Lukashenko rejects Belvest’s bid to privatize Minsk Tannery

<p> MINSK, Mar 23 - PrimePress. Belarusian president Alexander Lukashenko has turned down the government’s proposal to sell Minsk Tannery Production Association (based in Gatovo, Minsk District) to Belarusian-Russian Belvest JCS (Vitebsk). Lukashenko informed about his decision while making a tour of the Gatovo-based factory on March 23, the president’s press-service said. </p> <p>   </p> <p> “There can be no privatization of this enterprise. Processing of raw leather is a strategic industry of our country," said Lukashenko. According to him, the conditions of privatization were not the best for the enterprise and the state. He noted that if the state cannot manage certain enterprises, then it is possible to go for privatization. But that is not necessary in this case. </p> <p>   </p> <p> “The state can solve the remaining problems here. If they ask to privatise an enterprise and provide vast preferences, it means they will not pay taxes. And the preferences are equal to the amount of money we have to invest in production upgrade? What is the point? That's why all decisions have been taken so that you could work,” Lukashenko said. </p> <p>   </p> <p> Lukashenko instructed the government to support the Gatovo-based enterprise: to allocate them Br8-9 million for debt repayment and also $2.5 million for the construction of waste treatment facilities. </p> <p>   </p> <p> According to Vice Premier Yuri Nazarov, there is a proposal to set up a leather and footwear production and trade holding company under the auspices of one of the manufacturers. It will help solve all issues of the factory in Gatovo. “We have 78 consumers of leather. And you want to give all raw materials to one manufacturer. Where is fair competition?” Lukashenko said. </p> <p>   </p> <p> Minsk Tannery CEO Olga Politiko said that the enterprise can satisfy Belarusian consumers’ demand for hide. But the main obstacle is that the enterprise owes meat processing plants Br8 million for raw materials supplied. </p> <p>   </p> <p> “A large-scale production upgrade was carried out there a few years ago, but it turned out that the targets of the enterprises were not reached. The situation on the market had a huge impact on it. In the previous years, Belarusian footwear manufacturers had ambitious production plans, and the Gatovo tannery counted on that. However, those plans were not fulfilled, and the enterprise sold less leather than they expected. And in general, Belarusian manufacturers prefer foreign raw materials”, reads the president’s press-service. </p> <p>   </p> <p> “It’s time to respond – you are submitting proposals which rule out the previous decisions. None of the instructions were fulfilled,” Lukashenko said. “This is the industry – at one enterprise. It can process all hide in Belarus. Have you done it? No.” </p> <p>   </p> <p> As previously reported, the government is considering a project to set up a tannery holding company since April 2020. In late 2012, Lukashenko supported the idea of creating a large leather and fur enterprise on the basis of the Marko JLLC (Vitebsk) and the Vitebsk Fur Factory. Plans to merge MPKO and Belvest, in which state concern Bellegprom has a controlling stake, have been considered for several years. </p> <p>   </p> <p> The Minsk-based tannery in was founded in 1927. In 1985 production was moved to a new site in Gatovo and in 1992 it was renamed Minsk Tannery Production Association. End </p>

2021-03-24

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