Aleksandr Lukashenko holds press conference for Russian regional mass media
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Belarusian-Russian integration contributes to the preservation of unity in the entire Eurasian space, President of Belarus Aleksandr Lukashenko said at the press conference held for Russian regional mass media on 11 October.
The press conference lasted for five and a half hours. The President answered more than 30 questions about the Belarusian-Russian cooperation in various industries, participation of Belarus in integration processes. Journalists also asked questions about Belarus’ experience of state construction, social reforms, development of economy and the manufacturing industry. The head of state also answered questions about the prospects of cooperation of Belarus with various Russian regions which were represented by the reporters. The press conference helped reveal a number of problem issues in the bilateral cooperation. Aleksandr Lukashenko instructed the government to address these issues.
About the importance of unity on the post-Soviet space
The global financial crisis has affected all the countries, including Belarus. It has dampened the pace of economic development, made the export of products and services complicated, particularly starting from H2 2013. This is why it has never been more important for Belarus and Russia to be together in order to more successfully overcome emerging problems. We know that things are not easy in Russia, too, particularly in the production sector. You have seen that we are not as rich as Russia in gifts from the God. Therefore, our entire country is all about the real production sector of the economy, something that is made by hands and brains of our people. Therefore, things are difficult for us right now.
It is also important that the Belarusian-Russian integration contributes to the preservation of unity in the entire Eurasian space. It is the historical significance of Belarusian-Russian relations in modern conditions. Together with Russians we were the first to embark upon such a deep integration after the Soviet Union collapse, a level of integration that we have reached neither in the Customs Union nor in the Single Economic Space. Today we put consistent efforts, we work together for the sake of creating the Eurasian Economic Union. I would like to underline that these processes are not a meaningless phrase. Thanks to tight economic, political, and other ties between our states we already have an excellent opportunity to sell merchandise on the huge market and to protect interests of our countries against external threats together. If we feel brotherly shoulder, it is easier to go through new political and economic challenges and a lot of them are ahead…
Every year competition gets tougher across the globe. The strong ones dictate their terms to the entire world and often disregard not only international norms but basic logic and any kind of decency. Belarus is a peaceful country that has lived through a lot of hardships in its history. But nobody can reproach us for making problems primarily for our neighbors. We work alone to build our sovereign independent state. We are open to cooperation with everyone, who understands us and is ready to respect our national interests. I am convinced that Russia understands that a friendly and rapidly developing Belarus is a reliable ally in the modern unpredictable world…
Belarus highly appreciates the support and fruitful cooperation with its strategic partner in economic, defense, foreign trade, social, cultural affairs. During the current media tour you visited a factory, in which Russian investments had been poured. There are a total of over 2,500 enterprises with Russian capital in Belarus. The number rises all the time as well as the volume of our mutual trade. The fact that between 1996 and 2012 the trade turnover has increased nearly sevenfold – from $6.5 billion to $44 billion — vividly confirms it. The comparatively small Belarus is Russia’s second largest foreign trade partner among the CIS states and the sixth largest trade partner among all the countries of the world. If the present impressive trend continues in the near future we are quite capable of raising the trade turnover to $50 billion…
You have seen the real picture, the way Belarus lives every day. We are proud of our accomplishments but do not hide the shortcomings and there are many of those. Nobody can have an easy life in the modern world.
About the essence of the talk
I am ready to answer all kinds of questions of Russian journalists and it is not a publicity move on my part. It is easier for some people to do publicity moves in Belarus than for me to do the same in Russia. You see that we are not closed for Russian mass media. All, even hateful TV channels broadcast in Belarus. And decent channels that mark the anniversary are also available in Belarus with various programs like Batka 1, Batka 2, three, four… We do not close our media space for them. Every day our people see Russia the way you present it via mass media…
Thanks to the mass media you represent, a huge audience, from Kaliningrad to Vladivostok, will get reliable information about our people, their lives and aspirations, about companies and organizations, about the benefits of integration projects for Russians and Belarusians…
Unfortunately, if it were not for you, Russians would get little information about Belarus, if any. Therefore, the only objective of my meetings with you and your media trips to Belarus is to give you an opportunity to show Belarus as it is, so that Russian people living across the Urals, in the Far East and other parts of Russia will know that Belarusians are strong people who value strong friendly ties, and have a great attitude to Russian people, that nothing has changed after that horrible war when we fought side by side and died together in trenches. We were and still are allies and I really hope that we will keep expanding our cooperation despite some obstacles. I wish that those haters that wanted to break our ties were never happy with their own successes. That is what my publicity moves are about.
About the relations with the President of Russia
It is more important how we discuss issues rather than what issues we discuss. These are always absolutely friendly talks. We always can sit down and have a candid discussion of any issue which sometimes is even inadmissible in relations, for instance, between Russia and the United States, other countries. It is a great achievement. When holding talks with any state, you always stick to some canons, protocols, and diplomatic things. Here, we feel as if we live in one state. We have good relations although I would not say they have always been cloudless. We have always had enough issues to address. There were disagreements, and you remember them. We did not hide their reasons. But the main thing was how we settled those disputes. We settled them as friends, without any huge damage to each other. Our relations and our dialogue are a set of issues we have between our states. And not only issues. There are good things as well, and we are happy to note them. It is always a pleasure to discuss such things…
Problems in relations between Belarus and Russia are mainly objective. We have been recently paying more attention to integration. The matter pertains to the Union State of Belarus and Russia and the establishment of the Single Economic Space and the Eurasian Economic Union in the future. We have a lot of issues here since all these processes affect the three countries: Belarus, Kazakhstan and Russia, starting from ordinary people up to large holding companies and associations.
We are planning many joint Belarusian-Russian events. For example, the recently-held military exercise West 2013. I do not know why it gave such a hard time to the whole NATO machine. They were deeply concerned about the exercise. But everything is clear as day here: there is an army, military people who have to hone their skills in order to perform their duties professionally. If it is necessary, they need to learn. So we learnt together. Belarus and Russia have a joint armed group in the region, with the Belarusian army comprising the bulk of it. In case of any conflict or, God forbid, a war, we have plans that the first strike will be addressed by the Belarusian army who will be reinforced by the troops of the Russian Federation on the same day to defend our joint space.
About the Union State
Today the Union State construction process is not only a guideline but some program, a template for creating new integration associations, including the Eurasian Economic Union…
The Union State project was the first integration project in the ex-USSR. We have done a lot in this regard. Let me quote you a simple example: when we speak about this or that matter within the framework of the Customs Union and the Single Economic Space, I just stay away from such discussions. We have gone through those discussions in the Union State.
A session of the Supreme State Council took place some time ago. For some reason the Russian government did not take part in the Union State Council of Ministers session which was supposed to take place in September, if I am not mistaken. They said that Kerimov was offended and others were, too. If that was the reason, then we will just have to wait. It means that we still have problems in the Union State.
