Belarus at the brink of economic collapse :: Charter'97 :: News

It is the second time that the prime- minister of the Belarusian government Syargei Sydorsky left Moscow penniless .On Monday when meeting with Mikhail Fradkov he asked and maybe even begged for a USD 1.5 billion loan for the country lest the economic catastrophe should have broken out. But we shall lend the money only on definite conditions. The “new economic policy” of Russia towards its neighbors has appeared to be fruitful.

Alyaksandr Lukashenka has found himself in a predicament .In May he signed the bill on annulment of students’ and pensioners’ benefits. It was an extreme measure taken because it is benefits and high pensions that the “batka’s” popularity is based on, the “Salidarnast” newspaper writes quoting the “Izvestia” newspaper.
But, alas, he can’t afford it any longer. Pensions have not been increased, there isn’t the money for paying to the Gazprom and the debts have exceeded USD 500 million. And the prime-minister Syargei Sydorsky has nothing to do but to frequent Moscow asking for the stand-by credit. On Monday he paid another visit to Mikhail Fradkov but received only the hope for the” non-stop constructive cooperation”.
After loosing the fight with Moscow for gas prices and oil custom’s duties last winter Alyaksandr Lukashenka made sound declarations .He was switching off the tube, promising to dig oil in Iran and Venezuela, threatening to abandon us and to make friends with Europe. But Russia started to build the pipeline passing by Belarus and promised to close the Belarusian “Druzhba” pipeline. The European Union has not satisfied Lukashenka’s expectations either, depriving Belarus of trade preferences with European countries. The estimated losses amount to EUR 300million.
Meanwhile, the international trade balance of Belarus for the first half of the year is around USD 1billion. Oil refineries have faced crude shortages as it became unprofitable to deliver it to the country.
“On one hand the government reports on the economic progress, on the other hand they can’t find USD 500 million to pay for the Russian gas. It looks strange .I think, if Russia doest grant us a credit, then we’ll face devaluation”, Yaraslau Ramanchuk , one of the leaders of the oppositional United Civil Party, said.
Minsk relies on the Russian loan .Not only the future of the Belarusian economy depends on it but the future of Aleksandra Lukashenka himself. By the way, he is discontent with his prime minister’s efficiency, say, ”the government is negotiating upside-down ”.But there was nothing else to be done- and Lukashenka ordered to use firewood and not gas for stoking grain-dryers . Fortunately, there is enough forest in Belarus, yet.
But the most unpleasant thing for the “batka” is the reduction of social expenditures, which have made up the foundation for his popularity. He used to repeat that the Belarusian pensioners lived better than the Russian ones. But now it is not like that, the pensions have not been raised since the beginning of the year. And incomes ‘reduction can easily make the people turn their back on their beloved “batka”.
Alyaksandr Lukashenka has no political trump cards for his debates with Russia. The union state has been almost forgotten, the single currency either. The talks about the “Slavic fraternity” have been changed for economics. And the gas has become the most efficient lever.