Identifier
Created
Classification
Origin
07MINSK290
2007-04-05 15:36:00
UNCLASSIFIED
Embassy Minsk
Cable title:
EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007
how-toVZCZCXRO6230 RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR DE RUEHSK #0290/01 0951536 ZNR UUUUU ZZH R 051536Z APR 07 FM AMEMBASSY MINSK TO RUEHC/SECSTATE WASHDC 5869 INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE RHMFISS/HQ USEUCOM VAIHINGEN GE RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS SECTION 01 OF 03 MINSK 000290
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007
REF: MINSK 266
UNCLAS SECTION 01 OF 03 MINSK 000290
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007
REF: MINSK 266
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
INTERNATIONAL RELATIONS
--------------
- Minsk Oil Extraction Deals Outside Russia-"Propaganda" (para. 2)
- Latvia to Demand Compensation for Fuel Spill (para. 3)
- Parliament Approves Visa-free Travel to Azerbaijan (para. 4)
- Putin and Lukashenko Exchange Greetings (para. 5)
- Belarus-Ukraine Cancel Border Guard Talks (para. 6)
CIVIL SOCIETY
--------------
- Non-GOB Writers Union Appeals Ban on Public Meetings (para. 7)
- Regional Human Rights NGOs Evicted in Mogilyov (para. 8)
INTERNATIONAL TRADE AND INVESTMENT
--------------
- Russia Concerned over Beltransgaz Price Reductions (para. 9)
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 10)
DOMESTIC ECONOMY
--------------
- PM Says Belarusian Economy Immune to Outside Shocks (para. 11)
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 12)
SOCIETY
--------------
- GOB Considers Construction of Antarctic Station (para. 13)
QUOTE OF THE WEEK (para. 14)
--------------
INTERNATIONAL RELATIONS
--------------
2. Minsk Oil Extraction Deals Outside Russia-"Propaganda"
During a press conference on March 30, Russian Ambassador to Belarus
Alexander Surikov stated that Minsk's announcement of plans to
extract oil in Venezuela, Azerbaijan and Iran was an act of
"propaganda." He noted that before Belarus can proceed with such
plans, it must first win bidding competitions in those countries.
Furthermore, he added that Belarus could extract oil from Russia
"without problems," where the infrastructure necessary for
transporting extracted oil already exists.
3. Latvia to Demand Compensation for Fuel Spill
On March 30, Belarusian independent media reported that the Latvian
government will demand compensation from Minsk for damage caused by
diesel fuel leaked from a Russian-owned pipeline in northern
Belarus. The leak, first reported on March 23, released an
estimated 1,000 tons of fuel into the Western Dvina River and its
tributary, the Ulla (reftel). As of April 2, diesel covered 100
kilometers of shoreline. The pipeline carries petroleum products to
Latvia's Ventspils seaport.
4. Parliament Approves Visa-free Travel to Azerbaijan
On April 2, the Belarusian National Assembly's lower chamber
ratified an agreement to allow visa-free travel with Azerbaijan.
Belarusian Deputy Foreign Minister Viktor Gaysenok expressed hope
that the accord would increase economic cooperation and political
and cultural dialogue. Both countries may still bar a citizen of
the other country from entering its territory or reduce the period
of stay without explanation.
5. Putin and Lukashenko Exchange Greetings
On April 2, President Lukashenko and Russian President Putin
exchanged greetings on the occasion of "The Day of the Unity of the
Peoples of Belarus and Russia." Celebrated on April 2 each year,
the day commemorates the 1996 agreement between Presidents
Lukashenko and Yeltsin that formed the Belarusian-Russian Community.
On April 2, 1997 the two leaders signed another accord that
ostensibly transformed the community into a union. In his greeting
to Putin, Lukashenko observed that "the objective need for
rapprochement between Belarus and Russia becomes increasingly
tangible with every year that passes".
6. Belarus-Ukraine Cancel Border Guard Talks
MINSK 00000290 002 OF 003
On April 3, Belarus' State Border Troops Committee Chair Aleksandr
Pavlovskiy and Ukrainian Border Guards Chief Mykola Lytvyn cancelled
their talks scheduled for April 3 and 4. Pavlovskiy and Lytvyn were
expected to discuss Belarusian-Ukrainian border issues. The
officials reportedly put off the talks because of the political
crisis triggered by Ukrainian President Viktor Yushchenko's April 2
decision to dissolve Ukraine's parliament.
