Lukashenka fails to get compensation for Russian tax maneuver

Alyaksandr Lukashenka has not managed to reach an agreement on the compensation for the Russian tax maneuver during the negotiations with Vladimir Putin on December 25. The first results of the negotiations have been announced by Russian vice PM and Minister of Finance Anton Siluanov.

The agreement to create a working group dedicated to further integration and solving the burning issues has been reached at the negotiations, the official told journalists.

The working group ‘will generate further integration suggestions and help solve the issues on Belarus-Russia agenda’, Siluanov added.

What were the other issues discussed at the negotiations? Are there any other results besides the creation of the working group that will continue discussing the existing problems?

"They have discussed the changes that will be made to the Russian Federation’s Tax Code in 2019 and our plans as regards changes in taxation and gas and energy supply price formation,” BELTA quotes Siluanov. “We have agreed to bring our positions together.”

What sum did Belarus expect to get?

Minsk expected to get a compensation of about $310 million for the tax maneuver in 2019 (if Brent oil is $60 per barrel), Belarusian vice PM Ihar Lyashenka announced in the middle of December. The only issue was the mechanism of fulfilling the commitment by Russia.

However, the Russian government hindered the discussion of the compensation ‘until principal Belarus-Russia integration decisions were made in the Union State’, Lyashchenka said.

The Russian government is refuting the existence of any promises or commitments as regards the compensation for the tax maneuver to Belarus.