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Belarusian truck manufacturer Belaz shows interest in production in Russia

The Russian ministry of industry and trade received no official requests for such a contract from Belaz

MOSCOW, November 26. /TASS/. Belarus’ heavy-duty truck manufacturer Belaz demonstrated interest to possible signing of a special investment contract for the production of dump trucks in Russia, the press service of the Russian ministry of industry and trade told TASS on Thursday.

"Indeed, the company showed interested to signing a special investment contract for the production of Belaz dump trucks," the ministry said, adding however that it had received no official requests for such a contract from Belaz.

Deputy Minister Viktor Yevtukhov said in late September that Belarus had offered to look at organizing production of Belaz trucks in Russia. The Russian ministry of industry and trade said back then that such a project was quite implementable.

Belaz, on the of the world’s biggest manufacturers of heavy duty trucks, controls some 30% of the global market. The company is 100% owned by the government. Its proceeds in 2019 stood at 782 million US dollars and net profit was 122 million US dollars.

A special investment contract is a contract between the government and investors geared to encourage localization of production in Russia. The investor undertakes under the contract to invest in the establishment, modernization or organization of production in Russia in exchange of fixed tax conditions. Under the updated edition of the contract that came into effect from August 2019, the term of the contract is 20 years, with income tax privileges and no lower limits for investments.

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