Identifier
Created
Classification
Origin
07MINSK358
2007-05-04 08:48:00
UNCLASSIFIED
Embassy Minsk
Cable title:
EMBASSY MINSK WEEKLY POL/ECON REPORT - MAY 3, 2007
how-toVZCZCXRO5350 RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR DE RUEHSK #0358/01 1240848 ZNR UUUUU ZZH R 040848Z MAY 07 FM AMEMBASSY MINSK TO RUEHC/SECSTATE WASHDC 5961 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 000358
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MAY 3, 2007
UNCLAS SECTION 01 OF 03 MINSK 000358
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MAY 3, 2007
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Former Political Prisoner Banned From Traveling Abroad (para. 2)
- Over 4,500 Signatures Collected to Challenge the Religion Law
(para. 3)
- GOB to Review Former Monastery Reconstruction (para. 4)
- Chernobyl Liquidators Not Allowed to Debate Benefits Bill (para.
5)
- Harassment Against Opposition Leader's Wife Continues (para. 6)
Domestic Economy
--------------
- Less Russian Crude Oil Supplied to Belarus in 2007 (para. 7)
- Russia-Poland Meat Stand-off Affects Belarus (para. 8)
- Slump in Sugar Exports to Russia Part of a Broader Deal (para. 9)
- Imports of Inexpensive Moldovan Wines Reduced (para. 10)
International Trade and Investment
--------------
- Expensive Internet Slows Down E-trade in Belarus (para. 11)
- Belshina to Stop Internet Sales (para. 12)
- QUOTE OF THE WEEK (para. 13)
CIVIL SOCIETY
--------------
2. Former Political Prisoner Banned From Traveling Abroad
On April 29, opposition activist, former MP and political prisoner
Sergey Skrebets informed independent mass media that he was banned
from traveling abroad. Minsk District Passport and Visa Services
notified Skrebets that he cannot leave Belarus until he paid all the
damages he owes to the GOB. [Note: In 2006, the GOB found Skrebets
guilty of embezzlement and bank loans fraud and mandated him to
repay USD 700,000 (BYR 1.5 billion). End note.] Skrebets claims
his property was confiscated, and though he never pleaded guilty, he
is consistently paying off the damages. Skrebets is appealing the
decision to overturn the travel ban.
3. Over 4,500 Signatures Collected to Challenge the Religion Law
As of May 2, the Protestant New Life Church (NLC) web site announced
that over 4,500 people across Belarus signed a petition to challenge
the 2002 law on religious freedom and religious organizations. The
organizers aim to collect at least 50,000 signatures to protest the
law during the signature collection campaign, which started on April
22. Christian communities maintain that the law heavily restricts
their activities, suppresses freedom of religion, and legalizes
GOB's administrative and criminal prosecution of individuals for
their religious beliefs. NLC lawyer Sergey Lukanin considered the
ongoing campaign a success, citing reactions from GOB ideology
officers and the regional authorities' invitation to discuss the
campaign with a Protestant pastor.
4. GOB to Review Former Monastery Reconstruction
On May 2, BelaPAN independent news agency reported that following a
petition from the St. Joseph Roman Catholic community, the
Presidential Administration established an interagency commission to
study plans for the reconstruction of the former Bernardine
monastery building in central Minsk. Prominent historians and
members of the Catholic community urged the government to abandon
plans to convert the monastery into a five-star hotel and an
entertainment center and to return it to the community instead. The
interagency commission will be in charge of monitoring site research
and archeological works and also reviewing any incoming projects for
reconstruction.
5. Chernobyl Liquidators Not Allowed to Debate Benefits Bill
Despite an invitation from Presidential Administration Deputy Head
Natalya Petkevich, Chernobyl Blast Aftermath Liquidators Leader
Aleksandr Volchanin was not allowed to attend the May 3
parliamentary hearings on the bill for abolishing liquidators'
benefits. Petkevich's invitation followed a petition, signed by 360
liquidators, protesting cancellation of free medical treatment,
extra paid leave, and early retirement at age 55. Chernobyl Blast
Aftermath Liquidators plan to hold a founding conference on May 19
to establish an association and unite 126,200 military and civilian
workers affected by the blast.
