BELARUS: creation of the Eurasian Reinsurance Company to provide additional insurance capacity of about USD 2 billion

23 March 2023 —
The draft law "On Ratification of the Agreement on creation of the Eurasian Reinsurance Company" is being prepared for consideration in the House of Representatives in March.

The company is an international financial organization, the agreement is open for other states to join it, BELTA wrote citing Svetlana Bartosh, a member of the Standing Committee on Budget and Finance of the House of Representatives.

The decision to establish the Eurasian Reinsurance Company was made by the heads of government of the countries of the Eurasian Economic Union in August 2022 at a meeting of the Eurasian Intergovernmental Council. "The agreement on creation of the company was adopted by Belarus, Armenia, Kazakhstan, Kyrgyzstan and Russia. Its main tasks are to promote an increase in the volume of mutual trade and investment, develop economic integration between our countries, increase investment attractiveness and expand trade and economic ties with third countries by carrying out activities in reinsurance of export credits, including all financial instruments to support exports," said Svetlana Bartosh.

"Charter capital of the company consists of the nominal shares of its participants and amounts to RUB 15 billion (~EUR 0.18 billion). The founders of the company become its participants after paying their shares. The share of Belarus is RUB 4.5 billion, which is 30% of the charter capital", the parliamentarian explained. "The government of Belarus has identified authorized insurance organizations to make initial payment of the country's share in the charter capital of the Eurasian Reinsurance Company in 2022-2023 - Beleximgarant, Belgosstrakh and the Belarusian National Reinsurance Organization.

As Svetlana Bartosh noted, creation of the Eurasian Reinsurance Company will provide additional insurance capacity in the amount of about USD 2 billion. "If any contractual obligations are violated or not fulfilled, this reinsurance fund will cover the costs incurred by any of our countries", she added.

*EUR 1 = RUB 83.19 (22.03.2023)