Belarus and Russia Move from Union to Enmity

Belarus and Russia Move from Union to Enmity
Something has gone badly wrong between Moscow and Minsk. The turning-off of the gas supply was just one symptom of a souring in relations that had, not that long ago, seemed rosy. In fact, Russia and Belarus committed to a form of union in the 1990s. Initiated by Russia's then-president Boris Yeltsin, this vaguely-defined agreement has helped Alexander Lukashenko hang on to power in Belarus for over a decade. Russia has, to some extent, ignored Lukashenko's authoritarian rule and western accusations of rights abuses. With the blessing of the Kremlin, he was re-elected with what critics called a Soviet-style score three years ago. Since 1994, Russia has provided Belarus with gas at the preferential rates usually reserved for domestic clients. The state pays a third of market rates for its gas supply, selling it on to the consumer at a 100 percent mark-up. Since Vladimir Putin took office, however, there has been increasing friction. President Lukashenko has fiercely opposed an influx of Russian capital into the Belarussian economy. Putin reminded his host on a visit to Minsk in 2002 that Belarus' economy was just three percent the size of Russia's. Putin also suggested Balarus might like to become the 90th province of the Russian Federation. Lukashenko reacted by freezing the assets of Russian firm Slavneft. Things have since gone from bad to worse on the energy front. Instead of the previous 30 dollars per thousand cubic metres, Moscow is hoping to charge Belarus 50 dollars for a continual gas supply. The rate has already reached 47 dollars under the temporary deal Minsk has signed with Russia's Trans Nafta, lasting until the end of the month. Gazprom, the world's largest gas producer, currently supplies Europe with over a quarter of its gas needs. Of this, 16 percent, or 22-24 billion cubic metres a year, pass through Belarus.

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