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Industry of Belarus

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Potashprocessing plant No 2 ofBelaruskali,one of the biggest potash fertilizers producers in the world[1]
Minsk Tractor Works,a major tractor producer

Industryplays an important role in theeconomy of Belarus.In 2020, industry accounted for 25.5% of Belarusian GDP.[2]Share of manufacturing (excluding mining, energy and water supply) in Belarusian GDP was 21.3% in 2019.[3]United Nations Economic Commission for Europedescribed Belarus as having "a well-developed industrial sector and highly skilled workforce".[4]In 2020, 23.5% of the Belarusian workforce was employed in industry.[5]In 2019, total industrial production amounted to 115.7 billionBelarusian rubles(c. US$54 billion); in 2020, it rose to Br 116.5 billion (c. US$44–54 billion[a]).[6]Belarusian industry is export-oriented: in 2020, 61.2% of industrial output was exported.[6]The most important sector is food industry (29.9% share in total manufacturing output).[7]Other well-developed sectors of industry includechemical industry(oil refining,petrochemistry,manufacturing of fertilizers and other chemical goods),automotive industryand manufacturing of other machinery equipment.

Overview[edit]

Belarusian industry is generally state-owned. The government has stakes up to 100% in major industrial companies. In 2019, 2.1% of industrial organizations were directly owned by the state, employing 19% of industrial workers while producing 13.4% of industrial output. 3.1% of industrial organizations were formally private but with a state share (up to 100%), and employed 42.2% of workers in industry while producing 52.3% of industrial output. 88.8% of organizations active in industry were private without any state share (they employed 34.5% of workers in industry and produced 28.4% of industrial output), while 6% were foreign-owned enterprises (they employed 4.3% of workers in industry and produced 5.9% of industrial output).[8]State-owned industrial facilities are subordinated to different government bodies depending on the sector of industry: Ministry of industry for machinery and transportation,Belneftekhimstate concern for chemical industry,Bellesbumpromstate concern for forest industry and furniture production,Bellegpromstate concern for textile, clothing and shoe-making industry,Belgospischepromstate concern for food industry.

A few major companies make a huge contribution to the total industrial output. In 2019, the 10 largest manufacturing companies in Belarus accounted for 34.4% of total manufacturing output. Analogous share of the 50 biggest companies was 50.4%.[9]

The Belarusian state jealously guards its capital; the entry of allies such as Russia into the protected realm has proved difficult if not impossible, because the government in Minsk charges exorbitant prices for controlling stakes.[10]

Dominance of state-run major companies negatively affected small and medium business in industry. In 2019, medium, small and microorganizations employed 28.6% of the industrial workforce and produced 18.4% of industrial output. These organizations were most active in production of wood and paper products including printing (47.1% of output in this sector) and least active in food industry (13.9% of output in this sector), manufacturing of chemical products (13.2%) and petrochemistry (no companies).[11]

Some industrial facilities wereprivatizedin the 1990s, often by their workers. A number of factories (both financially successful and unsuccessful) were nationalized during the reign ofAlexander Lukashenko,usually without compensation:

Total net profit (after taxes) in industry was Br 6591.2 billion in 2019, rising from Br 3141.6 billion in 2018.[14]

Structure[edit]

In 2020, the share of manufacturing (Russian:обрабатывающая промышленность) in the total industrial output was 88.3%, the share of energy generation and supply was 8.9%, the share of water supply was 1.7%, and the share of mining industry was 1.1%.[7]

National statistical committeeBelstatuses OKED classification of industries[b]for statistical purposes. In 2020, eight sectors had at least 5% share in manufacturing:[7]

  • Food industry — 29.9%
  • Manufacturing of refined petroleum products — 13.1%
  • Chemicail industry — 9.1%
  • Manufacturing of plastic, rubber and other nonmetallic mineral products — 7.9%
  • Metallurgy and manufacturing of metal products (except transportation and equipment) — 7.3%
  • Manufacturing of machinery and equipment not included in other OKED groups[c]— 7.1%
  • Manufacturing of wood and paper products — 5.8%
  • Manufacturing of vehicles and transportation equipment — 5.1%

Other national sources, including the Belarusian encyclopedia, use different Soviet-designed classification of industries (fuel industry, chemical & petrochemical industry, machine building & metalworking industry, etc.).

