EU-wide fuel oil and precious metals VAT fraud and money laundering network dismantled On 14 December 2016 judicial authorities and law enforcement from Spain dismantled a criminal organization whose modus operandi involved defrauding states on the VAT from oil and precious metals via a sophisticated carousel fraud scheme, and the money laundering of these gains through, various corporate structures, resulting in the loss of more than EUR 25 million in the hydrocarbon sector since 2015. The dismantled group responsible was based in Spain and Portugal and used a complex corporate architecture including shell companies, missing traders, and companies functioning as alternative payment platforms for the laundering of the ill-gotten gains. The investigation into the criminal activities started in Spain a year ago, targeting a criminal network operating in the sector of fuel oils. The criminal organization, by undercutting market prices with their untaxed oils, harmed commercial activities in the sector with such unfair competition that other operators not involved in the VAT fraud were compelled to get out of the business. The operation in Spain was led by the Central Investigative Court n. 5 and the Public Prosecutor’s Office of the National High Court in Madrid. During the action day the specialized Unit of the Spanish Guardia Civil against Organized Crime (UCO) under the supervision of the judicial authorities, operated on the whole national territory. Additionally several officers of the Guardia Civil travelled to Italy and Portugal to be present during the execution of the requested measures in those Member States. In total 20 persons were arrested in Spain and 25 searches were carried out simultaneously in Spain, Portugal and Italy. Two persons were arrested in Portugal and 13 bank accounts were frozen in Portugal and Slovenia. Funds already frozen in Slovenia amounted to almost EUR 91 000.The simultaneous actions were coordinated on the international level by Eurojust. Mr Jimenez-Villarejo, National Member for Spain at Eurojust and Chair of the Coordination Centre, said; “Organized VAT fraud represents a significant risk to the economy of the EU, and, as such, Eurojust will continue to do all it can to aid in the transnational coordination of the precautionary and investigative measures adopted by our national judicial authorities in order to defeat cross-border financial crime. With this Coordination Centre Eurojust supported our home authorities in overcoming the absence of an international consensus on VAT fraud, which has been identified as the most relevant bottleneck obstruction in these types of investigations.”

• Figures at a glance 20 arrests and 21 house searches in Spain 2 arrests in Portugal 4 house searches abroad (3 in Italy and 1 in Portugal) 16 bank accounts frozen (14 in Portugal and 2 in Slovenia)

Scotland’s First Minister Nicola Sturgeon unveiled plans for the devolved government in Edinburgh to set up a new board of trade, a new trade envoy scheme as well as a new Scottish enterprise agency. Likewise she announced the establishment of a new representative office in Berlin to promote trade links with Scotland. Germany being the EU’s largest economy. In addition Scotland is represented in Brussels, London and Dublin within Europe In fact, the international trading network for Scottish businesses will see a doubling of its European staffing capacity as confirmed by The Rt Hon Nicola Sturgeon. Scottish Development International (SDI) already operates over 40 offices in 20 countries across the world and recently expanded to Dublin. Albeit Scotland cannot expand representation on an independent basis, there are a number of devolved areas where Scotland can develop policies for trade, international development and diplomacy. For instance, the previous Scottish Executive launched a development project with Malawi in Africa, which has continued under the Scottish Government control. The Scottish Executive has also taken positions on a number of diplomatic issues including supporting the recognition of a Palestinian state and engaging in Syrian peace training fora at the United Nations. Scotland is also represented on the British and Irish Parliamentary Authority and the British and Irish councils. Scotland takes part at deliberations in Brussels surrounding European legislation yet remains excluded from direct participation in formal discussions at the European Union and United Nations. For further information: Scottish Development International: https://www.sdi.co.uk Scotland in Europe (Brussels): https://www.scotlandeuropa.com Scottish Executive Government: http://www.gov.scot/#slide/1

Statement by H.E.Mr Shavkat Mirziyoyev, new president of the Republic of Uzbekistan at the joint session of the Chambers of Oliy Majlis dedicated to a Solemn Ceremony of Assuming the Presidency. In his speech the President of the Republic of Uzbekistan outlined the priorities of domestic policy for the further continuation of the political, socio-economic and democratic reforms, as well as the main directions of foreign policy of the country. Because of the historical importance of this unique moment, Diplomat Magazine decided to published it in its full version. Assalomu Alaykum, dear compatriots! Dear Chairman of the Senate and the senators! Esteemed Speaker and the deputies! Ladies and gentlemen! First of all, addressing to you, my dears, and in your person to our entire nation, allow me time and again to express gratitude from the bottom of my heart to my all fellow countrymen, who have laid a high trust in me and elected to the post of the President of the Republic of Uzbekistan. I consider such a high trust shown to me by you, my dear compatriots, our people and the nation as a big honor and enormous responsibility. I do promise to devote my entire strength and energy, knowledge and experience, and my whole self to justify such a high trust, which cannot be compared to or weighed by anything. Today, as I assume the post of the President of the Republic of Uzbekistan, I comprehensively and deeply