“Izvestia”: Lukashenka will not get a loan if he does not give MAZ

KamAZ and MAZ, giant truck plants, will finally merge on the conditions favourable for Russia. The negotiations started in Minsk on Thursday.

If Belarus does not give a stake, it will not get a loan so needed for the country facing an economic collapse, “Izvestia” learned.

An idea of merging two successful manufactures of trucks and other commercial equipment was suggested in March by Russian PM Vladimir Putin. The Russian party proposed its terms: KamAZ gives its 25% share and acquires a 100% stake in MAZ (or at least 75%). In exchange, Russians promise an access to the dealer network and service stations in Russia as well as high-quality component parts produced by Russian-German joint enterprises in Naberezhnye Chelny.

The talks started yesterday. MAZ press service flatly declined to comment, while KamAZ press service neither confirmed nor refuted this fact. Finally, MAZ general director Alyaksandr Barouski appeared before journalists later on Thursday in Minsk and revealed some details. According to him, Belarusians agree on selling a 48% stake in MAZ and purchasing the same stake in KamAZ. Russians said earlier they did not agree to these terms.

Belarusians have nothing to choose from, a source close to the negotiations says. The merger was a condition for Belarus to receive a Russian credit. To remind, Minsk seeks for three billion euros. The money is needed urgently as the country has faced an acute economic crisis. Prices have jumped, there are no goods, the official exchange rate is 3,000 rubles per one dollar, but one cannot buy foreign currency at such a rate.

“If Lukashenka did not need a loan, he would not start talks on merging the truck plants,” expert Oleg Datskiv thinks.

“After the elections, the Belarusian leader has lost support of European business and has to bargain with Russia,” Dmitry Abzalov from the Centre for Political Conjuncture says.

Lukashenka will not give a 100% stake, Abzalov thinks, but Moscow will delay issuing a credit until it gets a big bite.

“Russia will perhaps agree to take only a 50% stake, but only on a condition of forming a single retail company,” Abzalov supposes. “If the deal is dissolved, MAZ will lose its retail market in Russia.”