International sources use different classification of industries.[15]

Food industry[edit]

Food industry (manufacturing of foodstuffs, drinks and tobacco products) is the biggest sector of Belarusian industry. In 2019, 1131 companies were active in the food industry, employing 138.2 thousand workers and generating Br 1182.2 million of net profit (after taxes).Return on salesin food industry was 8.4% in 2019. In 2019, share of dairy products in the total production in food industry was 28.6%, meat products — 24.2%,animal feed— 12.4%, drinks — 8%, oils and fats — 4.4%, confectionery — 4.3%. The biggest companies in the sector are situated in central and western Belarus.[16]

In 2020, Belarusian companies produced 1060.6 thousand tons of meat and edible by-products, 264.8 thousand tons of sausages, 2100 thousand tons of whole milk dairy products (in raw milk equivalent), 119.5 thousand tons of butter, 269.2 thousand tons of cheese,[d]69.5 thousand tons of chocolate and confectionery, 16.3 million decaliters of distilled beverages, 43 million decaliters of beer, 43.5 million decalters of soft drinks.[17]In 2019, 638.9 thousand tons of sugar and 430.9 thousand tons of salt was produced.[18]

4 major breweries produce nearly 90% of beer in Belarus: Krynica (Minsk, state-owned),Alivaria(Minsk, major stake owned byCarlsberg Group), Syabar-Heineken(Babruysk), Lidskae Piva (Lida, owned byOlvi).[19]Four major breweries in Minsk (Alivaria), Babruysk, Lida and Rečyca were bought by multinational corporations in the 2000s and early 2010s.[19]In the early 2000s, Krynica brewery in Minsk reached an agreement withBaltika Breweriesto transfer its controlling stake ti Baltika in exchange of investments, but later exited the deal unilaterally.[20]

Minsk Kristallis the largest distillery producing 4.81 million dal of vodka and similar beverages,[e]or c. 34% of vodka consumption in Belarus.[21]State-owned distilleries in Brest, Vitebsk, Gomel, Grodno,Klimavichyare other major market players producing more than 1 million dal of vodka and similar beverages.[21]Several private distilleries are active in the sectors, the biggest is Akvadiv (Maladziečna district) co-owned byVladimir Peftievand Minsk Kristall.[21]

It's estimated that Belarusian companies produce 2.4% of dairy products in the world.[22]In 2019, Belarus exported US$2384.9 million of dairy products and eggs, US$926 million of meat and its products, US$575 million of vegetables and fruits, US$201.5 million of beverages.[23]

In August 2023, Belarusian PMRoman Golovchenkointroduced Agriculture Minister Sergei Bartosh, highlighting strategic priorities like crop optimization and dairy modernization, emphasizing the significance of the sector. The introduction occurred recently, with focus on addressing challenges and revitalizing struggling agricultural enterprises.[24]

Cigarettes[edit]

According to Belarusian classification, manufacturing of cigarettes is a part of food industry.Grodno tobacco factoryis the largest producer of cigarettes in the country. In 2019, Alexander Lukashenko gave his associate[25][26][27]Aliaksei Aleksinan exclusive right to import tobacco products; Aleksin also started to construct new tobacco factory near Minsk.[28]Cigarettes produced in Belarus are oftensmuggled to other countriesdue to low excise rates in Belarus.

Chemical industry[edit]

Location of majorBelneftekhimcompanies. Note:Belaruskaliis not shown because it was excluded from Belneftekhim in 2014.

Belarus has several major Soviet-builtchemical factories.Belarusian statistical agency Belstat currently distinguishes two sectors of chemical industry — "manufacturing of coke and refined petroleum products" and "manufacturing of chemical products". The core of oil processing sector are two plants:Naftanrefinery in Novopolotsk andMozyr refinery.The main subsector of manufacturing of chemical products is production of fertilizers (76.5% of output in manufacturing of chemical products in 2019), other notable subsectors are manufacturing of synthetic fibers (6.3%), household chemicals (5.1%), varnishes and paints (4.9%).[29]

In 2020, Belarusian companies produced 3224.4 thousand tons of motor gasoline, 5825.6 thousand tons of diesel fuel, 8698 thousand tons of mineral and chemical fertilizers, 205.8 thousand tons of chemical fibers.[17]In 2019, 17,853 thousand tons of crude oil was processed.[30]Of 8553.4 thousand tons of fertilizers produced in 2019, 7348.2 thousand tons were potash fertilizers (Belaruskali), 988.2 thousand tons — nitrogen fertilizers (Grodno Azot), 217 thousand tons — phosphorus fertilizers (Gomel chemical plant). In 2019, Belarusian companies also produced 1100.8 thousand tons of ammonia, 1005.4 thousand tons of sulphuric acid and oleum, 741.4 thousand tons of polymers (in primary forms), 216.4 thousand tons of synthetic fibers, 68.8 thousand tons of detergents, 26.2 thousand tons of pesticides, 5.7 thousand tons of cosmetics for skin.[31]

