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February 1 – February 7, 2016

Economic recession unlikely to prompt Belarusian authorities to privatisation in 2016

The situation has not changed

The State Property Committee has published a list of 56 companies and 4 proprietary complexes to be put for privatisation in 2016. There are no economy’s cornerstone enterprises on the list and most companies require financial recovery. Due to special requirements, such as preservation of working places and other financial burdens, only few enterprises may be privatised. It is easier for a potential investor to open a new enterprise than privatise state ones, due to the fact that the state would like to interfere in management at the privatised enterprises even after their sale. According to the authorities, the IMF has softened its position with respect to privatization during the economic recession, therefore the state is unlikely to reduce control over the Belarusian economy in 2016.

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