--------------
Civil Society
--------------
7. Non-GOB Writers Union Appeals Ban on Public Meetings
On March 30, the independent Union of Belarusian Writers (UBW) filed
an appeal against the Education Ministry's ban on GOB institutions
from holding pubic meetings with its members. The ban declares that
any public meetings with writers and other cultural events require
pro-GOB writers' union's consent in order "to propagate ideology and
educate youth effectively." The UBW criticized the ban as illegal,
restrictive, and aimed at limiting contacts with writers who openly
criticize and voice discontent over GOB policies.
8. Regional Human Rights NGOs Evicted in Mogilyov
On April 2, independent media reported that the Belarusian Helsinki
Committee and the Human Rights Center in the eastern city of
Mogilyov are being forced out of their offices. The state housing
authorities are pressuring the NGOs to voluntarily terminate the
lease agreement; otherwise, they will face an eviction lawsuit. The
landlord accused the NGOs of subleasing the office to a humanitarian
organization without its consent. The human rights NGOs deny that
they breached the lease agreement, and that authorities are only
attempting to hinder NGOs' activities.
--------------
International Trade and Investment
--------------
9. Russia Concerned over Beltransgaz Price Reductions
Russian Ambassador to Belarus Alexander Surikov told the reporters
on March 30 that Russia's Gazprom is concerned over Beltransgaz plan
to remove USD 18 markup on the price charged to Beltopgaz, which
distributes natural gas to local consumers. Under the December 31,
2006 agreement, Gazprom will acquire 50 percent of Beltransgaz stock
in four equal annual installments by 2010. Gazprom claims the plan
may impede the establishment of a joint venture (JV),since the new
reduced price charged to Beltopgaz will reduce Beltransaz profits.
Ambassador Surikov referred to the provision in the JV agreement
that allows Gazprom to double the price it charges Beltransgaz for
the natural gas supplied to Belarus. Gazprom may threaten to resort
to it, since price reduction was off the agenda when Beltransgaz was
assessed for the JV deal.
10. Italian Banks To Finance Belarusian Oil Projects
On April 3, UniCredito Italiano Vice President Fabrizio Palenzona
met with Belarusian Prime Minister Sergey Sidorskiy to discuss
possible financing of Belarusian oil industry projects by Italian
banks. According to Palenzona, his bank had negotiated about USD 70
million in investment, and a branch of Russia's Moscow International
Bank would be opened in Belarus within two weeks. UniCredito
Italiano is the sole owner of the Russian bank.
--------------
Domestic Economy
--------------
11. PM Says Belarusian Economy Immune to Outside Shocks
On March 30, Belarus' Prime Minister Sidorsky told the Advisory
Council for Foreign Investment that Belarus' economy has been immune
to the adverse consequences of Belarus' recent conflict with Russia
over energy prices. Belarus' GDP growth in January-February reached
nine percent. He nevertheless admitted that higher energy prices
had caused "some problems."
12. GOB Predicts Job Holders up 10-11 Percent by 2010
On April 4, Belarus' the head of the employment and population
department with the Labor Ministry, Nikolai Kokhonov, announced job
centers are expected to increase the number of job holders by 11
percent during 2005-2010 to 4.8 million people. According to
Kokhonov, this increase will exceed both the number of Belarusians
who work abroad and those who are trying to find jobs without using
official employment services, figures estimated at 180,000 people
and 192,000 people, respectively. Belarus' Labor Ministry reports
that some 105,000 Belarusians are out of work because of poor
health, 144,000 are not actively seeking employment, and 110,000 do
not need to work because of savings or investments. The Ministry
MINSK 00000290 003 OF 003
classified 744,000 unemployed people as part of the economically
active population.
--------------
Society
--------------
13. GOB Considers Construction of Antarctic Station
On April 3, two Belarusian explorers returned to Minsk after
spending five months in Antarctica as part of a Russian expedition.
Their research will help the GOB decide whether to build its own
manned research station in Antarctica or use an abandoned Russian
facility. Constructing a new station is expected to cost the GOB
between USD 8 and 10 million. Russian icebreakers will be required
to supply whichever facility the GOB chooses.
