Alexander Subbotin: I dream that guests of the Vitebsk region, having visited it once, will return again
- Alexander Mikhailovich, you have been heading the Vitebsk region for a year now, and during this time you have become acquainted with many sectors of the northern region. In your opinion, which area of the economy has the most promising growth points?
- I consider the industrial complex to be the growth point of the real sector of our region's economy. Work continues to preserve and increase the competitiveness of industries traditional for the Dvina region - machine tool and instrument engineering, woodworking, and petrochemicals. There is great potential in electro- and bio-industry, pharmaceuticals, robotics, and the production of composite materials. Relevant projects are being implemented in these areas. Taking into account the educational and scientific potential, available technologies and equipment, the biotechnology cluster in Vitebsk, the science and technology park based at the "Izmeritel" plant in Novopolotsk, and the composite cluster in Polotsk can have good prospects.
There are also reserves in the agricultural sector. The Vitebsk region is considered a region of risky farming. Nevertheless, this year's record grain harvest of over 1 million tons indicates that if precise sowing technologies are followed, fertilizers are applied on time, and 100% effort is put into harvesting, the result will be there. At the same time, more intensive development in the agro-industrial complex can be achieved, including through deeper processing of local raw materials.
The region's popularity can also be enhanced by developing the tourism industry, which will attract not only foreign guests but also serious investors. In the future, we plan to create a unified tourist cluster in the region.
- If six months ago we were talking about enterprises' losses after the introduction of Western economic sanctions, now we increasingly hear information about mastering previously unfamiliar sales markets. How have the new economic conditions affected the work of the region's enterprises?
- The region's organizations supply goods to 77 countries. Compared to 2021, this number has decreased, but not critically – by four countries. Vitebsk region enterprises export more than 1.5 thousand types of products. About a thousand economic entities of the region are involved in foreign economic activities. The share of supplies to so-called far-arc countries has increased by a third. Markets in Tunisia, Ethiopia, Iraq, Myanmar, the Dominican Republic, and North Macedonia have been mastered. Sales to Iran, the United Arab Emirates, and Saudi Arabia have significantly increased, as has exports to Israel, Georgia, and Mongolia. Having reoriented export flows from European and Ukrainian destinations, the region's enterprises shipped $42 million worth of products to China in nine months, which is almost three times more than last year. The share of food and agricultural raw materials in the export of goods from the northern region to the PRC was almost 50%.
Working in new markets indicates the demand for our goods, the volume of which can be further increased by addressing issues of raw material processing depth, increasing the production of milk, meat, grain, peat, flax, and rapeseed, and certifying products in accordance with the standards in force in the new markets. For example, for product supplies to the Chinese market, the Verkhnedvinsk butter and cheese factory and UP "Verkhniy Lug," Polotsk Dairy Plant, Postavy Dairy Plant, Glubokoye MCC, Vitebsk Meat Processing Plant, Vitebsk Broiler Poultry Farm, and others have already been certified. Documents are being reviewed for organizing meat product supplies to the PRC by Glubokoye Meat Processing Plant and Orsha MCC.
- What are the most attractive Russian regions and countries for our producers of goods and services that you can name? What international contacts has the Vitebsk region maintained for a long time, and what new ones have appeared on the horizon since the beginning of the year?
- Traditionally, the Vitebsk region cooperates with almost all federal districts of the Russian Federation. For the first nine months of this year, the foreign trade turnover amounted to $3.5 billion. Products worth $988 million were exported, which is 14.3% higher than in 2021. More than 65% of goods are exported to the regions of the Central Federal District (main ones being Moscow, Moscow Oblast, and Smolensk Oblast), 12% to the Northwestern Federal District (Saint Petersburg, Leningrad Oblast, and Pskov Oblast), and 8% to the Volga Federal District (Nizhny Novgorod Oblast, Samara Oblast, and the Republic of Tatarstan).
In terms of geographical diversification, supplies to the Chechen Republic have increased more than 20-fold, to the Republic of Sakha 11.5-fold, and to Altai and Irkutsk Oblast 8.5-fold. New markets have been developed in the Republic of Ingushetia, Khakassia, and Sakhalin Oblast. The demand for goods from the Vitebsk region is high, as they meet key consumer requirements – price and quality. Consequently, increasing the competitiveness of our producers' products is the main requirement of the economy.
