Russian ruble will stay as a means of payment

Transactions between Russia and Belarus will not be switched to dollar or euro

Konstantin Artushin, the trade representative of Russia in Belarus, stated that the currency of transactions betwen two states will not be changed to dollars and euros. Additionally, the euro can not be considered a stable currency these days. As RIA News states, a part of transactions between Russia and Belarus are in the Russian ruble, and the tendency will consolidate.

‘I suppose that the euro can not be considered a stable currency. I believe that the question of changing the currency of transactions to dollars under the embargo is not an efficient solution’, – Artushin said in response to the question of whether Russian businesses are ready to carry out the transactions with Belarus in dollars or euros in order to avoid the risks due to instability of both national currencies.
According to the Russian trade representative, ‘we have achieved reasonably stable exchange rates of both Russian and Belarusian ruble in relation to the euro’. He also reported that these days half of the Russian export to Belarus is being carried out in the Russian ruble, half – in dollars, while 70% the Belarusian export to Russia is being carried out in the Russian ruble.

‘The Russian ruble is a preferable means of transactions. Since the exchange rates stabilized, I believe that the tendency to perform transaction in the Russian ruble will consolidate. The Belarusian ruble will also stay a means of transactions, but to a lesser degree. Both rubbles are preferred in transactions though,’ – Artushin said.

We would like to remind the readers that the question of changing the currency of transactions to the foreign currency – the dollar of the euro – was raised by Alexander Lukashenko.

Positive externalities may include a decrease in net costs. ‘For now we live in a grand style, thinking that everything will stay constant. But we have to strain ourselves. I am reported about the agricultural businesses on a daily basis – there is no problem with carrying out the transaction in the ruble. Since the ruble devaluated to 70 for one dollar, we will use this number for transactions. We take prepayments, and that is how it is supposed to be. There are no other options.’ Dollars, not rubles, are used to pay for electrical energy. This, by the way, is a flaw in the policy of the Russian government – they should have used stable currency [the dollar] a long time ago. The government reported me that the changes had started. Buyers of our goods in Russia pay in dollars or in rubbles according to the current exchange rate,’ – stated the president.

In his turn, the Minister of Foreign Affairs of the Russian Federation, Sergey Lavrov, commented on the statement by saying that the change of the transaction currency to dollars and euros will be inefficient to the Belarusian economy.  ‘Concerning Belarus and the change of transaction currency to euros and dollars, the commodity turnover between Russia and Belarus is huge, with more goods being exported to Belarus from Russia. If the currency of transactions is changed, Belarus will have to exploit its currency reserves in order to meet the conditions.’

About Yuri Drazdow (80 Articles)
Yuri Drazdow is the founder and owner of The Minsk Herald. He is also a journalist specialising in area of business and politics. He has degrees in Journalism and Software Engineering and has been working on media and IT projects in Minsk and London.
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