Friday, 2 January 2009

GazProm saga continues...IMF extends loans...Rouble Devaluation Results

Gazprom accuses Ukraine of stealing gas.

In the supply dispute of 2006 there were similar claims.

25% of EU gas consumption (it is estimated) comes from Russia. 80% of the 25% comes from Ukraine, the rest through Belarus (landlocked country south of Lithuania) and Poland.

Belarus also landed a $2.5bn loan from the IMF following a sharp decline in its international reserves, sparked by falling demand for exports and lack of external financing (a direct result of the global financial turmoil). The Central Bank of Belarus allowed the Belarusian rouble to tumble thus increasing competitiveness of exports and stemming the decline in reserves, something the IMF insisted on as a precondition for the loan. Earlier the Russian government had agreed to grant Belarus a $2bn stabilization loan.

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