Renewal of U.S. sanctions against the Belarusian petrochemical industry could affect the willingness of companies from other countries to cooperate with state enterprises in Belarus, a research associate of the Center for Economic Research BEROC Aleh Mazol told belsat.eu.
The expert noted that sanctions, firstly, would complicate the work of Belarusian companies in the U.S. market and, secondly, will become a signal to other counterparties who would like to cooperate with these enterprises.
“Since the sanctions are imposed by the U.S. itself, they can impose bans on dollar transactions and so on. This creates a signal for other companies that would like to work with Belarusian companies. And this is the most important blow. Not the fact that they will be banned from the U.S. market, although it will have a significant impact on their economic performance. The greater effect is that they become “toxic” to other counterparties,” explained Aleh Mazol.
The United Kingdom and the Netherlands have been the primary partners of the Belarusian petrochemical industry companies.
“More tricky working conditions in these markets will definitely limit the inflow of additional money,” stressed the economist.
On April 19, the U.S. Treasury Department revoked the general license, which suspended sanctions against nine Belarusian companies.
According to the decision of the U.S. Treasury Department, the United States will resume sanctions against the Belarusian enterprises from June 3, 2021. The United States blacklisted Belarusian Oil Trading House, Belneftekhim, Belneftekhim USA, Inc, Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk Steklovolokno.