The common currency with Belarus has found a second wind

Moscow and Minsk are ready to accelerate economic integration

The topic of a common Russian-Belarusian currency – altyn (this is what they previously wanted to call the single monetary unit of both powers) is again coming to the forefront of economic relations between Moscow and Minsk. According to Finance Minister Anton Siluanov, this option will be the “highest degree of integration” of the trade markets of neighboring republics. Experts believe that the implementation of such a project, conceived back in the late 1990s, will help strengthen commercial ties between historically friendly states, but in this case Belarus will have to somewhat sacrifice its sovereignty.

Following the results of the regular meeting of the presidents of Russia and Belarus at a meeting of the Supreme State Council of the Union State, a whole package of documents was signed aimed at enhancing cooperation in industry, agriculture, energy, transport and logistics, and the information sphere of both republics. There was no specific information about the resumption of negotiations on the creation of a single currency, but the head of the Ministry of Finance Anton Siluanov still commented on this painful topic. The minister confirmed that such an agreement not only has the right to life, but also is “the highest degree of integration of friendly economies.” The introduction of a single ruble would be a beneficial solution for residents of the two countries. “It is designated as a goal,” Siluanov noted.

Let us recall that the agreement “On the introduction of a single monetary unit and the formation of a single emission center of the Union State” was signed in November 2000. It was assumed that from 2005 the Russian ruble would be used as the common currency, and from January 1, 2008, a single monetary unit of the Union State would be introduced. Later it received the name Altyn. The geopolitical problems that the partners constantly have to face did not make it possible to implement the planned project. However, our countries still continue to hope for settlements in their own new currency, listed on world trading floors. Will Moscow and Minsk really come to a final agreement on the initiation of a joint currency in the current geopolitical conditions and what benefits can a single “altyn” bring to both states?

– The topic of a single Russian-Belarusian currency arises periodically. Why has this initiative not been implemented to this day?

– In the implementation of this initiative, problems most likely arise from Minsk. The emergence of a common currency with Russia undermines the foundations of the sovereignty of the neighboring state. Whether Minsk is ready to make such sacrifices is still unclear. However, in general, the presence of common funds is a logical development of the integration of our countries. If the unification of the economic spaces of Belarus and Russia continues, then the issue of their own currency will benefit all parties.

For the ruble, a new round in the creation of a single currency will be a positive incentive. The new monetary unit will cover most of the financial market of the republics of the former USSR. The Belarusian economy is developing quite confidently and will be able to give the so-called “altyn,” which may soon turn into a serious regional currency, more confidence in the global money market.

– Will the creation of a new own currency harm the economic contacts of Russia and Belarus with foreign partners?

– Our country is already subjected to all sorts of repressions and restrictions, but new sanctions claims against Belarus may arise from the West. Transactions with partners from the United States and European countries, which impose various economic restrictions on Moscow and Minsk, will, of course, suffer. Meanwhile, in general, from the point of view of cooperation between Minsk and friendly states, the single currency will have greater strength and authority. In particular, “Altyn” will probably become widespread in the Chinese and Indian markets.

– Why did Siluanov return to the topic of creating a single currency right now?

– It is obvious that the resumption of the discussion about the single currency is a consequence of the last meeting between Putin and Lukashenko. The top leadership of our country demanded to speed up the process of financial integration, and the topic of a single currency is one of the primary tasks of Russian-Belarusian financial relations. The economies of our states need to move from the sluggish stages of negotiations to the conclusion of long-term solutions that can show that mutual understanding in financial matters between Moscow and Minsk is strengthening and expanding to a new level.

– In what time frame can a single currency be introduced?

– This process will require changes and synchronization of the legislation of both countries. It will be necessary to rebalance the financial economy with the involvement of participants in the banking sector. It will take at least two years to work through all the necessary nuances.