Belarus to keep sales up on Russian market with lower export prices
According to the National Statistics Committee, Belarus’ exports to the Russian market in January - October 2016 totalled 8.8 billion and increased by 0.7% as compared with the same period in 2015. Prices for most Belarusian export items on the Russian market fell as compared with 2015. The growth in export was mainly due to higher export volumes, including the biggest growth in exports of capital goods (machinery and equipment, means of land transport). The Russian Food Administration is likely to continue to control fruit and vegetable supply to Russia from Belarus in order to reveal re-exports. In addition, exports of non-food consumer goods from Belarus (clothing, footwear, household appliances) to the Russian market are likely to increase. Stagnation in the construction industry is likely to lower the demand for decoration and building materials from Belarus. Due to the increased share of the Russian rouble in the basket of currencies, Belarus will improve response to changes in prices in Russia, and if necessary, will step up the competitiveness of Belarusian goods by propping up the national currency.
According to Decree No. 221 of June 23rd, 2017, deadlines for the completion of foreign trade operations have been extended from 90 to 180 days for exports and from 60 to 90 days for imports. Delayed payments entailed a fine up to 2% of the transaction cost for each day of the delay, but could not exceed the total cost of the transaction. Most companies, when working with new counterparties, require a deferred payment for a period of three to six months. Due to the new regulation, violations are likely to reduce in number, so as the fines. Trade enterprises are likely to expand the assortment list due to the supply of new products in small lots, and the assortment list of exported Belarusian goods could expand, too. The new terms for completing foreign trade transactions would enable medium and small companies on the foreign trade market, exporters and importers are likely to grow in number and the geography of export-import operations could expand.