The isolation of Belarus dictator Alyaksandr Lukashenka’s regime is intensifying. Belarusian diplomats are being expelled from Western countries and more face ejection. Major European companies are enduring fierce criticism for doing business in Belarus and are under increasing pressure to divest. And allegations are surfacing that Lukashenka misappropriated European Union funds.
The United States and the European Union meanwhile, continue to ramp up their sanctions regimes, although for the time being, these are largely focused on individuals. But calls are growing louder on both sides of the Atlantic to broaden and expand sanctions to include major companies.
Opposition leader Sviatlana Tsikhanouskaya has called for sanctions on the Belarusian state-controlled potash producer Belaruskali, which is a major source of revenue for the Lukashenka regime and controls about one-fifth of the global market. Recent revelations that the company has been selling potash, a key ingredient in fertilizer, below the market price in China and India have led to allegations of dumping. This is further intensifying calls for sanctions, particularly in potash mining US states like New Mexico.
But expanding sanctions to include large state-run firms like Belaruskali is not without risk. Kremlin-backed oligarchs and businesses are seeking to leverage the crisis in Belarus to snatch up troubled industrial assets in the country and expand Russia’s footprint and political influence there.