Following the recognition of Belarus as an independent state in December 1991 by the European Community, EU-Belarus relations initially experienced a steady progression. The signature of the Partnership and Cooperation Agreement (PCA) in 1995 signaled a commitment to political, economic, and trade cooperation. Significant assistance was provided to Belarus within the framework of the TACIS technical assistance program and also through various aid programs and loans. However, progress in EU-Belarus relations stalled in 1996 after serious setbacks to the development of democracy and the Drozdy conflict. The EU did not recognize the 1996 constitution, which replaced the 1994 constitution. The EU Council of Ministers decided against Belarus in 1997: The PCA was not concluded, nor was its trade-related part; Belarusian membership in the Council of Europe was not supported; bilateral relations at the ministerial level were suspended; and EU technical assistance programs were frozen. In 2004, the Council of Europe adopted a report written by special rapporteur Christos Pourgourides calling on Belarusian authorities to suspend various high-level officials in conducting a thorough investigation of the cases of several prominent Belarusian political figures who have disappeared and remain unaccounted for.

Acknowledging the lack of progress in relation to bilateral relations and the internal situation following the position adopted in 1997, the EU adopted a benchmark approach in 1999, whereby relations would be gradually improved upon fulfillment of the four benchmarks set by the OSCE. In 2000, some moderately positive developments toward the implementation of recommendations made by the OSCE Advisory and Monitoring Group (AMG) were observed but were not sufficient in the realm of access to fair and free elections. The Belarusian Government, objecting to the OSCE AMG's activities, forced its shutdown by failing to renew visas or extend accreditation of professional staff. The Belarus Government agreed to a successor OSCE presence after 14 EU member countries and the U.S. imposed visa restrictions on the travel of high-ranking Belarusian officials. The OSCE Office in Minsk formally came into existence on January 1, 2003 with a mandate to "assist the Belarusian Government in further promoting institution-building, in further consolidating the Rule of Law and in developing relations with civil society, in accordance with OSCE principles and commitments".

Russia is the largest partner for Belarus in the economic and political fields. In terms of trade, two-thirds of Belarusian exports go to Russia. Due to the structure of Belarusian industry, Belarus relies heavily on other CIS countries and Russia in particular both for export markets and for the supply of raw materials, energy, and components. The introduction of free trade between Russia and Belarus in mid-1995 led to a spectacular growth in bilateral trade, which was only temporarily reversed in the wake of the financial crisis of 1998. The framework for the Russia-Belarusian Union was set out in the Treaty On the Formation of a Community of Russia and Belarus (1996), the Treaty on Russia-Belarus Union, the Union Charter (1997), and the Treaty of the Formation of a Union State (1999). The integration treaties contain commitments to monetary union, equal rights, single citizenship, and a common foreign and defense policy. They also have established a range of institutions modeled after the EU. After protracted disputes and setbacks, the two countries' customs duties were unified as of March 2001. Belarus has made progress in monetary stabilization in the context of ongoing negotiation with the Russian Central Bank on monetary union. In early 2003, a bilateral working group was developing a draft union constitution to be ratified by a referendum held in both countries. Belarus and Russia had also reaffirmed their intention to achieve currency unification by 2005. However, differences over tax policy, customs codes, foreign trade, and constitutional issues make union appear increasingly unlikely. In July 2004, Lukashenko claimed that currency union would have to wait until at least 2008.