Belarus Stands to Gain from Dispute with Russia

First, this is the first genuine case of Russia yielding gas deliveries as a policy tool in relations with neighbouring states. The earlier cases were directly linked to the signing of new contracts and price bargaining, whereas the current sending of the gas debt bill is hardly disguised by the Kremlin itself as a way of making Belarus toe the line on the tripartite Customs Union with Kazakhstan. The Belarusian government argues that the current Customs Union charter favour Russian producers and seeks equal rights for the Belarusian companies, thus halting the kick-off of Moscow’s most ambitious economic project to date.

Second, Belarus is taking a new stance. Instead of being a victim of Russia’s energy cut, the government has stood up to the Kremlin’s act and produced their own bill to Russia, for gas transit to Europe, and also stood by it, cutting deliveries to Europe. Such a challenge of Moscow on equal terms may bounce back for Belarus in unsubsidised energy prices. Yet, the military and other assets of Belarus that are of interest to Russia will continue giving Minsk a fair bargaining position vis-à-vis Moscow.

As regards relations with the EU, Belarus is taking a big gamble. Whilst being the very country to cut gas deliveries, they try to pass the blame on Moscow and offer cooperation in other areas as a symbol of departing from Russia’s orbit. The EU, however, prefers to stay out of the debate to the largest possible degree.

Finally, Belarusian president Lukashenka is handling the crisis in a way that should help his re-election in February 2011. The conflict context is perfect for him to revoke his image of the saviour and defender of the Belarusian nation, which he .does with regard to securing the rights of the producers within the Customs Union and demanding transit payments for gas.

The whole conflict puts Belarus again on the news map which is ultimately useful for the country.