Barys Zhaliba Says: Authorities Fear of a Social Upheaval

Price boom for household utilities is waiting on the Belarusians before the end of the year.

The other day Lukashenka signed Decree № 322 "On Non-Cash Housing Allowances." According to officials, in October only 10% of families will be able to take advantage of allowances (utility bills equal to 20% of the income of a city dweller, or 15% of the income of a village resident). This campaign requires 50 million of non-denominated rubles.

Zhaliba: Authorities are trying to prevent upheavals among the poor.

Doctor of Economics Barys Zhaliba believes that Lukashenka's decree on granting allowances can mean that prices on household utilities can increase again soon.

- There is no extra money in the country now, and the increase of tariff rates is possible. Another thing is that the authorities are trying to prevent the upheavals among tenants who belong to socially vulnerable segments of population. Real income drop and price increase for rent bills affect the most vulnerable segments of population. Authorities are trying to do something to reduce the level of discontent for them not to be blamed for doing nothing, Barys Zhaliba says in an interview to Zautra Tvaye Krainy.

Who can use housing allowances?

The economist recalls that the strategic goal of the state is well-known - to take a full recovery for tariffs for housing and communal services, like it is done in developed countries.

- It can happen at any moment. Perhaps it will happen before the end of this year, Barys Zhaliba predicts.

Manenok: The population will not notice the gas price reduction

Last week Kommersant informed that the gas conflict between Moscow and Minsk was about to be resolved and the parties agreed on a new pricing scheme - the gas price for Belarus will be reduced by 30%. However, the Energy Ministry states that the negotiations still continue.

Expert on energy Tatstsyana Manenok notes that, apparently, Belarus will take advantage of it.

However, it will be only a tactical victory, given that the transition to equal-netback pricing is postponed. In addition, low oil prices might cause drop in revenue of Gazprom and it almost equals to the yield on supplies in Russia. The company may reconsider its policy on domestic prices aimed at their increase.

The expert can't predict the behavior of the government towards spare money.

According to Tatstsyana Manenok, other variants are possible. It is possible it will decide to increase the competitiveness of industrial companies, which pay more than they should. Either resources will be directed to cover housing allowances.

But prices for household utilities "will not be reduced", the experts predicts.