"Become Toxic to Other Companies"

The economist explained how the state-owned enterprises of Belarus are threatened by the US sanctions.

Renewal of US sanctions against the Belarusian petrochemical industry may affect the desire of companies from other countries to cooperate with state-owned enterprises of Belarus. Aleh Mazol, a researcher at the BEROC Center for Economic Research, said this in a comment to belsat.eu.

The expert noted that the sanctions, firstly, will complicate the work of Belarusian companies in the US market, and, secondly, they will become a signal for other counterparties who would like to cooperate with these enterprises.

“Since the sanctions are imposed by the United States itself, they can impose bans on transactions with the dollar and so on. This creates a signal for other companies that would like to work with Belarusian enterprises. And this is the main blow. Not that they will be banned from working in the American market, although this will significantly affect their economic performance. The greater effect is nevertheless from the fact that they become “toxic” for other counterparties,” explained Aleh Mazol.

First of all, Great Britain and the Netherlands worked with Belarusian companies in the petrochemical industry.

“Complication of work in these markets will limit the inflow of additional funds,” the economist emphasized.

On April 19, the US Treasury Department revoked the general license, which suspended sanctions against nine Belarusian enterprises.

By the decision of the US Treasury Department, from June 3, 2021, the US is renewing sanctions against Belarusian enterprises. The blacklist of the United States includes Belarusian House of Oil Trade, Belneftekhim, Belneftekhim USA, Inc, JSC Belshina, JSC Hrodna Azot, JSC Hrodna Khimvolokno, JSC Lakokraska, JSC Naftan, JSC Polatsk Steklovolokno.