Belarusian style of privatization: state property only for “pocket” firms

One of the richest Belarusian enterprises, oil company Univest-M, continues to acquire more assets in Belarus.

Under the decree of Alyaksandr Lukashenka, its recently organized building and developing subsidiary UnivestStrojInvest is ordered to become a strategic investor and owner of the controlling interest in the unitary enterprise Smalevichy precast concrete factory which is being reincorporated as a joint-stock company now, Ezhednevnich writes.

At the same time, under the same decree “in order to provide building organisations of the country with construction materials and attract investors to the construction industry” the government of Belarus is to sell to UnivestStrojInvest a production site in Smalevichy which belonged to construction and mounting organization Beltoplivstroj. Earlier the two Smalevichy-based enterprises were a part of Beloptgaz structure.

It should be noted that over a rather short period of time it is the second decision of Lukashenka which concerns privatization or funding of state enterprises or enterprises with a predominant share of the state. In November 2007 Alyyaksandr Lukashenka signed a decree about the mechanism of rubberstamping as a property of a well-known private JSC “Triple” and a controlling interest in Beryoza construction materials plant.

The slogan of the existing regime is not an inch to the world oligarchs. And this slogan is still in force. But it doesn’t concern pocket firms.