Business news

9 Nov 2023

Belarus replaces German, Italian, French manufacturers in Russia’s Tatarstan Republic

An archive photo

MOSCOW, 9 November (BelTA) – After negotiations with Head of the Republic of Tatarstan Rustam Minnikhanov Ambassador Extraordinary and Plenipotentiary of Belarus to Russia Dmitry Krutoi talked to reporters about new manufacturing cooperation projects and about how Belarus replaces German, Italian, and French manufacturers, BelTA has learned.

Dmitry Krutoi said: “After the head of Tatarstan visited Minsk and large-scale delegations were exchanged, an agreement was reached at the level of the president of our country that we have to double the current trade turnover of $1.1 billion. Potential to do that in the next few years is available. This is why it is necessary to more actively explore new avenues. Today Rustam Minnikhanov and I discussed the new projects that will be put on our agenda literally starting next year.”

The ambassador described the construction of a plant to make polyester threads as the flagship project. In his words, raw materials will be supplied by the holding company Tatneft while manufacturing will be organized at premises of the Belarusian enterprise Mogilevkhimvolokno. According to the existing business plan, the project will cost $250 million while annual earnings are expected to exceed $300 million. The new enterprise will employ about 1,000 people. “It will be one of the key Belarusian-Russian manufacturing cooperation projects,” Dmitry Krutoi said.

“In line with last year’s agreements Tatneft has also started actively using metal cord and wire made by the Belarusian steel mill BMZ. Deliveries to Italy were made in the past. After sanctions were introduced and shipments were rerouted, Tatarstan helped us out. After examining the quality of these products Tatarstan’s tire manufacturers Nizhnekamskshina and a truck tire plant started using BMZ products. Other enterprises of the holding company Tatneft started using Belarusian seamless pipes for oil and gas industry manufacturing facilities once they saw the success of the work. It is one of the examples of joint manufacturing cooperation,” the diplomat said.

A manufacturing cooperation program for the Russian automaker KamAZ was also discussed during the meeting. More than 10 Belarusian enterprises already supply parts to KamAZ’s assembly lines. “Next year we intend to sign a three-year program of deliveries of parts and components such as steering control, digital dashboards, and digital locks. In other words, we are replacing Bosch, Italians, and French manufacturers on KamAZ’s assembly lines. This year’s program is worth RUB2.5 billion. We intend to double the figure next year,” Dmitry Krutoi said.

The new projects include an agreement with Gazprom on shipping MTZ tractors with engines powered by natural gas for the sake of final assembly in Tatarstan. “This is another pilot project for Russia as far as gas-powered tractors are concerned. If it is a success, we will replicate it in other regions,” the ambassador said.

Participation of Belarusian specialists in road construction was also discussed. “Belarusian construction workers are working in an important section of the Alekseyevsk-Almetyevsk motorway. Over 10km of a modern motorway including the construction of bridges and roadbed. Essentially, the project worth RUB7 billion has been handed over to us. We will finish it next year. Rustam Minnikhanov personally oversees the quality of the work and said that Belarusians are doing fine. He instructed Tatarstan’s transport minister to select new motorway sections for us,” Dmitry Krutoi added.