DEVELOPMENT OF COMPETITION AND REFORM OF ENTERPRISES WITH THE STATE SHARES

2. DEVELOPMENT OF COMPETITION AND REFORM OF ENTERPRISES WITH THE STATE SHARES Deputy Chairman of the State Committee for Competition Development D.B.Yunusov

3. 1 Trade liberalization

4. 1 Transition to market pricing The authority of state bodies to approve price limits for products, volumes and location of their distribution has been abolished Introduced the order of sale on the domestic market based on market principles exclusively through exchange trading of 27 types of highly liquid and monopolistic goods • Reduced state regulation of prices from 120 types of goods to 30 types of socially significant goods and introduced a mechanism for determining monopoly high and low prices. 1 2 3

5. The dynamics of reducing the number of economic entities dominant in the markets and subjects of natural monopolies 1 Economic entities dominating the commodity or financial market Subjects of natural monopolies Over the past three years, the number has decreased by 26 economic entities Over the past three years, the number has declined by 123 economic entities.

6. 1 Scheduled events Consolidation of rules governing relations in the field of competition, currently consisting of many separate bylaws Introduction of measures of responsibility with respect to subjects of natural monopolies on a par with monopolistic enterprises 01 Increasing responsibility for violation of competitive rules by reanimation of the application of penalties Avoiding the principle of maintaining the register of monopolists and improving the definition of dominance of the market entity Ensuring the correlation of intellectual property rights and antitrust regulation 02 03 04 A critical review of the list of areas of natural monopolies to reduce the areas of activity for which government regulation will be carried out 05 06

7. Reform of enterprises with a state share 2 and more Oil and gas Construction sphere Mechanical engineering Chemical industry Навои азот Кокандский суперфосфатный завод Фергана азот Самарканд киме 7

8. 2 CURRENT STATE NUMBER OF ENTERPRISES WITH PARTICIPATION OF THE STATE Local government bodies 972 572 Number of joint-stock companies (JSC) with state participation Number of state-owned unitary enterprises (by region) Center on state assets management under The Committee for competition development 208 194 Other state institutions and state enterprises

9. 208 State Attorneys 68 22 4 Management Company Sectoral ministries and departments

10. 2 TAKEN MEASURES Corporate Governance Code Improving legislation The laws of the Republic of Uzbekistan “On Joint Stock Companies and Protection of Shareholders' Rights” and “On the Securities Market” were adopted in the new edition Developed on the basis of the principles of the OECD and approved on 12/31/2015. 06 01 Corporate Governance Rules KPI 05 02 Developed on the basis of the updated OECD principles, the Rules were approved in 2018. and implemented in 7 large joint-stock companies Approved by the Resolution of the Cabinet of Ministers dated July 28, 2015. No. 207 and are mandatory for implementation in enterprises with state participation 04 03 UPCI IFRS The Unified portal of corporate information (www.openinfo.uz) was launched, on which financial reports and essential facts of the JSC are disclosed. At the legislative level, there is a provision for the transition to the publication of financial reporting under IFRS.

11. 2 COOPERATION WITH FOREIGN ORGANIZATIONS Korea Exchange THE WORLD BANK development of a strategy for reforming enterprises with a state share and a set of measures to introduce efficiency. Within the framework of cooperation with the Korean Stock Exchange, the Unified Software and Technology Complex was launched, worth more than $ 6.0 million. EBRD German Ministry of Finance ASIAN DEVELOPMENT BANK in the field of reforming and privatizing state enterprises, introducing corporate methods of corporate governance Jointly developed Corporate Governance Rules for enterprises with state participation. Continuing work on the practical implementation of these Rules. The Corporate Governance Code was developed jointly with Indecon Consulting, a company attracted by the German Ministry of Finance, and finalized with the World Bank and ADB.

12. 2 SCHEDULED EVENTS Development of a strategy for reforming enterprises with a state share, including, in part, the transfer of state shares in the introduction of various government bodies to a single body Development of a set of measures for the implementation of performance indicators of state-owned enterprises, including the introduction of the monitoring structure of state-owned enterprises Taking measures to improve the rating in the “Doing Business” report in the direction of “Protecting Minority Investors” 01 Improving the procedure for transferring state share holdings (shares) to the pre-management Continuation of the initial and secondary public offer of shares (IPO and SPO) of a JSC with state share 02 03 04 Development of state property policy, including criteria and rationale for the state’s retention of state shares 05 06

13. 2 SCHEDULED EVENTS Inclusion in the supervisory councils in the joint-stock company with a state share of independent members 07 Establishment of committees for supervisory boards Improving the activities of state control bodies with enterprises The transition to the selection of managers on a competitive basis The abolition of the institution of state attorneys with the assignment of these functions to other members of the supervisory boards 08 09 10 Practical implementation of corporate governance rules for enterprises with state participation 11 12

14. THANKS FOR ATTENTION !