Residents of the FEZ "Vitebsk" accounted for one-fifth of the region's exports

The free economic zone "Vitebsk" plays a special role in increasing the export potential of the region. Recently, the administration of the FEZ summed up the results of 2016 and, as is customary, recognized the residents who achieved the most significant results. "Vitebskiye Vesti" asked Sergey Yurkevich, head of the administration of FEZ "Vitebsk," to evaluate the past year and share plans for the future.

– Sergey Petrovich, let's start with the main thing – how were the residents' affairs in foreign markets?

– The year was not easy – the decline of the Russian market and the general decrease in economic and investment activity in the world, exchange rate differences, and other challenges, of course, negatively affected the activities of the residents. But credit must be given, most enterprises showed a good margin of safety.

In total, according to the year-end results, resident enterprises exported products worth over 325 million dollars, which is one-fifth of the exports of Vitebsk region organizations as a whole. The growth rate of this indicator was 107.8% compared to 2015, with a target of 104.5%. It is important that they worked with a positive balance, which reached almost 77 million dollars.

Products were supplied to partners from more than fifty countries. The share of exports to the EU was 26.9%, and to the CIS countries – 70%. Supplies significantly increased to Uzbekistan (28.3 times), Bulgaria (26.9 times), Hungary (9.3 times), Finland (7.4 times), Georgia (5.6 times), China (3.9 times), Serbia (3.4 times). I will also mention such an indicator: the export volume of products to new promising markets exceeded 4.2 million dollars.

As for the export of services, there is also good dynamics here. For non-departmental enterprises, the volume increased by almost 1.5 times, with a target of 105%. In

in absolute terms, this is over $24.3 million, or 17% of the total volume for the region.

– Another important indicator of the SEZ's operational efficiency is investment activity. How optimistic are the prospects for the SEZ in the Vitebsk region in this regard?

– It is difficult to give a definitive answer to this question. If we talk about investment in fixed assets, the volume of investment has increased more than 4 times in current prices and amounted to almost 112 million rubles. At the same time, the target for net foreign direct investment was not met. In fact, $20.4 million in foreign direct investment was attracted. I would like to specifically mention IOOO "LINPAK Packaging East" and OOO "Modern Expo", which are implementing projects in Orsha and Vitebsk, respectively.

– What measures are being taken to enhance the investment attractiveness of the SEZ?

– The work is multifaceted and, if I may say so, is being carried out on all fronts, including using the opportunities of Belarusian embassies, the Chamber of Commerce and Industry, partners, and official representatives of the SEZ abroad.

In 2016 alone, we participated in almost 60 investment-oriented events both in Belarus and in other countries. More than a dozen delegations visited the SEZ administration. In addition, 6 cooperation agreements were signed with foreign organizations that have the potential to provide us with information support abroad and assistance in finding potential investors.

Currently, the issue of creating two new SEZ sectors within the boundaries of the Polotsk district and Novopolotsk is being worked on, where a petrochemical cluster may be created in the future. This will contribute to increasing the investment attractiveness of the Polotsk region. In general, we are ready to cooperate with all districts of the Vitebsk region, ready to share our established contacts, opportunities, and experience. After all, any successfully implemented investment project, regardless of its location – in Liozno, Braslav, or Beshenkovichi – enhances the investment image of the region as a whole.

Along with

with the development of prospects for the expansion of FEZ, we are actively developing infrastructure in sector No. 1 "Zhurzhevo", which is the main site in Vitebsk. There we have plots equipped with the necessary communications and ready for development, with a total area of 40 hectares. In other sectors in Orsha, Postavy, and in the regional center there are vacant areas at enterprises territorially included in the FEZ. They can also be used by investors to organize production activities on preferential terms.

And at the state level, the legislation on free economic zones is being improved. This is due to the need, in particular, to fulfill the obligations of Belarus as a member of the EAEU, as well as the need to increase the competitiveness and attractiveness of FEZs against the backdrop of intensified competition for investment resources.

Thus, among the latest innovations, one can note the reduction of the minimum investment volume for investors applying for FEZ resident status, exemption from VAT for goods manufactured by residents using foreign raw materials imported under the customs procedure of a free customs zone, and a number of other benefits. Residents are exempted from paying rent for land plots not only during the design and construction period, but also for the entire duration of the investment project.

– At the end of 2016, the territory of the FEZ expanded due to one of the sectors in the Orsha district. How is the investment development of this site proceeding?

– Indeed, by Decree of December 30, 2016, the boundaries of the FEZ sector in the village of Bolbasovo were expanded by 231 hectares. At this site, the company "Bremeno Group" has already begun to implement a project for the construction of a multimodal industrial and logistics complex. The very favorable geographical location of this sector, the presence of a runway, a railway, and the proximity of the M1 highway will allow the creation of a logistics cluster in the region with related industries.

In the future, it can be linked to the Chinese project for the revival of the Great Silk Road. Negotiations are underway with companies from China, Oman, and the United Arab Emirates.

The FEZ administration is actively promoting this project among potential foreign investors who are ready to develop logistics services, packaging production, various assembly operations, and a number of other areas. The implementation of the project will undoubtedly contribute to the development of the economic potential of the Vitebsk region.

– Who joined the FEZ in 2016 and how did the existing residents perform?

– LLC "Beshenkovichi agroproduct" has been registered as a new resident. It will build a rabbit farm with an annual capacity of 500 tons of meat and by-products, involving the implementation of a number of high-tech solutions in animal husbandry. By the way, this investment project is included in the State Program for Innovative Development of the Republic of Belarus for 2016-2020.

It is gratifying to note that world-renowned corporations that own companies in various countries have begun to join us.

Among the enterprises, we traditionally select the leaders in five nominations. This time, the work of LLC "PO "Energokomplekt" was recognized as the "Best FEZ Resident of 2016" with the presentation of a rotating honorary banner. The company, in challenging conditions, managed to increase its production by more than 1.5 times (and its share in the total volume indicator for the FEZ was 24.5%), and also increased exports by more than a third (its share in the total FEZ exports is 24%).

The best investor was recognized as Orsha IOOO "LINPAK Pekedjing East", which attracted 1.4 million dollars of net foreign direct investment. The best exporter was OJSC "Vitebskiye Kovry", partly because the enterprise managed to enter the markets of the Middle East countries and compete successfully with global leaders in its industry. OJSC "Orsha Aircraft Repair Plant" was recognized as the best exporter of services: its share in this FEZ indicator exceeded 50%. OJSC "Design Bureau "Display" has been demonstrating consistently high financial and economic performance for several years and maintains its investment activity. That is why the FEZ administration decided to present the award in the "Stability and Success" nomination to "Display".

"VV" REFERENCE: FEZ "Vitebsk" was established in 1999. The territory covers about 2.5 thousand hectares and includes 13 sectors, including 7 in Vitebsk, 4 and 1 in Orsha and Vitebsk districts, respectively, as well as 1 sector in Postavy. 36 enterprises established with the participation of capital from 14 countries are registered as FEZ residents. The total number of employees in the FEZ exceeds 10.7 thousand people. In 2016, 216 jobs were created. The average monthly salary was over 666 rubles, including almost 850 rubles for enterprises not under departmental subordination.

Sergey Antonov, "Vitebskiye vesti".