About regional cooperation
They ask me to meet with them (Russian governors who come to Belarus. – Editors’ note). I understand this is not presidential level. To come to any country and meet with the first person is prestigious for a politician. I understand them. I am ready to work for their prestige because once they saved our relations with Russia…
There were times when we could break up, and drift far apart from each other. And back then, realizing that not everything was decided in the Kremlin, I suggested we should establish direct regional cooperation. Politicians in the Kremlin, in Moscow sobered up and decided not to hamper these ties. This resulted in all-round collaboration between our regions and regions of the Russian Federation…
In developing commodity distribution networks we do not target Moscow. On the contrary, we are very pleased to work with you, to create joint ventures in the regions, near consumers. We can create venture to recycle, assemble and sell. Why? Because then there will be more interest and responsibility on your part. We will have partners who will be involved in the business we are interested in. It is extremely advantageous. If you have any problems in this regard, we are ready to solve them.
About NATO exercise
We know that NATO will soon be holding the exercise in the Baltic region. We will make a statement to that effect, but only once. We will not go hysterical. I think that the Foreign Ministry, maybe the press service of the Defense Ministry or the minister himself will make a statement on this, but in a human way. “Guys, what’s up? You made a drama out of our exercise and now you are holding one of your own near the borders of Belarus. And what is the aim of the exercise?” This is what we are going to say. Otherwise, it will be a sign of weakness. Why should we be hysterical?
For example, let’s look why Poles reacted that way (upon the West 2013 exercise. – Editors’ note)? Once the Poles agreed to host the US missile defense system. Then, for some reasons, they suspended the process. But Poland wants to revive the project, and quickly. I do not know why they want to put themselves in harm’s way. After all, an anti-missile installation is a priority target for destruction in the event of a conflict. Both the Russians and Belarusians have enough means to disable it. And such capabilities are plenty.
For the Poles this is money. Poland is the stronghold of Americans today on the European continent. It is known to all. And they went hysterical: “Look, this aggressor Lukashenko, the dictator, and the second one in Moscow are about to conquer Poland”. And what is the purpose of this? To get money. Get the money and get the anti-missile defense system to Poland. Because if this defense system is built in Poland, it is natural Poland will get economic benefits and handouts. Because the Americans will have to feed a part of Poland or the whole Poland so that they are quiet and not anti-American and service the missile defense system. There were many reasons for that outcry. But we are not going to appease them and repeat what happened…
Most people know the situation only from mass media. But the Belarusian and Russian military know exactly what happened there. They scrambled all their forces, I just do not know why. They controlled airspace right up to outer space. We were not going to launch ballistic missiles. Why such control? We saw all of this. We have modern means of tracking it. We have seen their nervous reaction but took it calmly.
About humanitarian aid
When the trouble came to Amur Oblast (the recent flood. – Editors’ note) we, of course, came to help. Your governor outlined the possible cooperation areas. The humanitarian assistance, food and other things, which Belarus sent, is only a fraction of what we would like to do for your region…
A program concerning relief effort in the flood-hit areas is being elaborated in the region. We told the governor: you are welcome to include us in any section of the program if you deem it necessary. We will be there and provide considerable assistance… You do not need to thank us for the aid because we simply could not act differently.
About migration policy
Over the past five years more than 35,000 Russian people became permanent residents of Belarus. However, about 9,000 Belarusians were given residence permits in Russia. These are eloquent figures… The biggest problem of ours is not even money (although there are always money issues in these market economy conditions), but people. Belarus needs twice as many residents as it has now, i.e. 20 million people. We are able to feed them. They will work here and produce even more goods. If a Russian wants to live in Belarus we will welcome him.
About death penalty
We have not abolished the death penalty. I do not think it is good that we have the death penalty. But I am not the reason why it has not yet been abolished. There are still such cases in the country when you want to apply the death penalty. For example, the terrorist attack in Minsk metro. Our police found them within three days. What right to life they have if people died in the metro? A range of activities and the way of life in the state must create the security and safety of people… The most important thing is not to forgive. Police should work off the money the state allocates for them.
About the Big Family project
I have once instructed one person, a banker, who has a big family to work through the issue. And he sent a report to me. I have read it and said that I have a proposal. Of course, we will work on the issue. I do not know yet what we will choose. But there is proposal, for instance, to open a bank account to which $10,000 will be credited for the birth of the first child, $10,000 for the birth of the second child and $10,000 for the birth of the third child. These funds cannot be used before a baby turns three years old or comes of age. We have not decided yet. This is just like your maternity capital. But the system is more transparent for people. It will make $350 million per year if we provide $10,000. This is just one proposal…
Three children in the family should become the norm. Only then we will have the future and develop as a normal sovereign and independent state. The price is great, probably $1 billion or even $2 billion. But the goal is great too. Human resources are crucial to a state.
About memory
To preserve the memory of the past, it is not enough to remember the past and commemorate the Great Victory. Every day, every hour we should raise our children and grandchildren; we should tell them about the war. Every night I tell my son stories related to the military events of various periods, not only the Great Patriotic War, but also the Patriotic War of 1812. He is already aware of the war and the damage the Nazi brought. This should be a norm in our families, because young people of today are different, no matter how wonderful and great they are…
Belarus has been doing a lot to preserve the memory of the past. There is the Belarusian State Museum of the History of the Great Patriotic War and the new building of the museum is under construction now. This will be Europe’s biggest and most advanced museum about the Great Patriotic War.
About potassium
No responsible statesman would act the way he has done (S.Kerimov, a shareholder of Uralkali. – Editors’ note). He doesn’t care in the slightest. It is his way of doing things. He is a market-minded businessman. This enterprise (Uralkali. – Editors’ note) was built by Russians, Belarusians, Tadjiks, Uzbeks… The enterprise was created by everyone many years ago. He grabbed these shares instantaneously and he does what he wants… And Berezniki (the Russian town where Uralkali is located. – Editors’ note) does not profit from getting land slumps. The owners don’t care that the enterprise doesn’t work and that people over there are paid very low salaries!
I am fed up with private businessmen of that kind. They just want to grab their profits and hide them somewhere far away in Cyprus, in Switzerland or some other offshore area…
You can take Uralkali’s shares away from the scoundrels, who have acquired the shares in some incomprehensible ways, and give the shares to people in Berezniki. For $20 billion that the company cost you could have built a blooming paradise there…
Kerimov, Baumgertner and the like promised to bear social responsibility, take care of jobs and so on when they acquired the enterprise. In your place I would have locked up Kerimov and his people for one night. The next day they would have sold all the assets at the top price. If they had failed, I would have found a buyer for them. It would have earned $12-13 billion now. And I would have sent all the money to Berezniki…
You are wasting your time trying to find money in Baumgertner. What money does he have? One hundredth of what Kerimov people have, I’ll have you know. He was an employee but he is guilty…
I have received a letter from Berezniki residents. I intended to travel there and tell the truth to people, to tell them how things happened. But I think they would not understand me right. But we are preparing an answer for the people. I know how the signatures were collected. Ordinary workers do not care who the managers will be, they just need jobs. But the managers have ruined the enterprise!