In 2019, 38 companies were active in petroleum refining sector with 13.1 thousand workers and 492 companies were active in manufacturing of chemical products with 48.1 thousand workers. Total industrial production in petroleum refining sector amounted to Br 16,672 million (c. US$7.8 billion), in chemistry proper — Br 10,413 million (c. US$4.8 billion).[29]

The majority of big companies in the sector are operated by the government viaBelneftekhimstate enterprise subordinated to the Council of Ministers.

The biggest company isBelaruskali(100% state-owned[32]) which is one of the largestpotashproducers in the world,[1]its global market share is estimated at 16%.[22]Other major factories are:

  • Naftanoil refinery in Novopolotsk (99.83% state-owned[33])
  • Mozyr Oil Refinery(42.77% state-owned,[34]RussianRosneftowns large share)
  • Belshina,tire factory inBabruysk(100% state-owned[35])
  • Grodno Azot,nitrogen fertilizers factory inGrodno(99.97% state-owned[36])
  • Mogilevkhimvolokno, synthetic fibers factory inMMogilev(90.45% state-owned[37])
  • Khimvolokno, synthetic fibers factory in Grodno (currently — branch of Grodno Azot)
  • SvietlahorskKhimvolokno, synthetic fibers factory inSvietlahorsk(100% state-owned[38])
  • Polimir, plastic producer in Novopolotsk (currently — branch of Naftan)

In 2012, Alexander Lukashenko transferred defunct factory of protein-vitamin concentrates used in animal husbandry (Russian:Завод белково-витаминных концентратов) in Novopolotsk to Interservis company owned by his alleged associateMikalai Varabeito construct third oil refinery.[39]As of 2021, the refinery wasn't constructed.

In the late 2010s, a major reconstruction of Naftan oil refinery started. According to Belneftekhim's official site, over US$1 billion was invested in the reconstruction.[40]As of June 2021, modernization of Naftan hasn't been completed, total amount of investments was estimated at US$1.6 billion.[41]

Belarusian oil refineries are critically dependent from import of Russian oil viaDruzhba pipeline.In 2020, plans to diversificate oil imports using Lithuanian and Ukrainian ports were voiced again.[42]Oil disputes with Russia are a major political issue in bilaterial relations.[42]Belarus uses several small oil deposits (c. 1.5-1.7 million tons are produced every year) but the crude oil is exported via Druzhba pipeline. Notable deposits ofoil shalearen't used (as of 2021).

Belaruskali producespotashfertilizers using raw minerals (sylviniteandcarnallite) from local mines inPolesian Lowland,Grodno Azot uses large amounts of imported natural gas to produce nitrogen fertilizers, Gomel chemical plant imports raw minerals to produce phosphorus fertilizers and other chemical substances.

Export of refined petroleum and chemical products are major part of Belarusian foreign trade. In 2019, Belarus exported US$6259.7 million of petroleum, its products and related materials (18.99% of overall exportl; in 2018, it exceeded US$8 billion) and US$3259 million of fertilizers (9.89% of exports).[23]

Automotive industry and other machinery[edit]

Main article:Automotive industry in Belarus
Assembly line usingconveyor systemat Minsk Tractor Works

Automotive industry in Belarus emerged in the 1940s when theMinsk Automobile Plant(MAZ) was built. In the 1950s, production of haul trucks was moved from MAZ toBelAZfactory inZhodzina.In 1991,MZKTfactory split off from MAZ. In 1992–1993, MAZ started to produce buses andBelkommunmashfactory in Minsk started to producetrolleybuses.A number of factories producing automotive units are situated in Belarus (Baranavichy,Barysaw,Grodno,Minsk and other cities).[43]The biggest manufacturers of agricultural equipment areMinsk Tractor Works(MTZ, Minsk) andGomselmash(Gomel), other major factories are situated inLidaandBabruysk.[44]BelarusianBelAZheavy dump truck factory is estimated to be one of the biggest in the world.[22]

