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THE ESSENTIAL
Energy industry investors promised taxation preferences in Belarus

In Belarus energy industry investors will be offered taxation preferences, First Vice Premier of Belarus Vladimir Semashko said at the IV international investment forum in Mogilev on October 9. In his words, the government has prepared two new energy industry bills meant to encourage investments into the industry. They grant taxation preferences for up to 7 years. Investors are expected to recoup their money within five years and use the remaining two years to develop their companies, said Vladimir Semashko.

 

BR158,5 BILLION REQUIRED TO IMPLEMENT 5-YEAR PROGRAM ON VEGETABLE-GROWING DEVELOPMENT

By 2010 vegetable production will grow 1,5 times in Belarus, what will let increase medical norms of vegetable consumption per capita. By 2010 the prime cost of vegetable production will fall by 20-25 per cent in the republic and annual production costs will be reduced by Br18-20billion, what will ensure competitiveness of agricultural products on the external and internal markets. This is the main goal of the program on satisfying the needs of Belarus in vegetable products taking into account conditions necessary for their storage designed by 2006-2010 and approved by resolution of the Council of Ministers №1579.

The program was drawn up by the ministry of agriculture and foodstuffs of Belarus jointly with Belarusian scientists and is a strategy for development of the branch for the next five-year term. The program requires Br158 billion 577 million including in 2006 – Br49 billion 182 million. The program will be financed from the republican fund of agricultural producers and the republican budget (an investment program), local budgets and own funds of agricultural companies, which will get credits for this purpose.

The program is of social nature as aims to promote good health of the nation, was informed by head of the department for production and trade in fruits and vegetables of the ministry of agriculture and foodstuffs of Belarus Tatiana Karbanovich. According to the source, at present the republic produces 118 kilos of vegetables per capita or 8 kilos lower than the medical norm. In the recent three years vegetable production has been reduced by 189 thousand tons, what promoted import supplies. That was the main reason to draw up the program and to saturate the market with vegetables. The program will enable agricultural companies to stably produce eco-friendly products and to expand their assortment up to 20 types.

According to Tatiana Karbanovich, zones of raw materials will be set up and specialization of companies will be determined to implement the program. Green peas production will be doubled in 2006 compared with 2005 and its gross yield is expected to make 11 thousand tons. Seven specialized lines will be purchased to process it.

Production of annual onions will increase up to 40 thousand tons while the production of onion for seeds will be up to 800 tons. Five companies will be fully fitted with cutting-edge equipment. Three raw gherkin zones will be developed in an attempt to ensure processing companies with feedstock. Gomel oblast is expected to concentrate on growing haricot including kidney beans. An emphasis will be placed on growing pumpkins and legumens, garlic, radish, cauliflower, broccoli, Savoy cabbage and Chinese cabbage, lettuce, other vegetables not traditional for Belarus as well as coriander, spice plants – basil, mint, celery, balm. The production of the vegetables uncommon in the country will soon grow up to 9,3 thousand tons while their offering range will expand.

The country is set to start 50 large vegetable growing facilities in close vicinity to the oblast cities and industrial hubs. By 2010 they will be in position to supply over 200 thousand tons of vegetables, or 60 per cent of their gross production in the public sector of the country. About 22 packaging lines will be purchased; service delivery to the trading network will be organized. These vegetable growing facilities will have the storage places equipped with the state-of-art gear to maintain the microclimate to prolong shelf life of vegetables. The reconstruction of storage facility will increase the annual sales off-season up to 100 thousand tons. New storage capacities for 8,4 thousand tons will be built.

Seed-farming, in particular, of white cabbage, peas, table beet, garden radish and black radish will be in the spotlight. Seed-growing of other vegetables will be organized in the most favourable regions of the CIS countries. This move would enable the country to produce over 1800 tons of vegetable seeds and reduce currency expenses on their purchase by Br,5 billion. Moreover, 22 tons of elite seeds of vegetables will be supplied on the domestic market by the vegetable-growing institute of the National Academy of Sciences of Belarus. A new-tech center will be created in the institute.

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NEWS
Regions reveal Belarus-Russia cooperation potential

On October 7, Deputy Prime Minister of Belarus Andrei Kobyakov and First Deputy Chairman of Government of the Russian Federation Igor Shuvalov met in the Brest oblast to discuss the issues of further development of the trade and economic relations between Belarus and Russia.

 
Belarus, Ukraine to set up joint ventures in engineering industry

In the near future Belarus and Ukraine intend to set up joint ventures in the engineering industry, First Deputy Prime Minister of Belarus Vladimir Semashko told reporters after the 15th session of the Belarus-Ukraine Intergovernmental Commission for Trade and Economic Cooperation in Kiev on October 7.

Meeting of the Council of Ministers of the Union State

Belarus and Russia should coordinate their efforts in the economic area in the conditions of the global financial crisis, Prime Minister of Belarus Sergei Sidorsky said as he met with Russian Premier Vladimir Putin in the run-up to the session of the Union State Council of Ministers.

 
Trade between Belarus and Ukraine to exceed $5bln in 2008

In 2008, the trade between Belarus and Ukraine will exceed $5 billion, First Deputy Prime Minister of Belarus Vladimir Semashko said. The First Vice Premier is the head of the Belarusian delegation at the 15th session of the Intergovernmental Belarusian-Ukrainian Commission for Trade and Economic Cooperation which is being held in Kiev on October 6-7.

 
Belarus is ready to carry out big projects with participation of European Bank for Reconstruction and Development

Belarus is ready to carry out big projects with the participation of the European Bank for Reconstruction and Development (EBRD), Belarusian Prime Minister Sergei Sidorsky noted during his meeting with Varel Freeman, the EBRD First Vice President.

Austrian capital participates in many key projects in Belarus

Many major projects in Belarus are implemented with the participation of Austrian capital and technologies, Deputy Prime Minister of Belarus Andrei Kobyakov said as he met with Johann Zaks, Director General for Foreign Trade Issues of the Federal Ministry of Economics and Labour of Austria, co-chairman of the Belarusian-Austrian committee on trade and economic cooperation in Minsk on October 2.

Biofuel to be produced in all regions of Belarus

Enterprises producing biofuel will be set up in all the regions of Belarus, Belarusian Prime Minister Sergei Sidorsky told reporters.

Belarus downs export oil duty October 1

On October 1, 2008, Belarus will down the crude oil export duty from $495.9 to $372.2 per tonne. The Council of Ministers issued relevant resolution No 1426 of September 27.

 
Belarusian business and expo centre to open in Kazakhstan

A multifunctional trade and logistics centre as well as administration and business and expo centres of the Republic of Belarus will open in Kazakhstan. Their opening was discussed at the fifth session of the Belarusian-Kazakh trade and economic cooperation commission in Astana. The Belarusian delegation was led by Deputy Prime Minister Ivan Bambiza, the Kazakh delegation — Emergencies Minister Vladimir Bozhko, the press service of the Foreign Ministry told BelTA.

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