Uzbekistan is located in the hinterland of Central Asia, bordering Afghanistan in the south, Kazakhstan in the north and northeast, Kyrgyzstan and Tajikistan in the east and southeast, and Turkmenistan in the west. The land area is 447,800 square kilometers and the population is 2,640 (as of April 2006 1 1). The economic development is backward, and the per capita GDP in 2005 was 495.4 US dollars. However, Ukraine is rich in mineral resources, especially oil and gas and gold resources, which has attracted great attention from international mining investors.
First, the present situation of mineral resources development
1. Oil and gas
Uzbekistan is rich in oil and gas resources and is an important country for future oil and gas growth in Central Asia. According to the data released by Uzbekistan, as of June, 2005, 65438+1 October1,the predicted natural gas reserves of Uzbekistan are 59029 trillion cubic meters, and the predicted oil and condensate reserves are165438+800 million tons. There are more than 160 oil and gas fields in Uzbekistan, which are mainly distributed in five oil and gas areas-UsCurt, Bukhara-Shiva, Southwest Guisard, Surhan River Basin and Fergana. The main oil fields are: Kangda Ri, Wuqi Kizil, Kokatyn, Tashi, Palva, Alamishk, Shu Ya, Sharikan-Kojabad; The main gas fields include Zalka, Mubalak and Shuertan.
Since Ukraine's independence, the oil and gas industry has developed rapidly. The output of oil and condensate reached a peak of 81.2000 tons in 1.999, 2.5 times that of 1.992. Since then, Ukraine's oil and condensate production has continued to decline. In 2005, * * * produced 5.45 million tons of oil and condensate oil, a decrease of 17% compared with the previous year and a decrease of 32.9% compared with 199 (Figure 1). Natural gas production increased steadily (Figure 2). In 2004, natural gas output increased by 4. 1%, reaching a historical peak of 59.865 billion cubic meters. In 2005, the natural gas output was 59.7 billion cubic meters, down 0.3% from the previous year. Natural gas accounts for 80% of Uzbekistan's current energy consumption structure, and oil accounts for 10 ~ 13%.
Figure 1 Variation Diagram of Crude Oil and Condensate Production in Uzbekistan
Fig. 2 Changes of natural gas production in Uzbekistan
Source: Website of Ministry of Commerce, Uzbek Statistical Committee.
Uzbekistan Oil and Gas Company is a monopoly state-owned enterprise group engaged in the exploration, exploitation, transportation, processing and sales of Uzbek oil and gas. The registered capital is 253.679 billion sum (end of 2005 1 USD 1 180 sum), and the product sales revenue in 2005 was 416.2 billion sum, an increase over the previous year. The net profit was 4.6/kloc-0.40 billion sum, up 62% year-on-year, and the total assets were 5,336 billion sum. In 2005, the total investment was 495.94 billion sum, up 27.2% year-on-year.
Uzbekistan has a strong oil and gas processing capacity. * * There are two large refineries processing crude oil and condensate oil: Fergana Refinery and Bukhara Refinery, both of which are subsidiaries of Uzbekistan Oil and Gas Company. The total annual processing capacity of the two crude oil processing enterprises is165438+200,000 tons. At present, the two companies have not reached the full workload, and intend to process with foreign companies.
At present, there are four large-scale natural gas processing enterprises in Uzbekistan: Mubalek Natural Gas Processing Plant, Shuertan Oil and Gas Plant, Shuertan Natural Gas Chemical General Factory and Uzbek Oil and Gas Exploitation Geological Drilling Company, all of which are subordinate enterprises of Uzbek Oil and Gas Company.
Ukrainian petroleum products and liquefied natural gas are mainly exported to Russia, Ukraine, Tajikistan and Kyrgyzstan. The natural gas produced is mainly exported to Kyrgyzstan, Tajikistan, Kazakhstan and Russia through gas pipelines.