The largest plants are 100% state-owned: MTZ,[45]MAZ,[46]MZKT,[47]Gomselmash,[48]BelAZ.[49]Minsk city council has 99.45% share in Belkommunmash (BKM).[50]State-owned factories in the sector are economically independent forming holding companies with minor factories. The sector is overseed by the Ministry of industry of Belarus. Controlling stake ofAmkodorconstruction and forestry machinery manufacturer (former "Udarnik" factory in Minsk) is owned byAliaksandr Shakutsinwho was recognized as a person "who benefited most from the privatisation during Lukashenko's tenure as President" by theCouncil of the European Union.[51]

In 2020, 39.5 thousand tractors (for agriculture and forestry), 2.5 thousand metal-processing machines, 9.1 thousand trucks and 1349 buses (excluding trolleybuses) were produced.[17]In 2019, 1451 buses, 133 trolleybuses, 1062 special vehicles, 2464 cargo trailers and semi-trailers, 3428 motorcycles, 67.2 thousand bicycles, 62 passengerrailroad cars(includingmultiple unitsand trams), 2946 cargo railroad cars were manufactured.[52]Agricultural machines (including self-propelled vehicles) manufactured in 2019 included 640 combine harvesters (for cereals), 254 forage harvesters, 6270 agricultural trailers and semi-trailers.[53]

Belarus has two assemblers of cars fromSKDkits:BelGee(joint venture of Belarusian state-owned BelAZ and ChineseGeely) andUnison(private company using formerFord Unionworkshops). Number of cars produced:[52]

2015 2016 2017 2018 2019
8,681 10,348 3,856 11,122 20,584

Belarus has no specialised manufacturer oflight commercial vehicles(LCVs), but MAZ tried to enter the market twice. In 2010, MAZ-181 and 182 (based on Chinese copies of Toyota HiAce H100) were presented.[54]In 2019, MAZ presented MAZ-3650 LCV and MAZ-281 minibus which areSKD-assembledJAC Sunrise.[55]

The sole manufacturer of combustion engines isMinsk Motor Works(MMZ) but it specializes on production of diesel engines for tractors and heavy trucks. MAZ got the majority of its engines fromYaroslavl Motor Plantin Russia and from European producers. In the late 2010s, a joint venture with ChineseWeichai Powerwas established to assemble engines for MAZ in Belarus.[56]In 2019, 66.7 thousand engines were produced in Belarus.[52]

Belarus has two producers of rolling stock (railway cars) in Mogilev andAsipovichy.Swiss manufacturerStadler Railestablished assembly factory inFanipalnear Minsk to produce passenger trains.Lidadepot ofBelarusian Railwaymade a major overhaul ofChME3diesel electric locomotive giving it new nameTME1.Belkommunmashproduces trams.

Belarus has no established aerospace manufacturers, but during the Soviet era three aircraft repair plants were built in Belarus: No 558 inBaranavichy(repairs military aircraft; also produces UAVs), No 407 in Minsk (repairs civil aircraft), No 571 inBalbasavonearOrsha(repaired Tu-16 and Tu-22 bombers, recently changed its specialization to helicopters).

Military industry[edit]

Belarus inherited the well-developed military industry from the Soviet era. According to theStockholm International Peace Research Institute,Belarus was the twentieth largest exporter of major arms in a 5-year period of 2014–2018; its main clients wereVietnam,SudanandMyanmar.[57]Russiais another key client for theMAZandMZKTplants.[10]

Metallurgy and manufacturing of metal products[edit]

BMZ steel works

Byelorussian Steel Works(BMZ) inZhlobin(built in the 1980s by AustrianVoestalpinecompany) is the biggest factory in the sector in Belarus. Other significant factories are Mogilev ironworks andRechytsahardware plant. 1757 companies were active in metallurgy and manufacturing of metal products (except transportation and other machinery) in 2019, they employed 57.7 thousand workers and produced Br 7888.9 million (c. US$3.7 billion) of industrial output.[58]In the late 2010s, Austrian and German investors constructed Miory Steel (MMPZ) factory to produce rolled steel and tinplate inMioryand export much of its production.[1]

State-owned factories in Zhlobin, Mogilev and Rechytsa are parts of Belarusian metallurgical holding company.[1]

In 2019, Belarusian companies produced 2717.7 thousand tons of steel, 2502.8 of rolled steel, 227.2 thousand tons of steel pipes, 727 km of thermally insulated steel pipes, 392.7 thousand tons of cold drawn unalloyed steel wire, 89.2 thousand tons of steel cord.[59]

Belarus has two notable iron ore deposits, but they aren't in use (as of 2021).

