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CHAIRS SHARED, PURSES SEPARATE

05 October, 00:00

Boris Yeltsin and Alyaksandr Lukashenka agreed on the developed draft treaty creating a union state of Belarus and Russia. The draft is soon to be released for nationwide discussion.

Its author's say that the new formation can hardly be called a united state. The most problematic point in developing the treaty was distributing the chairs. The Belarusian President proposed various options which would extend his own powers into Russia. He was ready for both direct presidential elections, and to become Yeltsin's Vice President. However, the team of the Russian patriarch has rigidly outlined Lukashenka's action field by the Belarusian boundary. The united state will not have a single head, however, formally there will be such a title, which will be passed from one president to the other. In fact, the Belarusian President is already Chairman of the Supreme Council of the Commonwealth consisting of the two states, that is, the head of state, but in reality it does not mean that he has jumped to Yeltsin's perch.

The political disappointment, which Alyaksandr Lukashenka did not conceal, is to be offset by certain material comforts — the treaty is supplemented by a schedule: what should be expected and when with a yearly breakdown. The list of promises includes single prices for raw materials, including oil and natural gas, uniform transport tariffs and other amenities, which according to the treaty authors will create equal conditions for Belarusian and Russian enterprises. For the time being, the VAT is being rescinded in the declared customs union. Independent Ukraine seems to have outdistanced its Slavic sister by already removing this trade barrier with Russia. Belarus is looking with apprehension at all those privileges which moreover require changes in Russian laws.

However, the country has some tangible benefits from its pro-Russian policy — since last spring Minsk has been paying only a little over half as much as Kyiv pays for natural gas. In addition, electricity charges have been reduced. And, in line with tradition, every new Russian Premier makes his first visit only to Minsk, which always grows into an act of brotherhood but far less often leads to economic solutions.

Thus far, Minsk and Moscow have never been able to divide up the purse — the bankers failed to solve the puzzle of how to introduce a single currency and a single mint, while retaining Belarusian sovereignty. The Bank of Russia has agreed to let Belarus in, but warned its allies to expect a shock. In order to avoid such a shock, the National Bank of Belarus, which has been actively printing Belarus rubles, demands that a monetary committee be created, in which the votes would be distributed equally between Minsk and Moscow. Perhaps the insoluble problem of the financiers will be solved by the peoples during the nationwide discussion. Meanwhile, Belarus has launched a five million banknote worth of about $10 — since the beginning of the year inflation has exceed the 100% threshold, but pensions are paid regularly.

As always, the Belarusians are absolutely quiet about every new reunification — the pompous signature of one document or another has been taking place with enviable regularity. Yet the current festivities are marred by the political decor of their ally: blowing up buildings, waves of terror, missile strikes against Grozny, and financial scandals. Even such faithful devotees to the Slavic idea might begin to think whether they need such a union.

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