New sanctions could drain Belarus’ FX reserves, reduce export earnings - S&P Global Ratings
<p> MINSK, Jun 3 - PrimePress. Possible new EU-led sanctions against Belarus could reduce the country’s export earnings and lead to further drains in already-modest net central bank international reserves, S&P Global Ratings said in a report published on June 2. </p> <p> </p> <p> Belarus outraged the West when it forced the Ryanair flight from Athens to Vilnius to land in its capital Minsk on May 23 to arrest a dissident journalist and his girlfriend. </p> <p> </p> <p> “Potential new EU-led sanctions against Belarus following the grounding of a civilian airliner in its airspace could reduce export earnings and lead to further drains in already-modest net central bank international reserves,” S&P said. </p> <p> </p> <p> If implemented, new stricter sanctions “could have adverse implications for Belarus' already-fragile economic, balance-of-payments, and financial stability.” </p> <p> </p> <p> “Broader sanctions would require a coordinated EU position and it is not certain that they will materialize. Should these further isolate Belarus, its economic fortunes will depend even more on Russia’s willingness to provide support,” S&P said. </p> <p> </p> <p> The ongoing confrontation with the EU and the U.S., as well as the limited number of alternative sources of funding, are likely to make Belarus even more dependent on Russia's willingness to support it. Russia’s financial support to the Belarusian government has been gradually decreasing in recent years. In this regard, it is currently unclear to what extent any additional support from Russia would compensate Belarus for the loss of access to external sources of liquidity in the event of new sanctions, the report says. </p> <p> </p> <p> Belarus’ foreign exchange reserves stood at $7.278 billion as of May 1, which is less than a safe level (reserves cover the equivalent of at least three months of imports). The forecast for the end of 2021 is at least $6 billion. </p> <p> </p> <p> EU countries announced the possibility of extending sanctions on Belarusian exports; in particular, deliveries of potash fertilizers, oil products and timber to the European market may be banned. These are the main export commodities of Belarus. End </p> <p> </p>
2021-06-04
Primepress
New sanctions could drain Belarus’ FX reserves, reduce export earnings - S&P Global Ratings
MINSK, Jun 3 - PrimePress. Possible new EU-led sanctions against Belarus could reduce the country’s export earnings and lead to further drains in already-modest net central bank international reserves, S&P Global Ratings said in a report published on June 2.
Belarus outraged the West when it forced the Ryanair flight from Athens to Vilnius to land in its capital Minsk on May 23 to arrest a dissident journalist and his girlfriend.
“Potential new EU-led sanctions against Belarus following the grounding of a civilian airliner in its airspace could reduce export earnings and lead to further drains in already-modest net central bank international reserves,” S&P said.
If implemented, new stricter sanctions “could have adverse implications for Belarus' already-fragile economic, balance-of-payments, and financial stability.”
“Broader sanctions would require a coordinated EU position and it is not certain that they will materialize. Should these further isolate Belarus, its economic fortunes will depend even more on Russia’s willingness to provide support,” S&P said.
The ongoing confrontation with the EU and the U.S., as well as the limited number of alternative sources of funding, are likely to make Belarus even more dependent on Russia's willingness to support it. Russia’s financial support to the Belarusian government has been gradually decreasing in recent years. In this regard, it is currently unclear to what extent any additional support from Russia would compensate Belarus for the loss of access to external sources of liquidity in the event of new sanctions, the report says.
Belarus’ foreign exchange reserves stood at $7.278 billion as of May 1, which is less than a safe level (reserves cover the equivalent of at least three months of imports). The forecast for the end of 2021 is at least $6 billion.
EU countries announced the possibility of extending sanctions on Belarusian exports; in particular, deliveries of potash fertilizers, oil products and timber to the European market may be banned. These are the main export commodities of Belarus. End