- Speaking about the industry of the Vitebsk region, it is necessary to consider not only large producers but also representatives of small and medium-sized businesses. How interested is the region in developing this sector of the economy? What projects for small business representatives did the regional investment project competition help to identify? Do government representatives help manufacturers of small forms of ownership to establish themselves in domestic and foreign markets?
- Small and medium-sized enterprises account for about 11% of the total industrial output. Undoubtedly, the authorities are trying to do everything to make businesses feel that their bold decisions are supported. Based on the results of investment project competitions held annually in the region, small businesses receive financial support, in particular, they are reimbursed for part of the interest on bank loans. Assistance is provided to promote products manufactured by small enterprises in domestic and foreign markets. For example, enterprises are reimbursed for expenses related to participation in exhibition and fair events held both in Belarus and abroad. In total, this year small businesses have received such support in the amount exceeding Br240 thousand.
In the regional investment project competition, industrial and agricultural organizations traditionally present about 30% of their innovative ideas and developments. These include, for example, the production of springs for agricultural machinery, animal feed and veterinary drugs, woodworking products, garment products, etc. The largest projects include the construction of a plant for the production of veterinary drugs in Vitebsk and the acquisition of equipment for concrete production in Orsha.
- The work of agro-industrial associations in the Vitebsk region is under the close attention of the head of state. He has also set you the task of showing the results of Decree No. 70 on the development of the region's agro-industrial complex. Have the set goals been achieved? Are there any areas that need to be worked on in depth?
- In the Vitebsk region, six agro-industrial associations (APAs) operate under decree No. 70, comprising 136 organizations, including 11 industrial, 113 agricultural, 3 trade, and 9 service organizations. APAs account for half of the region's gross agricultural output and 20% of its industrial production. 63% of the employees in the region's agro-industrial complex work at these enterprises. Undoubtedly, significant work has been done to improve the effectiveness of the decree's implementation. Thanks to state support, major facilities have been built and commissioned, such as a dairy farm in the Orsha district, a pig breeding complex (Liozno district), and slaughter and processing facilities for pigs and cattle (Orsha). The construction of a pig breeding complex with a feed mill near the village of Goryany in the Orsha district is nearing completion, with commissioning works underway. The total project cost is 41 million euros.
This year, Br163 million has been invested in the development of APAs, including Br26 million for the modernization of processing enterprises and Br136 million for strengthening the material and technical base of agricultural organizations. A profit of Br88 million was generated from sales with a sales profitability of 4.6%, whereas last year there was a loss of Br8 million and sales profitability dropped to -0.5%. Over 10 months of this year, APAs produced industrial goods worth approximately Br1.25 billion. Export deliveries from APA enterprises amounted to $181 million. The largest share in foreign supplies is accounted for by cheese (41%), butter (12%), whole milk powder (11%), and skimmed milk powder (9%). The export geography includes 22 countries. Key sales markets remain Russia (80% share) and the People's Republic of China (about 10%).
Nevertheless, there is still work to be done. This includes stocking cattle, increasing fodder procurement volumes, creating new and exclusive product types, and optimizing costs.
- For many enterprises in the Vitebsk region, the pressing issue is the import substitution of components. How is this problem being addressed?
- Today, more than ever, import substitution issues are acute for all organizations in the region, and primarily for the manufacturing sector. This year, 76 enterprises of the region are participating in the import substitution program, including 54 small and medium-sized businesses. For nine months, import-substituting products worth $737.5 million have been produced. The conditional savings of foreign currency due to the supply of products to the domestic market amounted to $91.6 million.
Together with the Russian side, an algorithm for replacing products of Western companies that have left the markets of Belarus and the Union State by domestic manufacturers has been determined and is being implemented. As for the operational substitution of critical imports, agreements have already been reached on increasing mutual supplies. Our enterprises have mastered the production of electromechanical devices, components for combines, small-sized measuring transformers, have developed a universal high-precision cylindrical grinding machine, and a machine with robotic control and machines with higher precision metal processing are under development. There are many more examples.
- Vitebsk region has long been famous for flax. Is the demand for Belarusian flax high abroad? Do flax enterprises of the Vitebsk region present their products on the world market?