6. Harassment Against Opposition Leader's Wife Continues
MINSK 00000358 002 OF 003
On April 29, BelaPAN independent news agency reported that de facto
opposition leader Aleksandr Milinkevich's wife Inna Kulei filed a
criminal lawsuit with the prosecutor's office after her personal
information was posted on a web site advertising sexual services.
Kulei says she has been receiving a number of sexually explicit
phone calls and believes her cell phone number was purposefully
disclosed to insult and discredit her. In March, Milinkevich's car
was splashed with acid and Kulei's car was vandalized with graffiti
and two flat tires. Kulei attributed the elevated harassment to her
successful activities as the coordinator of educational programs
assisting expelled youth in finding study abroad opportunities.
INTERNATIONAL TRADE AND INVESTMENT
--------------
7. Less Russian Crude Oil Supplied to Belarus in 2007
According to the Ministry of Statistics, Russian oil companies
supplied 4.1 million tons of crude oil in January-March to Belarus'
two oil refineries, which represents a 25-27 percent decrease on the
year. The delivery target for 2007 nevertheless remains unchanged
at 21.5 million tons.
8. Russia-Poland Meat Stand-off Affects Belarus
On April 27, Prime Minister Sergey Sidorskiy called Russia's recent
restrictions on imports of Belarusian meat, dairy, and fish products
absurd and unacceptable as they seriously damage the Belarusian food
industry. In early 2006, Russia's food safety watchdog,
Rosselkhoznadzor, inspected 23 Belarusian meat factories and banned
20 from exporting to Russia on minor technical grounds. The true
"fault" of these factories was the purchase of Polish meat for their
production purposes. In the fall of 2005, Russia banned imports and
re-imports of Polish meat for quality reasons.
9. Slump in Sugar Exports to Russia Part of a Broader Deal
Belarus' on-the-year sugar exports to Russia fell 86.6 percent from
January to March. Belarus and Russia signed a sugar agreement in
late March to reduce Belarus' sugar exports from 180 thousand tons
in 2007 to 100 thousand tons in 2008. The agreement became a part
of a broader deal between the two countries to remove certain
restrictions in mutual trade for 2007. For example, the
Russia-Belarus 2007 trade agreement signed in late March helped
increase Russian beer on-the-year imports in January-February by 62
percent.
10. Imports of Inexpensive Moldovan Wines Reduced
Belarus' imports of inexpensive wines from Moldova -- which
represents 90 percent of the Belarusian market -- decreased on the
year in January-March by 58 percent. The slump was caused by the
Moldovan government's requirement to export wine materials to
Belarus and Ukraine only via a newly established joint venture. In
the meantime, wine imports from Bulgaria rose by 30 percent, from
Italy by 34 percent, and from France by 3 percent. Nevertheless,
the additional imports from these three countries did not fully
compensate for the decrease in Moldovan wine imports.
DOMESTIC ECONOMY
--------------
11. Expensive Internet Slows Down E-trade in Belarus
At the "IT in Trade and Services Sector" conference on April 27,
independent expert Sergey Povalishev named expensive Internet access
as the major problem for Belarus' nascent e-business. Internet
prices in Minsk are higher than in Moscow but comparable with those
in other places in Russia. Povalishev also cited excessive
licensing and expensive registration of domain names as other
impediments to e-trade in Belarus. In addition, internet
advertising on Belarusian websites is virtually non-existent,
comprising only USD 1.5 million of Belarus' overall USD 60 million
advertising market.
12. Belshina to Stop Internet Sales
Belarusian tire manufacturer Belshina told Prime-Tass news service
on April 27 that it was allowed to stop selling its products
electronically and set its product prices independently. The
decision was made by the governmental oil and chemical industry
agency Belneftekhim, which revoked its own decision that obliged all
subordinate manufacturers, including Belshina, to sell products over
the internet. Although e-sales helped Belshina increase its exports
in 2006 by 140 percent, unstable prices scared off many of its
traditional consumers, including U.S. tractor company Caterpillar.
Belshina hopes to use this new sales strategy to build long-term
relations with its consumers and improve maintenance and technical
support.
