In 2022, over 45% of foreign investments in the Vitebsk region were directed towards woodworking.

In the Vitebsk region, nearly half of the total foreign investment volume last year was directed towards the development of woodworking enterprises. This was reported to a BELTA correspondent by the Economics Committee of the Vitebsk Regional Executive Committee.

In total, enterprises in the northern region utilized $207.2 million in foreign investments last year. Over 58% of this amount, $121.4 million, was spent by industrial enterprises, including in the shipment of products abroad. 46% of the total foreign investment volume, amounting to $96.7 million, was allocated to the development of manufacturing industry enterprises.

"The main volume of funds came from organizations in Russia, Cyprus, Estonia, Austria, Latvia, and Poland. The Russian Federation accounted for 58.3% of all received investments," the committee clarified. "In terms of attracting foreign direct investment, the volume amounted to $102.1 million, of which $34.2 million was on a net basis."

Specialists note that the business operating conditions for foreign investors last year differed significantly from those in 2021. Enterprises had to take into account sanctions restrictions that affected the procurement of equipment and technologies from unfriendly countries, the mechanism for international settlements with Western banks, and cargo delivery terms. As a result, organizations whose investors were companies and individuals from the European Union countries suspended project implementation to develop further strategies for development in new markets.

The most attractive sectors for foreign investors remain manufacturing and transport services. "In the Vitebsk region, there are over 100 organizations with foreign capital operating in the woodworking sector. The supply of all types of wood products to EU countries has been banned since June 4, 2022, so today markets in the PRC, Iran, Turkey, Uzbekistan, Kazakhstan, and Mongolia are being explored. They are more capacious than European ones but require new certification, competitive pricing, guarantees, and rhythmic supply," the committee specified.

They added that the woodworking market is not frozen. Ready-made wooden houses and construction panels, as well as non-combustible structures with water-repellent effects, are in demand in dozens of countries worldwide. The global market is gradually moving away from plastic and striving for green technologies.

Companies with Russian capital in the Vitebsk region developed most systematically last year, specialists emphasize. "Traditionally good prospects lie in the supply of baby food, dairy products, a wide range of instruments and machine tools, tools, sensors, equipment and components, including for the utility and agricultural sectors of the Russian economy. Investors also showed interest in our flax products and peat, with no restrictions on the supply of these products to the EU market. The main thing is to work out with investors the technologies for deep processing of raw materials," the economics committee stated. "Another area remains the production of veterinary drugs, including those using biotechnologies, the competencies in which the Vitebsk region is striving to enhance."

Projects focused on diversifying technological processes within a single production process currently have the best prospects for development. This refers to cases where part of the operations is transferred to the markets of other countries, for example, to Russia. This allows for minimizing costs for the purchase and sale of raw materials, equipment, and components, expanding participation in foreign tenders, and also controlling cash flows to minimize accounts receivable and payable.

Source: belta.by