EMBASSY MINSK WEEKLY POL/ECON REPORT - February 15, 2008

UNCLAS SECTION 01 OF 02 MINSK 000115 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV PREL PHUM ECON ENRG BO SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - February 15, 2008 ¶1. The following are brief items of interest compiled by Embassy Minsk. TABLE OF CONTENTS Civil Society -------------- - Entrepreneurs in Baranovichi Protest Regulations (para. 2) - GOB to Introduce New Requirements for Popular Majors (para. 3) - Gomel Opposition Activists Fined and Jailed (para. 4) - Opposition Leader Denied Venues for Public Meetings (para. 5) - Brest Holocaust Memorial Vandalized (para. 6) International Relations -------------- - IAEA to Train Belarus' Nuclear Power Plant Staff (para. 7) Domestic Economy -------------- - Consumer Prices on the Rise (para. 8) - Bank Reserves Down in January (para. 9) International Trade -------------- - Polish Holding Acquires Belarus' Sombelbank (para. 10) Quote of the Week (para. 11) -------------- -------------- Civil Society -------------- ¶2. Entrepreneurs in Baranovichi Protest Regulations Over 300 entrepreneurs gathered in central Baranovichi February 11 to protest re-registration requirements and hiring restrictions. Police detained Malady Front activists Yaroslav Grishchenya and Vadim Begeniy, transported them home, and released them without charges. On February 12, local small business leader Nikolay Chernous was charged with organizing an unsanctioned rally and will be tried February 22. ¶3. GOB to Introduce New Requirements for Popular Majors A February 8 Presidential Edict will require high school graduates seeking to major in journalism, public administration, international relations, law, and customs administration to take special professional tests or undergo psychological interviews. The test will replace the previously planned requirement to obtain a letter of recommendation from a local executive committee, which could have caused "corruption", according to MP Vladimir Zdanovich, Chair of parliament's standing committee on education. He also alleged that universities should "make a decision on the applicant's suitability for a profession." ¶4. Gomel Opposition Activists Fined and Jailed A Gomel district court sentenced local For Freedom (FF) movement coordinator and United Civic Party (UCP) activist Vladimir Katsora to seven days in jail February 13 over alleged violations of mass event regulations. The police searched the UCP office and arrested the activist February 12. Earlier that day police detained local opposition youth Ales Leshkevich and Vladimir Shumilin. The two youth activists were each fined USD 430 for distributing leaflets, seized by the police, on an upcoming meeting with FF leader Aleksandr Milinkevich, which city authorities banned. Katsora called the verdict unlawful. ¶5. Opposition Leader Denied Venues for Public Meetings On February 8, Kobrin local authorities denied former Presidential hopeful and For Freedom (FF) movement leader Aleksandr Milinkevich a venue to hold a meeting with the public. FF activists applied for authorities' approval and were refused in Vitebsk, Bobruysk, Mogilyov, Molodechno, Zhodino, Gomel, and Rechytsa reportedly due to the busy schedule of the facilities. Milinkevich maintained he would continue to apply for permits, and if refused would meet with the public in the open air. ¶6. Brest Holocaust Memorial Vandalized Vandals burnt wreaths and flowers laid at a Holocaust victims' memorial in central Brest February 10. Local Jewish community leader Boris Bruk informed the police of the incident, but expressed no hope the vandals would be brought to justice. He believed a MINSK 00000115 002 OF 002 neo-Nazi group was active and had been attacking the monument for six years. The police unsuccessfully investigated previous incidents and closed criminal cases without charges. -------------- International Relations -------------- ¶7. IAEA to Train Belarus' Nuclear Power Plant Staff Deputy Energy Minister Mikhail Mikhodyuk told media at a Nuclear Power Trade Show opening February 12 that Belarus would work with the IAEA on training personnel for Belarus' future nuclear power plant (NPP). He emphasized close cooperation with the IAEA in security and other areas. -------------- Domestic Economy -------------- ¶8. Consumer Prices on the Rise The Ministry of Statistics and Analysis reported February 11 that the consumer price index went up 2.5% in January 2008, the highest rate for the first month of the year since 2003. Food prices increased by 1.3% in January, non-food items by 0.5%, and consumer services prices by 8.4%. Some of the largest increases were in utility fees, including natural gas (90.9%),water (15%), electricity (3.5%). School fees rose by 18.4%. ¶9. Bank Reserves Down in January The National Bank of Belarus (NBB) reported February 8 that gold and foreign exchange reserves decreased by 1.3% in January 2008 to USD 4.9 billion. Foreign currency reserves declined 3.5% to USD 3.9 billion as of February 1. Meanwhile, the volume of precious metals and stones in NBB reserves increased by 9.6% in January and reached USD 928 million. The NBB projects an increase of gold and foreign exchange reserves in 2008 of up to USD 5.5 billion and of more than USD 10 billion by 2011. -------------- International Trade -------------- ¶10. Polish Holding Acquires Belarus' Sombelbank Media reported February 11 that Polish Getin Holding S.A. purchased a 75.04% stake of the Minsk-based joint venture Sombelbank. Sombelbank will reportedly provide consumer lending services and open new offices in regional cities and towns in Belarus. Getin manages banks, leasing, financial, investment, and insurance companies in Central and Eastern Europe, and its assets now exceed USD 7.2 billion. Sombelbank's assets increased by 42.9% in 2007 and reached 54.9 billion rubles (USD 25.6 million) as of January 1, ¶2008. -------------- ¶11. Quote of the Week -------------- Never a Beatles fan, Lukashenko called into question the maxim that money can't buy you love, telling journalism students and faculty at Belarus State University "may Hussein rest in peace. Bush didn't give us half a million [dollars] to build the National Library, so why should I respect him?" Stewart