"Every organization has sources of growth within itself" - Nikolai Sherstnev outlined the priorities for the accelerated development of the Polotsk region

Nikolai SHERSTNYOV, Chairman of the Vitebsk Regional Executive Committee:

In recent years, much has been done in the district, but not all reserves have been exhausted yet. Every organization has sources of growth within itself. They also exist in the industrial sector. Undoubtedly, the present and future of this segment are inextricably linked with the technical re-equipment of enterprises and the introduction of modern technologies. It is extremely important to systematically optimize the work on reducing cost mechanisms and producing high value-added goods. In addition, marketing tools need to be more actively used at the local level to secure new market niches, be competitive, and maintain consumer interest, including through high-quality and exclusive products. It should be noted that the district has achieved significant growth in shipments of manufactured products to foreign markets. The main export nomenclature includes glass fabrics and fiberglass, metal structures, hydraulic presses, lumber, and dairy products. It is noteworthy that within the entire Vitebsk region, the district is among the top three largest exporters.

There are also economic growth drivers in the agricultural sector. In both crop production and animal husbandry, everything must be brought to technological perfection. Every action must be calculated from the perspective of maximum benefit to ultimately ensure guaranteed profit. Today, it is necessary to produce such a volume of agricultural products that will allow for the full utilization of the production capacities of processing enterprises. This means revenue, working capital, and wage growth linked to labor productivity.

Among the strategic tasks is attracting investment, including for the implementation of science-intensive and high-tech projects. In this regard, Polotsk region, due to its geographical location and existing promising investment proposals, needs to make a qualitative leap forward. Business activity and private initiative should also be given a rhythm. Behind this are new productions, employment, budget revenue, and, as a consequence, resources for improving the social sphere.

Having a rich tourism potential, and a considerable amount concentrated in the districtof historical and cultural value, it is important to expand the zone of tourism infrastructure development. And this, by the way, is the most dynamically developing sector of the economy.

Only under such a scenario of accelerated development can the region's position as a powerful industrial center be strengthened, and in general, the district can be put on a growth trajectory simultaneously in all directions. And this is the formula for improving the well-being of the local population.

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Focus on the Human Being

We decided to learn about how Polotsk will be rapidly developing from the horse's mouth. Despite the fact that Igor Markovich was appointed Chairman of the Polotsk District Executive Committee less than a month ago, the civil servant has already managed to get up to speed. Despite the early hour, we notice a group of people in the reception room. As it turns out later, the directors of enterprises came to defend their business plans that day. After preliminary defense, the chairman with a working group goes to the sites to study the situation and search for growth reserves.

On Igor Ivanovich's desk, in addition to folders with materials on current affairs, lies a bound notebook "Comprehensive Plan for Accelerated Development of Polotsk District" in the most prominent place. This is his bedside book, because, as he admits himself, the task has been set to urgently adjust the document. And every little thing matters in this matter. And it is also necessary to take into account every opinion.

— I consider it important to consult with the residents and find out what worries them most today. Work with the population needs to be strengthened in all aspects. After all, the most important thing for us is to improve the well-being of our citizens, — Igor Markovich is confident. — Without people's support, we will not solve any issue in the future. The Head of State also drew attention to this when appointing me as Chairman of the Polotsk District Executive Committee. Therefore, the comprehensive plan for the accelerated development of Polotsk is primarily aimed at solving the pressing issues of the district's residents.

Growth Points

As forthe plan itself is quite extensive, including 248 measures across all priority areas of the region's economic development. There are 18 such areas. Growth points have been identified as modernization, increased utilization of industrial, agricultural, and tourism potential, export growth, and increased entrepreneurial initiative. More than 380 million rubles are planned to be allocated for their implementation in 2019-2020. The development strategy for the district is based on the balanced development strategy of Polotsk as a major industrial hub with the necessary set of services, as well as the urban settlement of Vetrino and core rural councils with a population of over 2000.


