The European Bank for Reconstruction and Development has turned its back on Belarus. It has not approved any Belorussian project since the beginning of 2010.
The European Bank for Reconstruction and Development is one of the largest investors which both allocates its own money and draws considerable volumes of direct foreign investment. The main aim of the EBRR is to help private enterprise in 29 countries of Central Europe and Central Asia. Investments go to new businesses and to already existing companies.The bank has been cooperating with Belarus since 1992 and for this period has invested over 300 million euros in Belorussian economy. Last year became a real breakthrough, the EBRR took part in a record number of projects. And now a U-turn. For the last 7 months, the bank has not supported a single Belorussian company nor has helped with private investment. If in case with private investment the fault can be placed by the door of the world crisis, such a large financial institution as the EBRR cannot be unmotivated by the crisis only. Here the problem lies on the political level, says Dmitry Orlov, the General Manager of the Political and Economic Communications Agency.
"Lukashenko's policy, which is a policy of manoeuvring between the EU and Russia, has reached a deadlock. He is trying to whip up the rates by scandal and aggressive dialogues. He is trying to improve his rating in the West with more and more aggressive policy in relation to Russia. But the West is not in a hurry to open its arms for Lukashenko".
The situation will grow worse in future. The western partners expect measures that Belarus is not ready for today, notes Dmitry Orlov.
"The West expects more active cooperation in the sphere of foreign policy, changes in the economic, in particular, the investment climate, and changes in the political situation in the country. This liberalisation prompted by the EU is against Lukashenko's interests. He is in a blind alley at present and the policy of aggressive manouvres is to end in a crisis".
The decision of the EBRR to freeze cooperation with Belarus is a sign that western investors are not interested in taking part in political games.