feel and realize as a head of state the very enormous responsibility on my shoulders and to what extent it is difficult and responsible to govern the big nation and the big country of 32 million people as continuing the work of the great state and political figure, our dear teacher Islam Karimov. As I assume the enormous responsibility of being a leader of Uzbekistan, in today’s situation of rapid globalization in the world, intensification of clashes of various interests in the international community and given the tense situation of the ongoing global economic and financial crisis, I lean, first of all, upon our time-honored and wise people, your trust, help and assistance, my dear compatriots. All of you are well aware during the election campaign I have held many meetings and conversations with voters and the representatives of various layers of population. The practical proposals and lawful appeals enunciated at those open dialogues and the concrete measures taken to implement them, to be frank, have also served for me as yet another big school of life. The final conclusions of such meetings and conversations will serve as a program guideline for me in my very important and responsible activity as the President of the country. Today, the time itself puts forward before all of us, primarily, before me as a President of Uzbekistan, the new and very responsible tasks. I consider it appropriate to briefly inform you today in our session about these major tasks. First, we will steadfastly, resolutely and consistently continue the broad-scale political, economic and social reforms started by our dear First President Islam Abdughanievich Karimov. This path is a solid foundation of building a free, democratic, humane state, establishing a civil society, raising the economic might of our Homeland and ensuring its further progress. As the President of the country, I consider it to be my major duty and task to strictly and unconditionally comply with the provisions of the Constitution of the Republic of Uzbekistan, ensure the rule of law, conduct the internal and foreign policy, which ensures the rights and freedoms of citizens. Second, I consider it my priority task to preserve as an apple of an eye and strengthen the interethnic and civil accord, the atmosphere of mutual respect, mercy and kindness reigning in our country. It will remain in the focus of our attention to further consolidate the mutual friendship and accord reigning in our society, ensure the equal rights for all citizens irrespective of their nationality, religion and faith. It absolutely won’t be allowed in Uzbekistan to disseminate the extremist and radical ideas, which would sow discord among them. The ever intensifying bloody conflicts and confrontations, the danger of terrorism and extremism in some regions of the world today require us to be always vigilant and alert. In this respect, such resolute tasks as providing for the security and inviolability of Uzbekistan’s borders, solidifying the defense capability of our country and not allowing any evil to the country’s doorsteps will always remain in the focus of our attention. Today, I deem it necessary to once again underscore the very idea, which is important from the principle point of view: Uzbekistan and its magnanimous people are consistently and solidly upholding the position of conducting a peaceful policy and implementing the principles of respectful approach to national and universal values. However, if it is necessary, we are capable of fiercely striking back against any attempts which threaten the sovereignty and independence of our country, the peaceful and tranquil life of our people. Therefore, I would like to address to our nation that no one should have any doubt about that. We have sufficient strength and power for that. Third, we consider it our primary task to further and broadly solidify the feeling of justice in our life – the very feeling, which has been revered and prioritized over anything by our people for centuries. In this respect, the words with a deep meaning of our great sakhibkiran (great leader, commander), forefather Amir Temur: “Let justice be our company in each and every deed and a guideline program” must turn for each of us into a life credo. This issue is first of all an immediate task of the heads and employees of state government and governance bodies, the entire judicial system, prosecutor’s office, interior and supervisory structures, as well as the authorized person of the Oliy Majlis for human rights. We should take the strict measures in our society in terms of struggling against corruption, various crimes and other cases of infringement of law, not allowing them to happen, as well as ensuring in practice the provisions of law that stipulate the inevitability of punishment of crime. In further deepening the democratic reforms and implementing the concept of developing a civil society, we believe that, as it was before, the citizens’ self-governance bodies – makhallas, as well as the non-state, non-profit organizations, free and impartial mass media will take an active place. In implementing the important principle, namely, “From a strong state to a strong civil society”, above all, we will lean upon the strength and capabilities of such social institutions. In this regard, we will pay a special attention to the realization of the provisions on consolidating the institution of public control as the most important foundation of democracy enshrined in the Article 32 of our country’s Constitution, the laws and other documents such as “On the transparent activity of the state government and governance bodies” and “On the social partnership”. In this regard, I would like to especially emphasize one idea: strengthening the attention and practical care for the persons of old age and the representatives of elder generation, increasing their pensions, bettering healthcare, social and consumer services for them will continue to remain as one of the most important tasks both for the President, our Government and all khokimiyats (governor’s and mayor’s