Russia wants tie Belarus to Russian ruble

In his first address to the Federal Assembly, Russian President Dmitry Medvedev urged to use Russian ruble instead of American dollar in settlement with many countries, especially the CIS countries. Economists think it is unprofitable for Belarus, as the country will bear more losses.

Official statistics state that deficit in Belarus’s trade with Russia has reached 8 billion dollars for the first nine months of the year. However, professor Stanislau Bahdankevich, monitoring the financial situation, says, this sum has increased up to 9 billion dollars now.

Former head of the National Bank said in an interview to Radio Svaboda, it is important to know what currency Moscow wants to receive for the trade deficit:

“We need to pay! We won’t have such amount of Russian rubles. If they want us to convert dollars and euros, Belarus earns in West, into Belarusian rubles and settle in them, it is unprofitable for us. Because exchange operations will bring great losses”.

When converting dollars into rubles, one must pay 3–5 per cent of the sum. So, when converting 9 billion dollars, losses will reach hundreds of millions dollars.

The initiative of the Russian president was apparently prepared beforehand. So, Russian ambassador to Belarus Alexander Surikov, said at a press conference in August that Belarusians should have Russian rubles:

“Structure of the balance of payment of Belarus suggests a common means of payment, or a common currency. Negative balance of trade with Russia of 6 million dollars for the first half of the year implies to such actions. We can imagine what balance we will have by the end of the year.

In my view, we have no political obstacles to begin these talks. The European Union has no Constitution, but exists in the European zone.”

Politologist Andrei Fyodarau of Minsk thinks that the new initiative of the Kremlin is aimed at other CIS countries, and Belarus first of all, to be tied to Russia.

“The policy can’t always choose a straight way. So, other possibilities are used. Russia wants to tie us to itself, draw us in a zone of its economic influence. It is probably the main thing. One needs just to begin.

Belarus won’t probably join Russia formally. But it is not excluded that Belarus will entirely depend on Russian in policy. This seems to be a main goal of Moscow now.