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Business in Belarus is groaning from Lukashenka's regulations

Lukashenko's price regulation can have serious consequences for the economy of the entire country. "More than 50% of business entities of non-state form of ownership are employed in the field of trade. These are mainly subjects of small businesses, " said Viktor Margelov, director of the Union of Entrepreneurs and Employers.

According to him, the government resolution No. 713 on limiting price growth contributed to a decrease in the gross income of trade enterprises by more than 15% at a similar price.

The growth of large chains leads to the devastation of small businesses, because the business conditions for small and large enterprises in the field of retail trade are already very unequal. Resolution No. 713 made it even more profitable for large chains to sell imported goods at retail. As a result, they sell a fairly wide range of products at lower prices than manufacturers selling to small and medium-sized businesses.

As a result, the low profitability of retail enterprises has caused an acute shortage of personnel in the retail trade, especially in small towns and rural areas.

"The average accrued salary of sellers in the regions is only 700-800 rubles, which is more than two times lower than the average salary in the country. The cases of closure of trade facilities due to a complete lack of staff have become more frequent, " said Margelov.

Representatives of small and medium-sized businesses ask to reduce the list of goods subject to state price regulation and to facilitate the opening of small and medium-sized retail outlets. It is also proposed to expand the list of goods sold by Belarusian manufacturers at a single price; reduce the administrative burden and others.

After the state began to regulate prices, the profitability of trade organizations decreased to 0.4%. "This is one of the lowest indicators in history," Deputy Minister of Trade and Antimonopoly Regulation Ivan Vezhnavets said in February.

However, the ministry could not answer how long the price regulation will last in the country. The head of the department, Oleksiy Bogdanov, said that "this will continue until external shocks to the economy disappear."

It is clear that the "shocks" will not disappear as long as the Lukashenka regime continues its policy of playing along with Russia. And Lukashenka apparently never learned other methods than the Soviet planned economy.


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