offices). Our dear women, who are the priceless virtue of the Almighty Creator, dear mothers, kind spouses, cherished sisters, beloved daughters and grandchildren always care about us, boundlessly believe and render strength and assistance to us along the path of overcoming all barriers and achieving our objectives. For this purpose, we consider it our most important task to actively continue the state policy on protecting the health of mothers and children, giving jobs to women taking into account their living conditions, creating comprehensive opportunities on alleviating hardships of our sisters, raising the place and prestige of women in our socio-political life. Today, the pivotal appeal, namely “Our children must be stronger, more knowledgeable, smarter and certainly happier than us!” took a solid place in the minds and hearts of each of us, the parents and broad public. At present, the youth up to 30 years of age make up 32 percent of our country’s population, or 10 million people. The fact that our youth is turning into a decisive force of our today and tomorrow capable of rightfully assuming the responsibility for the future of our Homeland makes all of us proud and pleased. We must take to the logical end our broad-scale work being accomplished in this sphere, in particular, our national programs adopted on education and upbringing. We will continue the state policy on the youth with resolve and consistency. We will not only continue, but we will raise this policy to the higher level in line with the latest requirements as our top priority task. We will channel all available strength and capabilities of our state and society to raise our youth as happy and independently thinking people with high intellectual and spiritual potential, who stand not inferior in any sphere to their contemporaries in the world. Fourth, the implementation of the important principle and priority task as ensuring the steady growth of our economy will remain as a strategic objective for me as head of the state. Above all, we should accelerate the work started on further deepening the reforming and liberalization of economy, structural changing its branches and sectors. Such issues as modernizing the sectors and areas, increasing the level of their competitiveness and developing their export potential should constantly be in the focus of our attention. For this purpose, we need to more actively attract the foreign investments, advanced technologies and information-communication systems to all spheres. On this particular basis we should increase the gross domestic product of our country over two-fold by 2030. The issues of reforming the agriculture and ensuring the food security, no doubt, will remain as one of the most important tasks for us. Most importantly, a profound attention will be paid to consistently developing the complex of agricultural industry and its locomotive, i.e. the diversified farming entities, which are its driving force. The resolution of the set of issues related to reducing the participation of state in the economy to the strategically reasonable level, further developing and protecting private ownership will be defined as a top priority task for the government, relevant bodies of state governance and khokimiyats (governor’s and mayor’s offices) of all levels. Our another important task is to support and promote the small business and entrepreneurship, create the comfortable conditions for increasing the share of this sphere in consolidating the economic potential of our country, peace, stability and social accord in Uzbekistan. Therefore, from now on putting obstacles to the development of entrepreneurship will be assessed as putting obstacles to the policy of state and the policy of President. I deem it important and necessary to once again underscore this position which is very important from the principle point of view. Fifth, the efficiency of the economic reforms and social changes which we are accomplishing is measured, first of all, to what extent they are affecting the material state, well-being and enhancement of the quality of the living standards of population. For this purpose, we have elaborated the concrete measures to gradually increase the wages, pensions, allowances and stipends and they will certainly be implemented. Starting from 2017, the new system will be introduced on providing jobs for the population, first of all, the graduates of lyceums, vocational colleges and higher educational institutions. Expanding the production of consumer goods and fully meeting such needs of the population, in particular, fully providing our people with variety of food products at affordable prices are among the important tasks before us. With an aim of protecting a human health, which is considered to be the priceless wealth for us, the Government should concentrate its attention on implementation of the set of measures on radically improving the sphere of healthcare, above all, the activity of its branches of primary healthcare and rural medical stations, further development of the specialized centers rendering services based on emergency healthcare and high technologies. Sixth, I consider it the most important and priority task for me to take the concrete measures on constantly conversing with people, implementing their lawful demands, appeals and proposals. From now on, the system will be established, according to which, not only the government, but also the relevant ministries and departments, economic entities, including the governors and mayors will be reporting on the outcomes of their activity in this direction. Their activity shall be evaluated based on the aforementioned. You are well aware that we have announced 2017 in our country as “The Year of Dialogue with People and the Human Interests”. However, all of us well understand that the dialogue with people, talking to them, living with their problems and concerns and ensuring the human interests is not a one-year work for us. This issue will remain the top priority task in our forthcoming five-year activity. And all of us must