Russia's state electricity monopoly InterRao cut power
supplies to cash-strapped Belarus on Wednesday over $43 million of
unpaid bills, deepening an economic crisis that has eroded support for
the country's authoritarian president, Alexander Lukashenko.
Electricity exports stopped at midnight June 29, InterRao said, adding
that it was still awaiting payment of the debt. Belarussian Economy
Minister Nikolai Snopkov said the country intended to pay the bill,
without specifying when, Russian news agencies reported.
Deliveries from Russia represent around 10% of the total electricity
used by Belarus, analysts have estimated.
Russian Deputy Prime Minister Igor Sechin said Tuesday there was no
"political sub text" in the move, and that talks between the two sides
were continuing. But Russia --in the past a key sponsor and ally to its
smaller Western neighbor--has been eyeing key Belarussian assets,
including the country's oil transit pipeline network and its largest
potash producer Belaruskali, which Minsk may have to sell to stabilize
its economy.
Belarus--which devalued its currency by 36% in May as it struggles with a
gaping trade deficit--earlier this month received the first $800
million tranche of a $3 billion loan from a Moscow-led bailout fund.
Analysts say the cash won't be nearly enough to see the country through
its worst crisis, and Minsk has turned to the International Monetary
Fund, requesting a loan of up to $8 billion.
The crisis has stirred popular discontent against Lukashenko, who has
been quick to crush opposition during his 17-year reign, with police
dispersing weekly rallies protesting the state's economic policies.
Activists planned to take to the street's again in Wednesday, local news
agencies reported.