Belarus Receives $1 Billion Tranche from Russia

One billion dollars has been transferred to Belarus's National Bank as part of the first tranche of a $2 billion stabilization loan issued by Russia, the bank's spokesman said on Wednesday.

"The funds have been transferred in line with an agreement between Belarus and Russia signed by Russian Deputy Prime Minister Alexei Kudrin and Belarusian Finance Minister Andrei Kharkovets," the spokesman said.

The second tranche is due to be transferred in 2009.

The deal was signed last Thursday, when the parties agreed to switch to rubles when trading in oil and gas.

In late 2007, Russia and Belarus signed an intergovernmental agreement to grant Minsk a $1.5 billion stabilization loan for 15 years. Belarus requested the loan from Russia to pay for energy supplies.