EU’s generous support to Belarusian oligarch’s business

Access to the garner of the EU is opened for Belarusian oligarchs in the Baltic states.

One of the richest Belarusians, Aleksei Aleksin (Aleksei Oleksin) is to receive considerable assistance from the EU to his fish processing business in Latvia, Lithuanian news source Lietuvos rytas writes. Besides, the Latvian side is to join financing of the new factory.

Until recently the business empire Mamas D in Latvia was owned by a magnate Yury Chyzh, often called Alyaksandr Lukashenka’s privy purse. In 2012 the EU imposed sanctions on him, which are still valid.

Aiming to avoid problems, the oligarch sold his business to Alyaksei Aleksin, who turned out to be a talented businessman. At the moment Mamas D ranks among the 200 largest Latvian companies according to its turnover.

By the way, the both business partners maintain friendly ties with the Belarusian dictator, however no sanctions had been slapped on Dzmitry Aleksin. Earlier he worked in the business empire of Yury Chyzh, that is why rumours are that the latter had not detached himself much from his former business in Latvia.

The official owners now are Alexei Aleksin’s son, Dzmitry, and his wife Ina, who own 40% of shares each.

The Latvian side to finance as well

A new production line is to be constructed at the new processing business thanks to the money from the EU support, and it is planned to process about 120 tons of salmon and trout over a year. The family of the oligarch is to receive $1.5 mln for this business.

Besides, the Latvian side is also to make its own contribution in development of the business. The state agency, the Service of agriculture support, is to partially finance the new factory as well.

It is not the first time when an oligarch and a close friend of Lukashenka is offered access to the funds of the EU assistance. Last year the EU assistance was granted to a brewery in Daugavpils, Latgales alus, which is owned by Aleksin as well.

However thus time the assistance is to be given to Mamas D company, which is already ranked among the 200 largest companies of Latvia. For example, in 2014 the turnover of the company grew by 40%, and revenues – by 25%.

Until 2012 Mamas D company was a part of Chyzh’s Triple concern. Triple concern was one of the largest exporters of fuel from Belarus to the EU. However, after the sanctions were imposed, Chyzh had to leave the Latvian business, and it was a golden ticket for his partner Aleksin to raise the business.

Bought a bank as well

The Belarusian magnate has already expanded his business in the EU countries. He owns companies which trade in oil products and process meat, breweries, business which produced biofuel. The business in Belarus is flourishing as well – several oil trading companies, restaurants, rest resorts, a construction business.

In the beginning of this year the businessman bought MTB bank, the largest private bank in Belarus. However, the most important part of his business empire is meat processing. He owns several large pig meat factories in Belarus. It is planned to open more of them in the nearest

While public of Maladzechna protests against construction of a new pig meat factory, the green light for it was given by the permission signed by Lukashenka to construct pig-breeding farms.

Changed name in Lithuania

By the way, there are some connections to Lithuania. Neonafta company is operating in Klaipeda, it is engaged in petrochemicals trade. Earlier the company, which worked in Latvia and Estonia, was owned by the Belarusian oligarch Chyzh.

Now the official owners of this company are Aleksin’s son, Dzmitry, and his wife Ina. But it looks as if the business in Lithuania has come to a standstill. The company is no longer a VAT payer in Lithuania.

Recently mass media of Belarus and Latvia had been writing that Neonafta left Latvia as well, however in March 2015 the successor of the business, Aleksin, said to Latvian business porta; Nozare.lv, that there were no sanctions for it, as representatives of his family, not Chyzh, own the company.

“We (Neonafta) have nothing to do with any sanctions. It is not true. We are interested in business only, and there is no politics here. We have already visited Latvian companies, and we see good prospects to development of business here,” Aleksin said to Latvian journalists.

By the way, in 2012 the Tax Inpsection of Lithuania carried out operational actions against Neonafta, summoned the head of the company to its Klaipeda department, however he failed to turn up.