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Economy
29 October 2021, 18:00

Belarus, Russia discuss formation of single commodity exchange market

An archive photo
An archive photo

MINSK, 29 October (BelTA) – The Belarusian Universal Commodity Exchange (BUCE) and the St. Petersburg International Mercantile Exchange (SPIMEX) discussed a possibility of establishing a single commodity exchange market in the Union State of Belarus and Russia, BelTA learned from the press service of BUCE.

Taking part in the negotiations were the heads of BUCE and SPIMEX, as well as Minister of Antimonopoly Regulation and Trade of Belarus Vladimir Koltovich. The event was held in a mixed format (online and offline).

“Removing barriers and creating a level playing field for competition is a basic condition for the formation of a common commodity market of Belarus and Russia,” Vladimir Koltovich said.

“The participants agreed that exchange trading can become one of the successful integration projects of our countries. Moreover, we have already come a long way in this area and achieved certain results. Today there are no obstacles to using the technological and intellectual potential of commodity exchanges in implementing integration programs of the Union State,” the press service said.

Among the issues brought up for discussion were benefits of inter-exchange integration. In particular, according to Chairman of the Board of BUCE Aleksandr Osmolovsky, the combination of experience, knowledge and technical competencies of the Belarusian and Russian exchanges will give a powerful incentive to the development of commodity exchange markets of the two countries and create prerequisites for sustainable growth of mutual trade.

“I am confident that through joint efforts we will be able to achieve much more both in the development of national commodity markets and in strengthening our positions in the international arena. You will help us strengthen our weaknesses, and we will help you strengthen yours. For example, you have expertise in energy trading and the derivatives market, while we can share our best practices in the export of timber products. You will certainly be interested in our best practices in transit exchange trade when both the seller and the buyer are non-residents of Belarus,” Aleksandr Osmolovsky noted.

SPIMEX President Aleksei Rybnikov concurred with the opinion of his Belarusian colleagues and highlighted the importance of exchange trade as one of the drivers of Belarusian-Russian economic integration. “In my opinion, by prioritizing the mechanism of exchange trade within the framework of the Union State programs we will facilitate their accelerated implementation. After all, the exchange is not just a platform that accumulates supply and demand. It sets objective prices and provides equal access to resources for all business entities. The exchange is, first of all, an extremely effective tool for de-monopolizing the market and eliminating trade barriers. The interests of the state are fully taken into account, too. This mechanism excludes corruption, drives down prices, increases tax revenues, boosts entrepreneurial activity and the economy overall. In this regard, aligning the exchange markets of Belarus and Russia will certainly create a fertile ground for many other economic integration projects and will enable us to successfully solve the strategic tasks facing our countries,” he said.

The parties agreed to draft a plan of interaction, craft the measures to remove barriers to exchange trade, and to consider joint action to sell commodities to third countries using exchange mechanisms.

Founded in 2004, the Belarusian Universal Commodity Exchange conducted its first trading session in June 2005. BUCE is one of the largest commodity exchanges in Eastern Europe. Its main function is to assist Belarusian enterprises with export and foreign companies with entering the Belarusian market. BUCE sells a wide range of metal, forestry, and agricultural products, industrial and consumer goods.

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