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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Belarus comes in from the cold

Row with Russia leaves large hole in the country’s current account.

Every cloud has a silver lining, or so the saying goes. For mandate-hungry investment bankers desperate to secure another multi-million dollar year-end bonus, the political woes of Belarus could yet prove to be an unexpected source of much-needed business in 2007. Not so much a silver lining then, more a gilt-edged opportunity.

The economic fallout from the spat over oil and gas prices between Belarus and Russia means that the authorities in Minsk are now facing up to the prospect of plugging a hole in the country’s finances with the help of funding from their one-time ideological foes in the west.

According to recent research by RZB economist Gerhard Lechner, the hike in prices demanded by Russian state gas company Gazprom – $105 per 1,000 cubic metres this year compared with just $47 in 2006 – will result in Belarus’s current account deficit ballooning from an estimated 2.1% in 2006 to a forecast 6% in 2007. Such a level would cause a sharp depreciation of the Belarusian rouble if the government of president Alexander Lukashenko were to fail to secure additional funds to prop up the former Soviet republic’s finances. Lechner believes the Belarusian rouble could drop by around 10% this year and by a further 10% in 2008.

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 access below.


Unlimited access to and

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

£73.75 per month

Billed Annually


Unlimited access to and, 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


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