Vladimir Putin and President of Belarus Alexander Lukashenko held a joint news conference at the Kremlin following Russian-Belarusian talks
President of Russia Vladimir Putin: Mr Lukashenko, ladies and gentlemen,
We will briefly inform you about the results of our today’s work.
Our talks with the President of Belarus were intensive and constructive, as they have always been, which is fully in line with the nature of relations between our countries.
I have said this before but would like to repeat it today: Belarus, for us, is a good neighbour and our closest ally. Russian-Belarusian cooperation rests on the principles of mutual respect, support and consideration for each other’s interests. Close friendly ties between Russia and Belarus are buttressed by a common history and spiritual values and often by family relations.
The Republic is our main trade and economic partner in the CIS and was our third largest partner in the world in 2020, in this respect. This year, trade is once again on the rise and has already surpassed the pre-pandemic level. In January-June it amounted to $17.8 billion, recording growth of 34.9 percent, almost 35 percent.
Russia accounts for almost half of all of Belarus’ foreign trade. Russia has also made the biggest investment in the Belarusian economy.
So, it is no accident that during today’s talks we focused on trade and investment in our bilateral relations and on the issues linked with integration within the Union State framework.
As you know, over several years – we said today that we stepped up this work three or four years ago – our governments have been intensively working on a package of documents to further deepen integration between Russia and Belarus.
These are 28 so-called “union programmes” that are aimed at the unification of laws in Russia and Belarus in various economic areas, the levelling of conditions for the operation of the two countries’ economic entities, the formation of uniform financial and energy markets, transport infrastructure, the development and implementation of a common industrial and agricultural policy.
Today, I would like to say with satisfaction, that all 28 programmes have been agreed upon. Tomorrow, they are to be approved at a meeting of the Council of Ministers of the Union State in Minsk, after which they will be submitted for approval by the Supreme State Council of the Union State, which will convene before the end of this year. Mr Lukashenko and I have agreed on that, and we will now check our schedules and determine a more or less exact timeline.
Let me briefly go over the contents of these programmes.
Some of them seek to harmonise the taxation and customs legislation of our two countries. In particular, an agreement will be signed covering the general principles of levying indirect taxes. An integrated system for administering indirect taxes within the Union State will be put in place. The goal is to make the price structure of products clear.
Also, the general guidelines for forming a single monetary policy in the future, and implementing currency regulation, integrating national payment systems and creating a common payment space within the Union State have been outlined. All this will help ensure fair competition and boost business activity on the financial market, as well as effectively mitigate the risks of money laundering and the financing of criminal activities, including terrorism.
We have reached agreements on matters that are highly sensitive for the Belarusian side, which are related to prices for Russian energy. After lengthy discussions, we managed to come up with mutually acceptable approaches to gas supplies. The price for Russian natural gas for Belarus will remain at the current level in 2022.
A document to create a unified gas market within the Union State will be signed before December 1, 2023. In addition, we will conclude an agreement on merging the petroleum and petroleum product markets, as well as an agreement on a single electricity market.
I would like to emphasise the fact that common approaches to legislation covering labour relations, occupational safety and health, employment, social insurance and pensions, as well as support for families with children, will be developed within the framework of these union programmes as well.
Implementing the Union State programmes will be an important step towards creating a single economic space for our two countries, as provided for in the 1999 Treaty on the Establishment of the Union State.
Eventually, this will provide a strong impetus to the further growth of the two countries’ economies, will facilitate an increase in labour efficiency, serve the interests of large, mid-sized and small businesses and help create more jobs.
Russian and Belarusian businesses will be given the opportunity to expand their activities across the Union State, including by establishing new joint ventures and boosting their export potential.
Most importantly, the average person in the two countries will, hopefully, benefit from the integration. Russians and Belarusians will be given equal rights and equal opportunities in the economic and social spheres and, the most important thing, the necessary conditions will be put in place to ensure a real improvement in living standards and the wellbeing of the people.
Today, we also discussed matters related to building a single defence space and ensuring the security of the Union Sate along its borders.
In this context, we gave much attention, as we attach great importance to this, to upcoming joint military exercises, Zapad 2021, to be held in Russia and Belarus. These exercises are not targeting anyone. However, conducting these exercises is logical, given that other alliances, for example, NATO, are moving fast to build their military presence close to the borders of the Union State and the Collective Security Treaty Organisation countries.
Mr Lukashenko talked about the political situation in the Republic of Belarus, which has stabilised.
In conclusion, returning to the main topic of today’s talks, I want to note that the development of equitable and mutually beneficial cooperation in the Union State has remained an explicit strategic priority for our two countries.
I want to thank the governments, ministries and teams of experts of the two countries who took part in developing and coordinating the Union State programmes. Thanks to you – I am now addressing our colleagues – and your well-coordinated and painstaking work, we have managed to achieve very impressive results on the path to integration. We believe – I am again addressing my colleagues in the government – that you will continue to proceed like this in the future.
Thank you for your attention.
President of Belarus Alexander Lukashenko: Mr Putin, media representatives,
According to traditions and protocol, first of all, I would like to thank my colleague, the President of Russia, for the warm welcome that our delegation has been given today, as well as the extremely honest, open and constructive nature of today’s meeting.
Among other things, all of you, journalists, finally have an opportunity to hear firsthand about the results of our meeting today. We must frankly admit that we have not often indulged you with such meetings after our long negotiations.
I would like to start with the biggest and perhaps the most popular topic of today’s conversation. Everyone is interested in the future of the union programmes. Taking into account what the President of Russia has just said, I will just try to add a few things. But I must apologise because I have to start with the history of this matter.
The President has just mentioned that this work begun more than three years ago now, and we have been duly reacting to all the feedback, concerns and criticism voiced in both Russia and Belarus, about the Union State having lost some of its dynamics.
As I said, substantive work on the so-called roadmaps, as you remember, began more than three years ago. Those roadmaps, in fact, provided integration frameworks for specific areas, that is, the roadmaps indicated in broad strokes the path that we were ready to take with regard to a specific topic of interstate relations. That is, we outlined our plans.
Each of today’s programmes – they actually evolved into programmes about 18 months ago, when we approached specific agreements because we thought that we had enough framework plans and needed more specific ones to respond to our people’s requests, and so – each of the programmes is a specific plan of actions we are going to implement. The governments have done a tremendous job. Mr Putin and I have made all the fundamental decisions today that concerned us.
