OREANDA-NEWS. June 24, 2011. Belarus and Saint Petersburg should switch from the manufacturing cooperation to the establishment of transnational corporations, and jointly produce and sell new products, Prime Minister of Belarus Mikhail Myasnikovich said at a session of the Belarus-Saint Petersburg Business Cooperation Council in St. Petersburg on 23 June.

Opening the meeting of the Council, St. Petersburg Governor Valentina Matvienko said that Belarus firmly ranks in the top among the trading partners of St. Petersburg. Belarusian products are widely represented on the market and their range is constantly expanding. Valentina Matviyenko praised the high quality of Belarusian clothes, food and vehicles. She emphasized that Belarus and St. Petersburg have accumulated rich experience of cooperation not only at the level of industrial cooperation between enterprises, but also at the level of scientific, technical and educational institutions.

The priority areas for further cooperation are industry, trade, energy, agriculture and housing. Special attention should be given to partnership in culture, Valentina Matviyenko said.

The Governor noted that Belarus has encountered a number of economic problems. “I believe that the Belarusian people will cope with the difficulties and the situation will get back on track. We are ready to lend a helping hand to our friends and partners,” Valentina Matviyenko said.

Valentina Matviyenko updated the meeting participants on the doing business environment in St. Petersburg, in particular, in motor-car construction, pharmaceutics and microelectronics. These sectors look most promising for the bilateral cooperation. According to St. Petersburg Governor, the two sides should support industrial cooperation and start opening joint ventures, produce high-tech products. She cited a lamp production project as a good example. Belarus and St. Petersburg might launch such production using St. Petersburg light emitting diodes. Valentina Matviyenko has also invited Belarusian companies to partake in the development of pharmaceutical clusters in St. Petersburg.

“I am confident that joint effort will bring us great results for the benefit of the two countries,” she said.

In turn, Prime Minister of Belarus Mikhail Myasnikovich emphasized the need to ramp up investment and innovation cooperation between Belarus and Saint Petersburg. In particular, he suggested that Saint Petersburg companies take part in the development of the pharmaceutical industry of Belarus. According to Mikhail Myasnikovich, Belarus’ import of pharmaceuticals is steadily growing, which necessitates an increase in import-substituting production, including via new production facilities.

According to Prime Minister, Belarus and Saint Petersburg would serve their own interests to unite efforts in IT, nano-technologies, light-emitting-diode devices and other fields. “We can also consider the establishment of a joint high-tech park and provide its resident companies with preferential terms,” he said.

The Belarusian head of Government added that the intellectual potential of the parties requires more coordinated and proactive efforts. “We need to consider the development of a program document in science and technology,” he said. Mikhail Myasnikovich noted that Belarus and Saint Petersburg should switch from the manufacturing cooperation to the establishment of transnational corporations, and jointly produce and sell new products.

Mikhail Myasnikovich attached particular importance to the establishment of production facilities manufacturing Belarusian machines in Saint Petersburg. “The incubation period of establishment of production of compact machines and trolleybuses is not over yet, the process needs a boost,” he said. The Prime Minister added that the parties considered a possibility to ship Belarusian express tramways to Saint Petersburg as well as new projects in agricultural processing.

Mikhail Myasnikovich emphasized that Belarus has plans to expand the amount and variety of foodstuffs exported to Saint Petersburg. However, this will require new forms of work. He believes the parties need to use the capacities of logistics centers in this field.

The Belarusian head of Government noted that Belarus has adopted a list of facilities slated for privatization and Saint Petersburg businessmen can participate in the process. “We invite business circles of Saint Petersburg to take part in the privatization program; we are open for most ambitious proposals,” Mikhail Myasnikovich said. In his view, other promising cooperation avenues include joint projects in the financial field, including leasing and insurance projects.

The Belarusian head of Government reminded that the program on economic, sci-tech and humanitarian cooperation between Belarus and Saint Petersburg is expiring this year. The Prime Minister suggested starting the elaboration of a new program document till 2012 and further in advance.