— Last year, 56 measures were implemented, and 159 are currently being implemented. Importantly, the list does not include measures that have not yet begun implementation, — emphasizes the Chairman of the Polotsk District Executive Committee. — 184 million rubles were allocated for the implementation of the comprehensive plan measures based on last year's results. Special attention is paid to creating a comfortable living environment for the population in the Polotsk district, including through the development of social infrastructure and housing and communal services.

Igor Markovych explains that the district's competitive advantages include the presence of large industrial enterprises and prepared sites for new production facilities, including under the conditions of the FEZ "Vitebsk". Therefore, investment activity is high.

— We pay special attention to the tourism potential. In May of this year, Polotsk celebrates its 1158th anniversary. The festive events will be held under the motto "Polotsk – the Cradle of Belarusian Statehood". The city's tourism potential is undeniable. On the city's birthday, Polotsk residents, along with all residents of the region, expect many guests from 34 twin cities.

Effective Investments

The key growth point of the Polotsk district is undoubtedly industry.


The comprehensive accelerated development plan for the region provides for the implementation of 90 key investment projects in 13 areas of activity. Among the most large-scale is the comprehensive modernization of the city-forming enterprise "Polotsk-Steкловолокно". This is the only company in the country for the production of fiberglass and products based on it. About 57,000 tons of fiber are produced here annually from various types of glass and basalts. The product range includes over 900 types of high-tech products. The total amount of funds directed to the development of the enterprise last year exceeded 30 million rubles. And this is almost 15 percent of the company's revenue.

First Deputy General Director of Polotsk-Steкловолокно JSC, Roman Bliznev, points out that all investments are the company's own funds.

— Last year was not easy for us, but at the same time, it was successful. We met all the key performance indicators assigned to us. Today, about 4,000 people work at the enterprise. And the fates of many townspeople are connected with the plant.

The enterprise understands that the future lies in investments. Last year became a kind of groundwork for the future. All investments are tracked. The effect of every invested ruble is evaluated.

— We don't see the result immediately, but quite quickly, — emphasizes Roman Bliznev. — At least, we see an increase in productivity at the glass-melting furnaces. For example, we planned about 5 percent for furnace No. 7, but we already see a productivity increase of more than 10 percent. All products manufactured on it are exported. And this is additional money that can be invested in the development of the enterprise. In general, today 92 percent of the products are exported. The geography of supplies covers all five continents. About 50 countries of the world receive our products.

Since the fourth quarter of 2018, the enterprise has become part of the FEZ "Vitebsk". Since then, the company has not paid land and property taxes, and part of the profit tax. And this is almost about two percent of the revenue. The first depThe Deputy General Director of Polotsk-Steklovolokno JSC does not hide: the tax benefit they received allowed them to allocate more funds to development.


— The main task for this year is the implementation of an investment project for the construction of a workshop for the production of thermochemically treated electrical insulation materials for laminated dielectrics. The additionally processed fiberglass in the new workshop will be in demand in the promising market of laminated dielectrics. They are used to make printed circuit boards, which are used in radio electronics, among other things. This is a completely different level and image in the market. This is our opportunity to cooperate with a world leader, Panasonic. They conducted an audit at our enterprise, and we are following their recommendations and implementing a long-term program over four years. In the future, they will be one of our main consumers. They have the strictest requirements in the world for this product, because the electrical insulation is then used for the production of boards in the automotive industry of Europe and Asia. The boards are small, and the responsibility for recalling defective cars is high. The estimated cost of the project is about 45 million rubles. The architectural part has passed the examination, and construction is planned to begin in the near future. This investment project is included in the comprehensive plan for the accelerated development of the Polotsk region. We expect the project implementation to be completed in 2021.

Focus on Export

Back in 2011, the area where the Novopolotsk Technological Metal Structures Plant is now located was in ruins and desolation. A rural housing construction complex once operated on a huge territory near the city. After it ceased to exist, instead of the noise of working machines, only the howling of the wind could be heard in the workshops. The territory, it should be noted, is located in a very advantageous place — it adjoins the railway. This became the decisive factor in choosing a site for the production of metal structures, which enterprising local businessmen decided to establish. They bought vacant premises at auction and created jobs for 400 people. And now work is in full swing here around the clock, 365 days a year. This is explained by the high demand for products.