I do not want to go into the contents of the documents we have reviewed. They are not classified and will be made public. But I will just mention a few of the main points. They include equal rights for businesses of both countries, Belarus and Russia, the importance of which various representatives of Belarus, including me as the president, have been stressing for many years now. That is the basics. We are equal partners. The competition must be honest for all companies on the Belarusian and Russian markets. It was the equality, beneficial and fruitful cooperation that the Belarusian‒Russian integration was started for in the first place.
The union programmes clearly describe development mechanisms for our shared economic space, for building integrated sector-specific markets and for implementing harmonised policies in finances, taxes, lending, pricing and trade.
I would like to specifically point out such matters as solving the problem of energy supply to Belarus, the increase in transportation services, funding for new investment projects, adopting common approaches to implementing our agricultural and industrial policies, and raising the level of mutual social guarantees for our citizens. President Putin has just covered these topics extensively.
Yet, it is high time we asked our critics in Belarus – specifically, in Belarus – the so-called opposition, both fugitives and those living in Belarus, who criticised me and the government and shouted so loud. I would like to ask the critics of our integration in Russia as well: where do you see a ball chained to Russia’s legs? There are no downsides for either Belarusians or Russians in these programmes – and there could not be. As President Putin mentioned, the aim of all these measures is to improve the welfare of our peoples. And it is probably time to put a lid on this matter. Our integration was coined to be mutually beneficial and nothing else.
It is fundamentally important that we have managed to achieve mutual understanding on all major aspects. Our governments will immediately start polishing certain points – tomorrow, during a meeting of the Union State’s Council of Ministers in Minsk. If the final touches are approved and agreed upon (and we are certain they will be), we will be ready to approve the package of union programmes, as President Putin said, during a meeting of the Supreme State Council. We will try to set a date for this meeting today.
We often hear accusations that the Union State is a purely political project. No, it is a unique integration framework that is advanced in many spheres, including politics. Take our military and political union. It is not a secret. We have advanced quite substantially in many fields, such as foreign policy, defence and security.
I would like to stress: life is convincingly proving that everything we do is for the benefit of our people and is aimed to meet their concrete needs. The Belarusians and the Russians do not feel they are aliens in either country: they have freedom of movement and they can get an education and [easily] find a job. This stands high. Moreover, people are confident that it is a matter of course, that it has always been this way. And this is the best proof of the viability of our union. I am absolutely certain that broadening integration and building up multi-faceted collaboration is the most indicative and effective reply to all our ill-wishers. Together we can only get stronger.
At the start of our talks, the President of Russia mentioned a very important and interesting phrase: We are emerging from the situation of a pandemic-crazy world, where production volumes and many other processes have sunk to nought over this period of time. We have to look for additional stimuli to promote the socioeconomic development of our countries. He said this and it is bang on to the point. We are looking for these advantages in the union of our two countries in order to overcome the negative consequences of the pandemic.
Today, we have also discussed in detail some current international problems and our relations with neighbouring countries and assiciations. We have dwelled on the situation in zones of instability, primarily in Afghanistan, from the point of view of threats to security of the Union State of Russia and Belarus. The priority in this context is to ensure comprehensive security of our countries and the CSTO as a whole. We will jointly approve a common position on this matter during the upcoming events in Dushanbe.
Even we, though located in the centre of Europe far from the so-called theatre of operations, felt the impacts of the Afghan crisis. Look at the refugee crisis on our borders, at how the progressive West is behaving: they are rattling the saber all the time. As is only natural, we have broached the subject of our allied military exercise, Zapad-2021. We will continue to build up our joint counteraction to common challenges and threats. There is no need to scream out loud that we are holding this exercise. We have an army, we have a joint force deployed in the Western sector, and it needs to be trained and instructed in military tactics. We are doing nothing that wouldn’t be done by our rivals and adversaries.
We have also focused on further normalisation of transport communications and cooperation in the field of microelectronics and building industry. Yes, we are confident that the Union State should expand the use of its scientific and technological potential.
It is clear that far from all the knots in our relations have been untied. But it is normal, given the existing scale of collaboration, and a platform for further progress has been created. Based on this platform, we will continue to ensure social guarantees and consistently enhance the wellbeing of Belarusians and Russians.
Many people will get the impression that our talks on these subjects and Union programmes are going on forever, and that we are handling these matters with kid gloves, to put it mildly. There can be no alternative because somewhere in the mid-1990s and by the late 1990s when you and I were exchanging ratification instruments of the Union State Treaty, we agreed to conduct integration at various speeds and various levels. At that time, the Belarus-Russia Union and the Eurasian Economic Union, called the Customs Union at the time, was established on your insistent initiative, and the CIS.
We maintain different speeds at these three levels on post-Soviet territory, but we were always ahead. During the era of President Yeltsin, we discussed the possibility of renouncing the Union State and the Belarus-Russia Union and making this format part of the Eurasian Economic Union. At that period of time, we had enough intelligence and wisdom not to go ahead with this. The new President of Russia supported this, and we were not mistaken. We are setting an example of how to move ahead within the EAEU and all the more so within the CIS. In effect, we are pushing ahead like a bulldozer, and we are paving the way for, as we really hope, future associations and unions in the post-Soviet region. The Union is an example and a road that all states counting on a more close-knit union will have to take.
The President of Russia tactfully avoided mentioning all kinds of assertions that someone would take over someone, and so on and so forth. I would just like to point out that the President of Russia and I never suffered from this disorder. We can treat anyone who has had this disorder. I have recently said that we are sufficiently smart people, and if we find it necessary to make our already thoroughly close relations even more powerful, he and I will accomplish this in no time at all. Therefore one should not rattle and juggle old phrases and terminology about us trying to take over someone or to merge together contrary to the desires of our peoples. We simply wanted to accomplish something, and we singled out 28 areas and implemented the task in three years. Quite possibly, three years is a long time, but this is a mere instant in terms of history. Therefore one should not worry in this respect, and we will do everything possible in the interests of the people. And if we need even more close political and military integration, we will do this without delay, as soon as we feel this is required by our people in Belarus and Russia.
Most importantly, and the President of Russia and I have discussed this, 28 programmes have been inked, and this is a conceptual view of any specific problem. Today, it is necessary to sift through volumes of domestic legislation and our joint agreements, to adapt them or to channel them via a direction that has been determined by the President of Russia and me. As has been said, we will finally approve this direction at a meeting of our Supreme State Council.
