Siamashka: Customs Union to be blamed for economic failures

The deputy prime minster found who is to blame for the economic crisis.

Belarus's economy suffers losses due to imperfection of the Customs Union's legislation, Interfax news agency quotes the country's first deputy prime minister Uladzimir Siamashka.

“Belarus incurs great losses due to imperfection of the Customs Union's legal framework. The resolution of the Russian government almost closed access to the Russian market for Belarusian agricultural machinery. The preference of 15% was banned,” Uladzimir Siamashka said Thursday in the “house of representatives,”

He added that Russia's decision to impose a recycling fee depending on the country of destination would lead to MAZ's losses – 18% of the product cost.

The deputy PM noted that the industrial output reduced 2% in 2013 compared to 2012. “With the industrial growth of 98%, inventories will fall to 62% of the average monthly output,” he said. The deputy PM noted it wasn't a satisfactory performance and reminded that it was planned to increase the industrial production by 7%.

The Ministry of Industry is expected to reach the industrial production growth of 97.5% against current growth rate of 92.9%, Belneftekhim – 97.5% against 93.9%, Bellesbumprom forestry concern – 103% against 98.1%, Bellegprom light industry concern – 101% against 95.5%, Siamashka says.

The deputy PM called to consider the total results of the five-year plan to evaluate the work of ministries objectively. He said that “taking into account the failures of this year” the Ministry of Industry would increase the volume of output by 22.9%. If the ministry raises production by 7.8% in 2014 and 8.9% in 2015, the total increase will reach 44.3%, Siamashka says.

Belarus will prepare a package of measures to protect domestic manufacturers after the entry into force the recycling fee in Russia on November 1, 2013, the deputy PM says.

“The prime minister and I discussed this issue yesterday. The Ministry of Economy, the Ministry of Finance, the Ministry of Taxes and the MFA were instructed to prepare a relative draft decree. We must solve the issue by January 1, 2014, in order not to let our manufacturers down.” Siamashka said.

He noted that Belarusian manufacturers would lose $350m a year due to Russia's recycling fee, which would be collected from the country of destination starting November 1, 2013.