{"id":81425,"date":"2024-04-22T21:06:48","date_gmt":"2024-04-22T18:06:48","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/81425\/"},"modified":"2026-03-09T20:10:49","modified_gmt":"2026-03-09T20:10:49","slug":"reliance-on-russia-fraught-with-long-term-economic-consequences","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/81425\/","title":{"rendered":"Reliance on Russia fraught with long-term economic consequences"},"content":{"rendered":"\n

By Ale\u015b Hudzija<\/em><\/p>\n\n\n\n

“Now we do not make a distinction between Russian and Belarusian goods. We have union goods,” said Viktor Yevtukhov, Russia’s deputy minister of industry and trade.<\/strong><\/p>\n\n\n\n

He noted that the two countries have taken industrial cooperation to a new level. \u00a0<\/strong><\/p>\n\n\n\n

Now “it doesn’t matter whose components, raw materials and parts are used in the manufacture of a product,” Yevtukhov was quoted as saying by Belarus 1 TV <\/em>on March 31.<\/p>\n\n\n\n

“Whether it’s made in Belarus or Russia, if we confirm that it’s only our manufacturers, then accordingly, all the rights arising in this regard in terms of public procurement and access to various support measures will apply to Russian and Belarusian companies.”<\/p>\n\n\n\n

Common energy market still a dream<\/strong><\/h2>\n\n\n\n

Belarus and Russia have forged close economic ties, but Minsk is still not satisfied.<\/p>\n\n\n\n

“If we are aggressors, frankly speaking, then equal conditions for economic entities and people should be equal. This is what we need,” \u0141uka\u0161enka told Russian President Vladimir Putin on April 11.<\/p>\n\n\n\n

Minsk’s ultimate goal is to persuade Moscow to establish common markets for gas, oil and petroleum products to equalize energy costs for manufacturers in Belarus and Russia.<\/p>\n\n\n\n

Minsk has spent years convincing Moscow of the need to create a level playing field for Belarusian and Russian companies.<\/p>\n\n\n\n

Moscow uses energy to increase its political influence. A common energy market for Minsk is like a carrot hanging in front of a donkey.<\/p>\n\n\n\n

“Why the hell would anyone need such a union?” \u0141uka\u0161enka said in 2019, frustrated with the lack of progress toward the energy market.<\/p>\n\n\n\n

Moscow supplies Belarus with cheap natural gas and oil on the basis of one-year contracts, whereas Minsk is pressing for a long-term arrangement.<\/p>\n\n\n\n

There is nothing \u0141uka\u0161enka can do to force Moscow into concessions. If he tried to withdraw from the alliance, Moscow would remind him of his debts, limit Belarusian food exports or even cut off gas or oil supply.<\/p>\n\n\n\n

Moscow has plenty of ways to punish Minsk, so \u0141uka\u0161enka can all-afford criticizing Putin.<\/p>\n\n\n\n

Moreover, to repay the Kremlin for its support in 2020, the Belarusian ruler gradually cedes elements of Belarus’ political, economic and fiscal sovereignty to Moscow.<\/p>\n\n\n\n

His supporters are aware of it, but they are hoping that benefits will outweigh concessions if equal economic conditions are created for the people and businesses in the two countries.<\/p>\n\n\n\n

Pitfalls of integration<\/strong><\/h2>\n\n\n\n

Statistical data shows a sharp rise in mutual trade, tourism and investment.<\/p>\n\n\n\n

Belarus\u2019 trade, in percent

<\/strong>All data
Russia’s share of imports
Russia’s share of exports
CIS share of imports
CIS share of exports
<\/p>\n\n\n\n

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