Question: Good afternoon,
I have a question for you, President Putin.
Indeed, the list of subjects included in the union programmes brings union integration between our two countries to the highest and broadest level.
We must give credit to the governments that were able to agree upon a number of highly sensitive and principled matters such as monetary and foreign exchange policy, customs and taxation systems, a number of sector-specific problems, and social guarantee convergence. However, we must also admit the fact that for a number of years now, year in and year out, the development of the Union State was held back by a number of trade and economic hurdles. Frankly speaking, it is not easy for the Belarusian people to understand some of them. For example, the working conditions for Belarusian carriers in Russia are worse than for the Lithuanian or Polish carriers, and this despite the fact that our countries agreed on creating a common economic space more than 20 years ago.
In this regard, my question is: do you think that once adopted and implemented, these union programmes will make it possible to resolve that pile of long-standing mutual problems and to leave them behind as we push ahead into the future?
Vladimir Putin: You have taken a bird’s eye view of the matters finding a solution to which was a challenge for us. But if we start to dig deeper, it will become quite clear why it was so difficult for us to agree on things. It is because one side believed that it was enough to make some operational decisions at the governmental level and things would be settled, while the other side believed that certain decisions on certain matters could not be made until more fundamental decisions had been made.
I just mentioned what we agreed on, and I will say it again, since this is an absolutely critical matter. So, we have agreed on conducting common macroeconomic policy. I will not go into details now, and you are probably aware of what this is about. We have also agreed on harmonising monetary policy, payment system integration, ensuring information security, and deepening cooperation in customs regulations and taxation. That is, we are talking about transparency of the customs value of goods and definition of the transparent structure of the value of goods in the economy in general.
Our experts believed that without resolving these matters we cannot move on to other matters concerning individual commodity groups, including energy. We agreed to create a single methodology, which is important, for harmonising indirect taxes and a department which would control these processes.
When the economy becomes transparent, when it becomes clear how much the goods cost when they are imported into any of the two states, Russia or Belarus, and then enter our customs territories, then we can talk about those goods’ real value. And this allowed us to agree on something else – we are now moving towards a unified industrial policy and access to government procurement and government contracts. This amounts to a transition to very specific work in these areas.
But we disagreed for quite a long time. I have to say that our Belarusian partners are hard negotiators, but still, gradually, breaking the ideas down to elemental parts, we have practically – well, not practically, but fully agreed on all these matters. The President of Belarus and I have reaffirmed this today. We have agreed on all the details, you know, all the problems. When we got down to the details and spelled it all out, this puzzle just came together, and I hope it all really works.
Question: Thank you very much.
Please, if it’s possible one more short question, since I have such an opportunity. Did you discuss full resumption of air services today after COVID-19, and further developments in general? Were some decisions made maybe?
Vladimir Putin: No, we discussed this at our previous meeting. This time, the President of Belarus did not bring up this matter, but the President of Belarus does not yet know about the decision just made at the government commission, which met not far from here, at Government House. They decided to lift all COVID-related restrictions on air services.
Alexander Lukashenko: You have not told me about this.
Vladimir Putin: No I did not, but now I am informing you.
Alexander Lukashenko: Well, thank you.
Vladimir Putin: Before these so-called COVID restrictions were introduced, we had over 200 flights a week. To be precise, 201 in fact, and at the moment just 36.
I do not expect the pre-COVID level to get back to normal in just a couple of two days – to over 200 flights – because it all depends on the market and the carriers. But I believe the process will unfold speedily, also because, I hope, the agreements and the programmes we have informed you about will be quickly and efficiently implemented.
Question: A question for both presidents. You touched upon the topic of economic integration. What are the prospects for political integration, or are there any?
And, back to the Union State programmes, will Belarus enjoy special prices for energy resources? Is there a plan to create a single energy market regulator in the Union State? I am also interested if a decision is planned on a common Union State currency. Have you discussed additional credit support for Minsk?
Vladimir Putin: With regard to political integration, this is what the Union Treaty was tasked to accomplish from the outset, when the Union Treaty was being formed in 1997 and a treaty signed a little later, I think, in 1999.
We believe – just as your colleague asked a question about individual commodity groups, and what they succeeded in agreeing upon and what remains to be agreed – we decided that we need not to focus on separate items that are beneficial or not to a particular side, but instead should make comprehensive decisions thus creating a solid economic foundation for making progress in sensitive, but still peripheral matters.
It works the same way here. We operate on the premise that, in spite of this being a noble cause, we must first create political integration and an economic basis, a foundation, in order to be able to move forward, on the political track as well. We have not taken up these issues yet. To reiterate, we believe that we should first focus on the economy, and everything else will then need additional regulation, including, perhaps, at the level of the Union parliament. I do not rule out the possibility of this being created. But before we do that we need, as they say, to grow up. We did not discuss this, and these items were not on our agenda.
With regard to the second part of your question, I have already said that we will be addressing issues related to individual product groups in a comprehensive manner, even though we understand that the energy issue is highly sensitive. Therefore, as I said, we will leave the same price for Belarus for the next year, 2022. The price for Belarus will be $128.5 per 1,000 cubic metres. For your information, in case you are not aware of it, the price on the European market is $650 per 1,000 cubic metres. So, I think, the difference is clear.
We will not even adjust the price for Belarus to take account of the dollar inflation, which is quite high. They planned 2 percent, but it will be over 5 percent actually. Now, they are saying it will be a little lower, but still two to three times higher than the target. But we are not going to adjust either for the inflation in Russia or for the dollar inflation. We will keep the price as it is this year. However, later on, as I said, we will nevertheless work out common approaches both on the gas market and on the petroleum and petroleum product market.
What was the third matter?
Question: Are you planning to provide additional support to Minsk in terms of lending?
Vladimir Putin: Yes, the governments are discussing this. The President of Belarus and I also discussed this. The total volume of loans from September through late 2022 will amount to about $630 million, approximately $630–640 million. Anyway, it is going to be over $600 million.
Alexander Lukashenko: As concerns political integration, I fully support President Putin although he was too modest and did not mention his own role in resolving this matter.
We hit a brick wall at the time with certain issues in the Union, including political issues. It was then that the Russian President said words that became proverbial. We were having similar talks, in this very office where we had a one-to-one meeting today. That meeting was in an extended format. He reproached both Belarusian and Russian experts and said: “If we hit a wall and obviously have no way of solving this problem today, let’s put it aside until a moment comes when we can deal with it, when the time is ripe.” We have managed to not politicise our talks too much ever since.
