Accords on direct cotton export from Uzbekistan to some Russian regions were recently signed in Tashkent. Direct export will bypass numerous "intermediaries" who boost the end price by at least 30%.

Direct export of cotton from Uzbekistan to the Ivanovo region of Russia accounts for only 4% of total Uzbek cotton export for the time being. The Uzbek cotton is getting to Ivanovo via the Virgin Islands. Its export amounted to 31,000 tons in 2005; 10,000 tons were exported from the United States itself, 6,000 tons from Switzerland, 2,500 tons from Denmark, and 1,300 tons from Salvador. Direct export from Uzbekistan amounted to less than 2,000 tons.

The common market of commodities, investments, and services within the Eurasian Economic Community with its price, customs, tax, and other preferences is expected to change the situation dramatically. Uzbekistan joined the bloc in 2006, and negotiations over the matter are under way now. The existing problems are rooted in the prices (world prices or mutually acceptable), commodity credit terms, terms of preferences and their application to all trade within the bloc, and transport tariffs. Uzbekistan offers long-term direct export of cotton to Russia. (Belarus is importing 70% of all cotton from the Central Asian region directly.)

Rossiiskaya Biznes-Gazeta, May 16, 2006

© Translated by Ferghana.Ru