Дата публикации

What opportunities offers the unified energy market of Russia and Belarus

Belarus-Russia cooperation in energy sector is one of the key areas. Our countries are gradually integrating the energy market. Today, the parties have reached the next level, which encompasses the implementation of specific measures towards creating the energy market of the Union State.

In November 2023, the President of Belarus approved the draft agreement on the unified energy market of the Union State as a basis for negotiations with Russian partners.

"This international agreement establishes the legal basis for the formation, operation and development of the unified electricity market of the Union State, regulates relations associated with the purchase and sale of electricity between the market participants."

Ольга Лазоркина, аналитик БИСИ
Olga Lazorkina: Belarus and Russia are creating a new model of interaction in the energy sector

In July this year, Russian President Vladimir Putin approved the signing at the supreme level of an agreement on the formation of a unified electric energy market of Russia and Belarus Union State.

"To accept the proposal of the Government of the Russian Federation to sign the agreement. To consider it expedient to sign the agreement provided for by this order at the supreme level."

Today, a new stage of intersectoral cooperation begins, which involves the development and adaptation of previously adopted measures. Belarusian Energy Minister Viktor Karankevich confirmed that the departments have made significant progress in this direction, including within the framework of implementing union programs. For example, the draft interstate agreement on the formation of a unified market has been approved. In addition, in June this year, the protocol on parallel operation of power systems was ratified.

These steps show that Belarus and Russia are developing a new model of energy cooperation. Obviously, that today it is developing, not completing. The energy markets of our countries have a number of serious differences, and not always only political decisions can form a common platform. Russian experts draw attention to the fact that market conditions are in force in the country, and the appropriate infrastructure has been built under them. In Belarus, on the contrary, centralization remains, the adoption of Russian realities is not just a task, legislation should be built under it and management decisions should be made.

The construction of the Belarusian NPP initially meant exporting surplus energy and thus stabilizing the situation in the region as a whole. The harsh criticism of Belarus by the Baltic States regarding the Belarusian NPP eventually entailed the recognition of realities and the fact that all of them are taking desperate steps to implement nuclear energy projects. However, the situation on the Belarusian borders does not allow to predict the resumption of full-fledged cooperation with the EU countries. The eastern direction is more familiar and predictable for Belarus. The demand for electricity, of course, at affordable rates is always maintained. Therefore, the plans state the intentions of synchronizing the electricity market of the Union State with the work of the market of the Eurasian Economic Union.

Amid the widespread dominance of Western models, the leaders of Russia and Belarus are taking steps aimed not at discrediting or breaking existing formats, but consolidating qualitatively new approaches to the development of various spheres of cooperation between states in modern conditions. This is possible, since it is within the framework of the Union State that such an economic platform has been created, which allows for the gradual launch of almost all areas of economic cooperation and claims to be a model.

The announced changes in the energy cooperation between Belarus and Russia will inevitably lead to the activation of related industries. Updating generating capacities is a task that will be solved by scientists and specialized industries. Large projects always require investments. With such strong support from the state, the investment attractiveness of energy projects will receive new content and momentum for further development. Equally important are developments in adapting legislation and elaborating new approaches to pricing.

The strategic alliance between Belarus and Russia helps to smooth out many sensitive issues. But they understand in Belarus that competition is a reality within which it is necessary to learn how to work. The implementation of projects in the EAEU space directly depends on the effectiveness of the model that will be developed with Russia.