P.P: As the post was published, shocking news came. There was an explosion in the busiest Minsk underground station Oktyabrskaya, in the very centre of the city, near the Presidential Administration. 11 dead, 126 injured.. The explosion is classified as a terroristic act. The second one after the bombing in July’2008.. and the first one which took human lives.. Lukashenka personally examined the scene and urged to search the county and arrest anyone who has explosives.
The two main weapons of the Belarusian authorities are fear, surprise and ruthless efficiency… Well, the three weapons are fear, surprise, ruthless efficiency and fanatical devotion to the social model of market economy… Anyhow, not the rule of law, but the law of their rules, which are not always logical.
The current economic and political self-portrait of Belarus is full of the brightest shades of the darkest colours. Since presidential elections in December 2010, the future of the country has been changing. On 12 April EU ministers will discuss potential economic sanctions against Belarusian authorities. No sweat: they already introduced economic sanctions against themselves.
The country faces a crisis in terms of hard currency: trading in foreign currency has been restricted and no flexibility in the exchange rate is allowed. It’s very difficult to buy dollars or euros, which makes foreign travel difficult, handicaps the private sector and could end-up bringing the biggest state factories to a standstill.
Belarusians have hurried to empty their bank accounts to buy foreign currency as well as anything that can be traded (gold) or might get a lot more expensive (sugar, buckwheat, sunflower oil).
Belarus lives beyond its means. Foreign debt skyrocketed from zero in 2006 to $10.6 billion dollars in March 2011. The government has ruled out a devaluation, which the IMF believes is a vital step.
It looks like Moscow is in control. It promised loans ($3 billion) but is in no hurry to pay them. First the Kremlin gave Minsk 10 days (!) to bring forward a plan for economic reforms. Now this document is being studied. Is Moscow expecting Belarus to give it carte blanche to buy the family silver (Belarusian chemical and machinery plants, oil refineries)? Russian businessmen have wanted this for a long time but could not get access.
Meanwhile, Russia is to raise its gas price for Belarus. It used to be $187 dollar per 1.000 cubic metres in 2010, $223 at the beginning of 2011 and will now be $244.7.
One sign that Belarusian authorities are once again putting their hope in the West is the release of a number of detainees from KGB detention centres considered by the EU to be political prisoners. Their charges have not been dropped but10 of them now face three instead of 15 years in jail. The official story is that this is the result of the investigations.
The two main sources of stability for Belarusian authorities have always been cheap Russian gas (for whatever reasons) and the trust of the wider public (for whatsoever reasons). The lack of the first asset shows the instability of the latter. And this at least is logical.