Uzbekistan announces measures to stabilise cement prices

Uzbek President, Shavkat Mirziyoyev, has signed a resolution "On Additional Measures for Stable Provision of the Internal Market with Cement," designed to give stability to Uzbekistan's cement market.

The document emphasises that the volume of cement production in Uzbekistan and the pricing mechanisms for the product have a negative impact on ensuring the quality and timely completion of the construction of facilities.

In accordance with the document, monopoly enterprises will sell 2Mt of cement under bilateral agreements with 100 per cent prepayment at a price of UZS367,000 (US$45.5)/t (including VAT) to contractors who are building affordable housing, transport infrastructure and water management facilities for state enterprises.

Uzbekistan's head of state also increased the threshold for producers of cement after which the revenue received is considered a super profit. In particular, the amount of tax base for cement increased from UZS145,000/t up to 280,000 (US$34.70) and clinker from UZS120,000 to UZS260,000 (US$32.20).