2. Coal
According to the data released by Uzbekistan's State Statistical Committee, in 2005, Uzbekistan mined 3168,000 tons of coal, up 17.4% year-on-year. The mining capacity of open-pit coal mines was 2.859 million tons, a year-on-year increase of 22.5%; 309,000 tons of coal were mined underground, down 14.2% year-on-year. 3.095 million tons of lignite was mined, up17.2% year-on-year; 73,200 tons of bituminous coal were mined, a year-on-year increase of 26.2%. In the first half of 2006, Uzbekistan mined 654.38+709 million tons of coal, an increase of 8.5% over the same period in 2005.
The domestic monopoly coal producer is Uzbekistan Coal Company. In 2005, Uzbekistan Coal Company produced 2.92 million tons of coal, accounting for 92.2% of the national coal production. The main coal mine in operation is Anglian open-pit lignite mine in Tashkent, with proven reserves of about 654.38+0.9 billion tons. Another large coal company in Uzbekistan is Shaergong Coal Industry Co., Ltd., which mainly mines coal from Baisun Coal Mine and Shaergong Coal Mine. These two coal mines are located in Surhan River State, with a coal reserve of about 654.38+0 billion t. ..
Uzbekistan's annual demand for solid fuel is close to 4 million tons. Uzbekistan's State Power Company needs nearly 3 million tons of solid fuel every year, and it is the largest coal user in Uzbekistan.
3. golden
Uzbekistan is extremely rich in gold resources and the most important mineral resources in Uzbekistan. It is predicted that its potential gold reserves are about 5300 tons. If confirmed, this amount has already ranked second in the world. At present, there are 48 gold deposits that have been studied and proved in China, including many large gold deposits 100, with reserves exceeding 100 tons. Mulongtao gold deposit is the largest gold deposit, which occurs in early Paleozoic black shale. The proven gold reserves are about 2,000 tons, with an average grade of 3.5g/ ton. According to the data analysis, there will be 1830 tons of reserves in the deep part of the deposit (within the range of 1500m).
At present, nine gold producing areas in Uzbekistan are being mined, with an annual gold output of about 90 tons. There are mainly four enterprises engaged in gold mining. Nawoyi Mining and Metallurgy Consortium and Al marek Mining and Metallurgy Consortium are state-owned enterprises, as well as Ukrainian-American joint venture Zarafshan-new mont and Ukrainian-British joint venture Amantaytau Goldfildz. Among them, Navai Mining and Metallurgy Complex is the largest gold producer in Uzbekistan, and its gold output accounts for about two-thirds of the national output.
Zarafshan-Newmont, a Ukrainian-American joint venture, was established in 1992 and put into production in 1995. In 2005, Zarafshan-new mont * * * * produced 7.7 tons of gold. The joint venture has produced more than 100 tons of gold since it was put into production. On June 1 2006, the government of Uzbekistan cancelled the long-term preferential treatment provided by the government for the Zalaf Hill-Newmont joint venture, and the joint venture was in trouble. According to statistics, by June 30, 2006, Newmont's assets and liabilities in the joint venture reached nearly $94 million. On June 5438+ 10, 2006, the Economic Court of Navoi Prefecture of Uzbekistan declared the Zarafshan-new mont joint venture bankrupt, and at the same time supported the tax authorities' lawsuit against $49 million in unpaid taxes. The company will hold an auction at the end of 2006.
Amantaytau Goldfildz Co., Ltd., a Ukrainian-British joint venture, was established in 2003 with fixed assets of1/kloc-0.6 million US dollars, of which 50% is held by Oxus Resources of the United Kingdom, 40% by the Uzbek Geology and Minerals Committee and 10% by the Navai Mining and Metallurgy Consortium.
In addition, Korean companies have also joined the development of gold mines in Uzbekistan. In 2006, UZ-KORES MAINING, a joint venture between Uzbekistan and South Korea, began geological exploration of gold deposits in the "West -UCHTEPINSKII" area of Kizilkum Desert. The project is directly invested by Korea Resources Company. The first phase of the project is from 2006 to 2009, with an investment of 4.5 million US dollars for exploration. If gold is found, South Korea will continue to invest 200 million US dollars in mining. UZ- Korea Maintenance Company is a Ukrainian-Korean joint venture, which was established in March 2006 with a fixed capital of 8.4 million US dollars. According to the agreement, enterprises can carry out geological exploration within the permitted scope of 35 square kilometers.
