Russia to render material aid to Belarus.
Russia is ready to grant Belarus $4.1 billion worth of subsidies to purchase oil and a loan for the construction of a nuclear power plant. Prime Minister Vladimir Putin made these proposals to his Belarusian counterpart Mikhail Myasnikovich.
Greeting Myasnikovich, Putin said "trade growth is the main element of bilateral economic relations." In tentative estimates, trade has reached $25 billion.
"This is a very high figure. It points to our huge potential and to good prospects," Putin commented.
"However, the balance (of trade – the difference between exports and imports – Izvestia) is very negative for Belarus," Myasnikovich argued.
Energy supply dominates Russian exports to Belarus. To overcome the raw materials dominance in bilateral trade, Myasnikovich offered his own formula:
"Our government thinks that we have old forms of cooperation between our companies. We must set up joint ventures, big production associations. We must drop the practice of simply selling things to each other."
He said representatives of third countries could also take part in such ventures.
Both sides agreed to start the plans to build a Belarusian nuclear power plant with the participation of Russian companies.
"Russia is interested in carrying out this project. It is a big project worth around $6 billion" Putin said, adding that the Government is ready to grant a loan for it.
Russia has not changed its position on gas despite Belarus's efforts to get a discount. "Russia has reiterated that gas will be supplied under the current contract which is valid until the end of 2011." Putin emphasized. "If need be, we are ready to consider Government support for these supplies to prevent them from becoming a burden for Belarusian companies," he said.
The parties have not yet agreed on the most sensitive issue – the price of Russian oil for Belarusian refineries. Myasnikovich said they are close to a price formula for Belarus and instructed their deputy prime ministers "to complete the resolution of issues bearing on the fuel-and-energy sector." Based on the agreements for the Common Economic Space, "Russia fully cancels all export duties on crude oil."
"We will try to make sure that the subsidies for the Belarusian economy in the oil sector are no less than the sum received by Belarus before the imposition of oil export duties," Putin promised. "This sum will amount to $4.12 billion and the Belarusian economy will get this subsidy."
Anastasia Savinykh