Belarus EU Press Review: Summer/2011

NBRB’s refinancing rate up to 27% as from 1 September

The administration of Belarus’ central bank has decided to up the refinancing rate. It will be raised by five percentage points as from 1 September to 27% per annum.

Gazprom May Sign Belarus Gas Contracts, Buy Pipeline in December

OAO Gazprom, Russia’s gas export monopoly, plans to sign contracts with Belarus and agree on buying the 50 percent of the national pipeline operator it doesn’t already own in early December.

Royal Bank of Scotland abandons Belarus

The Royal Bank of Scotland, which issued more than $800 million in Belarusian state bonds earlier this year, abandoned its Belarusian operations.

More U.S. Sanctions On Belarus

The United States has imposed new economic sanctions against four major Belarusian companies. This latest round of sanctions, announced on August 11, targets: the oil refiner Naftan OAO; fertilizer and consumer goods manufacturer Grodno Azot; Grodno Khimvolokno, which manufactures nylon and polyester yarns and fibers; and Belshina, one of Europe’s largest tire manufacturers.

Nadezhda Yermakova appointed head of National Bank of Belarus

On 27 July President of Belarus Alexander Lukashenko signed a decree to appoint Nadezhda Yermakova chairperson of the Board of the National Bank of Belarus.

Geologists Found Previously Unknown Oil Fields in Belarus

Carrying out the task of President of Belarus Alexander Lukashenko to find minerals, enterprise Belgeologiya opened several previously unknown oil fields. A new oil deposit was found in Kasrtychnitski district of Homel voblast, reported the Republican Unitary Enterprise Belgeologiya.

Moody's Downgraded Ratings of Six Belarusian Banks

International rating agency Moody's downgraded the ratings of deposits in national currency of six Belarusian banks: BBK, Belagroprombank, Belinvestbank, Minsk Transit Bank and Bank Moscow-Minsk from B2 to B3 level, Belpromstroibank – from B3 to B1 level.

Moody's Cuts Rating On Belarus, Mulls Additional Downgrade

Moody's Investors Service lowered its junk-level bond ratings on Belarus and warned future downgrades are possible as disagreements over energy prices and privatization have led to a fraying relations with Russia, a key supporter.

Belgian Business Interested in Belarus’ Transport and Logistics Sector

The Belgian business is interested in the transport and logistics sector of Belarus, Ambassador Extraordinary and Plenipotentiary of Belarus to Belgium, Belarus’ permanent representative to the European Union Andrei Yevdochenko told BelTA.

Pyotr Prakapovich Dismissed as National Bank Chairman

Alyaksandr Lukashenka, by his July 18 presidential edict, relieved Pyotr Prakapovich of the duties of chairman of the National Bank of Belarus (NBB).

European Parliament Chief Sees Change In Belarus, Says Door Open For Eastern Neighbours

Jerzy Buzek predicts imminent political changes in Belarus and says the door to the European Union remains open for six former Soviet republics in the EU's eastern neighborhood program.

EU Cuts Import Duties on Potash from Russia, Belarus

The European Union cut import duties on potash from Russia and Belarus on Wednesday, ending almost 20 years of trade barriers against the imported fertiliser and prompting praise from British farmers.

Belarus to Sell Russia a Number of Major Enterprises

Mikhail Miasniovich said that Belarus is considering the sale of Grodnoazot stake by Russian companies Rosneft and Sibur, while Naftan – by Lukoil company, Beltransgaz – by Gazprom, Mazyr Oil Refinery – by Rosneft, MAZ – by Russian machines and Russian Technologies, part of Integral shares - by Russian Technologies. Belarusian authorities also intend to sell part of MTS stake.

NBRB Raises Refinancing Rate to 20% p.a. 13 July

The NBRB intends to implement a consistent interest rate policy aimed at gradually raising the general level of interest rates in the economy to help curb inflation and encourage saving processes in the country.

New Investment Protection Mechanism in Belarus to Encourage Investors

A new mechanism for protecting investments in Belarus will send good signal to potential investors, the head of the investment directorate of the Economy Ministry Kirill Koroteyev told reporters on 8 July when commenting on the country’s full participation in the Multilateral Investment Guarantee Agency (MIGA).