I have just said openly and honestly: we can go back to any problem, including a political one, if we need to, and we will develop our relations based on that premise. This issue will not get rusty, as we like to say in Russia and Belarus. This is why I support President Putin’s idea that the time will come and we will not keep anybody waiting.
As for special prices, you must know that in fact, all our products are priced based on special terms due to free trade agreements in the Union State and the EAEU. We pay no duties, with the exception of energy. President Putin spoke about gas. Because it is an exception, we review the prices, including gas prices, almost every year. At this point, the oil exported outside Belarus sells at global prices if we exclude the duty.
Regarding loans, President Putin did not say anything but I must admit that I told him that we do not need more loans. If we can save money thanks to the nuclear power plant for which we received a loan (according to Russia’s practice everywhere in the world), I asked him to give us this saved money as a loan. He agreed to consider it if there were good promising projects for Belarus and Russia. We are happy with this. There is also the loan that my colleague has just mentioned.
Speaking about common currency, I would like you, as journalists, to understand: the question is not whether Putin or Lukashenko are stalling on this process. Remember, we have researched this issue. The Central Bank of Russia and the National Bank of Belarus unanimously asked us not to consider this issue yet. They said that neither they nor our countries were ready. President Putin and I listened and put this issue aside. It does not mean we will never get back to it. Currency is not the problem per se. It does not matter if the value of the dollar, euro or ruble increases, what matters and has always mattered is a common issuing institution. There is a definite problem with this. I think we may be able to solve it even while we are both presidents.
This is the background I wanted to explain.
Vladimir Putin: Regarding a common currency unit, we agree with this, and the President of Belarus has also agreed that it is very important to implement a unified macroeconomic policy. We have taken the first steps in this field. I have already said that the Central Bank of Russia and the National Bank of Belarus should harmonise monetary policy, ensure the integration of payment systems and facilitate information security in the financial sphere. This means that we are moving to address a more difficult and complicated problem.
Alexander Lukashenko: Yes, this is correct.
Vladimir Putin: We need to work gradually. The road maps and these programmes stipulate all this. Consequently, everything will be obvious there. We can see that countries with weaker economies are suffering in the European Union. They could devalue something in a well-known situation, but they are unable to do this because they have no national currency. The euro is a strong currency, and what are they to do? All-out price hikes is the only option fraught with dire social consequences. Therefore we must act very cautiously, analyse the pluses and minuses, the positive aspects of our neighbours and negative examples. We are trying to do this.
You are talking about energy prices. I have said that 1,000 cubic metres cost $650 on the free European market. But the wise-guy members of the European Commission’s previous line-up invented market gas pricing, and the results are here for everyone to see.
And we prefer a different approach. We also stipulate market pricing, and this price is pegged to the crude oil price. No one but market regulates it. But the fluctuations are much less pronounced. But here, someone has failed to pump the required 27 billion cubic metres into underground gas reservoirs, causing a shortage in gas supplies, business activity increased or something else happened, and there you are – gas prices start to exceed the prices of crude oil and petroleum derivatives. So you can see a substantial price hike.
Gazprom does not charge such selling prices under long-term contracts and our pricing principles. Those Europeans who have agreed to sign long-term contracts with us can rub their hands with joy and feel happy because they would otherwise have to pay $650. Gazprom sells gas to Germany for $220; at any rate, this was the case only recently.
Considering rising oil prices considered, this price will still go up, but the process will be more gradual. In reality, Gazprom is interested in this because it also creates a certain safety cushion. There will be no abrupt slump and drop in prices. This is the gist of the matter. Everyone stands to gain from this. Those members of the European Commission who came up with their own ideas have got the desired result.
Question: Mr Lukashenko, Mr Putin,
I have a question about migrants. It is a consequence of the current developments in Afghanistan, which actually concern Belarus as well. The humanitarian crisis in the nearby European region is gaining momentum and growing stronger, but the EU has turned a blind eye to the Polish authorities’ actions towards refugees from Afghanistan and other countries. Instead of helping, they are ousting them, throwing them out of their territory quite harshly, with the use of special equipment. This has little to do with respect for human rights and democratic principles, which the West loves to talk about so much.
The question is whether we can expect Minsk and Moscow to take joint efforts soon to settle this problem.
Alexander Lukashenko: You are providing interesting facts.
Vladimir Putin: My Western colleagues and the leaders of some European countries have called on me to take joint actions, saying that there is a crisis on the Belarusian border with Lithuania and Poland. They are asking me to influence the situation. My answer is very simple: this is no concern of ours; this is not our border. It is the state border of the Republic of Belarus with Lithuania and Poland.
This leads to my first question. In principle, all sides would like to talk directly with the Taliban, even though the movement is on the UN list of designated terrorist groups. Nevertheless, they say that the Taliban is controlling the territory and so we need to talk with them. But President of Belarus Alexander Lukashenko did not come to power as a result of a war but by means of a public vote. Whether some people do not like the results of the vote is another matter. So my answer is why talk with us? Talk with the Belarusian authorities instead. Russia has nothing to do with this. This is the first thing that I wanted to say.
Second, many people are indeed asking us to help evacuate the citizens of other countries and even some Afghans from Afghanistan. We are doing this. We are not doing this secretly; we are doing this after coordinating the matter regarding certain groups of citizens with the Taliban. European countries are also talking about the catastrophe underway there, beating their breasts and blaming themselves for leaving their people in the lurch. If this is so, and if some Afghans (or not only Afghans, because all refugees, including Afghans, are being pushed out of European countries) have approached the Belarusian border with Lithuania or Poland, I do not understand the logic. You can accuse Belarus of all kinds of things, but at least screen the refugees and allow the Afghans to stay. Should they be pushed back to Afghanistan? And then they will ask us to help evacuate them from the country, won’t they? There is no logic in that.
I will not provide any political assessment now, but I would like to point out once again that Russia has nothing to do with this, that this is a sovereign concern of Belarus and its neighbours.
Question: May I ask an additional question? What is your personal view on the situation? Do you believe that Belarus has, as the West claims, launched a hybrid war against the EU?
Vladimir Putin: You see, very many sharp statements have been made to this effect. My Belarusian colleague himself is a professional when it comes to sharp statements. You can ask him, and he will tell you.