deeply and well comprehend this truth. In the activity of all state bodies, we should switch to qualitatively absolutely new system on working with the population’s appeals. In particular, starting from 2017 the system will be introduced, according to which, the governors and mayors of all levels, the heads of prosecutor’s office and interior bodies will be reporting to the people. In evaluating the activity of state bodies and officials, such principles as ensuring lawfulness, to what extent the citizens’ rights and freedoms are protected, the quality and openness of rendering the public services for them must be most important criterion for us. In this respect, once again I want to emphasize one notion. It is not the people who should serve the government bodies, but it is the government bodies who should serve our people. In this regard, we should raise the efficiency of the system currently in force related to critically analyzing the implementation of the most important social-economic tasks, the purposeful programs on branches and sectors, priority investment projects and other urgent objectives. Along with this, the practice shall be newly introduced, according to which, the heads of the complexes and economic branches of the Cabinet of Ministers, as well as governors and mayors will have personal reporting hearing before the President. Generally speaking, from now on, the results of the activity of the heads of ministries and departments and economic entities, as well as governors and mayors will be evaluated not based on the blank economic indicators, but based on how they engage with people and organize their work, to what extent the citizens’ problems are resolved. Afterwards, a relevant conclusion will be made. If the mark is positive and if the people are pleased, then we thank them. And if vice versa, we bid farewell to such heads!!! The fact of implementation of the broad-scale tasks before us, first of all, demands from me as a head of the state, three branches of state power, as well as all heads and officials a strict discipline. Today, the life itself requires to properly organizing our work, ensuring its efficiency and qualitatively upgrading the activity of the entire system of governance in line with the latest requirements. Certainly, I deeply comprehend that all changes that we are planning are quiet multi-faceted and very important. However, no matter what obstacles and hardships, the tense and urgent problems we are going to face with, we don’t have a right to adopt resolutions in rush and in a chaotic way, and we don’t have a right to allow for poorly thought-out actions. In this respect, in order to achieve the near and mid-term objectives, we need to act with a resolve. With this purpose, in the coming days the elaboration of the Strategy of Action on further development of Uzbekistan in 2017-2021 will be completed. This strategy will encompass the five top priority directions related to state building, improvement of the judicial system, liberalization of the economy, acceleration of development of social sphere and implementation of active foreign policy. It is well-known that in accordance with Article 98 of our Constitution, the responsibility for successful implementation of the priority tasks of the economic and social reforms was laid on the Cabinet of Ministers, each and every member of the Government and the heads of the state and economic governance bodies. In the focus of such system there should be perspective important tasks related to comprehensive development of not only the basic sectors of the economy, but also and first of all, of the regions, as well as ensuring the pivotal interests of our country’s all citizens and raising their incomes. Besides, we are also facing the tasks in terms of realization of the set of measures related to radical improvement of the activity of such central governance bodies as the Ministry of Economy, Ministry of Finance, Ministry of Foreign Economic Relations, Investments and Trade, the State Committee for Privatization, Demonopolization and Development of Competition, customs system and other departments. Increasing the efficiency of the activity of the banking system and other bodies of the market infrastructure also remains to be the urgent task. Unfortunately, at present their activity significantly lags behind the latest requirements of life and economic reforms. Therefore, the state banks shall be instructed with the following tasks. Through organizing dialogue with each and every family, we need to create comfortable conditions for the citizens to engage in entrepreneurship. With this purpose, the commercial banks and their branches at the local level, proceeding from their own capabilities, will be laid with the task to render a financial assistance and support to business persons. In a word, from now on the banks should teach our people to engage in business, entrepreneurship and promote such initiatives. The main goal of this policy is to create the broad conditions and opportunities for each and every citizen to realize his strength and capacity, his talent and potential. According to Article 78 of our country’s Main Law, in modernizing the country, ensuring reforming and democratizing our society, the important place and responsibility was laid on the Legislative Chamber and the Senate of Oliy Majlis. For this purpose the following three tasks should be implemented. The first task, it must be ensured that the instructions defined at the solemn meeting on December 7, 2016 must be concretely realized. You are well aware that at the festive ceremony held on the occasion of the anniversary of our Constitution, I have addressed to the deputies and senators with one proposal. My proposal was about that with an aim to create the influential mechanisms of the parliamentary and public control, it was necessary to introduce the procedure according to which they should learn the true state of affairs in the cities and districts and introduce the report of the relevant heads to the sessions of the councils of people’s deputies. For