Alyaksandr Lukashenka rebuked Prime Minister Alyaksandr Turchyn for frequent requests for “benefits and handouts.” A meeting on economic issues was held today, with the agenda including debt restructuring in the cement industry, support for the Svetlahorsk pulp and paper mill, and the transfer of the Orsha meat canning plant to the Dziarzhynsky agro-combine.
“Frankly speaking, I am concerned about this flow of requests for benefits and ‘handouts.’ Especially with the appointment of a new prime minister. I would not want to think, Alyaksandr Henrikhavich, that you are opening some new policy in this way: we will give this, we will give that. It is clear — exchange rate differences and so on… A specific director has taken over an enterprise — go and work, push yourself. Some benefits, budget funds and so on. And you start to describe everything to me in a roundabout way and ask me to take the situation into account. I fear that the government may take such a course, if it has not already. That we must necessarily help someone, write something off… Perhaps someone does need help if it is in the interest of the state. But we must not allow this to happen,” Lukashenka said at the start of the meeting.
His dissatisfaction was triggered by another request to restructure the debts of cement plants.
“That is why I very often require conclusions from both the State Control Committee and the chairman of the National Bank on various issues. So that we have one line. Because the prime minister is new, but the president remains the same. And the president defines the line, and it must be followed. Yet time and again we see restructuring of debts of cement industry organisations. What does ‘debt restructuring’ mean? I understand what you are proposing, but I have always insisted: managers must be made to work. You come — you deliver,” he continued.
It should be noted that significant measures to restructure the debts of cement plants were taken in 2019. At that time, proposals were also presented by Turchyn, who then served as first deputy prime minister. In May 2019, a decree granted Belarusian Cement Plant, Krychevtsementnoshifer and Krasnoselskstroymaterialy deferrals and instalments on debts to the state budget. Repayment was not expected to begin before 2029. The decree also provided instalment plans for loans issued by Belarusbank and the Development Bank until December 31, 2024. It stipulated that interest on these loans would be paid from the state budget until the end of 2026, with enterprises settling accounts only in the next decade. Measures were also предусмотрены for loans from other banks, including instalments, deferrals and reduced rates.
It should be noted that these measures did not help the three cement plants return to profitability. In 2024, all of them reported net losses. For 2025, only Krychevtsementnoshifer has reported so far. Its revenue last year increased by 12.3% to nearly 487 million roubles, while net loss grew by 2.8% to 138.3 million roubles. Long-term liabilities on loans and borrowings decreased by 46.7% to 123.37 million roubles.
Lukashenka today recalled the provisions of the 2019 decree. According to him, around $1 billion was spent on modernising cement production in 2012–2013.
“And what, did the cement producers do this with their own money? Six years ago, a decision was made to restructure their debts — repayment was stretched until 2049. Six years have passed, and we are returning to this issue again. That is why such proposals concern me,” he said.
Now, according to him, it is proposed to convert the foreign currency debts of cement plants into Belarusian roubles and accelerate repayment from 2029 to 2026.
“Perhaps you are right. But I emphasise once again that I am concerned that today the managers of these cement plants sit calmly at the same table with the president and feel that they are right,” he said.
Lukashenka was told that the enterprises currently have no overdue debts.
“That is good. But it would be very good if everything were in order for them. A billion dollars was invested — go and work,” he responded.
Another issue concerns pricing: the cost of exported cement is up to 40% lower than on the domestic market.
“So you sell cement to your own people at almost double the price compared with exports. As a result, intermediaries engage in re-export, while our consumers are forced to buy imported low-quality products. And today we are going to subsidise this… Why are we not holding anyone accountable for this?” Lukashenka said.
He asked what the government had done to develop the cement industry; whether enterprises would be able to ensure stable and profitable operations if another debt restructuring were approved; whether the plants themselves would continue modernisation at the required pace; and why the domestic market cannot be supplied with sufficient cement.
The government’s proposal regarding the Svetlahorsk pulp and paper mill concerns funds from the national development fund. It is proposed to return funds transferred to the fund so the enterprise can service its loan.
“The government’s proposal is as follows: to return all funds transferred this year by the company to the national development fund so that they can be used to repay the loan.
In other words, they are supposed to pay a tax. We will not take it from them — instead, they will use this amount, which the enterprise should have paid as tax, to service their obligations.
At the same time, both the government and the State Control Committee agree that this amount is calculated not from real profit, but from so-called paper profit generated by positive exchange rate differences. In fact, there is no real cash,” Lukashenka said.
He demanded an explanation as to why the Svetlahorsk plant cannot meet its obligations independently.
“Is there no manager there? There is. What is he doing? We need to examine this fundamentally and give an assessment with appropriate conclusions,” Lukashenka said. “Why such a complex scheme as you propose? As the State Control Committee reports, the government has sufficient authority to make a decision. Why have you come to me?”
Finally, the meeting addressed the future of the Orsha meat processing enterprise.
“Previous attempts to rehabilitate this loss-making plant with the participation of representatives of the Vitsyebsk regional executive committee, the Orsha district executive committee, and regional associations involved in the development of agro-industrial enterprises have not yielded results. A new formula has been found. It was not you who found it — I agreed with the head of Dziarzhynsky that he would take over this area, it will become his plant,” Lukashenka said.
“All these issues — money, deferments, restructuring, budget support, help… This is the wrong approach. That is why it concerns me most. At the same time, I emphasise again: perhaps you are right, but the trend is bad. In the end, this results in underpayment of taxes to the budget. And the State Control Committee treats this calmly, although this is your responsibility. The budget is paramount. This must be stopped immediately,” Lukashenka concluded.