Alexander Lukashenko: No, I cannot do this in your presence…
Vladimir Putin: No, do not do this, please.
Well, has anyone started a war there? I am not aware of this. The answer is very simple: if you want to clear up a question or a problem, if you really do want this, talk with the Belarusian authorities at any level, I do not know which level it should be, and do settle the problem with the neighbouring state. Where do we come in on this?
Alexander Lukashenko: You know, the President of Russia is being delicate again. We are perfectly aware of the problem, and I have updated him; we discussed it. The EU and others are trying to settle this problem, in part, by making some complaints to the Russian leadership, in particular, my colleague, asking him to influence or pressure Lukashenko, and so on. I am grateful to him for his position, which he puts forth everywhere, that the Belarusian leadership and authorities are there and, as President Putin has said, the problem should be taken up with them. However, they claim that they cannot talk with us because the President [of Belarus] is not legitimate or the authorities are not what they should be. But the Taliban are a different matter, as we say, this is a different story, and so they can talk and communicate with them. Therefore, I am grateful to the President and leadership of Russia for their position. I personally and the authorities of Belarus appreciate this position.
Second, we have overlooked one point. In fact, we have not overlooked it, as journalists in Russia and Belarus know very well. What did Washington say as soon as the acute phase of the US presence in Afghanistan ended? They called on everyone, including Russia and the Central Asian republics, and ordered – yes, ordered – the EU to take in all those who will flee (I am speaking plainly) from Afghanistan. We have recently discussed this issue during an online conference, a videoconference, and we have coordinated a nearly unanimous view on what we should do. Europeans have just rolled over and invited the Afghans in. Take a look at this information; it has happened only recently.
But if you invited them, do take them along no matter where they came from: after all, they have worked for you all this time. There are hundreds of thousand Afghans, who spent 20 years working for those who have fled to their holes. What complaints can there be here against me, or Belarusians, let alone Russia?
But it must be understood that some Afghans and Iraqis – they have also ruined Iraq, as you know, it was not us or Russia, – they are fleeing from Lebanon and Syria and other countries they invaded. These people are fleeing via Russia, via Belarus, or directly to Belarus. This concerns Russia and Belarus most directly. We have not invited them and they are not heading for Belarus: they are crossing via Belarus to countries that have invited them. So, take them, they are your problem. This is our position.
And then, what are you urging us to do? Every day, you introduce new sanctions against us. In terms of sanctions, we are ahead of the Russian Federation by an order of magnitude. Over the past six months they have imposed a lot of sanctions on us. So, is it my duty or that of the Belarusian people to defend them on the border? No! They have wound down all programmes, leaving just a readmission agreement. You know about this. Well now, enjoy the fruit of your policies.
Look at the face they present. I won’t speak straight from the shoulder, although I could. Look at the democratic face they present: they fire at people, they set the dogs on them, they catch migrants in Poland and Lithuania, marshal them into groups and march them across the border to Belarus, shooting above their heads. Thank God, so far they are firing into the air, although there are victims. There are dead bodies that they chuck across the border for us to pick up. This is their democratic face.
This is why I don’t see any reasons for grievances against us. We honestly carried out our mission until they started turning the situation upside down by force and toppling the government. It is up to the Belarusian people to decide whether the government is legitimate or not. We did not meddle in the US elections, when they were shooting people point-blank during the ballot and afterwards. Therefore, they better sort out things at home.
What we have to do as a reliable partner, we will do under all circumstances. If Europe wants to have normal relations with us, we are ready to talk at their earliest opportunity. And we will ask Russia to support us, if necessary, and we will operate jointly. But so far, there is no such need – thank God. If need be, we will join hands in no time and will counteract all the negative trends in the interests of Russians and Belarusians.
Question: Good afternoon. My question is for both leaders.
Today you said a lot about important allied programmes, but the Treaty on the Creation of the Union State was signed over 20 years ago, and as we know, most of those decisions have not been implemented yet. Proceeding from today’s decisions, in your opinion, at what integration stage are Russia and Belarus? And how much closer – if at all – have they come to the implementation of these agreements reached 20 years ago?
Vladimir Putin: I believe that we should have started with what we agreed upon today. We need to create an economic base, as I said, the foundation of our relations, and everything else is a political superstructure, as it was said back in the old days.
So we are doing what we have agreed upon today, and then we will be ready to take the next steps. But it is work for the future; we need to monitor the rapidly changing situation. We will see what will happen after the implementation of the programme I have just mentioned. I am sure that we are on the right track.
Alexander Lukashenko: I totally agree with the President of Russia, nothing to add here. That was a short and clear answer to the question.
If you want to dig into the previous agreements, and I am not sure which agreements you mean, we can return to this matter in some other format and see what those agreements were and which of them we did not implement.
The President is right, we have created a base for further progress, and we cannot fail. It could take two hours for both of us to tell you about the mistakes the European Union has made, and we used to model ourselves on it. And look at it now, there are numerous trends leading to destruction. They are openly ctiticising each other already. We do not want to make the same mistakes and the mistakes that were made in our union state, the Soviet Union. We draw conclusions. Time has passed and we could have missed something, and we can dwell on that, but we have returned to the creation of a base. As the President said, without the foundation, it is impossible to build the integration house. We have long abandoned the idea of starting building the house from the roof.
Vladimir Putin: Thank you very much.
Alexander Lukashenko: Thank you.
Ed Note: This is currently a machine translation of the 28 points of ‘Union State’ Development and it is here for people to understand the scope of this development. We have to wait for a formal transcript from Russian to English to avoid miscommunication. I beg your understanding on this issue.
1. Convergence of macroeconomic policies
An agreement was reached on the synchronization of strategic management in the Russian Federation and the Republic of Belarus in terms of macroeconomic policy and the formation of official statistical information. Harmonization of the legislation of the Russian Federation and the Republic of Belarus in this area will create a basis for joint support of small and medium-sized businesses, streamline the consideration of situations in the field of insolvency and bankruptcy.
2. Harmonization of monetary policy and macroprudential regulation
An agreement was reached to conclude an agreement between the Central Bank of the Russian Federation and the National Bank of the Republic of Belarus on the principles and mechanisms of monetary policy harmonization by December 2022.
The implementation of the agreement will be aimed at achieving a comparable and consistently low level of inflation, creating similar financial conditions for business entities in both countries.
