The results of the negotiations of President Lukashenko and President Putin. Alexander Lukashenko said that in a way it was a compromise for Belarus but a beneficial one. That’s why it is difficult to stumble at the relevance of these negotiations. What did Belarus and Belarusians end up in the end with then?
The most important issue is the price on gas. Many other issues come from this one. For instance the competitiveness of Belarusian products. If one producer buys gas, let’s say for a ruble, the other producer pays three, where is the competitiveness?
The principle of netback parity is even mentioned in the EEU documents.
By the way, Belarus must enter the single electricity market by 2019. And by 2025 to enter the single oil and gas market. Meanwhile, Belarus and Russia live in The Union State. That is why equal conditions for plants are determined politically.
The result of the negotiations in St. Petersburg was that the price on gas for Belarus will decrease.
According to the previously signed contract, Belarus will be paying about $130m for 1000 cubic meters of gas in 2017. However, there will be another contract later on, which means that the price will be new as well.
Russian “black gold”, which will be sent to Belarusian oil refineries to the full extent, will compensate Belarus’ expenses on “blue fuel”, while the gas contract with old prices is still in force. By loading its plants, Belarus will then be able to export this oil.
As for the duties against oil, they will stay in Belarus’ pocket (before Russia kept them).
The amount of money is not small, meaning that there are some benefits. It won’t do any harm to emphasize that Belarus’ petrochemistry is one of the most high tech in the region. As for the quality of petrol it occupies the first place among CIS countries.
Another advantage. Belarus will benefit from petrol supplies, or to be more exact, from their cancellation. Some time ago Russia insisted so that Belarusian oil refineries supplied Russia with a certain amount of fuel annually.
In 2016 Belarus had to supply 1 million tons of petrol to Russia.
If to look at this situation from a commercial point of view, it is a crippling burden for Belarusian oil refineries. As many as 150 billion dollars were lost. The two presidents agreed on cancelling the compulsory supplies, which means that the money stays in Belarus.
Belarus and Russia agreed on a financial cushion for the nearest time in St. Petersburg. The third loan tranche of the Eurasian Fund for Stabilization and Development to the Republic of Belarus was continuously postponed.
The amount involved is $300m.
A loan program of 2 billion dollars was signed with the Fund, which is seven loan tranches. Belarus has already received two; the third one should be credited to the account in autumn. Now there are guarantees that the fund will hasten the process of disbursal. What is more, Russia will wait and refinance the debt, which should have been paid in 2017.
It lets Belarus decrease the expenditures on paying the loan back.
It is possible that for as many as 23 Belarusian plants the Russian market will once again be opened in April. It means that there will be an additional source of income. And it is a possibility for the plants to increase it. It will probably create new jobs. All in all, it will be a growth in all social and economic aspects. The budget will gain extra currency earnings.
Image of products with a label “made in Belarus”.
It is a shame that director of Rosselhoznadzor, Mr Dankvert, refused visiting Belarus. Belarusian sausage doesn’t bite at all. Russian inspectors are sure to say that when they return back from Belarusian plants.
President Lukashenko and President Putin held negotiations on space cooperation. They discussed the manufacture of
a flight vehicle with a resolving power of 57cm on the base of Belarusian plants.
Russia is rather interested. It is an indication of trust, what is more, in the sphere where you can’t do without molecular accuracy and cosmic quality.
The two presidents obviously paid attention to military technical cooperation. Generally, this sector is an example of cooperation in the Union State, where integration is ahead of everything else. It was discussed by President Lukashenko and President Putin in St. Petersburg and the negotiations will continue in Bishkek.
Russia will help Belarus with the army disarmament.
Perfection of armed forces is a continuous and a rather expensive process. However, the allied assistance will let Belarus same considerable amounts of money in the state budget.