Identifier
Created
Classification
Origin
07MINSK123
2007-02-09 12:28:00
UNCLASSIFIED
Embassy Minsk
Cable title:  

EMBASSY MINSK WEEKLY POL/ECON REPORT - FEBRUARY 8, 2007

Tags:  PGOV PREL PHUM ECON EPET ENRG BO 
pdf how-to read a cable
VZCZCXYZ0000
RR RUEHWEB

DE RUEHSK #0123/01 0401228
ZNR UUUUU ZZH ZDK CTE UR SVC
R 091228Z FEB 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5614
INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS MINSK 000123 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - FEBRUARY 8, 2007


UNCLAS MINSK 000123

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - FEBRUARY 8, 2007



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

TABLE OF CONTENTS

INTERNATIONAL RELATIONS
--------------

- GOB, Ukrainian Vice Premiers Hold Energy Talks (para. 2)
- Ukraine Appoints New Ambassador to Belarus (para. 3)
- Venezuela to Open Embassy in Belarus (para. 4)
- Final Demarcation of Belarusian-Lithuanian Border (para. 5)


CIVIL SOCIETY
--------------

- Second Opposition Congress Planned for March 17-18 (para. 6)
- Mass Arrests of Opposition Youth Activists in Minsk (para. 7)
- Pressure on Independent Media Increased in 2006 (para. 8)

INTERNATIONAL TRADE AND INVESTMENT
--------------

- Iranian Executive in Minsk to Discuss MTZ Plant (para. 9)
- Horizont, China's Midea Joint Enterprise in Belarus (para. 10)



DOMESTIC ECONOMY
--------------
- GOB To Apply for World Bank Loan for Nuclear Plant (para. 11)
- GOB Hikes Domestic Oil Transit Fees (para. 12)

SOCIETY
--------------

- GOB To Appoint Private University Rectors (para. 13)
- Almost 300,000 in Belarusian Rehab Centers (para. 14)
- Rehab Center Renovated with US Grant Sits Idle (para. 15)

- QUOTE OF THE WEEK (para. 16)

--------------
International Relations
--------------


2. Belarusian, Ukrainian Vice Premiers Hold Energy Talks

On February 7, Belarus' Deputy Prime Minister Vladimir Semashko met
with his Ukrainian counterpart, Andriy Klyuyev, in Kyiv to discuss
draft agreements on energy cooperation. During the consultations,
Belarusian Ambassador to Ukraine Valentin Vyalichka announced that
Belarus seeks to boost Ukrainian electricity imports to 3.5 billion
kilowatt-hours in 2007 from Ukraine's Rivne nuclear power plant via
the distribution substation in Mikashevichy.


3. Ukraine Appoints New Ambassador to Belarus

On February 6, independent media reported that Ukraine had appointed
Igor Likhovvy as the new Ambassador to Belarus. Most recently, he
served as Minister of Culture and Tourism between October 2005 and

November 2006. Mr. Likhovvy will replace former Ambassador
Valentine Nalivaichenko.


4. Venezuela to Open Embassy in Belarus

On February 5, state and independent media reported on Venezuela's
plans to open an embassy in Belarus during the first quarter of

2007. Venezuelan Charge de Affaires to Belarus Ameriko Diaz Nunez
noted that the Venezuelan government considers cooperation with
Belarus to be "strategic" and that both Belarus and Venezuela are
interested in building a multi-polar world.


5. Final Demarcation of Belarusian-Lithuanian Border

On February 2, the GOB announced that Belarusian and Lithuanian
border guards are verifying final documents for border demarcation.
Upon verification, experts will seal them with official stamps,
agree and sign Belarusian and Lithuanian language versions, and
exchange electronic versions. The demarcated border is 680 km long.



--------------
Domestic Opposition
--------------


6. Next Democratic Congress Planned for March 17-18

On February 1, the majority of the opposition coalition's Political
Council (PC) members voted to hold another congress on March 17-18
and called for a mass demonstration on March 25 to celebrate the
89th anniversary of the Belarusian National Republic. Former
presidential candidate Aleksandr Milinkevich, who apparently did not
participate in the PC vote on setting the date for the congress, had
earlier stated that he did not comprehend the purpose of the event.
Milinkevich also argued that the opposition should first formulate a
common platform that would be "more or less clear to voters."


7. Mass Arrests of Opposition Youth Activists in Minsk

On February 5, Belarusian police arrested 27 members of the "Malady
Front" (MF) opposition youth organization. Most arrests occurred
during an MF central committee meeting in a private apartment.
After conducting searches of several MF members' homes, authorities
released all those detained except MF leaders Oleg Korban and Dmitry
Fedaruk, who remained in BKGB custody until late on February 7.
Korban and Fedaruk face charges of acting on behalf of an
unregistered organization under article 193-1 of the Belarusian
Criminal Code. This article carries a fine or a prison sentence of
up to two years.


