Russia's largest bank, Sberbank, has secured a 35 percent stake in Belaruskali, Belarus' potash giant and a critical part of the country's economy, as collateral for a $2 billion loan to the firm. Moscow has wanted stakes in several companies, but it has wanted stakes especially in Belaruskali and Beltranzgaz, the state energy firm. The Kremlin sees Belarus' current financial woes as an opportunity to gain some of its neighbor's most strategic assets and limit Belarusian President Aleksandr Lukashenko's room to maneuver. Belaruskali is the easier of the two for Moscow to attempt to take, since it is in the worst shape financially and Russia's Gazprom already owns 50 percent of it. Russia has made other loans to Belarus amid Minsk's dire financial difficulties. Over the past few months, Belarusian state-owned banks have been downgraded, inflation has risen quickly, and the Belarusian central bank has faced shortages in cash and in foreign exchange reserves. Belarus requested $8 billion from the International Monetary Fund, but any such assistance would have too many conditions attached for Minsk's liking. Belarus secured a $3 billion loan from Russia's Eurasian Economic Community, $1 billion from Russian oligarch Suleiman Kerimov (who dominates Russia's potash sector) and another $1 billion from the Russian government (most likely also via Sberbank). It is widely known that this assistance would have conditions; Russia specifically said the privatization of many Belarusian companies, including some of the state's most strategic assets, would be expected in exchange. Sberbank thus far is only using stake in the firm as collateral; it does not fully own it. Sberbank has been very cautious about the assets it picks up as it undergoes its own privatization while making some large purchases in Europe and in Commonwealth of Independent States members. Also, the price tag Minsk has put on Belaruskali is an exorbitant $30 billion, a price no one — especially the wary Sberbank — wants to pay. Instead, Sberbank chief German Gref is turning Belarus' financial situation into political gains for the Kremlin without overburdening Sberbank. The bank's hold on Belaruskali as collateral will give the Kremlin time to plan on whether it wants to take the to-be-privatized stake in the firm and sell it to one of their own, like the oligarch Kerimov, or to another interested party, like India or China, in exchange for some concession. Sberbank's hold will also allow Russia to ensure that Minsk does not try to go behind Russia's back and make a deal with another party for the stake in Belaruskali. Russia will also want to use the stake in Belaruskali to pursue its other interest: picking up other pieces of firms in Belarus' upcoming privatization. Beginning Sept. 6, Belarus will begin privatizing some 244 smaller companies with a goal of raising approximately $7.5 billion. Sberbank will facilitate and oversee the entire privatization program. Russia is the main contender for acquiring privatized firms. Belarusian Prime Minister Mikhail Myasnikovich has already said he wants Russia to be the most active participant in the privatization plan. He also said he would like Kazakhstan to take an active part so that the privatized pieces will at least remain inside the Russia-Belarus-Kazakhstan Customs Union. Germany is now among the parties expected to take part in Belarus' privatizations. Germany's Deutsche Bank is collaborating with Sberbank on the $2 billion loan to Belaruskali. STRATFOR sources have said Berlin is already in talks with the Russians — not the Belarusians — about what they can pick up during the privatizations. Germany is already the largest foreign participant in Russia's privatization program and is very close to Moscow politically. Thus, Russia would not mind seeing Germany take part in the Belarusian program, as it will have fewer political demands than some other Europeans might — especially those who do not want to see increasing Russian influence in Belarus.