Since winning independence from the Soviet Union in 1991, Belarus has moved slowly on privatization and other market reforms, emphasizing instead close economic relations with Russia. About 80% of all industry remains in state hands, and foreign investment has been hindered by a climate hostile to private businesses. The banks, which had been privatized after independence, were renationalized after President Lukashenko took office in 1994. Economic output, which declined for several years, revived somewhat in the late 1990s, but the economy remained dependent on Russian subsidies. By 2011, however, the increased cost of imported fuel had undermined the economy, leading to a steep fall in the value of the Belarusian ruble, an inability to purchase imports, and enormous government debt.
Peat, the country's most valuable mineral resource, is used for fuel and fertilizer and in the chemical industry. Belarus also has deposits of granite, dolomite, chalk, sand, clay, and rock and potassium salt. Forests cover about a third of the land, and lumbering is an important occupation. Potatoes, flax, hemp, sugar beets, rye, oats, and wheat are the chief agricultural products. Dairy and beef cattle, pigs, and chickens are raised. Belarus has only small reserves of petroleum and natural gas and imports most of its oil and gas from Russia. The main branches of industry produce tractors and trucks, earth movers for use in construction and mining, metal-cutting machine tools, motorcycles, chemicals, fertilizer, textiles, and consumer goods. Russia is by far the most important trading partner; others include the Netherlands, Ukraine, and Germany.