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3 April 2015

Grodno Oblast to use its commodity distribution network for supplies to Russia

OSTROVETS, 3 April (BelTA) – Grodno Oblast will supply its food products to the north-western region of the Russian Federation through its own commodity distribution network, Grodno Oblast Governor Vladimir Kravtsov told a press conference in Ostrovets on 31 March, BelTA has learned.

Grodnomyasomolprom Holding Company and OAO Bellakt will set up a commercial enterprise in the Russian Federation for direct sales of meat and dairy products of the Grodno Oblast companies. "The company will seek partners and organize supplies. It will focus on markets such as Saint Petersburg and the Republic of Komi. The company will start its activity in April," the governor said.

In his words, there are plans to supply Grodno food products to Arkhangelsk Oblast of Russia and develop mutually beneficial cooperation with Turkmenistan. The Grodno Meat Packing Plant intends to launch beef exports to the United Arab Emirates. Establishment of partner ties with Kazakhstan is underway with the plans to set up a joint dairy company.

Speaking about the general foreign economic situation at Grodno companies, the governor said that the exports have considerably shrunk this year. In January 2015 the export growth made up only 61%, which was mainly caused by the economic and political difficulties in the Russian Federation and Ukraine, the main trading partners of Grodno Oblast. At the same time the inventory backlog at the oblast companies has already reached Br4.9 trillion. The governor believes that highly-qualified personnel is a solution to the situation with exports. "We cannot sit and wait for buyers. We should seek markets, set up trading houses, commodity distribution networks," Vladimir Kravtsov said.

In his words, there are examples of successful sales. For example, OAO Slonimmebel exports up to 70% of its products. ZOV Company and other enterprises also actively export their goods abroad.

Grodno Oblast has developed an action plan on foreign trade activity and investment cooperation in 2015. The document envisages numerous exhibitions, an exchange of business delegations and other events.