Foreign Ministry: Sanctions by Russia inflict greatest loss

Out of all countries trading with Belarus Russia uses the greatest number of restrictions, the report of the Foreign Ministry of Belarus issued on Monday reads.

"At the moment in trade of Belarus with foriegn states 28 restrictive measures are used, including 9 anti-dumping measures and 5 special protective measures. The greatest number of restrictive measures is used by Russia (12), Ukraine (6), the EU (4), India (2), the USA (2), Moldova and Kyrgyzstan (1 each)," the report reads, as quoted by BelaPAN.

It is noted that restrictive measures used by Russia, cause greatest losses to Belarus, which is preconditioned by the volume of trade and close economic ties between the countries.

"Thus, inequal cmpetitive conditions for Belarusian manufacturers participating in tenders of the system of state procurement. Limitation of access of Belarusian goods to the Russian system of state procurement exist, in the form of 15% of price preferences for suppliers of Russian goods. Such preferences are applied only to a limited ist of Belarusian goods," the Belarusian Foreign Ministry notes.

Besides, restrictions on access for Belarusian cars and municipal vehicles produced at the territory of Russia, on purchases by federal executive authority bodies and subjects of the Russian Federation with the use of subsidies, are imposed.

There is also a ban on favourable conditions of crediting in Russian banks with subsidizing of interest rates and leasing of agricultural equipment. Thus measure belongs to prohibited import-substituting subsidies according to the WTO. Limitations of access of Belarusian automotive equipment and farm equipment for selling them to agricultural goods producers and agricultural consumer co-operatives under leasing terms are used.

According to the Belarusian Foreign Ministry, the current oil export duty is particularly weighty exemption from free trade regime, while collecting export customs duties for some categories of oil products supplied to Belarus by Russia since January 1, 2010 "violates provisions of Russia's international obligations".

The report also informs that the domestic gas price for Russia is much lower than the gas price for Belarus even considering transportation expenses. "It creates considerable price advantages for Russian companies and goods manufactured by them, both in the home and in Belarusian markets, and in fact are a frontal subsidy to the entire Russian economy," the document reads.

In the ministry they believe that provision of exclusive right to export gas for Gazprom is also restriction, and it is a measure of non-tariff regulation of foreign trade.

In Foreign Ministry also stressed that the procedure of Russia's state veterinary and laboratory control of antibiotics content in Belarusian products of animal origin, as well as the absence of genetically modified micro-organisms and melamine is organized in such a way that it creates technical barriers for Belarusian products' access to the market of Russia.

In Russia there are unequal conditions for the registration of wholesale prices limits for medicines of Belarusian and Russian production. It reduces the cost competitiveness of Belarusian medicines export to the Russian market, because new conditions set preferences to Russian business entities", said in the ministry statement.

According to Andrei Savinykh, Spokesperson of the Belarusian Foreign Ministry, the sides should avoid restrictive mneasures in mutual trade. "It could be done in the framework of package agreements which would allow to cancel all restrictive measures," Savinykh said to RIA Novosti on Monday. To his mind, another instrument could be the Customs Union, which is to be created "without any exemptions and limitations".