Reality and perspectives in the event context

Interaction between Belarus and Russia in their economic policies coordination will make it possible to more fully use the advantages of mutual cooperation

Integration is undoubtedly a more complex form of relations than just trade or industrial cooperation, although it is based on the same principles of mutual benefit. It is necessary to clearly understand that integration associations and all accompanying processes are the essence of the foreign economic policy of states, the result of their deliberate and purposeful activity. In short, they did not fully result from the functioning of the market or the operation of market mechanisms.

It is obvious that the integration of states is realized on the basis of the national interests of countries, and not on the basis of the interests of individual economic entities. The interest of Russia and Belarus in it is of the same nature – the need to expand living space. Undoubtedly, there are certain differences in approaches, which correspond to the development conditions of each country. For Belarus, integration is more connected with geo-economic interests related to improvement of access to natural resources and wider markets, for Russia it is more about geopolitical interests related to the preservation and expansion of friendly socio-economic space, transport and logistics corridors. At the same time, mutual trade, industrial and scientific and technological

cooperation are important for both countries. Due to the significant difference in the scale of the economies and industrial complexes of Russia and Belarus, the incomparability of integration RUSSIA effects for the partner countries was initially an objective condition for their interaction. Russia is the main trade partner of Belarus. Meanwhile, the Republic of Belarus ranks fourth in terms of the volume of trade between Russia and the countries of the world and first 47.9 percent – share of the total turnover of Belarus in 2020 among the CIS countries. The share of Belarus in Russia's foreign trade turnover in 2020 amounted to just over 5 percent. The share of Russia in the total turnover of Belarus in the same year amounted to 47.9 percent, including 45.2 percent of exports and 50.2 percent of imports. The most important goods supplied to the Russian market are milk and dairy products, trucks, tractors and semi-trailer trucks, meat and edible meat offal, furniture, plastic containers, medicines. Note that for the most part these are goods with high added value, products of the manufacturing industry. At the same time, almost half of Belarusian goods

Ranks 4th in terms of the volume of trade between Russia and the countries of the world and first among the CIS countries 45.2 percent of exports, 50.2 percent of imports В ней используются описательные элементы, такие как тема, конфликт, герои, место действия и заключение.

BELARUS Over 50 percent of Belarus GDP is formed through cooperation with Russia В ней используются текстовые возможности, такие как содержание, глоссарий, индекс, ярлыки, диаграммы, фотографии и графики.

BELTA

are made from Russian raw materials and components. This is not just trade, it is production cooperation. Currently, more than eight thousand Belarusian and Russian enterprises are connected by mutual deliveries of products. Among them – the production of vehicles, grain and forage harvesters, loaders, excavators, various specialized agricultural equipment, industrial equipment, household appliances, consumer goods and chemical products.

Cooperation between Belarus and Russia in the industrial sphere is an important factor in ensuring the competitiveness of both countries. As analysts note, mutual deliveries of intermediate industrial products between Russia and Belarus take place practically in the unchanging number of industries. This indicates a high level of complementarity and versatility of the industrial complexes of the two countries. By the way, for Russia, interaction in the field of industrial cooperation gives a positive balance of trade turnover. This means that the development of the Belarusian industrial complex, which entails an increase in imports of intermediate products from Russia, will also contribute to the growth of Russian industry.

The Russian Federation continues to be the main investor in the economy of the Republic of Belarus. At present, about 1,500 joint ventures have been created in Russia, more than 2,500 companies with Russian participation operate in Belarus, more than 60 investment projects are being implemented in various fields, including the Belarusian nuclear power plant, Omsk Carbon Black Plant in Mogilev, Nezhinsky GOK (investor – industrial and financial group "Safmar") and others. This area of activity, as a rule, involves enterprises with modern technologies that produce competitive products with high added value. So far, more than forty scientific and technical programs of the Union State have been implemented with the participation of the largest research, scientific-production and industrial organizations of both states. As a result of the implementation of the Union programs, unique samples of new equipment and technologies have been developed and introduced.

Recently, Russian-Belarusian cooperation at the regional level has also been developing, primarily between neighboring regions of the two countries. Belarus maintains direct trade and economic relations with 80 regions of the Russian Federation, including more than 60 regions – on the basis of intergovernmental agreements on longterm cooperation.

Despite the fact that Belarus and Russia are characterized by a similar level of economic development and similar dynamics of industrial production, their economic mechanisms are not compatible in everything, therefore integration requires a search for compromises and mutual concessions. Practice of the EAEU development has shown that rivalry in the field of economic policy leads to an increase in the conflict in international economic relations, confrontation between states. This, in turn, slows down the integration processes and leads to

Nuclear power plant is one of the landmark joint projects of Belarus and Russia

general problems, in particular, to the loss of positions in the world market.