MINSK 00000358 003 OF 003
13. QUOTE OF THE WEEK
On April 27, President Lukashenko outlined the GOB's strategy for
selling government property:
"All want to get our property for a song. Pay us big money and we
will sell you what works poorly, but we will not sell what works
well."
STEWART
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MAY 3, 2007
1. The following are brief items of interest compiled by Embassy
Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Former Political Prisoner Banned From Traveling Abroad (para. 2)
- Over 4,500 Signatures Collected to Challenge the Religion Law
(para. 3)
- GOB to Review Former Monastery Reconstruction (para. 4)
- Chernobyl Liquidators Not Allowed to Debate Benefits Bill (para.
5)
- Harassment Against Opposition Leader's Wife Continues (para. 6)
Domestic Economy
--------------
- Less Russian Crude Oil Supplied to Belarus in 2007 (para. 7)
- Russia-Poland Meat Stand-off Affects Belarus (para. 8)
- Slump in Sugar Exports to Russia Part of a Broader Deal (para. 9)
- Imports of Inexpensive Moldovan Wines Reduced (para. 10)
International Trade and Investment
--------------
- Expensive Internet Slows Down E-trade in Belarus (para. 11)
- Belshina to Stop Internet Sales (para. 12)
- QUOTE OF THE WEEK (para. 13)
CIVIL SOCIETY
--------------
2. Former Political Prisoner Banned From Traveling Abroad
On April 29, opposition activist, former MP and political prisoner
Sergey Skrebets informed independent mass media that he was banned
from traveling abroad. Minsk District Passport and Visa Services
notified Skrebets that he cannot leave Belarus until he paid all the
damages he owes to the GOB. [Note: In 2006, the GOB found Skrebets
guilty of embezzlement and bank loans fraud and mandated him to
repay USD 700,000 (BYR 1.5 billion). End note.] Skrebets claims
his property was confiscated, and though he never pleaded guilty, he
is consistently paying off the damages. Skrebets is appealing the
decision to overturn the travel ban.
3. Over 4,500 Signatures Collected to Challenge the Religion Law
As of May 2, the Protestant New Life Church (NLC) web site announced
that over 4,500 people across Belarus signed a petition to challenge
the 2002 law on religious freedom and religious organizations. The
organizers aim to collect at least 50,000 signatures to protest the
law during the signature collection campaign, which started on April
22. Christian communities maintain that the law heavily restricts
their activities, suppresses freedom of religion, and legalizes
GOB's administrative and criminal prosecution of individuals for
their religious beliefs. NLC lawyer Sergey Lukanin considered the
ongoing campaign a success, citing reactions from GOB ideology
officers and the regional authorities' invitation to discuss the
campaign with a Protestant pastor.
4. GOB to Review Former Monastery Reconstruction
On May 2, BelaPAN independent news agency reported that following a
petition from the St. Joseph Roman Catholic community, the
Presidential Administration established an interagency commission to
study plans for the reconstruction of the former Bernardine
monastery building in central Minsk. Prominent historians and
members of the Catholic community urged the government to abandon
plans to convert the monastery into a five-star hotel and an
entertainment center and to return it to the community instead. The
interagency commission will be in charge of monitoring site research
and archeological works and also reviewing any incoming projects for
reconstruction.
5. Chernobyl Liquidators Not Allowed to Debate Benefits Bill
Despite an invitation from Presidential Administration Deputy Head
Natalya Petkevich, Chernobyl Blast Aftermath Liquidators Leader
Aleksandr Volchanin was not allowed to attend the May 3
parliamentary hearings on the bill for abolishing liquidators'
benefits. Petkevich's invitation followed a petition, signed by 360
liquidators, protesting cancellation of free medical treatment,
extra paid leave, and early retirement at age 55. Chernobyl Blast
Aftermath Liquidators plan to hold a founding conference on May 19
to establish an association and unite 126,200 military and civilian
workers affected by the blast.
6. Harassment Against Opposition Leader's Wife Continues
MINSK 00000358 002 OF 003
On April 29, BelaPAN independent news agency reported that de facto
opposition leader Aleksandr Milinkevich's wife Inna Kulei filed a
criminal lawsuit with the prosecutor's office after her personal
information was posted on a web site advertising sexual services.
