Tractors export became unprofitable

Aliaksandar Lukashenka said he considered selling the control shares of the scientific research association “Integral” to the Russian finance corporation “Sistema.” At the same time, the tractor plant of Minsk is said to stop next week.

Economist Leanid Zlotnikau comments on the possibility of selling “Integral” control shares to Russia in an interview to Radio Svaboda:

“It’s hopeless. I remember, a couple of years ago Lukashenka visited the plant. And then he promised 40 mln dollars of aid if they present an interesting project. But what is $ 40 mln for such a huge enterprise? Nothing. For example, the Japanese invest $ 3-4 bln dollars in a similar industry.

The state has no funds to upgrade “Integral,” which the authorities are perfectly aware of. They failed to produce even bicycles and motorbikes, not even to mention microelectronics.

The state cannot do anything to restore these enterprises. The time goes by, and “Integral” is still half dead half alive.”

Meanwhile, the tractor plant will stop production on November 3.

Head of the Belarusian congress of democratic trade unions Aliaksandar Yarashuk said the plant was ordered to stop the production line by November 11. The plant’s administration refuses to give any reasons. Many experts believe the export of the tractors became unprofitable.

Leanid Zlotnikau points to the fact that the tractor plant, just like “Integral,” is on the list of the enterprises subsidized by the state. Now, apparently, even this aid is of no assistance.

The stock exceeds half-month production amount:

“A month ago, the whole area there was filled with unsold tractors. The price on tractors became much higher. And it’s not surprising: the energy became more expensive and the price on the metal rose. The tractor plant is highly metal consuming,” the economist says.

Another major enterprise - automobile plant of Minsk - is to face problems in the near future, observer of weekly newspaper “Belorusy I Rynok” Aliaksandar Alesin believes.

He refers to the fact that MAZs, the machines produced by Minsk automobile plant, became more expensive than their Russian analogues KamAZs and much more expensive than Chinese trucks. With such high prices on oil, Russia can buy anything. But this year the sales of Minsk automobile plant are much lower than those of its rivals:

“Nearly every plant has increased its sales: Volvo, Scania, Mercedes, KamAZ, MAZ. But MAZ sold 11 per cent more, while KamAZ - 30 per cent and Chines sell several times more. If Russia doesn’t get this amount of oil dollars, it will cut down on the demand. Then we will have big problems,” Mr Alesin emphasized.