Meeting to discuss the Belarusian industry

The situation in the country’s manufacturing sector looks pretty good by and large, yet this is not a reason to become complacent, Belarusian President Aleksandr Lukashenko said at a meeting to discuss the Belarusian industry on 22 July.

“Last week we examined the situation in agriculture, with a focus on harvesting. Today we will dedicate our meeting to the industrial sector of Belarus. Naturally, these two sectors of the economy are interconnected and they are the economic lifeline of our state,” Aleksandr Lukashenko noted.

The review of the state and prospects of the domestic industry at the level of the head of state had been planned a long time ago. When appointing Aleksandr Yefimov as Industry Minister at the end of June, the President gave an instruction to compile a report on the state of affairs in this sector. Initially, it was planned that the minister and the deputy prime minister overseeing this sector would report on the state of things in the manufacturing industry. But in the end, the list of participants of the meeting and the agenda were expanded. 

“Back then, while announcing new appointments, we decided to review the performance of industrial organizations (especially since the half-year mark was passed) with the new minister and briefly discuss our plans,” recalled Aleksandr Lukashenko. “Judging by the information that I have at hand, the situation is not bad by and large. The output has been steadily growing for several years. Last year, the export of industrial products hit its 10-year high and was estimated at $6.5 billion. However, this is not a reason to rest on our laurels and think that we have already achieved everything,” the President remarked.

The head of state warned against losing momentum. He emphasized that all the tasks related to the production and sale of products must be fulfilled. The key development guidelines for the Belarusian industry were articulated at an extended meeting in April. The tasks remain the same, the President remarked.

“Our main goal is to diversify exports. We know how to produce things, but the most important task is to sell them. Our products are in demand. Other countries are also ready to buy our goods,” the Belarusian leader noted.

The head of state criticized the Government and, first of all, the deputy prime minister overseeing this area for their poor performance with regard to the domestic market. He emphasized that it is necessary to ensure reasonable market protection. “We must protect our own market in a reasonable way,” the President said. 

At the same time, Aleksandr Lukashenko does not think that wall-to-wall protection of the Belarusian market from imports is a viable option, since in this case other countries will retaliate by closing off their markets to Belarusian goods. “We have to accept the fact that we produce the same things that many other countries produce. Therefore, sealing off the border for imports and simply shielding the market from foreign manufacturers will not work. We must act smartly. For this we have a Government that should help industrial enterprises,” the President noted. 

The head of state urged to more actively defend the interests of Belarus within the framework of agreements with other countries, including Russia. “We sometimes leave it to chance,” noted Aleksandr Lukashenko. 

The President drew attention to the fact that Belarusian producers of tractors and refrigerators are being increasingly undercut on the Russian market. True, refrigerator sales are beginning to surge and positive trends have emerged. “We must make the most of it,” the Belarusian leader remarked. 

“Although we manufacture all kinds of equipment, we still purchase a lot of similar products from other countries, including places that we should not buy from,” the president said outlining another problematic aspect. In this regard, he asked the officials in charge why this is happening, whether the problem is about prices or quality or the absence of an effective marketing strategy. 

The head of state asked what exactly was done to protect the domestic market and, most importantly, when the results of these efforts will be visible. “The ultimate goal is to make sure enterprises operate at a profit and make money,” the President noted. 

Another problem that the President drew attention to has to do with the return of overdue external receivables that continue to snowball for the second year in a row. “I would like to warn company heads: this will get you in prison. Because you ask for cheap loans to cover operating expenses and to restructure debts. In other words, you hope that the Government will again lend you a helping hand and [you also hope for] other benefits and preferences. I want to make it abundantly clear: your settlements should be in perfect order,” said Aleksandr Lukashenko. 

According to the President, the launch of a new investment cycle as part of import substitution and localization efforts should ensure technological sovereignty and guarantee the sustainable development of Belarus. “Indeed, a strong economy is essential for a country’s independence,” the Belarusian leader emphasized. 

Another issue that was raised at the meeting concerned import-substitution investment projects financed using Russian state loans. “You asked for it. Putin promised me these loans, he is issuing them. We agreed that [the loans will be provided] for projects that will be of interest not only to Belarus, but also to Russia. Probably, they set the terms right offering financing for joint projects.” That’s right. So how are things in this regard?” the head of state asked. In particular, he wanted to know the status of these projects and progress to fulfill the President’s order to set up service centers for Belarusian machinery in all Russian regions where it is used. 

The participants of the meeting also discussed efforts to improve the quality of products made by domestic manufacturers.