belarusian “Buy Local” Policy Exacerbates Trade Tensions with russia

The share of belarusian goods in retail decreased to its lowest level in history – 53.5 % in the first quarter of 2025 – despite restrictions on Western imports. Minsk is trying to bring the figure to 63 % by the end of the year, using administrative resources and direct work with retailers.

In the second quarter, the domestic share grew by only 1.1 %, food products – by 1.9 %, and non-food products – by 2.2 %. The worst performance was in outerwear (11.7 % against the target of 34.5 %) and footwear (23.5 % against the target of 36.5 %).

Imports are accelerating: in the first half of the year, deliveries grew by 17.5 % to $7.24 billion. The Ministry of Antimonopoly Regulation and Trade holds meetings with manufacturers and retail chains to find new sales channels. For example, the knitwear manufacturer “Polissya” has been offered to sell blankets and decorative cushions at filling stations. Other ideas include “open days” in stores with an emphasis on belarusian products, as well as proposals from business associations regarding the equalization of trade margins and rules for displaying goods for suppliers of domestic and imported goods.

The “buy local” policy first of all affects imports from russia. moscow is responding in kind: it is considering restrictions on belarusian cement, while sales of MAZ buses in the rf declined by 58 % in seven months. In July, only two buses were sold, despite the launch of a new plant in belarus.