BELARUS NEWS AND ANALYSIS

DATE:

28/11/2007

Lev Leviev's Africa-Israel expected to pour massive investment into Belarus

By Michael Rochvarger

The economy of Belarus is flourishing. With the expansion of the country's international business activities, Belarus president Alexander Lukashenko met with Lev Leviev last week. Belarus is eagerly courting investments by tycoons like Leviev in sectors beyond the diamond market.

Leviev heads the Leviev Group of Companies (LGC), which conducts bustling business in diamonds, construction and infrastructure, fashion industry, communications, high-tech and media, real estate and tourism. The conglomerate's reach includes the U.S., Russia, South Africa, Namibia, Angola, New Zealand, Fiji Islands, Kenya, Singapore, India, Hong Kong, Italy, France and Britain. Russian newspapers report that President Lukashenko is negotiating the inclusion of LGC in huge construction projects in central Minsk, the capital of Belarus. According to newspaper reports, LGC is expected to invest in a variety of areas, including development of Belarus' cement industry, construction of entertainment centers and casinos, as well as infrastructure. Leviev could also construct a hospital in Minsk, and invest in pharmaceuticals, tourism and health industries.

The Russian press estimates LGC's total annual revenue at more than $3 billion, of which its diamond industry business accounts for more than $1 billion. LGC is already active in Belarus' diamond industry, through collaborations with local companies, but will shortly be launching an independent business in this field with an initial investment of about $30 million. At this stage, the scope of Leviev's planned investment in Belarus remains uncertain, but is estimated to reach many tens of millions, and perhaps even hundreds of millions of dollars.

Belaurus and Israel maintain strong trade relations in various areas. During the second quarter of this year, export of goods to Belarus from Israel totaled about $2.2 million, up by 171 percent over the same period last year. Import of goods to Israel from Belarus totaled $17.4 million in the same period, an increase of 102 percent compared to mid-2006. Israelis have invested in more than 50 registered companies in Belarus, mainly in the food, pharmaceutical and chemicals industries.

Source:

http://www.haaretz.com/hasen/spages/928774.html