Government Measures Fail to Stabilize the Financial Situation at Minsk Automobile Plant

Government measures have failed to stabilize the financial and business operations of the Minsk Automobile Plant (MAZ). Aliaksandr Lukashenka made the statement at a meeting on public transport development today.

According to his press service, he highlighted insufficient production capacity utilization, accounts payable and substantial inventory stocks.

He also recalled how he had provided support to MAZ and Belkommunmash in previous years. For example, in 2009, amid the financial crisis, a decision was made to focus on the future by developing a low-floor tram and beginning work on an electric bus.

“We weathered the storm (that is the main result today) and began producing our own buses, trolleybuses, trams and good-quality railway rolling stock that can compete in international markets. Not always. Due to our lack of discipline and, at times, incompetence,” Lukashenka said.

He noted that there was currently demand for passenger transport equipment, but inadequate product quality and missed delivery deadlines remained pressing problems for Belarusian manufacturers.

“If there is no quality and no performance discipline, if you agree to deliver equipment by a certain deadline but fail to do so, everything will go to waste, and others will take your place very quickly. You will lose the trust we still enjoy, which has been built up over decades,” he said.

“Whatever explanations you give, they are waiting for your equipment to arrive on time. Everything else is your problem,” he added.

Lukashenka also proposed that MAZ and Belkommunmash implement investment projects jointly.

“Perhaps the time has come to implement investment projects quickly to address bottlenecks. Wherever we can do something together, we should do it. There is no need to work separately,” he said.

Another idea was to adapt the three-section tram manufactured by Belkommunmash for Chelyabinsk for use in the metro system. In the Russian city, the tram is to operate on lines shared with the metro.

“It turns out that the multi-section trams they manufacture can also be supplied to the metro system, eliminating the need to purchase these trains elsewhere,” he said.

Lukashenka instructed officials to examine the issue in the first half of next year. The relevant minister and deputy prime minister, together with the heads of the enterprises, as well as Council of the Republic Chairwoman and the president’s authorized representative in Minsk Natallia Kachanava, were tasked with looking into the matter.

“Report to me on what regulatory measures, if any, need to be taken (if everything goes well, and I am confident it will). I am ready to do that,” Lukashenka said.