Authorities crumb privatization deals in petrochemical industry

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April 22, 2016 18:54

In early July, "Belneftekhim" Head Igor Zhilin was released from office. Until now, official explanation was not provided. In addition, the Belarusian law enforcement agencies do not comment the information, published in some independent media about the alleged arrest of Zhilin.

For example, according to BelaPAN, the General Prosecutor’s Office instituted criminal proceedings under Article 424 of the Criminal Code (abuse of power or of a position of authority). A Russian citizen, Igor Zhilin in 2009 – amid dairy and "gas wars" between Moscow and Minsk and before the abolition of oil preferences – was appointed as ‘Grodno Nitrogen’ Head. In 2011 – amid a dispute over duty-free Russian oil – he was appointed as "Belneftekhim" Head. Experts have interpreted his most recent appointment as a preparation stage for privatisation of Belarus’ petrochemical industry by large Russian business. Today the Belarusian leadership is lacking sufficient resources to continue delaying privatisation in favour of Russian business. However, they might use some old means (eg Baumgertner case) to initiate tension in Russo-Belarusian relations, and put in jail top managers representing Russian oligarchs, interested in Belarusian assets.

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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.

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