Barys Zhaliba: Government's plans on selling enterprises are unreal

The Belarusian authorities carry out a privatisation campaign only on paper.

Economist Barys Zhaliba spoke to charter97.org about the privatisation plans worth billions of dollars.

“It's not the first privatisation wave on paper. They make lists of enterprises and even put them up to tenders. Most of them are small and medium sized enterprises. Tenders and auctions show we don't have many local buyers, because the open Belarusian business is not rich. The sales process wasn't very active. As for big enterprises, there are not buyers or they are Russians and the parties cannot agree on the price because Belarus asks too much. It concerns Belaruskali, Naftan and MTS mobile operator. Belarus likes to round the sum: for example, one billion dollars for MTS, not less. I quote Lukashenka. Things aren't moving,” the expert noted.

The economist stresses that the current economic situation forced the authorities to make concessions, because they desperately need foreign currency.

“We see that they want 900 million for MTS now. They even say the price can be reduced. Is it real to gain $1.5 billion from selling enterprises? It is not real if the old approach is used again. If no one gives loans next year (today only Russia can offer us external aid and Belarus needs at least 3 billion), the process may become more active, prices for enterprises may begin to fall and so on. No one believes in 1.5 billion. We never had such big deals. The biggest deal was Beltransgaz,” the economist said.

We remind that the State Property Committee of Belarus makes a list of big enterprises with the state's stake, the privatisation of which will allow to attract billions of dollars to the state budget.