland. The Swiss Federal Customs Administration reported a total trade value of 70.7 million CHF, while the Central Bank of Uzbekistan reported a total trade value of $106.8 million. Both reports showed a decline in trade.

Swiss Companies Invest in Uzbekistan

Despite the challenges faced by Uzbekistan’s business environment, several Swiss companies have continued to invest in the country:

  • Rieter: a leading manufacturer of textile machinery, opened a factory in Tashkent in 2012 and has since expanded its operations.
  • Nestlé: sold its dairy and water production capacities to Lactalis but continues to import and market other food products.

Investment Protection Agreement

An investment protection agreement exists between Uzbekistan and Switzerland, but it is not always strictly respected by the Uzbek side.

Trade Promotion Instruments Limited

Due to the challenging trading and investment climate in Uzbekistan, there are limited standardized support mechanisms for Swiss companies looking to invest in the country. However:

  • Swiss government: offers an export risk guarantee or credit guarantee for longer-term financing.
  • Embassy of Switzerland: promotes trade and economic cooperation with Uzbekistan through various channels, including the SECO Startup Fund (SSF). The fund provides loans to investors resident in Switzerland who wish to invest in start-ups in Uzbekistan.