Business news

MINSK, 15 August (BelTA) – The increase in VAT in Russia in 2019 might have an impact on Belarusian exporters; however, it does not pose serious risks for them, Belarus’ First Deputy Economy Minister Dmitry Krutoi told reporters at the conference “Eurasian Economic Union: Development Strategy” on 15 August, BelTA has learned.

“On the one hand, the price rise on the Russian domestic market provides a good opportunity for us to get more foreign currency revenues. On the other hand, if prices go up, this might somewhat hurt demand for our products on the Russian market,” Dmitry Krutoi said.

As far as the socio-economic forecast and export strategies of Belarus’ key mechanical engineering companies are concerned, there are no serious risks for 2019; all the contracts of these companies for the next year have been confirmed.

At the same time Dmitry Krutoi noted that the fluctuations of the Russian ruble to the dollar are more sensitive for the Belarusian economy than the VAT rise in Russia. Therefore, the National Bank and the government are closely monitoring this situation.

As was reported earlier, Russia will increase its VAT from 18% to 20% in 2019.