Eurocement faces losing Uzbekistan unit

Eurocement faces losing Uzbekistan unit
Published: 24 July 2014

Tagged Under: Uzbekistan Russia Eurocement 

Russian cement major Eurocement is facing the loss of its facility in Uzbekistan in a nationalisation drive by the central Asian country.

An Uzbek economic court in Tashkent has annulled Eurocement's 2006 acquisition of Uzbekistan's biggest cement producer, Akhangarancement, which could lead to its nationalisation.

Uzbek media reports on 22 July said the Uzbek State Competition Committee filed a lawsuit last week against Eurocement's purchase of Akhangarancement.

The Tashkent court ruling on 21 July paves the way for the plant, in which Eurocement acquired a 75 per cent in eight years ago, to be nationalised.

Sources close to Eurocement told RIA Novosti News Agency in Russia on 22 July that the court ruling will be appealed.

The Russian Foreign Ministry has defended Eurocement by stating: "The Russian Foreign Ministry together with other Russian ministries and departments always take measures to protect bona fide Russian investors, using the bilateral intergovernmental commission on economic cooperation," said the Foreign Ministry.

"There is also a possibility of using relevant provisions of agreements on the promotion and reciprocal protection of investments," the Foreign Ministry told Interfax.