Russia is providing Belarus with a $2 billion loan in an effort to ensure the stability of the Baltic country’s economy during the current global financial crisis.

The former Soviet republic is not the only one to have received a loan in the past several weeks, in order to help it through the global recession. Both Iceland and Hungary were given billions in aid from the International Monetary Fund, with the latter receiving a record breaking $25 billion.

The Belarusian economy is still in a period of transition, even as all other Eastern European countries have long made the switch to capitalist, free market systems.

Private ownership in Belarus remains restricted and foreign investment, thus far, has been limited. This, however, may soon change, as the government in Minsk will be compelled to introduce economic reforms and a degree of liberalization if it wishes to receive funds from the IMF.

According to an Associated Press report, officials from Minsk are requesting that the IMF top up the funds received from Russia with an additional $2 billion in aid, so that they can be more successful in stabilizing the economy.

Funds from the IMF are widely seen as a good route for Belarus to take, as it might balance out the country’s heavy dependence on Russia, which will now be cemented by the $2 billion loan.

Experts note that Minsk remains entwined with Moscow and much of this has to do with the heavy influence that the latter exerts through oil and gas related ventures.