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AIRR regions increased trading volumes on the Belarusian Universal Commodity Exchange

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25 March2024
AIRR regions increased trading volumes on the Belarusian Universal Commodity Exchange

Russian companies increased the volume of exchange trading in industrial and consumer goods on the Belarusian Universal Commodity Exchange (BUCE) by 40%, including companies from the subjects of the Association of Innovative Regions of Russia (AIRR).

“In January - February 2024, the amount of transactions by residents of the Russian Federation on the industrial and consumer goods platform of the Belarusian Universal Commodity Exchange amounted to Br16.4 million, which is 40% more than for the same period in 2023. At the same time, import-substituting products accounted for 36% of exchange contracts concluded by Russians, and the most popular product items this year included drilling equipment, components for construction equipment, lighting fixtures and carded yarn,” reports the BUCE press service.

Recently, a delegation from the Irkutsk region visited the Republic of Belarus. Manufacturers of hydraulic equipment, footwear, textiles and food products from this AIRR region have agreed to place orders in the BUCE trading system. It is planned that the exchange platform will be used both for the supply of goods to the Belarusian market and for transit trade with regions of the Russian Federation and third countries.

“Companies from the Irkutsk region have been participating in exchange trading since 2023, but for now this is mainly the import of Belarusian lumber. In addition, transit transactions are concluded with Russian residents. Plans for this year include intensifying interaction with export-oriented enterprises in the region to organize sales of their products through the exchange platform. Priority attention is paid to import-substituting positions due to their high liquidity and stable demand from Belarusian trading participants,” the exchange’s press service commented.

As part of the visit, a business meeting of business circles of Belarus and the Irkutsk region took place at the Belarusian Chamber of Commerce and Industry (BelCCI). Deputy Chairman of the BelCCI Denis Meleshkin outlined plans for the participation of the BelCCI and Belarusian companies in the fifth Baikal International Partners Forum (BIFP-2024), and also invited Russian business circles to attend major international exhibition events in Belarus - Belagro and TIBO.

BMFP-2024 is planned to be held from May 27 to May 29, 2024 in Irkutsk. Its goals are to expand and strengthen trade and economic ties with friendly countries, consolidate business communities in the interests of developing and promoting interregional and international cooperation in various sectors of the economy, stimulate investment and trade interaction, exchange opinions and experience between experts from different countries in order to implement mutually beneficial initiatives , demonstration of economic and innovative potential, as well as the development of foreign economic and scientific-technological cooperation of business circles of the BMFP participating countries - 2024.

The result of the meeting of the delegation of the Irkutsk region at the BelCCI was direct negotiations between representatives of about 30 Belarusian and Irkutsk enterprises and organizations.

The volume of transactions of Nizhny Novgorod companies on the Belarusian stock exchange demonstrates stable positive dynamics. Thus, at the end of 2023, the exchange trade turnover of the Nizhny Novgorod region amounted to 3.96 million USD compared to 270 thousand USD in 2022. High rates of growth in the value of transactions are also observed in 2024.

“Since the beginning of the year, trading participants from the Nizhny Novgorod region have concluded exchange transactions for a total amount of over 600 thousand USD, which is one and a half times more than in the same period last year. Polymers, lubricants, wire and electric-welded pipes were supplied to the Belarusian market, and cellular concrete blocks were mainly exported from Belarus. At the same time, the share of import-substituting products accounted for 46% of the exchange trade turnover of Nizhny Novgorod business entities. I believe that this particular vector of cooperation will become a key driver for the growth of trade volumes between Belarus and the Nizhny Novgorod region this year,” emphasized German Puzyrny, Deputy Head of Foreign Economic Activity of BUTB, during a presentation of the potential of the exchange platform for industrial and consumer goods at the “Supplier Day” business forum of the Republic of Belarus and Nizhny Novgorod region. The event was organized by the Agency for the Development of Cluster Policy and Entrepreneurship of the Nizhny Novgorod Region and the Entrepreneurship Support Center of Nertus-Consulting LLC.

Currently, 3,703 residents of the Russian Federation are accredited to BUCE, including 103 companies from the Nizhny Novgorod region.

The industrial and consumer goods platform of the Belarusian Universal Commodity Exchange can be used by enterprises of the Kaluga region to sell import-substituting products in Belarus, as well as to make deliveries to other regions of Russia by concluding transit exchange transactions.

Kaluga manufacturers of equipment for wastewater disposal and water treatment and suppliers of spare parts and components for motor vehicles announced their readiness to enter the exchange trading platform. According to BUCE, these commodity items are in stable demand among Belarusian bidders.

“The Kaluga region has a well-developed industrial sector, primarily metalworking and mechanical engineering. The products of these industries are among the region's main non-resource exports, and exchange trading can provide direct access to thousands of potential buyers in Belarus. At the same time, the demand for such goods is consistently high. For example, in January 2024, the share of equipment and mechanical parts in the structure of transactions on the industrial and consumer goods platform was more than 15%, and ground vehicles and rolling stock parts - 26%. Thus, for Kaluga producers, the exchange can become an alternative instrument for export sales, while Belarusian companies will receive an additional source of purchases as part of import substitution,” the BUCE press service commented.

As of February 1, 2024, 24 business entities from the Kaluga region were accredited to BUCE. In 2023, enterprises in the region mainly participated in exchange trading for the purchase of Belarusian lumber.

In order to further increase the volume of exchange trade with Bashkortostan, the Belarusian Universal Commodity Exchange (BUCE) intends to intensify work with enterprises of the agro-industrial complex of the republic.

In particular, Belarusian participants in exchange trading are ready to supply dairy products, meat products and feed additives to Bashkortostan, and, as part of import transactions, to purchase grains and leguminous crops, sunflower oil seeds and food raw materials. The prospects for interaction on these product items with representatives of Bashkir business circles were discussed during the Belarus-Bashkortostan business forum, which was held in Minsk on February 9, 2024.

“Over the past year, the amount of exchange transactions of companies from Bashkortostan increased by 9%. The basis of trade turnover with this region of Russia was lumber and meat by-products produced in Belarus. In general, high positive dynamics are observed in the Volga Federal District. At the end of 2023, mutual trade turnover increased 1.7 times. Belarus mainly supplies ferrous and non-ferrous rolled metal products, as well as spare parts and components for industrial equipment, while Belarusian enterprises export lumber, building materials, wet-blue leather and meat products,” the BUCE press service said.

OJSC Belarusian Universal Commodity Exchange is the only commodity exchange in the Republic of Belarus and the largest spot exchange in Eastern Europe. You can find out the terms of cooperation with BUTB here - https://www.butb.by

The material was prepared according to information from the press service of OJSC “Belarusian Universal Commodity Exchange”