Do we need to respite Russia?

Vitsebsk food and vegetable processing plant "Nouka" has been suggested to sign a million dollars agreement at the 19th international exhibition of food products and beverages World Food Moscow, which took place in Moscow last week. However, the director of the Belarusian enterprise Rastsislau Hoshka has allegedly stated such conditions in the contract for shipment of their production to Russia, that the customers have been forced to refuse from it.

This was informed to the European Radio for Belarus by the potential candidate for President, the Head of the sector of external economic activity of Vitsebsk vegetable and fruit processing plant Siarhej Ryzhou.

Siarhej Ryzhou: “There is a contract on million US dollars. For example, it's 3 annual plans on external economic activity, which the enterprise is supposed to fulfill. However, the director signed a contract on inexecutable conditions - 100% pre-payment, when usually there is 60 days of respite minimum in contracts like this”.

According to Ryzhou, it was the "Belarusian Trade Company" on the premises of Belarusian State Food Industry Concern which suggested the contract to Vitsebsk plant. The aim was to sell Belarusian production at the Russian market. However, the actions of the director made signing of this contract impossible.

Siarhej Ryzhou: “Belarusian Trade Company” wanted to cooperate with us, sent us their official suggestions on cooperation. They work in accordance to contracts with a 60-days respite of payment with all the Belarusian manufacturers. Our director knew that, but, in order to disrupt signing of contract, he sent his representative to Moscow with absolutely different conditions - 100% pre-payment. There is not a single enterprise in Belarus, whatever production it manufactures, with such contracts today”.

All this, according to him, was made in order to accuse him of being a bad professional and resign him from the position of the Head of the sector of external econimic activity.

The Deputy Director of Vitsebsk plant "Nouka" Siarhej Siarbenka informed the European Radio for Belarus that a contract for shipment of their production had indeed been signed in Moscow. Even two contracts. However, one of them was for preliminary agreement. The second one was final, moreover, it contained regulation on respite. 

Siarhej Siarbenka: “We definitely signed one contract. We worked on it even before going to Moscow, we just coordinated everything there. The contract is with the "Trade Company", the founder of which is the trading house "Belarusian State Food Industry". It is a serious company and we are ready to respite them. As for other Russian companies, we usually work on the terms of pre-payment with them”.

Moreover, according to him, their plant only provides respite to customers who proved reliable.

Siarhej Siarbenka: “We make an agreement on 100% pre-payment when we just start working with a new company”.

The main thing, he says, is that the organization which suggests cooperation should be serious, should have actives or property, which could be a subject of court proceeding in case they fail to pay for the shipped production.

The fact that each enterprise has a right to sign contracts according to their own understanding, was confirmed to the European Radio for Belarus by the Head of the Administration on Economy and Finance of "Belarusian State Food Industry" Concern Dzmitry Baranouski.

Dzmitry Baranouski: “That's normal economic relations between the subjects of economy. One company agrees with another on terms of shipment, terms of payment etc. That's for the enterprise to decide”.

The Vice-Minister of Economy Andrej Tur confirmed his words with regard to refusal to sign contracts on shipment with respite.

At the same time, economist Leanid Zaika advised Belarusian manufacturers not to trust Russian customers too much.

Leanid Zaika : “There is already a great debt of Russian customers for Belarusian production. It is normal to cheat in Russia. That is why I support the decision of our enterprise which sets such conditions. It is not that much of production, like baby food, for a million dollars, for a week. So please, pay in a week. Or 10-15 days. Why do you need 60 days, what is your problem?”.

He added that in today's conditions it was better to insure yourself and not to sign a contract with respite, than not to get money for your production at all.