Republic

Belarus, Russia agree to grant free access of goods to markets of two countries

Belarus and Russia have agreed to grant free access of goods to the markets of the two countries. This is the main outcome of the session of the Union State Council of Ministers held on March 23 in Minsk. The sides signed an intergovernmental agreement on the measures to develop trade-economic cooperation between Belarus and Russia. The two countries also concluded an agreement on the terms of Belarusian sugar delivery to Russia for 2007-2008. Belarus and Russia also signed a protocol on indirect taxes in export/import of services. The sides also struck another protocol on amendments and addenda into the agreement between the governments of Belarus and Russia on levying indirect taxes in export and import of goods, works and services. Prime minister of Belarus Sergei Sidorskiy said that the agreement on trade-economic relations is not only a framework agreement. This is a detailed document. It reflects the main positions of export-import operations between the two countries. “The main thing about the agreement is that it is aimed at accelerating the creation of the single customs union, Sergei Sidorskiy said. By signing the agreement we have repeatedly shown that the agreement is not about generalized approaches. It is about concrete areas, concrete terms which have been set before the ministries and agencies of the Russian Federation and Belarus on unifying the positions in the formation of the single customs area of the Union State. The chairman of the government of the Russian Federation, Mikhail Fradkov, said that the agreement “is aimed at lifting the restrictions in trade-economic relations. The whole set of documents which has been signed on key goods in the bilateral trade, first of all, on oil and gas, is secured in the agreement”. The document meets the international trade requirements. It is based “on the idea to apply the market economy principles to the bilateral relations," the Russian premier said. According to him, this contributed to the formation of a single economic space and meets the interests of the two countries. Russia intends to take consistent steps to bring the relations between Belarus and Russia onto a qualitatively better level, Mikhail Fradkov said. During the session of the Union State Council of Ministers, prime minister of Belarus Sergei Sidorskiy said that Belarus is increasing the high-tech imports from Russia which are necessary to carry out upgrade programs. Russian companies are present at big enterprises of Belarus which have been implementing upgrade initiatives. Sergei Sidorskiy cited the project on setting up newsprint mill in Shklov which will be infused with Russian high-tech equipment as an good example of the integration cooperation between Belarus and Russia. In the Union State the borders for Belarusians and Russians are transparent, prime minister of Belarus Sergei Sidorskiy said. A lot has been done in the Union State to ensure equal rights of citizens. “A good foundation has been laid in this important sphere”. The prime minister noted, the agreement on social security of citizens of Belarus and Russia comes into force on April 1. In January this year the Belarusian government requested a stabilisation credit from the government of Russia to the tune of $1.5 billion. Mikhail Fradkov has said the Russian government will soon decide upon this issue. It will be “a well-weighed but an uneasy decision because of the big sum of the credit,” he said. The decision to be taken should be beneficial for Russia and at the same time should help Belarus settle some of its issues. Belarus and Russia also intend to address the problem of queues at the border caused by a change in regulations of temporary registration of vehicles. “We try not to create artificial problems for each other, the Russian premier said. – No one likes the queues, and we will do our utmost to resolve the issue.” This issue spans beyond the framework of customs clearance legislation, he added. Russia is ready to consider the possibility of its participation in the nuclear plant project in Belarus. This issue has not been raised yet, the Russian premier said. Belarus is ready to consider proposals of foreign investors who would like to buy state property. Belarusian premier Sergei Sidorskiy said: “We are ready to accept any investor who would be willing to negotiate with Belarusian companies. Also we will welcome Russian companies if they desire to participate in privatization of big Belarusian companies.” In the past years the Belarusian government took a decision to privatize big companies of the country, he added. Belarus has the appropriate legislation, the Investment Code, which governs the investment process and sets out rules for foreign investors who would like to have business in Belarus. The two premiers have given their view of the problems in the oil processing sphere. An agreement was signed with Russian companies, under which “a fundamental scheme and formula for calculating the price of oil supply to Belarus from Russia has been agreed upon,” Sergei Sidorskiy said. However, the Belarusian premier has said he is surprised to hear once again “talks that Russian companies want to have a better profitability.” Belarus has increased profitability for Russian companies. “They generate more profit [in Belarus] than in Europe,” the Belarusian premier said.