Fertilizer and oil product manufacturing holdings may be established in Belarus

March 4, Minsk / Liliya Krapivina - BELTA /. Holdings for the production of mineral fertilizers and oil products may be created in Belarus. This was stated today to journalists by Vladimir Sobol, Head of the Department for Improving Organizational Forms of Management of the Ministry of Economy of Belarus, as reported by a BELTA correspondent. In accordance with Decree No. 660 of December 28, 2009 "On Certain Issues of Creation and Operation of Holdings in the Republic of Belarus," holdings are created on the basis of production associations. Among them is RUP "PO" Belaruskali, "which will be the management company in the holding. It may include the Gomel Chemical Plant, regional agrochemical enterprises involved in the purchase and delivery of fertilizers. The holding company based on OJSC "Naftan" may include OJSC "Grodno Azot," "Mogilevkhimvolokno," the Wax Plant (Minsk Region), and other enterprises that produce petrochemical products. Vladimir Sobol explained why "Polimir" was not included in the "Naftan" holding: "There was an option to combine all oil refining in this holding, including the Mozyr Oil Refinery, the Druzhba oil pipeline, and Belorusneft, but at the initial stage. We thought that gathering so many assets into one holding company would be incorrect." He also noted that foreign companies can contribute their share to the authorized capital of holdings or buy shares in these holdings. The status of a holding company does not prohibit foreign participants from joining a joint-stock company. The parent company in a holding can also be a third-party company, including a foreign one. This will depend on the owner who chooses it. In Belarus, the state is the owner in most holdings; if it is confident in the new company, then such involvement is allowed. According to Vladimir Sobol, the creation of holdings in Belarus will increase the interest of foreign investors in privatization, including in the oil processing sector. -0-