OREANDA-NEWS. September 16, 2013. The plans to develop the Belarusian company OAO Motovelo must be fulfilled without any conditions. President of Belarus Alexander Lukashenko made the statement as he visited the enterprise.

“We must see progress every year: production figures and, most of all, money”, the Belarusian head of state stressed.

The President was informed about the company’s financial performance and development prospects. In particular, the report touched upon the fulfillment of presidential decree No. 354 of 26 July 2007 which authorized the sale of the state-owned package of shares to the investor – the Austrian company ATEC Holding GmbH. Keeping Motovelo in the same line of business and investing at least USD20 million in the company development in 2007-2012 were important conditions of the sale. In 2012 the company was supposed to raise the turnout of bicycles up to 500,000, with the output of motorbikes up to 30,000.

However, the President was informed that only part of the conditions has been fulfilled. In 2008-2012 the investor contributed over USD 20 million to the company’s authorized fund, but only a small part of it was spent on production development.

As far as the output figures specified by the business plan are concerned, the figures have been failed, Chairman of the Minsk City Council Nikolai Ladutko said. In 2013 Motovelo intends to make only 200,000 bicycles and nearly 12,000 motorbikes, willing to reach the planned output figures in 2017 at the earliest.

According to Head of the Belarus President Administration Andrei Kobyakov, the financial state of the company is not an ideal one, accounts receivable are high.

Alexander Lukashenko pointed out that not all premises of the company are used for manufacturing as it had been agreed, about a quarter of the premises is let out.

In addition to Motovelo’s performance the discussion touched upon other enterprises that have been set up in Belarus with the assistance of ATEC Holding GmbH. The number includes the enterprises that make a wide choice of glass jars and bottles –Yelizovo Glass Factory in Mogilev Oblast and Gomel Glass Containers Factory in Gomel Oblast. Both enterprises are experiencing certain financial difficulties, including with payments for loans.

Chairman of the supervisory board of the group of companies ATEC Alexander Muravyev attributed the current situation to a number of objective and subjective reasons of economic nature. He remarked that despite difficulties Motovelo and the other enterprises had managed to advance far in manufacturing modern quality products. AIST and MINSK brands are gaining their former glory and are becoming recognizable on foreign markets.

Alexander Muravyev assured the head of state of the ability to accomplish the outlined goals in the next few years and asked for support in paying out loans by installment. Alexander Lukashenko agreed to support the enterprise and suggested getting OAO Priorbank involved in it. “If your bank is a problem, okay, we will lend you a shoulder one more time, will give you an installment plan,” the President said. “[Chairman of the Board of Priorbank Sergei] Kostyuchenko will help. He is a private businessman and so are you. I think you will come to terms,” he added.

Alexander Lukashenko once again emphasized that he wanted to see progress in achieving the planned output: “We will see what we have as of 1 January 2014 and the progress down the road”.

First Vice premier of Belarus Vladimir Semashko informed about the current state and prospects of industry as a whole.

In his year, since August the output has increased a bit. By the end of the year it is expected to reach 98-99% of the previous year’s level.

Alexander Lukashenko instructed government officials to increase the inflow of foreign currency to the country.

“Your direct duty is to trade. What is the problem? We have our representatives (ambassadors) in 50 countries, even more. Take and sell potash fertilizers which, by the way, you have started to do today,” the President said. “Everyone should work to their level best. Today Deputy Foreign Ministers circle the globe together with representatives of Belarusian Potash Company seeking contacts in order to overcome the crisis,” Alexander Lukashenko remarked.

The President said that no artificial conditions, including the devaluation of the Belarusian ruble, will be created.

“There will be no devaluation of the Belarusian ruble to suit production sector needs,” the head of state stressed. He remarked that the increased demand for foreign currency had weakened the Belarusian ruble somewhat.

“The National Bank must not artificially slow down anything or waste gold and forex resources,” the President said. “Those are sacred! I cannot give you the reserves, which are meant to pay for three months of imported oil, gas, medications in a time of dire need,” Alexander Lukashenko told heads of production sector enterprises. “You make tractors, automobiles, and the rest. Go and sell them to earn foreign currency for your living,” he added.

“There will be no artificial devaluation to make your lives easier and to improve export,” the President emphasized.

“I cannot throw the country under the feet of five directors, who don’t do a thing these days,” he added.

The head of state examined the company’s manufacturing premises, was made familiar with the technological processes involved in manufacturing contemporary bicycles and motorbikes as well as the products OAO Motovelo makes. The President also talked to participants of the motor race Brest-Dushanbe, who were present. The race is dedicated to the 10th anniversary of the Collective Security Treaty Organization.