President of Belarus Urges a Broader Perspective on Rural Issues

An effective system of commerce must be established across the countryside and throughout Belarus. The deadline set by President Alexander Lukashenko for the government is January 1st. These directives were issued following a comprehensive discussion of the sector’s challenges: the closure of rural shops, ineffective digitalization, schedules and routes of mobile shops, expired goods, and limited assortment.

Serious criticism was directed at Belcoopsoyuz (Belarusian Cooperation Union). It was also noted that retail networks need to be involved in servicing small settlements. Commerce, however, is merely one facet of the larger problems facing rural areas. All these factors affect residents’ comfort and quality of life in the regions. President Lukashenko demands accountability and decisive action on these matters.

The conversation was framed with concrete focus — a discussion about retail services nationwide. Yet, it was clear that the meeting carried an underlying subtext. Vigorous trading is one of the key indicators by which citizens assess the comfort of their rural living conditions. The President himself has repeatedly called on Belarusians to live in the countryside. The closure of a rural shop, for example, causes discomfort and prompts legitimate complaints.

"It does not matter to the individual whose establishment has closed — whether it’s a private entrepreneur, a municipal enterprise, or a consumer cooperative system. That’s why I once again emphasized to the government and regional executive committees the need for an efficient service system across the country, which must serve as a guarantee of quality and social responsibility in trade for the people. According to the report I received, everything is proceeding according to plan: the population is being served at an appropriate level. However, certain regulatory barriers hinder the development of retail. Do you understand what you are writing? Do you consider these to be the main obstacles for rural shops? We cannot manage this. I want to know — who is imposing these barriers and why have they not yet been eliminated? According to your own data, several national strategies and plans are being implemented for rural residents. So why do such problems and dissatisfaction persist?" — asked Alexander Lukashenko.

The President cited specific examples of ill-conceived decisions that have become problematic for small rural stores. These include the requirement for digital signatures and the labeling of goods with special marks, as well as pointless digitalization initiatives—such as tracking and selling dairy products—that cause headaches for both buyers and sellers. These measures have provoked widespread outrage among all parties.

"I am instructing the government once again to revisit this issue and simplify procedures as quickly as possible. If necessary, a special regime for rural areas should be introduced. Rural women need milk, meat, and bread — not digitalization. Another common complaint from the population concerns the optimization of mobile shop routes. People complain about inconvenient schedules and limited assortment. Are local authorities unable to resolve these issues? Or are there insurmountable barriers again? Besides irregular arrangements of stationary and mobile trade, another sensitive aspect for consumers is the presence of expired goods. Not having goods is bad enough, but expired products are a red line. There are enough facts of such cases. Responsibility for servicing the population lies with local authorities. You, more than anyone, know what is happening in the regions and are obliged to organize trade in such a way that no complaints arise," — emphasized the Belarusian leader.

No one expects complex schemes for trade. The model is simple: a few good shopping centers in district towns, a store or a mobile outlet in large villages, and smaller villages served by mobile shops. The responsibility should be shared with private entrepreneurs.

"Even in small, seemingly unpromising villages, retail chains should be involved to serve the population. A balance must be maintained: if you build a profitable business in the capital and other large cities, you should also assume some social responsibility for servicing rural consumers. There are not many problematic districts. I want this message to be heard. Smart traders have flocked to big cities and are thriving on the Riviera. Organize for them to work in the countryside instead. The tools are available. Recently, we expanded opportunities for large retail chains to serve consumers in eight districts," — demanded the head of state.

Belkoopsoyuz, which has managed to retain its core structure since the collapse of the union, plays a crucial social role in the regions: providing essential goods to those places where private business either does not reach or refuses to go. This cooperative effort is supported, in part, by government backing.

"If you continue to organize Belkoopsoyuz's trade in this manner, it will be a serious setback. Are we supposed to buy fuel for trade purposes? Such absurdities have not occurred before. Last year, we agreed that governors could help fund repairs of shops from their budgets. Is that not support? The number of retail outlets in rural areas is declining. A year ago, they accounted for nearly 25% of all such facilities; now, it's about 23%. At this rate, you will lose your entire retail network, which still allows you to sell your products. Reports indicate that there are no positive financial movements from trade activities (a loss of 33 million rubles). But you haven't forgotten yourselves — the salaries of Belkoopsoyuz leadership are higher than most ministers," — stated Alexander Lukashenko.

The tasks assigned to the new minister at his appointment include addressing problematic districts (25 outlets outside standard operation), minimizing losses, and ensuring a sufficient assortment. Large retail complexes won’t arrive in the countryside, but residents should have the opportunity to buy what they need locally. While trade figures are growing, the President remains unimpressed by superficial numbers.

During the meeting, Antimonopoly and Trade Minister Artur Karpovich reported on the service system in Belarus. According to him, retail trade accounts for 9.6 % of GDP in the first half of the year, ranking second among sectors. Retail turnover targets are being met, with actual figures exceeding the goal — 108.6 % versus the target of 104.5 %. As of January 1, 2025, nearly 86,000 retail outlets operated in Belarus, with a steady annual growth rate of about 1.5 %.

However, Lukashenko focused specifically on rural retail facilities. The minister acknowledged that their numbers have decreased by 1.5 % over the past five years, with digital commerce gradually replacing traditional outlets.

The President also urged consideration of the needs of older generations, who often find these digital innovations challenging.

Adding concrete data, Belstat Chair Inna Medvedeva reported that annually, the number of rural shops decreases by 100-250 units. Moreover, the share of retail turnover in rural areas has fallen from 20 % to 13.4 %, down from 14 % last year.

