Investor Praised By Lukashenka Secretly Left Belarus

It managed to invest about 1 billion euros in the economy.

The Austrian woodworking holding Kronospan got rid of its business in Belarus, Office Life has learned. The Emirati Causa Foundation became the new owner of its factories and logistics centers, and business management was transferred to Russian managers.

The legal entities that owned Kronospan factories in Belarus have completed rebranding. Enterprises in Smarhon are now managed by the companies UltraDecor, UltraDecor Properties and UltraDecor NT, in Vitsebsk — Ultrabuild, near Mahiliou — Ultrabuild Steel and Ultra Play OSB. Other local legal entities have also been renamed.

Kronospan's exit from the Belarusian business took place in early autumn last year. Prior to this, the Austrians completed the process of transferring their assets in Russia to the same Causa Foundation. The fund is registered in the UAE.

Kronospan entered the Belarusian market in the late 2000s and became the largest investor in the local wood processing industry. His enterprises here produced wood panels, floor coverings, resins, varnishes, special paper, steel structures, etc. A significant part of the products was intended for export. Kronospan's total investment in the Belarusian economy was estimated at approximately 1 billion euros.

In March 2017, Aliaksandr Lukashenka visited the production of the Kronochem and Kronospan OSB companies while on a working trip to the Mahiliou region. Then he stated that “I wish we had more such enterprises.” “It’s easy for me to talk to you, and let those critics who attacked me when I made the decision to modernize wood processing enterprises hear me,” said the politician.

Back in the spring of last year, after the decision was made to transfer the Russian business of Kronospan to local management, it was said that enterprises in Belarus would continue to conduct their business as part of Kronospan.

Belarusian enterprises of Kronospan were included in the list of assets prohibited for sale from “unfriendly” countries without the approval of the government.