Lukashenko, 40, a political outsider, is on his first foreign visit after winning a landslide victory on July 10 in Belarus' first presidential election.
"They spoke to me as an equal. I am glad that Russia has understood and supported me," an elated Lukashenko said after talks with Yeltsin and Prime Minister Viktor Chernomyrdin.
"Russia has opened a dialogue with the new wave of politicians in the republic of Belarus, represented by President Lukashenko," he said.
During the presidential campaign Moscow clearly backed Lukashenko's main opponent, Prime Minister Vyacheslav Kebich, who resigned after his humiliating defeat.
The new president, who had accused Kebich of moving too slowly toward a monetary union with Russia, said he accepted Russia's view that his country was not ready for the move.
"If we want to destroy the Belarussian economy now, we should go for the monetary union. Their inflation is 5 percent (a month) and ours is 40. The moment we unite monetary systems ... we will not be able to survive."
"We have to bring inflation down and come at least a little bit closer to Russian economic reforms. If we do it, then the question of uniting monetary systems will become a reality," he said, adding the question would be discussed again when Yeltsin visits Belarus this autumn.
"This union foresees a common approach to economic problems, but Belarus is lagging behind in economic reforms," Chernomyrdin told Interfax.
The currency union was originally negotiated last September by Chernomyrdin and Kebich but was amended subsequent to pressure from reformers in the Russian government. The current draft would subordinate the Belarussian central bank to Moscow.
Lukashenko, who advocated closer ties with Russia and maintained a conservative economic stance during his campaign, has since changed his tune and emerged as a proponent of slow but steady market reform.
He has already freed vodka prices and said he planned to do away with subsidies for bread and meat. Other prices would be liberalized as well, he has said.
Lukashenko appointed market reformer Mikhail Chigir as his prime minister to replace the conservative Kebich.
According to Interfax, Chernomyrdin said that Russia would help Belarus both with advice and money.
"We will take into account our own mistakes and tell you what you should not do," Chernomyrdin said.
He said the government would ask parliament to approve a 150 billion ruble ($75 million) credit to Belarus and would be "flexible" on its current debt of about 1 trillion rubles, mostly for energy supplies, according to Itar-Tass. Belarus would pay part of its debt with industrial production and also participate in joint ventures, including with the oil industry, Chernomyrdin said, without giving details.
Russia is clearly keen to keep Belarus as a close ally in its efforts to strengthen the CIS. Lukashenko said Minsk was ready to cooperate.
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