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Economy / Belarus

A Damaging Game

November 2006 | Economic Analysis

Of late, Russia has been exacting leverage over smaller CIS states by increasing, and threatening to increase, energy supply prices. A deal has recently been struck with Ukraine for a 40% rise, while Georgia is being threatened with a hike in excess of 100%. The proposed increase to Belarus (from levels similar to Russian domestic prices to a price more in line with that paid by EU consumers) is vastly superior to that imposed on other Russian dependants. The key issue at stake with gas price rises to Belarus is Russia's desire to gain greater control of transit pipelines, with

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