Business news

6 Sep 2023

Belarus may set up assembly plant in Russia’s Orenburg Oblast

An archive photo

MOSCOW, 6 September (BelTA) – Plans are in place to set up an assembly plant for Belarusian machinery in Russia’s Orenburg Oblast, Belarusian Ambassador to Russia Dmitry Krutoi told the media following the talks Orenburg Oblast Governor Denis Pasler in Orenburg on 6 September, BelTA has learned.

Dmitry Krutoi said that some 45% of the Belarusian economy had been affected by sanctions. “Therefore, the reorientation of export flows is the key issue for us in terms of economic development,” he emphasized. “Last year the government initially set the task to reorient about $10.5 billion worth of Western exports to other regions, primarily Russia. Last year we reoriented $6.5 billion to Russia - this is a big amount, and in fact we did it within nine months.”

According to Dmitry Krutoi, in addition to regular trade, the country is reorienting flows within the framework of the import substitution program for industrial, agricultural and woodworking products. “To make this trend sustainable, there are plant to set up joint productions,” he said. “This is the focus of two major programs related to machine tool building and micro and radio electronics. The programs have been signed at the government level. I can also mention a number of projects that will be implemented within special economic zones in Russian regions. The work to supply component parts to the assembly lines of major Russian enterprises envisages relevant programs signed with KAMAZ, AvtoVAZ, Rostselmash, GAZ Group and others - over ten major companies. The third topic is procurement by Russian state corporations - Rosatom, Gazprom, Rosneft, Novatek and others, and there are also some large programs being drawn up with them. I will also add assembly plants of our famous brands - MTZ, Gomselmash, BelAZ - on the territory of Russia.”

“The governor and I have discussed (and this would be a pearl of our relations with Orenburg Oblast) the possibility of setting up an assembly production of either tractor equipment with MTZ or truck utility equipment with MAZ in the Russian region,” the ambassador said. “In recent years, 26 regions of Russia have already established assembly plants based on MAZ chassis, including the production of cranes and road vehicles. We have agreed with the governor to study the possibilities of production sites in Orenburg Oblast in the coming months. This is very important in view of the region's plans to further upgrade its machinery. If the Belarusians would like to participate in such projects, they should have their joint vehicle here in order to be subject to the subsidy and support programs that the region provides.”

Dmitry Krutoi and Denis Pasler discussed the supply of agricultural machinery (the share of MTZ in the local market is 56%, the presence of Gomselmash in the market is steadily growing), financial instruments to support exports, the quality of Belarusian products and services, and import substitution in breeding and seed production. The parties also paid attention to the prospects of expanding supplies of BelAZ vehicles for the mining industry of the Russian region.

Dmitry Krutoi invited Denis Pasler to pay a visit to Belarus.



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