{"id":101639,"date":"2024-08-22T14:57:17","date_gmt":"2024-08-22T11:57:17","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/101639\/"},"modified":"2026-03-09T20:10:49","modified_gmt":"2026-03-09T20:10:49","slug":"belarus-frantically-searching-for-new-export-markets","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/101639\/","title":{"rendered":"Belarus frantically searching for new export markets"},"content":{"rendered":"\n

Belarus is looking to expand ties with economically weak undemocratic countries in Latin America, Africa and Asia amid tension with Europe.<\/strong><\/p>\n\n\n\n

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\n (Ferdinand Herndler \/ pixabay.com)<\/span>\n <\/div>\n <\/figcaption>\n<\/figure>\n\n\n\n

Trying one\u2019s luck on other continents<\/strong><\/h2>\n\n\n\n

Belarus has an export-reliant economy, with the country producing more than it can consume. However, it also needs to import materials that are not available domestically. This makes Belarus dependent on external markets.<\/p>\n\n\n\n

After Russia hiked energy prices in the late 2000s, Alaksandar \u0141uka\u0161enka started looking for new markets, saying he wanted to try his luck in another part of the planet.<\/p>\n\n\n\n

Following the 2020 protests and Russia\u2019s 2022 invasion of Ukraine, Belarus saw a sharp decline in exports to the European Union and Ukraine.<\/p>\n\n\n\n

Minsk has been looking for new markets in Latin America, Africa and Asia. Officials have recently visited Cuba, Venezuela, Nicaragua, Equatorial Guinea, Mongolia and North Korea.<\/p>\n\n\n\n

Insolvency<\/strong><\/h2>\n\n\n\n

People in these countries know next to nothing about Belarus. Potential customers there are expecting to buy Belarus-made harvesters, tractors, food and fertilizers on the cheap. Belarusian officials think that since there is brisk demand they can sell their goods successfully.<\/p>\n\n\n\n

Competitors do not really have a presence in these markets because, for example, Venezuela or Cuba do not have much cash to pay for imports.<\/p>\n\n\n\n

They are looking for suppliers willing to sell on credit, with payment in installments or with a long delay. Governments can change and renounce their debts.<\/p>\n\n\n\n

The Belarusian government is ready to take risks. It counts on luck, shared beliefs and personal connections, as it did in dealings with Venezuela under Hugo Ch\u00e1vez<\/em>. \u0141uka\u0161enka is confident that personal agreements work better than contracts.<\/p>\n\n\n\n

The government\u2019s choice of partners is surprising, given that Venezuela, North Korea, Cuba, Mongolia, Nicaragua, Equatorial Guinea and Eswatini accounted for only 0.36% of Belarusian exports over the past decade.<\/p>\n\n\n\n

Imports from these countries were even lower, at 0.35%. Their economies are struggling, and it is unclear whether there are any business opportunities for Belarusian companies.<\/p>\n\n\n\n

Besides, these countries cannot offer Belarus technologies that it used to find in the West.<\/p>\n\n\n\n

Shadow economy as last resort<\/strong><\/h2>\n\n\n\n

Hit by sanctions for continuing repression and military aggression, Belarus and Russia are exploring new avenues for selling their goods.<\/p>\n\n\n\n

Prime Minister Mikhail Mishustin, a technocrat, is leading Russia\u2019s effort to mitigate the sanctions. It is all about creating databases and parallel settlement systems. This digital approach is working well for foreign economic activity, but there are some challenges at home due to insufficient digitalization.<\/p>\n\n\n\n

In Belarus, Prime Minister Raman Ha\u0142o\u016d\u010danka, who previously oversaw arms exports, is skilled in scheming.<\/p>\n\n\n\n

While Russia relies on a market-oriented approach and digitization, Belarus is more likely to find workarounds that are not based on market mechanisms (although Russia does not shy away from it too).<\/p>\n\n\n\n

Goods do find buyers and transactions are not disclosed. However, it may be difficult to legalize revenue from shadow transactions and integrate it in the open economy.<\/p>\n\n\n\n

Half-legal arrangements may require companies to keep two sets of books and make it easier for executives to enrich themselves at the expense of public funds.<\/p>\n\n\n\n

Shadow economies are usually run by dishonest personalities.<\/p>\n\n\n\n

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