Belarus’ authorities use inauguration of Ukrainian president for breakthrough in international relations
On June 7th, President Lukashenko attended the inauguration of Petro Poroshenko as Ukraine’s new president in Kyiv.
Lukashenko’s visit to Kyiv was kept a secret until the meeting between Presidents Poroshenko and Putin during the D-Day 70th Anniversary celebration in Normandy. The Belarusian authorities seek to use the opportunities opened up by events in Ukraine to step forward onto the international arena – primarily to normalise relations with European capitals amid the currently trending de-escalation of the confrontation between the Kremlin and Kiev. The Belarusian government also hopes to gain economic benefits from the Russo-Ukrainian conflict by increasing the penetration of Belarusian products into Ukraine and mediating the penetration of Ukrainian goods to the EEC market and vice versa - Russian goods to the Ukrainian market.
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.