Competition Committee Uncovers Billion-Uzs Shadow Schemes Involving Coal, Flour, and Cement
Uzbekistan
The Competition and Consumer Protection Committee of Uzbekistan has executed a massive crackdown on the illicit distribution of high-liquidity commodities. The anti-monopoly watchdog targeted major market entities, including the state-backed mining giant JSC Uzbekugol, alongside regional flour, cement, and oil-fat production plants. Bypassing statutory commodity exchange auctions via direct contracts and covert price manipulation, these enterprises offloaded commodities valued at over 8 billion UZS. The regulatory body responded firmly to these antitrust breaches, issuing substantial fines, launching corporate cases, and mandating the forced recalculation and seizure of all unjust enrichments.
The Competition Committee has initiated multiple statutory cases against several prominent Uzbek enterprises following severe compliance breaches in marketing high-liquidity goods. The gross value of materials traded off-exchange crossed 8 billion UZS. Over half of this volume—amounting to 4.3 billion UZS—stems from JSC Uzbekugol. In April of this year, the coal titan willfully disrupted supply schedules and manipulated market volumes, offloading coal at artificially inflated price ceilings through direct contracting. The agency's special commission issued a strict enforcement mandate to the enterprise to eliminate the infractions.
Systemic violations were also uncovered within the food supply sector. In Tashkent, Shavkat Business Agro, Export Gold Agro, and Flour Asia processed grain secured on the open exchange but sold the finished flour directly, bypassing required secondary auctions. In the Surkhandarya region, JSC Surxondaryo don mahsulotlari unilaterally exported 375 tons of flour worth 1.2 billion UZS via direct contracts while withholding an additional 364 tons of output from the exchange. The firm was penalized with financial fines. Similar antitrust cases were opened against Samarkand-based outfits Humo Agro Platinum and Zomin Ishonch for illicit flour trade.
The construction and agricultural domains similarly witnessed a boycott of the commodity trading floor. Namangan’s Pop Sement plant circumvented the exchange to sell 4,300 tons of cement valued at 2.4 billion UZS, violating the decree mandating that at least 50% of factory output pass through open auctions. Financial fines were levied on the facility. Additionally, the Kasan Oil Mill in Kashkadarya was implicated in direct sales of cottonseed oil, meal, and husks. The plant must now execute a full refund of 91 million UZS in unearned revenue back to the state treasury.
Systemic violations were also uncovered within the food supply sector. In Tashkent, Shavkat Business Agro, Export Gold Agro, and Flour Asia processed grain secured on the open exchange but sold the finished flour directly, bypassing required secondary auctions. In the Surkhandarya region, JSC Surxondaryo don mahsulotlari unilaterally exported 375 tons of flour worth 1.2 billion UZS via direct contracts while withholding an additional 364 tons of output from the exchange. The firm was penalized with financial fines. Similar antitrust cases were opened against Samarkand-based outfits Humo Agro Platinum and Zomin Ishonch for illicit flour trade.
The construction and agricultural domains similarly witnessed a boycott of the commodity trading floor. Namangan’s Pop Sement plant circumvented the exchange to sell 4,300 tons of cement valued at 2.4 billion UZS, violating the decree mandating that at least 50% of factory output pass through open auctions. Financial fines were levied on the facility. Additionally, the Kasan Oil Mill in Kashkadarya was implicated in direct sales of cottonseed oil, meal, and husks. The plant must now execute a full refund of 91 million UZS in unearned revenue back to the state treasury.
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