BELARUS NEWS AND ANALYSIS

DATE:

02/01/2007

Lithuania predicts change in Belarus' economy, policies

VILNIUS. Jan 2 (Interfax) - The outcome of the Russian-Belarussian talks on the price for natural gas shipments will have a strong impact on Belarus' policies, said Lithuania's Prime Minister Gediminas Kirkilas.

"Belarus will inevitably start changing and its economy will have to get adjusted to a new environment. Energy and economic challenges normally affect politics, so change is imminent in Belarus in my opinion," Kirkilas said on national radio on Tuesday.

Belarus' economy up until now has relied on low prices for the energy provided by Russia, Kirkilas said, adding that a nearly 100% rise in the price for gas "may cause tensions in Russian-Belarussian relations to increase."

"It will be a serious challenge for the Belarussian economy," he said.

Vilnius was deeply relieved to learn that Russia and Belarus had signed a gas deal, said Kirkilas.

Source:

http://www.interfax.ru/e/B/0/28.html?id_issue=11656456