EMBASSY MINSK WEEKLY POL/ECON REPORT - August 10, 2007

UNCLAS SECTION 01 OF 03 MINSK 000689

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - August 10, 2007


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

TABLE OF CONTENTS

Civil Society
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- Malady Front Appeals Registration Denial (para. 2)
- Human Rights Group to Assist Political Victims (para. 3)
- Minsk Authorities Deny Application for Demonstration (para. 4)
- Catholics and Protestants Pray Together In Grodno (para. 5)
- Svetlogorsk Merchants Protest Audits and Seizures (para. 6)
- Teen Charged with Working for Unregistered Group (para. 7)

Domestic Economy
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- Belarus' Reserves up 76 Percent through July (para. 8)
- Belarus Sixth of Eight in CIS GDP Growth (para. 9)

International Trade
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- Iranian Parliamentarians Visit Minsk (para. 10)
- Iranian Company to Invest USD 100 million (para. 11)
- Chavez Confirms Belarus Applied for Loan (para. 12)
- Belarus to Continue Talks with Russia over Loan (para. 13)

- Quote of the Week (para. 14)

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Civil Society
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2. Malady Front Appeals Registration Denial

The opposition youth organization Malady Front (MF) filed an appeal
with the Minsk City Court on August 3, challenging its latest
registration denial. The court announced the denial on July 10
ostensibly due to "errors" in the MF charter. MF spokesperson Boris
Goretskiy asserted the group will keep applying for registration
despite the bureaucracy and GOB's pretexts for denial.


3. Human Rights Group to Assist Political Victims

Opposition and civil society members met on August 3 and announced
plans to create a database of persecuted political activists. The
group's co-founder and prominent human rights advocate Igor
Rynkevich maintained that the group will provide assistance to
activists facing criminal and administrative charges or police
detention. Rynkevich said that the victims should be entitled to
compensation by a post-Lukashenka government. The group also issued
a statement protesting recent repression of opposition youth
activists.


4. Minsk Authorities Deny Application for Demonstration

On August 7, Minsk officials rejected an application by the "For
Freedom" movement to hold demonstrations in solidarity with
political prisoners held by the government of Belarus. The official
reason given was that the requested locations were unavailable due
to preparations for Minsk's 940th anniversary celebration.


5. Catholics and Protestants Pray Together in Grodno

On August 8, approximately 70 Catholics and Protestants, including
Uniates, joined together in collective prayer for freedom of
conscience in Belarus and the preservation of certain historical
sites in Grodno. Organizers plan to hold similar prayer sessions on
a monthly basis.


6. Svetlogorsk Merchants Protest Audits and Seizures

On August 6, approximately 150 market vendors held a protest in the
central square of Svetlogorsk, Gomel oblast, in response to a recent
wave of unscheduled audits and seizures of thousands of dollars
worth of merchandise. Government agents from tax, sanitation and
other agencies conducted the raids. Local officials said that these
actions were part of a move by the regional organized crime
department to combat racketeering and corrupt officials. The
protestors called on vendors throughout Belarus to participate in a
nationwide strike on September 1.


7. Teen Charged with Working for Unregistered Group

On August 7, authorities charged Anastasiya Azarka, an 18-year old
Malady Front activist from the city of Nesvizh, Minsk Oblast, with
acting on behalf of an unregistered political organization. As
noted above in para 2, authorities have continued to reject the

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registration application of MF since its creation over a decade ago.
Several of its members are currently facing sentences similar to
Azarka's or are serving prison terms for MF-related activities. If
convicted, Azarka faces fines or imprisonment for up to two years
under Article 193-1 of the Belarusian Criminal Code.

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Domestic Economy
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8. Belarus' Reserves up 76 percent through July

According to the data posted on Belarus' National bank website, the
country's hard currency and gold reserves increased 76 percent in
January-July period to USD 3.1 billion. The major increase came
from Russian energy firm Gazprom's USD 625 million transfer to
Belarus' national development fund. This payment was for the first
12.5 percent of its eventual 50 percent stake in Beltransgaz.


9. Belarus Sixth of Eight in CIS GDP Growth

The CIS Statistics Committee ranked Belarus six out of eight CIS
countries in GDP growth for the first half of 2007, with a growth
rate of 8.6 percent. This places Belarus behind Russia at 9.1 and
ahead of Ukraine at 7.9. Azerbaijan led the rankings with a growth
rate of 35.1 percent, followed by Armenia at 11.2, Uzbekistan at
9.7, and Kyrgyzstan with 9.2. Tajikstan was last, with a rate of
7.3 percent. The four other CIS countries did not have data
available for the ranking. The Committee also reported that
Belarus, along with Russia, was fifth in industrial output growth
with a rate of 7.7 percent.

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International Trade
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10. Iranian Parliamentarians Visit Minsk

On August 5, a delegation from the parliament of Iran arrived in
Minsk for a five-day visit. The trip includes meetings with GOB
representatives from the National Assembly and visits to significant
industrial, commercial and historical sites. In public remarks, the
delegation's leader Mohammad Mehdi Pour-Fatemis stressed the
strategic importance of Belarus-Iran relations, mutual concern with
U.S. dominance in a unipolar world order, and the two countries'
active involvement in the Non-Aligned Movement. Both sides
expressed plans to expand economic cooperation and trade. Anatoly
Pavlovich, a Belarusian legislator, spoke of hopes to increase
annual trade between Iran and Belarus -- which currently amounts to
less than 50 million dollars -- by ten times in the next five years.



11. Iranian Company to Invest USD 100 Million

Iranian Ambassador to Minsk Abdolhamid Fekri announced August 6 that
an Iranian company will invest USD 100 million in a hydroelectric
plant in Belarus. He also mentioned that other Iranian companies
are considering pursuing similar interests in Belarus, and that a
joint working group is planning to hold a meeting in Tehran to
discuss cooperative energy projects.


12. Chavez Confirms Belarus Applied for Loan

Venezuelan President Hugo Chavez confirmed that President Lukashenka
requested a loan. Belarus seeks to secure funds to offset the
higher energy prices it now pays to Russia. Speaking at a news
conference in Buenos Aires on August 7, Chavez said the request is
under consideration, as his country always tries to help friends,
who, like Venezuela, constantly face aggression and attacks from the
United States.


13. Belarus to Continue Talks with Russia over Loan

Belarus' First Deputy Prime Minister Vladimir Semashko told
reporters on August 8 that the GOB will continue talks with Russia
to secure a USD 1.5 billion loan to mitigate higher energy costs.
Russia reportedly insisted on settling all outstanding payments
before discussing the loan. According to Semashko, Belarus needs
foreign investment and loans to maintain its high economic growth.

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14. Quote of the Week
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President Lukashenka on the wonders of the internet:

"It's time to end the anarchy in the Internet. We should not allow
this great technical achievement of humankind to turn into an
information sewer," he said, suggesting enacting a law that would
specify the status of online media outlets. "We'll not be pioneers

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in this regard, such practices exist in many states," he noted.

MOORE