Metal structures for industrial purposes are produced here. The main consumers are enterprises in the petrochemical and oil and gas industries. The main customers are from Russia. The company has proven itself well in this market, so the order portfolio is constantly growing. The plant's General Director Konstantin Pershikov notes: the focus is on youth. Today, almost all key positions in production are held by young people under 35 years of age.

— The export share of products is high. And it is up to 99 percent. Recently, in percentage terms, it has decreased to 87, but increased in monetary terms. Last year, about 8000 tons of metal structures were shipped. Annual revenue was 32 million rubles. The plans for 2020 are to produce and ship about 8600 tons of metal structures.


By the way, the enterprise employs workers from Polotsk, Novopolotsk, and nearby settlements. Centralized transportation by bus is organized. The geographical affiliation in the plant's name caught my attention, although it actually belongs to the Polotsk district. The explanation for this is simple. The founders of the enterprise are natives of Novopolotsk. During the plant's existence, new life has been breathed into two workshops. The development plan itself envisages the creation of 9 production facilities.

— In 2018, more than 8 million rubles were allocated from the innovation fund of the Vitebsk Regional Executive Committee, — continues Konstantin Pershikov. — The funds were directed towards the creation of welded grating production. This product is widely used in Russia and Europe at oil and gas enterprises. The main technological equipment has already been purchased. Preparations for construction and installation work are underway.

They do not forget about the domestic market either. The enterprise actively participates in the construction of dairy farms in the Vitebsk region. A project for the supply of metal structures for the construction of a poultry farm is currently being worked out.

Focus on Business

Special attention is paid to business in the development of the district. A comparative analysis of small and medium-sized business development indicators over the past few years indicates the progressive development of this sector of the district's economy. The share of business in goods exports is 40 percent, in services exports – 95 percent, and in retail turnover – 85 percent. The share of budget revenues from small and medium-sized enterprises also remains consistently high – about 50 percent.


We discussed the development of the private sector of the economy of Polotsk District with **Director of the Entrepreneurship Support Center Alexander Gatikh**. The windows of his office overlook the Vitebsk Regional Olympic Reserve Center for Rowing Sports. Our interlocutor notes that he shows the building opposite to each client. It is a symbol that one can swim against the current, the main thing is to achieve the set goal.

— In 2019, there were 3275 small and medium-sized businesses in the territory of Polotsk District, including 1065 legal entities and 2210 individual entrepreneurs. This is 11 percent of the total number of small and medium-sized businesses in the Vitebsk region. These organizations cover almost all spheres of activity, with the largest number of them in trade and industry. In general, about a quarter of the economically active population of the district is employed in business. On the territory of the district,

2 investment projects are being implemented within the framework of investment agreements concluded with the Vitebsk Regional Executive Committee under Decree of the President No. 10. A number of enterprises in the district carry out activities under Decree No. 6, become residents of the FEZ "Vitebsk", and use the funds of the innovation fund of the Vitebsk Regional Executive Committee to implement projects. In the district, such a tool of property support as the gratuitous transfer of unused real estate objects into private ownership for the implementation of investment projects is widely used, which allows for the creation of new jobs and the involvement of the population in business organization. In 2019, 10 such projects were implemented, and 9 more are under implementation.

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BY THE NUMBERS

Development benchmarks for Polotsk district for 2019-2020:

♦ nominal average monthly salary — 1050 rubles;

♦ growth rate of own revenues of the district budget — 103.4 percent;

♦ increase in the number of employed population in the economy — by 0.1 percent;

♦ growth rate of revenue per employee — 115 percent;

♦ investment in fixed capital over two years — 351.4 million rubles.

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Respublika Newspaper. Photos from the newspaper and open sources.