Laguna furniture factory to move to Russia?

Entire plants leave Belarus due to decree No.99.

A reader of charter97.org reports that Laguna furniture factory can move from Baranavichy to Russia.

“People fear another wave of unemployment in the town of Baranavichy that already has faced problems with jobs. Residents say that Laguna factory wants to move to the Smolensk Oblast, Russia. Preparations for equipment dismounting are said to be in progress.

The furniture manufacturer tries to calm down workers and promises they will work on a rotating basis in Russia. People understand it will be so until the factory finds enough local workers in Russia.

Laguna is one of the biggest employers in Baranavichy and one of few factories that work stably.

The move can probably be explained with decree No.99 on a 90-day delay of VAT payment that hinders the work of big importers of raw materials and components. Companies have already spent their assets, and VAT in Belarus is higher than in Russia. The new rules do not allow domestic manufacturers to compete with Russian plants.

I know exactly that several private companies are going to do the same in the near future,” the reader writes.

Charter97.org failed to reach any of the factory's official representatives on the phone, but factory workers report about rumours that Laguna owners bought a furniture factory in Smolensk. It was done allegedly to cut expenses on transportation and deliveries of furniture to Russia. The staff at the Belarusian factory will be significantly reduced.

Decree No.99, which was signed on 26 February 2015, prolongs for 2015 a 90-day delay of VAT payments by importers. Businessmen warned officials that the step would have a number of negative consequences, first of all “washing out” capital assets of importers that would cause an increase in product costs, a fall in income tax revenues to the budget and, as a result, higher prices for end users.