Ukraine and Uzbekistan reached agreement to develop bilateral cooperation in power industry, farm machine-building and development of transport corridors, Ukrainian News reported on 26 April.

Prime Minister Viktor Yanukovych said Ukraine and Uzbekistan had reached completion of the creation of a free trade zone between the two countries.

On 2 April, the Parliament of Uzbekistan ratified the agreement on cancelling exempts from the free trade regulations between the two countries, including restrictions on trade in alcohol, tobacco and pharmaceuticals.

In this connection, the parties are hoping for increase in mutual trade from US$630 million in 2006 to US$1 billion in 2007.