Taken into account: the share of national currencies between Russia and Belarus reached 98%

The share of national currencies in mutual settlements between Russia and Belarus is already about 98%. This was reported to Izvestia by Deputy Prime Minister of the Russian Federation Alexei Overchuk. However, according to him, Moscow and Minsk have no task to reach 100%. The policy of Western sanctions has generally spurred the rapprochement of Russia and Belarus in many areas, including the Union State, which will celebrate its 25th anniversary on December 8. Despite the significant integration rapprochement in the economic and social spheres, both countries retain their sovereignty and are in no hurry to move to a single currency, said Deputy Prime Minister of the Russian Federation. Prospects for further cooperation between Russia and Belarus in the context of geopolitical turbulence - in the exclusive material of "Izvestia".

Trade between Russia and Belarus in national currencies

This year Russia and Belarus celebrate a double anniversary: 10 years - the Eurasian Economic Union (EAEU) and 25 years since the creation of the Union State (SU). December 6 in Minsk, Vladimir Putin and Alexander Lukashenko will take part in a meeting of the Supreme State Council of the Union State, where they will review the progress of Union construction. Over a quarter of a century, the two countries have achieved an impressive level of economic rapprochement.

- The share of national currencies in mutual settlements between Russia and Belarus is already about 98%," Deputy Prime Minister of the Russian Federation Alexei Overchuk told "Izvestia". - And there is no special goal for Moscow and Minsk to reach the 100% share. It happens by itself. Business itself decides what is convenient for it, so it works.

Russia remains Belarus' key economic partner: the Russian Federation accounts for more than half of the country's foreign trade. Minsk's importance for Moscow is also growing. Last year, the republic entered the top five key trade partners of the Russian Federation, taking the first place among the CIS countries.

About 2.4 thousand enterprises established with the participation of Russian capital operate in Belarus. At the same time, a boom in registration of companies with Belarusian participation has begun in Russia: according to SPARK-Interfax, 1.9 thousand companies representing business from Belarus were registered in Russia in 2023.

The transition to settlements in national currencies is extremely important for Moscow and Minsk amid the strengthening of Western sanctions against them, said Stanislav Tkachenko, professor at the Faculty of International Relations of St. Petersburg State University and expert of "Valdai.

- "Russia and Belarus have seen that when settlements are made in American dollars and in general in the currencies of unfriendly countries, they can be, firstly, interrupted, and secondly, they can be made on terms that are not favorable, i.e. transaction costs are added," he said in a conversation with Izvestia. - Russia believes that making settlements in currencies of unfriendly states reduces its economic and financial security.

In March 2022, the West decided to disconnect the largest Russian banks, such as Sber and VTB, from the SWIFT international payment services system. It is not excluded that Gazprombank, through which European countries make payments for gas, will also be denied access to it. At the same time, the Western restrictions do not prevent Moscow and Minsk from conducting monetary transactions. Today, all Belarusian banks are connected to the Russian System of Financial Transmission (SPFS). One can freely pay with Mir cards in the republic.

Integration within the Union State

Russia and Belarus have a good basis for further development of integration processes within the Union State. Recall that back in November 2021, Moscow and Minsk approved 28 sectoral integration programs. They concerned the harmonization of currency regulation and currency control, marking of goods, the formation of united markets for gas, oil and oil products, electricity and other areas.

Food security, in particular, is of particular importance in the current conditions. In the opinion of Alexander Korolev, Deputy Director of the Central Committee of the National Research University Higher School of Economics, Russia and Belarus will coordinate their efforts more as two major producers of fertilizers and as two states in the EAEU that are fully self-sufficient in key agricultural commodities.

- And, of course, it's everything related to industrial production - here Russia and Belarus have more space due to the reduction of tariff and customs barriers and the development of industrial strategy," he said in a conversation with "Izvestia".

However, despite the significant integration rapprochement in the economic and social spheres, both countries retain their sovereignty and are in no hurry to move to a single currency, says Alexei Overchuk.

- It is much more important that our people do not notice borders, travel freely, choose where to study, work or rest, enjoy equal social rights regardless of which of the two countries they choose to live in. It is also important for businesses not to feel borders, trade barriers and to be able to freely access the large common market of the two countries. As for currency, we mutually recognize the cards of our national payment systems and have the opportunity to pay without resorting to the services of exchangers. In today's world, everything happens in a digital environment. Mutual trade is mostly conducted in national currencies and this suits business," he says.

The issue of a common currency is not so relevant today, continues Deputy Prime Minister.

- We have talked about a common currency a couple of times with our colleagues. It is just that conditions must mature for its introduction, and someone will have to substantiate why it is really necessary. I believe that at some stage, perhaps, we will come to such a level of integration rapprochement that our further joint development will require the formation of appropriate budget sources, and this will probably be the argument. Someday economic expediency will say its word, and I think that then the Belarusians will be the first to suggest switching to a common currency," said Alexei Overchuk in a conversation with "Izvestia.

In addition, according to him, it should be understood that in the minds of many people the national currency is "an attribute of sovereignty, and it should be treated with respect.

Now the main task for the Union State is to improve the quality of life of citizens of Russia and Belarus, as well as to reduce barriers between them in practical terms.

In particular, Russian Prime Minister Mikhail Mishustin earlier urged to ensure comfortable tariffs for telephone calls and digital data transmission on the Internet for subscribers of Russian and Belarusian operators from March 1 next year. They should be comparable to those for the home network, he said.

Recall that on April 1, 2022, the decision to abolish the fee for incoming calls in the Union State came into force. Outgoing calls are still charged. Nevertheless, the cost of outgoing calls from Russia to Belarus has been brought close to the cost of an inter-network call and is about Br8, reported earlier in the Belarusian Ministry of Communications and Informatization. The cost of outgoing calls from Belarus to Russia is about Br3.5 Russian rubles. More than 4 million Russian citizens visit the Republic annually, and the complete abolition of roaming charges may result in serious losses for Belarusian mobile operators.

Military cooperation between Russia and Belarus

Of course, the integration of Russia and Belarus can develop along the military-political track as well, says Alexander Korolev, Deputy Director of the Central Committee of the National Research University Higher School of Economics.

- The update of Russia's nuclear doctrine, in fact, indicates a new stage in the integration between Russia and Belarus. Our countries will continue to be the most privileged partners in the CSTO. I believe they will synchronize their nuclear deterrence policy more," he added.

On November 19, Russia's updated nuclear doctrine was approved. The Russian Federation now reserves the right to use such weapons if weapons of mass destruction are used against it or its allies, as well as in case of aggression against Russia and Belarus using conventional weapons that pose a critical threat to the sovereignty and integrity of the states.

In addition, the parties have completed work on the treaty on security guarantees of the Union State, which is to be approved at a meeting of the Supreme State Council of the Union State on December 6 in Minsk. They are also finalizing the security concept of the Union State, which is expected to be adopted in 2025. By the way, it also contains a provision on NATO's destructive activities in the CIS.