Putin greenlights formation of common energy market with Belarus

Russian President Vladimir Putin has signed a decree supporting the agreement on the formation of the common energy market of the Common State of Russia and Belarus.

The document requesting the signing of the agreement at the top level has been published on the portal of legal information, Caliber.Az reports via foreign media.

"To accept the proposal by the government of the Russian Federation on the signing of the agreement. To consider the signing of the agreement stipulated by the present decree at the top level reasonable," the decree states.

Russia’s Energy Ministry has been tasked with holding the negotiations. The ministry has also been authorized to make nonessential amendments approved by the Russian Foreign Ministry.

The common energy market is a strategic issue in relations between Moscow and Minsk. Its creation was discussed during the visit of Russian President Vladimir Putin to Belarus this May. The launch of the common energy market was initially planned for the beginning of 2024. However, Moscow and Minsk still had some differences to hash out, Putin said.

Russia’s Energy Ministry said earlier that the project was ready for the first stage of work on the purchase and sale of electricity by proxy. The second stage involves deeper integration in the electricity sector, with single operations control of processes planned to be organized and the price of gas to be leveled out. In the future, it is planned to synchronize the project with the work of the EAEU common electricity market.

Belarus greenlighted the draft agreement at the end of last November. The Russian government approved the basic text of the agreement earlier in July. The Russian Energy Ministry has said that all domestic procedures have been completed, with the document being ready for signing by the presidents.

Background

The formation of a common energy market between Russia and Belarus represents a significant step toward deeper economic integration between the two nations. This initiative is part of the broader effort to strengthen the Union State of Russia and Belarus, which aims to create a unified political, economic, and military framework.

Discussions around the common energy market have been ongoing for years, reflecting the complexities and strategic importance of energy cooperation. Both countries have a vested interest in stabilizing energy prices and ensuring a reliable supply of electricity and gas. The creation of a common energy market is expected to enhance economic stability and provide a more predictable energy environment for both nations.

Moreover, the synchronization with the Eurasian Economic Union (EAEU) common electricity market highlights the broader regional implications of this agreement. The EAEU, comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan, seeks to facilitate economic integration among its member states. The integration of the Russia-Belarus energy market with the EAEU framework could lead to more comprehensive regional energy cooperation and market efficiency.

In conclusion, the signing of this decree by President Putin marks a critical milestone in the Russia-Belarus energy partnership, potentially setting the stage for further economic integration and regional cooperation in the energy sector.