Belarusian metallurgy is export-oriented, the country was among top 10 in the world by export orientation of steel industry.[1]In 2019, Belarus exported US$1222.8 million of iron and steel, US$939.9 million of general metal products (SITCsection 69), US$206 million of non-ferrous metals.[23]

Electrical appliances, communication products, electronics[edit]

Belarus has two major manufacturers of household appliances established in the Soviet Union —Horizont(originally a radio manufacturer later switched to production of TV sets and household appliances) andAtlant(former Minsk Refrigerator Works, later started to produce several other household appliances). Several lesser factories are operational: two Torgmash factories in Baranavichy and Grodno produce kitchen appliances (though their original specialization was appliances for catering), Brest radiotechnical plant produces electric stoves and heaters,[60]Amkodor-BelVAR (former Minsk instrumentation factory) produces kitchen appliances and climate control appliances.[61]A number of small private companies are also active in this sector of industry.

In 2019, Belarusian companies manufactured 815 thousand domestic refrigerators, 882 thousand microwave ovens, 392.9 thousand electric stoves, 168 thousand washing machines, 56 thousand electric meat grinders, 71 thousand electric juicers, 0.4 thousand electric irons.[62]

Minsk electrotechnical plant (METZ named afterV.I.Kozlov) manufactureselectrical transformersand electrical panels, factories in Mogilev,Luninetsand other cities produce electric motors for specific purposes, factories in Mazyr, Gomel, Vitebsk, Minsk andShchuchynproduce cables. In 2019, 533.3 thousand transformers, 545.3 thousand electric motors, 78.7 thousand km of optical cables, 7952 tons of insulated winding wires were produced.[62]

As of 2019, Belarus had two factories that produce accumulator batteries (1AK joint venture withExide Technologiesin Pinsk and Amkodor-Radian near Minsk). Third accumulator factory was built inBrestbut it faced with ecological protests.[63]In 2019, Belarusian companies manufactured 280 thousand accumulator batteries.[62]

The only big producer of light bulbs is Brest electric lamp plant. It produces bulbs under own Belsvet brand and also underGeneral ElectricandPhilipsinternational brands.[64]In 2019, 38 million bulbs (incandescent, discharge and other types of lamps/bulbs) were produced which was significantly less than 105 million bulbs in 2016.[62]

Electronics and computers
See also:Minsk family of computers

Minsk was one of the centres of development and manufacturing ofearly Soviet computers."Minsk" computers were manufactured mainly at Sergo Ordzhonikidze plant in Minsk (later —MPOVT;Minsk Production Group for Computing Machinery). In 1979, a printed circuit boards factory was commissioned at MPOVT. In the 1990s and 2000s, MPOVT switched to production of other production.[65]

Integralfactory in Minsk was built in the Soviet era to manufacture mid-levelintegrated circuitsand consumer electronics.[66]Several manufacturers of electronic products in other cities of Belarus are currently part of Integral holding company.

In 2019, 93 million diodes and transistors, and 1511 million integrated circuits were produced in Belarus.[67]

Forest industry[edit]

Major woodworking facilities
Pulp and paper mills

Processing of timber logged in abundant Belarusian forests is a well-developed sector of Belarusian industry. State-controlled factories in this sector are managed byBellesbumpromconcern.

In 2007, the government started the modernization of 9 majorwood processingfactories.[68]The total amount of investments exceeded US$1 billion.[68]However, it led to financial degradation of the modernized factories.[68]Lack of sales markets analysis and low technical level of some of the new equipment were named the main reasons of failed modernization in the sector.[69]It was also reported that the modernization was imposed by the Bellesbumprom while the managers of several factories were against it.[69]One of the main issues was a heavy (nearly two-fold) drop inparticle boardsandMDFprices.[70]In 2016, these factories were united in a single state-owned holding company.[70]In 2018, all nine modernized factories were unprofitable.[71]In 2019, only three of the modernized factories were profitable but even they got heavy debts (Gomeldrev's debts exceeded its net profit for more than 200 times).[68]

The biggest woodworking factory and wooden furniture producer isPinskdrevin Pinsk. It was privatized in the 1990s but nationalized in 2011.[12]9 major modernized factories with a controlling stake owned by government are:

  • Ivatsevichidrev (Ivatsevichy,97.89% state-owned, 997 workers in 2016[72])
  • Mostovdrev (Masty,99.99% state-owned, 1527 workers in 2020[73])
  • Rechitsadrev (Rechytsa,99.94% state-owned in 2020, 1186 workers in 2016[74])
  • Mogilevdrev (Mogilev)
  • Gomeldrev (Gomel)
  • Vitebskdrev (Vitebsk)
  • Borisovdrev (Barysaw)
  • FanDOK (Babruysk)
  • Mazyrski DOK (Mazyr)

