BAKU, Azerbaijan, April 29. The Belarusian Universal Commodity Exchange (BUCE) aims to develop trade with Turkmenistan, Head for Exchange's Foreign Relations Alexander Bashliy told Trend in an exclusive interview.
"The Belarus-Turkmen trade exchange will be established using the same ideas and technologies that have proven successful in other areas. In particular, we discuss conducting exchange seminars and webinars, round tables, and conferences with the participation of representatives of Belarusian and Turkish businesses," he noted.
According to him, collaborative events planned with the cooperation of industrial groups or business circles typically deliver the maximum efficiency.
"Therefore, an agreement has already been reached on cooperation with the Chamber of Commerce and Industry of Turkmenistan, which expressed its readiness to assist in informing Turkmen business entities about the possibilities and advantages of the exchange mechanism," Bashliy said.
Furthermore, the representative of the exchange stressed that the issue of accreditation of a stockbroker in Turkmenistan is also being worked out, which will become a link between the Belarusian exchange and local enterprises, helping them to participate in auctions, settle transactions, and provide logistics.
"There are prospects in agriculture, industry, and woodworking, but, in my opinion, it is advisable to start with lumber. Along with dairy products, this is a distinctive indicator of Belarus," he said.
Furthermore, he mentioned that Belarusian timber products are supplied through the exchange to more than 20 countries in the world, including Turkmenistan, where demand for wood products is consistently high, and therefore it is necessary to increase the volume of Belarusian exports by increasing the pool of Turkmen buyers and ensuring the rhythm of supplies.
"The first steps in this direction have already been taken: negotiations have been held with residents of Turkmenistan already accredited at the exchange, who for one reason or another have not participated in exchange trading sessions over the past year. As a result, most of BUCE's inactive clients from Turkmenistan plan to intensify their activities on the exchange platform in the near future," Bashliy said.
The representative of the exchange added that, in parallel, a search is underway for potential buyers of Belarusian dairy products and sugar, where there is certainly interest.
"Belarus has an export-oriented economy; therefore, companies from a variety of industries sell their products overseas, particularly through exchange trading. At the same time, the exchange is frequently utilized as a tool for expanding the geography of sales because, through our trading system, it is possible to acquire access to potential buyers from more than 70 countries at minimal expense," he said.
The representative of the exchange noted that Turkmenistan is also represented on the exchange, and for many Belarusian enterprises, it is a promising sales market with great potential.
"However, import choices are rather diverse. Polymer products, detergents, textile raw materials, and workwear are among the most popular items on the Belarus stock exchange. All of these products are produced in Turkmenistan and can be distributed to the Belarusian market through an exchange platform. In other words, aggressively employing the exchange mechanism in mutual trade will benefit both the Turkmen and Belarusian sides," Bashliy stressed.
He also stated that the exchange system is as transparent as possible because trading is conducted anonymously and any chance of pricing collusion is eliminated, despite the fact that uniform rules apply to all bids, which are overseen by the stockbroker.
Meanwhile, the Belarusian Universal Commodity Exchange is the
only commodity exchange in the country and the largest spot
exchange in Eastern Europe, with all transactions requiring payment
and physical delivery of products.
A delegation from the Belarusian Universal Commodity Exchange's
Department of Foreign Relations visited Ashgabat in late March, and
plans were announced to increase trade with Turkmenistan this year
by realizing the exchange's export potential, which is primarily
represented by the supply of timber, dairy products, and sugar.
Several discussions with potential timber importers and Turkmen
food sector firms took place during the tour, which was organized
by the Belarusian Chamber of Commerce and Industry's Minsk branch
in collaboration with the Embassy of Belarus in Turkmenistan.