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Moscow and Dushanbe sign an agreement on economic cooperation

Moscow and Dushanbe sign an agreement on economic cooperation

Last November, Moscow Mayor Sergey Sobyanin and Dushanbe Chairman (Mayor) Rustam Emomali signed an agreement on economic cooperation. The document will be valid for three years and provides for the exchange of existing experience, as well as the implementation of a number of Russian-Tajik projects in trade and services, construction, transport and other sectors. In addition, the sides continued discussing a project to create a business card of the republic in Russia - the national pavilion of Tajikistan at the Exhibition of Economic Achievements of the USSR.

The press service of the Moscow City Government pointed out that the cooperation program between the Moscow City Government and the executive body of the Dushanbe Government will last from 2020 to 2023. The document provides for joint work between the two capitals in the following areas:

  • urban transport;
  • landscaping and urban construction;
  • development of entrepreneurial activity (especially in the field of trade and services);
  • information and telecommunication technologies;
  • innovation and industry;
  • public health;
  • the sphere of physical culture and youth policy.

In addition to the implementation of joint projects, the program provides for the exchange of experience between Moscow and Dushanbe in important social areas:

  • development of transport infrastructure, road construction, including the development and implementation of a "smart" transport system and virtual modeling of traffic flows;
  • Creation of an effective system of parking for vehicles and transport interchange hubs in the cities;
  • organization of refresher courses in Moscow schools for teachers who teach Russian in the capital of Tajikistan;
  • Organization of refresher courses in Moscow hospitals and polyclinics for pediatricians, infectious disease specialists, general practitioners on infectious diseases, for IT specialists of a new profile - telemedicine;
  • organization of international youth festivals.

At the very beginning of the meeting with the head of Dushanbe, the mayor of Moscow noted that the partnership relations between the two capitals in recent years have shown extremely positive dynamics. In addition, they have a huge potential, which should definitely be realized after the coronavirus pandemic ends and the restrictions are lifted.

Rustam Emomali fully agreed with Sergey Sobyanin and, in turn, stressed that the two capitals are now linked not only by good friendly relations, but also by the global goals of strategic partnership. The representative of the republic also expressed his deep gratitude for the fact that physicians in Dushanbe during the height of the pandemic were actively advised by colleagues in Moscow, in spite of their total employment.

Moscow and Dushanbe have been partners since 1995, when the first agreement on economic cooperation was signed (July 7, 1995). A year later the two capitals signed another similar agreement (November 29, 1996). Overall, the total volume of trade between the Russian and Tajik capitals in 2019 increased by 9.9% compared to 2018, amounting to a total of $58.8 million. If we talk about exports from Moscow to Tajikistan, in monetary terms the figure turned out to be 50.4 million dollars. Imports from the republic totaled $8.4 million.

Tajikistan is not the only republic of the former Soviet Union with whom Moscow has long-standing trade and economic cooperation. For example, the Russian-Uzbek relations in this area began even earlier, in 1992, when the Moscow authorities signed an agreement on trade relations with Uzbekistan (on November 13, 1992). After that two more similar documents were formalized: the Agreement on strategic partnership from June 16, 2004 and the Agreement on allied relations from November 14, 2005. These international agreements reflect the key principles of cooperation between the Russian Federation and Uzbekistan in the following areas:

- military-political;
- trade and economic
- transport and communications;
- humanitarian.

Currently, our country is one of the key strategic partners of the republic in the economy: the Russian Federation accounts for about 20% of the total turnover in the structure of Uzbekistan's foreign trade activities.

In 2018, trade turnover between the two countries increased by 20%, and it does not seem to be about to decrease. Thus, only in the first four months of 2019, the figure was another 11.6% more than the same period in 2018, amounting in monetary terms to more than $ 1.4 billion.

In addition to trade cooperation, Russia is one of Uzbekistan's key partners in investment activities. The total volume of investments of Russian companies in the economy of Uzbekistan has now exceeded the threshold of $7 billion.

Today there are more than 950 enterprises in the republic that in one way or another employ Russian capital. More than 800 of them are joint ventures and about 150 have 100% Russian capital. More than 50 companies from Russia are accredited in Uzbekistan. In turn, as of 2017, 569 enterprises with the participation of residents of Uzbekistan were opened in Russia.

The main investments come from the fuel and energy sector. For example, PJSC "Lukoil" in April 2016 began the construction of the Kandym gas processing complex, a key production facility as part of the development of the Kandym group of gas condensate fields. The Company is also implementing the South-West Gissar project and participates in the Aral block development project. Total volume of capital investments for realization of this purpose makes up $12 million.

Since 2006, Gazprom has invested more than 400 million dollars in the Uzbek fuel and energy complex.