The shares of our company have not collapsed. Yes, our budget has lost up to $1.5 billion. But you (Russia. – Editor’ note) have lost twice as much. The price for potash fertilizers reached $900 per tonne with Belarus getting $4 billion in earnings every year. But then some people approached Rybolovlev (former owner of Uralkali. – Editors’ note), demanding his shares and threatening him with imprisonment or murder. I am not covering for him. But he was honest, he worked the way we agreed. I am not going to specify the sum he sold the shares for. It was a good price but nothing compared to what the company was worth. And he was thrown out.
Kerimov promised to take care of the development of the industry. Later on he said he was quitting the Belarusian Potash Company, severing relations, going to sell merchandise on his own, focusing on volumes instead of prices. And by doing it they broke the market and damaged budgets of nations.
We could make the decision (in the Belarusian Potash Company. – Editors’ note) only together and they were unwilling to get the decision made. While we had chosen the new director, they just didn’t want to hold the session of the supervisory board to approve this decision. Why? They said they wanted us out of the market in order to use the market for themselves.
Before that there was an attempt to buy Belaruskali. A person approached me offering $10 billion as the state cut and $5 billion as my cut. I told the person: tell him he will be imprisoned if he comes here. The attempts stopped. But still tension remained. The grudge lingered on because I didn’t sell the company. Hence we got quarrels.
I had only one request: do not block decisions of the Belarusian Potash Company. Arrange a session of the supervisory board, get the new director appointed, and disappear, we will work without you. But three days later Gutseriyev (a famous Russian businessman. – Editors’ note) told me sincerely that the request had been bluntly declined. Our law enforcement agencies had accumulated a lot of criminal evidence by then. I told them to do their duty. They launched a criminal case and put his (Kerimov’s. – Editors’ note) name on the wanted list. And then I was told that Suleiman Kerimov felt sorry and asked for forgiveness. I said it was okay, I can forgive but you have incurred huge damage and we have created a new company to sell merchandise already. May God be with you, but we are not going to close the criminal case…
We used to make nearly a half of the world’s potash fertilizers (together with the Russians. – Editors’ note). Nobody would sign a contract in China, India, Brazil until we signed it. Everyone looked up to us. Was it bad for the potash industry and for Russia?
About shadow economy
Shadow economy is a usual thing for market economy. That is why its existence in Belarus is theoretically possible, and we actually have it. However, the state is working hard to deal with the issue. The government has been taking efforts to prevent the shadow economy from looming.
About corruption
If you have started fighting this hydra, fight it till the end. Working by fits and starts is unacceptable. It is one of the most important issues the President should monitor every day. In our reality corruption can be compared to rust. Rust corrodes all metals. For example, we have created a good structure, but in a month or a year it is destroyed by rust. Therefore, if corruption is widespread in a country, no matter what you do, everything will fail…
There are several basic requirements. If you have said that you will fight corruption, you should have an impeccable reputation. If there is a slightest suspicion that you have done something wrong, something that can be interpreted as corruption, your reputation will be ruined forever. You are no fighter. There can be mistakes, but it is better to avoid them. It is a very delicate work, delicate fight. It can be compared to self-sacrifice. You cannot be rich, you cannot even earn money. Your children cannot work at commercial, private companies where they will be able to make money in an honest way. Therefore, when I became President, I immediately told my children: you will never run a private business as long as I am President. I am carrying on…
I spent over two years (as an MP. – Editors’ note) dealing with these matters. I am fully aware of these issues. We adopted a very tough stance. Many still say that Lukashenko came to power on an anti-corruption platform. My first bid for presidency focused on the fight against corruption…
People will not understand (if there is involvement in corruption. – Editors’ note). They will be offended by it and will not forgive. If you take something from someone even once, this will not be a secret. All your efforts to confront corruption will look like a dog and pony show. Presidents have a somewhat different way of thinking than the majority of people. Some want to provide for themselves and their families; some do it legally, some illegally. I want to remain in people’s memory; I do not want people to throw stones at me while passing by. It is important for me. For that I am ready to work hard and I am working…
If people find out that their boss is corrupt, the President will know about it the same very second, because this is the way our society is. People will not tolerate it. Nobody will say that corruption is endemic here, that our officials are bribe takers and so on. Sometimes I feel pretty awkward. They meet with officials from Russia and Ukraine. Ours work three times harder. I am responsible for them. Belarusian officials cannot afford a suit costing fifteen thousand; they cannot afford a suit for $2,000-3,000 either. This immediately draws people’s and my attention towards them. I know which officials got their houses constructed and how much it cost them, because each of them informed me about it…
I am not saying that there is no corruption in Belarus and that everything is perfect. The entire world has this problem. What is the West? The West is totally corrupt; however the corruption there is legalized. What is treated as bribery here is absolutely legal and transparent there. Some people here are trying to copy the West in defiance of the law. Maybe, we will be like them some time in the future, but I would not like it to happen.
About market principles
This should be done very carefully and smoothly to prevent social tensions. Otherwise, these tensions will be very hard to defuse afterwards. Later, when gangsters will seize the economy, they will do anything to confront the state and preserve what they think is theirs. They already have their militants booted and spurred, and they have their deadly weapons – terrorism - that spread around the world. We cannot let it happen. No country can let it happen…
So I say: here it is, guys, buy it, the price for Belaruskali is $30 billion. They say: we will give $15 billion, of which $10 billion will be transferred to the budget and the remaining $5 billion will go to you. No way. We do not need this kind of market economy.
About cooperation with Ukraine
Why are we blaming Ukraine (talks on Ukraine’s association with the European Union. – Editors’ note)? I remind Kazakhstan and Russia that they are both holding such talks. We are not, because they do not want to talk to us at all. It is clear that Lukashenko is an arch enemy for them. Maybe, they will never talk to me. I will not give our companies to them, I will not let them hurt our people…
You are holding talks, they are holding talks. There is no drama about it. There is no drama either that they (Ukraine. – Editors’ note) will sign some agreement with the European Union. There is a risk, however, that these documents will block their way to us, to the Customs Union, the Single Economic Space and the Eurasian Economic Union…
If the Ukraine-EU agreement provides for lower customs duties, this may do harm to the SES partners, provided the borders are open. Therefore, you (Ukraine. – Editors’ note) can conduct talks and sign agreements with anyone you want, but if you want to join us, you will have to honor our arrangements. Otherwise, we will not be able to cooperate with you, especially in economy and trade. I told Azarov (Prime Minister of Ukraine. – Editors’ note) about it and repeated what I had said at the private session. Putin upheld me on that. I talked to him a day before yesterday, we touched upon this matter. He said: It is absolutely right, let them proceed with these talks, they are a sovereign and independent state, however they might block their way to us and bring damage to us by signing some agreements…
People are not to blame for anything. Even if Ukraine joins NATO tomorrow, we will have to maintain relations with them. There is no other option for us – our people are there…
This is quite a problem. But we should, without blaming each other, sit down and try to come to grips with the situation before Ukraine signs this agreement with the EU. We need to think what we will do in each of the possible developments.
