Фото: пресс-служба Лукашенко
Aliaksandr Lukashenka today held a meeting “on certain issues of socio-economic development.” This is how Lukashenka’s press service described its subject. The discussion focused on “modernizing agricultural production” and transferring “state assets in the agro-industrial sector to private companies for management”, using the example of Vitsyebsk Region, where some enterprises had previously been transferred to companies controlled by businessmen Yauhen Baskin and Aliaksandr Mashenski.
Opening the meeting, Lukashenka directly said that privatization would be discussed.
“The topic of our discussion today. Well, first of all, it is a traditional one, something I always talk about. If I have any questions before a decision is made on one or another regulatory legal act of the president, in this case a decree, if I have such questions, we get together and discuss them in order to make a well-considered and precise decision.
Secondly, using the example of Vitsyebsk Region, we will consider one of the issues. But this does not mean that we are considering the issue of reorganizing or reforming agricultural production and processing, in particular in Vitsyebsk Region. To put it simply: how you calculated all this, all the money and everything else — that is your business.
There are enough smart people in the government. And I don’t even need to talk about the State Control Committee. This is your bread and butter: state property, money, the budget and so on. This is, above all, your bread and butter. Therefore, you must not simply calculate, but recalculate what the government and specialists propose and report it to the president together with the prime minister.
But today, using the example of Vitsyebsk Region, we will consider an option, so to speak, to put it bluntly, of privatization. But it looks like we are transferring state property to management and then selling it, or immediately selling part of the agricultural production facilities of collective and state farms to private companies,” he said.
Lukashenka’s remarks indicate that he has been presented with a draft decree that would formalize this practice. It was discussed using the example of Vitsyebsk Region.
“We will consider this issue using the example of Vitsyebsk Region. Therefore, without this specific information from you, how you calculated it all, you will spell everything out in the final version of the report on the decree and report it to me. But this is just an example. At the beginning of the year, we set a specific step-by-step anti-crisis plan for Vitsyebsk Region, starting with money and ending with personnel changes. For example, there is a new governor.
One of the elements of this anti-crisis plan was the transfer of insufficiently efficient enterprises to a new owner with sound management capabilities and, most importantly, the financial resources needed to restore and revive these enterprises, produce good end products and sell them either on the domestic or foreign market.
As part of this strategy, a decision was made to transfer Orsha Meat Processing Plant to Agrocomplex Dziarzhynski and assign certain agricultural organizations in Orsha District to Savushkin Product. In addition, an agreement was signed with the investor to lease the assets of Polotsk Dairy Plant for further accelerated development,” Lukashenka recalled.
He also warned officials that they would be personally responsible for the success of the plan.
“I want to warn the governor and the prime minister: you will answer with your heads to ensure that everything there is in order from the state’s point of view,” he added.
Lukashenka stressed that officials must safeguard the state’s interests and ensure that the assets are sold for as much as possible.
“At the same time, when you transfer or sell, especially sell, enterprises, you must treat them as your own. Of course, Yauhen Baskin wants to get them cheaper, because… But that is natural. No matter what he tells us there, that he is interested, that he is a patriot. Of course, he is a patriot, of course he is interested. But why pay extra money? That is natural. So as an investor, Savushkin Product or Baskin want to get them cheaper. But I am telling you frankly, you must sell them for more. I think that is a normal approach. But we must understand that the main thing is not to get some money from these enterprises. That is an important issue, but not the main one. The main thing is for these enterprises to develop,” Lukashenka said.
Lukashenka acknowledged that decisions to transfer agricultural assets would be a burden for private investors.
“We must understand that such decisions are not a gift to a private owner, but rather a burden. When you take over processing, you must understand that they will assign you 20-30 agricultural enterprises that need to be paid properly and from which milk needs to be supplied to Polatsk Dairy Plant. That is exactly what the policy should be, not simply: ‘Take it and that’s it,'” he said.
However, investors will also be held accountable.
“There will be ironclad accountability from them. From Mashenski — to ensure that his own raw materials are available, and from Baskin as well. Please, get chickens, beef and so on, feed them. There you have land — produce there. Pay well those who will produce, say, grain crops for you. Pay those people. Everything comes from the land, from the peasants. Therefore, this is another issue, so that the governor and all of you understand my policy in this regard. We must be ironclad state-minded people, but investors, as we call them, must understand as well. Put in the effort up front — you will find the return there. I did not come up with that. But we must understand that our actions, such decisions, are not a gift to a private owner, but rather a burden. We all understand this.
In each case, an obligation to preserve jobs has been recorded. It is absolutely irrelevant to us, Aliaksandr Henrykhavich (Turchyn — editor’s note), that you write this to me together with Krutoi. Modernization of production and, importantly, repayment of previously accumulated obligations. The obligations are naturally not easy, and this must also be taken into account. But if you take it on — take it on! And through modernization, production management, technological processes and so on, you will definitely get a return,” Lukashenka said.
He also repeated his demand concerning money earned by businesses.
“Well, let’s be frank. Those with whom we are talking are not poor people, and they have fairly good incomes. And thank God! These are our people, our citizens, let them earn money. But God forbid, Vasili Mikalayevich (Herasimau — editor’s note), I find out that this money, whether a kopeck or half a kopeck, as you and Halouchanka assure me, leaves the country. Everything earned must stay here,” he stressed.
According to him, the government also proposed transferring 10 organizations in Dubrovna District and Vitsyebsk Bacon to the Servolux group of companies. A decision has already been made to transfer the management powers to the group. Servolux has now expressed its readiness to buy the organizations in question and assume obligations for their further development. A draft decree has been submitted providing for the sale of each organization for one basic unit. At the same time, the new owner will assume a number of obligations, including debt repayment and investment.
“Today, for the first time, we must consider the proposal of the government and the Vitsyebsk regional executive committee concerning the future of agricultural production as a whole in Dubrovna District. Well, I want to say that the governor, probably without having figured it out at first, gave Dubrovna District to Baskin. What does he need this district for? He should have taken half the region and pulled it along with him. He would have had enough grain, and he could have traded, and he could have doubled chicken production, raised turkeys and produced eggs there, and produced much more beef. And he could also have sold milk to Mashenski at a good price.
But today we are talking about transferring, let this be the first step, 10 organizations in this district and the state-owned enterprise Vitsyebsk Bacon to the Servolux group of companies.
So, as I understand it, these are collective farms and processing?” Lukashenka asked.
“And collective farms, a pig-breeding complex,” he was told.
“Well, is it operating?” Lukashenka asked.
“It has started operating,” he was told.
“Then why transfer it if it is operating? There is nothing for an investor to do there,” Lukashenka responded.
“There are 200 million rubles in debt,” State Control Committee Chairman Vasili Herasimau replied.
“Well, then the debt needs to be worked off. Baskin will take it, so he will have to take on the debts anyway,” Lukashenka said.
“He is taking it with the debts,” Lukashenka’s chief of staff Dzmitry Krutoi noted.
“Why are we putting it around his neck? Well, you will explain to me why you are selling it, as the regional executive committee reports to me, at the first stage a decision has already been made to transfer the powers of the executive body of these agricultural organizations to the investor. This made it possible to provide financial support to the farms to carry out the full range of agricultural work in the first half of the year, that is, to lay the foundation for the future harvest. So the regional executive committee made the decision, Servolux has already taken money out of its own pocket or borrowed it and helped the raw-material producers — this is a raw-material zone for it — in order, as you write, to lay the foundation for the future harvest. Well, God grant that it is so. I have it right next door, so I will always see how that harvest is being laid,” Lukashenka said.