4. Uranium
Uzbekistan is also rich in uranium resources and is one of the main reserves and producers of 10 in the world. According to the data of 5,438+10 in June, 2005, the recovery cost of Ukraine is ≤ 130 USD/kg, and the uranium resource is 76,936 tons. At present, 27 mineral deposits have been discovered, all of which are located in the hinterland of Kizilkum Desert.
Uzbekistan is a major uranium producer in the world. In 2005, it produced 230 1 ton of uranium, an increase of 14. 1% compared with 2004, ranking seventh in the world. Uranium deposits are concentrated in the hinterland of Kizilkum desert. The only uranium producer is Navai Mining and Metallurgy Corporation.
Since 2006, companies and enterprises from South Korea, Russia, Japan and other countries have asked Uzbekistan to jointly develop uranium mines. At the beginning of 2006, Russian Technical Equipment Export Corporation put forward a plan to establish a joint venture with Navai Mining and Metallurgy Consortium. In April 2006, Korea Resources Corporation and the Committee of Geology and Mineral Resources of Uzbekistan agreed to set up a uranium mining joint venture to develop DJANTUAR uranium mine in the central area of Kizilkum Desert, which is one of the largest uranium mines in Uzbekistan with proven reserves of 765,438+054 tons. The joint venture company is planned to be established in early 2007.
In addition, the Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding with the Ukrainian government on Japanese companies' participation in uranium development and loans to Ukraine. The French company "Cogema" also asked Uzbekistan to buy uranium raw materials.
5. Copper and zinc
The proven reserves of copper are about 6.5438+0.5 million tons, second only to Kazakhstan and second in Central Asia. Most of the reserves are concentrated in three large porphyry copper deposits in Almalek (Kalmajir, Sarei-Cheku and Dargnies). The proven zinc reserves are mainly concentrated in the Ucku-Kulach deposit in the central Gizak state and the Kandiza deposit in the southern Kashkadaria state.
Copper and zinc production in Uzbekistan is not high, and Almalyk Mining and Metallurgy Joint Company (AGMK) is the only copper and zinc producer in Uzbekistan. At present, the Al-marek super-large porphyry copper mine located in the southeast of the capital Tashkent mines copper. The zinc mine is mined in Kalmakyr and Sary-Cheku mines in Tashkent, and Ucku Lake mine in the central part of Kyrgyzstan. From June 1 to June 10 in 2006, zinc output increased by 2 1% to 40,268 tons compared with the same period in 2005, while refined copper output decreased by 12% to 75,735 tons.
Al marek Mining and Metallurgy Group not only produces copper and zinc, but also produces gold, silver and lead. In 2004, the company produced 6.5438+0.038 million tons of copper, 73.7 tons of silver and 654.38+0.2.5 tons of gold, with a net profit of 64.3 million US dollars, an increase of 46.8% over 2003. The net income from selling products was US$ 34.38 million, a year-on-year increase of 43.4%, of which US$ 23.26 million was exported. The fixed assets of enterprises increased by 28.5% in 2004.
4. Preferential policies for foreign investment
At present, Uzbekistan has no legal obstacles to foreign investment. Foreign investors can invest directly and buy shares of private joint-stock companies, and even own 65,438+000% of the shares of the company (but joint ventures are still the main channel to attract foreign investment at present). The State guarantees and protects the rights and interests of foreign investors engaged in commercial activities in Uzbekistan. Ukraine's foreign investment law stipulates that the state guarantees investors to protect the interests of foreign investors. If the laws promulgated by Ukraine are unfavorable to investors, investors can continue to use the old laws that were effective at the time of investment within 10 years from the date of investment, or they can choose to implement the favorable clauses in the new laws. The Investment Law stipulates that no state or local administrative organ may interfere with the legitimate business activities of foreign-capital enterprises or nationalize their assets. Foreign investors have the right to decide the ownership, use and control of their investments, and their profits and dividends can be freely remitted abroad, reinvested or used for any other purpose. In addition, the joint venture has the priority to transfer foreign exchange in domestic foreign exchange transactions; After registration, a joint venture naturally obtains the right to engage in foreign economic and trade activities, but it needs to register with the Ministry of Foreign Economic Relations.
