Russia - Belarus are about to have a common currency
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Russia – Belarus are about to have a common currency


On September 3, the Chairman of the Committee for Community of Independent States (CIS) issues of the Russian State Duma (House of Representatives), Mr. Leonid Kalashnikov said Russia and Belarus are prepared for the use of the currency. only on the state territory of the alliance.

Russia - Belarus is about to have a common currency
Belarusian President Alexander Lukashenko and Russian President Vladimir Putin.

Mr. Kalashnikov said that it is completely possible for both sides to use the common currency after doing an in-depth study, including the establishment of a money-issuing center.

According to Mr. Kalashnikov, this possibility, or the formation of a single parliament of the two countries, will require major changes, even at the constitutional level. This is likely to be a topic discussed in detail at a meeting between Russian President Vladimir Putin and his Belarus counterpart Alexander Lukashenko, which takes place in Moscow in the coming days.

Earlier, the Russian State Duma said a common currency with Belarus could be applied at least after 2030.

President Lukashenko also mentioned the possibility of forming a common means of payment, but stressed that it must be a new currency, not the currency of an existing country.

Since last year, the Russian side has sent a message suggesting that Russia and Belarus may consolidate part of the economy from January 2021.

Kommersant newspaper quoted the draft economic integration program, proposed by the parties in early September, as saying that the level of integration will be higher in the European Union. Essentially, the negotiations revolve around establishing a federal state at the economic level by 2022.

According to Kommersant, consolidation will include the introduction of unified civil and tax laws, foreign trade mechanisms, homogeneous asset calculations and social guarantees, and general banking oversight. Two central banks, a single agency that regulates the oil, gas and electricity markets, along with harmonized state regulation of industries. However, the consolidation cannot be on equal grounds because the Russian economy is 29 times the size of the Belarusian economy.

According to the Kommersant newspaper, the draft does not affect areas such as defense, national security, courts, law enforcement, the internal structure of the executive branches in Russia and Belarus, as well as executive power of the federal state.

The Treaty on Establishing the State of the Russian Federation and Belarus was signed on December 8, 1999. After being ratified by the State Duma (House of Representatives) Russia and the Belarusian Parliament, the Treaty and the State of the Federation entered into force from January 1, 2000.

However, according to Kommersant, substantive negotiations at the presidential and governmental level only begin in Spring 2019.

So far, after the post-electoral protests took place in Belarus, it seems that this partnership has a chance to be strongly promoted.

Hai Lam

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