3. Harmonization of foreign exchange regulation and control
The parties agreed to harmonize the rules for opening bank accounts for residents in non-resident banks, conducting currency transactions, and requirements for the repatriation of foreign currency earnings.
4. Harmonization of information security requirements in the financial sector
The parties agreed to harmonize approaches to ensuring information security, create a mechanism for mutual recognition of audit results in the field of information security, and apply cross-border integrity control and authentication tools in the exchange of electronic information.
5. Harmonization of regulatory norms for credit and non-credit financial institutions, as well as the financial market as a whole, including ensuring the creation of common principles of deposit insurance
The parties agreed to harmonize the regulation of the financial market, in particular leasing organizations and microfinance institutions, as well as mutual access of banking and insurance organizations to the financial markets of the Union State.
6. Harmonization of anti-money laundering and financial terrorism (AML/CFT) requirements for the financial sector
An agreement was reached between the Central Bank of the Russian Federation and the National Bank of the Republic of Belarus on the harmonization of the AML/CFT legislation of the Russian Federation and the Republic of Belarus for the financial sector and the implementation of joint activities in this area.
7. Integration of payment systems in the field of national payment card systems, financial message transmission and settlement systems, implementation of the international financial message standard ISO 20022, fast payment systems, development of financial technologies, harmonized approaches in the field of supervision and monitoring of payment systems
The parties agreed to improve the mechanisms of cross-border exchange of financial information between Russian and Belarusian credit institutions and legal entities, as well as to develop cooperation on fast payments, transfer of financial messages and settlements, supervision of payment service market participants, and development of financial technologies.
8. Harmonization of requirements in the field of protection of the rights of consumers of financial services and investors, as well as prevention of unfair practices in the financial market
The parties agreed to develop proposals for the harmonization of the legislation of the Russian Federation and the Republic of Belarus in order to ensure the provision of an equal amount of protection of rights to consumers of financial services using the same financial services.
9. Integration of information systems of state regulatory bodies on traceability of goods
The parties agreed to synchronize approaches to the functioning of the traceability mechanism, integrate information systems to automate data exchange, which will ensure control over the turnover of goods subject to traceability.
10. Integration of product labeling information systems
The parties agreed to unify approaches to the legal regulation and technical support of mandatory labeling of goods by means of identification, to synchronize the work necessary for mutual recognition of identification tools, in order to ensure unhindered access to the market of labeled goods.
11. Harmonization of tax and customs legislation and cooperation in the customs sphere
In the tax and customs spheres, the parties agreed to conclude international agreements on general principles of taxation for indirect taxes and on deepening cooperation between customs authorities, introduce an integrated system of indirect tax administration of the Russian Federation and the Republic of Belarus, and establish a joint advisory body – the Union State Committee on Tax Issues.
Approaches to maintaining statistics on mutual trade, systems for categorizing participants in foreign economic activity, and the institution of authorized economic operators will be harmonized.
12. Integration of information systems of state regulatory authorities in terms of veterinary and quarantine phytosanitary control
The parties agreed to integrate information systems in order to automate the process of data exchange on issued certificates of quarantine phytosanitary control (supervision). Traceability of controlled goods and quarantined products will be ensured, which will increase the effectiveness of quarantine phytosanitary and veterinary control (supervision) and speed up the movement of goods and vehicles across the state border. The Parties will ensure traceability of all livestock and plant-based products.
13. Integration of transport control information systems of state regulatory bodies
The parties agreed to develop software that will allow the exchange of data on the results of transport control on the territory of the two states, which will increase the transparency and safety of road transport.
14. Unification of transport market regulation
In the field of air transport, equal tariff conditions will be implemented for the provision of airport and air navigation services, as well as restrictions on frequency and unification of airworthiness regulation will be lifted.
In the field of railway transport, it is planned to work out the unification of legislation, including tariff regulation, licensing, organization of passenger and cargo transportation, security, and requirements in the field of labor relations.
In the sphere of water transport, vessels flying the Russian and Belarusian flags are supposed to sail along the internal waterways of the parties according to unified rules. In the field of road transport, an agreement on transportation on a non- permissive basis will be concluded.
In the field of road management, general norms of legislation will be prepared in terms of classification of roads, requirements for the implementation of road activities, ensuring road safety, placing road service facilities, and carrying out control and supervisory activities.
15. Formation of a unified gas market
The parties agreed to coordinate actions regarding the formation of prices for Russian gas for the Belarusian Side in 2022, as well as to develop principles for the functioning and regulation of the unified gas market of the Union State (by July 2022).
Until December 1, 2023, it is planned to sign an addendum to the Union Program that defines the basic principles of functioning and regulation of the unified gas market, as well as the timing of their implementation, based on the movement towards convergence of business conditions in the gas sector relative to the current level.
16. Formation of unified oil and petroleum products markets
The parties agreed to adopt an international agreement on the unification of the oil and petroleum products markets of the Russian Federation and the Republic of Belarus and the harmonization of national legislation.
17. Formation of the unified electric energy market
The parties agreed to sign an interstate agreement on the formation of a unified electricity market and rules for the functioning of this market, providing for the harmonization of the legislation of the Russian Federation and the Republic of Belarus, and also outlined a trajectory for implementing the principles of deeper integration of the electricity markets of the Russian Federation and the Republic of Belarus.
18. Development of nuclear energy
The parties agreed to ensure the unification of legislation in the areas of operation of nuclear power facilities, regulation of radiation safety, emergency preparedness and response, and management of nuclear fuel and radioactive waste by the end of 2023.
19. Formation of a unified agricultural policy
The parties agreed to implement the convergence of legislation in the field of agriculture in order to increase the volume of mutual trade in agricultural products, remove administrative barriers, ensure food security and joint scientific and technological development of agriculture.
20. Formation of a unified industrial policy
The parties agreed to encourage the development of joint ventures, as well as to implement a unified policy to support production and sales. It provides for the elimination of economic and technical barriers to the production of industrial products in order to increase the transparency of bilateral trade and increase trade turnover.
21. Introduction of uniform rules for access to state orders and public procurements
The parties agreed to harmonize legislation in the field of ensuring equal access to public procurement and public procurement, as well as in the field of regulating state (municipal) procurement. An agreement was reached to use bank guarantees issued by Belarusian banks for public procurement in Russia and eliminate restrictions on access to state (municipal) procurement.
22. Uniform rules for consumer protection
The parties agreed to conclude an intergovernmental agreement on common Rules for consumer protection in the Union State by December 31, 2022.
