Privatization: random “Off and On” mode

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April 22, 2016 17:55

Privatization: random “Off and On” mode


The Head of a state corporation “Russian Technologies” Mr. Chemezov said that talks between the Russian KAMAZ and the Belarusian MAZ regarding potential merger of assets were stalled due to political reasons. Mr. Chemezov said that the proposals of MAZ concerning merger were not satisfactory for the Russian KAMAZ.

MTS (Mobile TeleSystems)

Russian mobile operator MTS said that it reserved the right to block the sale of state shares in the Belarusian subsidiary company (also MTS), thereby confirming its interest in buying governmental stake (51%) in the Belarusian-Russian JV “Mobile TeleSystems”. MTS believes it is necessary to have an independent assessment of the market value of the Belarusian MTS.


The First Deputy Chairman of the Committee for Property Sergei Pyatkov went to Moscow to talk about sale of 50% of stakes of “Beltransgaz”.


Given there is uncertainty with external financial resources (this applies to both the IMF loan and to continuation of funding from the Anti-Crisis Fund of EurAsEC) the Belarusian authorities are forced to make concessions regarding the privatization of key assets.

Regardless of the obvious reluctance of President Lukashenko to privatize strategic assets, it is most likely that in the near future, “Beltransgaz” will be sold to Russia on Russian conditions (USD 2.5 billion, without reference to the price of a new contract). Therefore the National Bank will have an opportunity to start interventions at the Foreign Exchange and partly repay the deferred demand for foreign currency. Also it proves the intention of Belarus to privatize its assets to both Russia and the IMF and gives the country a chance to continue bargaining for the sale of other assets (“Belaruskaliy”).

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