Who has paid off Belarus debt for Russian gas?
Neither Beltransgaz nor the National Bank nor Finance Ministry nor Energy Ministry know where Belarus has found the money to pay off to Gazprom. Minsk said on Wednesday that it had cleared in full its debt to Gazprom. The European Radio for Belarus explores where the country has found the money.
The question seems to be very simple. Last week the president ordered “to pick this money from the reserves and pay them those $460 million. Naturally, we are reducing our reserves, but this is not a sum for this country”. However, the gold and currency reserve was not affected. On the contrary, it increased at $200 million.
National Bank Chairman Piotr Prakapovich said the reserves reached $3 billion ahead of the end-of-the-year target. It means that Belarus has cleared the debt, while having increased its currency reserve. How come?
Economist Leanid Zaika explains:
“The National Bank does not pay the government’s bills from the gold and currency reserves. They are separated from each other. This debt was paid by economic entities and the government. They picked the money from the amount that Gazprom had earlier wired for part of Beltransgaz’s shares.
In July we received the first instalment of $625 million from Gazprom. Russia hoped that we would pay back $500 million out of this $625 million. But we decided to fool the Russians. Eventually, they forced us to return this money”.
It is interesting that the National Bank also explains the increase in the gold and currency reserves by the money received for Beltransgaz’s shares…Belarus did not hurry to use its gold and currency reserves because they were making money for the country. These funds are not kept in the National Bank’s basements. They are deposited in foreign banks.
Leanid Zaika: “Part of the national reserves can be kept in golden bricks inside the National Bank. But money needs to make money. So, it is deposited as securities abroad for 2-3 percent annually. Given the current reserve, it makes $50-60 million per year, not more”.
Belarus allocates three-times more money for gas payments monthly. Moreover, if we use the methodology of the International Monetary Fund (IMF), it turns out that our currency reserve is even less. The point is where the money of the gold and currency reserve is kept. IMF does not take into account the money which it does not see at the account of respected banks.
National Bank spokesman Mikhail Zhravovich explains:
“There are two methodologies: national and the one of IMF. The International Monetary Fund does not recognize the reserves that are not deposited in the world class banks”.
Experts suggest that Belarus’s currency reserve is $800 million cheaper in the easy of IMF. At the same time, the National Bank maintains that the money to pay off the gas debt was allegedly not picked from the national reserve.
According to Mikhail Zhuravovich, Finance Ministry dealt with this issue. But, Finance Ministry told us as follows: “Finance Ministry does not deal with the payments to Gazprom. It is Beltransgaz that has a deal with Gazprom. Finance Ministry has no obligations”.
Energy Ministry also told the European Radio for Belarus that it did not allocate money to pay the debt and advised to approach Beltransgaz.
When ERB got through to Beltransgaz spokesman Uladzimir Chekaw, he said: “I can’t help you. You are not the first one to ask this question. But I am not ready to answer this question”.
What a weird situation! The country has found almost $500 million, yet it is impossible to locate those heroes who have made it real.
Photo: http://photo.bymedia.net
