Authorities crumb privatization deals in petrochemical industry

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.