BELARUS NEWS AND ANALYSIS

DATE:

06/10/2008

President Lukashenko urges boost in Belarus-Russia relations

MINSK, October 6 (RIA Novosti) - The president of Belarus said on Monday that he wanted to see a significant development in bilateral relations between his country and Russia before the yearend.

"We need to raise to a new level our union relations before the yearend. We need to develop several or at least one program that will allow relations to significantly improve," Alexander Lukashenko said at a meeting with Russian Prime Minister Vladimir Putin in Minsk.

The Russia-Belarus Union State is a supranational entity consisting of the Russian Federation and the Republic of Belarus. It was formed in 1996 "with the intention of providing greater political, economic, and social integration."

Lukashenko said that relations are currently developing in a relaxed manner, but people "expected some definite action from us."

Putin, who is currently heading a Russian delegation to Belarus, said that Russia is ready to provide assistance to Belarus' financial system if required.

Russia, he said, "is ready to consider the issue of broadening cooperation and supporting the Belarusian financial system."

In addition to Union relations, Putin, who arrived in Minsk on Monday, is also set to discuss Russian gas prices and a new loan to Belarus.

Gas has been a point of concern in bilateral relations since Russia moved to market prices for its energy supplies. The gas price for Belarus is the lowest among all the former Soviet states.

Russia's natural gas price for Belarus is due to rise to over $200 per 1,000 cubic meters in 2009, up 67% from $119 in the first quarter of 2008.

According to a contract signed in December 2006 with Belarus, the price for Russian gas is scheduled to increase to 80 % of the price paid by Europe in 2009 and 90% in 2010.

Trade between Russia and Belarus in the first seven months of 2008 increased 60% year-on-year, reaching $21.5 billion.

The Russian delegation to Belarus also includes First Deputy Prime Minister Igor Shuvalov, Deputy Prime Minister and Finance Minister Alexei Kudrin, and Energy Minister Sergei Shmatko.

Source:

http://en.rian.ru/world/20081006/117472530.html

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