Belarus willing to raise funds in Asia to substitute EU funding in joint investment projects – Golovchenko
MINSK, Jul 5 - PrimePress. The government of Belarus is ready to substitute the European part of funding under joint investment projects in the context of the European Union sectoral sanctions with funds from other sources, in particular, from Asian countries, Prime Minister of Belarus Roman Golovchenko said on July 4, 2021 on Belarus-1 TV channel.<br> <br> “We had and still have a large package of projects already approved by European financial institutions. The Union may yet adopt some more clarifying acts. As far as I know, the sanctions do not apply to previously signed agreements, but even if they put them on hold for some reason or terminate them, we know how to substitute those funds. As a matter of fact, Europe does not have all the money. We are working with Asian investors and funds of some other countries. It may take some time, but, in general, we are set and intend to simply substitute those funds with our own or borrowed somewhere in the worst case scenario,” said Golovchenko.<br> <br> Earlier, the Belarusian government stated the interest in raising around $1 billion from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in 2020, including in direct lines of credit for Belarusian state banks and major infrastructure projects. The EBRD’s loan portfolio in Belarus currently totals around €1 billion. Joint projects with the bank in the financial, housing and utilities, and transport infrastructure sectors are at various stages of implementation.<br> <br> As previously reported, on June 24, 2021, the EU Council imposed sanctions against seven sectors of the Belarusian economy, pointing at the escalation of human rights violations in Belarus, and the incident with the forced landing of the Ryanair plane in Minsk on May 23, 2021.<br> <br> The EU Council prohibited to directly or indirectly purchase, sell, 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. The ban targets bonds issued by Belarus, Belarus’ government, its public bodies, corporations or agencies.<br> <br> 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 sanctions target a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50% by the above-listed entities; any legal person, entity or body acting on behalf or at the direction of the above-listed entities.<br> <br> The prohibitions do not apply to loans or credits that have a specific and documented objective to provide financing for non-prohibited imports or exports of goods and non-financial services between the Union and any third State, including the expenditure for goods and services from another third State that is necessary for executing the export or import contracts.<br> <br> The government of Belarus, state agencies, corporations, or agencies, and entities acting at their direction are prohibited from being insured or reinsured by the EU.<br> <br> Also prohibited are any payments or disbursements by the EIB in connection with any existing agreements with the Republic of Belarus or its state agencies, continuation of EIB contracts for technical assistance services.<br> <br> In accordance with the decision of the EU Council, the EU member states will take necessary measures to limit the participation of multilateral development banks, of which they are members, in particular, the IBRD and the EBRD, in the affairs of Belarus. They will vote against granting new loans or other forms of financing to state organizations, without affecting projects that finance private sector support for small and medium-sized enterprises.<br> <br> All EU bans on Belarus are not meant to prejudice the implementation of contracts signed before June 25, 2021. End<br> <br>
2021-07-05
Primepress
Belarus willing to raise funds in Asia to substitute EU funding in joint investment projects – Golovchenko
“We had and still have a large package of projects already approved by European financial institutions. The Union may yet adopt some more clarifying acts. As far as I know, the sanctions do not apply to previously signed agreements, but even if they put them on hold for some reason or terminate them, we know how to substitute those funds. As a matter of fact, Europe does not have all the money. We are working with Asian investors and funds of some other countries. It may take some time, but, in general, we are set and intend to simply substitute those funds with our own or borrowed somewhere in the worst case scenario,” said Golovchenko.
Earlier, the Belarusian government stated the interest in raising around $1 billion from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in 2020, including in direct lines of credit for Belarusian state banks and major infrastructure projects. The EBRD’s loan portfolio in Belarus currently totals around €1 billion. Joint projects with the bank in the financial, housing and utilities, and transport infrastructure sectors are at various stages of implementation.
As previously reported, on June 24, 2021, the EU Council imposed sanctions against seven sectors of the Belarusian economy, pointing at the escalation of human rights violations in Belarus, and the incident with the forced landing of the Ryanair plane in Minsk on May 23, 2021.
The EU Council prohibited to directly or indirectly purchase, sell, 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. The ban targets bonds issued by Belarus, Belarus’ government, its public bodies, corporations or agencies.
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 sanctions target a legal person, entity or body established outside the Union whose proprietary rights are directly or indirectly owned for more than 50% by the above-listed entities; any legal person, entity or body acting on behalf or at the direction of the above-listed entities.
The prohibitions do not apply to loans or credits that have a specific and documented objective to provide financing for non-prohibited imports or exports of goods and non-financial services between the Union and any third State, including the expenditure for goods and services from another third State that is necessary for executing the export or import contracts.
The government of Belarus, state agencies, corporations, or agencies, and entities acting at their direction are prohibited from being insured or reinsured by the EU.
Also prohibited are any payments or disbursements by the EIB in connection with any existing agreements with the Republic of Belarus or its state agencies, continuation of EIB contracts for technical assistance services.
In accordance with the decision of the EU Council, the EU member states will take necessary measures to limit the participation of multilateral development banks, of which they are members, in particular, the IBRD and the EBRD, in the affairs of Belarus. They will vote against granting new loans or other forms of financing to state organizations, without affecting projects that finance private sector support for small and medium-sized enterprises.
All EU bans on Belarus are not meant to prejudice the implementation of contracts signed before June 25, 2021. End