Belarus, guided by national interests, at one time acted as one of the initiators, and later an active participant in the formation and development of integration associations in the post-Soviet space. The goal of the Eurasian economic integration both in the format of the Union State and the EAEU is simple and clear – to

create conditions for the free movement of goods, services, capital and labor, to pursue a coordinated economic policy. This makes it possible to significantly enhance the competitive advantages of manufacturers in both countries. Besides, Eurasian integration allows us to overcome the covid crisis and sanctions pressure with fewer losses. It has become the most important factor in maintaining stability in the region.

But further integration deepening requires a common understanding of a number of provisions by the political and scientific elites of the two countries. For example, the fact that cardinal changes in geo-economics and geopolitics have the same impact on the development prospects of both Belarus and Russia. That in the context of the growing uncertainty of international economic

relations and unfair competition, the role of state regulation of national economies and interstate coordination of foreign economic activity of the countriesmembers of the integration association is increasing.

Meanwhile, other countries also understand the benefits of the Eurasian economic integration as a whole. It is not for nothing that Serbia, Vietnam, Singapore, and partly Iran signed a free trade agreement with the EAEU. Egypt, Israel also expressed their intentions. Negotiations are underway with India.

In fact, strengthening of integration in the Union State of Belarus and Russia, the EAEU and the CIS in practice means expansion of trade and economic cooperation and deepening of international production cooperation,

which requires the formation of common markets and the coordination of economic policy. In turn, the adoption and approval of the road maps of the Union State shows that the interaction of Belarus and Russia in coordination of their economic policies will make it possible to more fully use the advantages of the international division of labor and mutual cooperation.

More than 50 percent of Belarus GDP is formed through cooperation with Russia, more than 60 percent of enterprises are included in cooperative chains. Belarus is one of the three largest trade partners of Russia.

Vladimir Velikhov

Pilot project is being prepared to be launched

Since the beginning of the year, foreign investments in the real sector of the Belarusian economy have reached about $7 billion. These are the data of the National Statistical Committee. The leading investors, which was easy to assume, are the economic entities of Russia. On the whole, they account for almost half of all incoming investments. In turn, Belarusian business entities in January-September invested $4.1 billion abroad. And a significant number of them – almost 80 percent – were addressed to Russian partners. All this undoubtedly indicates the priority of counter investment flows, which have a clear advantage over other areas of the investment movement.

BUTB.BY

FForms of investment, however, as well as other types of mutual RussianBelarusian cooperation, have been asserting themselves more and more actively lately. Just recently, information appeared that Karelia is ready to offer its dairy products precisely through the Belarusian Universal Commodity Exchange. Vladimir Labinov, Deputy Prime Minister of the Government of the Republic of Karelia – Minister of Agriculture and Fisheries, expressed interest in selling raw cow milk and other agricultural products on the exchange trading floor during a teleconference organized at the request of the Russian side. In his opinion, the experience of BUCE in the field of exchange trade in agricultural products can be used by Karelian enterprises in order to increase the efficiency of their trade and procurement activities. "Since raw milk is a perishable product and, taking into account long distances, it would be problematic to organize its deliveries to Belarus, we are primarily interested in the possibility of using the exchange mechanism when selling milk raw materials in Karelia from the neighboring regions of Russia. As far as I know, exchange trade in raw milk is developing quite dynamically in Belarus, so we would like to adopt this experience and try to sell the products of Russian dairy producers through your trading platform. Of course, in the future, if our pilot project is a success, the range of goods sold at the exchange trade will expand," – said Vladimir Labinov.

For his part, BUCE Chairman of the Board Aleksandr Osmolovsky, confirmed the exchange readiness to cooperate with the government of the Republic of Karelia not only in terms of trade in agricultural products, but also in any other commodity areas. At the same time, he noted that Russian companies are leading in the number and volume of transit transactions, therefore, the initiative to sell raw milk from Vologda, Kaliningrad, Pskov and other regions of the NorthWest Federal District in Karelia has every chance of success. – Transit transactions made by foreign companies on our electronic platform are one of the most promising areas for the development of exchange trade. Moreover, this mechanism is especially in demand among Russian bidders. In January-October, in this way they sold products at the amount of about $6 million. As for trade in raw milk, this is a commodity item with great potential, which we are gradually disclosing. So, if in 2019 14 thousand tons of raw milk was sold at the exchange trade, then in 2020 the sales volume amounted to 125 thousand tons. I am sure that this year we will cross this threshold as well. The price dynamics was also positive. This means that when Russian dairy producers come to our platform, they can expect a significant increase in revenue. Moreover, we are ready to organize separate trading sessions specifically for participants from the Republic of Karelia, which will allow Karelian enterprises to get the maximum economic effect from the use of the exchange mechanism," – stressed Aleksandr Osmolovsky.

As a result of the teleconference, an agreement was reached on working out technical and organizational issues of participation of enterprises of the Republic of Karelia in stock trading. At the same time, the Russian side offered to assist in informing Karelian agricultural enterprises about the possibilities and advantages of the Belarusian exchange floor. Meanwhile, today BUCE is one of the largest commodity exchanges in Eastern Europe. The main function of the exchange is to assist Belarusian enterprises in exporting products and to help foreign companies to enter the Belarusian market. Alexander Pimenov