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29.05.2014

EAEUs perspectives for Belarus: Enterprise takeovers and rise in prices 10

14:16, — Economics
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EAEUs perspectives for Belarus: Enterprise takeovers and rise in prices

Fifteen percent of Belarusian enterprises will face bankruptcy.

This opinion the head of the Strategy analytical center Leanid Zaika expressed today as he commented for the Radio Svaboda on todays signing in Astana of the agreement on the creation of the Eurasian Economic Union.

Any country, any, that enters integration, gains something due to the expanded economic space, - the economist says. As to this specific union, Belarus will use Russias energy resources. But not to the fullest, but through a filter. However, this too is very important to us, because we cannot find any other partner with similar energy resources. This is on the plus side.

There are, though, much more minuses for Belarus of entering the new union, of which, according to Leanid Zaika, experts know.

Point one competition increases in the market of the three countries, - he points out. Point two as a result of competition, a certain number of Belarusian enterprises will go bankrupt. I think, it might account for up to 15% of the total number. Point three the prices on energy resources and products, made from them, remain regulated. There will be no real energy market. This is also a negative moment. Point four Belarus will face the necessity of a structural reorganization. This means it will be necessary to change certain parameters of labour division. And, finally, point five Belarus will have to face the advance of powerful Russian business. We do not have large private businesses. While free movement of capital in any of the three countries, that is foreseen by the agreement, means that Russian capital may freely come here, buy, and take over Belarusian enterprises. This is, perhaps, the most serious issue.


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