Economist: Private Companies Must Think For Themselves In Belarus

In our country, private and state-owned enterprises have never been on equal terms.

One of the largest businessmen of Belarus, Aliaksei Zhukau, was forced to sell his company Alutech to the German company Hoermann.

Thus, having sold a 75% stake, the entrepreneur is de facto deprived of the opportunity to make key decisions at the enterprise. The businessman undertook to "neither directly, nor indirectly, nor at his own expense, or at any expense, carry out any activities that compete with the activities of the Alutech Group."

The reason for this situation is probably the debts that the company accumulated during the economic crisis, Solidarity writes.

Previously, a similar situation occurred with another well-known businessman Siarhei Metto, the founder of Onega, a company that manufactures potato chips. The entrepreneur was forced to sell a controlling stake to the co-owner of the Estonian company Silvano Fashion Group Thomas Tool, because of the loans. Now the businessman, who created the famous Belarusian brand from the very start, is also barred from making key decisions.

Should the situation when, due to the economic crisis, talented Belarusian businessmen lose their enterprises, cause alert?

— While this is one or two people, I don’t think it’s a trend, — economist Barys Zhaliba explained the situation in an express comment. — However, the government certainly has something to think about as the credit debt of legal entities exceeds the norm. In our banking system it is about 14%, and the international norm is only 5%. And some enterprises are in a hopeless situation.

According to the expert, if there is a problem for a large state-owned enterprise, then it can most often rely on the help from the budget. But if an enterprise is private, then any help is out of the question:

— That's why the businessmen, whose business is more or less settled, but who got into a difficult financial situation, found strategic investors — and sold them controlling stakes. I think this is not the worst option, yet they are foreigners who paid with currency. Plus, the former owners remain at these enterprises and can even continue to manage.

According to the economist, those businessmen who are close to Lukashenka's entourage can claim state support.

He emphasizes that private business traditionally suffers from a crisis more than state-owned enterprises.

— We have never had private and state enterprises on equal terms. The same access to raw materials and resources should have been provided long ago. And in our country, state enterprises have always been a priority. They can count on preferential loans, and private companies’ owners should think for themselves. As a result, we have such a situation, — Barys Zhaliba noted.