Economic analyst Georgy Grits told STB TV why the United States lifted sanctions on two Belarusian bank and the Finance Ministry, sb.by reports
The US authorities have removed restrictions on Belinvestbank, the Development Bank and the Ministry of Finance, following the lifting of sanctions on the Belarusian Potash Company and Belaruskali.
“The reasoning behind this is that all these companies are directly linked to one investment project — the Nezhin Mining and Processing Plant. Following the withdrawal of the Russian investor from the project, the plant was left largely unclaimed, so the state took over management and ownership of its shares. If we are talking about bringing in a new investor, like an American company for example, the Finance Ministry handles the securities. The Development Bank also gets involved, as it had previously processed a $1bn loan from a Chinese investment bank. Meanwhile, Belinvestbank acts as a regular commercial bank, handling payments. The real question here is why this project became part of this big deal between Aleksandr Lukashenko and Donald Trump,” Georgy Grits noted.
According to the analyst, it’s essential to consider both Belarusian and American interests to apprehend the situation, “Potash fertilisers are a major export commodity for Belarus, generating over $2bn a year. This specific product came under sanctions, American and European both. Lithuania chipped in too, as it has no intention of allowing Belarusian goods into the country. From the US perspective, the situation is even more complicated. The Canada–US conflict is very relevant to this project. Around 90 percent of potash imports for American farmers come from Canada after all. If there are problems with Canada, the US needs some other sources of this strategically important commodity. Farmers, who make up a very large voting bloc for Donald Trump’s election campaign, need stable supplies. The Nezhin Mining and Processing Plant, which has the capacity to produce 2m tonnes of fertilizers, would make a big difference by giving the US more independence in this area.”
Georgy Grits emphasised that successful fertiliser exports generate revenue for the budget, which can then be used for social projects and defence purposes. Therefore, the project offers tangible benefits for an average Belarusian.
The US authorities have removed restrictions on Belinvestbank, the Development Bank and the Ministry of Finance, following the lifting of sanctions on the Belarusian Potash Company and Belaruskali.
“The reasoning behind this is that all these companies are directly linked to one investment project — the Nezhin Mining and Processing Plant. Following the withdrawal of the Russian investor from the project, the plant was left largely unclaimed, so the state took over management and ownership of its shares. If we are talking about bringing in a new investor, like an American company for example, the Finance Ministry handles the securities. The Development Bank also gets involved, as it had previously processed a $1bn loan from a Chinese investment bank. Meanwhile, Belinvestbank acts as a regular commercial bank, handling payments. The real question here is why this project became part of this big deal between Aleksandr Lukashenko and Donald Trump,” Georgy Grits noted.
According to the analyst, it’s essential to consider both Belarusian and American interests to apprehend the situation, “Potash fertilisers are a major export commodity for Belarus, generating over $2bn a year. This specific product came under sanctions, American and European both. Lithuania chipped in too, as it has no intention of allowing Belarusian goods into the country. From the US perspective, the situation is even more complicated. The Canada–US conflict is very relevant to this project. Around 90 percent of potash imports for American farmers come from Canada after all. If there are problems with Canada, the US needs some other sources of this strategically important commodity. Farmers, who make up a very large voting bloc for Donald Trump’s election campaign, need stable supplies. The Nezhin Mining and Processing Plant, which has the capacity to produce 2m tonnes of fertilizers, would make a big difference by giving the US more independence in this area.”
Georgy Grits emphasised that successful fertiliser exports generate revenue for the budget, which can then be used for social projects and defence purposes. Therefore, the project offers tangible benefits for an average Belarusian.
