Unprofitable enterprises on sale once again

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April 22, 2016 18:52

A sales plan for over 500 unprofitable assets is now being coordinated in the government.

Most likely, many of these state enterprises will not be sold due to additional conditions slapped on by the government. This attempt to get rid of loss-making enterprises is bound to fail. Few enterprises will be sold, and the most unprofitable ones might be merged with more successful ones of a similar profile. In the future, lists of unprofitable enterprises will get longer as the financial situation deteriorates. In 2012 and 2013, Belarus announced plans to sell state assets worth at least USD 2.5 billion annually. So far, however, these plans have not materialised.

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Minsk strengthens ties with Russian regional elites
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President Lukashenka has met with the head of Chechnya Ramzan Kadyrov, who visited Minsk and the Minsk Automobile Plant. Minsk has always sought to have independent links with Russian regional elites, partially, to compensate for the Kremlin's diminishing interest in Belarus. In recent years, Belarus’ contacts with the Russian regions have been extremely intense. However, with some leaders of Russian regions, primarily heads of large republics, communication was more difficult to build. As many analysts in Minsk suggested, Minsk could regard contacts between President Lukashenka and the head of Chechnya as an additional communication channel for relieving tension in relations with the Kremlin. However, most likely, a trusting relationship with Kadyrov is a value for Minsk as such, provided Kadyrov’s broad business and political interests, and a high degree of autonomy for the Chechen leader from the Kremlin.

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