Money Wars in Belarus

In addition to enacting a harsh crackdown on civil society activists and independent journalists, Belarus dictator Alyaksandr Lukashenka is now also going after their money.

Since the beginning of this year, Belarusian law enforcement have raided journalists’ homes or offices 107 times according to the Belarusian Association of Journalists. Since July 8 alone, 63 raids have been conducted and 33 journalists remain incarcerated. 

And this week, at least three civic organizations (the Belarusian Association of Journalists, the charitable foundation Imena, and the Belarusian PEN Center) had their bank accounts frozen.

The crackdown on NGOs and media and the freezing of their accounts came just weeks after Lukashenka issued a decree giving the Belarusian National Bank sweeping powers over foreign currency exchange.

According to the July 9 decree, the National Bank has the right to prohibit the sale and purchase of foreign currency, confiscate euros and US dollars and unilaterally convert them into Belarusian rubles, and restrict the right of Belarusian residents to open and maintain foreign bank accounts.

The powers would come into force in the event of a “threat to national security,” if foreign exchange reserves “fall below a permissible level,” or in the event of “sharp fluctuations” in the Belarusian ruble’s exchange rate. The decree, which expands on an edict Lukashenka issued in April 2021, does not provide specifics on these conditions, giving the authorities broad powers to impose the currency restrictions at their own discretion.

The new currency rules come as Western sanctions have effectively cut Belarus off from Western capital markets and other key sources of foreign exchange earnings. But they also provide a political weapon that can be deployed against the opposition, civil society organizations, and journalists.

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