Belarus Assistance Officials Meet with Commission and EEAS

EU assistance to Belarus officials have organised their first meeting with the European Commission and the European External Action Service (EEAS) to discuss aid effectiveness.

DTEK Resumes Export Of Electricity To Belarus

As Ukrainian News earlier reported, from May 1, DTEK suspended export of electricity to Belarus due to debts of Belarus for the delivered electricity.

Inter RAO Restores Power to Belarus in Full on Debt Payment

Russian President Dmitry Medvedev ordered the resumption of electricity supplies to the neighboring country, a day after Belarus announced that it paid the final 611 million Russian rubles ($22 million) owed, Medvedev’s spokeswoman, Natalia Timakova, said yesterday.

Sale of Beltransgaz Shares Depends on Gas Prices for Belarus, Myasnikovich Says

Sale of Beltransgaz shares depends on the gas prices for Belarus, Prime Minister of Belarus Mikhail Myasnikovich said in an exclusive interview to BelTA

Belarus to Sell its Gas Pipelines to Russia

Belarus says it will sell its remaining stakes in its strategic natural gas pipelines to Russia's Gazprom for $2.5 billion.

Belarus Considering to Sell its Stake in Beltransgaz to Gazprom

Belarusian First Vice Premier Vladimir Semashko has told reporters that his government will likely sell all its shares in Beltransgaz to Gazprom by the end of the year, giving the Russian company full control of Beltransgaz.

National Bank Increases Refinancing Rate for the Fifth Time This Year

National Bank's refinancing rate is going to increase by 2% on June 22 and will amount to 18% per annum. This is provided by decree № 230 of the National Bank of June 14. It will be the fifth increase in the refinancing rate for the year; it rose last up to 16% per annum on June 1.

Russia Restores Power Supplies to Belarus

The Russian Inter RAO UES company has restored the volume of electric power supplies to Belarus, spokesperson for that country’s state energy company told journalists.

Belarus Not to Sell Belaruskali, Semashko

Vladimir Semashko says that information about negotiations with the Russian company Uralkali is just journalists' speculation.

Belarus Must Accept Structural Change for New Aid, IMF Says

Belarus should let the exchange rate float and boost interest rates to slow the expansion of credit, said Chris Jarvis, head of the IMF mission in Belarus. Any new program would be for at least three years, compared with the 15-month, $3.5 billion loan Belarus received in 2009, he said, adding that there have been no “substantive discussions” on the amount.

More Preferences for Investors in Belarus

More preferences will be granted to investors in Belarus. President of Belarus Alexander Lukashenko signed relevant decree No. 4 on 6 June. The new decree amended decree No. 10 “Additional conditions for investment activities in the Republic of Belarus” of 6 August 2009.

Belarus Mulls Sale of Potash Producer

Cash-strapped Belarus is considering the sale of one of its most valuable state-owned assets, potash giant Belaruskali, and has already discussed possible deals with investors from China and Russia.

Russia Cuts Electricity Supply to Belarus Because of Debts

Russia to halve the electricity supplies to Belarus because of debts. Belarus owes approximately RUB1.5 billion for electricity, supplied in March-April 2011.

Belarus Asks IMF for Stabilization Loan

Consultations regarding the relevant action plan of the government and the National Bank of Belarus will be held as part of the work of the IMF mission in Belarus that starts on 1 June 2011.

Belarus Raises Key Rate to 16%, Most in World, to Stem Outflows

Belarus raised its main interest rate for the second time this month to the highest in the world, as it sees to stem outflows and bolster the ruble.

S&P Lowers Belarus Debt Ratings On Funding Concerns

Standard & Poor's Ratings Services lowered Belarus's junk-level, long-term local currency sovereign credit rating one notch, citing the rising general government debt burden and decreased fiscal flexibility. The ratings agency lowered Belarus to B from B+, which leaves it five steps below investment grade.

Belarus EU Press Review: Summer/2011

Official Documents, Statements and Press-Releases