Business news

MOGILEV, 15 March (BelTA) – In 2016 resident companies of the free economic zone (FEZ) Mogilev intend to increase export by 5.3% from 2015 to $800 million. The information was released by Andrei Yartsev, head of the FEZ Mogilev administration, during the conference held on 15 March to discuss last year’s performance of the free economic zone and this year’s prospects, BelTA has learned.

Taking into account new economic conditions this year FEZ Mogilev resident companies will continue working to diversify target markets. Nine countries were added to the export list of FEZ Mogilev resident companies. “This year we are also going to work on finding new target markets. We will work to export more merchandise while pursuing the policy of steady diversification of export between three main markets — the Eurasian Economic Union, the European Union, and distant-arc countries,” said Andrei Yartsev. Foreign trade efforts are expected to secure a surplus.

In 2016 the resident companies and the FEZ Mogilev administration intend to invest Br1.8 trillion in fixed capital, with Br1.2 trillion to be invested by resident companies without departmental affiliation. Foreign direct investments are expected to reach $45 million, including $40 million in FDI on net terms.

The official noted that the main avenues of efforts in 2016 will be work with existing residents with regard to investments in the modernization of their manufacturing facilities. The FEZ Mogilev administration will also work with the resident companies, which are in the construction stage, as well as with potential investors. “We have made some headway in working with 12 potential investors for the sake of getting them involved in the implementation of investment projects in the free economic zone Mogilev with the declared volume of investments close to $285 million. Apart from that, with assistance of the Ministry of Foreign Affairs the Economy Ministry will continue working to create an automobile components manufacturing zone within the framework of the legislation and the borders of the free economic zone. The work is expected to produce results in 3-4 years,” added Andrei Yartsev.

FEZ Mogilev was established in 2002. It comprises 12 areas, with nine of them located in Mogilev and the district and three of them located in district capitals of Mogilev Oblast (Shklov, Osipovichi, and Bobruisk). As many as 40 corporations are among residents of the free economic zone Mogilev, with six of them with a state share. The volume of investments declared as part of investment projects by the resident companies exceeds €1 billion. As many as 32 resident companies are in commercial operation, nine companies are in the pre-investment phase and the construction phase.