Kremlin Prepares Harsh Sanctions for Belarus :: Charter'97 :: News

The first round of talks between Russia and Belarus after oil transit cut off is absolutely fruitless, and it makes the Kremlin take strong measures. According to “Vedomosti”, in the next few days a package of economic measures including imposing duties for Belarusian goods imported at zero-rate now, is to be elaborated. Belarusian experts interviewed by “Vremya Novostey”, believe that Russia’s harsh position can lead to breakdown of Belarusian economic model of “market socialism”, to Lukashenka’s regime crisis or at least to less radical reforms avoided by Belarusian government so far. This could be a reprisal for two minutes of illegal siphoning off of Russian oil destined for Europe to Belarusian reserves.

A source in the White House told to “Vedomosti” that in the next few days a package of economic measures including imposing duties for Belarusian goods imported at zero-rate now, is to be elaborated. Limitations have already been applied to Belarusian sugar. According to Russian government’s decree, on December 29 customs duty was imposed on it. Since February meat and by-products (99.9% of export go to Russia), milk and dairy products (more than 90% go to Russia), TV sets (about 90%), furniture (more than 80%) could follow sugar. Taxes could be put on commodities that make more than a half of Belarusian export to Russia (6 billion dollars).

A new law “On special economic measures” signed by Putin before the new year, could allow not to waste time for anti-damping investigations and other formalities. The decree allows the head of the state to impose sanctions in case “urgent reaction to international unlawful or unfriendly acts of a foreign state or its agencies or officials” is needed. Under this law, the president can temporarily freeze economic programs and military and technical cooperation, scale down external economic and financial operations, change customs duties.

The White house sources admit that these measures in fact could become a provisional break of the customs union with Belarus. “But we are not succeeding in coming to terms with Lukashenka peacefully,” a source in the presidential administration laments.