Besides the modernization of state-ownedwood processingfactories, several new plants were built by foreign investors. AustrianKronospanbuilt factories inSmarhonand Mogilev, Lithuanian companies VMG and SBA built another factory in Mogilev, Polish, Estonian and Spanish companies also made investments in this sector.[75]

The biggest plant in paper industry is aSvietlahorskcellulose and cardboard plant (CKK). In the 2010s, the government took a US$654 million loan from China to expand Svietlahorsk CKK by constructing ableached pulpfacility.[76]Due to several problems the amount of investments increased to US$1 billion and the commissioning was postponed.[77]The modernization was criticized for financial and ecological issues.[77]In 2019, the contract with Chinese contractor company was terminated.[78]Ecologists claimed that the facility was built near the city despite a very dirty technology (using sulfur and chlorine) was chosen.[76]Locals claim that strong bad smell (presumably caused bymethanethiol) strarted to spread.[79]In 2020, the new facility was under commissioning.[80]In February 2021, the government introduced duties on import of some of the Svietlahorsk CKK production (presumably to help the company).[77]In June 2021, Svietlahorsk CKK made an additional issue of shares which is considered to be an indirect state support.[81]

Medium paper mills are located inDobrush,Shklow,Slonim,BarysawandChashniki.There are two wallpaper factories in Minsk and Gomel. State-owned Dobruš paper mill "Hero of Labour" was modernized in the 2010s by constructing new cardboard facility with Chinese loan. In 2018, the contract with Chinese construction company was terminated.[82]Originally it was planned to finish the construction in 2015, but it was postponed to 2017 and later to 2020. It was finally commissioned on 1 June 2021 but the factory had to take new loans to finish the commissioning.[83]Total amount of investments in this project was estimated at US$350 million.[84]

In 2019, Belarus exported US$728 million of wood products (excluding furniture), US$592 million of furniture, US$225 million of paper and paperboard and other products made of pulp.[23]Belarus is also a notable exporter of raw timber (US$686 million in 2019).[23]

Building materials[edit]

Cement factories in Belarus

During Soviet era, Belarus had only two cement plants and imported significant part of cement for construction from other republics of the USSR. Construction of the new cement plant inKastsyukovichystarted in the 1980s and was finished in the 1990s. Cement plants inKrychawand Kastsyukovichy are 100% state-owned. The plant inVawkavysk Districtwas partially privatized (50% as of 2002), but later share of the state was increased to 91%.[85]In 2012 and 2013, new production facilities built with Chinese financial and technical support were launched, but they were later found excessive due to changed market. Increased energy prices and high cost of production complicated the financial situation of the factories.[85]The government later provided massive financial aid to these factories to help them pay off their loans. It was also reported that the quality of Chinese cement-producing equipment was lower than expected.[86][87][88]This modernization was criticized for not taking into account any possible market changes and not analyzing the competitiveness of production. Despite the existence of plans to export the surplus of cement, it became unprofitable because it was more expensive than the cement produced in Russia.[89]

As of 2019, three cement factories got nearly US$900 million of government support. In 2019,Alexander Lukashenkodecreed that Krychaw cement plant has to repay debts in 2038–2049, Belarusian cement plant in Kastsyukovichy — in 2028–2038, Krasnoselskstroymaterialy in Vawkavysk district — in 2030–2037. They also received land tax and property tax exemptions until 2049, 2038 and 2037 respectively.[87]Despite this financial support, all three cement factories were unprofitable in 2019.[68]

In 2014, cement production reached it peak — 5617 thousand tons. In 2020, cement production was 4736 thousand tons.[17]

Mining[edit]

In Belarus, mining is considered as a part of industry,while globally it's usually considered as a part of theprimary sector of the economy.[citation needed]In 2019, 42 organizations were active. 58.1% of its production was crude oil (byBelorusneft).[90]Belaruskalipotash producer is considered as a part of chemical industry.

