Barys Zhaliba: All the talks about European market is nothing but propaganda

The economist doesn’t see any “factors that will lead to the sudden breakthrough into the EU market”.

Aliaksandr Lukashenka is worried about overstocked Belarusan warehouses and demanded to unload them by autumn, through European market, too. Whether the breakthrough or at least positive dynamics towards Europe is possible, EuroBelarus Information Service asked Barys Zhaliba, professor and the head of the finance and loans chair in Minsk Management Institute.

- It is such Belarusan goods as oil products and potash fertilizers that are in demand with the EU, i.e. basically such raw products that don’t need substantial processing. All the rest is not so important; so talks about sudden decision of the EU to buy something else is nothing but propaganda. I see no factors that will lead to the sudden breakthrough into the EU market. The quality of Belarusan products can’t compete with the European quality, and neither can the price.

- So it means that Lukashenka gives empty promises, doesn’t he?

- Aliaksandr Lukashenka started exploiting administrative resources to the full and holding numerous conferences. Well, this can work and rescue Belarusan economy to some extent. But since 2009, when Russian market came to our rescue by taking up Belarusan goods, new factors have appeared. Thus, Russian market is in stagnation, and after its entrance into the World Trade organization, Russian products compete with imported goods.

- So it is only Moscow direction that we still have?

- Yes, Russian vector still determinates Belarusan export, though recently Belarusan administrative resource turned into the direction of the Third World countries. Belarus may have some positive effect from it, as our authorities hope; however, orientation at Russia will still be the leading one.