The Competition Committee of Uzbekistan has initiated legal proceedings against Navoiyazot, a state-owned enterprise, for violating antimonopoly legislation, according to the department's press service reports on June 11.
Navoiyazot is accused of engaging in price manipulation when selling highly liquid and monopolistic products on the stock exchange.
The investigation revealed that the company deliberately underestimated the volume of goods available for sale, resulting in a price increase of 10-50%. This practice was identified in the sale of urea, ammonium sulfate, and superphosphate, all of which are essential types of mineral fertilizers where Navoiyazot holds a dominant market position.
The Competition Committee's findings indicate that Navoiyazot did not offer the entire production volume of these fertilizers for sale. Additionally, the company was found to have manipulated prices for polyvinyl chloride and formaldehyde, which are also required to be sold exclusively through the exchange.
During the period from 2021 to 2023, Navoiyazot auctioned only 57.2 thousand tons of the mentioned products. The artificially inflated prices resulted in an unjustified profit of UZS 20.5 bn ($1.6 mn) for the enterprise.
As a result of these findings, the Committee has opened a case against Navoiyazot. An official order has been issued to the company, mandating the elimination of these violations and ensuring they do not recur in the future.
Navoiyazot is a rapidly evolving, diversified industrial production complex. As an international partner, it is executing a program to produce mineral fertilizers, chemical reagents, and various small-scale chemical products. As a key segment of Uzkimyosanoat, Navoiyazot is responsible for over 30% of Uzbekistan's chemical production. The company meets the demands of nearly all sectors, including industry, transport, agriculture, the fuel and energy complex, as well as services, trade, science, culture, and education.
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