In addition, wholly-owned and joint venture oil and gas exploration enterprises are exempt from profit tax within 7 years from the date of oil and gas exploitation. After seven years, the profits tax will be halved.
Third, the latest adjustment of the mining policy of the Ukrainian government.
1. Greatly increase the use tax of underground resources.
In the past two years, mining enterprises have become the main beneficiaries due to the sharp rise in international mineral prices. In order to get more benefits from it, the government has greatly increased the tax rate of underground resources use tax. First, the resource tax on precious metals and copper was raised. Since 2004, gold has increased from 2.8% to 5%, silver from 7% to 8%, copper from 7.9 to 8. 1%, and tungsten has remained at 8%, which is relatively high compared with other Asian countries. The royalty rates of most countries and mineral resources in Asia remain between 2-5%. For example, Indonesia's gold royalty rate is 3.75%, copper 4%, zinc and tin 3%; Thailand's gold royalty rate is 2.5%, and the Philippines' gold, copper, nickel and zinc royalty rates are all 2%. The increase of resource tax has increased the burden on mining enterprises. However, these have not stopped the government from raising the resource tax. Since June 65438+1 October1day, 2005, the government of Uzbekistan has greatly increased the resource tax on oil and natural gas. The oil exploitation resource tax rate is increased from 12.3% to 35%; Condensate oil increased from 6.7% to 32%; Natural gas increased from 18.5% to 58%. The oil and gas resource tax rate has increased by 3-4 times, far higher than the world average. This has led to the deterioration of the investment environment in the field of oil and gas resources development, the decline of foreign investment, the serious impact on the enthusiasm of production enterprises, and some enterprises are overwhelmed. Foreign and domestic oil and gas exploration enterprises expressed strong dissatisfaction with this and called on the government to change this policy. Since the introduction of this policy, Ukraine's oil and gas production, especially oil and condensate oil production, has shown a downward trend. In 2005, Ukraine's oil production decreased by 65,438+07.2%, and its natural gas production decreased by 0.3%.
Faced with this result, the Ukrainian government seems to realize the disadvantages of "high resource tax" and is prepared to reduce the resource tax from 1 in 2007. In any case, even if the resource tax is reduced, it is difficult to change the changeable characteristics of Ukrainian government policies. Mining is a high-risk industry with a long investment cycle. What investors want most is a long-term and stable policy environment. Unstable policies naturally increase the risk of mining investment.
2. Cancel the indefinite preferential policies for some foreign-funded enterprises.
According to the decree of the Ukrainian government, from June 1 2006, the Ukrainian government will cancel the indefinite preferential policies for some foreign-funded enterprises, including the indefinite preferential policies specially formulated by the Ukrainian government for the Ukrainian-American joint venture "Mount Zalaf-Newmont". Since the enterprise was put into production in 1995, it has been running smoothly in 10, and these preferential conditions of the government have played a very important role. In the past two years, due to the lower and lower gold content of processed ore, the company's gold output showed a downward trend. In 2005, "Zalaf Mountain-Newmont" actually produced 7.72 tons of gold, down 63% from the previous year. After the cancellation of preferential policies, the joint venture was in trouble. According to the company's statistics, by June 30, 2006, Newmont's assets and liabilities in the joint venture reached nearly $94 million. This American company is very dissatisfied with the decision of the Uzbek government. The company believes that the government did not act according to the original agreement, and the preferential policies stipulated in the agreement should be until the end of the project, while the government changed the regulations halfway. In addition, according to the investment laws of Uzbekistan, if the newly introduced investment policy worsens the investment conditions, foreign investors can continue to implement the investment policy effective on the investment date within 10 years. At the same time, you can also choose to implement the favorable provisions of the new law. The decision of the Ukrainian government not only failed to abide by the agreement between the two sides, but also violated the laws of the country. The American company decided to resort to international arbitration.
This incident has a great negative impact on Uzbekistan's mining investment environment.