23. Unified competition rules
The parties agreed to approve common approaches to the formation and implementation of competition rules on the basis of an intergovernmental agreement that will define common competition rules, including the powers of the antimonopoly authority in terms of the possibility of appointing unscheduled inspections and examinations.
24. Unification of requirements for the organization and implementation of trading activities
The parties agreed on the adoption of regulatory legal acts that provide common requirements in the field of trade and public catering regulation, as well as on the harmonization of legislation in this area.
25. Formation of common principles of functioning of the single communications and informatization market
The parties agreed to develop new and update existing intergovernmental, interdepartmental and other agreements in the field of communications and informatization, to unify legislation in the field of postal communications, to build the infrastructure of communication networks, as well as to abolish roaming on the territory of the Union State. It provides for the harmonization of the use of electronic documents and electronic signatures, as well as the provision of public services in electronic form.
26. Unification of accounting regulations and preparation of accounting (financial) statements
The parties agreed to create conditions for the circulation of comparable consolidated financial statements of business entities, to form an information base for expanding foreign economic, investment and business ties, to allow business entities to enter international capital markets, and to provide interested parties with access to the financial statements of business entities.
27. Unification of legislation in the field of tourism activities
The parties agreed on the harmonization of tourism development strategies, norms for the activities of guides and interpreters, and the creation of common rules for informing about the standardization of the quality of hotel services.
Guarantees provided to tourists in the provision of tourist services, requirements for conducting tourist activities in terms of financial responsibility of the tour operator will be unified, and the rights of tourists will be protected if the tour operator cannot fulfill its obligations to provide tourist services.
28. Implementation of a coordinated social and labor policy
The parties agreed to develop common approaches to the harmonization of legislation in terms of labor relations and labor protection, employment, social insurance and pension provision, support for families with children, social services and social support for certain categories of citizens.
At the meeting of the Council of Ministers, the draft Decree of the Supreme State Council of the Union State on approval of the Main directions for implementing the provisions of the Treaty on the Establishment of the Union State for 2021-2023 and Union Programs was approved.
The Heads of Government note that the positive development of the Union State, the strengthening of national economies, and the solution of social tasks vital for the citizens of the Russian Federation and the Republic of Belarus are hindered by the destructive actions of a number of Western states and structures that contradict international law. In this regard, joint actions were agreed in the context of applying illegitimate economic sanctions against the Russian Federation and the Republic of Belarus.
The Russian and Belarusian sides also note their firm intention not to stop there, but to step up joint efforts to deepen integration processes within the framework of the Union Building process. We will continue to implement all the fundamental provisions of the Treaty on the Establishment of the Union State.
Russian & Belarusian troops practice fighting side-by-side in huge war-games, with rockets & tanks deployed across Eastern Europe
Putin as seen in his answer and the 2021 NSS is putting pasta in the “spaghetti bowl”. Moscow is insisting that no single national economic system should dominate Eurasia, thus this is one attempt to avoid a Chinese monopoly in Eurasia. However Russia and Belarus decide to harmonise monetary policy it will be theirs
Vladimir Putin: Regarding a common currency unit, we agree with this, and the President of Belarus has also agreed that it is very important to implement a unified macroeconomic policy. We have taken the first steps in this field. I have already said that the Central Bank of Russia and the National Bank of Belarus should harmonise monetary policy, ensure the integration of payment systems and facilitate information security in the financial sphere. This means that we are moving to address a more difficult and complicated problem.
Alexander Lukashenko: Yes, this is correct.
2021 National Security Strategy
The Greater Eurasian Partnership (GEP) prominently made its debut in the 2021 National Security Strategy, although Putin first introduced the term in the 2015 Presidential Address to the Federal Assembly. There is no doubt about the stability and longevity of the concept, which in recent years has become part of the official Russian discourse; however, it still needs to be filled with political and economic substance.
While the goal of the GEP is still rather vaguely formulated in the NSS – “Ensuring the integration of economic systems and the development of multilateral cooperation” – its strategic rationale is crystal clear. Moscow is insisting that no single national economic system should dominate Eurasia. While not overtly stated, the GEP inter alia is an attempt to avoid a Chinese monopoly in Eurasia, by building interaction mechanisms between China’s Belt and Road and various multilateral initiatives. The lack of concrete details leaves Russia with room to maneuver when interpreting the partnership in the future. Still, the most challenging task will be to sell the idea of a Eurasian “spaghetti bowl” to China. Elevating this issue to a strategic level means that the GEP is not just about economic integration, but also a matter of geopolitics with a central question: Who will have the lead in determining the rules of the game across Eurasia?
‘spaghetti bowl’…dan dan noodles. i don’t think china will have such a difficult time digesting this.
Russia and China are not as rival when it comes to Eurasian integration as the US wishes them to be. Russia has allowed Chinese investments in Central Asia while developing their own initiatives for the region
How will Russia and Belarus harmonize their monetary policy? Russia’s central bank interest rate is 6.75% and Belarus charges 9.25%. So they practice usury. They will harmonize by increasing or reducing the interest rate. There is an interest rate arbitrage opportunity here. Belarus oligarchs need to borrow in Russia. Why pay interest on the money created out of thin air? Both these nations seem to be operating their economies in the interest of oligarchs (feudal mentality).
What is their monetary allocation? What % of their money supply is allocated towards productive endeavors? It is unfortunate that generic questions are asked and the questions that will provide insights into reality are ignored. There is a big gap between rhetoric and reality.
The Russian central bank has boosted interest rates by a total of 2.5% this year. Russia’s economic recovery had slowed, with retail sales, construction and cargo shipments showing lower growth in August. Construction slows down when the interest rate go up. It becomes expensive to build. Why is their retail inflation? They are import dependent? Please explain Russia’s key economic and monetary drivers. They don’t seem to be pursuing shared prosperity.
A journalist with common sense and courage will ask the following questions to Vladimir Putin:
– What % of Russia’s money is created by the central bank, state banks and private banks?
– What is the criteria for allocating the new money and overall money supply?
– What % of money is allocated towards innovation, productivity, infrastructure, consumption credit and speculation?
Russia still doesn’t seem to have good monetary policies. Will continue to struggle. It can provide military security but not economic security in Eurasia.
I wonder when the obsessive trope that Russian Central Bank is a ‘Rothschild banking fortress’ which works against Russian interests would be put to rest?