Foreign trade[edit]

Export of industrial goods[f]amounted to US$31,991 million in 2018 and US$30,871 million in 2019. In 2015–2019, from 57% to 63% of industrial output was exported every year.[14]

In 2021,National Statistical Committee of the Republic of Belarusstopped to publish reports about several aspects of foreign trade after EU, US, UK and other countries imposedsanctions on Belarus.[91]

Belarusian export by sectors of manufacturing in 2019:[92]

  • Refined petroleum products — US$5548 million
  • Chemical products (excluding refined petroleum products) — US$5052 million
  • Food industry — US$4963 million
  • Other machinery — US$2373 million
  • Basic metals and metal products — US$2295.7 million
  • Transport vehicles and equipment — US$1869 million
  • Rubber, plastics and other non-metallic products — US$1674.5 million
  • Products of wood and paper — US$1662 million
  • Textiles and clothes — US$1358 million
  • Electrical equipment — US$1030 million
  • Other sectors — less than US$1 billion in 2019

In 2019, according to Belstat, major destinations of Belarusian export of industrial production were Eastern Europe (US$19.8 billion), Northern Europe (US$4.16 billion), Western Europe (US$2.46 billion), Southern and Central Asia (US$1.78 billion).[93]Three main countries where industrial goods were exported in 2019 were Russia (41.5%, US$13.7 billion), Ukraine (12.6%, US$4.1 billion) and the United Kingdom (7%, US$2.3 billion), three more countries imported slightly more than US$1 billion: Germany, Poland and Lithuania.[94]Total export of industrial goods to the European Union amounted to US$7.8 billion in 2017, US$10.2 billion in 2018 and US$8.4 billion in 2019.[95]

Based onStandard International Trade Classification,major groups of Belarusian industrial export in 2019 were:[23]

  • Mineral fuels, lubricants and related materials — US$6821 million
  • Machinery and transport equipment — US$5436.5 million
  • Chemicals and related products (not included in other sections) — US$5225 million
  • Manufactured goods — US$5000 million
  • Food and live animals — US$4851 million
  • Crude materials, inedible, except fuels — US$1274 million
  • Miscellaneous manufactured articles — US$2346 million

Sanctions and circumvention[edit]

Main article:List of people and organizations sanctioned in relation to human rights violations in Belarus

A number of state-owned Belarusian factories were sanctioned by the EU, USA, UK, Canada and other countries following 2006, 2010, 2012 and 2020 elections. In 2020 and 2021, the EU imposed sanctions on several organizations, including major industrial companies:[96]

  • MAZ(automotive industry)
  • MZKT(automotive industry, defense)
  • BelAZ(automotive industry)
  • Agat-Electromechanical plant (defense)
  • 140th repair plant (defense)

On 24 June 2021, the EU introduced thesectoral sanctionsthat affected petroleum and fertilizer production, tobacco industry, supply of dual-purpose equipment, and access to the EU financial markets by the Belarusian government.[96]

In 2021, USA resumed sanctions on Belarusian chemical industry (previously suspended, but not cancelled):[96]

  • Belneftekhimconcern
    • Naftan(oil refinery)
    • Belshina(tire plant)
    • Grodno Azot(fertilizer plant)
    • Grodno Khimvolokno (synthetic fiber plant)
    • Lakokraska (chemical paints plant)
    • Polotsk-Steklovolokno (fiberglass plant)

USA also imposed sanctions onGrodno tobacco factorytogether with several non-industrial companies.[96]

In 2020—2021, Belarusian authorities made different efforts to circumvent theinternational sanctions.They also hid the statistics to prevent revealing the ways used to circumvent them and track their effects.[97][98]In particular, access to data regarding production and exports of the sanctioned goods became restricted to public.[97]In October 2021,Belstatstarted to hide data regarding exports of tractors and trucks.[99]Overall classified exports in January-August 2021 is estimated at USD 8.2 billion.[99]In September 2021, Alexander Lukashenko mentioned minister of industryPetr Parkhomchik[ru]and vice prime ministerYuri Nazarov (politician)[ru]as the people who organized the circumvention of sanctions.[100]He also accused several workers of state factories of gathering information about the ways used to circumvent the sanctions, and he threatened them with imprisonment.[100][101]13 workers fromGrodno Azotfertilizer factory,Naftanoil refinery,BMZsteel mill andBelarusian Railwaywere arrested by theBelarusian KGBin a possible connection with this statement. It was reported that some of them were accused of statetreason.[100]At least two of them were later released.[102]

In June 2021, Belorusneft was removed from subordination of Belneftekhim. This move was believed to be connected with the sanctions.[103]

See also[edit]

References[edit]