3. Restructuring the National Oil and Gas Company
Uzbekistan Oil and Gas Company is a monopoly state-owned enterprise group for oil and gas development in Uzbekistan, and all links from exploration, exploitation, transportation, processing and sales to foreign investment and cooperative development are controlled by the company. By 2004, the company had 80,000 employees.
The group company was established in 1992. In the past two years, the company has undergone two major reorganizations. The first time was in June 2004, the oil and gas company was reorganized according to the scheme designed by French BNP financial consulting company, and the original eight subsidiaries were reduced to four subsidiaries, namely Uzbek oil and gas exploration company, Uzbek gas transportation company, Uzbek petroleum products company and Uzbek oil and gas machinery manufacturing company.
The second time was in the second half of 2006. According to the presidential decree signed by Uzbek President Karimov, the Ukrainian oil and gas company was reorganized again, and its subsidiaries were expanded from the original four to six. Its main contents include: Uzbek oil and gas exploration company is divided into Uzbek oil and gas geological drilling company and Uzbek oil and gas exploration company. The former is mainly responsible for exploration and drilling, while the latter is mainly responsible for the development and exploitation of oil and gas resources. The Shuertan Natural Gas Chemical Complex, which was originally under the jurisdiction of Uzbekistan Oil and Gas Company, was owned by Uzbekistan Oil and Gas Exploitation Company. In the first reorganization, the automobile natural gas company set aside from the oil and gas company was reorganized into a subsidiary "automobile natural gas sales company" and merged into "Uzbek natural gas transportation company". "Uzbek Petroleum Products" and "Uzbek Oil and Gas Machinery Manufacturing" companies still retain their original organizational systems.
In addition, the oil and gas company has newly established the "Uzbekistan Oil and Gas Construction Investment" company, whose main function is to be responsible for investment projects and capital construction in the oil and gas field in Uzbekistan. The institutional setup of the newly established oil and gas company is shown in Figure 3.
4. Expand oil and gas fields open to foreign investment.
At the beginning of 2006, Uzbekistan Oil and Gas Company announced that it would divide 12 oil and gas blocks for foreign investors to choose from. The total natural gas reserves in this 12 oil and gas block are about10.5 trillion cubic meters, and the liquid hydrocarbon reserves are about 350 million tons. At present, the information consulting center under the Ukrainian oil and gas company is preparing the relevant information of these 12 oil and gas blocks for foreign investors, and will be able to provide relevant information to foreign investors in 2006.
Ukrainian oil and gas company divides all oil and gas resources storage areas in Ukraine into 3 1 "investment blocks". Prior to this, the 13 block had been opened to foreign investors, and nine of them were under negotiation or had signed investment agreements, including Rucoi, Gazprom, China Oil and Gas Corporation and Petronas Malaysia.
Monopolistic Operation of Unified Purchase and Marketing —— Perspective of Cotton Industry in Uzbekistan
Uzbekistan is one of the major cotton producers in the world. Cotton industry has been a pillar industry in Ukraine since 150. During the period of the former Soviet Union (1970- 1985), the annual cotton output in Ukraine reached the highest level in history. Since independence, the output of seed cotton has been maintained at about 3 million tons to 3.6 million tons per year, accounting for about 5% of the world's total cotton output, ranking fifth to sixth in the world (slightly changed according to the annual cotton output in Brazil). The annual export volume is about 700,000-900,000 tons, accounting for 1 1% of the world's total cotton exports, ranking second in the world after the United States. The remaining 20%-30% (about 300,000 tons) is partly used in the domestic textile industry.
Ukraine 12 states and one country all produce cotton, and * * * has 142 cotton producing areas. Among them, the areas with higher cotton production are Kashgar, Bukhara, Surhan River, Fergana, Andijan and Tashkent. However, affected by climate and water quality, only Surhan River, Bukhara, Kashkadaria and Navai have the best cotton quality. More than 90% of black cotton is medium-staple cotton, and less than 5% is long-staple cotton. There are about 7-8 varieties of cotton in Ukraine, among which "Bukhara -6" is the best (equivalent to second-class cotton in Xinjiang) and won the gold medal in Liverpool Cotton Exchange. Due to the aging equipment in most cotton ginning plants and the low efficiency of the lint picker, the lint yield is only about 32%, which is lower than the average of 35% in Xinjiang and 37%-38% in southern Xinjiang. The oil yield of black cottonseed is only 10%- 15%, which is far lower than the oil yield of 23% in China.
