The Kremlin’s pressure on President Alexander Lukashenko is growing
President of Belarus A. Lukashenko and President of Russia V. Putin played ice hockey in the Olympic palace in Sochi. This is already the second meeting of the heads of states within less than a month, which is determined by the intensified pressure from Moscow to establish the Eurasian Economic Union.
This is confirmed by the demand of Russian Prime Minister D. Medvedev, which followed the meeting of the presidents, to agree upon the draft treaty on the Eurasian Economic Union by April 17, 2014. The Kremlin is still taking advantage of the weakening of the Belarusian state and strengthening its presence in Belarus in exchange for short-term preferences offered to official Minsk. This year Russia’s presence in the Belarusian economy will be reinforced by privatization of some of the state assets by Russian companies.
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.