EMBASSY MINSK WEEKLY REPORT - June 20, 2006

UNCLAS SECTION 01 OF 03 MINSK 000653 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL PHUM ETRD EINV SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 20, 2006 MINSK 00000653 001.6 OF 003 ¶1. The following are brief items of interest compiled by Embassy Minsk. -------------- International Relations -------------- ¶2. Putin Signals Hike in Gas Price to Belarus, Impatient on Union During a Shanghai Cooperation Organization Press Conference, Russian President Vladimir Putin suggested that Moscow plans to raise gas prices for Belarus next year and asserted, "they won't manage to get freebies at our expense." Putin referred to the USD 46.68 per tcm that Belarus currently pays Russia for gas. Putin questioned why Russia charges Belarusians less than Russians. When a journalist said he wanted to know when Belarus and Russia would have a full-fledged union, Putin answered, "I also would like to know." Putin denied any tensions in relations between Russia and Belarus but stated, "there's no possibility to create a [single] state before the deadline that we have agreed upon either." ¶3. Belarusian Authorities Expand List of Banned Foreigners On June 12, the Belarusian Interior Ministry announced the expansion of its unpublished list of foreign officials barred from entering Belarus. According to the Ministry, among the foreigners whose presence in Belarus is either "prohibited or undesirable," are those who have committed crimes in Belarus and were deported from the country. Moreover, the ban includes those suspected of being members of "extremist or terrorist" organizations. The Ministry estimates that approximately 40,000 persons are barred entry and that 10,000 have been added to the ban over the past two years. The Ministry also reported that Belarusian law-enforcement agencies are creating a data bank of foreigners who reside in Belarus. ¶4. Belarus Stations Customs Posts at Belarusian-Russian border On June 13, Prime-Tass announced that a source in Belarus' Internal Affairs Ministry (MVD) revealed that Belarus has temporarily posted MVD and State Customs Committee (SCC) officers in customs control checkpoints along the Belarusian-Russian border after a series of violations involving Russian cargo shipments being transported via or to Belarus. Customs and security officers reportedly inform drivers about rules regulating the import of excisable goods and escort convoys. According to Prime-Tass' source, the "Russian side does not think it is compulsory to warn carriers about it." ¶5. Iran's Caspian Airlines to Fly Directly between Tehran and Minsk The Iranian embassy in Minsk announced that on June 22 Iran's Caspian Airlines will begin direct flights from Tehran to Minsk. Commercial aircraft will fly from Iran to Belarus on Thursdays. The airline will alternate flights to Budapest via Minsk and to Minsk via Budapest each week. Caspian Airlines signed a cooperation agreement with Belavia, Belarus' national airline, on June 7. The Iranian embassy predicted that the service would foster Belarusian-Iranian economic cooperation and tourism. -------------- Elections -------------- ¶6. Head of Central Election Commission Reports on Local Elections On June 9, Belarus' Central Election Commission Chairperson Lidiya Yermoshina reported on the upcoming local elections to President Lukashenko. Lukashenko tentatively consented to scheduling the elections for local councils of deputies for January 14, 2007, though elections may be postponed until January 28. Yermoshina stated that the election would cost some 22 billion rubles (2,143 per USD 1). About 24,000 members of local councils were elected in the previous local elections held in early 2003, which opposition leaders condemned as undemocratic. In late May, President Lukashenko asserted that the few opposition candidates who won their local elections had benefited from voter apathy and added that local councils should assume the coordinating role in solving local problems. -------------- Civil Society -------------- ¶7. Police Detain 50 Activists Rally near Russian Embassy On June 16, Police detained about 50 opposition activists participating in the "Days of Solidarity" demonstration outside the Russian embassy in Minsk in support of political prisoners. Authorities released the demonstrators without charge after recording their personal information. Several news websites MINSK 00000653 002.4 OF 003 reported that around 100 demonstrated by standing in line and lighting candles. Police dispersed the rally after 10 minutes. Opposition activists have commemorated the "Day of Solidarity" on the sixteenth day of every month since September 16, 2005, the sixth anniversary of the disappearance of opposition politician Viktor Gonchar and businessman Anatoly Krasovsky. [Note: the Russian Embassy is adjacent to the U.S. Embassy in Minsk.] ¶8. Opposition Ends Hunger Strike, 10 Arrested in Minsk On June 18, youth opposition activists ended their hunger strike in Minsk. About 20 people were still taking part in the hunger strike that began in Soligorsk on May 29 and ended on June 7. The hunger strikers had been demanding that the BKGB cease criminal prosecution of several leaders of Malady Front, including Dmitry Dashkevich, Boris Goretsky, Sergei Lisichonok, Sergei Marchik and Oleg Korban, who are charged with operating an unregistered organization. Moreover, the hunger strikers demanded that Maksim Semenchik be reinstated as a student at a vocational school in Soligorsk and Aleksei Yanushevsky as a student of Belarusian State Teachers' Training University in Minsk. On June 13, police had arrested and two hours later released ten opposition hunger strikers in central Minsk. Several of the activists allegedly had leaflets and were charged with distributing illegal printed materials. Administrative offenses panels will hear the hunger strikers' cases. ¶9. Youths Flash Mob in Minsk Supports Opposition Hunger Strikers On June 14, a flash mob of about 30 young people in downtown Minsk demonstrated support for a nationwide hunger strike