Business news

2 Nov 2022

Belarusian Industry Ministry recounts import-substitution projects with Russia

An archive photo

MINSK, 2 November (BelTA) – As part of the import substitution effort, Belarusian enterprises will produce a wide range of goods for Russia - from components to large vehicles, Yegor Chernyavsky, Head of the Central Office for Foreign Economic Relations of the Belarusian Industry Ministry,said in a new episode of the project “After the Fact: Lukashenko's Decisions” on BelTA’s YouTube channel.

Belarus and Russia are now engaged in joint import-substituting projects. Most of them will be implemented by enterprises of the Industry Ministry.

"This is not surprising, because the industrial sector of Belarus is traditionally one of major contributors to trade with the Russian Federation," Yegor Chernyavsky said.

In general Belarusian industrial enterprises post export growth at 10%. meanwhile supplies to Russia are growing much faster, at a rate at 40%, the minister noted.

Belarus has offered Russia more than a dozen import-substituting projects. Russia will earmark $1.5 billion in loans to Belarus for these projects. "It is not so much the amount of the loan that is important but the support in the current conditions. The sanctions has restricted access to finance. I would talk not so much about the amount of the loan but about the importance and timeliness, about the cost of these credit resources. The Russian Federation offers them on fairly attractive terms. Interest rates are very good, and we see that the products that we will manufacture will be competitive," Yegor Chernyavsky emphasized.

Belarus has the necessary competencies. But in order to fully meet the demand of the Russian market after Western companies have withdrawn from the Russian market Belarus needs to significantly expand its production capacities or modernize them.

For example, BelAZ works hard these days. Previously, BelAZ was not the only supplier of quarry vehicles to Russia. There were also assembly facilities of American and Japanese manufacturers there. Moreover, Japan intended to open another assembly site in Russia. “They have left the Russian market. This is why today BelAZ needs to step up,” Yegor Chernyavsky explained.

Of course, BelAZ will increase the output of quarry vehicles. This necessitates additional resources. The same situation is in the production of road construction and utilities vehicles.

The Belarusian companies have submitted their business plans for verification. Two projects have already passed all approvals. One of them is the organization of ring rolling production in Orsha. It will be launched at PAK plant, which is part of BelAZ-Holding. The second project is Amkodor's production of forestry machinery. “The market was quite saturated. Today Amkodor is the only such manufacturer in the Union State,” the official said.

“The projects are diverse. These are the production of basic components like gears and bearings, casting, quarry and logging vehicles and also highly intellectual systems such as ABS and EBS by BelOMO,” said Yegor Chernyavsky.