Page 17 - FSUOGM Week 36

FSUOGM POLICY FSUOGM

Russian Prime Minister
Mikhail Mishustin (left)
met with Belarusian
President Alexander
Lukashenko in Minsk
on September 4.

Belarus promises to settle Russian

gas debts within month

BELARUS BELARUS has pledged to pay off all its gas debts energy ministry.
to Russia within a month, at a time when its That Belarus has now agreed to settle the
The promise suggests long-ruling President Alexander Lukashenko is debt could indicate it has given up on securing a
Belarus has given up reaching out to Moscow for support to help quell discount. Gazprom has said before that the debt
on securing a discount mass unrest. must be paid before negotiations on gas prices
from Gazprom. “We agreed in principle that our colleagues and supply volumes from 2021 can begin.
would pay off the debt. They are now busy check- Lukashenko, who faces mass protests over his
ing the debt’s amount and collecting it from recent disputed election victory, has reached out
sources,” Russian Energy Minister Alexander to Moscow for support. The apparent agreement
Novak told reporters on September 7. on gas debts comes after the Belarusian leader
The understanding was that Belarus will held talks on September 3 with Russian Prime
settle the amount before the end of September, Minister Mikhail Mishustin in Minsk.
although “there are many technical issues,” he The pair also discussed preparations to
said. re-open the countries’ shared border that was
Belarus and Russia have been locked in a dis- closed because of the coronavirus (COVID-
pute over oil and gas supplies for several years 19) pandemic, and the rerouting of Belarusian
now. Russia even cut off oil shipments to its east- petroleum product exports from the Baltics to
ern neighbour at the start of this year because of Russian ports.
a disagreement over prices. It gradually restored Lukashenko is also set to meet with Russian
them over the subsequent months. President Vladimir Putin in the coming weeks.
This disruption had a knock-on effect on Entangled in the dispute over oil and gas,
Belarusian refined fuel exports, a major source Russia and Belarus have also held on-again, off-
of the country's revenues, which slumped 42.6% again negotiations over the last couple years on
to 3.01mn tonnes in the first half of this year. closer political and economic integration. How-
Belarus has been paying $127 per 1,000 cubic ever, Lukashenko has so far resisted Russian calls
metres of Russian gas since the start of 2019, for the creation of the so-called Union State that
but its government has been pushing for a dis- would effectively merge both countries.
count. As such, Minsk has not been paying the Moscow may now be able to exploit
full amount charged by Gazprom, causing it to Lukashenko’s precarious political position at
rack up a debt of $328mn, according to Russia’s home to score more concessions, however. ™

Week 36 09•September•2020 www. NEWSBASE .com P17