Lithuanian investors eyeing Belarusian companies
2011-07-20 15:53:34
Lithuanian investors are interested in buying assets of several Belarusian companies, in particular, the Mozyr-based factory Etanol and OAO Minsk Margarine Plant, Ambassador Extraordinary and Plenipotentiary of Belarus to Lithuania Vladimir Drazhin told media on 20 July.
“Foreign direct investments from Lithuania to Belarus are followed by the desire of Lithuanian investors to privatize several Belarusian companies,” said the Ambassador. Etanol and OAO Minsk Margarine Plant “may get investments from Lithuanian investors, who are interested in enhancing the companies and exporting their products,” remarked Vladimir Drazhin.
Speaking about prospects of Lithuanian banking capital arriving in Belarus, the Ambassador urged to be realistic. At present Lithuania’s banking capital is primarily represented by Swedish, Norwegian and Finnish capital. It is not a direct interest of the countries, said Vladimir Drazhin. Negotiations are underway. They can be successful if all the sides, including the Scandinavian ones, demonstrate their good will.
The Ambassador said that systemic integration of the Belarusian and Lithuanian economies has been underway over the last few years. In 2010 Belarus’ investments to Lithuania amounted to $53 million, with Lithuania’s FDI in Belarus at $49.5 million. “As you can see we are even,” said the Ambassador. In H1 2011 good FDI results were achieved: over $40 million was attracted out of the targeted $60 million.
Lithuania’s FDI are used to set up export-oriented industrial enterprises. The construction of an enterprise to make pressed slabs is underway in the free economic zone Mogilev. The volume of investments in the project stands at €120 million. The enterprise is expected to export around €200 million worth of products per annum.
The construction of a transportation and logistics center in the town of Volozhin is about to end. The facility will be commissioned in August. The construction of enterprises to process agricultural products, namely meat and milk, is underway. “We are considering several such projects that will be implemented in Minsk Oblast, Mogilev Oblast and Grodno Oblast,” said the Ambassador.
He also said that nowadays Lithuania is a unique country, which can accept certain EU-certified commodities from Belarus and move them to the European Union. “We understand that the orientation of Belarusian export to the east - Russia and Kazakhstan - is a good guideline but we shouldn’t forget that export needs a multiple-vector policy,” said the Ambassador. “European Union countries, in particular, Lithuania and other Baltic states, can be very reliable partners in this regard”.
In 2011 Belarus-Lithuania trade is supposed to reach $1 billion, with services accounting for a half of it.
Vladimir Drazhin said that problems on the Belarusian currency market had not affected Lithuanian investors. “There is no sense of waiting. The process goes on. It has not slowed down. They are working the way they did before,” said the Ambassador. It is particularly noticeable if the construction projects where Lithuanian investors are working are considered. Properties for the sphere of services, trade, and motorway service are being built in Belarus using Lithuanian capital.