Belarus turns to EU as Russian ties deteriorate

"The European Union is new technologies, loan resources, investments," Lukashenko said after hosting Slovenian Foreign Minister Samuel Zbogar. Slovenia currently holds the rotating EU presidency.

Russia sees courting of the West by former Soviet satellites as a threat to its influence in the region. Observers say Lukashenko has played on that feeling in the intensifying quarrel between the two countries.

The dispute escalated recently when Russia withheld the last quarter of a $2 billion loan to Belarus. Lukashenko accused Russia of punishing Belarus for refusing to recognize the independence of rebel-held regions of Georgia.

Russia has denied any link between the loan money and Georgian territorial issues, saying the money was withheld for lack of currency agreements.

On Saturday, Russia _ by far Belarus' largest trading partner _ banned the import of Belarusian dairy products, citing technical reasons.

Lukashenko, once branded a dictator by the United States, has sought recently to improve ties with the West by releasing political prisoners and easing restrictions on news media. The steps were among the conditions for entry in the EU's Eastern Partnership program, which has drawn stern Russian criticism.

But Belarus is in dire need of cash and looking to secure investment to alleviate the effects of the global economic downturn.

The International Monetary Fund has given Belarus $800 million of a $2.5 billion loan it agreed to extend earlier this year, and the World Bank followed on Monday by agreeing a $125 million loan.

Associated Press writer David Nowak contributed from Moscow.

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