Kommersant: Russia won’t give 100bn loan to Belarus

Russian media report that Belarus will buy gas at $210 this year, but won’t receive a new loan.

Russian president Dmitry Medvedev met Alyaksandr Lukashenka at his Zavidovo residence.

According to Kommersant daily, during the three-hour talks the Russian party managed to persuade Lukashenka not to take 100bn-ruble loan ($3.5bn) from Moscow, and talked him into paying $210 per 1,000 cubic meters of Russian gas and, perhaps, recognize Abkhazia and South Ossetia.

“Are you ready to give Belarus 100 billion?” A Kommersant correspondent asked Aleksei Kudrin, head of the Ministry of Finance before the meeting of the two presidents.

“What 100 billion? No billions!” the minister said. “How amazing – aid was measured in tens of billions before the crisis, but now it is measured in hundreds.”

A high ranking officer of the Russian president’s administration told in an interview:

“The money they expected us to grant will be spent on pensions, benefits, in other words, on social needs. We are not happy that the Belarusian authorities want us to pay for their

populist policy. I think we won’t give them any money.”

According to the newspaper, taking into account the composition of the Russian delegation, Alyaksandr Lukashenka had little chance of receiving Russian money at the meeting. Besides Aleksei Kudrin, vice premier Igor Sechin and president’s aide Sergei Prikhodko were ready to come to help to Dmitry Medvedev.

Lukashenka and Medvedev had three-hour talks behind closed doors. Members of the Russian delegation were leaving Dmitry Medvedev’s residence one by one every hour as they were no longer needed.

“Did you finally find 100 billion for Alyaksandr Lukashenka?” journalists asked minister of finance Kudrin.

“A question of granting a loan to Belarus is being considered,” Kudrin said.

He syllabified the last word, but didn’t say how long the Belarusian application would be examined and whether the answer would be positive if Minsk recognized Abkhazia and South Ossetia. Having informed that Russia and Belarus were preparing an agreement on using the ruble to pay for energy, Aleksei Kudrin went to Moscow.

Igor Sechin and Aleksandr Medvedev were the next to leave the presidents. The latter had much to do. As Kommersant found out, the Belarusian authorities pretended they didn’t noticed increase in gas prices from $128 to $210 per 1,000 cubic meters in the first quarter of the year and paid at the previous price. As a result, Minsk owes to Gazprom about $70mln for two winter months that made the Russian monopolist nervous. According to Aleksandr Medvedev, the matter was settled at the talks in Zavidovo.

“We have arranged everything and clear up a misunderstanding,” Mr Medvedev said.

So, it turns out that Minsk will buy Russian gas at $210 per 1,000 cubic meters. The parties also agreed that Gazprom will soon increase its stake in Beltransgaz up to the arranged 50 per cent (Gazprom paid 12 per cent more and now owns 37.5 per cent). So, the main gas issue can be considered closed.

Besides, as Kommersant has learnt from an anonymous officials, who was present behind closed doors, Moscow raised a question of privatization milk processing factories in Belarus by the Russian capital and were close to settle it. A working group, which is to make up a list of objects attracting for the Russian business, can begin work in early April. Moreover, Sechin will soon pay a visit to Minsk to discuss “joint investment projects” in the oil sector.

The official also told the newspaper how Belarus had been denied a loan:

“We have just persuaded Lukashenka that this decision should be taken in the contest of the situation in the world. Besides, Belarus should justify they really need the money and prove us they can pay a loan back, if it received. It is a very important moment.”

In other words, a small hope was still left for Lukashenka. Whether it will come true or not depends on a session of the Belarusian “parliament”, beginning on April 2. Kommersant learnt yesterday from a source close to Alyaksandr Lukashenka that a question of recognizing of Abkhazia and South Ossetia would be put on agenda in spite of displeasure of the European Union. He also hinted that this issue would possibly be settled in Russia’s favour. However, Minsk has a special surprise for Europe – Russian-Belarusian military exercise West 2009 is to be held in Belarus in autumn.