Atlas Slouched His Shoulders

The Minsk Refrigerator Plant is on the verge of bankruptcy.

The Minsk plant “Atlant” is a large industrial enterprise that specializes in the production of household appliances. However, despite its significant capacity and experience, the plant faced a number of problems that seriously undermined its position in the market.

One of the main problems faced by Atlant is the fact that it exports most of its products to the Russian Federation, which is the main market for household appliances for Belarus. It accounts for most of the sector's exports, as much as 80%. However, this dependence on one market has always been a serious threat to the stability of the enterprise in the event of any changes in the political or economic environment.

In 2004, another serious burden was placed on the Atlant plant — the unprofitable agricultural enterprise Shapchytsy-Agro was transferred to it as part of the program for the financial recovery of agricultural organizations. The profitability of the collective farm was minus 13%, and convicts were recruited to work there, which only worsened the financial performance of Atlant.

But there was always a reserve until complete immersion to the bottom. This happened in 2014, when Atlant became the most unprofitable Belarusian enterprise. That year, the market for large household appliances in Belarus and Russia sank by 40%. Due to the devaluation, the plant lost 110 million rubles. In a good scenario, they expected to recover by 2020, but the financial difficulties of the enterprise only increased. And after 2020, the collapse of the enterprise became visible to the naked eye.

The plant did not escape one of the main problems of Belarus — corruption and kickbacks through Russia, which Atlant also faced. The director of the machine-tool plant located in Baranavichy and the head of the bureau of the commercial department were detained for taking bribes. The director tried to hide from the police in the toilet of his office and flush the money down the toilet. He received a bribe from a Chelyabinsk company. According to the police, it was a kickback for the fact that the company got contracts for the supply of metal products from Russia.

In addition, the preferences of the population of our country also affect the activities of the plant. Belarusians prefer to buy Western equipment, which leads to a decrease in demand for the products of the Atlant plant. If in 2016 the share of domestic refrigerators purchased by Belarusians was 64%, then last year it dropped to 35%. The same is happening with washing machines — the share of Belarusian among those sold has decreased from 30% to 15%.

This situation at the refrigerator factory is just one of a thousand examples of the problems the Lukashist economy is currently facing. The stoppage of production at the Minsk Refrigerator Plant from next week, and the uncertainty with the payment of wages are nothing more than a consequence of the activities of the half-educated hangers-on of the regime. The situation at the plant indicates serious economic problems in the country associated with instability and a serious decline in the economy. Complete dependence on the Russian economy and the sanctions imposed by the West have made Belarusian factories “last nail hoodlums”.

If the democratic forces win in Belarus and a stable political situation is established, the country's economy should recover. To do this, it is necessary to carry out serious reforms in the economy and enterprise management.

One of the key points is export diversification. Now most of Belarusian exports are oil products and fertilizers, which makes the economy vulnerable to fluctuations in world prices for these goods. It is also important to appoint real professionals with successful experience in managing large enterprises to leadership positions. They will be able to make the necessary changes in the work of enterprises, increase production efficiency and establish cooperation with global partners.

Only then will the country's economy really flourish, and Belarusian enterprises will be able to provide decent wages to their employees.

Artsiom Chernikau, exclusively for the Basta! Telegram channel