--------------
Quote of the Week
--------------
14. During an interview on April 4, President Lukashenko offered
the following explanation why the issue of Belarusian political
prisoners is actually an EU artifice:
"[The Europeans] are like die-hard sheep bearing against this gate,
and demand us to release political prisoners. We do not have
political prisoners, and we have shown them why those people had
been convicted. These people were spurred on to the barricades by
the EU and its money, and the West wants to release them. Well,
come and admit that you [EU countries] are guilty, offer an apology
to the Belarusians, and say, 'let's deal with the matter'."
Stewart
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007
REF: MINSK 266
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
INTERNATIONAL RELATIONS
--------------
- Minsk Oil Extraction Deals Outside Russia-"Propaganda" (para. 2)
- Latvia to Demand Compensation for Fuel Spill (para. 3)
- Parliament Approves Visa-free Travel to Azerbaijan (para. 4)
- Putin and Lukashenko Exchange Greetings (para. 5)
- Belarus-Ukraine Cancel Border Guard Talks (para. 6)
CIVIL SOCIETY
--------------
- Non-GOB Writers Union Appeals Ban on Public Meetings (para. 7)
- Regional Human Rights NGOs Evicted in Mogilyov (para. 8)
INTERNATIONAL TRADE AND INVESTMENT
--------------
- Russia Concerned over Beltransgaz Price Reductions (para. 9)
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 10)
DOMESTIC ECONOMY
--------------
- PM Says Belarusian Economy Immune to Outside Shocks (para. 11)
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 12)
SOCIETY
--------------
- GOB Considers Construction of Antarctic Station (para. 13)
QUOTE OF THE WEEK (para. 14)
--------------
INTERNATIONAL RELATIONS
--------------
2. Minsk Oil Extraction Deals Outside Russia-"Propaganda"
During a press conference on March 30, Russian Ambassador to Belarus
Alexander Surikov stated that Minsk's announcement of plans to
extract oil in Venezuela, Azerbaijan and Iran was an act of
"propaganda." He noted that before Belarus can proceed with such
plans, it must first win bidding competitions in those countries.
Furthermore, he added that Belarus could extract oil from Russia
"without problems," where the infrastructure necessary for
transporting extracted oil already exists.
3. Latvia to Demand Compensation for Fuel Spill
On March 30, Belarusian independent media reported that the Latvian
government will demand compensation from Minsk for damage caused by
diesel fuel leaked from a Russian-owned pipeline in northern
Belarus. The leak, first reported on March 23, released an
estimated 1,000 tons of fuel into the Western Dvina River and its
tributary, the Ulla (reftel). As of April 2, diesel covered 100
kilometers of shoreline. The pipeline carries petroleum products to
Latvia's Ventspils seaport.
4. Parliament Approves Visa-free Travel to Azerbaijan
On April 2, the Belarusian National Assembly's lower chamber
ratified an agreement to allow visa-free travel with Azerbaijan.
Belarusian Deputy Foreign Minister Viktor Gaysenok expressed hope
that the accord would increase economic cooperation and political
and cultural dialogue. Both countries may still bar a citizen of
the other country from entering its territory or reduce the period
of stay without explanation.
5. Putin and Lukashenko Exchange Greetings
On April 2, President Lukashenko and Russian President Putin
exchanged greetings on the occasion of "The Day of the Unity of the
Peoples of Belarus and Russia." Celebrated on April 2 each year,
the day commemorates the 1996 agreement between Presidents
Lukashenko and Yeltsin that formed the Belarusian-Russian Community.
On April 2, 1997 the two leaders signed another accord that
ostensibly transformed the community into a union. In his greeting
to Putin, Lukashenko observed that "the objective need for
rapprochement between Belarus and Russia becomes increasingly
tangible with every year that passes".
6. Belarus-Ukraine Cancel Border Guard Talks
MINSK 00000290 002 OF 003
On April 3, Belarus' State Border Troops Committee Chair Aleksandr
Pavlovskiy and Ukrainian Border Guards Chief Mykola Lytvyn cancelled
their talks scheduled for April 3 and 4. Pavlovskiy and Lytvyn were
expected to discuss Belarusian-Ukrainian border issues. The
officials reportedly put off the talks because of the political
crisis triggered by Ukrainian President Viktor Yushchenko's April 2
decision to dissolve Ukraine's parliament.
--------------
Civil Society
--------------
7. Non-GOB Writers Union Appeals Ban on Public Meetings
On March 30, the independent Union of Belarusian Writers (UBW) filed
an appeal against the Education Ministry's ban on GOB institutions
from holding pubic meetings with its members. The ban declares that
any public meetings with writers and other cultural events require
pro-GOB writers' union's consent in order "to propagate ideology and
educate youth effectively." The UBW criticized the ban as illegal,
restrictive, and aimed at limiting contacts with writers who openly
criticize and voice discontent over GOB policies.