Ukraine monopolized cotton.
There are two channels for Uzbekistan's cotton export: the four major cotton companies under the Ministry of Foreign Trade and Economic Cooperation (one of which mainly exports cotton linters) and the Uzbekistan Raw Materials Commodity Exchange. The annual "Uzbekistan International Cotton Exhibition" is an important place for Uzbekistan to show its achievements in cotton industry.
Cotton production in Ukraine still belongs to the planned economic system of "unified purchase and marketing". The Uzbek Cotton Industry Association, which was restructured from the former Ukrainian Ministry of Cotton, is responsible for the production, processing, acquisition and transportation of cotton in that country. "Cotton Association" assigns cotton production tasks to individual farmers and private farmers through its branches in each state, and is responsible for allocating funds, seeds, fertilizers, pesticides and water resources.
After cotton harvest, cotton farmers should sell the seed cotton within the production quota to the cotton association according to the national "instruction price"; According to the agreement signed with the cotton association, the ginning factory processes the seed cotton into lint, and then sends it to 22 cotton distribution centers (also known as "storage warehouses") set up by the state for shipment and export, or sends it to textile mills for further processing. Cotton farmers who have completed the sales quota can sell the surplus cotton to the branches of the cotton associations in various states at the "guide price", and then the traders in the branches of the cotton associations in various states will take it to the national raw materials commodity exchange for listing.
Ukraine monopolizes the export of cotton, and only four major companies under the Ministry of Foreign Trade and Economic Cooperation have the right to export cotton and cotton linters. Foreign companies must sign contracts with state-owned cotton companies to get large cotton orders. According to the international market situation and cotton shortage, foreign companies must pay 30%-80% advance payment to the special account of Ukraine's state-owned "State Foreign Economic Bank", and the bank will issue a performance guarantee to foreign companies. The rest can be settled by opening a "sight letter of credit" with railway bills and other documents. This trade method has a long history in Ukraine. After long-term observation, there are few breaches.
Ukrainian Raw Materials Commodity Exchange "The main commodities traded by Uzbekistan Raw Materials Commodity Exchange are: refined oil, grain, building materials, nonferrous and ferrous metals, chemical products, etc. Cotton is one of them. In the first half of 2007, the exchange traded 75,000 tons of lint. The price of cotton purchased by the exchange fluctuates with the international market, and orders can be placed flexibly according to the expected price, so there is a lot of room for price and variety selection. Unnecessary "extra" expenses can be avoided. The disadvantage is that the exchange requires 100% advance payment and does not issue a bank guarantee.
The main export channels of Ukrainian cotton
At present, the main export routes of Uzbekistan's cotton are: Iranian bandar abbas, Baltic ports (mainly Riga port in Latvia), Ukrainian Illichevski port, Russian port and Alashankou in China. With the transfer of the world textile industry center to Southeast Asia, Ukrainian cotton exports to Southeast Asia have increased. The Ukrainian government is studying a new southward "Afghanistan Transport Corridor", which starts from the southern border city of Termez in the north, passes through Mazar-e-Sharif and Herat in Afghanistan, enters the eastern Iranian city of Zahedan, and then directly leads to Bachel Port or bandar abbas. This transportation line can shorten the transportation distance1100km, save the transit time 12 days and reduce the transportation cost by 20%.
At present, Uzbekistan's cotton is mainly exported to China, Russian, Indian, Korean, Singaporean, Bangladeshi, Vietnamese and United Arab Emirates. At present, China is the largest cotton importer in Ukraine, and Ukraine is the second largest cotton exporter to China in the world (the first in the United States).