About the salaries of doctors and teachers
We have raised the rate from 18 to 20 hours. The resources freed as a result of this measure have been given to schools. But teachers continue complaining about low salaries. And I agree with them. This is the problem we must address in the near future, however difficult it can be…
This is one of the most demanding jobs. We have one kindergartener and a nanny for 25 children in a kindergarten. Every child needs attention. They should be taught and prepared for school. And these workers have very low salaries.
About gambling business
When Russia prohibited gambling, its gamblers flocked to Belarus, especially from Moscow. Some in Belarus made proposals to prohibit this business as well, but I did not support the idea. I suggested we wait and see whether they would bring us harm or not. We supervise casinos very tightly but we are not planning to outlaw them. We do not want to drive them under-the-counter. But control is very tight. We want casinos to play by the rules…
We are tightening the control and want it at the level of Las Vegas. We have not witnessed such phenomena as in Moscow. Although, I think that many gamblers moved from Moscow to Minsk. Many rich Muscovites love to fly over here and spend money here, a lot of money. Yet, tough rules should be for all. Honesty and fairness must be at the heart of everything, including in gambling business.
About labor migration
People from Uzbekistan, Tajikistan, other countries, mainly families, people with kids come to Belarus. We welcome them. If they settle down in rural areas, ask for land, it is profitable for us. They work in the civil engineering industry and so on. The best propagandists in Belarus are people that come to Belarus from where life is difficult. They are pleased to become private businessmen, farmers, work in the manufacturing sector.
The fact that they come here is not important. Having a system in place, procedures for welcoming them are.
About the merger of MAZ – KamAZ and OAO BelAZ
I ask an investor about three things. Is he ready to invest in the company growth, implement new technologies and penetrate new markets to promote the company’s products? Considering these three parameters, they (the Russian side. – Editors’ note) have no money, their technologies are worse than those of MAZ, because MAZ produces competitive products which sales would be the same as those of KamAZ if the two companies were in equal conditions. In what way are you going to take part in the modernization? In no way? Then I have a question for you: can you guarantee that you will not try to buy the company for a song (you have no money to pay a fair price) and make sure that MAZ will not end up producing only wheel rims? Can you guarantee that? I am not sure. That is the answer to your question…
We will not give BelAZ to anyone. It is among the country’s brands, it is our pride. The company holds over 30% of the global market of trucks. The company was the world’s first to roll out the dump truck with the carrying capacity of 450 tonnes…
About money
Today’s situation is complicated. We do not hide it from people, they can see it. But complicated in what way? Everyone is waiting to see whether there will be devaluation or not. If Belarusians rush to foreign exchange offices, buying foreign currency in a panic in anticipation of devaluation, may God help them. It is this kind of complicated. I cannot complain about the rest of the things. No, prices are not low. We cannot make prices lower if the borders with Russia and Ukraine are open. I have to balance things and keep prices at the Russian level. It is economy, it is impossible to avoid. But people are accustomed to prioritizing the fact that salaries in Russia are higher. But there are many people in Moscow, who earn millions and billions, and then there are people, who have next to nothing to eat. Therefore, life can be bad in Moscow, too. Many Belarusians understand it and treasure the fact that they live in Belarus…
Imagine how much less Belarusians pay for utilities. On the other hand, it is bad. Before the crisis we had an average salary of $500. I said that after the financial crisis of the year 2011 we had to return the salaries that people had once. Now the average salary is about $720. We pay this salary while sales are low. With these prices, which growth we try to slow down, people pile up spare money. On what do the Belarusians spend money? On foreign currency. If they deposit what they earn in banks, it is good. But some foreign currency is just stored in homes. And it is difficult to earn foreign currency. We need a lot of foreign currency to pay, for instance, for natural gas and oil. We don’t have spare resources.
About the 2014 IIHF World Championship
I have warned everybody both private traders and state-owned retail organizations not to overprice their services (during the 2014 IIHF World Championship. – Editors’ note). Usually, you know, prices are sky-high during big sports events. Ukraine is still criticized for the European Football Cup. People who come to the country to attend a big sports event will still pay hotel services even if they are thrice as high, but leave the country with bad impressions.
About excessive export and import
In January-August some of our citizens visited the European Union 700 times. They take there fuel or some other products and bring clothes to sell here. We used to call them profiteers. Today it is a business. Every year our citizens take out $3 billion to buy rags in the EU, in Lithuania, Poland. And they say the Belarusians are poor...
Meanwhile, Belarusian products are of high quality and in demand in the Russian market. Linen, clothes, footwear sell out within three hours at any fair. This is true for Moscow too, which is a demanding city. When Russians suspended the import of Belarusian dairy or some other products, people from Bryansk and Smolensk started coming to Belarus to buy things here. No one has the right to stop them on the border. It speaks volumes about the quality and competitiveness of Belarusian products.
About pride
I am proud to be the elected president of my people. It is sincere truth. The fact that we have created our own state is an accomplishment of myself and my colleagues…
Belarus used to be an outskirt, a province. A well-developed one and convenient, I’ll grant you that. I cannot say the republic was a bad one during the Soviet times. It had some drawbacks. People were not even mentally prepared for it. We took over the country on the edge. We have preserved it, we have clothed and fed people. We have modernized the country and the enterprises the best way we could. At the same time we have created a sovereign and independent state, it was extremely important…
It is the only thing I can name my accomplishment. The nation did the rest. And I wasn’t alone creating the state. I was just lucky to be at the forefront of the process.
About denomination
Denomination is not a problem. This is purely a technical issue. But I think that it is better to carry out denomination when the situation on the foreign currency market is stable. We have not considered this issue in detail yet. But we are ready to conduct denomination at any time…
If the situation on the foreign currency market allows denomination we will do it. It is not a single-step action. It has to be announced in advance, a decree is to be signed. We will simultaneously use old and new notes. It is not an unexpected event, but an ordinary technical procedure.
It is not a problem. We know it. We have already printed new notes. We did it several years ago. However, we need to do certain preparations for it. Then we will announce about it in advance, sign a decree and conduct denomination.
