Anatol Kotau Told Why BelAZ Came under EU Sanctions
- 24.06.2021, 12:36
Part of the profit of the Zhodzina enterprise ends up in the pockets of state intermediaries.
Former NOC Secretary General, NAU member, and former employee of Aliaksandr Lukashenka's administration Anatol Kotau told Radio Svaboda about the reasons why BelAZ was included in the EU sanctions list.
- Why were MAZ and BelAZ included in the sanctions list?
- BelAZ was included for two things. All foreign trade of BelaAZ is carried out not through the enterprise itself, but through specially created trading houses belonging to the Lukashenka sports club. What does the trade in BelAZ products have to do with it? The reason is that the bulk of the profits does not end up in the pockets of the workers who work there for a pittance but in the pockets of government intermediaries. The next reason is that BelAZ repressed workers who tried to go on strike.
There are similar grounds for the imposition of sanctions against MAZ, which does not trade itself, but through specially created companies abroad. They have the most extensive structure abroad compared to other companies. And there was also repression against workers, many people were fired. And also for the fact that MAZ products are transport vehicles used for repressions against civil society. Thus, the criteria by which the sanctions were applied were smuggling, repression of workers, direct support of the regime.
- What could be the effect of sectoral sanctions?
- Nobody can calculate the effect of sectoral sanctions. Estimates range from 3% to 15% of Belarus' GDP, from 8% to 15% of Belarusian exports. In any case, it is very painful and serious. These are direct losses of the regime, but the main loss is the image. Industry sanctions can have very unexpected consequences. An example from the textbook. The US sanctions against the oil workers of Belarus, against Naftan, have led to the fact that Russian companies refuse to supply oil through pipelines to the same Naftan. Nobody expected this, because where is America and where is Russia, but this happens.
After all, sectoral sanctions are a blow to the image of Belarus and a signal for business abroad and within the country that no one will trade with us. It's better to be careful than to check the registry whether the company has been subjected to industry sanctions or not, so it is better to look for a partner with less risk elsewhere.
Such signals are already being received - European banks are refusing to process certain payments. There are no sanctions yet, but it's better to prepare just in case. There are statements, sad for MAZ and BelAZ, that American and European engine manufacturers are suspending supplies because it is more dangerous for them than the non-fulfillment of a contract with a Belarusian company.