this purpose, the deputies and senators of Oliy Majlis, elected from each region, on a monthly basis need to travel to a district for 10-12 days. They should thoroughly learn, analyze and draw the relevant conclusions about the activity of the local government bodies, prosecutor’s office and interior department. Based on this, our distinguished Speaker and the Chairman of Senate must lead the discussions of these issues with local kengashes (councils). If such a system is introduced, certainly, tomorrow it will give its positive efficiency. The second task – it is necessary to undertake monitoring the implementation in practice of the Law “On the parliamentary supervision” in all spheres, including learning and introducing the advanced experience of foreign countries in this respect. Thus, with an aim to create the system of effective parliamentary supervision over the activity of the Ministry of Foreign Affairs and other state departments in this direction, the post of the First Deputy Chairman of Senate was instituted. From now on the activity of the relevant Senate committee will be radically improved. I want to especially underscore the significance and importance of the third task, i.e. we should take the concrete influence mechanisms in terms of each situation related to non-implementation of the provisions of law. We need to continue to better the activity of the bodies of state power at the local level, the governors’ and mayors’ offices of all levels and the councils of the people’s deputies. Therefore, it would be expedient, to introduce the practice of organizing the work of exemplary councils of people’s deputies turn by turn in each region by the Senate of Oliy Majlis. Their main goal and task is to have a constant dialogue with all layers of the population and not only learn about the demands and the needs of citizens but to tackle them as well. At present, it can be observed that in many instances in state and governance bodies the utilization of cadre potential, distribution of their duties and authorities is not reasonably and efficiently arranged. The worst is that this situation hinders our work. If you look at one agency, there are hundreds of employees who work there just nominally. If you look at another one, there is a lot of work and tasks, but not enough people and there is a lack of staff. The time has come to put an end to such incorrect distribution of labor. Each state employee must clearly know his duties and obligations, simply speaking, to be able to cope with his responsibilities. This is the requirement of contemporary time. If we do not fulfill this work ourselves in order to accomplish our tasks and objectives, no one will come from beyond and do it for us. From this point of view, I believe the time has come to develop a targeted program, which would encompass the important issues of forming the practical cadre reserve, their training and retraining. The main task is to form the new corps of managerial staff and officials with high professional skills and modern thinking, be capable of making the well thought-out and comprehensively correct decisions, and achieving the set goals. In this a special attention must be paid to training the skilled cadres for the regional governance bodies, above all, for the governors’ and mayor’s offices of districts and cities. In this regard, it will be correct to say that the Academy of State Administration at the President is completely not fulfilling the task entrusted upon it. Therefore, we are forced to cardinally change the working method of this Academy and reconsider its managerial staff. You are well aware that the approaches and position of our state in the sphere of foreign policy have been thoroughly outlined in the address dedicated to the Constitution Day. In addition to those ideas, I would like to say that we consider deep studying and practical implementation of the best practices in the world as one of the important conditions of successful fulfillment of the broad-scale tasks before us. We will organize the close cooperation with foreign states, above all, the neighboring countries, as well as the international institutions in line with today’s requirements and based on mutual trust and consideration of mutual interests. The relations of cooperation with businessmen, who have demonstrated themselves as reliable partners, will certainly be continued in Uzbekistan. In this regard, the newly established Senate committee is required to consistently fulfill the tasks entrusted upon it.

UN Security Council unanimously adopts final extension of Judges’ mandates The Tribunal welcomes the resolution of the United Nations Security Council extending the terms of office of ICTY Judges and the resolution’s recognition of the importance of staff retention in the Tribunal’s final year. The UN Security Council unanimously adopted, on 19 December, resolution 2329 (2016) extending the final terms of office of all ICTY Judges until 30 November 2017 or until completion of their cases, if sooner. Additionally, the resolution extends the term of office of Judge Carmel Agius as President of the Tribunal until 31 December 2017 or until one month after the completion of the remaining ICTY cases. In the same resolution, the Council noted the concern expressed by President Agius in relation to the challenge of staff attrition, and reaffirmed its position that staff retention is essential for the most expeditious completion of the ICTY’s work. Furthermore the resolution underlines that States should cooperate fully with the ICTY. The ICTY is entering into the final year of its mandate and proceedings are currently ongoing in two cases, one is the trial of Ratko Mladić and the other is the appeal case of Prlić et. al, involving 6 accused. Judgements in both cases are expected to be rendered in November 2017. Since its establishment, the Tribunal has indicted 161 persons for serious violations of humanitarian law committed on the territory of the former Yugoslavia since 1991. Proceedings against 154 accused individuals have been concluded.