Business news

MINSK, 27 April (BelTA) – The Belarusian government and the European Bank for Reconstruction and Development (EBRD) signed a memorandum of understanding on pre-privatization support of OAO Krinitsa for 2018-2020. The document was signed by Chairman of Belgospishcheprom Concern Alexander Zabello and Head of the European Bank for Reconstruction and Development Mission in Belarus Alexander Pivovarsky, BelTA has learned.

According to the document, the EBRD will attract international experts to carry out the measures to increase the company’s profit by optimizing costs and improving marketing. For example, support will be provided with the restructuring of OAO Krinitsa to increase its competitiveness and investment attractiveness.

Plans are in place to introduce sound and transparent governance mechanisms, international quality standards and certification procedures used in the brewery industry. In the future, the EBRD will consider supporting OAO Krinitsa in the form of equity participation.

Alexander Pivovarsky explained that the bank has already provided technical assistance to identify the key areas in which to work. “Consultants will be engaged at the current stage. Possible financial projects will be discussed at the next stage. A team of bankers will be also engaged more closely in order to map out the financial opportunities to assist the company’s growth. According to the memorandum, in a year and a half, the state will consider the possibility of launching the privatization,” he noted.

According to Alexander Zabello, the EBRD's technical assistance is not direct financial contribution to the company’s development. “Assistance worth €60,000 will be provided to pay for consulting services. The bank will lend its top managers who would give recommendations on how to improve the production and sale processes, minimize costs. Recommendations will also be provided on product promotion,” Alexander Pivovarsky said.

In his words, the EBRD's technical assistance can be regarded as a message to potential partners and investors outside the country, as the demonstration of the company’s capabilities. “Many people listen to the opinion of this bank,” Alexander Zabello added.

OAO Krinitsa is the largest brewery of Belarus. It produces beer, kvass, soft beverages and food concentrates. Beer and kvass are exported to 15 countries on four continents.