Belarus hopes for ‘integration Prize’ when selling its assets
Belarus has announced conditions for the sale of shares in Mozyr oil refinery.
Their value has been assessed at USD 4 bln, and the buyer will provide guarantees of oil supplies to Belarus for 10 years. Belarus has inflated its conditions many-fold. The conditions put forward have meant to limit the range of potential buyers and imply an invitation to start negotiations. Privatisation (GrodnoAzot, MTS, Mozyr Oil Refinery) under the announced conditions is unlikely, but some ‘integration prize’ for the assets is feasible. Negotiations will intensify closer to the date Belarus is supposed to sign the oil supply agreement for H2 2014.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.