8. Regional Human Rights NGOs Evicted in Mogilyov
On April 2, independent media reported that the Belarusian Helsinki
Committee and the Human Rights Center in the eastern city of
Mogilyov are being forced out of their offices. The state housing
authorities are pressuring the NGOs to voluntarily terminate the
lease agreement; otherwise, they will face an eviction lawsuit. The
landlord accused the NGOs of subleasing the office to a humanitarian
organization without its consent. The human rights NGOs deny that
they breached the lease agreement, and that authorities are only
attempting to hinder NGOs' activities.
--------------
International Trade and Investment
--------------
9. Russia Concerned over Beltransgaz Price Reductions
Russian Ambassador to Belarus Alexander Surikov told the reporters
on March 30 that Russia's Gazprom is concerned over Beltransgaz plan
to remove USD 18 markup on the price charged to Beltopgaz, which
distributes natural gas to local consumers. Under the December 31,
2006 agreement, Gazprom will acquire 50 percent of Beltransgaz stock
in four equal annual installments by 2010. Gazprom claims the plan
may impede the establishment of a joint venture (JV),since the new
reduced price charged to Beltopgaz will reduce Beltransaz profits.
Ambassador Surikov referred to the provision in the JV agreement
that allows Gazprom to double the price it charges Beltransgaz for
the natural gas supplied to Belarus. Gazprom may threaten to resort
to it, since price reduction was off the agenda when Beltransgaz was
assessed for the JV deal.
10. Italian Banks To Finance Belarusian Oil Projects
On April 3, UniCredito Italiano Vice President Fabrizio Palenzona
met with Belarusian Prime Minister Sergey Sidorskiy to discuss
possible financing of Belarusian oil industry projects by Italian
banks. According to Palenzona, his bank had negotiated about USD 70
million in investment, and a branch of Russia's Moscow International
Bank would be opened in Belarus within two weeks. UniCredito
Italiano is the sole owner of the Russian bank.
--------------
Domestic Economy
--------------
11. PM Says Belarusian Economy Immune to Outside Shocks
On March 30, Belarus' Prime Minister Sidorsky told the Advisory
Council for Foreign Investment that Belarus' economy has been immune
to the adverse consequences of Belarus' recent conflict with Russia
over energy prices. Belarus' GDP growth in January-February reached
nine percent. He nevertheless admitted that higher energy prices
had caused "some problems."
12. GOB Predicts Job Holders up 10-11 Percent by 2010
On April 4, Belarus' the head of the employment and population
department with the Labor Ministry, Nikolai Kokhonov, announced job
centers are expected to increase the number of job holders by 11
percent during 2005-2010 to 4.8 million people. According to
Kokhonov, this increase will exceed both the number of Belarusians
who work abroad and those who are trying to find jobs without using
official employment services, figures estimated at 180,000 people
and 192,000 people, respectively. Belarus' Labor Ministry reports
that some 105,000 Belarusians are out of work because of poor
health, 144,000 are not actively seeking employment, and 110,000 do
not need to work because of savings or investments. The Ministry
MINSK 00000290 003 OF 003
classified 744,000 unemployed people as part of the economically
active population.
--------------
Society
--------------
13. GOB Considers Construction of Antarctic Station
On April 3, two Belarusian explorers returned to Minsk after
spending five months in Antarctica as part of a Russian expedition.
Their research will help the GOB decide whether to build its own
manned research station in Antarctica or use an abandoned Russian
facility. Constructing a new station is expected to cost the GOB
between USD 8 and 10 million. Russian icebreakers will be required
to supply whichever facility the GOB chooses.
--------------
Quote of the Week
--------------
14. During an interview on April 4, President Lukashenko offered
the following explanation why the issue of Belarusian political
prisoners is actually an EU artifice:
"[The Europeans] are like die-hard sheep bearing against this gate,
and demand us to release political prisoners. We do not have
political prisoners, and we have shown them why those people had
been convicted. These people were spurred on to the barricades by
the EU and its money, and the West wants to release them. Well,
come and admit that you [EU countries] are guilty, offer an apology
to the Belarusians, and say, 'let's deal with the matter'."
Stewart