- Yes, flax has always been a calling card not only for the Vitebsk region but also for Belarus. Our region has six flax processing plants and the largest and only enterprise in the republic for processing flax and producing products from it - the Orsha Flax Mill. To preserve the export of domestic flax products, increase its competitiveness in the main markets in terms of quality and price, and increase the processing volumes of domestic flax fiber, the enterprise has been carrying out phased comprehensive modernization since 2007. The third stage is being completed: it is planned to organize 60 equipped sewing workplaces at the former art crafts factory in Orsha. Today, the flax mill operates effectively, with an increase in production volumes. The geography of its product supplies extends to more than 30 countries.
- The social sphere in our country always impresses foreign guests. Hospitals, schools, kindergartens, universities, sports facilities - all this is created for people. What has already been done and what other social facilities will appear in the region in the coming years?
- The social sphere is a kind of visiting card not only for a specific region but for the entire country. Accessible education, healthcare, cultural leisure, and enlightenment - all this speaks of the care of authorities at any level for the basic needs of Belarusians. We have many reasons not so much for pride as for joy when new kindergartens, schools, hospitals, and cultural facilities are opened. All this, as you rightly noted, is done for people, especially for children who will grow up in a well-maintained country, enjoying everything that has been created today.
A large-scale modernization has been carried out in the healthcare sector of Vitebsk region, affecting all areas. The fight for every life and early diagnosis are the priorities that the President has set for the country's healthcare. New MRI rooms opened this year in Polotsk and Orsha, and computed tomography scanners operating in inter-district centers will help to significantly increase the accessibility of high-tech diagnostics for the population of remote areas and villages. Doctors will be able to detect serious diseases at an early stage in the primary care setting and treat them effectively. This is a new level of medicine that regional healthcare is aiming for.
This year, the Vitebsk Regional Clinical Specialized Center began receiving patients after its modernization was completed. And we are not going to stop there; we have already started a project to reconstruct the Regional Clinical Hospital. Pre-project documentation has been developed, according to which the total cost of the work will exceed Br740 million. The start of construction is planned for 2023. Next year, the reconstruction and modernization of the complex of buildings of the Regional Clinical Infectious Diseases Hospital will resume. The construction of a polyclinic in the new microdistrict of Orsha is underway, and its commissioning is also planned for 2023. Next year, repairs will be carried out at the Verkhnedvinsk Central Regional Hospital, the operating and resuscitation unit of the Liozno Central Regional Hospital, the polyclinic of the Lepel Central Regional Hospital, and others.
We are also not forgetting about culture, where the material and technical base is being strengthened. Thus, after major repairs, the Museum of Folk Glory named after Hero of the Soviet Union V.E. Lobanok in Ushachi has been opened, and a memorial museum of Hero of the Soviet Union K.S. Zaslonov has been built in Orsha. After major repairs, the Palace of Culture in Barani, Orsha District, has been put into operation. In Vitebsk, the reconstruction of the former быт (household services) building into a children's art school in the Rubа microdistrict has been completed. The restoration of a 19th-century architectural monument as a local history museum (the former wine-cleansing warehouse building) in Lepel, the repair of the Rossony Museum of Military Comradeship, major repairs with modernization of the building of the Belarusian Theater "Lyalka" are ongoing, and the phased restoration of the Museum of Military Glory building, a branch of the National Polotsk Historical and Cultural Museum-Reserve, is underway. Cultural objects of national significance have been included in the state investment program. These include the Transfiguration Church in Polotsk, the repair and restoration of which will be completed in 2024, and the Vitebsk Concert Hall, which will be transformed by 2025.
To train sports reserves and elite athletes, promote a healthy lifestyle, and foster the mass development of physical culture among all population categories, sports facilities are annually constructed and improved in the region. This year, the Glubokoye District Sports and Recreation Center was reconstructed. In the coming years, plans include the construction of a multifunctional sports complex at the intersection of General Ivanovsky and Bagratyan streets in Vitebsk, the reconstruction of a bath and laundry complex into a Sports and Recreation Center in Sharkovshchina, the construction of a Sports and Recreation Center in the "Airport" microdistrict in Polotsk, and much more.
