Problems due to currency
The Ministry of foreign economic relations, investments and trade of Uzbekistan has asked Russia for assistance in the procurement of medicines and medical products, said in a letter to the Uzbek Agency of 10 November 2016. A copy of the document is available . Attached to it a list of 167 names of drugs and medical devices 22.
In a letter to the Uzbek Ministry asked the Russian trade mission to pass this list of Russian pharmaceutical companies. According to the plan of Tashkent, the manufacturers have to respond to the request and to submit their proposals for the supply of medicines with prices.
Uzbekistan was forced to go with the letter because the country has difficulties with the procurement of essential medical products from-for problems with currency conversion, explains the General Director of the Association of Russian pharmaceutical manufacturers (ARPM) Viktor Dmitriev. To convert Uzbekistan sum in another currency is almost impossible, the situation worsened after the sharp fluctuations in 2014-2015.
In a letter to the Uzbek authorities are most needed for health care products and medicines, said the development Director of the analytical company RNC Pharma Nikolay Bespalov. We are talking about antibiotics, insulin, low-cost anti-cancer drugs, syringes, gloves, etc.
Official Tashkent has always had difficulty purchasing medications due to currency restrictions, says Kazantsev of MGIMO. But now the country’s special economic situation due to the reduction of income from migrant workers and a General decline in prices for raw materials, therefore the need for drugs grew, the expert believes.
Russia to the rescue
Russian manufacturers are able to provide about 90% of list of Uzbek letters, and within five years they may qualify for 30-40% of the market, I’m sure Bespalov.
According to him, in the long term, the domestic pharmaceutical businesses that responded to the request of Uzbekistan, can significantly strengthen its position in the country. Today, Russian producers occupy only 3.5% of the Uzbek pharmaceutical market, the total of which the first three quarters of 2016 is 90 billion rubles, calculated in the RNC Pharma. 45% more than last year. This is due to exchange rate fluctuations.
But Russian companies are not interested in the Uzbek market, said Dmitriev: “by working in Uzbekistan, you always stand before a choice — either to convert local currency at too low a rate, or to receive a deferred payment. In the first and in the second case the business incurs losses”. Foreign companies present in the market of Uzbekistan, but because of the problems with hard currency, put products not to the extent as in other CIS markets, said the Executive Director of the Association of international pharmaceutical manufacturers (AIPM) Vladimir Shipkov.
In Uzbekistan are now working, according to RNC Pharma, Russian companies such as BIOCAD, STADA CIS (part of international concern STADA Arzneimittel AG), “Noticefrom” and Moscow endocrine plant. Director of market development BIOCAD Dmitry Mordvintsev said that the company has not yet received the letter from the Uzbek Ministry.
STADA CIS is already acquainted with the request of Tashkent, said Deputy Director General of the company Ivan Glushkov: the company sent her a list of products in the Russian trade representation, but this does not mean that the company will negotiate with the government of Uzbekistan at the price and conditions.
The Ministry of health and the Ministry responsible for the development of pharmaceutical industry, prompts Uzbekistan. The Ministry of foreign economic relations and the Ministry of health of Uzbekistan has not responded to the request .