BELARUS NEWS AND ANALYSIS

DATE:

22/12/2008

Belarus must recognize Georgian provinces as independent to get loan: Moscow

By THE ASSOCIATED PRESS

MOSCOW - Belarus' president is seeking US$3 billion in economic aid from Russia to help its struggling economy, but Moscow is demanding in return that Belarus recognizes two breakaway Georgian regions as independent nations, a newspaper reported Monday.

President Alexander Lukashenko was scheduled to arrive in Moscow Monday for talks with his Russian counterpart, Dmitry Medvedev.

The daily Kommersant cited unidentified Russian Foreign Ministry officials as saying that Moscow wants Belarus to recognize South Ossetia and Abkhazia as independent as a condition for providing the money.

Russia recognized the two Georgian regions after its August war with Georgia, but so far only one other nation - Nicaragua - has followed suit.

Foreign Ministry officials could not be immediately reached for comment.

It's the second time this year that Lukashenko has turned to his lukewarm ally for help in supporting his country's Soviet-style economy, which is struggling amid the global economic downturn. Earlier he requested and was given a $2 billion loan.

Last week he announced he was also seeking $5 billion in aid from the United States, even though Washington has dubbed him "Europe's last dictator." And Belarus is negotiating for a $2 billion loan from the International Monetary Fund.

Kommersant also reported that Moscow wants Belarus to turn over control of its state-run natural gas transport system as a condition for the money.

Belarus relies heavily on cheap imports of Russian oil and gas and it's a key transit nation for Russian natural gas headed to Europe. But the countries have clashed over price contracts in the past and Europe-bound supplies have been disrupted - to Moscow's dismay.

Ahead of the visit, the Kremlin said Medvedev and Lukashenko would discuss "a wide range of issues of bilateral cooperation" including "cooperation in the fuel and energy sector."

Source:

http://cnews.canoe.ca/CNEWS/World/2008/12/22/7824671-ap.html

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