The annual output of cotton staple fiber in Ukraine is only tens of thousands of tons. Only one company operates, and the demand exceeds the supply. Therefore, the trading conditions of cotton staple fiber are more stringent (such as requiring 100% in advance), and its "hidden rules" are more obvious. There are nearly 300 large-scale agricultural enterprises engaged in cotton cultivation in Ukraine, with 88,800 individual farmers. According to the statistics of 2006, 85% of cotton is produced by private farms. In 2005-2006, the price of cotton purchased by the state from cotton farmers was $235/ton and $300/ton respectively, and the export price was $65,438+$065,438+$080/ton-$65,438+$0,300/ton. Although the price difference is huge, please don't try to buy it privately, otherwise it will bring great trouble.
From June 5, 2005 to 10, the annual "Uzbekistan International Cotton Exhibition" is an important window for Uzbekistan to show its cotton industry to the outside world. In 2006, more than 350 delegates from 35 countries and more than 250 foreign companies participated in the second cotton fair.
Advantages and Disadvantages of Enterprise Investment in China
According to the Textile Industry Development Plan for 2005-2008 formulated by the Ukrainian government, Uzbekistan will gradually reduce the export of seed cotton, expand the domestic processing capacity, and strive to increase the existing domestic processing ratio from 25% to more than 50% by 2008. Ukrainian officials have repeatedly stated that the cotton planting area and output will not be expanded in 2006-20 10, and the output of seed cotton will be maintained at about 3.6 million tons, while the lint cotton will be maintained at the level of10/2500 tons. At the same time, with the improvement of Ukraine's cotton deep processing capacity, Ukraine's cotton exports will decrease year by year, and will remain at 530,000-550,000 tons by 20 10.
The Ukrainian government encourages foreign investors to invest in the cotton spinning industry and establish new factories for spinning, weaving and garment manufacturing; Improve the output of the old factory through equipment transformation and technical renewal. There are many advantages in investing in the cotton spinning industry in Ukraine: 1, the political situation is relatively stable and the economy is growing steadily. The raw material market is stable and the product sales market has great potential; 2. Foreign investors enjoy tax reduction or exemption. The minimum registered capital of an enterprise is US$ 6.5438+US$ 500,000. If the investment is between US$ 300,000 and US$ 3 million, profits tax and property tax will be exempted for three years; if the investment is between US$ 3 million and US$ 6.5438+US$ 0,000, it will be exempted for five years; if the investment is above US$ 6.5438+US$ 0,000, it will be exempted for seven years. At the same time, foreign investors also enjoy preferential policies of exemption from import duties and value-added tax for the technical equipment and materials needed for production brought into Ukraine as investment; 3. Foreign-funded enterprises can enjoy a discount of 65,438+05% lower than the market of Liverpool Cotton Exchange when purchasing local cotton as raw materials. If foreign-funded enterprises can complete the whole process from cotton raw materials to finished products and export 80% products, the cotton price can be reduced to 20%. 4. Labor, energy and electric power resources are cheap and have comparative advantages; There is a large export market for cotton yarn and textiles, which can not only meet the market demand of more than 26 million people in Uzbekistan, but also be exported to China, Russian, Indian, Vietnamese, Central and Eastern European countries and the European Union.
Obstacles and unfavorable factors encountered in investment: First, the Ukrainian economy is dominated by "people", and the cotton industry is a monopoly industry with a high degree of "planned economy", which will be strongly affected by the "plan" in cotton raw material supply, electricity and natural gas distribution. Second, there are few skilled workers. Although Ukrainian officials say that the education level of the national population is above 99.9%, compared with the dexterous hands of parking workers in China factories, there are few truly skilled textile women workers in Ukraine. It needs a lot of training and is easy to lose. Thirdly, it is difficult for technicians and managers in China to obtain visas and long-term residency. Often a delay is half a year or half a year, which wastes the energy of enterprise managers and greatly increases the unnecessary expenses of enterprises. Fourth, the remittance cycle is long, and enterprises are often worried about the return of profits. In the past two years, Ukraine's total foreign trade has remained at around 654.38+0 billion US dollars, with a surplus of more than one billion US dollars. Therefore, in a normal year, the remittance cycle of an enterprise is generally 1-2 months; Catch up with the national centralized repayment period, the remittance time can be as long as 6-8 months, which will cause great confusion to the business operation.