2 Nov 2022 19:48

Russia approves two of 14 import substitution projects proposed by Belarus - Belarusian PM

MINSK. Nov 2 (Interfax) - Russia has so far approved only two of the 14 import substitution projects proposed by Belarusian authorities, which are to be supported by a $1.5 billion loan from Russia, Belarusian Prime Minister Roman Golovchenko was cited as saying by Belarusian state-run news agency BelTA.

"We look specifically at a project - will it be financed or not. So, it may turn out to be just a business plan that does not work, and we will reject it. Then we will look for new ones. Only two projects have been accepted thus far. These are BelAZ (ring rolling production) and one more," Golovchenko said.

The second project accepted by Moscow is the production of forestry machinery at the Amkodor enterprise.

Of the business initiatives proposed by Minsk "about $1.2 billion are civilian projects, about $200 million are military projects (this will be microelectronics mainly), almost all projects are machine building," the prime minister said.

In mid-October, Belarusian Ambassador to Russia Dmitry Krutoy reported that the two countries were finalizing the financial terms of Russia's $1.5 billion loan for implementation of import substitution projects in Belarus.

Under the terms of financing, projects will be divided into two pools, he said. "The first (priority) area is microelectronics, something that is needed now, faster. The second one is engineering projects," Krutoy said.

The Ambassador clarified that the technical part of projects implementation is being elaborated upon by the industry ministries of the two countries. "Each project requires a passport: what technological equipment will be purchased, what markets the products will be supplied to, the products must first and foremost be in demand in the market of the Union State," Krutoy said.

The financing scheme envisages participation of two Belarusian banks - the Development Bank and Belarusbank. "As lending progresses, the relevant resources will be restored by Russia," the ambassador said.