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4 May 2017

Call on Belarusian and Russian regions to set up more joint ventures

VITEBSK, 4 May (BelTA)- The economy of the joint enterprises, and joint commodity zones will guarantee a production growth of both Belarus and Russia, Chairman of the Vitebsk Oblast Executive Committee Nikolai Sherstnev said at a press conference with representatives of the regional and national mass media, BelTA has learned.

“We need am equal dialogue with governors of Russian regions in order to better understand each other. Otherwise, the opinions of this or that country, region, their policies and strategies, will be formed by the external forces for us. In personal conversations we naturally try to settle our differences and seek common ground. Thus, personal friendships are shaped. They can be used for the benefit of the regions and economies. And then, in the future, our dialogue will be not so much on the establishment of trade relations but joint ventures. You are well aware of the recurrent problems on the dairy and beef markets. This or that plant would have its deliveries suspended. But if we had the economy of joint Belarusian-Russian enterprises, and joint commodity zones, if we had joint farms, then would not have these meat or milk disputes. This would benefit the economies of both parties. This would then have a positive effect on the markets of gas energy, etc. This is a serious area of work,” Nikolai Sherstnev said.

The governor cited Astrakhan Oblast as an example of cooperation with Russian regions. Astrakhan lacks raw materials for the development of dairy industry. “They have built a milk processing plant but not launched it because there are no raw materials. When I went there on a visit we discussed this topic. On 12-13 May, our specialists will go to Astrakhan to see the plant and understand what needs to be done to get the plant started. We will provide our raw materials to the plant and thus will create a launching pad to get our products into the market of the entire region. We will have our people, warehouses, trading house, and so on there,” the Vitebsk governor said.

Similar forms of cooperation are being discussed with Volgograd Oblast, Bryansk Oblast and other regions, he said.

The governor stressed the importance of mutual visits to establish trade and economic contacts between enterprises to eliminate intermediaries in deliveries of Belarusian goods to the Russian market. “Our goods are in demand in these markets, but we often sell through intermediaries. Comparing prices on the Russian market and the factory gate price of our enterprises, we see the difference which stays in the pockets of these intermediaries. Sometimes I am accompanied by representatives of manufacturers on my visits to the Russian regions. They, too, see this and search for the forms of deliveries avoiding intermediaries. It is not easy: it is difficult to enter the mature market. But with the help of such meetings, we hope to remove some of such issues,” the governor said.

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