OREANDA-NEWS. April 22, 2008. The oil refineries of the Belneftekhim concern are fully provided with feed stock, First Deputy Prime Minister of Belarus Vladimir Semashko said at a session of the Council of Ministers. According to him, Russians restarted placing tolling contracts with the Belarusian oil refiners, reported the Official website www.government.by.

This enabled the latter to increase exports of oil products 2,8 times to \\$2,1 billion in January-February. Vladimir Semashko informed that over this period the profitability of Production Association Belaruskalii increased to 144%, Belarusian Potash Company (BPC) is extending its reach into new sales markets. Vladimir Semashko reminded the session that BPC concluded the contract to deliver potash fertiliser to China in 2008, with the price up from \\$250pt to \\$650 pt.

All in all, in January-February the companies of the concern reported net profit of Br677 billion. “There are all the reasons to believe that the concern will continue playing the stabilising role in the economy of Belarus,” Vladimir Semashko said.

The Ministry of Architecture and Construction of Belarus needs to sign a supplement of the contract with the Chinese company CITIC, First Vice-Premier of Belarus Vladimir Semashko said at a session. He said that the Chinese company will help Belarus increase the cement production capacities by 5,4m tonnes of cement per year. Technology lines of the capacity of 5,000 tonnes of clinker per day will be built at each of the three cement works in Belarus.

According to Vladimir Semashko, the Chinese side introduced an umbrella agreement signed in October 2007 as well as a range of proposals. Therefore there is a need to sign a supplement of the contract in the next two or three weeks. “Otherwise, the terms of implementation of the projects will be put in question,” he said.

In pursuance of the instruction of the president, a high-level working group was set up. It consists of the chiefs of the government bodies in charge of construction, investment, finance, law, economy and labour as well as seniour officials of banks, biggest construction companies of Belarus. A group has prepared and submitted to the government a plan of action and draft legal acts to boost the industry and simplify the formalities in the construction industry. These drafts cover the issues related to the tenders in the construction industry, management, financial guarantees, and construction in rural regions.

In January-February, the overall cost of imported oil was \\$1,2 billion higher for Belarus, that of gas almost \\$100 million, First Vice-Premier of Belarus Vladimir Semashko said.

He also said that other raw materials went up in price as well in 2008. “Yet we managed to compensate almost in full for the increase in prices by export of goods and a \\$340mn surplus of foreign trade in services,” Vladimir Semashko said.

In January-February, the deficit of foreign trade came to \\$20,6 million. Foreign trade in goods remains the most problematic area. Despite the fact that over the two months the export of goods increased by 78% and import by 55,1%, the deficit was equal to \\$361,3 million.

Vladimir Semashko analyzed the situation with Belarusian exports to some Asian countries. By and large Belarusian exports to Asia grew by 27,9% to \\$320,6 million. But it is extremely small considering the capacity of the Asian market, Vladimir Semashko said. Export to China reduced to \\$45,5 million. It is necessary to turn the situation around and double exports to China, he said. Exports to India went up 3,5 times, to Iran 1,6 times, but the exports to these countries remain small.

A great contribution was made by Belarusian Potash Company which boosted exports, including due to the growing prices for potash fertilisers, Production Association Gomselmash shows good export growth this year. Last year the export was equal to \\$98 million. This year the association signed \\$200 million worth of contracts. Last year Gomselmash sold 250 harvesters to foreign countries, this year it is set to export 1,500 units.

In 2007, Belarus invested more than \\$1046 million in projects abroad, First Vice Premier Vladimir Semashko told a session of the Council of Ministers of Belarus.

Investing in foreign countries is “an important goal to increase property abroad as a strategic factor of foreign trade expansion”, the First Vice Premier noted. Developed countries try to balance this process. So Belarus should follow suit and take a broader look at the problem from the point of view of inevstment, he noted.

The greatest number of funds (63,3%) was invested in non-CIS countries, 36,7% - in the CIS countries including 35.7% in Russia, Vladimir Semashko noted. The Industry Ministry of Belarus invested the greatest number of funds - \\$439,1 million. They were invested in 21 assembly productions and distribution network development. On the whole, Belarus abroad is represented by 249 facilities of commodity distribution network with Belarusian investments in 25 countries.

The First Deputy Prime Minister also noted that in 2007 Belarus attracted \\$5.4 billion foreign investments.