BAT invests $300 mln in Uzbekistan's tobacco industry since 1992

Interfax November 19 British American Tobacco Company (BAT), the owner of a controlling stake in the British-Uzbek joint venture BAT Uzbekistan, has invested $300 million in Uzbekistan's tobacco industry since 1994, a source in the joint venture told Interfax. BAT has fulfilled its investment obligations laid out in a contract made with the Uzbek government in 1994, the source said. The major breaks, which Uzbekistan extended BAT as a foreign investor, will end on November 22, 2004. BAT was freed from paying customs duties for raw material and material imports during this period. BAT Uzbekistan also had exclusive rights to produce tobacco products. BAT Uzbekistan could face competition in Uzbekistan in the next few years, the source said. "We have information that several small companies are showing interest in making tobacco products in Uzbekistan," the source said. BAT Uzbekistan will hold an extraordinary shareholders meeting on November 27 to discuss ending the investment program, the source said. British American Tobacco is one of the largest foreign investors in Uzbekistan. BAT Uzbekistan produced 2.886 billion cigarettes in January-June 2004 against 3.161 billion in the same period in 2003. Sales were 2.356 billion cigarettes in the first half of 2004, against 2.538 billion cigarettes in the first half of 2003. Exports increased by 23,000 to 143,000 cigarettes in the half.