Minsk steps up loan dependence on Russia

Last week, President Lukashenka met with President Putin in Moscow, took part in the session of the Supreme State Council of the Union State and visited the Forum of Regions. Minsk and the Kremlin have demonstrated that they have overcome the crisis in bilateral relations and the absence of contradictions between Belarus and Russia. Before the event, Belarus has received the fourth tranche of the EFSR loan (USD 300 million) despite the failure to meet one of the requirements. In addition, Belarus has received a loan from Russia to purchase combat aircrafts. Apparently, President Lukashenka’s visit to Moscow was a symbolic one, aiming to consolidate the positive trend in the Russo-Belarusian relations. Despite several statements about developing bilateral economic integration projects, most likely, they would remain mere declarations of intention without the implementation (as well as previous attempts by Russian business to privatise Belarusian enterprises). Allegedly, Belarus insisted on greater transparency of the West-2017 joint military exercise to relax tension and claims from Western capitals. However, even as regards military-technical cooperation, the Kremlin continues to reduce support for its Western ally: despite the loan for the purchase of combat aircraft, Russia has not offered any integration discounts to Minsk. That said, the parties are nevertheless prompted to make some concessions to each other due to mutual dependence.