The Uzbek government plans to denationalize about 1,000 companies and facilities in non-manufacturing industries by 2010.

A decree by Uzbek President Islфm Karimov "On measures to further deepen the privatization process and step up the attraction of foreign investment in 2007-10", which was published today, stipulates "the privatization of 994 companies and facilities in non-manufacturing industries through auctions".

The document also envisages the sale of state-owned shareholdings, "right up to controlling ones", as well as 362 companies and facilities in the economy’s leading sectors - chemicals, electromechanics, construction, fuel and energy, and others. An approved privatization programme provides for the introduction of a "golden share" for companies in the cotton-processing and cooking-oil and fats industries that are to be privatized.

"A significant number of non-working and inefficient companies as well as half-built facilities" will be sold to investors at the "zero" purchase price.

The [official] explanation attached to the presidential decree notes that currently, the private sector accounts for over 75% of GDP. Its share in industry is over 80%, and in agriculture and trade about 100%. At the same time, Karimov believes that there is a need for "taking resolute steps to auction shares of companies in the economy’s leading sectors such as chemicals, electromechanics, agriculture, engineering and construction materials".

The document said Uzbekistan will sell 50% stake in UzDaewoo Auto, Uzbek car maker, and SamAuto, produce of small buses and lorries. The government will also plans to sell 74% shares of Kungrad Soda Plant.