- Title: RUSSIA: Belarus leader says expects Russian help in crisis
- Date: 23rd December 2008
- Summary: MOSCOW, RUSSIA (DECEMBER 22, 2008) (AGENCY POOL) MOSCOW KREMLIN RUSSIAN PRESIDENT DMITRY MEDVEDEV SHAKING HANDS WITH BELARUS PRESIDENT ALEXANDER LUKASHENKO PHOTOGRAPHERS TAKING PHOTOS (SOUNDBITE) (Russian) RUSSIAN PRESIDENT DMITRY MEDVEDEV, SAYING: "Eyeing the crisis of the world financial system, we, nonetheless keep continuing our cooperation and finding the way out of these problems. So I think, that in terms of Russian and Belarussian relations we can meet the New Year in a good mood." PHOTOGRAPHERS AND CAMERA CREWS FILMING (SOUNDBITE) (Russian) BELARUS PRESIDENT ALEXANDER LUKASHENKO, SAYING: (SOUNDBITE BEGINS OVER PREVIOUS SHOT) "I completely agree with you. That this year wasn't easy, but a very effective year for our countries. And Europe along with America was correct to state that you cannot escape this crisis by yourself. That's why I completely agree with you, that we have lots of things to talk about. But I want to dispel insinuations that Belarus is all but crawling on its knees to the Kremlin to ask for something. We are not at all going to ask for anything today." MEDVEDEV LISTENING (SOUNDBITE) (Russian) BELARUS PRESIDENT ALEXANDER LUKASHENKO, SAYING: "Today, if the Belarus economy halts, that will mean more than 10 million fully or partially jobless in Russia." RUSSIAN FLAG WAVING OVER THE KREMLIN WALL
- Embargoed: 7th January 2009 12:00
- Keywords:
- Topics: International Relations
- Reuters ID: LVADUZB3WAXGT22QMRIP4YYH54E2
- Story Text: Belarus leader Alexander Lukashenko says it is in Russia's interests to help his country survive the economic crisis.
Russia is bound to help Belarus stave off economic crisis because it is in its own interests to do so, Belarussian President Alexander Lukashenko said on Monday (December 22) at the start of talks on gas supplies and loans.
Lukashenko flew to Moscow amid media speculation Russia could demand that Belarus recognises the independence of two breakaway Georgian provinces in exchange for the badly needed crisis help.
"I want to dispel insinuations that Belarus is all but crawling on its knees to the Kremlin to ask for something," Lukashenko said at the start of Kremlin talks with Russian President Dmitry Medvedev. "We are not at all going to ask for anything today."
"But if the Belarus economy halts, that will mean more than 10 million fully or partially jobless in Russia," he added.
Ethnically close and deeply integrated economically, Russia and Belarus have agreed to create a "union state". But the plan has failed to take off as Lukashenko rejected all steps like introducing common currency, which could question his powers.
In the past months, Lukashenko has alarmed Moscow by launching political overtures with the West, where he had been ostracised for years over his democracy record.
Lukashenko has refused to recognise the independence of South Ossetia and Abkhazia, two rebel regions patronised by Russia since its brief war with Georgia in August.
The Georgia war and Russia's recognition of the two provinces has drawn international condemnation. Only Nicaragua has followed Moscow's example so far.
But pressed hard by the looming economic crisis, Lukashenko had to ask Moscow for emergency loans and for holding off plans to raise gas prices in 2009 to keep the Belarus economy afloat.
Earlier this year, Russia dispatched a 2 billion USD preferential loan for Belarus. Talks on a new loan, badly needed by Minsk which hopes to win an IMF credit have so far failed to materialise, and gas prices for 2009 are currently underway.
Belarussian officials had said they were counting on a price of 160 USD per 1,000 cubic metres of Russian natural gas in 2009 compared with the current rate of 128 USD. Russian officials have suggested the price will be no less than 200 USD.
Kommersant daily suggested on Monday that the recognition of South Ossetia and Abkhazia could be part of the trade off.
"The president of Belarus indeed has something to offer his Russian counterpart both in political and economic aspects," it quoted unnamed sources as saying.
"Alexander Lukashenko said in early autumn that this would be done by a newly elected Belarussian parliament...But two and a half months after the parliamentary elections (in Belarus), he has not yet made good on the promise," the paper added.
The Kommersant also said Minsk could offer to sell Russia a stake in its state gas transit firm Beltransgaz. - Copyright Holder: POOL (CAN SELL)
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