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12 January 2023, 09:00

Russian economist opines on impact of Western sanctions on Belarus

An archive photo
An archive photo

MINSK, 12 January (BelTA) – In a new episode of the V Teme [On Point] project on BelTA's YouTube channel Director General of Cherepovets Foundry and Mechanical Plant, economist Vladimir Boglayev gave his take on how the Western sanctions benefited the Belarusian engineering industry.

“For the most part, machine-building enterprises in Russia, as well as in Belarus, relied on Russian technologies, with some exceptions. Each had its own specialization and was closely linked to Western suppliers. The largest manufacturers stopped the supply of diesel power plants for BelAZ. Taking into account that Western suppliers accounted for more than 95% of the deliveries to BelAZ, the company should have simply died within a year and a half. Three months have passed, and it turns out that the company sets records in terms of equipment supplies, because everything was replaced instantly,” Vladimir Boglayev said.

The expert added: “It was not only thanks to Russia. China also lent a helping hand in this regard. China is grateful to Western geopolitical partners for leaving the market. BelAZ held 30% of the world market of dump trucks from where Western partners withdrew. “I am not even talking about MAZ that redirected the bulk of its products to China a few years before the sanctions. And as soon as the deliveries became smooth and steady, the Germans immediately decided to free this market from themselves. Thus, MAZ did not lose anything.”

“The position of two tractor production companies in Belarus and Russia is interesting. A joint association called Progress has been created recently. It includes three largest agricultural machinery enterprises of the Union State. These are Kirov Plant, Gomselmash and Minsk Tractor Works. Although Kirov Plant is considered a purely Russian enterprise, up to 20% of the prime cost of its tractors is made of component parts coming from Belarus. All their needs are met by companies from Russia. If we take Minsk Tractor Works, from 40% to 57% of Belarusian tractors depending on a model, are made from Russian component parts and raw materials,” Vladimir Boglayev noted.

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