Belarus needs to reorient trade, finance towards friendly markets – Lukashenko

<p> MINSK, Dec 3 - PrimePress. Belarus needs to reorient itself to friendly trade and financial markets, and ignore the attacks of the West. President of Belarus Alexander Lukashenko made a statement to this effect at the session held on 3 December to discuss the country’s social and economic development in 2022. </p> <p>   </p> <p> “Our economy is under unprecedented external pressure. Aggressive rhetoric persists. This means we should conduct a thorough analysis of the measures we take. I think it has already been done,” Lukashenko said. </p> <p>   </p> <p> In his words, Belarus had been preparing for the sanctions pressure “at least half a year in advance, and there is a so-called anti-crisis command centre in the government". Lukashenko added that the country had managed to maintain economic growth and prevent most of the problems from affecting people’s everyday life. </p> <p>   </p> <p> “The export of goods and services increased by nearly 33%, the country got additional $8.5 billion. There is a record-high foreign trade surplus – more than $2.7 billion,” Lukashenko said. According to Lukashenko, thanks to balanced macroeconomic policy there is a good balance of payments in the country, i.e. the sustainable course and stability on the financial market. </p> <p>   </p> <p> Lukashenko emphasized that export growth is key to strengthening public trust in the home currency and bank deposits. “The government believes that export should be a priority next year. It makes perfect sense. After all, as long as we have an opportunity to sell and secure a foothold on global markets (and this will not last long), we should act. If we increase foreign exchange earnings, we will have a strong Belarusian ruble. The population will stop being cautious and will put their money on bank deposits or invest in bonds,” said Lukashenko. </p> <p>   </p> <p> Thus, in his opinion, the base for long-term investment will be progressively expanding. “This is a task not only for the government, but for the entire banking sector. Moreover, investments are really dwindling,” Lukashenko said. </p> <p>   </p> <p> He noted that the draft budget for 2022 runs a deficit. In his context, he urged the government to be more frugal and trim unnecessary spending. Lukashenko emphasized that despite any difficulties Belarus has no right to lose its reputation as an impeccable payer of its public debt liabilities. </p> <p>   </p> <p> As previously reported, after the August 2020 presidential election in Belarus a political crisis began. The EU, UK, US and Canada has been gradually imposing sanctions against Belarusian officials as well as individual businesses, accusing Minsk of election rigging and abuse of human rights. The EU has imposed individual and economic sectoral sanctions since 25 June 2021. In particular, EU restrictions target Belarus’ trade in oil products, potash fertilizers, raw materials and equipment for the production of tobacco and tobacco products. </p> <p>   </p> <p> The U.S. Department of the Treasury on 3 June 2021 re-imposed full blocking sanctions against nine Belarusian state-owned enterprises previously granted relief under a series of General Licenses by the Treasury Department (Belneftekhim Concern and its U.S. representative office, as well as Belneftekhim-controlled Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk-Steklovolokno, and Belarusian Oil Trading House). </p> <p>   </p> <p> On 9 August 2021, the United States imposed sanctions on major sectors of the Belarusian economy, including the potash and oil refining industry, government securities and money market instruments, as well as dual-use goods and technologies and the aviation industry. </p> <p>   </p> <p> On 2 December 2021, the EU, the US, the UK and Canada adopted new sanctions against Belarus. In particular, the U.S. expanded its Belarus sanctions list by including another 20 Belarusian individuals, 12 legal entities and two aircraft; the EU added 17 individuals and 11 legal entities, and the UK imposed sanctions on Belaruskali and eight individuals. </p> <p>   </p> <p> A lot of economic sanctions have not yet become fully effective. For example, the US sanctions on exports of Belarusian potash fertilizers will be effective from 8 December 2021, while the EU sanctions only apply to new contracts. </p> <p>   </p> <p> Thus, Belarus' gross domestic product increased by 2.4% year on year in January-October 2021 to Br143.259 billion ($58.049 billion, according to the exchange rate of the National Bank of Belarus). </p> <p>   </p> <p> Belarus’ foreign exchange revenues from exports of goods, services, non-financial transfers of companies and private households increased by 31.8% year on year in January-September 2021 to $34.981 billion. </p> <p>   </p> <p> Exports of goods from Belarus increased by 35.9% year on year in January-October 2021 up to $31.923 billion, including to the Commonwealth of Independent States by 30.4% to $18.858 billion, to the Eurasian Economic Union - by 23.7% to $14.089 billion, to the Russian Federation - also by 23.7% to $13.237 billion. Exports of Belarusian goods to non-CIS countries increased by 44.9% up to $13.065 billion in January-October 2021, while to the EU - 1.9 times up to $7.95 billion. End </p>

2021-12-04

Primepress