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  2. ^Беларусь в цифрах 2021: статистический сборник[Belarus in numbers, 2021: statistical collection]. P. 33.
  3. ^Промышленность Республики Беларусь, 2020: статистический сборник[Industry of the Republic of Belarus, 2020: statistical collection]. P. 14.
  4. ^Country profiles on housing and land management: Belarus.United Nations ECE, 2019. P. 20.
  5. ^Беларусь в цифрах 2021: статистический сборник[Belarus in numbers, 2021: statistical collection]. P. 15.
  6. ^abБеларусь в цифрах 2021: статистический сборник[Belarus in numbers, 2021: statistical collection]. P. 40.
  7. ^abcБеларусь в цифрах 2021: статистический сборник[Belarus in numbers, 2021: statistical collection]. P. 42.
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  11. ^Промышленность Республики Беларусь, 2020: статистический сборник[Industry of the Republic of Belarus, 2020: statistical collection]. P. 11.
  12. ^abcdefghijСамые громкие случаи национализации в Беларуси
  13. ^abcdefghijТОП-10 громких национализаций Беларуси
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  15. ^What Are The Biggest Industries In Belarus?
  16. ^Промышленность Республики Беларусь, 2020: статистический сборник[Industry of the Republic of Belarus, 2020: statistical collection]. P. 22.
  17. ^abcdManufacture of selected industrial products in physical terms
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  20. ^Декларация о намерениях
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  26. ^The Enablers: Bat’ka, Bucks and Bando
  27. ^Окружение Лукашенко отмывает деньги через Литву? Расследование
  28. ^Lukashenka makes tobacco kiosks owner an exclusive cigarettes importer
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  32. ^БЕЛАРУСЬКАЛИЙ ОАО
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  38. ^СВЕТЛОГОРСКХИМВОЛОКНО ОАО
  39. ^"Интерсервис" создаст на базе Новополоцкого БВК третий в Беларуси НПЗ
  40. ^МОДЕРНИЗАЦИЯ «НАФТАНА». ЗАВЕРШАЮЩАЯ ФАЗА
  41. ^Нафтан приступил к пусконаладочным операциям на объектах комплекса замедленного коксования
  42. ^abBelarus and Russian Oil: All Is Not as It Seems
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  45. ^ОАО "МТЗ"
  46. ^ОАО "МАЗ" - управляющая компания холдинга "БЕЛАВТОМАЗ"
  47. ^ОАО "МЗКТ"
  48. ^Гомсельмаш ОАО
  49. ^БелАЗ проводит допэмиссию акций второй раз за год
  50. ^ОАО "Управляющая компания холдинга" Белкоммунмаш "
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  54. ^«МАЗубрики»: новые белорусские малотоннажники представлены официально
  55. ^МАЗ 281 готов к продажам, объявлена цена. Но почему-то в Украине, а не в Беларуси
  56. ^Как с нуля запустить мощный завод по производству моторов – всего за 8 месяцев. История «МАЗ-Вейчай»
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  60. ^Производство товаров народного потребления
  61. ^ПРОДУКЦИЯ
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  63. ^Activists protesting against battery plant construction sentenced in Brest
  64. ^Мы говорим General Electric, Philips, Pila — подразумеваем Брестский электроламповый завод
  65. ^История
  66. ^Belarus Semiconductor Industry
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  70. ^abПосле модернизации белорусской деревообработке требуется реанимация
  71. ^Предприятия деревообработки получили за год 136,7 млн рублей чистого убытка
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  73. ^Годовой отчёт
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  76. ^abЧасть 1. История строительства завода
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  101. ^«Но посмотрите на своих сотрудников на предприятиях. У меня есть информация, что мерзавцев несколько там еще кое-где осталось, и они ставят перед собой цель проинформировать коллективный Запад о том, как Пархомчик с Назаровым пытаются обойти санкции. Шпионят фактически и сдают информацию туда... — Сядут, и надолго. Это я прямо говорю» = "But look on your employees at your enterprises. I have the information that several scoundrels are still there, and they set themselves the goal of informing the collective West about how Parkhomchik and Nazarov are trying to circumvent the sanctions. They actually spy and pass information there... They will go to prison for a long time. I am speaking directly."
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Comments[edit]

  1. ^Belarusian rubelto US dollar exchange rate varied in 2020 from 2.15 to 2.65.
  2. ^Russian:ОКЭД; Общегосударственный классификатор Республики Беларусь ОКРБ 005-2011 "Виды экономической деятельности"
  3. ^Manufacturing of tractors, bearings, agricultural equipment, machine tools, off-road haul trucks, non-domestic refrigerators, etc.
  4. ^Excluding processed (melted) cheese.
  5. ^According to Belarusian classification, this group of goods is called "vodka and liquor-vodka products".
  6. ^Not necessarily only Belarusian-produced goods.

External links[edit]

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