Putin calls for decision on single currency with Belarus

Russian Journal ^ | August 11, 2003

[RussianConservative]

MOSCOW - President Vladimir Putin said Monday that a final decision must be made soon on long-standing plans to use the Russian ruble as the single currency in Russia and Belarus, an issue that has raised tension between the Slavic neighbors despite years of calls for closer ties.

Putin told Russian Cabinet members that he and Lukashenko would soon set a date for a meeting to discuss the single currency issue. "We have reached the point when it is necessary to make a final decision," Putin said in comments broadcast on state-run Rossiya television.

Russia and Belarus signed a union treaty in 1996 envisaging close political, economic and military ties, but they stopped short of creating a single state and have made few concrete moves toward integration.

Last January, Putin and Lukashenko vowed to push ahead with existing plans to create a constitution-like document for the union and to establish the Russian ruble as a single currency by Jan. 1, 2005.

But tension between the two presidents and fears in Minsk that Belarus would be less independent if Russia controls the single currency have become stumbling blocks. Lukashenko, an authoritarian leader who is trying to maintain firm control over his nation and its economy, has hesitated on the single currency issue.

In June, Lukashenko said both countries may still decide not to introduce a single currency and demanded equal power on a joint council that would oversee how the money is issued, saying that if the demand was not met he would "never agree" to a single currency.

Lukashenko, who for years scored points with voters nostalgic for the Soviet Union by championing a union with Russia, has backed off on such calls and stressed the importance on Belarusian sovereignty since Putin angered him last year by suggesting a scenario in which Belarus would essentially be carved up and subordinated to Moscow.

[.cnI redruM]

This reminds me of the old bi-metalism debate in the US.

"You shall not, will not, cannot crucify mankind on a cross of gold." - William Jennings Bryant.

[Sender]

What is Lukashenko afraid of? For heavens sake, they had to revalue Belarusian rubles at 1 new ruble for 1000 old ones just so you wouldn't need a suitcase instead of a wallet. Still its value is tiny and volatile compared to Russian money. Adopting the Russian ruble would be the best thing to happen to the Belarusian economy in a long time. This must just be Luka stubbornness.

[RussianConservative]

You see he all for unification when Yelstin sick...he see self as new and upcoming Stalin incharge of new empire and as Yeltsin successor...then comes along Putin, young, fit and popular and Luko absolutely no chance of successor...Putin hates Luko. So problem is: 1. no one wants Belasruss as friend and 2. Belaruss economy collapse if it pays for own oil/gas which now Russia pick up tabs for. So Luko rather screwed...most peoples want unification...but what ole Luko to do? If he unifies his career over if he doesn't and Russia shuts oil down his career and life over.

[Tokhtamish]

For the moment an 'independent' Belarus is useful because if the Russians directly absorbed it, that would send mighty shock waves through Kiev, Warsaw, Riga, and Vilnius. Now would be premature.

Russia is coming back. It always does.

[RussianConservative]

That's ok, to deal with Warsaw or Riga, no longer talk to them but to their new masters in Brussels....Belgiums will sell out these fools much cheaper then if dealing directly with them. As for Ukraine...heeheheheh, it can't even feed self.