Updated at 23:19,25-10-2016

Kudrin: Single currency with Belarus unbeneficial for Russia

12-01-2012, 03:30
Kudrin: Single currency with Belarus unbeneficial for Russia

"In the nearest years Belarus’ transition to Russian ruble is unprofitable for Russia, as risks for the Russian ruble will increase", stated former Deputy Prime Minister and Finance Minister of Russia Alexei Kudrin.

He has written that in his twitter. "For about 5 years imports exceeded exports in Belarus (by $6-9 billions in some years). Smooth devaluation would have been less (if carried out earlier)", Kudrin substantiated his opinion.

He also explained how depreciation of the Belarusian currency should be calculated: "It is more correct to consider that depreciation of the Belarusian ruble over 2011 by 65% has taken place, as it cannot go down in value by more than 100% of its value". It is possible that Kudrin took into account only one-time-only devaluation of the ruble. However from April to December 2011 the Belarusian ruble has went down from Br 3000 to Br 8450 per US dollar, which is more than 65%.

In 2011 the inflation in Belarus was record-breaking, almost 109%. Such information was published by the National Statistics Committee of Belarus.

According to the Belarusian statistics agency, the consumer price index for goods and services in December 2011 as compared to December 2010 was 208.7%, while the industrial products producer price index was 249.4%, and the food price index – 225%.

According to official information, the food products which have got up most are canned fish, fruits, vegetables, sugar, tea, poultry, confectionery, butter and vegetable oil, cheese, eggs, spirits and tobacco – in two or in two and a half times.

Price rise for non-food products was a shock for Belarusians as well. Fuel, perfumes, cosmetics, detergents, constriction materials, cycles and motorcycles, textiles have got up most, ITAR-TASS informs.

As for the service industries, costs for kindergartens, tourist, aircraft tickets, travel packages, tickets for international traffic trains and buses.