BELARUS NEWS AND ANALYSIS

DATE:

30/12/2007

Belarus threatens to expel U.S. ambassador

MINSK (Reuters) - Belarus will expel the U.S. ambassador and ban trade in U.S. dollars if Washington decides to impose substantial new sanctions on the country, President Alexander Lukashenko said on Sunday.

The Bush administration, which has dubbed ex-Soviet Belarus "the last dictatorship in Europe", has introduced a series of punitive measures against Belarus, including a ban on Lukashenko visiting the United States.

Washington also prohibited Americans from doing business with Belarus' oil refiner Belneftekhim and froze any assets it has under U.S. jurisdiction.

In mid-December U.S. ambassador Karen Stewart said Washington may extend sanctions against state companies in Belarus controlled by people she said were responsible for infringements of democracy. Lukashenko said on Sunday if new sanctions were broad, she would be expelled.

"As soon as substantial sanctions against our economy are imposed, we will retaliate in a toughest possible way on all fronts," Belarus' state media quoted Lukashenko as saying.

"The U.S. ambassador will be thrown out first," he said.

Lukashenko also said Belarus might eliminate the use of U.S. dollars and switch to other currencies: "We can survive without the dollar... We are building up reserves in yen and yuan. We can switch to euros..."

The United States has little investment in Belarus.

Belarus depends almost solely on Russia for the crude oil it refines. Beleneftekhim controls two refineries and a potash plant and provides one-fifth of all foreign currency earnings.

The United States and European Union accuse Lukashenko of harassing and jailing opponents, muzzling the media and rigging polls, including his re-election to a third term last year.

Belarus has sought better ties with the West since a spat this year with Russia over energy price increases. But it rejects any suggestion it must improve human rights and release what Western countries describe as political prisoners.

Source:

http://in.reuters.com/article/worldNews/idINIndia-31174320071230