Belarus’ First Deputy PM: Union State creates new development trends and demonstrates effective level of co-operation
The Union State is now testing a new model of integration construction, creating new trends and development trajectories – as stated by Belarus’ First Deputy Prime Minister, Nikolai Snopkov, at the recently held International Economic Forum in St. Petersburg
Mr. Snopkov recalled a widely promoted thesis: the geopolitical situation of recent years clearly indicates the formation of a multipolar world. “It is pleasant to state in this regard that the Eurasian integration space has been and still remains one of the polarities, and the union of Belarus and Russia is its core. I would like to note a rhythmic pace of the creation and implementation of the Union State programmes. When there is a real interest in co-operation here and now, we immediately move from words to concrete actions, thereby setting the vector of regional liaisons for other post-Soviet countries," he said.
The First Deputy Prime Minister added that, in 2014 (before the EAEU formation), the volume of Belarus-Russia bilateral trade amounted to 74 percent of the total turnover between the current members of the union, “By the end of 2022, the share of trade between Belarus and Russia in the same structure, within the group of five states, stood at 57 percent. At the same time, we have maintained the volume of mutual trade in value terms, which means that the share of mutual trade of our other partners in the Eurasian integration has significantly increased.”
Mr. Snopkov stressed that Belarus and Russia do not agree on anything that may damage the Eurasian processes, “It is the site of the Union State that is now testing a new model of integration construction, creating new trends, development trajectories and showing an exemplary and effective level of co-operation. In this regard, we can recall the gravitational model of economic co-operation when small countries naturally gravitate towards large economies located nearby. On the example of Belarus and Russia, this model, in our opinion, works flawlessly, with a mutually beneficial direction.”
The official mentioned some more facts: in 2022, the Belarus-Russia trade volume reached a record high: about $45.8bn. “Similar figure was registered only in 2012 – much due to the favourable external environment at that time, stable prices for oil and potash fertilisers," he said.
As noted by Mr. Snopkov, the results achieved are not the limit, “Even the World Bank's economic models show that – against the background of such records – we still have a potential to grow by at least $0.7-1bn through diversification of supplies and increasing exports in classic commodity items: meat, milk, fish, rapeseed oil, metal products, railway axles and wheels, wood materials.”
The First Deputy Prime Minister stressed that Belarus has always been an assembly shop of the USSR, and the two states’ economies should accordingly be mutually complementary. “The number of Russian citizens employed in organisations that interact with Belarusian enterprises is estimated to be about 6.5m people. Taking into account their families, the financial well-being of about 20m Russian citizens is directly or indirectly related to co-operation with Belarus,” he added.
At the same time, Mr. Snopkov stated that – based on the analysis – the Belarus-Russia bilateral trade is complementary only by 44 percent. “Unfortunately, I have to state this today. This is not a very high figure, and it indicates real competition between our countries and the presence of duplicate production facilities. At the same time, the creation of new duplicate production facilities continues, despite the fact that – under the conditions of sanctions and a significant reorientation of Belarusian exports to the Russian market – this creates high risks for Belarusian producers," he noted.
According to Mr. Snopkov, a new understanding of cross-country integration in trade and investment has been formed in recent years, and the usual forms of simple integration of commodity markets are already becoming obsolete. “Of course, they are important, but they are an addition to the depth of integration and co-operation being formed within the Union State. Integration processes are being filled with new content, based on new levels of technological development,” he emphasised.