Saint Petersburg Governor Valentina Matviyenko upheld the initiative on the development of the comprehensive cooperation with Belarus, including in the sci-tech field. She noted that the trade between the parties is increasing. However, despite the growth trend, the trade and economic cooperation potential of Belarus and Saint Petersburg is not utilized in full, the Governor added.

Saint Petersburg is ready to buy new generation trolleybuses from Belarus, Valentina Matviyenko told reporters.

This pertains to the so-called hybrid trolleybuses that can travel without overhead wiring for some time. This will help reduce traffic jams. Besides, these trolleybuses are eco-friendly and have an improved design.

“We have come up with a program to introduce new types of passenger transport which will be more advanced and innovative. We have put forward these requirements to our Belarusian partners. Belarusian specialists are ready to start testing this type of vehicles as early as this year,” Valentina Matviyenko said.

She praised the machines produced in Belarus. “We eagerly purchase Belarusian trolleybuses as well as buses, tractors and other machines. They are competitive and have a good quality,” Valentina Matviyenko concluded.

The presence of Belarusian goods on the market of Saint Petersburg has become more tangible, Governor said.

She specified that the point here is about the deliveries of Belarusian food products. “They are ecologically clear and boast high quality. Petersburgers appreciate the quality of Belarusian goods,” she said.

Valentina Matviyenko also stressed the importance of the project to create a chain store system, Belorussky Gostinets, (the Belarusian Gift) in Saint Petersburg. The project will make it possible for Belarusian manufacturers to ship their products to Saint Petersburg without any mediators and markups. In her words, the city administration has already allocated plots for such stores. “The projects will be completed in two or three years,” she said.

Mikhail Myasnikovich, in turn, said that the Belarusian side is fully satisfied with the results of the Belarus-St Petersburg Business Cooperation Council session. “The bilateral trade is growing, and it gives us an impetus,” he said.

He added that the sides have agreed to consider a new program of social, economic and trade cooperation in autumn. A new program of sci-tech partnership will be drafted too. “It is vitally important for us to move to new forms of cooperation, we should develop the bilateral trade simultaneously with cooperation in investments and innovations, including the cooperation in producing LED-equipment,” said the Belarusian Prime Minister.

Answering questions from Russian journalists, Mikhail Myasnikovich also said that the situation on the currency market in Belarus will be back to normal within one to two months.

“All economic issues in Belarus will be settled with the month, or maximum two months. This applies to the currency market too,” said Mikhail Myasnikovich. The Prime Minister also noted that the USD 800m stabilization loan of the EurAsEC Anticrisis Fund will be used rationally, to balance out the situation in the currency market.

Belarus is not going to restrict import from the Customs Union member states, Belarusian Premier told media.

“There have been no administrative decisions regarding import restrictions or regulation of the export. We are for a balanced trade based on the supply and demand principles and competitive ability of goods and services,” Mikhail Myasnikovich said.

There are certain problems on the currency market of Belarus, but there is no economic crisis in the country, also said Prime Minister of Belarus as he paid a visit to the Saint Petersburg State University of Economics and Finance on 23 June.

On the whole, the economy is functioning, the companies keep working, and the export is on the rise, said the PM. “We have a real chance to reach a positive trade balance,” he said, adding that the stabilization loan from the EurAsEC will not be ‘thrown’ to exchange offices to keep the exchange rate. “We will do it smoothly and restore the trust in our national currency,” said the Prime Minister.

Speaking about prospects of cooperation with the IMF, Mikhail Myasnikovich said that an IMF mission will come to Belarus in early autumn to discuss the loan.

Speaking about prospect of partnership between Belarus and Saint Petersburg, Mikhail Myasnikovich said that the parties enjoy sustainable relations with a growing trade turnover. But the potential to boost the cooperation still exist. “A mere trading cooperation is a good thing, but it has no prospects. We should create transnational corporations and manufacture new goods. I think we have bright prospects in this area,” said the Prime Minister of Belarus.