Belarus is well-know in the world due to its more or less tight political-economic relations with Russian Federation rather then its economic level. It is the country that cannot be uninteresting for the Slovak economy due to its number of inhabitants and neighbourhood with Russia and Ukraine. It is a reason why we asked Jan Prislupsky, Slovak General Consulate to Belarus OBEO (Commercial and Economic Department of Slovak Embassies abroad) Chief, to respond some questions.

At the beginning, we would to ask you to characterise the trend of Belarus trade balance.

The volume of the foreign trade with countries of the Commonwealth of Independent States went up by 3.2 per cent (of this by 6.9 per cent with Russia) and other countries by 4.6 per cent for January-November 1998 as compared with the same period of 1997. Exports to countries of the Commonwealth of Independent States reached the level of US$3.9 billion (of this volume US$3.5 billion to Russian Federation) and to other countries US$1.3 billion. On the other hand, volume of imports was US$ 6.5 billion for the aforementioned period; of the countries of Commonwealth of Independent States, Belarus imported goods worth US$4.2 billion (import from Russia worth US$3.5 billion) and from other countries US$2.3 billion. Belarus had a debit balance of foreign trade ( for the period from January to November 1998) worth US$1,211 million (11 per cent of the Gross Domestic Product/GDP). In comparison with the same period of 1997, it increased by 22.1 per cent. Countries of the Commonwealth of Independent States have share worth US$243.8 million and other countries worth US$967.2 million on the deficit of Belarus foreign trade.

It is said that indebtedness of the country stems from its dependence of gas deliveries from Russian Federation . . .

Delivery of Belarus food products as an exchange for gas delivery from Russia are basis of the agreements on mechanism concerning liquidation of Belarus indebtedness towards Russian Federation. Since October 16, 1998, Belarus debt for delivered gas from the Russian Federation is worth US$290 million. Reasoning that Belarus (BR) will pay its debt for gas, in addition to food products, by technical products is necessarily conditioned by need of mediators on Russian market, who would withdraw Belarus production.

Even though, Russian market has a great interest in food products from Belarus, they can be exported only in volume not drastically threatening supply of domestic market by food products. In addition to export of goods (such as tractors, refrigerators and others), the situation is more or less complicated. These products are needed in Russia, but on the other hand return of financial means for their delivery and consequent sale is too long and it increase the risk factor of commercial transactions.

According to our information, Belarus still have not made more extensive progress in market reforms. Can be expected some important considerable changes?

Belarus government is going to run up the privatisation process and contribute to development of private sector. Active negotiations with mission of the International Monetary Fund (IMF) and World Bank are ongoing. Information from administration of Belarus President indicates possibility of privatisation of telecommunication network and railways with participation of foreign capital in keeping a key control from the side of Belarus. Similarly, beginning of reforming processes on countryside are expected. Currently, considerable volume of non-repayable financial means are invested into the agriculture and despite this fact prices of food have still increasing character.

Which sectors of Belarus economy do you consider as being prospective from the point of view of export activities of Slovak entrepreneurial subjects?

From the point of view of the aforementioned prospect into the future, we can include there all sectors of Belarus national economy. I give an example regarding supply of engines from ZTS Martin to BELAZ Zodino or Minsk-based tractor company, participation in reconstruction of railway (Dubnica nad Vahom), delivery of surgical and dentist technologies and instruments, agricultural products, package material and package technologies, as well as delivery the Senica-based Slovak silk production. Our firms also participated in construction of housing flats and hospitals, building of filling stations, network of GSM and cable television.

Very important activity in Belarus is establishment of the joint companies orientating their attention towards production of beer, wine, vodka (delivery of technology for Mogilov, Brest, Vitebsk and others), meat-processing in Borisov or secondary processing of car tyres in Mogilov (Matador Puchov), similarly as production of shoes and boots in Brest and Mogilov. Further activity is founding of commercial-technical and marketing centres within the framework of Belarus.

Can you tell us what activities for deepening of mutual commercial relations do you prepare in 1999?

During the first three months of 1999, the Fourth Session of Mixed Belarus-Slovak Commission for Commercial-Economic and Scientific-Technical Cooperation will take place. We expect participation of the Slovak commercial missions, which organise regional chambers of the Slovak Chamber of Commerce and Industry (SOPK) based in Zilina and Kosice. Furthermore, fair activity Slovakia '99 and journey of Belarus economic subjects to Slovakia are being prepared.

Slovak Trade FORUM