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.
Russia and Belarus maintain fundamental approaches to cooperation and practical issues of coordination through regular political dialogue. In 2008, there were eight meetings between the presidents of Russia and Belarus held in both bilateral and multilateral formats. On February 3 of this year, the Supreme State Council of the Union State met again. 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.
Russia and Belarus continue to develop trade ties. In 2008, their trade rose by 31.1% to reach $34.2 billion (compared with $26 billion in 2007 and $19.9 billion in 2006). Russian exports to Belarus, mainly energy and raw materials, rose by 37.2%, while imports from Belarus (in which engineering products, equipment and food prevail) increased by 19.2%. Russia had a foreign trade surplus of $13 billion in 2008. Belarus currently accounts for 5.6% of Russia's trade, while Russia accounts for about 47.2% (2008) of Belarusian trade. At the same time, under the impact of the financial and economic crisis, the first quarter saw a decline in mutual trade turnover (a drop of 42% over last year). To overcome the difficulties in two-way trade, the Supreme State Council met on February 3 to approve a joint plan of action to counter the effects of the global financial and economic crisis on the Russian and Belarusian economies. The plan provides for measures to not only fight the crisis, but actually creates conditions for more vigorous development and further mutual integration. For example, there will be a recommitment to build a customs union, standardise trade procedures with third countries, grant preferred treatment to goods of both countries on their territories, relocate customs and other control functions from the Russian-Belarusian border to the external borders of the Union State, expand the use of the Russian rouble in mutual settlements and payment confidence, help develop bilateral trade and banking cooperation, and pursue a coordinated forex, monetary and credit policy.
In foreign trade, Russia and Belarus are currently moving toward basic marketing principles in a move away from the slowing in recent years of Union development due to lags in the implementation of previous agreements on a common economic space and foreign currency integration. All this puts priority on strengthening bilateral economic integration.
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.