2013 investment plan as a means to support resource-intensive industries
Feature of the investment plans implemented in the region is that they all concern already existing, as a rule large industrial enterprises. Foreign direct investment is almost never aiming at new productions.
Primary investment counterparties are Russian companies interested in the modernization of Belarusian enterprises, and embedding them in the Russian production chain. Thus, in 2012 Russia was the largest investor in Belarusian economy (46.7%), the UK (25.2%) and Cyprus (6.4%). The largest investors in the economy of the Minsk region (the most attractive region from an investment point of view) were Russia (38.4% of total FDI), Cyprus (20.3%), Lithuania (9.8%) and Iran (6.1%).
Net foreign direct investment in Belarus for 2013 is projected at USD 4.5 billion, of which Minsk is projected to raise USD 950 million. For comparison, in 2012, it was planned to attract USD 1.2 billion in Belarus’ economy, while the real figure was USD 854 million. About one-third of net FDI 2012 was in the banking sector.
With regard to foreign direct investment plan for 2013, 1) it looks unrealistic and overestimated; 2) FDI is intended to modernize already existing and profitable production facilities.
In Minsk region FDI projects relate to mechanical engineering and metallurgy. The largest investment projects to be implemented in 2013, include: installing production facilities at JSC BelAZes to make heavy trucks with 450 tons payload capacity, construction of production facilities for precision iron castings at the Minsk Motor Plant Stolbtsy Branch (Minsk region), construction of small section wire production line at the Belarusian Steel Works; and modernization of the Minsk Automobile Plant.
This investment policy is not unique to the Minsk region, but also applies to other regions. For instance, mainly energy-intensive production associated with mining and mineral processing will be developed in the Gomel region. Once operating in the Gomel region electronic businesses and other high-tech industries, currently have ceased to exist or have been restructured, and there is no plan to open new ones.