Belarus' Economic Troubles and Regional Implications

As Belarus continues to struggle with inflation, foreign exchange reserve shortages and downgraded credit ratings for state-run banks, its political and economic isolation from the West has left it little option but to turn to Russia for assistance. However, this help will come at a steep price, and Moscow has made clear that it is looking to increase its stake or purchase outright several key state-owned companies, most significantly in the energy sector. This increased leverage over Belarus could have serious implications for the region, especially for Poland and the Baltic states, which depend on Belarusian energy infrastructure for their natural gas supplies.