Former Foreign Minister's son acquires major oil assets in Uzbekistan

UNG Petro's network of gas stations and the Chinaz oil refinery were probably sold in November 2023 for 453 billion UZS (or 519 billion UZS). This information is mentioned in Uzbekneftegaz's report based on international standards.

"According to the financial report, the net balance value of the two assets, totaling 547 billion UZS, was 259 billion UZS at the time of alienation. Uzbekneftegaz recorded 194 billion UZS in non-operational income from this scheme.

Thus, the UNG Petro gas station network and the Chinaz oil refinery were sold for 453 billion UZS (assuming VAT was not paid, and it is unknown whether the payment was made in full). According to the report's explanation, the non-operational income recognized from this scheme was 260 billion UZS," wrote economist Otabek Bakirov.

He added that in its separate financial report, Uzbekneftegaz noted that 152.18 billion UZS in non-operational income was derived from the sale of these assets.

"It's difficult to say whether this recognized income pertains to the total amount of the transaction or just a part of it. There is also a possibility that the UNG Petro gas station network and the Chinaz oil refinery were sold under installment payment conditions (although this is a very important fact, the auditor remained silent on this matter). This is not clarified in the consolidated report either.

The exact amount of the transaction can only be speculated," concluded Otabek Bakirov.

It is worth noting that these assets were transferred to the ownership of Petroleum Technology Group LLC. This LLC is owned by Doniyor Komilov, the son of former Foreign Minister Abdulaziz Komilov.

There has been no official comment on this privatization process so far.

Earlier, the investment program approved by a Cabinet of Ministers decision included the sale of the Chinaz oil refinery, gas stations, and equipment in oil fields belonging to Uzbekneftegaz, with these three assets valued at a total of $70 million.