It is more important to ensure stability on the foreign currency market. This, in turn, depends on the performance of the economy, export, import which has to be reduced. But that is not the most important thing. Our major concern is the stability of the population.
The press conference lasted for five and a half hours. The President answered more than 30 questions about the Belarusian-Russian cooperation in various industries, participation of Belarus in integration processes. Journalists also asked questions about Belarus’ experience of state construction, social reforms, development of economy and the manufacturing industry. The head of state also answered questions about the prospects of cooperation of Belarus with various Russian regions which were represented by the reporters. The press conference helped reveal a number of problem issues in the bilateral cooperation. Aleksandr Lukashenko instructed the government to address these issues.
About the importance of unity on the post-Soviet space
The global financial crisis has affected all the countries, including Belarus. It has dampened the pace of economic development, made the export of products and services complicated, particularly starting from H2 2013. This is why it has never been more important for Belarus and Russia to be together in order to more successfully overcome emerging problems. We know that things are not easy in Russia, too, particularly in the production sector. You have seen that we are not as rich as Russia in gifts from the God. Therefore, our entire country is all about the real production sector of the economy, something that is made by hands and brains of our people. Therefore, things are difficult for us right now.
It is also important that the Belarusian-Russian integration contributes to the preservation of unity in the entire Eurasian space. It is the historical significance of Belarusian-Russian relations in modern conditions. Together with Russians we were the first to embark upon such a deep integration after the Soviet Union collapse, a level of integration that we have reached neither in the Customs Union nor in the Single Economic Space. Today we put consistent efforts, we work together for the sake of creating the Eurasian Economic Union. I would like to underline that these processes are not a meaningless phrase. Thanks to tight economic, political, and other ties between our states we already have an excellent opportunity to sell merchandise on the huge market and to protect interests of our countries against external threats together. If we feel brotherly shoulder, it is easier to go through new political and economic challenges and a lot of them are ahead…
Every year competition gets tougher across the globe. The strong ones dictate their terms to the entire world and often disregard not only international norms but basic logic and any kind of decency. Belarus is a peaceful country that has lived through a lot of hardships in its history. But nobody can reproach us for making problems primarily for our neighbors. We work alone to build our sovereign independent state. We are open to cooperation with everyone, who understands us and is ready to respect our national interests. I am convinced that Russia understands that a friendly and rapidly developing Belarus is a reliable ally in the modern unpredictable world…
Belarus highly appreciates the support and fruitful cooperation with its strategic partner in economic, defense, foreign trade, social, cultural affairs. During the current media tour you visited a factory, in which Russian investments had been poured. There are a total of over 2,500 enterprises with Russian capital in Belarus. The number rises all the time as well as the volume of our mutual trade. The fact that between 1996 and 2012 the trade turnover has increased nearly sevenfold – from $6.5 billion to $44 billion — vividly confirms it. The comparatively small Belarus is Russia’s second largest foreign trade partner among the CIS states and the sixth largest trade partner among all the countries of the world. If the present impressive trend continues in the near future we are quite capable of raising the trade turnover to $50 billion…
You have seen the real picture, the way Belarus lives every day. We are proud of our accomplishments but do not hide the shortcomings and there are many of those. Nobody can have an easy life in the modern world.
About the essence of the talk
I am ready to answer all kinds of questions of Russian journalists and it is not a publicity move on my part. It is easier for some people to do publicity moves in Belarus than for me to do the same in Russia. You see that we are not closed for Russian mass media. All, even hateful TV channels broadcast in Belarus. And decent channels that mark the anniversary are also available in Belarus with various programs like Batka 1, Batka 2, three, four… We do not close our media space for them. Every day our people see Russia the way you present it via mass media…
Thanks to the mass media you represent, a huge audience, from Kaliningrad to Vladivostok, will get reliable information about our people, their lives and aspirations, about companies and organizations, about the benefits of integration projects for Russians and Belarusians…
Unfortunately, if it were not for you, Russians would get little information about Belarus, if any. Therefore, the only objective of my meetings with you and your media trips to Belarus is to give you an opportunity to show Belarus as it is, so that Russian people living across the Urals, in the Far East and other parts of Russia will know that Belarusians are strong people who value strong friendly ties, and have a great attitude to Russian people, that nothing has changed after that horrible war when we fought side by side and died together in trenches. We were and still are allies and I really hope that we will keep expanding our cooperation despite some obstacles. I wish that those haters that wanted to break our ties were never happy with their own successes. That is what my publicity moves are about.
About the relations with the President of Russia
It is more important how we discuss issues rather than what issues we discuss. These are always absolutely friendly talks. We always can sit down and have a candid discussion of any issue which sometimes is even inadmissible in relations, for instance, between Russia and the United States, other countries. It is a great achievement. When holding talks with any state, you always stick to some canons, protocols, and diplomatic things. Here, we feel as if we live in one state. We have good relations although I would not say they have always been cloudless. We have always had enough issues to address. There were disagreements, and you remember them. We did not hide their reasons. But the main thing was how we settled those disputes. We settled them as friends, without any huge damage to each other. Our relations and our dialogue are a set of issues we have between our states. And not only issues. There are good things as well, and we are happy to note them. It is always a pleasure to discuss such things…
Problems in relations between Belarus and Russia are mainly objective. We have been recently paying more attention to integration. The matter pertains to the Union State of Belarus and Russia and the establishment of the Single Economic Space and the Eurasian Economic Union in the future. We have a lot of issues here since all these processes affect the three countries: Belarus, Kazakhstan and Russia, starting from ordinary people up to large holding companies and associations.
We are planning many joint Belarusian-Russian events. For example, the recently-held military exercise West 2013. I do not know why it gave such a hard time to the whole NATO machine. They were deeply concerned about the exercise. But everything is clear as day here: there is an army, military people who have to hone their skills in order to perform their duties professionally. If it is necessary, they need to learn. So we learnt together. Belarus and Russia have a joint armed group in the region, with the Belarusian army comprising the bulk of it. In case of any conflict or, God forbid, a war, we have plans that the first strike will be addressed by the Belarusian army who will be reinforced by the troops of the Russian Federation on the same day to defend our joint space.
About the Union State
Today the Union State construction process is not only a guideline but some program, a template for creating new integration associations, including the Eurasian Economic Union…
The Union State project was the first integration project in the ex-USSR. We have done a lot in this regard. Let me quote you a simple example: when we speak about this or that matter within the framework of the Customs Union and the Single Economic Space, I just stay away from such discussions. We have gone through those discussions in the Union State.
A session of the Supreme State Council took place some time ago. For some reason the Russian government did not take part in the Union State Council of Ministers session which was supposed to take place in September, if I am not mistaken. They said that Kerimov was offended and others were, too. If that was the reason, then we will just have to wait. It means that we still have problems in the Union State.