"Every year, a small slice of rural retail is taken away. This indicates that the supply of goods in the countryside is insufficient — and we can confirm this with hard figures," she said.

Antimonopoly Minister Karpovich noted that electronic commerce is expanding not only in cities but also in rural areas, with new pickup points and active use of services like Belpochta and Belkoopsoyuz.

Marketplace platforms broaden consumer choice but cannot replace physical stores — especially for the elderly, who are less tech-savvy. Social media and online reviews increasingly serve as tools of public oversight. However, this coin has two sides.

The minister pointed out that some social media videos with complaints about rural shops do not always reflect reality. Sometimes, they are created solely for publicity, to attract followers.

"I understand all that. Today, people post videos claiming there are rats running around. Should the President go catch rats? You can't even handle garbage on the ground, and rats are running loose. Otherwise, they wouldn't be. I understand all this," — reacted Lukashenko.

Indeed, social media has recently brought to public attention issues such as the closure of a shop in Soligorsk district. Unprofitability and new service standards created difficulties that were addressed with mobile shops. This particular case highlights a problem faced across many rural areas. The local authorities are now monitoring the situation.

While systemic problems are being identified, the President emphasized the need to broaden the scope of attention to rural issues. If citizens raise concerns, they must be addressed. For example, a kindergarten in the Gorshkovshchina agrotown near Tolochin will remain operational despite initial plans to close it.

"I am not saying that all such facilities must be preserved everywhere. As some suggest, schools should be maintained only where 3-4 children are in a class. Who needs such education? It’s better to invest in transporting children to neighboring schools with proper facilities. But closures should not be thoughtless," — stressed the head of state.

He underscored that the approach to optimizing socially significant facilities must be sensible and based on people’s interests. As an example, he recalled a recent case where a rural kindergarten with few children was closed, and he instructed officials to investigate.

"I was in charge — I wanted children to attend the kindergarten because that freed up seven working hands," — noted Lukashenko.

Officials’ explanations, he said, sounded like: "There is a kindergarten 7-10 km away."

"Will a dairy farmer take three- or four-year-olds 7-10 km to kindergarten? Are you out of your mind? Can't you see? Send your grandchild or a four-year-old to that distant kindergarten! Incredible," — said the Belarusian leader.

He demanded solutions to all pressing issues related to rural life.

"If we are so clever, why can’t we even ensure basic conditions? If we couldn’t, we wouldn’t be Belarus," — Lukashenko emphasized.

He reiterated that government aid should be provided on a repayable basis — not as a gift. This requirement applies not only to Belkoopsoyuz but to other sectors as well. He mentioned an upcoming proposal to allocate 10 million rubles for purchasing rapeseed growth regulators, as a form of state support.

"What does that mean? A loan! Here’s 10 million (with a lower interest rate), which you must repay once you harvest the rapeseed. Don’t throw this money around as if we have nothing else to buy with the budget," — explained the President.

Vitebsk Regional Executive Chairman Alexander Subbotin said:

"The President demands a more careful approach to each case. We are fighting for personnel policies in rural areas, and if there are dedicated workers — we must make exceptions and preserve them. This case is illustrative. The kindergarten must stay open. Although 21 children are transported from this village to another, the kindergarten will remain, and the school will be in the neighboring village — to sustain these settlements."

The meeting reviewed all trade-related issues in the country. A worrying sign is the declining share of domestic goods in retail. This is food for thought for the government. The President’s conclusion is clear: by the end of the year, a clear and effective system of rural trade must be established nationwide.

"There must be a system in trade. We are a systematic state," — declared the head of state.

He pointed out that Belarus has regions (districts and the city of Minsk), more than 1,400 agrotowns, and large villages. All are located along main roads. There are tiny hamlets and so-called non-promising villages with populations of 7-10, mostly elderly residents, who once built the country, the Belarusian leader emphasized.

"Based on this, you must develop a system to serve these people. The deadline is January 1st. And God forbid, helpers and authorized persons see even one village where ‘Baba Dunya’ has not received what she worked for all her life," — he tasked.

Lukashenko also highlighted successful examples of local service organization.

"Do the same across the country. It’s not expensive. Use all available resources. Let’s start from the border of the Grodno region (where our general can organize everything) and review the country’s living conditions. Ensure that people have access to necessary goods," — he ordered.

He noted that the main issues are not complex — just ensuring an adequate assortment.

"And prices — the most important thing — prices must be fair and affordable," — he added.

Minister Artur Karpovich of Belarus’s Antimonopoly Regulation and Trade confirmed that the main responsibility lies with local authorities. The Ministry will develop a clear mechanism to minimize dissatisfaction with service, including in rural areas.

Belkoopsoyuz is operating in a mobilized mode today. Many problems remain, from asset illiquidity to personnel shortages, but the organization does not shirk responsibility. It manages nearly 4,000 retail outlets, almost 500 mobile shops, and oversees 13,000 settlements.

Inessa Korotkievich, Chairwoman of Belkoopsoyuz, said:

"Improving efficiency across all sectors is the goal today. We will strengthen cooperation with local authorities regarding the distribution of the so-called load for servicing small communities. We understand that business thrives where there is an objective financial result. Currently, we operate where there is no business activity, according to our statutes."

There is still time before the New Year to work on the system — cooperation between the cooperative, government trade entities, and private businesses. Importantly, local authorities must actively participate in solving trade issues. But they, too, have a personal stake: Belarus does not have separate specialized stores for officials.