8. Pressure on Belarus' Independent Media Increased in 2006

On February 5, independent media publicized a report by the
U.S.-based Committee to Protect Journalists (CPJ) that described GOB
increased pressure on independent media in Belarus during 2006.
According to CPJ, pressure was particularly strong during the
presidential campaign when authorities arrested dozens of Belarusian
and foreign journalists. Moreover, authorities denied independent
media virtually any opportunity to reach their audiences and private
newspapers were barred from using state controlled distribution
systems.

--------------
International Trade and Investment
--------------


9. Iranian Executive in Minsk to Discuss MTZ Plant

On February 7, Iranian Ambassador to Belarus Abdolhamid Fekri
announced that Iran's Gonabad company top executive would visit
Belarus during the following week to discuss the construction of a
Minsk Tractor Works assembly plant in Iran. Predicting that
Belarusian-Iranian business would continue to grow, Fekri also
expressed hope that Belarusian-assembled Samands, Iran's version of
a Peugeot, would be sold not only in but also exported from Belarus
and noted that a delegation of Belarusian banking executives is
currently seeking similar cooperation in Iran.


10. Horizont, China's Midea Joint Enterprise in Belarus

On February 2, Belarusian appliance manufacturer Horizont Deputy
Director General Gennadiy Ozarov announced that Horizont and Chinese
Midea Holding Company would establish a joint enterprise to
manufacture household equipment and appliances. The enterprise is
expected to start operation in the first quarter of 2007 at
Horizont's branch in the northeastern Vitebsk region, where Horizont
currently produces microwave ovens. The joint enterprise will be
registered as a resident of the Vitebsk Free Economic Zone (FEZ).
According to Ozarov, FEZ registration was one of the main conditions
of the joint enterprise agreement. Founded in 1950, Horizont is
said to be the largest television manufacturer in the Commonwealth
of Independent States, but also makes DVD players, radio sets,
microwave ovens, and cable television equipment. In 2006, Horizont
reportedly sold 320,000 product units, up 15 percent from 2005.

--------------
Domestic Economy
--------------


11. GOB To Apply for World Bank Loan for Nuclear Plant

On February 5, Belarusian Academy of Sciences Chairman Mikhail
Myasnikovich announced that Belarus might apply for a World Bank
loan to finance nuclear plant construction as a key element of the
country's energy reform. The GOB plans to construct two 1,000 MW
nuclear units at Krasnopolyanskaya by 2013 and 2015. The units will
reportedly cost Belarus USD 2.5 to 3 billion. Earlier this year,
President Lukashenko instructed the government to expedite
construction, use Belarusian equipment whenever possible, and
evaluate technical assistance proposals from Russia, France and
Germany.


12. GOB Hikes Domestic Oil Transit Fees

On February 5, state and independent press reported that Belarus'
Ministry of Economics issued a decree to increase average domestic
oil transit fees from USD 0.41 to USD 0.60 per ton per 100
kilometers, which would increase GOB revenues by USD 50 million.
The higher fees are comparable with those in Russia but are still
significantly lower than in other neighboring countries. Belarus'
state-owned Druzhba oil transportation company operates two major
pipelines running through the Gomel and Novopolotsk regions that
transport oil to Ukraine, Poland, Hungary, Slovakia, Czech Republic.


--------------
Society
--------------


13. GOB To Appoint Private University Rectors

On February 2, independent media reported that the GOB had
authorized the education minister to appoint rectors of private
institutions of higher learning. Belarusian House of
Representatives' Standing committee on Education, Culture, Science
and Scientific Technological Progress Chair Vladimir Zdanovich
declared the decision to be final and without debate.


14. Almost 300,000 in Belarusian Rehab Centers

On February 2, Belarusian Health Ministry's Chief Addiction Officer
Vladimir Maksimchuk reported that 296,039 people in Belarus are
currently registered at the country's drug and alcohol abuse
treatment centers. Registered addicts increased in number by four
percent in 2006, with the number of minors (under 18 years old)
rising by five percent and that of women by 15.6 percent. According
to Maksimchuk, among those registered, more than 6,000 were drug
addicts. Maksimchuk claimed that more than 45,000 alcoholics became
sober in the last five years. In 2006, approximately 110,000 people
were admitted to hospital for alcohol intoxication and more than
3,000 people died of alcohol intoxication or alcohol-caused
accident. Meanwhile, suicides committed under the influence of
alcohol numbered almost 3,000. According to Belarus' Ministry of
Statistics and Analysis, 2006 per-capita sales of alcoholic
beverages exceeded 2005 sales by 10 percent.


15. U.S.-Supported Rehabilitation Center Sits Idle

On February 3, independent media reported that a rehabilitation
center at a hospital in the eastern Gomel region currently remains
inactive. The center reportedly requires an additional USD 46,700
to purchase ventilation equipment and complete connections to the
local sewer system. By June 2005, the center had received USD
190,000 for equipment and renovations from the United States
European Command's Humanitarian Assistance Program. The center was
to offer various types of treatment currently unavailable in the
town.

--------------
QUOTE OF THE WEEK
--------------


16. On February 7, vowing that Belarus would set out on a
"civilized" path, President Lukashenko warned Europe to cooperate
with Minsk or face the following consequences:

"You should understand that you will have to cooperate with us
unless you want to have tension in your home and create a territory
similar to Chechnya."

Stewart