In this section you will find information about Belarus. Professional journalists from the independent non-state publication officelife.media (location - Minsk) tell about what is really happening in Belarus. No political accents or ideological attitudes. Only the most important facts so that you understand the essence of what is happening in this corner of Europe.
Belarus news in English
EN
Мероприятие
Babariko

KGB completes investigation of the “Belgazprombank Case”; Victor Babariko does not admit his guilt; the owners of Belgazprombank will propose a new board before the end of the year. Belarus, November 24, 2020

The charges were brought against the defendants in the “Belgazprombank case” after a preliminary investigation. All except for the former chairman of the board Viktor Babariko admitted their guilt. The new composition of the bank’s board will be formed in December. The value of Eurotorg’s assets has almost halved. EPAM top manager received 15 days of arrest. Kazakh BTA Bank intends to sell its Belarusian subsidiary.

Viktor Babariko and top managers face charges in the “Belgazprombank Сase”

The KGB reported that it had completed the preliminary investigation of the criminal case against the top managers of Belgazprombank. This was reported on the KGB website. All the defendants fully admitted their guilt in the crimes incriminated to them, with the exception of Viktor Babariko.

“The former chairman of the board of Belgazprombank OJSC Viktor Babariko, the organizer of criminal activities, was charged with committing crimes on the facts of receiving bribes by an organized group on an especially large scale, as well as legalization (‘laundering’) of funds obtained by criminal means on an especially large scale”, - the KGB noted.

The bank’s top managers were also charged under several articles of the Criminal Code. In June, about 20 people were detained in the “Belgazprombank Сase”, and cases were initiated under six articles of the Criminal Code. This case was opened after Viktor Babariko announced his participation in the presidential elections and his team collected enough signatures to nominate him as a candidate. Instead, he was arrested and placed in the KGB pre-trial detention center, where he still remains.

Belgazprombank owners will propose a new board before the end of the year

The owners of Belgazprombank will form the bank’s board in December under the patronage of the interim administration. The head of the interim administration of Belgazprombank Nadezhda Ermakova told reporters about this today.

According to Ermakova, Gazprom and Gazprombank, which own the Belarussian bank, have already made proposals on some candidates for the formation of the bank’s board. The term of office of the interim administration of Belgazprombank expires in mid-December.

The bank is headed by a temporary administration headed by Nadezhda Ermakova. It was introduced by the state after the opening of criminal cases against the ex-head of the bank Viktor Babariko and the bank’s top managers. After the introduction of the provisional administration, the bank’s assets decreased dramatically. Clients took over 1.1 billion Belarusian rubles ($430 million) from the bank.

During today's meeting with Yermakova, Alexander Lukashenko said that “we need to form the bank’s management together since the state is placing a very serious stake on this bank.”

The value of Eurotorg’s assets has almost halved

Eurotorg has issued new bonds, this time for the Belarusian market ($1,000 face value, $5 million total volume). The prospectus shows that the net asset value decreased from 2017 to 2019 by more than 1.8 times. Now it is about 254.6 million rubles ($100 million).

Net profit decreased significantly. At the end of 2017, it was over 41 million ($16 million), and only 441 thousand ($172 thousand) at the beginning of this year. But the current liquidity ratio is growing. Previously, it was equal to 1.11. At the end of September, it is 1.35. That is, the company has working capital and resources to pay off urgent obligations. At the same time, the amount of long-term loans and borrowings is growing.

The prospectus doesn’t say anything about political risks in the market but notes that there are general social ones. They can lead to a decrease in shopping activity and a suspension of stores. In general, the company estimates social risks as low and expects revenue growth in the next three years.

In particular, the company expects revenue growth in 2021 by 27% compared to 2019. In 2022, the retailer expects to improve its revenue indicator by 5.3% by 2021. In 2023, Eurotorg sees itself with revenues of 6.4 billion rubles ($2.5 billion), which is 14% more than in 2021.

The company completed 2019 with a revenue of 4.4 billion rubles ($1.7 billion). And the first half of 2020 brought it 2.3 billion ($0.9 billion) in revenue.

Eurotorg expects a net profit in 2021 in the amount of 11.1 million rubles ($4.34 million), 11.9 million ($4.66 million) in 2022, 12.7 million ($4.97 million) in 2023.

The Eurotorg network already has more than 900 stores. S&P Global Ratings has affirmed Eurotorg’s ratings at B-/B and assigned a B- rating to the issue of credit notes (LPN) worth $300 million.

EPAM top manager received 15 days of arrest

On Tuesday, November 24, the court considered the case of Senior Director of EPAM Igor Ovsyanik. He was found guilty under the article on violation of the order of organizing or holding mass events and sentenced to 15 days of administrative arrest.

Igor Ovsyanik was detained last Sunday during the protests in Minsk. The circumstances of the detention are unknown, so, it is not clear whether he took part in the action or just happened to be near it.

Kazakh BTA Bank intends to sell its Belarusian subsidiary

Kazakh businessman Kenes Rakishev, co-owner of BTA Bank, announced his plans to sell the Belarusian subsidiary of BTA Bank in 2021.

The sale of the Belarusian BTA Bank is part of the corporate strategy aimed at selling all foreign assets. BTA Bank has developed 3 foreign banks in Belarus, Ukraine and Kyrgyzstan over the past years. When BTA Bank Kazakhstan gave away its parent bank license and became an asset management company, it was decided to sell all subsidiary banks with licenses.

BTA Kyrgyzstan was sold in 2019. It is decided to complete the sale of BTA Ukraine by the end of this year. In 2021, when the situation in Belarus stabilizes, BTA Belarus will be sold. Rakishev clarified that the Belarusian subsidiary bank doesn’t have a specific buyer yet, but negotiations on the sale have been launched.

Photo: shutterstock.com / kalyanby



In this section you will find information about Belarus. Professional journalists from the independent non-state publication officelife.media (location - Minsk) tell about what is really happening in Belarus. No political accents or ideological attitudes. Only the most important facts so that you understand the essence of what is happening in this corner of Europe.