- The Beshenkovichi District has come under the close attention of the regional authorities, where modernization of the republican highway is planned. How large-scale will this project be, when will it be implemented, and what else, besides roads, might appear in the district center?
- First of all, it should be noted that Beshenkovichi will become the capital of the regional "Dazhynki" (harvest festival) in 2024. In preparation for the holiday of agricultural workers, current repairs of several sections of the district's republican highways are planned, including the replacement of several roadside shelters at bus stops. This concerns the roads. For the main agrarian holiday, modernization and repair of about 100 objects significant for the settlement are usually carried out, primarily social ones, the list of which is determined by the district authorities. It is also planned to replace about 10 km of power transmission lines.
The Beshenkovichi District has an advantageous geographical location. Five republican highways with a total length of over 152 km pass through its territory. Within the boundaries of Beshenkovichi, a section of the M3 republican highway runs. This should be used for the benefit of the district's development, as good roads improve transport links and attract visitors to the district, including from abroad. This is particularly relevant now, as the country's logistics are shifting focus from West to East, primarily to Russia.
Regarding other facilities in the district, it is planned to construct a 4 km gas pipeline in the agro-town of Sinitsy in 2023. In total, over 150 km of gas networks are operated in the district. Natural gas has been supplied to the district center and 13 other rural settlements, five of which are agro-towns. Consumers of blue fuel include not only hundreds of individual houses but also dairy farms, grain drying complexes, social service enterprises, and many other facilities. This indicates an improvement in the comfort of life and work for the district's residents and creates favorable conditions for energy-efficient production in rural areas.
- In one of your speeches, you noted that agro-towns should not be inferior to large cities in terms of comfort and living standards. Gasification is being carried out in such settlements, and socially significant facilities are appearing. What else is being done for their development besides strengthening the housing and social spheres? And what will happen to villages and hamlets that are not included in the agro-town development program?
- As I have already noted using the example of Beshenkovichi District, the development of rural settlements requires basic conditions: natural gas, clean water, and uninterrupted operation of the energy system. Currently, Vitebsk region has a complex, branched, and technically equipped gas utility. Blue fuel has reached enterprises and heating boilers, as well as apartments of townspeople and rural workers. Approximately 75% of the region's housing stock is supplied with natural gas. In total, residents of over 380,000 apartments in more than 430 settlements use it. In 2023, it is planned to construct about 31 km of gas pipelines in the agro-towns of Dunilovichi and Parizh in Postavy District, the settlement of Zvezdnaya in Orsha District, and the settlement of Chernitsy in Liozno District. It is also important that the power grids can ensure the increased electricity consumption in the region, including villages, and that citizens can use electricity for heating, water heating, and cooking.
The problem of dying villages is relevant not only for the northern region but for all of Belarus. The process of urbanization has gained momentum in recent years, and villagers do not want to stay in their small homeland. This is a broad range of issues that need to be addressed in rural areas. It includes the creation of enterprises, social infrastructure, decent wages, and leisure organization.
- An important issue that concerns the heads of enterprises and organizations is personnel. In addition to training and retention of specialists, the atmosphere in the teams and the coherence of work are also important. Who should be held accountable when there is discord in the working "family"?
- It is no secret that any successful modern enterprise is, first and foremost, professional staff. No matter how modern and high-tech the equipment is, the specialist who can competently operate it always stands at the forefront. When resolving personnel issues, it is important for us not just to fill a vacancy, but to find a candidate who, in their position, will contribute to the team's achievement of its goals.
In my opinion, when working with both young specialists and established professionals, the personal qualities of a candidate play no less role than the knowledge gained in the classroom. Most successful enterprises and organizations have a well-established system of training, mentoring, and professional growth. An initiative-taking person with bright eyes will be taught all the intricacies of the profession. Yes, mistakes on this path are inevitable, but a positive outcome is almost guaranteed. The leader is always responsible for everything that happens within the work collective. In general, I do not like to talk about a leadership position as an end in itself, the pinnacle of the process. People lead for results, and the entire team works for this result. If an unhealthy situation arises in the team, the leader is obliged to make appropriate management decisions. Corporate events and team building are important for a favorable atmosphere in the team, but first and foremost, the leader must establish discipline - the head of state has repeatedly emphasized this.