About regional cooperation
They ask me to meet with them (Russian governors who come to Belarus. – Editors’ note). I understand this is not presidential level. To come to any country and meet with the first person is prestigious for a politician. I understand them. I am ready to work for their prestige because once they saved our relations with Russia…
There were times when we could break up, and drift far apart from each other. And back then, realizing that not everything was decided in the Kremlin, I suggested we should establish direct regional cooperation. Politicians in the Kremlin, in Moscow sobered up and decided not to hamper these ties. This resulted in all-round collaboration between our regions and regions of the Russian Federation…
In developing commodity distribution networks we do not target Moscow. On the contrary, we are very pleased to work with you, to create joint ventures in the regions, near consumers. We can create venture to recycle, assemble and sell. Why? Because then there will be more interest and responsibility on your part. We will have partners who will be involved in the business we are interested in. It is extremely advantageous. If you have any problems in this regard, we are ready to solve them.
About NATO exercise
We know that NATO will soon be holding the exercise in the Baltic region. We will make a statement to that effect, but only once. We will not go hysterical. I think that the Foreign Ministry, maybe the press service of the Defense Ministry or the minister himself will make a statement on this, but in a human way. “Guys, what’s up? You made a drama out of our exercise and now you are holding one of your own near the borders of Belarus. And what is the aim of the exercise?” This is what we are going to say. Otherwise, it will be a sign of weakness. Why should we be hysterical?
For example, let’s look why Poles reacted that way (upon the West 2013 exercise. – Editors’ note)? Once the Poles agreed to host the US missile defense system. Then, for some reasons, they suspended the process. But Poland wants to revive the project, and quickly. I do not know why they want to put themselves in harm’s way. After all, an anti-missile installation is a priority target for destruction in the event of a conflict. Both the Russians and Belarusians have enough means to disable it. And such capabilities are plenty.
For the Poles this is money. Poland is the stronghold of Americans today on the European continent. It is known to all. And they went hysterical: “Look, this aggressor Lukashenko, the dictator, and the second one in Moscow are about to conquer Poland”. And what is the purpose of this? To get money. Get the money and get the anti-missile defense system to Poland. Because if this defense system is built in Poland, it is natural Poland will get economic benefits and handouts. Because the Americans will have to feed a part of Poland or the whole Poland so that they are quiet and not anti-American and service the missile defense system. There were many reasons for that outcry. But we are not going to appease them and repeat what happened…
Most people know the situation only from mass media. But the Belarusian and Russian military know exactly what happened there. They scrambled all their forces, I just do not know why. They controlled airspace right up to outer space. We were not going to launch ballistic missiles. Why such control? We saw all of this. We have modern means of tracking it. We have seen their nervous reaction but took it calmly.
About humanitarian aid
When the trouble came to Amur Oblast (the recent flood. – Editors’ note) we, of course, came to help. Your governor outlined the possible cooperation areas. The humanitarian assistance, food and other things, which Belarus sent, is only a fraction of what we would like to do for your region…
A program concerning relief effort in the flood-hit areas is being elaborated in the region. We told the governor: you are welcome to include us in any section of the program if you deem it necessary. We will be there and provide considerable assistance… You do not need to thank us for the aid because we simply could not act differently.
About migration policy
Over the past five years more than 35,000 Russian people became permanent residents of Belarus. However, about 9,000 Belarusians were given residence permits in Russia. These are eloquent figures… The biggest problem of ours is not even money (although there are always money issues in these market economy conditions), but people. Belarus needs twice as many residents as it has now, i.e. 20 million people. We are able to feed them. They will work here and produce even more goods. If a Russian wants to live in Belarus we will welcome him.
About death penalty
We have not abolished the death penalty. I do not think it is good that we have the death penalty. But I am not the reason why it has not yet been abolished. There are still such cases in the country when you want to apply the death penalty. For example, the terrorist attack in Minsk metro. Our police found them within three days. What right to life they have if people died in the metro? A range of activities and the way of life in the state must create the security and safety of people… The most important thing is not to forgive. Police should work off the money the state allocates for them.
About the Big Family project
I have once instructed one person, a banker, who has a big family to work through the issue. And he sent a report to me. I have read it and said that I have a proposal. Of course, we will work on the issue. I do not know yet what we will choose. But there is proposal, for instance, to open a bank account to which $10,000 will be credited for the birth of the first child, $10,000 for the birth of the second child and $10,000 for the birth of the third child. These funds cannot be used before a baby turns three years old or comes of age. We have not decided yet. This is just like your maternity capital. But the system is more transparent for people. It will make $350 million per year if we provide $10,000. This is just one proposal…
Three children in the family should become the norm. Only then we will have the future and develop as a normal sovereign and independent state. The price is great, probably $1 billion or even $2 billion. But the goal is great too. Human resources are crucial to a state.
About memory
To preserve the memory of the past, it is not enough to remember the past and commemorate the Great Victory. Every day, every hour we should raise our children and grandchildren; we should tell them about the war. Every night I tell my son stories related to the military events of various periods, not only the Great Patriotic War, but also the Patriotic War of 1812. He is already aware of the war and the damage the Nazi brought. This should be a norm in our families, because young people of today are different, no matter how wonderful and great they are…
Belarus has been doing a lot to preserve the memory of the past. There is the Belarusian State Museum of the History of the Great Patriotic War and the new building of the museum is under construction now. This will be Europe’s biggest and most advanced museum about the Great Patriotic War.
About potassium
No responsible statesman would act the way he has done (S.Kerimov, a shareholder of Uralkali. – Editors’ note). He doesn’t care in the slightest. It is his way of doing things. He is a market-minded businessman. This enterprise (Uralkali. – Editors’ note) was built by Russians, Belarusians, Tadjiks, Uzbeks… The enterprise was created by everyone many years ago. He grabbed these shares instantaneously and he does what he wants… And Berezniki (the Russian town where Uralkali is located. – Editors’ note) does not profit from getting land slumps. The owners don’t care that the enterprise doesn’t work and that people over there are paid very low salaries!
I am fed up with private businessmen of that kind. They just want to grab their profits and hide them somewhere far away in Cyprus, in Switzerland or some other offshore area…
You can take Uralkali’s shares away from the scoundrels, who have acquired the shares in some incomprehensible ways, and give the shares to people in Berezniki. For $20 billion that the company cost you could have built a blooming paradise there…
Kerimov, Baumgertner and the like promised to bear social responsibility, take care of jobs and so on when they acquired the enterprise. In your place I would have locked up Kerimov and his people for one night. The next day they would have sold all the assets at the top price. If they had failed, I would have found a buyer for them. It would have earned $12-13 billion now. And I would have sent all the money to Berezniki…
You are wasting your time trying to find money in Baumgertner. What money does he have? One hundredth of what Kerimov people have, I’ll have you know. He was an employee but he is guilty…
I have received a letter from Berezniki residents. I intended to travel there and tell the truth to people, to tell them how things happened. But I think they would not understand me right. But we are preparing an answer for the people. I know how the signatures were collected. Ordinary workers do not care who the managers will be, they just need jobs. But the managers have ruined the enterprise!
