Lukashenko blocks bailout for Belarus's debt-ridden Svetlogorsk pulp mill
Belarusian President Alexander Lukashenko has rejected a government plan to bail out the struggling Svetlogorsk Pulp and Board Mill. The proposal would have returned funds from the National Development Fund to help repay the mill’s long-standing loan. Lukashenko questioned why the company could not handle its financial obligations on its own. The mill’s troubles began over a decade ago. In 2010, a contract was signed to construct a sulfate bleached pulp plant, with 85% of the $800 million cost funded by a Chinese loan. The facility was supposed to start production in 2015, but delays and local protests pushed back operations.
By 2019, the mill took legal steps to end its contract with the Chinese general contractor. Despite efforts, the company remained unprofitable until 2021. Safety issues also plagued the site, with fatal accidents reported in 2020 and 2023. In 2024, the head of the mill’s regeneration shop was convicted of causing an explosion due to safety violations.
Yury Kruk has led the mill as director for more than 20 years. The plant’s only product, pulp, was initially intended for corrugated cardboard and packaging. However, financial struggles and operational setbacks have left its future uncertain. The government’s proposal to use public funds for the mill’s debt has now been dismissed. Lukashenko’s rejection leaves the company without state financial support. The mill must now find alternative solutions to address its long-running financial and operational challenges.
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