NEWS
Meeting of the Council of Ministers of the Union State
 On June 27, 2008 a regular meeting of the Council of Ministers of the Union State was held in Moscow. Belarus has been and remains the main area of the Russian foreign policy, Russian Prime Minister Vladimir Putin said at a meeting with Belarusian Premier Sergei Sidorsky. Vladimir Putin noted that Belarus and Russia continue working in all areas, above all, in trade and economic area, he said. Last year the Belarusian-Russian trade surged by 30% as against 2006. Over the four months this year it was up 60%. “Our efforts yield real results,” Vladimir Putin highlighted.
“We have something to be proud of not only in bilateral cooperation but also in the development of the two states,” Vladimir Putin noted. He also added that in bilateral cooperation Belarus and Russia will pay special attention not only to the economy but also to the social area.
The growth of the Belarusian-Russian economic cooperation is the main result of H1 2008, Belarusian Premier Sergei Sidorsky noted during a session of the Council of Ministers of the Belarus-Russia Union State.
Sergei Sidorsky reminded that over the four months this year, the Belarusian-Russian trade increased by 60% as against the same period last year. “More than 6 thousand companies of Belarus and Russia closely cooperate with each other,” Sergei Sidorsky noted.
It attests to the strengthening of the economic cooperation of Belarus and Russia within the framework of the Belarus-Russia Union State, the Prime Minister highlighted.
The Belarusian-Russian integration should be filled with new ideas and initiatives, Russian Premier Vladimir Putin noted during a session.
Vladimir Putin also noted that it is necessary to preserve the dynamics of the trade and economic cooperation between the two countries. “We should settle a lot of problems: the creation of the single economic area, the formation of the Customs Union, the ensuring of equal rights of citizens of Belarus and Russia that will allow the two countries to reach a new level of the integration,” Vladimir Putin noted.
In 2009, the budget of the Belarus-Russia Union State will be increased by at least 25%, Belarusian Premier Sergei Sidorsky noted during a session of the Council of Ministers of the Belarus-Russia Union State in Moscow on June 27.
According to him, relevant instructions have been given to the governments of both the countries.
A session of the Council of Ministers of the Belarus-Russia Union State paid special attention to the joint production programmes. “The mutual trade should be supported by the joint programmes,” Sergei Sidorsky noted. According to him, the session considered the new programmes concerning the microelectronics, the production of big integral circuits, composite polymeric materials. The sides also discussed the transport, customs and other issues which should give a powerful impetus to development of the integration processes.
Foreign investments in Belarus 1.7 times up in Q1 2008
In Q1 2008, Belarus attracted $21.1 billion of foreign investments, 1.7 times up over the same period of 2007, First Deputy Prime Minister of Belarus Vladimir Semashko stated at a joint session of the two chambers of the Belarusian parliament on June 27.
Direct investments totaled $617.5 million, 2.4 times up from January-March 2007.
According to Vladimir Semashko, the majority of foreign investments were attracted by private companies. Investments in the fixed capital are usually own funds of organizations, budget resources, bank loans and resources of the population. Investments in the industry are slow.
Vladimir Semashko underlined that there is a lack of direct foreign investments though there are all opportunities for that. In late 2007-2008, the country undertook necessary measures to enhance the investment potential. The liberalization of the legislation in related to business doing procedures, a credit rating, the abolishment of the golden share rule, privileges for potential investors are those instruments that are necessary today, the First Vice-Premier said.
For the five months of 2008, fixed capital investments in Belarus soared by 22.5% as against January-May 2007.
Belarus' socio-economic development forecast 2009-2010 will increase wages in the national economy up to $760. Vladimir Semashko stated that wages in the public sector will be equal to $700 by 2010. In 2009, average wages will total $590 in the national economy and $550 in the public sector, Vladimir Semashko added.
According to the First Vice-Premier, the GDP growth in 2009 will secure an increase of real incomes of the people at the level of 14-15%.
In 2009, the growth of paid services is projected at the level of 13-14%, retail trade – 16-17%.
For the five months of 2008, Belneftekhim Concern secured a stable work of its companies. Under the period in review, the output grew 13.9% in the fuel industry and 19.4% in the oil-refining industry. “Belneftekhim’s companies have been implementing large upgrade programmes. It is quite difficult to increase output and upgrade the facilities simultaneously. But still we are coping with this task,” First Deputy Prime Minister of Belarus Vladimir Semashko stated at a joint session of the two chambers of the Belarusian parliament on June 27.
According to Vladimir Semashko, oil refineries are fully provided with feedstock, the export potential of the oil-refining industry has increased.
On the whole, the targets of the socio-economic development forecast are being met. Industry is the main source of economic growth. For the five months of 2008, the industrial production was up 13.3%, well above the target of 8-9%.
In January-May 2008, the output in the engineering and metal-processing industries soared by 14.9%. This helped increase the production of tractors by 21.8% and that of combine harvesters by 48.8%.
The Belarusian Government is developing additional measures to stabilize foreign trade. According to First Deputy Prime Minister of Belarus, over the four months this year, Belarus had a deficit in foreign trade at the amount of $626.2 million. “This parameter corresponds to the forecast but in April alone foreign trade deficit surged by $400 million,” the official noted. “We need to take appropriate measures to improve foreign economic activity,” Vladimir Semashko highlighted.
According to him, the Government thoroughly analyzed the reasons of growth of foreign trade deficit. At present, specialists are developing special measures which will be taken in H2 2008 to stabilize foreign trade.
In 2008, Minsk Tractor Works (MTZ) will set up three new plants. In November, a new production facility which will produce tractors will be launched in Bobruisk. It will produce around 6-7 thousand tractors a year. A production facility to produce 4-5 thousand track type tractors will be set up in Mozyr. A production of garden tractors will be organized in Smorgon. The Smorgon plant will produce around 4-5 thousand tractors a year.
On the whole, by the end of the current year, Belarus intends to carry out 252 projects more within the framework of the innovation development programme for 2007-2010. By this time, 721 projects have been implemented (including the Shklov-based Newsprint Mill).
Many global corporations are ready to invest in the economy of Belarus, First Deputy Prime Minister Vladimir Semashko said.
According to him, the last session of the Advisory Council for Foreign Investments of the Council of Ministers in May showed that the interest of foreign investors to Belarus was growing. “Many world’s largest companies are ready to come to Belarus and invest big money”, Vladimir Semashko noted.
New measures to develop the financial market will drum up this interest, he said. “We are close to entering the international financial market; many major companies of Belarus are preparing for IPO”, the First Deputy Prime Minister said.
Within the next three years the Chinese Midea Group Inc. is going to invest $1.5 billion annually in Belarusian projects, First Deputy Prime Minister of Belarus Vladimir Semashko stated at a joint session.
According to him, the output of the new facilities created under these projects is projected at $2-2.5 billion a year. “The final decision will be taken as the joint venture of Horizont and Midea Group starts the production of microwave ovens,” he noted. The designed production capacity is 1 million microwaves per year. Of them 300-350 thousand will be sold in the domestic market, the rest will be exported.
The production facilities of the joint venture are located in the free economic zone Minsk. The construction will be completed in August. The Horizont-Midea Group company will start production in September 2008.
Vladimir Semashko has also informed that Belarus has signed an agreement with AFK Sistema. The negotiations are underway with the GAZ Group and oil companies.
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© 2005-2008 Staff of the Council of Ministers of the Republic of Belarus
No part of this information may be reproduced in any form without reference
Information support from the Republican Unitary Enterprise Belarusian News Agency
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