Lithuanian business invests in dictatorship

Investments of Lithuanian oligarchs in dictatorial Belarus reached a record high level.

On July 10, Vakarų Medienos Grupė (VMG) and SBA Group opened a Lt325mn industrial complex in Mahilou. It is one of the biggest direct investment of Lithuanians in Belarus.

VMG Industry and SBA Mebelain will produce veneer panels, laminated wood and parts for Ikea furniture and export furniture to Russia. The production capacities of VMG Industry will occupy 22 hectares, ru.DELFI.lt reports.

The company expects the plant to start working at full capacity in 2015 to produce goods at a sum of 240mn litas annually. The staff will be increased from 700 to 1000 by the end of the year.

The plant Mebelain cost SBA Group 55mn litas. The plant has 150 workers, the number that will be doubled by the end of the year.

VMG Chairman of the Board Sigitas Paulauskas admitted that it wasn't easy to start a project in Belarus – it was necessary to prove that Belarus needs furniture manufacturers.

The plant in Mahilou is the second one SBA opened outside Lithuania. The company has one plant in Russia.

The Belarusian ruler visited the plant during the opening ceremony of the industrial complex on July 9.

According to VMG Director General Viktoras Adomaitis, Lukashenka approved the project and promised to visit the opening ceremony 3 years ago.

The head of state paid a visit to Mahilou and expressed his opinion on the project a day before the opening.

“He said he didn't expect such a good result from us,” Adomaitis said. “We felt his strong support before. After the visit he said he would welcome new projects.”

Adomaitis mentioned that the company wants to continue investments in the East. He plans to visit Vitebsk in autumn.

“Lithuanian business has never hidden its pragmatic approach expressed, in this case, in the investment growth. It was inspired by Lukashenka's visit to the Economic Summit in Vilnius in 2009. One of the main lobbyists for the Belarusian ruler – Vladimir Romanov – said in his presence that he didn't care about democracy and he knew to whom he should talk to 'solve problems'. He is busy with it now both in our country and at home.

Let's not forget that Belarus has assets in Lithuania. We learnt recently, during Mikhail Miasnikovich's visit, that a part of the port of Klaipeda was bought. Information about the record high investments of Lithuanian business was not a surprise. We shouldn't underestimate the influence of business on the government in the neighbouring country.

On the other hand, Lukashenka said yesterday about anonymous swindlers among investors and said these words, as the media emphasise, to the Lithuanian ambassador. Lithuanians were again able to see how spontaneous and unpredictable their Belarusian partner is,” Raman Yakauleuski says.

The political observer thinks that the Belarusian authorities are interested in Lithuanian investments.

“The regime will not approve unprofitable projects. To say objectively, Lithuanian investments are good for Lukashenka. But there are no guarantees that the situation that Romanov met won't repeat for new investors,” he said.

Photo: DELFI (K.Čachovskio nuotr.)