Prime Minister Vladimir Putin and Belarusian counterpart Sergey Sidorsky conducted a meeting of the Council of Ministers of the Union State of Russia and Belarus in Brest yesterday. The Russian prime minister criticized Minsk for being slow to recognize Abkhazia and South Ossetia, then called for the introduction of a common currency and promised that customs duties between the two countries will be abolished starting in 2012.
Before the start of the meeting, the two prime ministers took a walk through the Kozlovichi-2 terminal, which will oversee cargo bound for Russia under the future Common Customs Space. They were ushered past vans with kiwi and pet foods, while looking out over the bridge that crosses the Bug River and connects Belarus with Poland.
Mr Putin noted that he was pleased to discuss the functioning of the Union State and Customs Union because "Belarus has always been and will continue to be not only a strategic partner, but our special partner in every sense."
That is why Russia continues "to support the economy of Belarus by supplying cheap energy," Putin said. Last year Belarus saved $2.6 billion on Russian gas and another $1.6 billion on oil.
Vladimir Putin assured his Belarusian counterpart that all the internal customs duties between Russia and Belarus will be abolished as of January 1, 2012, when a common economic space is to be created. Mr Sidorsky for his part announced that Minsk would like to drop customs duties beginning from July 2010, as soon as the common customs territory is defined. It appears for now that negotiations on duties will continue.
In exchange for Russia's support, Belarus may also have to make some concessions. Vladimir Putin said that Russia had expected a quicker reaction from Minsk on the issue of recognizing the independence of Abkhazia and South Ossetia. At the same time, he stressed that Russia "has always come out and still comes out for the normalisation of relations between Belarus and its Western neighbours, as well as the United States." So, Putin said, "if it happens along those lines, that would already be a positive effect, thank God."
"True, one may assume the attitude of Kisa Vorobyaninov who used to say that with some problems, bargaining was inappropriate. On the whole I share Kisa's position, but at the end of the day this is an issue (the recognition of South Ossetia and Abkhazia – Izvestia) over which the Belarusian state has sovereignty and that the legitimately elected president has the sovereign right decide upon," the prime minister noted.
In any case, the issue of recognition or non-recognition cannot influence further integration, which, the prime minister assured, was in Russia's interest. The two countries long should have adopted a common currency.
"If we had a common currency, it would have been an incentive for economic agents, simplified mutual settlements, and minimized the spending of economic agents, hence making them more competitive," Vladimir Putin said.
First Deputy Prime Minister Igor Shuvalov said later that the formation of a currency union can begin immediately after the common customs space is created.
Alexander Shishkunov