Putin Pushes Ahead With Belarus Loan as Tensions Grow With West

Russia will release $500 million from a previously agreed loan to Belarus after talks between the country’s leaders, in a sign of support for its closest ally after the forced landing of a Ryanair Holdings Plc jetliner and the arrest of a dissident sparked a new wave of tensions between Minsk and the West.

Vladimir Putin and Belarusian President Alexander Lukashenko discussed the plane incident in detail during “quite constructive” talks Friday and Saturday, Kremlin spokesman Dmitry Peskov said on a conference call. He dismissed the European Union’s reaction -- including a recommendation to airlines to stop flying over Belarus and plans for new sanctions on the country -- as “based on emotions.”

Russia will look for ways to expand air service with Belarus to make up for some of the routes affected by the EU’s limits on Minsk’s state airline, Peskov said.

Putin Pushes Ahead With Belarus Loan as Tensions Grow With West

The $500 million -- to be released in the near future -- is part of $1.5 billion in loans that was agreed last year and had been expected by the end of next month. Lukashenko didn’t ask for further assistance, Peskov said, but the two leaders did discuss closer tax and customs cooperation.

In their second day of talks, they went sailing on the Black Sea, Peskov said.

The U.S. administration announced it would re-impose sanctions against nine Belarusian state-owned enterprises late Friday, and is developing additional penalties to target government officials.

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