Business news

MINSK, 16 March (BelTA) – Belarus plans to sign an export loan agreement with Sberbank of Russia. The relevant decision is laid down by Council of Ministers executive order No. 184 of 10 March 2015, BelTA has learned.

The document approves the draft agreement between the Belarus government and the public joint-stock company Sberbank of Russia on terms of loans for buying Belarus-made goods in Russia.

The Belarusian Finance Ministry and the Industry Ministry have been authorized to conduct talks with the Russian side. They are authorized to sign the agreement. Once the document is signed, these government agencies will have to ensure its implementation.

BPS Sberbank will be in charge of executing the agreement and will be entitled to collecting fees of at most 0.02% of the sum that Belarus’ central state budget has to compensate for.

Speaking about the executive order of the Council of Ministers, representatives of the Belarus government said that there are several financial mechanisms used to encourage Belarusian export. One of them is implemented in accordance with Belarus president decree No. 466 of 24 September 2009. The export lending scheme specified by the decree enables competitive terms for selling Belarusian products in Russia and allows end users to buy highly effective, complicated products and machines of Belarusian make. The export incentives specified by the decree allow increasing the volume of export, ensure the timely transaction of foreign currency proceeds to Belarusian manufacturers, and keep Belarusian manufacturers busy.

OAO Sberbank of Russia is the Russian Federation’s largest bank that owns about 27% of the Russian banking system’s assets. The Central Bank of the Russian Federation is the founder and the main shareholder.

When the program for preferential lending for purchases of Belarusian machines was available in 2009-2014 as part of Belarus president decree No. 466 of 24 September 2009 with assistance of OAO Sberbank of Russia and OAO VTB Bank over 13,600 units of machinery were supplied to the Russian Federation in accordance with the data dated by February 2015. In 2014 as many as 1,974 units of machinery were sold using loans of OAO Sberbank of Russia.