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13 May 2023, 16:31

Mogilev Oblast economy now adapted to sanctions, back on growth trajectory

Ruslan Strakhar
Ruslan Strakhar

MOGILEV, 13 May (BelTA) – In Q1 2023 the Mogilev Oblast economy demonstrated it has adapted to the pressure of sanctions. It is now on a trajectory of moderate recovery while individual industries are growing. Deputy Chairman of the Mogilev Oblast Executive Committee Ruslan Strakhar made the statement as he summed up results of the region's development in Q1 2023, BelTA has learned.

Ruslan Strakhar said: “Analyzing results of development of Mogilev Oblast in Q1 2023, one should note that as a whole the Mogilev Oblast economy has adapted to the pressure of sanctions and is now moving towards a trajectory of moderate recovery while individual industries have already started growing. Primarily thanks to the development of agribusiness complex. Civil engineering industry has been growing considerably this year. We see the recovery of the manufacturing sector. It has already reduced forced underemployment by several times. All the industrial enterprises are working in normal mode now.”

Western sanctions have affected the woodworking industry the most. “Woodworking industry enterprises have rethought their business practices and are now reaching for new target markets. Certainly, they will need more time for it. We see opportunities for increasing the export of our woodworking products primarily to the Asian market. New contracts are being signed. New collections for this market are being created,” the official said. “However, the situation is complicated. FanDOK Company has some positive dynamics. Production index has increased from 50% to 73%. The production of doors out of solid wood is on the rise. The enterprise now makes children's playgrounds. However, while external conditions are similar, the situation at Mogilevdrev remains complicated. There are issues that need to be addressed. Both enterprises will be closely monitored.”

Head of the Belarus President Administration Igor Sergeyenko wondered whether the situation at the Bobruisk-based woodworking enterprise had improved due to changes in the enterprise's CEO's style of work or due to a positive market situation. In response Ruslan Strakhar noted that a combination of these factors had been at play.

According to the deputy chairman of the Mogilev Oblast Executive Committee, the key task for the region now is to continue development thanks to investment activity. “It is investments and efforts to raise investments that open up opportunities for our development. It is true for the modernization of existing enterprises and the realization of new investment projects. It is good that the government has prepared an entire range of credit offers for the real sector of the economy,” he remarked. “The main purpose of this entire work is to ensure stable life of our citizens. The salary growth rate of 116.3% in effective prices is an indicator of it. It allowed us to raise monthly salaries by over 5%.”

The matter of raising investments is a complex one and affects all the spheres of the real sector of the economy, Ruslan Strakhar noted. “Certainly, first and foremost, we control the realization of the president's instruction to implement at least one investment project in every district. We have also formed an entire portfolio of import-substituting and integration projects with the Russian Federation and other projects in Mogilev Oblast. We now closely monitor about 86 investment projects. Schedules have been worked out for each of them and we check on their fulfillment every month,” he said. “We have special preferences in order to attract potential investors. The Development Bank of the Republic of Belarus and partner banks have worked out credit projects on profitable terms in Belarusian rubles. It allows enterprises to feel more confidence as they launch a new investment project.”

Head of the Belarus President Administration Igor Sergeyenko, Aide to the President, Inspector for Mogilev Oblast Leonid Martynyuk, representatives of the Economy Ministry, leading Belarusian holding companies, city and district administrations took part in the session of the Mogilev Oblast Executive Committee.

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