The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Belarus faces a funding conundrum

The Ukrainian crisis has come at a bad time for Belarus’s state-driven economy, already in urgent need of external financing to fend off a balance-of-payments crisis.

In the months since the annexation of Crimea, the likely impact of Russia’s actions – and the western sanctions imposed in response – on its own faltering economy has been exhaustively discussed. Yet the potential knock-on effect of the crisis on Ukraine’s northern neighbour, Belarus, has been almost entirely ignored.

This is perhaps unsurprising, given the reluctance of authoritarian president Alexander Lukashenko to open his country up to private-sector – and especially western – investment. Twenty-three years on from the demise of the Soviet Union, the state still controls more than two-thirds of Belarus’s economy, while Russia remains the country’s key trading partner and main source of external investment.

This means, however, that Belarus is uniquely vulnerable to any further slowdown in Russia, particularly given the country’s own economic weakness. Even before theUkrainian crisis, researchers at VTB Capital were predicting GDP growth of just 1.7%

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of acces below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£68.33 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree