Posted: 14.12.2022 11:37:00

Opinion: Belarus, Russia effectively resist illegal sanctions policy of the West

Belarus and Russia are effectively resisting the illegal sanctions policy and the hybrid war of the West – as noted by Belarusian economist Mikhail Kovalev

According to the expert, Russia has always been the main strategic partner for Belarus. However, in conditions of unfriendly actions on the part of some countries, the implementation of previously defined strategic directions aimed at development of economic integration is accelerating.

“At the moment, the two countries demonstrate a high level of integration, and this has become possible only due to regular meetings of our leaders: Aleksandr Lukashenko and Vladimir Putin. They have approved 28 Union State programmes, which contribute to a high level of resolution of issues in difficult times of the sanctions pressure. We see that the integration model works, making it possible to solve the topical issues. Importantly, it enables our enterprises and the financial system to operate. With this in view, the agreements on the allocation of credit resources by Russia to finance import-substituting projects will help our countries avoid dependence on certain components coming from unfriendly countries. Our states will develop, and all socio-economic programmes will be implemented,” Mr. Kovalev said.

Not long ago, an intergovernmental agreement was signed on the allocation of a loan to Belarus worth 105bn Russian Roubles for implementing import-substituting projects. By now, the parties have confirmed their readiness to start financing twelve of them. “They will create new jobs, generate taxes and strengthen the national economy. Actually, comprehensive co-operation with Russia is an optimal and beneficial way to ensure Belarus’ safe and sustainable development and to improve the welfare of its citizens. It is already known that seven projects worth about $330m – mainly related to the field of mechanical engineering – will be launched by the end of the year. Financing of Gomselmash’s project will become one of the first under the Russian credit line. Here, production of import-substituting complex technical units for Belarusian and Russian manufacturers of agricultural machinery will be set up,” the economist added.

Mr. Kovalev noted that over 80 percent of the allocated funds will go to civil projects, and the rest will finance the ones of the military-industrial complex, including development of microelectronics.

“Our country has retained the appropriate facilities, and we can make microchips. We should establish production of microchips and microcircuits for their further use in production of electronics,” the economist said. “Russia is the main market for manufacturers of Belarusian microelectronics, accounting for up to 90 percent of their exports. The enterprises of Roscosmos, Rosatom and the Defence Ministry are among the main consumers.”

Interestingly, the loan will be allocated not in Dollars, but in Russian Roubles at an equivalent exchange rate. According to Mr. Kovalev, this will become another step in getting rid of the dictates of Western currencies in bilateral trade in the Union State and in multilateral trade in Eurasian associations in the future.