against the politically motivated prosecution of opposition activists. At 8 p.m. the youths sat on the stairs of a downtown department store and held plastic plates with the word "hunger-strike" written on them, and dispersed 10 minutes later. No one was detained. ¶10. Newspaper Editor Applies for Refugee Status in Ukraine Andrei Shentorovich, the owner and chief editor of the regional newspapers "Mestnaya Gazeta," has confirmed he has been in Ukraine since March 29 and intends to seek refugee status in Ukraine. Shentorovich claimed he had been informed that Belarusian authorities intend to place him in custody indefinitely and that Belarusian police are watching his home in Volkovysk. He cited his newspaper's investigation into illicit activities of a local slate factory as the likely reason for GOB harassment. The newspaper owner noted that if the Ukrainian government rejects his application for refugee status, he will return to Belarus. ¶11. Over 30,000 People Sign Petition for Kozulin's Release On June 15, the press office of the Belarusian Social Democratic Party "Hramada" announced that more than 30,000 people have signed a petition demanding the release of former presidential candidate Aleksandr Kozulin, who is currently in jail awaiting trial on criminal charges. The press office also claimed that 218 well known persons offered their "personal guarantees" that Kozulin would appear for trial. Kozulin has been held in the Zhodino pre- trial detention center since March 25. Belarusian authorities charged him with two counts of hooliganism under Part 2 of the Criminal Code's Article 339 and with disturbing the public peace under Article 342 for entering the National Press Center to hold a news conference on February 17 and for attempting to register for the government-organized Third All-Belarusian People's Assembly on March 2. ¶12. Airport Authorities Detain Wife of Aleksandr Kozulin On June 9, Belarusian airport authorities detained Irina Kozulina, wife of jailed former presidential candidate Aleksandr Kozulin. According to Kozulina's daughter, Yulia, officials seized her mother's suitcase as Kozulina waited at passport control. About 40 minutes later, authorities returned with Kozulina's suitcase, opened and its contents disheveled. After returning to passport control, Kozulina boarded the aircraft seven minutes before take off. Kozulina was departing for Washington, D.C. to attend a conference on breast cancer. ¶13. Pensioner Sentenced for Accosting Pro-Opposition Activists This week the Gomel regional court sentenced a 61-year-old pro- Lukashenko pensioner, Nikolai Tsarkov, to one year of restricted freedom for hooliganism. On March 14, upon seeing a portrait of former presidential candidate Aleksandr Milinkevich in front of a grocery store, Tsarkov shouted, "we have a great president [Lukashenko]. He pays my pension," and allegedly attempted to strike a pro-Milinkevich activist with a stool. -------------- Economy -------------- MINSK 00000653 003.4 OF 003 ¶14. Belarus' Revenues Up USD 500 Million Due to VAT with Russia On June 14, Deputy Finance Minister Ivan Shunko reported the Belarusian state budget has received an additional USD 500 million revenues due to a 2005 agreement. Under the agreement, imports of goods are subject to indirect taxes that are collected in the country of destination except for goods imported for processing or transit or for goods that are exempted from taxes in accordance with laws of the two countries. In May, during a meeting in Moscow experts discussed taxation and quality control of imported goods. Indirect taxes will be collected by Russian and Belarusian tax agencies, whereas excises will be collected by customs agencies. Deputy Tax Minister Larisa Kondratova predicted that the 2007 VAT between Belarus and Russia would be easier since Russia will shorten its deadline for payment confirmation to two months, corresponding to the term set in Belarus. ¶15. Lukashenko Says Liberalizing Telecom Important for WTO Rules On June 12, President Lukashenko told Belarus' Communication and IT Minister Nikolai Panteley that liberalizing the telecommunication market and banning subsidies are important to meet the World Trade Organization (WTO) obligations. According to Belarus' former Communication and IT Minister Ivan Rak, Belarus' regulations will be upgraded to WTO standards by August 19, 2006. Rak asserted, "the WTO demands to liberalize the telecommunication market, and we have developed a liberalization concept for the long-distance communication segment, as other segments are not monopolized in Belarus." [Note: the GOB monopolizes all telecommunications in Belarus through Beltelecomm and its majority control of all three cellular phone companies.] ¶16. Chinese Bank Invited to Invest in Belarusian Banking Sector During a June 11-15 visit of Chinese banking executives to Minsk, the National Bank of Belarus (NBB) invited one of China's largest banks, People's Bank of China, to invest in a financial institution in Belarus. The officials agreed to consider forming a working group to facilitate settlements between Belarusian and Chinese businesses and to expedite an agreement on personnel training between the NBB and the People's Bank of China. The delegation also included representatives of China Export and Credit Insurance Corporation, Export and Import Bank of China, Shanghai Pudong Development Bank, and China Industry and Commerce Bank. -------------- Quote of the Week -------------- ¶17. On June 16, while visiting the Belarusian National Library, President Lukashenko offered this insight regarding the accuracy of history textbooks: "I do not read a lot presently. It is particularly true after I studied the way [books] are written, especially history books, which I like. I previously thought that books are truthful but it turned out that modern books about heads of state and historical personalities contain about 80 percent lies. As for the Soviet- time leaders, starting from Vladimir Ilyich Lenin to Joseph Stalin to present-day leaders, the share of lies reaches 100 percent." KROL