Belarus to lose billions over Moscow’s tax maneuver

Belarusian PM Syarhei Rumas and Russian PM Dmitry Medvedev in Brest, 13 December 2018

Russia’s tax maneuver is likely to result in Belarus’ losing BYN 630 mln in 2019, Finance Minister Maksim Yermalovich said on Thursday.

According to the top official, the 2019 state budget is based on a pessimistic scenario of economic development and takes into account the negative effect the new taxation scheme in the Russian oil industry.

Moreover, Belarus may lose $8-12 bn by 2024 unless the problem is resolved through negotiations and compensations are awarded, he stressed.

Russia counts on completing the tax maneuver by 2025. It provided for a gradual zeroing of export duties on oil and an increase in the tax on the extraction of natural resources. The tax maneuver is not in the interests of the Belarusian budget, since it entails an increase in the price of oil for Belarus. This will result in the Belarusian refineries receiving raw materials at world prices and losing their advantages over competitors outside the Eurasian Economic Union.

Just beginning? Russia’s tax maneuver to hit Belarus budget

A week ago, Alyaksandr Lukashenka and Vladimir Putin publicly argued over the gas price Russia set for Belarus.


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