Although Belarusian and Russian officials have reportedly agreed on the future of energy trade between Minsk and Moscow, the country’s leaders are expected to make final decisions on the matters that are very sensitive and painful, especially for Belarus. Given that Lukashenko’s position has been weakened following the post-election turmoil, he will now have to make significant compromises to the Kremlin.
Before the political crisis that hit Belarus in August, Russia firmly insisted on Belarus’s deeper integration into Russia – the Belarus Union State – in an exchange for cheap natural gas and oil supplies. Since Lukashenko felt compelled to play the Russian card, Moscow will likely provide just a symbolic discount for its energy, and the Belarusian leader will have to agree on all of the Russia’s terms regarding both the energy trade and the Union State. According to Russian Energy Minister Alexander Novak, the oil and gas prices are set taking into account the market situation, and the pricing formula will remain unchanged. In other words, Belarus could even pay the old oil and gas price, if Lukashenko and his Russian counterpart Vladimir Putin do not make a long-term deal in Moscow in the next few weeks.
Belarus is supposed to receive 24 million tonnes of Russian oil in 2020 and as much in 2021, but if the Kremlin does not provide a significant discount, the Belarusian economy could be in trouble. Given that the Baltic countries – Lithuania, Latvia and Estonia – have imposed sanctions on Belarus, Minsk will now have to export its products via Russian ports, which will make the country even more dependent on Russia.
It is worth noting that Moscow is reportedly supporting the Belarusian economy with $4 billion annually by providing various subsidies. Since, as the saying goes, there is no such thing as a free lunch, Belarus will likely have to make additional concessions to Moscow in order to keep getting financial support. Or it already made some – Lukashenko recently replaced his security chiefs, and there are indications that the replacement was done under pressure from Moscow.
Besides energy, security issues are expected to be on the top of the agenda during the upcoming talks between Lukashenko and Putin, as the countries’ defence ministers are expected to “prepare the road map talk”. It’s possible that Belarus will have to agree on hosting another Russian military facility – something Lukashenko strongly opposed just a couple of years ago.
Finally, Putin and Lukashenko have already reportedly agreed that Belarus would be among the first foreign countries to receive the Russian coronavirus vaccine, which means the Belarusian leader has fundamentally changed his Covid-19 policy. It is worth remembering that “the last European dictatorship” was the only country in Europe, besides Sweden, that did not impose a state of emergency, did not practice social distancing, and did not implement the strict measures that locked down the rest of the continent this spring. Lukashenko even called the coronavirus “a psychosis” and said “it’s better to die standing on your feet than to live on your knees”, defending his Covid-19 policy that even Russia heavily criticised.
Even though the opposition did not manage to overthrow Lukashenko, changes have come to Belarus nevertheless. The country will now have closer ties with Russia than ever before.
Nikola Mikovic