- Vitebsk region is a land of rivers and lakes. What is the situation with a direction such as fish farming? The region can earn money from this, and we can fully provide Belarusians with fish. There is demand, considering the trend for a healthy lifestyle and diverse nutrition.
- Yes, undoubtedly, Vitebsk region is a land of rivers and lakes. In terms of the number and area of lakes, our region ranks first in Belarus. There are about 2.3 thousand lakes here (the largest are Osvyanskoye, Lukomskoye, Drivyaty, Neshchardo, Snudy) and more than 600 rivers (Western Dvina, Dnieper, Drysa, Obol, Disna, and others). The development of fisheries in the region is carried out in two main directions - breeding and growing fish in artificial conditions and conducting fishing in fishing grounds. For such activities, 53 lakes, 35 ponds, two reservoirs, two flooded quarries, and one section of a river have been leased. Since the beginning of the year, almost 453 tons of fish caught in natural and artificial reservoirs, worth over Br2 million, have been sold. The region hosts one of the largest pond farms - OJSC "Rybkhoz "Novinki", which has sold about 372 tons of commercial fish since the beginning of the year, which is significantly higher than in 2021, when 216.8 tons were sold.
We are also considering the issue of leasing one lake to each forestry enterprise. This will ensure an increase in fish catch and create favorable conditions for people, and additional places for recreation and fishing will appear. There is definitely a demand for fish, so we will continue to develop this area.
- Agroecotourism is the most promising and rapidly developing type of tourism. However, as one can read in social networks, recreation in agro-ecotels on the beautiful lakes of Vitebsk region is not affordable for all Belarusians, as the prices are biting. What is being done to make authentic Belarusian recreation more attractive, including in terms of cost, and primarily for compatriots?
- In the Vitebsk region, agroecotourism is one of the most promising and rapidly developing types of tourism, considered a dynamically growing component of the national economy. As of January 1, 2022, 732 agroecotourism entities were registered in the region. What makes agroecotourism good? The fact that each tourist chooses the conditions in which they want to live – in a rural house or in elite-class conditions, and what type of recreation they prefer – active, passive, educational, or health-improving.
In the first half of the year, a monitoring of the activities of agroecotourism entities in the Vitebsk region was carried out: the number of rooms, the cost per person per day, the number of types of services provided, etc., were determined. It turned out that the average cost for one person for accommodation only in an agroecotourism estate ranged from Br10 to Br20, depending on the comfort level. The cost increases due to the purchase of additional services, such as meals, excursions, a bathhouse, and the like. There are also individual entities in this field that have turned their activities into organizing hotel and restaurant businesses. The new decree of the President "On the Development of Agrotourism," which comes into force on January 1, 2023, will put everything in its place. Agrotourism should be aimed at preserving Belarusian authenticity, traditions, and color, to show guests and residents of the country our wealth and hospitality.
- As a native of the Vitebsk region, you are particularly attached to this land. What would you recommend for foreign guests to see in the northern region, if they had the opportunity to spend more than one day here?
- The nature of the Vitebsk region, impressive in its beauty and diversity, offers favorable conditions for a memorable vacation. One of the most striking locations for a tourist could be the Berezinsky Biosphere Reserve and the Braslav Lakes National Park. The northern region has a rich history and culture and is the center of the origin of Belarusian statehood. In terms of historical and cultural values, the region ranks second in the republic. For cultural and educational recreation, it is worth visiting Polotsk.
Tens of thousands of cultural and mass events are held annually in the Vitebsk region. One of the most significant is the International Festival of Arts "Slavianski Bazaar in Vitebsk". Among the popular events are the International Festival of Modern Choreography IFMC and the I.I. Sollertinsky Music Festival in Vitebsk, the international festivals and celebrations "Braslavskie Zarnitsy", "Zviniats' Tsymbaly i Harmonik" in Postavy, "Dnyaproŭskiya Hlasy u Dubroŭne", "Cherry Festival" in Hlybokaye, etc.
The list of attractive tourist sites can be endless. Each district of the Vitebsk region has its own centers of attraction. We would like the Vitebsk region to be recognized not only through news stories. It is important to personally feel our openness, hospitality, atmosphere of joy and friendliness. I and many of my colleagues dream that guests of the region, having visited here once, will return to us again and again. And for our part, we will make every effort to make this dream come true.