‘To Some War Is Death, To Others It Brings Wealth’
- 15.07.2023, 17:34
The Belarusian enterprises that received millions after the Russian invasion of Ukraine.
The invasion of Russian troops into Ukraine from the territory of Belarus in February 2022 resulted in new sanctions for the Belarusian economy, a rupture of established ties, and loss of sales markets. And at this time, several Homel enterprises are simultaneously carrying out “modernization” for amounts incomparable with their financial capabilities.
Flagstaff represents five Homel enterprises that are spending millions of dollars in 2023 to purchase new equipment.
OJSC Saleo-Homel
JSC “Saleo-Homel” specializes in the production of hydraulic equipment for mobile machinery, equipment for machine tools, automatic lines and other equipment. In 2020, the company began bankruptcy proceedings and is now in the process of reorganization. Despite this, the company currently purchases machine tools and machining centers for a total of 13.4 million BYN (5.3 million USD).
The financial “renaissance” of the enterprise began after the start of the active phase of the war in Ukraine. In 2022, the bankrupt enterprise mastered the production of 40 types of import-substituting products. Production of another 49 new items is planned for 2023. According to the company, Homselmash became one of the main buyers of new products.
JSC “Homselmash”
In 2022, after the accession of the Homel Radio Plant, the Homel giant of agricultural engineering actually became an enterprise of the military-industrial complex. Homselmash, which for many years experienced great financial problems, was showered with Russian money. The plant became the first of the Belarusian enterprises to which the Russian Ministry of Finance allocated funds under the state financial loan for import substitution.
It is possible to track the use of these funds right now. Since the beginning of the year, the company has been purchasing new equipment in the amount of BYN 37.9 million (USD 15 million). In addition, components for Russian equipment are purchased through a plant in the West, which are not available for deliveries to Russia. It is known that the total amount of financing of the enterprise at the expense of Russian loans is 500 million RUR (55 million USD).
JSC “StankoHomel”
Sanctions against Russian enterprises of the military-industrial complex have opened up new opportunities for the StankoHomel plant. In May 2023, it became known about the start of a joint project of StankoHomel OJSC with enterprises of the Russian military-industrial complex from Udmurtia. The Russians are now planning to buy machine tools for the production of weapons in Homel.
Already, StankoHomel OJSC has announced a series of tenders for new equipment for a total of BYN 52.3 million (USD 20.7 million). This is more than the value of all assets of the joint-stock company at the beginning of 2023. Some of the tenders have already been removed from public access on the procurement website.
OJSC “Homel Plant of Casting and Normals”
Among all Homel enterprises, since the beginning of the year, the Homel Plant of Casting and Normals allocated the biggest funds for modernization — 68.1 million BYN (27 million USD). The largest was the tender for the purchase of a Western-made machining center for processing body parts of a high level of complexity. The lot cost was 46.1 million BYN (18.3 million USD). Subsequently, the competition was canceled due to “loss of relevance”.
The company remains in a difficult financial situation. At the beginning of 2023, the amount of debt exceeded the value of all assets by 189 million BYN. The financial “rain” that hit the enterprise is probably related to Russian financial support for the Homselmash holding, which also includes the plant.
JSC “Elektroapparatura”
OJSC “Elektroapparatura” is known to the general consumer as a manufacturer of electric stoves. However, in 2022, the main volume of production of the enterprise fell on electrical distribution control equipment: contactors, switches, relays, which can be used for different purposes.
In recent years, the company has experienced financial problems. Profits were last made in 2018. With each new year, losses only increase, reaching 1.3 million rubles in 2022.
However, in May 2023, the company announced a series of tenders for the purchase of 14 CNC machining centers and 14 hydraulic presses for a total of 9 million BYN (3.6 million USD). Such an amount today is unbearable for the enterprise, since it accounts for more than half of its annual revenue.
UPD. According to a source familiar with the situation at the enterprise, funds were allocated through the Belarusian Innovation Foundation for the implementation of a project to introduce new technological lines for the production of household floor gas and electric stoves.