VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

International Visits

7 october, 2008 17:25

Russian-Belarusian relations and Union State development

Russia and Belarus maintain relations of allied cooperation. On December 8, 1999, both countries signed a Treaty on Establishing the Union State and an Action Plan for Implementing the Treaty's Provisions, specifically, integration guidelines and steps, including the creation of a common customs and economic space, and expanded cooperation in the humanitarian sphere, foreign policy, defence and security.

The signing of the Treaty on Establishing the Union State was preceded by the creation of the Russia-Belarus Community in April 1996 and the Belarus-Russia Union in April 1997.

Under the Treaty on Establishing the Union State, both countries set up the Union State's governing bodies, namely, the Supreme State Council comprising the heads of state, government and parliament and chaired by Belarusian President Alexander Lukashenko and the Council of Ministers comprising the heads of government, foreign ministers, economics and finance ministers and chaired by Russian Prime Minister Vladimir Putin.

The Permanent Committee chaired by State Secretary Pavel Borodin is the working body of the Union State. The Parliamentary Assembly of the Belarus-Russia Union chaired by Boris Gryzlov, Speaker of the Russian State Duma, the lower house of parliament, continues to work pending the establishment of the Union State Parliament.

A joint commission headed by the speakers of the lower houses of parliaments is drafting a Constitutional Act of the Union State that would reflect the political system for the emerging inter-state integration entity.

High-priority aspects of expanded Russian-Belarusian integration cooperation and specific issues of practical cooperation are examined during regular top-level and high-level dialogue.

On December 13-14, 2007, Russian President Vladimir Putin paid a particularly important official visit to Minsk where he attended the latest meeting of the Union State's Supreme State Council to date.

The Union State's Council of Ministers meets on a quarterly basis, holding its last meeting on June 27, 2008 in Moscow.

On June 22, 2008, Russian President Dmitry Medvedev paid a landmark working visit to Brest and negotiated with Belarusian President Alexander Lukashenko at the Brest Fortress Defence Museum. Both leaders discussed high-priority aspects of bilateral relations.

Russian-Belarusian relations hinge on numerous regulatory documents facilitating dynamic cooperation in various areas. Over 130 inter-state and inter-governmental treaties and agreements have been enacted to date.

Russia and Belarus have also signed multilateral cooperation agreements within the format of the Commonwealth of Independent States, the Eurasian Economic Community and the Collective Security Treaty Organisation.

The creation of a common migration space and mutual visa-free travel without any customs or passport control are the direct result of the ongoing integration processes.

Under the 1995 Customs Union Agreement, both countries facilitate the free movement of goods and services, albeit with some reservations, and eventually standardised 95% of their respective customs duties.

Work is proceeding apace to harmonise fiscal-budgetary and monetary-credit policies, and currency regulation.

Russian-Belarusian trade and economic ties have expanded even further. In 2007, the bilateral trade turnover, which had totaled $19.9 billion in 2006, soared by 30.7% to reach $26 billion.

Energy resources and raw materials accounting for the bulk of Russian exports, increased by 31.2% last year. Russia's imports from Belarus, primarily machinery, equipment and foodstuffs, increased by 29.8%.

Russia posted an $8.3 billion trade surplus. Russia accounts for 48.8% of Belarusian trade turnover while Belarus accounts for 4.5% of Russia's.

The January-August 2008 trade turnover totaled $24.8 billion.

However, Union State development has slowed somewhat in the last few years because Moscow and Minsk are delaying the creation of a common economic space, a full-fledged customs union and because they are not facilitating complete currency integration.

Consequently, trade and economic relations based on universal market principles are a high-priority today. Both countries must now create a more solid economic foundation for their bilateral integration.

On December 31, 2006, Moscow and Minsk signed a long-term contract stipulating new terms for the delivery of Russian natural gas to Belarus. In 2007, Belarus had to pay $100 for every 1,000 cubic metres of Russian gas. From 2008 through 2010, the price of every 1,000 cu. m. will amount to 67%, 80% and 90%, respectively each year, of the European cost for Russian gas.

In May 2007, the countries signed a contract for selling a 50% stake in the Belarusian gas-transport monopoly BelTransGaz to energy giant Gazprom for $2.5 billion. The payment will be made in equal shares from 2007 through 2010.

On January 12, 2007, Russia and Belarus signed an inter-governmental cooperation agreement for the export of oil and petroleum products. According to its provisions, Belarus will charge the same export duties as Russia does and will also stipulate "easy-term" duties on imported Russian oil for a three-year period.

On March 23, 2008, Russia and Belarus signed an agreement on measures to expand bilateral trade and economic cooperation. Under the agreement, both sides are moving to abolish mutual trade barriers.

Moscow and Minsk have already abolished protectionist measures for sugar, beer, tobacco and fish via temporary storage facilities and will also stipulate equal opportunities for Russian and Belarusian companies during state-procurement tenders organised by the Government of Belarus.

The implementation of about 40 inter-state economic, defence and social programmes and projects is another high-priority of bilateral integration. Such programmes and projects are partly financed by the Union State budget totaling 4.06 billion Russian roubles ($154.9 million). Russia and Belarus contribute 65% and 35% of the Union State budget, respectively.

The following six officially registered inter-state financial-industrial groups participate in expanded economic cooperation: BelRusAvto (diesel truck production), Formash (equipment for chemical thread and fibre production, and flax and wool treatment), Mezhgosmetiz (steel-cord production), Electronic Technologies (TV sets and communications systems), Defensive Systems and Aerospace Equipment.

Rapidly expanding inter-regional cooperation is another important aspect of Russian-Belarusian relations. All six Belarusian regions and Minsk have signed cooperation agreements with 80 constituent entities of the Russian Federation.

Moscow and the Moscow Region, St. Petersburg, the Tyumen, Smolensk and Nizhny Novgorod regions are the most active partners. Six Russian regions have opened offices in the Belarusian capital, while the Belarusian Embassy has opened its offices in ten Russian regions.

The creation of the Union State's common information space is a highly important aspect of bilateral integration. Both countries will accomplish the following high-priority objectives in this sphere:
* drafting regulatory documents of bilateral information cooperation;
* streamlining the activities of the Union State's Television and Radio Broadcasting Organisation;
* relaying Russian television and radio broadcasts to Belarus.

Russia and Belarus implement comprehensive and multi-faceted foreign-policy cooperation programmes. They share common or similar positions on major international issues and closely cooperate in the UN and other international and regional organisations.

Russian and Belarusian Foreign Ministries maintain active contacts under the Programme of Concerted Foreign-Policy Actions of States, Parties to the Treaty on Establishing the Union State. On January 30, 2008, Minsk hosted a joint meeting of national Foreign Ministries' Boards that passed another foreign-policy cooperation programme for 2008-2009.

Both countries are cooperating more actively in defence and security, counter-terrorist and anti-crime operations. The Union State's Military Doctrine was enacted in December 2001. A joint regional army group functions effectively.

Russian and Belarusian social programmes hinge on the December 25, 1998 Treaty on Citizens' Equal Rights which includes the creation of equal free education and employment opportunities and equal property rights for Russian and Belarusian citizens.

In January 2006, both countries signed a package of agreements to ensure equal rights for Russian citizens in Belarus and vice versa in the health care, social security and taxation spheres.

Russia and Belarus maintain active cultural ties. The annual Slavyansky Bazar (Slavic Bazaar) Music and Arts Festival, held in Vitebsk, Belarus, each summer, is the most important cultural event partialy financed by the Union State budget.