Belarusian Ruble Is in a Steep Dive

Depreciation of the Belarusian ruble set records.

Yesterday an official exchange dollar rate hit all-time high of the week before last and now equals to Br21 568.

The Belarusian ruble had 12% devaluation against dollar in January. And it fell by 3.5% within first days of February. A total growth of American currency has made up 16% this year. Russian ruble increased by 8%. Belsat asked inhabitants of Minsk to share their opinion about currency rates in the mid-year.

People give different forecasts, but the most possible stand point is Br25-34 000.

"These are jaw-dropping prices. It is likely to stop," a woman complains.

Meanwhile, Lukashenka is on his holiday in Sochi. At the weekend he was doing a twirl with Russian Prime Minister Dmitry Medvedev for BelTA.

Two days earlier Andrei Kabiakau visited Medvedev without any ski equipment. Details of two meeting are still unknown.

"It is likely that Lukashenka is to wait for Putin. Russia is now in the state when no one but the first person can take the decision on assistance to our economy," Aliaksandr Yarashuk, Chairman of the Congress of Democratic Trade Unions, says.

Now Russian Finance Ministry has reduced its anti-crisis plan by $2.5 billion. It makes up the third of the budget. Meanwhile, an official Minsk, except a loan of $2 billion, requires of Moscow to increase access of Belarusian products to the Russian market, as well as greater benefits for the purchase of Russian gas and oil.

"If short-deliveries of motor fuels exceed more than 10% of the total volume chart, Russia may decrease deliveries to Belarus in the quarter planned," Russian Ministry of Energy notes.

Russia also wants to deploy a military airbase in Belarus and is likely striving for a certain support of Minsk in trade quarantine of Turkey and Ukraine. Aliaksandr Yarashuk thinks that the parties will finally reach a compromise.

I guess that Belarus will get a loan. It will ease the situation for some time. But it will not last for long, our problems will remain, Aliaksandr Yarashuk explains.

However, there is still no compromise between Moscow and Minsk. And hugs on-camera of Lukashenka and Medvedev are, some experts believe, just a media intervention to calm down a currency panic Belarusian ruble may face an unpredictable steep dive, if no loan is granted, experts say.