However, with the nomination by Yeltsin, on December 31, 1999, of Vladimir Putin as acting president of the Russian Federation, Lukashenko knew that his ambitions were definitively blocked. Reluctant to become the local satrap of the new Kremlin boss Lukashenko resisted any infringements on Belarusian sovereignty, even after Russia continued to support the economy of his country with generous subsidies. The Russian energy subsidy equalled 14 percent of Belarusian GDP and Belarus was able to buy Russian oil dutyfree, to refine it, and to sell the products on the international market.
[8] Putin’s generosity was not without a price. In 2003 he revealed his annexationist agenda when he proposed a fully fledged merger of both states. The proposed model, wrote Dmitri Trenin, was “essentially,Despite the reassurances given by Dmitry Medvedev the fears of Belarus of being absorbed by its big eastern neighbor were well founded. This became clear not only from Putin’s annexation proposal of 2003, but also from declarations by Russian politicians and political experts. Pavel Borodin, the state secretary of the Union State and a former member of Yeltsin’s presidential administration, for instance, said that “it would be counterproductive to scrap the Union State due to the recent political disputes between Moscow and Minsk,” adding, “we are the same people. We have lived together and will continue to live together. We are one country.”
[15] Also President Medvedev continued to express himself ambiguously in his personal blog. He not only called Belarus “the closest of its neighbors,” united with Russia “by a long shared history, culture, common joys and grief,” but added: “We will always remember that our people—I am tempted to say ‘our one people’—endured great losses during the Great Patriotic War.”[16] It could, indeed, be questioned why the “same people” or “our one people,” constituting “one country,” would need to have two separate national governments. Yuri Krupnov, a Russian political analyst nostalgic of the Soviet past, openly pleaded that the Union State should, ultimately, encompass the