The shares of our company have not collapsed. Yes, our budget has lost up to $1.5 billion. But you (Russia. – Editor’ note) have lost twice as much. The price for potash fertilizers reached $900 per tonne with Belarus getting $4 billion in earnings every year. But then some people approached Rybolovlev (former owner of Uralkali. – Editors’ note), demanding his shares and threatening him with imprisonment or murder. I am not covering for him. But he was honest, he worked the way we agreed. I am not going to specify the sum he sold the shares for. It was a good price but nothing compared to what the company was worth. And he was thrown out.
Kerimov promised to take care of the development of the industry. Later on he said he was quitting the Belarusian Potash Company, severing relations, going to sell merchandise on his own, focusing on volumes instead of prices. And by doing it they broke the market and damaged budgets of nations.
We could make the decision (in the Belarusian Potash Company. – Editors’ note) only together and they were unwilling to get the decision made. While we had chosen the new director, they just didn’t want to hold the session of the supervisory board to approve this decision. Why? They said they wanted us out of the market in order to use the market for themselves.
Before that there was an attempt to buy Belaruskali. A person approached me offering $10 billion as the state cut and $5 billion as my cut. I told the person: tell him he will be imprisoned if he comes here. The attempts stopped. But still tension remained. The grudge lingered on because I didn’t sell the company. Hence we got quarrels.
I had only one request: do not block decisions of the Belarusian Potash Company. Arrange a session of the supervisory board, get the new director appointed, and disappear, we will work without you. But three days later Gutseriyev (a famous Russian businessman. – Editors’ note) told me sincerely that the request had been bluntly declined. Our law enforcement agencies had accumulated a lot of criminal evidence by then. I told them to do their duty. They launched a criminal case and put his (Kerimov’s. – Editors’ note) name on the wanted list. And then I was told that Suleiman Kerimov felt sorry and asked for forgiveness. I said it was okay, I can forgive but you have incurred huge damage and we have created a new company to sell merchandise already. May God be with you, but we are not going to close the criminal case…
We used to make nearly a half of the world’s potash fertilizers (together with the Russians. – Editors’ note). Nobody would sign a contract in China, India, Brazil until we signed it. Everyone looked up to us. Was it bad for the potash industry and for Russia?
About shadow economy
Shadow economy is a usual thing for market economy. That is why its existence in Belarus is theoretically possible, and we actually have it. However, the state is working hard to deal with the issue. The government has been taking efforts to prevent the shadow economy from looming.
About corruption
If you have started fighting this hydra, fight it till the end. Working by fits and starts is unacceptable. It is one of the most important issues the President should monitor every day. In our reality corruption can be compared to rust. Rust corrodes all metals. For example, we have created a good structure, but in a month or a year it is destroyed by rust. Therefore, if corruption is widespread in a country, no matter what you do, everything will fail…
There are several basic requirements. If you have said that you will fight corruption, you should have an impeccable reputation. If there is a slightest suspicion that you have done something wrong, something that can be interpreted as corruption, your reputation will be ruined forever. You are no fighter. There can be mistakes, but it is better to avoid them. It is a very delicate work, delicate fight. It can be compared to self-sacrifice. You cannot be rich, you cannot even earn money. Your children cannot work at commercial, private companies where they will be able to make money in an honest way. Therefore, when I became President, I immediately told my children: you will never run a private business as long as I am President. I am carrying on…
I spent over two years (as an MP. – Editors’ note) dealing with these matters. I am fully aware of these issues. We adopted a very tough stance. Many still say that Lukashenko came to power on an anti-corruption platform. My first bid for presidency focused on the fight against corruption…
People will not understand (if there is involvement in corruption. – Editors’ note). They will be offended by it and will not forgive. If you take something from someone even once, this will not be a secret. All your efforts to confront corruption will look like a dog and pony show. Presidents have a somewhat different way of thinking than the majority of people. Some want to provide for themselves and their families; some do it legally, some illegally. I want to remain in people’s memory; I do not want people to throw stones at me while passing by. It is important for me. For that I am ready to work hard and I am working…
If people find out that their boss is corrupt, the President will know about it the same very second, because this is the way our society is. People will not tolerate it. Nobody will say that corruption is endemic here, that our officials are bribe takers and so on. Sometimes I feel pretty awkward. They meet with officials from Russia and Ukraine. Ours work three times harder. I am responsible for them. Belarusian officials cannot afford a suit costing fifteen thousand; they cannot afford a suit for $2,000-3,000 either. This immediately draws people’s and my attention towards them. I know which officials got their houses constructed and how much it cost them, because each of them informed me about it…
I am not saying that there is no corruption in Belarus and that everything is perfect. The entire world has this problem. What is the West? The West is totally corrupt; however the corruption there is legalized. What is treated as bribery here is absolutely legal and transparent there. Some people here are trying to copy the West in defiance of the law. Maybe, we will be like them some time in the future, but I would not like it to happen.
About market principles
This should be done very carefully and smoothly to prevent social tensions. Otherwise, these tensions will be very hard to defuse afterwards. Later, when gangsters will seize the economy, they will do anything to confront the state and preserve what they think is theirs. They already have their militants booted and spurred, and they have their deadly weapons – terrorism - that spread around the world. We cannot let it happen. No country can let it happen…
So I say: here it is, guys, buy it, the price for Belaruskali is $30 billion. They say: we will give $15 billion, of which $10 billion will be transferred to the budget and the remaining $5 billion will go to you. No way. We do not need this kind of market economy.
About cooperation with Ukraine
Why are we blaming Ukraine (talks on Ukraine’s association with the European Union. – Editors’ note)? I remind Kazakhstan and Russia that they are both holding such talks. We are not, because they do not want to talk to us at all. It is clear that Lukashenko is an arch enemy for them. Maybe, they will never talk to me. I will not give our companies to them, I will not let them hurt our people…
You are holding talks, they are holding talks. There is no drama about it. There is no drama either that they (Ukraine. – Editors’ note) will sign some agreement with the European Union. There is a risk, however, that these documents will block their way to us, to the Customs Union, the Single Economic Space and the Eurasian Economic Union…
If the Ukraine-EU agreement provides for lower customs duties, this may do harm to the SES partners, provided the borders are open. Therefore, you (Ukraine. – Editors’ note) can conduct talks and sign agreements with anyone you want, but if you want to join us, you will have to honor our arrangements. Otherwise, we will not be able to cooperate with you, especially in economy and trade. I told Azarov (Prime Minister of Ukraine. – Editors’ note) about it and repeated what I had said at the private session. Putin upheld me on that. I talked to him a day before yesterday, we touched upon this matter. He said: It is absolutely right, let them proceed with these talks, they are a sovereign and independent state, however they might block their way to us and bring damage to us by signing some agreements…
People are not to blame for anything. Even if Ukraine joins NATO tomorrow, we will have to maintain relations with them. There is no other option for us – our people are there…
This is quite a problem. But we should, without blaming each other, sit down and try to come to grips with the situation before Ukraine signs this agreement with the EU. We need to think what we will do in each of the possible developments.
