Page 14 - FSUOGM Week 38

FSUOGM POLICY FSUOGM

Russian President
Vladimir Putin meets
Belarusian counterpart
Alexander Lukashenko
in Sochi on September
14.

Belarus to use Russian-arranged loan

to settle gas debts to Gazprom

BELARUS BELARUS intends to use part of a $1.5bn loan for a sixth term of office in early August in a vote
package arranged by Russia to settle its gas debts which the opposition has condemned as rigged.
Belarus racked up a to Gazprom, Russian Finance Minister Anton Tens of thousands took to the streets again on
debt because it was Siluanov told reporters on September 20. September 20 demanding Lukashenko's resig-
previously seeking a Russian President Vladimir Putin announced nation. Belarusian policy say they detained over
discount and did not the financial support after meeting in Sochi on 400 of the protesters.
pay the billed amount September 14 with his Belarusian counter- Lukashenko has reached out to Putin for
for gas. part Alexander Lukashenko, who is facing the support, but the Russian president has sought
most serious political crisis of his 26-year rule. concessions in return, including progress in
Lukashenko has reached out to Moscow for talks on merging Belarus and Russia into a sin-
support amid ongoing mass protests against his gle state.
regime. Earlier this month Russian Energy Minister
The loan package consists of a $1bn Russian Alexander Novak said Minsk had pledged to set-
state loan that will be distributed to Belarus over tle its gas debts in full by the end of September.
two years, along with a $500mn loan from the The two countries have clashed for years over
Eurasian Fund for Stabilisation and Develop- oil and gas supplies, which Belarus receives from
ment. Around $330mn of the latter will be used Russia at a lower cost than most other countries.
to fully settle Belarus’ debts to Gazprom, Silu- This essentially serves as a subsidy for the Bela-
anov said. rusian economy, granted in return for its alle-
Gazprom has been billing Belarus $127 per giance to Russia.
1,000 cubic metres of gas supply since the start A dispute flared up last year over the cost of
of 2019, but Minsk has not been paying the full Russian oil for Belarus, which rose because of tax
amount. Belarus had been pushing for a discount changes in Moscow. This culminated in Russia
from Gazprom, but its apparent willingness to temporarily halting oil supplies to Belarus at
settle the debt to the Russian supplier suggests it the start of this year, causing problems for its
is no longer seeking this. refiners. Those refiners export fuel to Europe,
Protestors have been regularly taking to the providing a significant share of Belarus’ budget
streets in Belarus since Lukashenko was elected revenues. ™

P14 www. NEWSBASE .com Week 38 23•September•2020