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Region: Economics and Sociology

2023 year, number 2

BELARUS-RUSSIA UNION PROGRAMS: A MIRAGE OR THE BEGINNING OF INTEGRATION INTO THE UNION STATE?

A.I. Suzdaltsev1, E.V. Potaptseva2
1National Research University Higher School of Economics, Moscow, Russia
2Institute of Economics, Ural Branch of the Russian Academy of Sciences, Ekaterinburg, Russia
Keywords: economic integration, union programs, the Union State, Russia, the Republic of Belarus

Abstract

The article considers the challenges that the economic integration between the Russian Federation and the Republic of Belarus experiences within the Union State. The roadmap project, initiated by Russia in 2018 to resume the Action Program of Russia and Belarus on the Implementation of the Provisions of the Treaty on the Establishment of the Union State, produced twenty-eight union programs by the end of2021. However, it remains unclear whether these programs signal the beginning of a “two countries, one market" model, as executing them requires alterations in legislation and new bilateral agreements. Additionally, transparency in the implementation of union programs is crucial. To investigate the issue, the article analyzes the responses of regional enterprises in Sverdlovsk Oblast to assess their readiness for working jointly with Belarusian businesses. The purpose is to examine how Sverdlovsk enterprises perceive Belarus-Russia economic integration. The results show a desire to deepen Belarus-Russia economic integration expressed by Russian citizens, on the one hand, and minimal efforts at the business level to promote this process over the past 20+ years, on the other. The article is structured into four parts. The first section discusses the issues surrounding economic integration between the Russian Federation and the Republic of Belarus, which has been slow and uneven despite the creation of the Union State. Nevertheless, both countries view the Union State as an important integration project and are likely to continue efforts to strengthen cooperation in the future. The second section provides an overview of the union programs. Despite their success, there have been issues during implementation. One of the main problems is differences in the economic structure: because of Russia’s larger and more diversified economy, countries experience tensions over pricing and access to markets, and disagreements over the pace and scope of integration. The third section outlines the research design for the field study, which involved conducting semi-structured interviews with representatives from regional enterprises in Sverdlovsk Oblast to understand their perception of economic integration between Russia and Belarus. The fourth and final section presents the study’s findings, indicating that regional enterprises in Sverdlovsk Oblast have mixed feelings about their cooperation with Belarusian colleagues. However, they are positively inclined toward further economic integration based on established business practices in Russia.