By William Stroupe

The European Union has lifted sanctions against 170 individuals and 3 companies in Belarus on February 25 in recognition of the country’s progress on human rights. Included among those who benefit from removal of travel restrictions and asset freezes is President Aleksandr Lukashenko, widely known as “Europe’s last dictator.” The EU established the sanctions regime in 2004 following fraudulent elections which kept Lukashenko and his supporters in office. The regime has fluctuated—mostly expanding—over the last decade. The state sanctions were finally lifted in response to the release of all political prisoners in 2015. However, both Lukashenko and the EU have been making modest progress toward warmer ties in the wake of a Russian regime which has become increasingly aggressive and unpredictable militarily as well as politically and economically. The EU has said its arms embargo will remain in effect along with sanctions on four individuals accused of involvement in the disappearance of opposition politicians.

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March 23, 2016

By April Kent

The European Union is preparing for a four-month suspension of sanctions on Belarus, officials announced on Friday. This move comes in the wake of shifting perceptions of Belarus’ President Lukashenko, known as Europe’s “last dictator” and a close ally of Moscow, following his decision to release six jailed political prisoners in August and hosting of peace talks for Ukraine in February. A formal decision will be made by October 31, barring any last-minute crackdown. As Lukashenko seems poised for re-election, the EU has emphasized that “the conduct of the elections will be an important factor” in the decision to formally lift sanctions. The newly gained access to European capital markets would help Belarus attract EU investment, cutting its dependence on Russia. Lukashenko is highly invested in boosting Belarus’ economy, which is exposed to the recession in Russia and shrank by 4 percent in the period from January to July 2015.

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October 13, 2015

By Joe Vladeck 

Russia's economy is stagnating, and domestic turbulence is not helping. 

The CEO of Uralkali, the world's largest potash company, is under house arrest in Belarus, even as the company is up for sale. Stocks in Tinkoff Credit Systems, a charge card company, modeled after Capital One, fell by 40 percent in a single day on rumors that its business model would be outlawed by the Russian parliament. And the Russian central bank just shut down a large retail bank, Master Bank, which counts among its board members a follower of Nicholas Roerich, a mystical guru and painter influential in early 20th-century Russia. 

These and other revelations are hurting Russian companies seeking to raise much-needed equity. Trading volumes are decreasing as foreign investors look elsewhere, increasing the volatility -- and the risk -- in a cycle that looks hard to break. Euromoney has the report.

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December 09, 2013

By Aliza Kempner

Tension surrounding trade conflicts between Russia and Belarus continues to blossom: this time surrounding the potash industry, a fertilizer whose high price worldwide has remained afloat courtesy of a Belarusian cartel. Pressures from either side have taken an ugly turn, with Russia most recently imposing a slew of trade restrictions.

While the dispute has hurt Russian and Belarusian profits, farmers from Idaho to India have benefited from lower fertilizer prices. Potash serves as one of three main ingredients in widely-used fertilizer for corn and soybean yields, and the price for granular potash in the Midwest has fallen to around $400 a ton, from $420.

The New York Times highlights the details of the hostility between the political leaders and explains the potential windfall to American farmers.

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September 21, 2013