Izvestia: “A common currency for the Union State?”
Russia has again raised the issue of a common currency with Belarus.
The Common Economic Space (CES) will swallow the Union State of Russia and Belarus if both countries do not move quicker on a number of sensitive issues. Prime Minister Vladimir Putin expressed precisely this opinion at a meeting of the Union State's Council of Ministers and the subsequent CES meeting. The point is that each country has different sensitive issues. Russia considers the introduction of a common currency more important, whereas Belarus is more interested in fuel prices.
Vladimir Putin believes that when the Union State acquires a common currency, "the scale and depth of integration will be different." It will be more complete than within the CES. However, years of negotiations have not produced any results. Belarus has been dragging on the issue. Analysts warn with good reason that the CES is prevailing over the bilateral relations of the Union State.
"I think that the ball is in Belarus' court. Our central banks and finance ministries have discussed the major issues. Now it only remains to make a political decision," Putin emphasized.
For instance, the Union State cannot have two issuing centres– in Moscow and Minsk. Putin believes that this "would destroy both economies." Belarus has retracted its initial demand, but now it has come up with a new one – to establish a united central bank with equal shares. But, to put it mildly, the economies of the two countries are not comparable.
"How much is it? I think it's three percent from the Russian economy? We think it's unfair to establish a central bank with equal shares," Putin said.
In turn, Belarus demands that Russia should cancel export duties on oil that Belarus processes and resells to Europe at global prices. Putin has repeatedly urged Minsk to wait patiently until this issue can be reviewed in 2012. Russian Deputy Finance Minister Sergei Shatalov emphasized that the issue may be reviewed but not simply decided in Belarus's favour. Belarusian Prime Minister Sergei Sidorsky said almost nothing about the talks.
By Julia Shestoperova
