ST PETERSBURG, 17 July (BelTA) – Russia's national development bank VEB.RF, Belarus' Bank BelVEB and BelAZ signed an agreement to support the export of Russia-Belarus joint products to third countries. The agreement was reached at a session of the national business councils on the sidelines of the 6th Forum of Regions of Belarus and Russia on 17 July, BelTA has learned.
BelAZ Director General Piotr Parkhomchik told reporters that these markets are Latin America, Africa and Southeast Asia. “This is not just financing, but cheap money that will enable us to manufacture and sell competitive products,” he noted.
Chairman of the Board of Bank BelVEB Vasily Matyushevsky told reporters about the terms of financing. The financing will be provided at subsidized rates: Russia's budget will subsidize the component parts of the Russian make, while the Belarusian budget will cover part of expenses incurred by banks that finance the export of joint products. Belarusian subsidies will amount to up to 4% in US dollars and up to 3% in euro.
Speaking to reporters, Chairman of the Belarusian Chamber of Commerce and Industry Vladimir Ulakhovich called the BelAZ export support agreement a unique example, a direct instrument to support joint products on the markets of third countries. He believes that this is a good example to follow. “Maybe, we could tap into the Union State budget in order to cover the interest payments for banks that issue export loans. It will not take a lot of resources. However, it will give rise to a new trend. The Union State business community will get a sense of what the Union State support is,” Vladimir Ulakhovich said.
The participants of the session discussed unfair competition, restricted access to public procurement, absence of a common manufacturing policy. “We should find a way to move on even without this common policy. We should work, support assembly factories in Russia that are still not entitled to subsidies and benefits and fall under the legal regime for foreign companies,” he said.
The session of the national business councils that took place on the sidelines of the 6th Forum of Regions of Belarus and Russia resulted in contracts estimated at about RUB8 billion, which is equivalent to slightly more than $120 million.
