The crisis that has been beating Belarus for weeks shows no sign of abating. The National Central Bank announced today that from Tuesday the Belarusian ruble will be devalued by 36%, reaching 4930 rubles per dollar. The measure is necessary to deplete the country's foreign currency reserves, but the exchange rate will not yet be allowed to float freely. The unofficial quotation on the interbank market today fluctuates between 6400 and 6800 rubles per dollar.
President Alexandr Lukashenko, described by former US Secretary of State Condoleezza Rice as "Europe's last dictator", can hope for Russian support to get out of the crisis before it slips out of hand and turns into a popular insurrection.
In exchange for $3 billion in aid from Moscow, Prime Minister Myasnikovich said the country was ready to transfer $2,5 billion worth of Beltransgaz assets to Russia. The state-owned company operates pipelines serving Poland and other Western European markets.
Long lines at banks have been observed in the center of Minsk in recent days. Those who have a current account try to run for cover and change their savings into dollars. An operation which, however, can take more than twenty-four hours. Even in shops, rationing is being used, given that the currency crisis has brought the import sector to its knees.
In the background, the numerous arrests that after the presidential elections of last December hit the activists of the pro-Western democratic opposition. On May 14 Andrei Sannikau, leader of the dissent against Lukashenko, was sentenced to five years in prison for "organizing public disturbances". (fs)
