MINSK, 21 June (BelTA) – The Belarusian Universal Commodity Exchange has suggested that metal producers from the Russian Federation should use the commodity exchange in order to sell their products in Belarus and third countries. The proposal was put forward by Yevgeny Bureiko, Head of the Metal Products Trade Office of the Belarusian Universal Commodity Exchange (BUCE), at the Russian conference “Electronic commerce on the market of metals” in Moscow, BelTA has learned.
According to Yevgeny Bureiko, Western sanctions have substantially reduced the geography of export of Russian metal products, this is why the redirection of export shipments to other markets is a burning issue. The Belarusian Universal Commodity Exchange could help with that, he noted. In addition to the Belarusian market, which consumes nearly 3 million tonnes of metal every year, the Belarusian Universal Commodity Exchange can offer direct access to consumers from CIS states, Asia, and Africa via the transit deal mechanism.
The executive remarked that trading via the Belarusian Universal Commodity Exchange is less risky thanks to the delivery versus payment principle. Interests of both the buyer and the seller are safeguarded thanks to this scheme. As a key advantage Russian producers can sell metal with payment deferment and can be confident they will get the money in the specified time period, Yevgeny Bureiko said. In turn, Belarusian buyers get what is essentially a free inventory credit. The Belarusian Universal Commodity Exchange acts as the guarantor of commitments of the contracting parties in this case.
In January-May 2022 the Belarusian Universal Commodity Exchange made Br889 million worth of transactions with metal products, 12% up from January-May 2021. Ferrous metals and goods made thereof constituted over 77% of the total volume of sales in this category.
