EU’s asset freeze hits dozens of Belarus’ state-run companies – economy ministry

November 23, BPN. The EU has frozen the assets of 26 Belarusian companies as part of Western sanctions, Ekonomicheskaya Gazeta reported citing Deputy Economy Minister Dźmitryj Jaraševič.

The list of sanctioned companies includes the potash giant Belaruskali, Naftan oil refinery, MAZ and BelAZ truck plants, Hrodna Azot nitrogen fertilizer plant, Minsk Wheeled Tractor Plant, Hrodna tobacco factory Nioman, Belarusian flagship carrier Belavia and Belarusian State Television and Radio company.

Belarusian state-run companies “may be afraid to expand to the West” because of the persisting risks that their assets may be blocked completely, Jaraševič said.

Restrictions may cause a significant reduction in revenues of the sub-sanctioned companies, he added.

Western sanctions could have caused a $20 billion drop in foreign currency revenues if exports were not rerouted to the third countries’ markets, the official said, noting that Belarus may be short of funds to refinance foreign loans.

Belarusian GDP’s dependence on imports reached 57.9 percent in 2020 and may pose internal threats to the economy, being a major problem along with high costs and low efficiency, Jaraševič said.

Belarus is way behind the developed countries on labor productivity, he added.

The deputy economy minister’s down-to-earth assessment stands in sharp contrast to upbeat accounts coming out of other offices, including the prime minister and Alaksandr Łukašenka’s administration.