Belarus’ restrictions on European goods transit to put pressure on Belarusian ruble – expert
MINSK, Jul 8 - PrimePress. Belarus will put pressure on its national currency by restricting transit of European goods, Director of the ACRA Sovereign Ratings and Macroeconomic Analysis Group Mikhail Nikolayev told RIA Novosti.<br> <br> As previously reported, President of Belarus Alexander Lukashenko held on July 6 a meeting on countering Western sanctions. He did not rule out a possibility of restricting transit through the country in case the West imposed new sanctions, and instructed the government to look at foreign companies that operate in Belarus and transit of goods through the country. He believes that restrictions are advisable in relation to German companies.<br> <br> “Apart from disruptions in supply chains, restrictions on transit of goods of European countries will reduce the receipts of foreign exchange, which will put additional pressure on the national currency,” Nikolayev said, stressing that Belarus’ economy is largely dependent on foreign exchange earnings, and the provision of services is one of their sources. <br> <br> “In 2020, the balance of the export of services stood at $3.9 billion, of which transportation services accounted for about a half,” Nikolayev said. In 2020, the republic generated about $300 million in revenues from the provision of services to Germany.<br> <br> According to official statistics, Belarus-EU trade turnover in 2020 amounted to $11.9 billion (exports – $5.4 billion, imports – $6.5 billion). Trade with the EU in the first quarter of 2021 accounted for 21% of Belarus’ total foreign trade turnover.<br> <br> As previously reported, the EU Council introduced on June 25, 2021 sanctions against largest sectors of Belarus’ economy. The sanctions prohibit direct or indirect sale, supply, transfer or export to any natural or legal person, entity or body in Belarus or for use in Belarus of goods used for the production or manufacturing of tobacco products; the purchase, import or transfer from Belarus of petroleum products, potassium chloride products. 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 EU member states will take the necessary measures to limit the involvement of multilateral development banks in Belarus. The prohibitions shall be without prejudice to the execution of contracts concluded before 25 June 2021 or ancillary contracts necessary for the execution of such contracts.<br> <br> The Council of the European Union (EU) at the level of foreign ministers of EU member states approved on 21 June 2021 the fourth package of individual sanctions on Belarus targeting 78 individuals and eight entities. The list of persons and entities hit by the sanctions includes MAZ, BelAZ, New Oil Company, Belaeronavigatsia air traffic service company, Bremino Group, Logex and Globalcustommanagement logistics companies, Sohra (exporter of Belarusian equipment). <br> <br> The United States on 21 June 2021 introduced sanctions against Belarus’ 16 individuals and 5 entities in response to human rights abuse and the Ryanair diversion incident. The United Kingdom (UK) on June 21 imposed sanctions against 11 individuals and two entities of Belarus after the Ryanair plane incident, as well as in response to human rights violations and suppression of democracy. Canada on 21 June 2021 imposed sanctions against 17 individuals and five entities of Belarus after the Ryanair plane incident and in response to human rights abuse.<br> <br> After the August 2020 presidential elections in Belarus, a political crisis began in the country. The authorities responded to the protests of citizens who disagreed with the election results with harsh repression and persecution. Since October 2020, the EU has already introduced three packages of (mostly targeted) sanctions against the Belarusian authorities. End<br> <br>
2021-07-08
Primepress
Belarus’ restrictions on European goods transit to put pressure on Belarusian ruble – expert
As previously reported, President of Belarus Alexander Lukashenko held on July 6 a meeting on countering Western sanctions. He did not rule out a possibility of restricting transit through the country in case the West imposed new sanctions, and instructed the government to look at foreign companies that operate in Belarus and transit of goods through the country. He believes that restrictions are advisable in relation to German companies.
“Apart from disruptions in supply chains, restrictions on transit of goods of European countries will reduce the receipts of foreign exchange, which will put additional pressure on the national currency,” Nikolayev said, stressing that Belarus’ economy is largely dependent on foreign exchange earnings, and the provision of services is one of their sources.
“In 2020, the balance of the export of services stood at $3.9 billion, of which transportation services accounted for about a half,” Nikolayev said. In 2020, the republic generated about $300 million in revenues from the provision of services to Germany.
According to official statistics, Belarus-EU trade turnover in 2020 amounted to $11.9 billion (exports – $5.4 billion, imports – $6.5 billion). Trade with the EU in the first quarter of 2021 accounted for 21% of Belarus’ total foreign trade turnover.
As previously reported, the EU Council introduced on June 25, 2021 sanctions against largest sectors of Belarus’ economy. The sanctions prohibit direct or indirect sale, supply, transfer or export to any natural or legal person, entity or body in Belarus or for use in Belarus of goods used for the production or manufacturing of tobacco products; the purchase, import or transfer from Belarus of petroleum products, potassium chloride products. 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 EU member states will take the necessary measures to limit the involvement of multilateral development banks in Belarus. The prohibitions shall be without prejudice to the execution of contracts concluded before 25 June 2021 or ancillary contracts necessary for the execution of such contracts.
The Council of the European Union (EU) at the level of foreign ministers of EU member states approved on 21 June 2021 the fourth package of individual sanctions on Belarus targeting 78 individuals and eight entities. The list of persons and entities hit by the sanctions includes MAZ, BelAZ, New Oil Company, Belaeronavigatsia air traffic service company, Bremino Group, Logex and Globalcustommanagement logistics companies, Sohra (exporter of Belarusian equipment).
The United States on 21 June 2021 introduced sanctions against Belarus’ 16 individuals and 5 entities in response to human rights abuse and the Ryanair diversion incident. The United Kingdom (UK) on June 21 imposed sanctions against 11 individuals and two entities of Belarus after the Ryanair plane incident, as well as in response to human rights violations and suppression of democracy. Canada on 21 June 2021 imposed sanctions against 17 individuals and five entities of Belarus after the Ryanair plane incident and in response to human rights abuse.
After the August 2020 presidential elections in Belarus, a political crisis began in the country. The authorities responded to the protests of citizens who disagreed with the election results with harsh repression and persecution. Since October 2020, the EU has already introduced three packages of (mostly targeted) sanctions against the Belarusian authorities. End