2011.06.06

Investment website investar.by presents to your attention a weekly overview of investment events in Belarus (30.05.2011 - 05.06.2011)

Monday 30 May

When asked about statement by Finance Minister of Russia Alexei Kudrin that Belarus’ refusal to carry out privatization of state property puts in doubt the allocation of loan from the EurAsEC Anticrisis Fund, Belarus’ Finance Minister Andrei Kharkovets said the following. “The President of the Republic of Belarus once again reminded the government about his requirements to the privatization process at the government session held on 27 May to discuss the current situation on the consumer market and the foreign currency market. The privatization process should be open, transparent and maximally profitable for Belarus. It means that Belarus’ most liquid assets will not be sold for a song despite the today’s hardships. But it does not mean that we refuse to carry out privatization as such. When we held talks about EurAsEC loan, the point was not about privatization of the specified companies as one of the terms to obtain the loan. We referred to the privatization as one of the tools to increase international reserve assets. We have interesting investment proposals on some project. We are working on them. But we are guided by the principles mentioned by the President on 27 May.”

Monday

Foreign citizens can now pay for fuel with foreign currency at refueling stations of the Belarusian petrochemical concern Belneftekhim. This option is available only at the refueling stations located near the border and near major motorways of the country, Belneftekhim’s Press Secretary Marina Kostyuchenko told Media. She explained that the concern had grabbed the opportunity offered by the NBRB’s decision to expand the use of foreign currencies in payments by individuals inside the country. The National Bank of the Republic of Belarus sent the relevant decision to Belarusian banks on 25 May. According to the document, in order to attract more foreign currency from individuals (including non-residents) into the Belarusian economy the NBRB and the government believe that it is feasible to expand the conditions for issuing permits to accept foreign currency from foreign citizens in Belarus. Among them is the sale of fuel, oil products, and liquefied natural gas at refueling stations.

Tuesday 31 May

Lepel Dairy Factory together with a Russian investor will set up a joint enterprise to produce Cheddar cheese, journalists learned from director of the company Alexander Mikhailovsky. The investment project with the total cost of about €1 million to launch the production of this semi-hard cheese with the capacity of 10 tonnes of cheese per day will be implemented in Tolochin. According to the preliminary data, each partner will hold 50% of the authorized fund. Necessary documents will be completed in August, in autumn the joint company will receive necessary equipment. The new company will be put into operation in 2012.

Tuesday

As many as 235 projects to set up new enterprises will be accomplished in Belarus in 2011-2015 as part of the new state innovation development program. These enterprises are of primary importance for the innovation-based development of the country. There are plans to implement over 900 innovation projects to create new enterprises and modernize existing ones using innovative technologies and remodeling manufacturing facilities for the sake of making new products. These projects will be accomplished as part of the programs meant to develop kinds of economic activities, programs for developing the oblasts and the city of Minsk. The funding for the new state innovation development program is set at Br57,422.97 billion. Bank loans will be used along with proprietary investments of organizations, foreign investments and appropriations from the central state budget and local budgets. The implementation of the state innovation development program is supposed to secure the targets set by the 2011-2015 social and economic development program. The share of innovative products in the output of industrial enterprises is supposed to reach 20-21%. The share of innovation-active organizations in the total number of industrial producers should be at least 40%. The share of internal expenses on research and development should reach 2.5-2.9% of the GDP. The 2011-2015 state innovation development program is supposed to form new technological infrastructure to enable a high competitive ability of the Belarusian economy on foreign markets.

Wednesday 01 June

Government and the National Bank of the Republic of Belarus sent a request to the International Monetary Fund (IMF) to provide the country with a stabilization loan, according to the press release of the Belarusian government. Consultations regarding the relevant action plan of the government and the National Bank of Belarus will be held as part of the work of the IMF mission in Belarus that starts on 1 June 2011. The mission will assess the current economic situation in the country, discuss measures taken by the government and the National bank to stabilize the situation on the domestic currency market and define the possibility to assist the macroeconomic policy pursued by the country. The IMF mission will complete its work in Belarus on 14 June 2011.

