Belarus to substitute Western financing with commercial loans from Russia amid intensifying pressure of EU sanctions - Golovchenko
<p> MINSK, Jul 19 - PrimePress. Belarus will substitute Western funding with commercial loans from Russia amid increasing sanctions pressure from the European Union (EU), Prime Minister of Belarus Roman Golovchenko said on 16 July during a working visit to Vitebsk. </p> <p> </p> <p> “We used to borrow money in the West, in Western banks, both commercial and institutions like the European Investment Bank and the European Bank for Reconstruction and Development. But now they have put us 'on hold’. We had already planned projects with them, so we will replace them with lending institutions in Russia,” Sputnik Belarus reports citing Golovchenko as saying. </p> <p> </p> <p> According to Golovchenko, lending will be on commercial terms - with interest payments charged. He also clarified that the idea is not to draw new interstate loans, but “in fact, it is about maintaining the volume of trade finance within the interbank limits”. </p> <p> </p> <p> The prime minister did not specify what volumes of credit support from Russia might be in question: “When agreements are reached, this will be announced”. </p> <p> </p> <p> Kremlin spokesman Dmitry Peskov said on 14 July that following the meeting of Putin and Lukashenko in St Petersburg on July 13 the Russian government had been instructed to deal with the technical aspects of support for Belarus amid the Western sanctions. He said that Belarus would receive credit support in connection with the tax manoeuvre in Russia; the volume of this support will be determined in the near future. </p> <p> </p> <p> As previously reported, the EU Council on 25 June 2021 introduced sanctions against largest sectors of Belarus’ economy entities in response to human rights abuse by Belarus authorities and the Ryanair diversion incident of 23 May 2021. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The ban also affects bonds issued by major credit or other institutions established in Belarus with over 50 % public ownership or control as of 29 June 2021 (Belarusbank, Belinvestbank, Belagroprombank). The government of Belarus, public bodies, corporations or agencies, or entities acting at their direction, are prohibited from acquiring insurance or reinsurance services from the EU. Any payments or disbursements by the European Investment Bank in connection with any existing agreements with the Republic of Belarus or its public authorities shall be prohibited. The ban also applies to continuation of EIB technical aid contracts. End </p>
2021-07-20
Primepress
Belarus to substitute Western financing with commercial loans from Russia amid intensifying pressure of EU sanctions - Golovchenko
MINSK, Jul 19 - PrimePress. Belarus will substitute Western funding with commercial loans from Russia amid increasing sanctions pressure from the European Union (EU), Prime Minister of Belarus Roman Golovchenko said on 16 July during a working visit to Vitebsk.
“We used to borrow money in the West, in Western banks, both commercial and institutions like the European Investment Bank and the European Bank for Reconstruction and Development. But now they have put us 'on hold’. We had already planned projects with them, so we will replace them with lending institutions in Russia,” Sputnik Belarus reports citing Golovchenko as saying.
According to Golovchenko, lending will be on commercial terms - with interest payments charged. He also clarified that the idea is not to draw new interstate loans, but “in fact, it is about maintaining the volume of trade finance within the interbank limits”.
The prime minister did not specify what volumes of credit support from Russia might be in question: “When agreements are reached, this will be announced”.
Kremlin spokesman Dmitry Peskov said on 14 July that following the meeting of Putin and Lukashenko in St Petersburg on July 13 the Russian government had been instructed to deal with the technical aspects of support for Belarus amid the Western sanctions. He said that Belarus would receive credit support in connection with the tax manoeuvre in Russia; the volume of this support will be determined in the near future.
As previously reported, the EU Council on 25 June 2021 introduced sanctions against largest sectors of Belarus’ economy entities in response to human rights abuse by Belarus authorities and the Ryanair diversion incident of 23 May 2021. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. Securities of large credit institutions or other institutions with more than 50% state ownership or control as of 29 June 2021 are also prohibited. The ban also affects bonds issued by major credit or other institutions established in Belarus with over 50 % public ownership or control as of 29 June 2021 (Belarusbank, Belinvestbank, Belagroprombank). The government of Belarus, public bodies, corporations or agencies, or entities acting at their direction, are prohibited from acquiring insurance or reinsurance services from the EU. Any payments or disbursements by the European Investment Bank in connection with any existing agreements with the Republic of Belarus or its public authorities shall be prohibited. The ban also applies to continuation of EIB technical aid contracts. End