Commodity exchanges of Belarus, Kazakhstan ink cooperation agreement
May 29. BelTA
Commodity exchanges of Belarus and Kazakhstan signed an agreement on cooperation in the development of exchange markets in Astana, Kazakhstan on 29 May, BelTA learned from Oksana Belenkaya, Press Secretary of OAO Belarusian Universal Commodity Exchange (BUCE).
The document was signed by OAO BUCE Chairman of the Board Arkady Salikov and Chairman of the Board of Eurasian Trade System Commodity Exchange (ETS) Kurmet Orazayev at the time of the session of the Supreme Eurasian Economic Council. The session gathered the presidents of Belarus, Kazakhstan, and Russia in Astana on 28-29 May. By signing the agreement the sides expressed their belief that the enhancement of business cooperation will contribute to successful and steady expansion of versatile contacts between Belarus and Kazakhstan and will promote mutually beneficial economic ties.
At the initial stage of trade integration the sides suggest organizing trade in wheat, coal, and milk powder on the part of the ETS and trade in cattle carcasses and half-carcasses, sugar and other commodities on the part of BUCE. Trade participants will make payments in national currencies. Currency regulations will be handled at the stage of bidding. Trade will become accessible, the number of buyers will increase, competition will be tougher thanks to free access of consumers from the two countries to the trade sessions, operating costs involved in getting access to the markets of Kazakhstan and Belarus will be reduced.
All in all, the agreement is designed to promote trade and economic cooperation between exchange trade participants, who are accredited with these exchanges, and their clients. There are plans to establish partnering relations on the basis of joint events, the sharing of practices and information for carrying out joint projects.
Head of Belarusian Universal Commodity Exchange Arkady Salikov remarked that the agreement on cooperation is another step in interaction with the ETS in combining efforts for the development and further improvement of the national commodity exchange markets in the Single Economic Space. The agreement will also facilitate the resolution of problems involved in securing the liquidity of the national trade platforms. The ETS is Kazakhstan’s largest commodity exchange, a major player on the commercial and economic market of the country. It will create a good foundation for cooperation between the two markets, the Belarusian executive believes.
In the past the ETS and BUCE worked hard as part of their membership in the Commodities Market Committee under the International Association of Exchanges of the CIS States. “The signing of the agreement is a logical continuation of our long-term cooperation,” said ETS head Kurmet Orazayev.
OAO Belarusian Universal Commodity Exchange was established in line with Council of Ministers resolution No. 1719 of 30 December 2003 for the sake of making the transition to an organized wholesale commodity market, raising the economic stability and the degree of protection of the country, implementing a market-based pricing mechanism and making commodities available to all the market participants. The first exchange-facilitated trade session (export of timber products) took place on 2 June 2005. The same month saw the start of the regular trade in metal products, with trade in agricultural products launched in January 2006. Since May 2009 a section of industrial and consumer goods has been available with online trade in a wide choice of merchandise (from office supplies to complicated machine tools). In November 2012 Belarusian Universal Commodity Exchange started trading in futures in the futures and options market section. Since 2011 the exchange has been operating a digital trade platform for digital auctions. BUCE cooperates with several digital trade platforms of the Russian Federation in this regard. BUCE’s digital trade system unites over 12,200 participants from 56 countries across the globe. In 2012 the volume of exchange-facilitated deals exceeded $1.5 billion, with the trade registered since the beginning of 2013 exceeding $740 million. Branches of the commodity exchange operate in oblast capitals of Belarus. A representative office has been opened in the Russian Federation (Moscow). BUCE representatives operate in Vilnius (Lithuania), Riga (Latvia), South Africa (Johannesburg), and Sofia (Bulgaria).