Wednesday

A Belarusian-Chinese industrial park will be set up near Minsk, Prime Minister of Belarus Mikhail Myasnikovich told the press on 1 June. “We have plans for a grand Skolkovo-like project. It will be a Belarusian-Chinese industrial park. We have completed another round of negotiations. A 5,500 hectare area near the national airport Minsk has been chosen. Soon we will approach the head of state with proposals regarding the nature of the intergovernmental agreement and the mechanism to implement the project,” said Mikhail Myasnikovich. The project is supposed to achieve massive results within 5-7 years through the export of science-intensive and competitive products. In addition, there are plans to accomplish several import-substitution projects in the park.

Thursday 02 June

Belarusian Premier Mikhail Myasnikovich met with Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to Belarus Lu Guicheng on 2 June. The sides discussed the prospects of further trade, economic, sci-tech and investment cooperation between Belarus and China, considered the implementation of joint projects. The Chinese Ambassador presented the Belarusian head of government with the PRC Supreme Government Award – the Order of Friendship of the People’s Republic of China. The award has been presented for Mikhail Myasnikovich’s contribution to the development of the sci-tech cooperation between Belarus and China and hailed by the Chinese Ministry of Foreign Affairs, the Academy of Sciences of the People’s Republic of China and the State Administration on PRC foreign specialists.

Thursday

Companies from the Czech Republic and Switzerland are interested in creating pharmaceutical facilities in Belarus. This issue and also the new areas of cooperation in medicine and pharmacy in Belarus were high on the agenda of a meeting between the Chairman of the State Committee on Science and Technology Igor Voitov and representatives of Actelion Pharmaceuticals Ltd (Switzerland) and PrimeCell a.s. (Czech Republic). The sides reviewed the issues regarding the launching of production of new drugs and substances for domestic medicine, and a possibility of opening a pilot center or a laboratory in cell engineering. “We are interested in creating a facility to start producing unique drugs. Currently, domestically-produced drugs account for 25% of the local market. However, during the next four years we plan to increase this figure to 50%,” said Igor Voitov. Development of new pharmaceutical facilities is envisaged in the action plan to the state innovation development program of the Republic of Belarus for 2011-2015. “Therefore, investors will be given maximum assistance in addressing these and other issues,” stressed the head of the committee. In turn, Director for Central and Eastern Europe, Middle East and Africa at Actelion Pharmaceuticals Ltd Richard Krahulec said that pharmaceutical companies of Switzerland are interested in the Belarusian market. “Now we are trying to find ways to establish mutually beneficial cooperation and to start producing medicines. For the Belarusian side this means a decrease in imports of pharmaceutical products. For our company, Belarus is a promising new market taking into account the Customs Union,” he said.

Friday 03 June

Belarus is set to raise Br37.228 trillion of foreign investments to implement the 2011-2015 state innovative development program. The foreign investments will account for over 60% of the total financing of the program. A total of Br57.423 trillion is needed to set up new companies and enterprises essential for the innovative development of Belarus. The own funds of enterprises will make over Br8.7 trillion. The same amount will be raised via bank loans and borrowed resources of organizations. More than Br2.5 trillion will be provided by the national budget, including innovation funds. The bulk of the funds will be required for the projects of the Energy Ministry – almost Br24.2 trillion, including Br23.7 trillion of foreign investments. The Industry Ministry will need over Br6.4 trillion, including Br3.1 trillion of foreign investments. The Ministry of Construction and Architecture is to receive Br4.7 trillion, including Br1.7 trillion of foreign investments, the Transport Ministry will need Br3 trillion, including Br925.4 billion of foreign funds. A large amount of resources will be channeled into the Bellesbumprom concern (Br4.6 trillion, including Br2 trillion of foreign investments) and the Belneftekhim concern (Br3.2 trillion and Br2.3 trillion respectively).

Yours Sincerely,
P.T. & Co
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