MINSK, 18 August (BelTA) – The Belarusian government has prepared a draft decree providing a comprehensive solution for the financial recovery of the Amkodor holding company. The document was discussed during a meeting between Belarusian President Aleksandr Lukashenko and the Council of Ministers' leadership in Minsk on 18 August, BelTA learned.
One of the key items on the agenda was the stable operation of Amkodor, a company with a nearly 100-year history. Since the establishment in 1927, it has grown into Belarus' and the CIS region's largest manufacturer of road construction, forestry and agricultural machinery. “This is our most important and valuable plant,” the president emphasized. The quality of its equipment directly impacts storm damage relief efforts, road construction, urban cleanliness and even grain storage, as recent innovations have been introduced in this sector as well.
Yet the company is currently struggling. “The product range has been constantly expanding,” the president noted. “Many new models have been developed in recent years. This pursuit of diversification may well have contributed to the current financial challenges.”
“Since the previous owners openly admitted they could no longer repay borrowed funds (acknowledging they took on debts they cannot repay) we had no choice but to bring the company under state control,” Aleksandr Lukashenko continued. “We cannot simply abandon the personnel, thousands of people depend on this. Most importantly, we need these products ourselves.”
The government was tasked with developing a comprehensive financial recovery plan for Amkodor, with three key conditions: preserve production capacity, maintain the expertise and protect employees. “The workers are not to blame here. They are highly skilled professionals, competent.”
“This is not the time to scatter our efforts trying to meet every customer demand at once. We must focus on producing the most essential, high-volume equipment models, ensuring their quality and competitiveness,” the president stressed. While Amkodor could theoretically develop any new products, even space rockets, such ventures would need to be self-funded. Aleksandr Lukashenko made clear that borrowing state funds for these purposes without subsequent repayment would not be permitted.
Import substitution is another key issue raised by the president which is critical for the holding company's stable operation. “To break dependence on European component suppliers, we need domestic R&D and increased localization. We should aim for 100% self-sufficiency. Everything must be produced domestically or at least in cooperation with Russian partners,” he emphasized.
The government has submitted a draft decree to the head of state aimed at resolving the crisis at the Amkodor holding company. Commenting on the proposal, Aleksandr Lukashenko stressed that the document must be thoroughly justified and meticulously prepared to avoid repeated amendments or the need for additional state support in the near future.
“I've said it repeatedly: We must abandon this 'pants-holding' practice [propping up failing enterprises]. Budget funds are people's money and we have a lot of important areas for these investments," the president emphasized.
The head of state then demanded a progress report: “What concrete steps has the government and Amkodor's new management taken to address this situation? Are there any tangible improvements yet?”
As BelTA previously reported, in June of this year, Aleksandr Yefimov was appointed to run Amkodor. At the time of his appointment, Aleksandr Yefimov served as Industry Minister and had prior experience working at Amkodor which gave him in-depth knowledge of the company's operations and workforce dynamics.
When announcing the appointment Aleksandr Lukashenko said: “There are thousands of people over there and they are waiting for an answer. They want to know whether the state will abandon them or not. On my behalf you should tell them frankly (I will visit the company soon): we are not going to abandon anyone, our people work at the enterprise. And the fact that this enterprise couldn’t operate with a private owner, so to say, means a lot. This is why act,” Aleksandr Lukashenko said. “If you can recover the enterprise from its current state and make it a normal one, it will be good. But you should tell the worker collective that they shouldn’t hope that we will once again waste millions of rubles or dollars on the enterprise. You will have to recover primarily using your own resources and reserves.”
“You will have to seriously work on the markets in order to sell your products. Optimize and sort out manufacturing. Not the choice of the products you make but where you need to set up new manufacturing facilities, build something, and so on. You know what I am talking about,” the head of state said.
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