Belarusian Finance Ministry sees Eurasian Reinsurance Company as viable alternative amid sanctions

The foundation of Eurasian Reinsurance Company is an alternative solution amid sanctions, BelTA learned from Belarusian Finance Minister Yuri Seliverstov.

Members of the House of Representatives of the National Assembly of Belarus passed a bill on ratifying the agreement on founding Eurasian Reinsurance Company during the ninth session of the seventh-convocation parliament. The finance minister presented the bill before the MPs in the Oval Hall.

The bill was brought in to the parliament by the Council of Ministers. The bill had been prepared for the sake of completing the intrastate procedures, which indicate Belarus' consent to observing the Eurasian Reinsurance Company foundation agreement by means of its ratification and are necessary for the agreement to come into force.

Yuri Seliverstov said: “The agreement provides for establishing Eurasian Reinsurance Company, which operation is meant to facilitate trade of the Eurasian Economic Union member states by means of reinsuring risks of exporter enterprises.”

“Due to the introduction of sanctions-based restrictions insurance companies of unfriendly countries have stepped down their work or have totally refused to work with Belarusian insurance companies. This is why the insurance companies can no longer pass on some of the risks to the relevant foreign companies. The reduction of the foreign reinsurance capacity due to sanctions against Belarus and Russia has created objective prerequisites for looking for an alternative solution. One of the tools for increasing the ability to transfer risks abroad is the creation of Eurasian Reinsurance Company, which capital will be formed out of contributions of the EAEU member states: Russia – 45%, Belarus – 30%, Kazakhstan – 20%, Armenia and Kyrgyzstan – 3% each,” the Belarusian finance minister noted.

Belarus' share will be paid for by the organizations that the government will authorize.