President Lukashenko keeps away from privatization process (yet)
Belarus’ Prime Minister Mikhail Myasnikovich and Russian Prime Minister Dmitry Medvedev have had a telephone conversation about the oil supply in H2 2014 and bilateral integration. Russian oil supplies to Belarusian refineries directly depend on the Belarusian assets’ privatisation progress in favour of Russian companies. Medvedev has positively assessed the level of preparations by Belarus for the integration projects, however, the final decision with regard to the state assets’ privatisation remains with President Lukashenko. Lukashenko is not interested in losing control over large parts of the Belarusian economy, which may result in exacerbated Russo-Belarusian relations.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.