Belarusian delegation in Venezuela
The Belarusian Delegation, headed by the First Deputy Prime Minister of Belarus Vladimir Semashko, visited Venezuela on 26 – 30 April.
The members of the delegation included Deputy Foreign Minister Sergei Aleinik, Deputy Minister of Architecture and Construction Sergei Lastochkin, Deputy Industry Minister Gennadiy Sviderski, Deputy Minister of Agriculture and Foodstuffs Leonid Marynich, Deputy Chairman of the Belneftekhim, Vladimir Volkov, as well as representatives of several Belarusian enterprises.
Comment. In addition to the existing extensive programme of the Belarusian-Venezuelan cooperation on the construction of Venezuelan sites, it appears that the parties will discuss other issues, primarily economic. However, given the current economic crisis in Venezuela, one should not expect significant funds coming to Belarus from them.
Belarus buys oil from Venezuela for almost $ 800 per tonne, while Russia supplies at $ 430. Moreover, the current contract with Russia obliges Belarus to buy 22 million tons of oil, which makes economically inefficient the purchase of 4 million tons of the overseas oil. It is possible that the subject of negotiations (given Vladimir Semashko’s role of Energy supervisor in the country) will concern the prospects and the outcome of the diversification of oil supplies to Belarus and the end of the “Venezuelan” project (Azeri oil supply was also virtually frozen, only 600 million tons of oil were supplied from the needed 800 million tons, Mozyr oil refinery is closed in April and for the following two months for repairs, i.e. in addition to the controversial economic effect of the project, Belarus is physically not able to process the Venezuelan crude oil). Last week Belarus tried to negotiate processing of Azeri oil at Ukrainian refineries. It also shows the reduced interest of Belarus in the Venezuelan-Ukraine-Azerbaijan oil transport project.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.