Samand project collapsed

Belarus is set to cancel cooperation with Iranian company Iran Khodro which manufactures cars in Belarus in favour of Chinese investors.

It was said by First Deputy Prime Minister Uladzimir Syamashka, answering questions of MPs on Wednesday in Minsk, Interfax-Zapad informs.

“We are most likely to invite Chinese firms to these premises. We are negotiating with Chery and Faw firms. There is certain progress. I think that this year we are to solve this problem technically, and organize manufacturing,” Syamashka said.

First Deputy Prime Minister underlined that Belarus is extremely dissatisfied with operation the Belarusian-Iranian joint venture, Samand car assembling plant. “Within 5 years of operation only 1,000 cars have been manufactured and sold. However, they have been sold to ministries and other governmental agencies due to my pressure alone.” The plant’s models were outdated, while their prices were too high, he underlined.

As said by him, Iranian partner had been suggested to build coating and welding shops at the plant. Due to that the cost of the car would be much lower. Besides, Mr. Syamashka said that Belarus insisted on creation of a new model, which would be in demand then.

However, the stockholders failed to reach agreement at their meeting a month ago, Syamashka said.

First Deputy Prime Minister attracted attention to the fact that when forming a legal framework of the Single economic space of Belarus, Russia and Kazakhstan this plant was on the list of enterprises which have a right of starting with “component assembly and then reach maximum-localization”. In this way Belarus expected to have a competitive car, a product, which was to move inside the Customs union without restrictions.