Lukashenko dispenses 260 million rubles to Belagrosprombank
In a significant move to bolster the agro-industrial sector, Belarusian President Alexander Lukashenko has signed Decree No. 284, allocating 260 million rubles from the national budget to Belagroprombank. The decree, published on the National Legal Portal on July 23, 2025, aims to strengthen state control over key enterprises and provide financial resources to boost agricultural production and agro-industry development.
The funds allocated to Belagroprombank, a major financial intermediary for the agricultural sector in Belarus, are intended to improve liquidity and credit availability for agricultural businesses. This, in turn, could potentially boost production output.
As part of the government strategy to consolidate control over critical industries linked with the agro-industrial complex, shares of four Belarusian companies will be transferred to full or partial state ownership. Belagroprombank is instructed to transfer its shares in OJSC "Rassvet named after K.P. Orlovsky", OJSC "Svetlogorsk Pulp and Paper Mill", OJSC "Polesye", and OJSC "Gamma of Taste" to the state free of charge.
The decree also mandates the issuance of loans under favorable conditions, targeting agricultural producers to enhance investment, productivity, and modernization of the agro-industrial sector. These loans will be issued for a term of up to one year at an annual interest rate of 3%. The total amount of lending should not be less than 108 million rubles.
The loans will be used, in part, for the purchase of mineral fertilizers, a crucial input for agricultural production. The funds will also be used to purchase regional executive committee bonds at an annual interest rate of 3%.
The transfer of shares to the state includes 172,299 ordinary shares of OJSC "Rassvet named after K.P. Orlovsky" to the ownership of the administration of the Kirovsky District, 227,979 ordinary shares of OJSC "Polesye", and 458,500 ordinary shares of OJSC "Gamma of Taste".
The decree reflects broader economic policy approaches in Belarus emphasizing state-led development of key industrial sectors through targeted financial mechanisms and ownership changes. This move is expected to prepare for field work in a timely manner, ensuring the agro-industrial sector remains strong and resilient.
What is the purpose of transferring Belagroprombank's shares to the state, in relation to the industry that the bank primarily serves? Could the financial resources allocated to the bank improve the financial situation of those in the agriculture sector and potentially boost their production output?
