Belarus–Russia relations

Belarus–Russia relations

Russia remains the largest and most important partner for Belarus both in the political and economic fields. The "Treaty on Equal Rights of Citizens between Belarus and Russia" was signed in December 1998, covering employment, an access to medical care and education.

Economic relations

Belarus and Russia have been independent states since the breakup of the USSR in December 1991. In the very beginning of the separate existence, efforts had been made to escape from imposing barriers in mutual trade. In November 1992, the Free Trade Agreement (FTA) was signed. In January 1995, a protocol on the implementation of this FTA without exemptions was signed as well as the Agreement on the Customs Union. In May 1995, the border pole was symbolically dug out by the primeministers of the two countries. After protracted disputes and setbacks, the two countries' customs duties were unified as of March 2001 but the customs controls were soon restored. In terms of trade, almost half of Belarusian export goes to Russia. Due to the structure of Belarusian industry, Belarus relies heavily on Russia both for export markets and for the supply of raw materials and components.

The goal of the introduction of common currency had been mentioned numerous timessince the beginning of the 1990s. In ten years, the process of technical preparation finally started: Central banks of two countries signed a plan of coordinated activity for 2001-2005. In spite of that, one of the core issues remained unsettled; the Belarusian side was insisting on the coexistenceof two emission centres, while the Russian side neglected sharing of the prerogative. In fact, Russia assumed that Belarus would simply abandon its own currency and adopt the Russian rouble. However, even this option would have its negative implications for Russia. In particular, Russia would need to finance the deficit of the Belarusian budget, burdened by social programmes and subsidised nonprofitable state enterprises.

The crossborder trade and other links are especially important and often very fruitful for border regions. Economic agents can use institutional differences while minimising transportation expenditures. For the Russian provinces located east of Belarus, it is an absolutely unchallenged direction of trade, as it provides additional incomes.


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