Decision on Turkish investments into Belarus’ Kamvol due in November

Istanbul-based De Textile won a tender to set up production of worsted cloth at Kamvol. The project is estimated at about $200 million. “This will be a landmark project,” the Prime Minister is convinced. 

The negotiations on financing the project are due to be held in the near future. “In mid November Belarusian and Turkish businessman and banks will engage in talks with European banks to finalize the project,” the Premier said. 

De Textile is already cooperating with the Baranovichi-based cotton plant. The next Belarus-Turkey projects will be implemented in the leather industry and footwear production, Mikhail Myasnikovich informed. The Premier underlined that Belarus views Turkey as a promising political and economic partner. In his words, the two countries have already developed a roadmap of the bilateral relations for the short-term perspective. “However, time is running, and we need to flesh it up with new interesting projects,” he added.

The Belarusian Premier believes that the two countries can also benefit from cooperation in the manufacturing industry. “I think we will ramp up our projects in the manufacturing industry, production of tractors – it is a serious manufacturing project,” Mikhail Myasnikovich said. 

He informed that Belarus is interested in relocation of production facilities from Europe to Belarus. “We discussed the relocation of some factories from Europe in connection with the expansion of the European Union,” the Belarusian head of government said. He reminded that when the core Europe set up production facilities in Eastern Europe, it made economic sense. After these Eastern European countries joined the EU, the benefits grew smaller. “I think machine building and textile production can be relocated to Belarus,” Mikhail Myasnikovich said. 

The parties touched upon bilateral projects in the hospitality industry. “President Hotel is being constructed in Minsk (the Turkish construction company Emsas won the tender to reconstruct the Oktyabrskaya Hotel into the five-star President Hotel- BelTA’s note). We are glad about our construction projects with Turkey,” the Belarusian Premier said. 

He reminded of Belarus’ interest in raising capital in the telecom industry. “Belarus invites Turkish companies to take part in privatization of Belarusian enterprises or buying the Belarusian part in cell phone providers,” the Prime Minister said. He explained that Belarus is going to sell its 50% stock in MTS Belarus. 

Mikhail Myasnikovich noted that Belarus is overall satisfied with cooperation with Turkey. He added that he would like to meet with his Turkish counterpart. “Belarus confirms its interest in the official visit of the Prime Minister of Turkey,” Mikhail Myasnikovich said. 

Ertugrul Gunay expressed satisfaction with the work of the Belarus-Turkey intergovernmental economic cooperation commission. He noted that many of the plans have already been materialized. “The relations between Belarus and Turkey are expanding fast. However, the cooperation potential has not been exploited in full,” the Minister of Culture and Tourism of Turkey said. 

Belarus-Turkey diplomatic relations were established in 1992. Since 2008, the two countries have considerably expanded contacts on the highest level. Belarus President Alexander Lukashenko paid a working visit to Turkey on 2-5 October 2010. 

In H1 2011, the Turkish investments soared 3.8 times over the same period last year and made $21.7 million. Direct investments on the net basis rose more than 1.5 times to reach $3.8 million.

According to