News & Events in Belarus

Lukashenko: Localization is crucial for Belarus

MINSK, 16 January (BelTA) - Localization is crucial for Belarus. It is not just an image-building project, Belarusian President Aleksandr Lukashenko said as he visited the Minsk City Technopark on 16 January, BelTA learned.

Minsk Mayor Vladimir Kukharev reported to the head of state on the progress in the reconstruction of the technopark site and the prospects for the development of MotoVeloZavod located there. Aleksandr Lukashenko inquired about the problems that have not been solved yet. Vasily Gerasimov, Chairman of the State Control Committee of Belarus, informed the president that there are still issues with the localization of production.

“Localization is the most important issue for us. This is not just a PR exercise. Back in the Soviet Union we produced tractors, trucks (MAZ trucks), bicycles, motorcycles. Indeed this is about the image. But what is the essence of this problem. We have decided that we need to preserve our expertise that we inherited from the past generations, to develop and modernize it. We have followed this path, and in this respect MotoVeloZavod is a case in point. We need to develop what we know how to do and what we have been doing,” Aleksandr Lukashenko emphasized.

He noted that Belarus is capable of making anything, even a space rocket, but it all depends on time and money. And there's a big question whether the country needs space rockets.

“We need all of these: trucks, tractors, bicycles and motorcycles. So we developed the expertise we had. We had serious competencies, so we developed them,” the president pointed out.

A few years ago, the head of state ordered to renovate the production site of the former MotoVeloZavod. For this purpose, the Minsk city authorities transferred a land plot with a total area of 27.6 hectares to the Minsk City Technopark. The depreciation of buildings and engineering networks ranged from 40 to 100%. At that time, the site hosted 118 lessees, of which 30 companies were engaged in production while others were involved in the services sector, wholesale and retail trade.

Since the investment project was launched in 2021, almost Br265 million has been earmarked from the innovation fund of the Minsk City Executive Committee and the city budget. The total expenses are estimated at Br370 million. After the reconstruction project is completed, the site will host 140 enterprises, including 40 resident companies of the technopark, with an annual production volume of about Br300 million.

Reconstruction still continues and the financing has not been utilized fully yet, but the output of the technopark resident companies per 1 ruble of investment has already reached 1.16 rubles. The reconstruction project is forecast to pay back in 2031.

The Minsk city authorities expect that the renovated site of the Minsk City Technopark will become a center of attraction for innovative business and will harmoniously fit into the city infrastructure.

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