Meeting to discuss measures to eliminate unjustified and unscrupulous intermediation

We must clearly distinguish between justified and unjustified intermediation, Belarusian President Aleksandr Lukashenko said at a meeting to discuss measures to eliminate unjustified and unscrupulous intermediation on 12 March.

The President stressed that the issue raised at the meeting has always been under his close attention, as it is one of the effective tools for reducing production costs. And the topic of cost price, production expenses alongside product quality, is critically important when it comes to exporting domestic goods. These factors shape the competitive advantages of Belarusian products on foreign markets.

"Do you think costs will go down if we overpay two or three times for raw materials, equipment, and other supplies because of intermediaries and your various 'friends'?" Aleksandr Lukashenko asked rhetorically. "This is a direct increase in costs… An intermediary inflates our price, taking 25-30% of it for themselves. Is this acceptable?"

The head of state has repeatedly instructed the government to improve the competitiveness of the economy, ensure efficient use of funds, and prevent various types of illegal activities.

Aleksandr Lukashenko noted that procurement legislation has been tightened and multifunctional centers for selling Belarusian machinery have been established abroad, yet the system is still far from perfect and the problem has not been fully eradicated. "Both the previous government and the new one, for some reason, are dragging their feet on these issues. This cannot help but concern me," the head of state said.

According to law enforcement and oversight bodies, numerous violations and abuses, including criminal offenses, are uncovered every year in various sectors involving intermediary structures. In 2025 alone, more than 400 crimes directly related to procurement procedures were identified across industrial, agricultural, and other areas. More than 50% of these cases involved bribery. "In other words, an entire layer of bandits, swindlers, and crooks has emerged from this intermediation," the President remarked critically.

Aleksandr Lukashenko recalled that he had instructed Aleksandr Kosinets, Deputy Chairman of the Belarusian People's Congress, to examine the situation in detail and propose radical measures to eliminate dishonest and unjustified intermediation. "All the more so, because he has a small but highly qualified administrative team at the Belarusian People's Congress Secretariat. About a dozen smart, capable people, some of the best, including lawyers, who can study this problem and put forward proposals," the head of state explained.

"We must clearly distinguish between justified and unjustified intermediation," Aleksandr Lukashenko demanded. "No one in the state is opposed to reasonable intermediaries where they are objectively needed. But this will remain in a small number of areas that will be overseen either by regional governors, ministers, or the prime minister." At the same time, there are those in the country who in a difficult situation think only about their own enrichment, the President added.

He remarked that sometimes supply chains include three or even five intermediaries, which often exist only on paper. Sometimes foreigners are employed to circumvent the prohibitions on price markups stipulated by the national legislation.

"As a result, ordinary consumers have to pay for all the markups lining the pockets of these fly-by-night operators. It is scandalous and there are plenty of examples," the head of state pointed out. He mentioned one of the facts: a cardan shaft that costs Br140 went through several intermediaries and was sold to the end consumer for Br935. "The price went up by more than 6.5 times!" Aleksandr Lukashenko was indignant.

"While the legislation on public procurement seems to be observed (suppliers are chosen via tenders), equipment is acquired with preposterous surcharges in the manufacturing sector, healthcare, education, housing and utilities, and IT services for the public sector. And, as a rule, bribes are involved everywhere," the President identified the problematic aspects.

For instance, in 2023-2025 the money spent by RUP National Center for Electronic Services and OOO Belarusian Cloud Technologies on markups of intermediaries, which could be as high as 200%, totaled about Br10 million.

"Everyone in business must know (and not just businessmen): with those who decide to profit from criminal schemes, the conversation will be short (and you know who with)," the head of state said, warning also of possible consequences from law enforcement agencies.

He also pointed out that artificially created chains of unnecessary intermediaries lead to corruption and the draining of funds.

"Although ideally this money should be working in the economy and go towards the country's development, towards improving people's lives. Therefore, the green light and support is only for those who work for the good of the country and create something with their own hands," the President emphasized.

The head of state noted that the Belarusian economy is operating under sanctions, and enterprises constantly face severe restrictions on exporting products, importing raw materials, purchasing equipment, and making payments for delivered goods.

"In such conditions, we have to look for unconventional options for supplies and payments. Under sanction pressure, we unfortunately cannot completely abandon the services of intermediaries: there are objective reasons for this," the President stated. But he warned that these very reasons may be used as cover by unscrupulous individuals, and such attempts must be firmly countered.

"We are fully capable of developing effective measures to prevent such activities," the President believes.

However, as the head of state noted, the draft decrees submitted for his consideration did not fully outline the entire range of necessary measures. In particular, they did not clearly and simply identify those responsible. The President suggested doing this in the same manner as in Stalin's times: if something goes wrong, the person in charge is held accountable.

"Our ministers keep their distance, and governors say it's not their responsibility. So who will answer for this? Or have you, Aleksandr Genrikhovich [Turchin, Prime Minister] and Aleksandr Nikolayevich Kosinets, provided exhaustive mechanisms in these documents to prevent unjustified intermediation and similar practices? You have not," Aleksandr Lukashenko said, criticizing the draft documents.

The President emphasized that he generally supports the proposed concept: intermediation is harmful, it must be eradicated, and producers should be supported in every possible way. At the same time, there is an understanding that it is impossible to completely avoid intermediaries, at least when it comes to foreign procurement. But even in such cases, one cannot simply stand idle; effective control mechanisms can be found.

"We must say openly that some suppliers and sellers of products we primarily import from abroad (I'm not talking about domestic supplies) simply state: we sell through this intermediary, take it or leave it. There is nothing we can do about that. But even then, we must control pricing," the head of state stressed.