OREANDA-NEWS. On January 26, 2009 Belarus’ Government and Societe Generale signed a memorandum of cooperation. The document was signed by Vladimir Semashko, First Vice-Premier of Belarus, Philippe Citerne, Co-Chief Executive Officer of French banking group Societe Generale, Igor Katibnikov, Chairman of the Board of Directors of Belrosbank, Igor Antonov, Deputy Chairman of the Board of Directors of Rosbank, reported the Official website www.government.by.

The agreement “will facilitate the work and promote Belarusian companies, Philippe Citerne told reporters. “We would like to share our experience and achievements with Belarusian companies,” he added.

Founded in 1864, the French banking group Societe Generale has been long cooperating with Eastern Europe and Russia Societe Generale Group is one of the largest banks in the euro zone in terms of assets under management, with EUR 434.6 billion as of December 2007, and in terms of assets under custody, with EUR 2,583 billion as of December 2007.

In Russia the French Group operates several subsidiaries - Bank Societe Generale Vostok, ALD Avtomotiv, Rusfinansbank, Delta Credit, Sozhekap, Rosbank.

In Belarus Societe Generale is represented by AKB Belrosbank, which was registered on July 22, 2003. The main shareholder is AKB Rosbank (99.99%).

In terms of business parameters (assets, loan portfolio, time-fixed deposits) Belrosbank is one of the major banks of Belarus. Its regulatory capital exceeds Br98 billion. As of December 1, 2008, the assets of the banks were equal to Br985.4 billion, up two times from early 2007. Since then the loan portfolio has doubled to Br741.1 billion.

AKB Belrosbank is a universal bank, which offers a wide range of banking services to clients. The bank focuses on investment projects of Belarusian companies, servicing and financing of foreign trade of companies, provision of modern banking products taking into account individual requirements of customers.

The bank has state-run and private clients. During its operation AKB Belrosbank and AKB Rosbank (Moscow) have set limits for enterprises of Belneftekhim and Belenergo concerns as well as the Industry Ministry in excess of US1.5 billion. The enterprises can use the sum for financing to replenish floating assets and implement investment projects. As of October 1, 2008 the legal capital stood at Br44 billion.

Rosbank is one of the largest financial institutions of the Russian Federation, with a wide regional network. The European financial group Societe Generale acquired a 58% stake in Rosbank bringing the Russian bank the highest international rating among the Russian banks (according to the Fitch Ratings).

The delegation of managers of French enterprises headed by Philippe Citerne will stay in Minsk until January 27. The delegation includes representatives of twenty companies and organizations. During the visit they will hold negotiations with the heads of various ministries, regions and cities as well as with entrepreneurs interested in the partnership with French enterprises.

MEDEF International includes 750,000 French enterprises: small, medium-sized and large companies representing different sectors of economy from industry to trade and services. The goal of the association is to represent and promote French enterprises abroad. Each year MEDEF International organizes more than 120 meetings with heads of state and government, high-ranking officials and private persons, holds from 20 to 30 visits of French enterprises’ CEOs.

Belarus invites French investors to take part in the projects in the energy area, said First Deputy Prime Minister of Belarus Vladimir Semashko at a roundtable with heads of French enterprises in Minsk on January 26.

“French enterprises show a great interest in the energy issues of Belarus which are topical in our country as 85% of the country’s energy is imported and the country is heavily dependent on one energy supplier,” Vladimir Semashko stated. Belarus is therefore trying to diversify its energy suppliers and raise the energy production efficiency.

According to the First Deputy Prime Minister, Belarus reduced the energy intensity to the amount of 285 kg of oil equivalent per US 1,000 GDP. This figure used to be 750 kg some 15 years ago, but still it is not the 130-150 kg as it is in European countries. It means that Belarus has a great energy saving potential, Vladimir Semashko underlined.

He pointed out that a programme to modernize all energy production facilities is implemented in Belarus. This programme includes the construction of power stations operating on local energy sources and energy saving activities. By 2012, 25% of the thermal electric power is to be produced from the local fuels. This programme is to span 2020. The investment needed is estimated at US 32 billion. A nuclear power plant is to be constructed in Belarus, too. The first energy bloc is to be commissioned in 2016, the second in 2018.

“We are interested in the participation of foreign investors in the Belarusian energy projects. We are counting on ourselves, at the same time we are sparing no effort to attract foreign capital,” Vladimir Semashko underlined. He added that the aftermath of the global financial crisis affected Belarus, too, the financing of the programme to modernize the energy production facilities has been slightly adjusted. “We will not change our plans about priority projects, but individual, less significant projects, might be postponed,” Vladimir Semashko underlined. Foreign investors may help accelerate the implementation of these projects.

Belarus is reducing the state monopoly in the energy sector, First Vice-Premier said.

Vladimir Semashko noted that this year Belarus plans to adopt two new laws: on electrical energy and on local fuels. This will create a possibility for the arrival of private capital. “These laws in force, the sources of energy in Belarus can be private. The creation of joint and foreign companies in this sector will be possible too,” the First Vice-Premier said.

According to him, Belarus plans to give preferences to the investors who create the energy facilities running on local fuels.