Um, when all the Jewish billionaires in Russia are gone?
Do you really believe that the Jewish billionaires are the ones calling the shots in Russia?
I do think they are calling the shots. Because if they weren’t, they would have all ended up like Habib Elghanian.
Do you really believe that a network of global billionaires do not have considerable influence in the countries where they operate?
The fact that neither Putin, nor the Jewish billionaires have ended up like Elghanian, means that they have a working relationship.
Jews don’t have working relationships where they are not calling the shots.
Hundreds of thousands of family ties, ecomomy ties and historic and cultural ties between both countries. The Union State provides that things come together that belong together. Whilst Ukraine is drowing in their neofascist bullshit inferno, Belarussians can enjoy life as it should be. I hope that is a teaching for Moldova and Kazakhstan not to abandon friendship with Russia
This morning, at 08:45 of Moscow time, a strong tectonic earthquake struck the Geo(political) planet, having the magnitude of 20 degrees of Richter scale. But very few people noticed soil displacements, vibrations and tremor or, at least, admitted it.
The epicenter was at the spot of the very last welded joint on the Nord Stream 2 pipeline.
Its operation is expected to begin on October. So, the winter is allowed to come (not known to whom).
The causalties and destruction are so enormous that nothing will be the same as before.
This earthquake, or geoquake, coincided with another one, although less destructive (one could ask destructive to whom) which is the theme of this report.
We are witnessing many geoquakes in recent time.
How many people can remember the Urengoy–Pomary–Uzhhorod pipeline/West-Siberian Pipeline/Trans-Siberian Pipeline? I guess that not many, the bulk of commenters were not even born. I know that Wikipedia is not always a reliable source, but it retains the basic information. So:
”The pipeline project was proposed in 1978 as an export pipeline from Yamburg gas field, but was later changed to the pipeline from Urengoy field, which was already in use. In July 1981, a consortium of German banks, led by Deutsche Bank, and the AKA Ausfuhrkredit GmbH agreed to provide 3.4 billion Deutsche Mark in credits for the compressor stations. Later finance agreements were negotiated with a group of French banks and the Japan Export-Import Bank (JEXIM). In 1981-1982, contracts were signed with compressors and pipes suppliers Creusot-Loire, John Brown Engineering, Nuovo Pignone, AEG-Telefunken, Mannesmann, Dresser Industries, and Japan Steel Works. Pipe-layers were bought from Caterpillar Inc. and Komatsu…
The Soviet plans to build the pipeline were strongly opposed by the Reagan administration. Americans were afraid that Western Europe would become dependent on the Soviet gas supplies, giving an energy leverage to the Soviet Union. They also feared the Kremlin would use the export revenue for military purposes. In December 1981, the US implemented sanctions preventing American companies from exporting oil and gas technologies – necessary for the pipeline construction – to the Soviet Union. In June 1982, these sanctions were expanded to cover subsidiaries of US companies in Europe.
Washington’s Western European allies, however, refused to boycott the pipeline. The foreign ministers of the European Economic Community called extension of the American sanctions illegal and sent a formal note of protest. From the European perspective, participation in the pipeline project was seen as an opportunity for the depressed steel and engineering industry in Europe and as a way to diversify from the OPEC oil supplies.Therefore Western European governments insisted that contracts already signed between the Soviets and European companies needed to be honored. This led to several European companies being sanctioned by the US. Reagan reportedly said: “Well, they can have their damned pipeline. But not with American equipment and not with American technology.” The efforts by the US to prevent the construction of the pipeline, and its export embargo of supplies needed to build it (1980–84), constituted one of the most severe transatlantic crises of the Cold War”…
Gorbachev became the ‘man we can do business with’ (Margaret Thacher: ”I like Mr. Gorbachev. We can do business together”).
History repeats itself…first…(fill the dots).
“support for families with children”
If true, this bodes well for the long-term future of their nations.
Once upon a time, a bull called Europa to come to him to move her from Phoenikia to Crete (here I will exclude other, more violent, versions of the myth).
A long, long time after, a Bear came to her and ofered her a warm embracement telling her: Look, I have a warm and pleasent and soft furr, I will protect you from the cold, wich bring west winds. Moreover, I have gas as well, so you don’t need to be always embraced by me. I am a democratic Bear. And I can offer to you gas at a reasonable price.
Remembering her ancient and not so pleasent memories with
the Bull, although she had been afraid of the Bear for a long time, she accepted the offer.
Sometimes we adults believe in fairy tales.
I think that there are only two different long-term perspectives for Belarus:
-One is to become a depopulated, deindustrialized and woke province of the West, like some bigger Lithuania or in the worst case Banderastan 2.0 with civil war and everything.
-The other is to somehow closely integrate with the Russian Federation, maybe even merge and become an autonomous region.
The obvious choice from a historical, cultural, ethnic, religious, linguistic and economic perspective is of course the second one. The 28 points mentionned above point into the right direction. The problem is that Lukashenko prefers his so-called multi-vector policy. I suspect that it is just the current pressure from the collective West which is pushing him closer to Russia. As soon as that pressure is somewhat relieved, he will probably turn back to his old ways.
From that point of view, the western sanctions against Belarus are actually working in favour of Moscow.
Lukashenko has to deliver to Putin in order to not be deposed. Since the rigged elections last year and the ongoing unrest in Belarus Lukashenko can only stay in office if he delivers on the Union State. And when he will have delivered all he’s got then he will have to go anyhow.
People can’t wrap their minds around the fact that the “Union State of Russia and Belarus’ exists officially and legally since 1999.
A ‘Community of Belarus and Russia’ was founded on 2 April 1996. The basis of the union was strengthened on 2 April 1997, with the signing of the “Treaty on the Union between Belarus and Russia” at which time its name was changed to the ‘Union of Belarus and Russia’. The ‘Treaty on the Creation of a Union State of Russia and Belaruswas signed on 8 December 1999. The intention was to achieve a federation like the Soviet Union, with a common head of state, legislature, flag, coat of arms, anthem, constitution, army, citizenship and currency. The Union was ratified by the Russian State Duma on 22 December 1999 and the National Assembly of Belarus on 26 January 2000. On the latter date the Treaty and the Union came into effect.
It works with or without Lukashenko. The apparent ‘delay’ was a period of fine tuning the details. Russia is obviously in the phase of ‘re-ingathering the lands of Russia’. Ukraine will follow suit sooner or later.