BNBC is another failure of "lucanomics"
A year ago, 04.11.2022 dictator with great pomp "launched" the production of "Belarus National Biotechnology Corporation" (CJSC BNBK, Pukhovichi district, Minsk region). The result was predictable - non-fulfillment of production plans, overdue loans, huge debts and another huge injection from the state budget.
Indeed, stability is a sign of excellence. BNBK was positioned by propaganda as "a unique, the largest domestic import-substituting and export-oriented project on complete grain processing in the territory of the former USSR". From the outside, everything really looks beautiful and impressive - new, "needle-new", neat shops, granaries and communications, a fairly wide range of products (mixed fodder, premixes, amino acids, seeds), supposedly optimistic employees in nice uniforms. What is the reality? Information about the real situation in BNBK is hidden from the public and the media, but BELPOL will fill this gap.
We have obtained the information that the criminal regime is so opposed to publishing.
In reality, there is not much "national" and "Belarusan" in CJSC "BNBK". As the Belarusian democratic mass media reported earlier, the Republic of Belarus owns only 25% stock BNBC. And the main owners of the corporation are foreign companies, including 2 Chinese (CITIC International Investments Ltd. and COFCO Corporation), 2 from the United Arab Emirates (Al Salaam Biotech Investments Ltd. and Al Ziad Agro Investments Ltd.) и 2, registered in Scotland (Maxforce LP and Altastar LP). There are also small shareholders.
Thus CJSC BNBK - it's not state-run, it's actually a private enterprise..
Asylbek Saliev - nephew of Kurmanbek Bakiyev
And the "Scottish" firms are controlled Asylbek Saliev - nephew of former Kyrgyz President Kurmanbek Bakiyev, who fled to Belarus (lukashenko granted Belarusian citizenship to the Bakiyev family with the issuance of documents on changed identification data, as a result of which "Bakiyevs" turned into "Salievs".). The director of BNBK CJSC is a "new Belarusian" Daniil Uritski, whom the media identified as Daniyar Usenov - former prime minister of Kyrgyzstan, who fled with Kurmanbek Bakiyev.
The construction of Belarus National Biotechnology Corporation was carried out by the above-mentioned Chinese company CITIC International Investments Ltd. at the expense of credit lines of the Export-Import Bank of China with the total amount of 4 billion 290 million yuan (roughly US$610 million at the weighted average exchange rate during the construction period).
And the said credit for actually private company was issued against guarantees "of the Government of the Republic of Belarus".
I.e. in the event of BNBK's inability to repay the bank, repayment of the loan shall be made by at the expense of the national budget of Belarus.
And so, on to the "classified" information..
The dictator's so-called "Ministry of Agriculture and Food" analyzed the production and financial activities of BNBK CJSC, which is a testament to the dire straits of the corporation. So, in favor of 2022 year output in physical terms was almost half as much planned (260 thousand tons instead of 480 thousand tons). Revenue from sales amounted to 40% from the plan (160 million dollars instead of 400 million dollars). The same trend is observed in the current year. According to the results of work for 8 months of 2023, the volume of production - 200 thousand tons with the annual plan of 600 thousand tons, sales revenue - 120 million U.S. dollars with the annual plan of 460 million U.S. dollars.
To spice up the reporting, the corporation's management decided in the summer of 2023 to reduction of the production plan to 340 thousand tonsthat is, almost twice as much.
As a result of such a failure, BNBK CJSC is completely insolvent, unable to fulfill its credit obligations and pay for the purchased grain.
Layout of the BNBK CJSC project
The corporation has not even started to repay the principal debt on Chinese loans, only the interest has been partially paid. At the request of the "government of Belarus" to the Export-Import Bank of China, in 2023 the repayment schedules of the principal debt were shifted by 2 years. In addition, starting from 2021, BNBK also attracted many short-term bank loans under the guarantees of the "government of Belarus", including for "re-lending" (i.e. repayment of previous loans at the expense of newly obtained loans) in a total amount equivalent to 220 million US dollars at a weighted average rate. The debt on the mentioned credits to Belarusian banks amounts to about 80 million USD and its timely repayment is considered unrealistic by the specialists of the "Ministry of Agriculture and Food".
Foreign shareholders of CJSC BNBK (recall having a corporate interest in 75%) refuse to provide financial support to their own enterprise.
Therefore, the Lukashists have traditionally decided to support the business of the Bakiyev-Saliyev family and other private persons at the expense of the Belarusian people.
It has been decided that in the very near future. 170 million rubles will be transferred from the republican budget to BNBK CJSC (53 million US dollars equivalent) in exchange for shares in this deeply unprofitable enterprise.
Such "patching of holes" should help the corporation to hold on until the end of the year, and then it will be time to repay other debt obligations according to the schedule, which will be impossible to pay at the current volumes of production and revenues. Therefore, in the near future we predict a repetition of the situation with "getting into the people's pocket" for the sake of private interests of Lukashenko's friends. This is the dictator's vision of "development of the national economy" - a corporation, ¾ of shares of which are held by foreign firms, 160 hectares of state land allocated free of chargeOther benefits are provided, loans are taken under government guarantees, and debts are repaid from the state budget, It's not the economy, it's a whole bunch of malfeasance..
Lukashenko visited BNBK CJSC
But that's not all. Lukashenko and his partners, having frankly failed the business project of the "national biocorporation", which is now deeply bankrupt and unable to provide even current operations at its own expense, without reaching the planned production and sales volumes, decided ... to expand the unprofitable business and "launch" a new "import-substituting and export-oriented production with high added value" - the "national biocorporation". BNBK-3 project (release of amino acids, wheat gluten, citric acid, etc.). There is already an agreement with the same Export-Import Bank of China to finance the construction of this production facility, again under the guarantees of the "government of Belarus", i.e. the state budget. The planned amount of the loan is about 500 million US dollars (equivalent to). Thus, the Belarusan people should get ready to pay for the dictator's amusements from their own pockets once again.
BELPOL continues to monitor the situation.
