Myasnikovich is lobbying Russian interests

On the eve of President Lukashenko’s urgent visit to Sochi, Prime Minister Myasnikovich entered the Belarusian-Russian negotiations on Moscow’s side. Nevertheless, it was hardly the PM’s initiative: privatization and investment issues are entirely under the President’s control.

On September 14^th, Prime Minister Myasnikovich said that in 2013, Belarus will give priority to Russian investors while implementing the National Investment Programme for at least USD 4.5 billion

Such a frank statement by Myasnikovich before Lukashenko’s visit to Sochi on 15 September,- a visit of great importance for the Belarusian economy – was yet another move in the complex Belarusian-Russian negotiations. It is highly unlikely that Myasnikovich did not agree his statement with the President in advance: otherwise he would be looking at near retirement. Myasnikovich’s statement allows Minsk to make promises without obligations, exercising “good faith”.

With the acute financial situation, and the final stages of the elections campaign in sight, President Lukashenko was forced to make a difficult decision in Russia’s favour. The situation is similar to the one before the elections in 2010, when he signed the agreements on the Common Economic Space.

It is likely that this time round, the decision will be to transfer control over the Belarusian Potash Company to the Russian company “Uralkali”. In particular, on September 13^th, Belarusian state TV Channel broadcasted a show about privatization, with obsessive visuals from the “Belaruskali” mines. Also as a result of negotiations for a new potash trader “Soyuzkaly”, Russia will get to own the majority of stakes.