About the salaries of doctors and teachers
We have raised the rate from 18 to 20 hours. The resources freed as a result of this measure have been given to schools. But teachers continue complaining about low salaries. And I agree with them. This is the problem we must address in the near future, however difficult it can be…
This is one of the most demanding jobs. We have one kindergartener and a nanny for 25 children in a kindergarten. Every child needs attention. They should be taught and prepared for school. And these workers have very low salaries.
About gambling business
When Russia prohibited gambling, its gamblers flocked to Belarus, especially from Moscow. Some in Belarus made proposals to prohibit this business as well, but I did not support the idea. I suggested we wait and see whether they would bring us harm or not. We supervise casinos very tightly but we are not planning to outlaw them. We do not want to drive them under-the-counter. But control is very tight. We want casinos to play by the rules…
We are tightening the control and want it at the level of Las Vegas. We have not witnessed such phenomena as in Moscow. Although, I think that many gamblers moved from Moscow to Minsk. Many rich Muscovites love to fly over here and spend money here, a lot of money. Yet, tough rules should be for all. Honesty and fairness must be at the heart of everything, including in gambling business.
About labor migration
People from Uzbekistan, Tajikistan, other countries, mainly families, people with kids come to Belarus. We welcome them. If they settle down in rural areas, ask for land, it is profitable for us. They work in the civil engineering industry and so on. The best propagandists in Belarus are people that come to Belarus from where life is difficult. They are pleased to become private businessmen, farmers, work in the manufacturing sector.
The fact that they come here is not important. Having a system in place, procedures for welcoming them are.
About the merger of MAZ – KamAZ and OAO BelAZ
I ask an investor about three things. Is he ready to invest in the company growth, implement new technologies and penetrate new markets to promote the company’s products? Considering these three parameters, they (the Russian side. – Editors’ note) have no money, their technologies are worse than those of MAZ, because MAZ produces competitive products which sales would be the same as those of KamAZ if the two companies were in equal conditions. In what way are you going to take part in the modernization? In no way? Then I have a question for you: can you guarantee that you will not try to buy the company for a song (you have no money to pay a fair price) and make sure that MAZ will not end up producing only wheel rims? Can you guarantee that? I am not sure. That is the answer to your question…
We will not give BelAZ to anyone. It is among the country’s brands, it is our pride. The company holds over 30% of the global market of trucks. The company was the world’s first to roll out the dump truck with the carrying capacity of 450 tonnes…
About money
Today’s situation is complicated. We do not hide it from people, they can see it. But complicated in what way? Everyone is waiting to see whether there will be devaluation or not. If Belarusians rush to foreign exchange offices, buying foreign currency in a panic in anticipation of devaluation, may God help them. It is this kind of complicated. I cannot complain about the rest of the things. No, prices are not low. We cannot make prices lower if the borders with Russia and Ukraine are open. I have to balance things and keep prices at the Russian level. It is economy, it is impossible to avoid. But people are accustomed to prioritizing the fact that salaries in Russia are higher. But there are many people in Moscow, who earn millions and billions, and then there are people, who have next to nothing to eat. Therefore, life can be bad in Moscow, too. Many Belarusians understand it and treasure the fact that they live in Belarus…
Imagine how much less Belarusians pay for utilities. On the other hand, it is bad. Before the crisis we had an average salary of $500. I said that after the financial crisis of the year 2011 we had to return the salaries that people had once. Now the average salary is about $720. We pay this salary while sales are low. With these prices, which growth we try to slow down, people pile up spare money. On what do the Belarusians spend money? On foreign currency. If they deposit what they earn in banks, it is good. But some foreign currency is just stored in homes. And it is difficult to earn foreign currency. We need a lot of foreign currency to pay, for instance, for natural gas and oil. We don’t have spare resources.
About the 2014 IIHF World Championship
I have warned everybody both private traders and state-owned retail organizations not to overprice their services (during the 2014 IIHF World Championship. – Editors’ note). Usually, you know, prices are sky-high during big sports events. Ukraine is still criticized for the European Football Cup. People who come to the country to attend a big sports event will still pay hotel services even if they are thrice as high, but leave the country with bad impressions.
About excessive export and import
In January-August some of our citizens visited the European Union 700 times. They take there fuel or some other products and bring clothes to sell here. We used to call them profiteers. Today it is a business. Every year our citizens take out $3 billion to buy rags in the EU, in Lithuania, Poland. And they say the Belarusians are poor...
Meanwhile, Belarusian products are of high quality and in demand in the Russian market. Linen, clothes, footwear sell out within three hours at any fair. This is true for Moscow too, which is a demanding city. When Russians suspended the import of Belarusian dairy or some other products, people from Bryansk and Smolensk started coming to Belarus to buy things here. No one has the right to stop them on the border. It speaks volumes about the quality and competitiveness of Belarusian products.
About pride
I am proud to be the elected president of my people. It is sincere truth. The fact that we have created our own state is an accomplishment of myself and my colleagues…
Belarus used to be an outskirt, a province. A well-developed one and convenient, I’ll grant you that. I cannot say the republic was a bad one during the Soviet times. It had some drawbacks. People were not even mentally prepared for it. We took over the country on the edge. We have preserved it, we have clothed and fed people. We have modernized the country and the enterprises the best way we could. At the same time we have created a sovereign and independent state, it was extremely important…
It is the only thing I can name my accomplishment. The nation did the rest. And I wasn’t alone creating the state. I was just lucky to be at the forefront of the process.
About denomination
Denomination is not a problem. This is purely a technical issue. But I think that it is better to carry out denomination when the situation on the foreign currency market is stable. We have not considered this issue in detail yet. But we are ready to conduct denomination at any time…
If the situation on the foreign currency market allows denomination we will do it. It is not a single-step action. It has to be announced in advance, a decree is to be signed. We will simultaneously use old and new notes. It is not an unexpected event, but an ordinary technical procedure.
It is not a problem. We know it. We have already printed new notes. We did it several years ago. However, we need to do certain preparations for it. Then we will announce about it in advance, sign a decree and conduct denomination.
It is more important to ensure stability on the foreign currency market. This, in turn, depends on the performance of the economy, export, import which has to be reduced. But that is not the most important thing. Our major concern is the stability of the population.