Identifier
Created
Classification
Origin
06MINSK653
2006-06-20 10:01:00
UNCLASSIFIED
Embassy Minsk
Cable title:  

EMBASSY MINSK WEEKLY REPORT - June 20, 2006

Tags:  PGOV PREL PHUM ETRD EINV 
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UNCLAS SECTION 01 OF 03 MINSK 000653 

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TAGS: PGOV PREL PHUM ETRD EINV
SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 20, 2006


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UNCLAS SECTION 01 OF 03 MINSK 000653

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TAGS: PGOV PREL PHUM ETRD EINV
SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 20, 2006


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1. The following are brief items of interest compiled by
Embassy Minsk.

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International Relations
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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expansion of its unpublished list of foreign officials barred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

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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
--------------

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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