The Milk War was a trade conflict between Russia and Belarus in June 2009. Although Russia and Belarus have close relations, the conflict stemmed from Russia allegedly attempting to loan Belarus US$500 million to recognize the independence of Abkhazia and South Ossetia. Russia also expressed its interest in privatizing the Belarusian milk industry. Belarus responded by seeking negotiations with the European Union on certifying Belarusian milk according to EU regulations. Russia then banned the import of dairy products from Belarus, citing alleged health concerns. The trade conflict ended on June 17, 2009, when Russia announced that it would lift the ban. Later in 2009, Belarusian president Alexander Lukashenko expressed regret for not supporting Russia in recognizing Abkhazia and South Ossetia. The Belarusian House of Representatives sent a fact-finding mission to the disputed regions to study whether or not Belarus should provide diplomatic recognition. Georgia protested the mission and urged Belarus to maintain non-recognition. Russia threatened another Milk War in 2013, and has reimposed temporary bans on Belarusian dairy products since. Bans were in place in June 2017, and from February 2018 until being mostly lifted in May 2019. Russian concerns include international sanctions that supposedly allow Belarus to take advantage of the market by producing products of inferior quality. In turn, Belarusian producers claim that Russia has imposed harsh obstacles on them. Belarus has objected to these trade wars, stating that they contribute to the country's international isolation.
Background
Belarus and Russia are two post-Soviet neighbors which are linked through a special treaty of alliance. Tensions between the two began in late 2006, with rising gas prices from Russia and Belarus beginning to reconcile with the European Union (EU). Belarus joined the Eastern Partnership, an initiative to improve economic and political relations between the EU and six post-Soviet states. The EU lifted its travel ban on Belarusian President Alexander Lukashenko, despite maintaining the position that the 2006 Belarusian presidential election was rigged. Following the 2008 Russo-Georgian War, Russia recognized the disputed regions of Abkhazia and South Ossetia independence. Belarus was pressured to recognize Abkhazia and South Ossetia as independent states. At the time, only Russia and Nicaragua had extended diplomatic recognition to Abkhazia and South Ossetia. Belarus did not recognize Abkhazia or South Ossetia and began negotiations with the United States to release political prisoners. At times of strained relations, Russia has previously banned meat products from Poland, wine from Moldova, canned fish from Latvia and most agricultural products from Georgia.
Trade dispute
Putin's visit to Minsk
On May 29, 2009, Russian Prime Minister Vladimir Putin visited Belarus's capital Minsk and offered the final US$500 million of a $2.4 billion loan under the condition that the loan would be paid in Russian rubles. Lukashenko claimed that the loan was offered on the condition that Belarus would recognize Abkhazia and South Ossetia as independent. Russian officials denied this and froze the loan, with Russian politician Alexei Kudrin expressing concerns by claiming that Belarus could not afford to be economically independent by the year's end. Frustrated by being economically dependent on Russia, Belarus refused to take the loan. Following the cancellation of Russia's loan, Belarus secured a $1 billion loan from the International Monetary Fund. During the visit, Russia also sought to have major Belarusian dairy producers privatized. Belarus responded immediately by beginning negotiations with the EU on certifying Belarusian milk standards according to EU regulations. Russia reacted by sending health inspectors led by Chief Sanitary Inspector Gennady Onishchenko, who was previously responsible for banning food items from other post-Soviet states. Onishchenko claimed that Belarusian dairy products lacked proper certification and advised Russia to ban all related imports. Russian media began broadcasting the claims that Belarusian dairy products were a health hazard.
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