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Vasil Shlyndzikau: Directors Do Not Want To Do Anything, Because Everything Is Punishable

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Vasil Shlyndzikau: Directors Do Not Want To Do Anything, Because Everything Is Punishable
VASIL SHLYNDZIKAU

A process of de-industrialization is taking place at a growing rate in Belarus.

Founder of the Amkodor concern Vasil Shlyndzikau stated that on air of the program “Five Minutes On The Main” on the ucpb.org web site.

According to him, “the Barysau Piano Factory does not work in Belarus, the Minsk Porcelain Factory, the Minsk Instrument (Lenin's) plant has practically died, as well as the Automated Lines Plant.” “A whole industry – the machine-tool manufacture – is close to ruin. For example, in 1994, the year when the government changed, we produced more than 5 million machines. And in 2015 – 1 100. No more than that,” – he said.

There are similar problems in the electronic industry: in 1994, Horizont produced 473 thousand TV sets, and last year – 22 thousand.

Vasil Shlyndzikau believes it’s due to the fact that the plants still belong to the state and have old organizational structure, which is unresponsive to the market and will never be able to function normally in the market conditions. In addition, he said, there is no possibility of financial recovery for these joint stock companies, except for the state aid. “Dividends are not paid to shareholders, as a rule. So, nobody is going to buy these shares,” – he said.

There have also been cases when the state took shares from the shareholders of profitable enterprises (Kommunarka, Keramin). “Well, what foreign investors will invest their hard earned money in such business?” – Vasil Shlyndzikau asks.

“And the final issue is the state monetary policy. Inflation, devaluation ... No one can withstand that, even the most reliable and strong companies. They simply can’t withstand. And then, instead of launching the mechanism of bankruptcy, people are thrown in jail. And zero leaders’ initiative roots here. Nobody wants to do anything, because everything is punishable,” – he stressed.

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