Proceeds from duties on petroleum products have little effect on international reserves

In January 2015, Belarus’ gold reserves totalled USD 4.724, USD 334.4 million less than in December 2014. In 2015, Belarus’ budget gained circa USD 100 mln from export duties on oil products produced from Russian oil. Proceeds from export duties on petroleum products only slow the shrinking pace of the international reserves. In order to reduce this pace further, the government is likely to tighten measures on consumer imports, to prolong restrictions on foreign currency purchases on the domestic market, and to enable new issues of foreign currency bonds with longer maturity period by Belarusian banks while increasing the interest rates on them. Privatisation should not be regarded as a source to replenish the international reserves; therefore, the only remaining option is loans from Belarus’ allies – Russia and China.