Kulei says she has been receiving a number of sexually explicit
phone calls and believes her cell phone number was purposefully
disclosed to insult and discredit her. In March, Milinkevich's car
was splashed with acid and Kulei's car was vandalized with graffiti
and two flat tires. Kulei attributed the elevated harassment to her
successful activities as the coordinator of educational programs
assisting expelled youth in finding study abroad opportunities.
INTERNATIONAL TRADE AND INVESTMENT
--------------
7. Less Russian Crude Oil Supplied to Belarus in 2007
According to the Ministry of Statistics, Russian oil companies
supplied 4.1 million tons of crude oil in January-March to Belarus'
two oil refineries, which represents a 25-27 percent decrease on the
year. The delivery target for 2007 nevertheless remains unchanged
at 21.5 million tons.
8. Russia-Poland Meat Stand-off Affects Belarus
On April 27, Prime Minister Sergey Sidorskiy called Russia's recent
restrictions on imports of Belarusian meat, dairy, and fish products
absurd and unacceptable as they seriously damage the Belarusian food
industry. In early 2006, Russia's food safety watchdog,
Rosselkhoznadzor, inspected 23 Belarusian meat factories and banned
20 from exporting to Russia on minor technical grounds. The true
"fault" of these factories was the purchase of Polish meat for their
production purposes. In the fall of 2005, Russia banned imports and
re-imports of Polish meat for quality reasons.
9. Slump in Sugar Exports to Russia Part of a Broader Deal
Belarus' on-the-year sugar exports to Russia fell 86.6 percent from
January to March. Belarus and Russia signed a sugar agreement in
late March to reduce Belarus' sugar exports from 180 thousand tons
in 2007 to 100 thousand tons in 2008. The agreement became a part
of a broader deal between the two countries to remove certain
restrictions in mutual trade for 2007. For example, the
Russia-Belarus 2007 trade agreement signed in late March helped
increase Russian beer on-the-year imports in January-February by 62
percent.
10. Imports of Inexpensive Moldovan Wines Reduced
Belarus' imports of inexpensive wines from Moldova -- which
represents 90 percent of the Belarusian market -- decreased on the
year in January-March by 58 percent. The slump was caused by the
Moldovan government's requirement to export wine materials to
Belarus and Ukraine only via a newly established joint venture. In
the meantime, wine imports from Bulgaria rose by 30 percent, from
Italy by 34 percent, and from France by 3 percent. Nevertheless,
the additional imports from these three countries did not fully
compensate for the decrease in Moldovan wine imports.
DOMESTIC ECONOMY
--------------
11. Expensive Internet Slows Down E-trade in Belarus
At the "IT in Trade and Services Sector" conference on April 27,
independent expert Sergey Povalishev named expensive Internet access
as the major problem for Belarus' nascent e-business. Internet
prices in Minsk are higher than in Moscow but comparable with those
in other places in Russia. Povalishev also cited excessive
licensing and expensive registration of domain names as other
impediments to e-trade in Belarus. In addition, internet
advertising on Belarusian websites is virtually non-existent,
comprising only USD 1.5 million of Belarus' overall USD 60 million
advertising market.
12. Belshina to Stop Internet Sales
Belarusian tire manufacturer Belshina told Prime-Tass news service
on April 27 that it was allowed to stop selling its products
electronically and set its product prices independently. The
decision was made by the governmental oil and chemical industry
agency Belneftekhim, which revoked its own decision that obliged all
subordinate manufacturers, including Belshina, to sell products over
the internet. Although e-sales helped Belshina increase its exports
in 2006 by 140 percent, unstable prices scared off many of its
traditional consumers, including U.S. tractor company Caterpillar.
Belshina hopes to use this new sales strategy to build long-term
relations with its consumers and improve maintenance and technical
support.
MINSK 00000358 003 OF 003
13. QUOTE OF THE WEEK
On April 27, President Lukashenko outlined the GOB's strategy for
selling government property:
"All want to get our property for a song. Pay us big money and we
will sell you what works poorly, but we will not sell what works
well."
STEWART