Fractious Friends

On July 17, the Belarusian Ministry of Emergencies ordered a pipeline carrying Russian diesel fuel to the EU via Belarus to be closed down. The ministry cited safety concerns, stating that the pipeline's Russian owners had carried out insufficient maintenance. This occurred the day before President Alexander Lukashenko snubbed the Kremlin by attending a Belarusian bikers' rally rather than Russia's Presidential Cup horse race. Moscow responded by banning a number of Belarusian meat imports. However, on July 23, Minsk moved to sooth ties by saying that it backs the Russian meat ban on health grounds, and reopened the diesel pipeline. Meanwhile, Belarusian CPI growth fell to 13.4% y-o-y in June from 13.6% the previous month. This was the lowest inflation rate seen thus far in 2009, although it remains slightly higher than the 13.1% price growth seen at end-2008.

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