Updated at 14:58,21-10-2016

Lukashenka takes control of shoes

08-11-2012, 15:09
Lukashenka takes control of shoes

November 8, Alyaksandr Lukashenka will hold Thursday the meeting on the issues of the leather and footwear industry, the press office of the head of state told UDF.BY

According to the office, the situation with Luch, a Minsk-based shoe-making company that Belarus' government tries to take over the control, is to become the main issue of the meeting.

Luch shareholders at a meeting on October 23 voted against the issue of additional shares worth 25 percent of its authorized capital amid rumors that the government seeks to buy on Lukashenka's demand the shares to raise its stake.

The situation with Luch could develop as it was with the confectionery industry, as the government intending to obtain a blocking stake of the company did not offer its investment project.

In mid-October, Lukashenka ordered the supervisory boards at Minsk-based Kamunarka and Homyel-based Spartak liquidated and the government's stake in the two companies increased from 22 to 57 percent and from 13 to 60 percent, respectively, through an additional share issue. Lukashenka appointed new top managers to Kamunarka and Spartak, Belarus’ oldest candy makers well-known to customers in the former Soviet Union.

Lukashenka said on October 12 that many privatization deals in the 1990s were a mistake and could be annulled. "We must hold on to these enterprises, those in the processing industry, footwear makers, etc., these are the people’s enterprises. And the overwhelming majority of these enterprises must be in the state’s hands. And there must be no privatization here," he was quoted as saying.

"The people must know that the president does not and will not give anything belonging to the people to anyone," he said. "You know that no one will even set foot in Kamunarka and Spartak and other enterprises without me. You know my attitude toward privatization."

According to experts, an approach 'not give anything without my permission' will be used with respect to other enterprises privatized in the 90s.