In 2020, Belarus experienced at least three shocks. The most difficult of them was the mass protests after the election of the head of state. This was announced by the presidential aide for financial and credit issues Valery Belsky on the air of the STV TV channel.
According to him, mass demonstrations of citizens create risks for economic development. The point is that the protesters “opposed themselves to the state and its welfare” and called for strikes, tax evasion and withdrawal of funds from deposits.
Another challenge for the economy was the coronavirus pandemic. According to his estimates, if a total lockdown were introduced in the country, the republic’s GDP would decrease by another 5-6 percent. “When a small country, which at the highest price, with strenuous efforts achieved its presence in the foreign market, leaves this market, then the chances of returning are reduced,” Belsky explained.
In addition, at the beginning of the year, the country did not sign contracts for the supply of oil, so the Belarusian economy is largely faced with the risk of undersupply of raw materials. “The most extraordinary decisions were made: contracts were signed with both Saudi Arabia and Norway, and we had only one American contract,” aide to the head of state Alexander Lukashenko recalled.
At the end of February it became known that Minsk plans to ask Russia for another loan. According to the Minister of Finance of the Republic Yuri Seliverstov, the parties are now negotiating to raise money for infrastructure projects. In September 2020, it was reported that Russia would provide Belarus with a $ 1.5 billion loan. Moreover, part of the allocated funds will be used to repay previous loans from Russia.
Protests in Belarus have continued since early August 2020. The protesters demand the resignation of the entire leadership of the country, new elections, as well as an end to violence from the security forces and the prosecution of those who brutally dispersed the first protests after the elections and tortured the detainees.