OREANDA-NEWS. March 05, 2010. Holding companies may be set up in Belarus to manufacture mineral fertilizers and oil products, Vladimir Sobol, Head of the Organizational Management Improvement Office of the Belarusian Economy Ministry, told media on 4 March.

In line with decree No 660 “Establishment and operation of holding companies in Belarus” of 28 December 2009 holding companies are supposed to stem from manufacturing corporations. The number includes Belaruskali that will be the managing company in a holding one. The holding company may include the Gomel chemicals plant, oblast agricultural chemistry enterprises, which specialize in buying and delivering fertilizers.

The Naftan-based holding company may include Grodno Azot, Mogilevkhimvolokno, Mineral Wax Plant (Minsk Oblast) and other manufacturers of petrochemical products.

Vladimir Sobol explained why the holding company Naftan would not include Polymir. “There was an early idea to unite all the oil processing companies, including Mozyr Oil Refinery, the Druzhba oil pipeline, Belorusneft, into the holding company. But we thought that it would be incorrect to gather so many assets into one holding company”.

He also noted that foreign companies can make their contributions to the authorized fund of Belarusian holding companies or buy shares in a holding company. A holding company allows foreign participants. A non-affiliated company, including a foreign one, can be the head company in a holding one. It is up to the owner to decide. In Belarus the government owns most of the holding companies. If the government believes the new company is worthy, it can become part of a holding one.

According to Vladimir Sobol, the creation of holding companies in Belarus will increase the interest of foreign investors in privatization, including privatization of oil processing enterprises.