Identifier
Created
Classification
Origin
09MINSK131
2009-04-24 15:09:00
UNCLASSIFIED
Embassy Minsk
Cable title:
BELARUS WEEKLY POL/ECON REPORT - APRIL 24, 2009
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UNCLAS SECTION 01 OF 02 MINSK 000131
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - APRIL 24, 2009
MINSK 00000131 001.2 OF 002
UNCLAS SECTION 01 OF 02 MINSK 000131
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - APRIL 24, 2009
MINSK 00000131 001.2 OF 002
1. The following are brief items of interest compiled by
Embassy Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Lukashenka Delivers Annual Address to Nation and Parliament
(para. 2)
- An Opposition Youth Activist Wanted (para. 3)
- Malady Front Member Jailed (para. 4)
- Human Rights NGO Denied Registration Appeal (para. 5)
Domestic Economy
--------------
- National Bank Pledges Stability of the Belarusian Ruble in the
2nd Quarter (para. 6)
- Lukashenka: We Will Not Tolerate Losses (para. 7)
Foreign Trade
--------------
- National Bank Further Liberalizes Import Payments (para. 8)
- GOB Introduces Prohibitive Import Tariffs (para. 9)
Quote of the Week (para. 10)
--------------
--------------
Civil Society
--------------
2. Lukashenka Delivers Annual Address to Nation and Parliament
Lukashenka offered little new in a more than two-hour long
annual speech addressed to the nation and the Parliament April
23. Devoting the largest part of his speech to the crisis-hit
economy, he yet again praised the Belarusian (i.e. his own)
model of economic development, claiming the world's leading
nations are currently following in his footsteps (by having
government intervene in the economy). He asserted that Belarus
will be the first to recover from the crisis. Lukashenka
pledged to allow selective liberalization of the economy to the
extent it does not encroach on his rule but emphasized he will
make sure "productions are protected" and "jobs are preserved".
Departing from his prepared remarks, he blamed the U.S. for
starting the global financial crisis, repeatedly called Belarus
"the heart of Europe" and committed himself to building bridges
between the East and the West. He stressed that Belarus is
seeking to continue a dialogue with the EU, including under the
Eastern Partnership Program (EaP) and improve relations with the
U.S., if it lifts sanctions and exercises no pressure on the
GOB. Lukashenka did not make it any clearer if he plans to go
to Prague for EaP summit and lashed out at the opposition
activists who tried to impede his travel there, citing only the
former presidential hopeful Alyaksandr Milinkevich as an
exception.
3. Opposition Youth Activist Wanted
A Minsk district police precinct stated April 17 that opposition
youth activist Tatyana Tishkevich is wanted for allegedly
violating her arrest regulations. Tishkevich was sentenced to
two years of a partial house arrest over participating in an
unsanctioned January 10, 2008, entrepreneurs' demonstration.
The activist is currently studying in Poland after she was
expelled from a Belarusian school and would be subject to arrest
upon her return to Belarus.
4. Malady Front Member Jailed
A Brest district court sentenced Malady Front member Mikhail
Ilyin to ten days in jail April 23. Police charged Ilyin with
alleged minor hooliganism when the activist protested communism
by placing a lavatory next to the Lenin monument in downtown
Brest on April 22.
5. Human Rights NGO Denied Registration Appeal
The Supreme Court denied April 22 an appeal filed by the
prominent human rights NGO Nasha Vyasna to challenge the Justice
Ministry registration ban. The NGO founders maintained that
they would submit another registration application yet again and
would continue their regular activities despite the denial.
--------------
Domestic Economy
--------------
6. National Bank Pledges Stability of the Belarusian Ruble in
the 2nd Quarter
MINSK 00000131 002.2 OF 002
The Presidential press service reported April 20 that during his
routine report to Lukashenka the Chairman of the Board of the
National Bank (NB) Pyotr Prokopovich pledged to keep the
fluctuation of the Belarusian ruble (BYR) against the basket of
currencies (Euro, US dollar and Russian ruble) in the second
quarter of the year within one percent corridor. He also
assured that the National Bank will meet all targets of the
country's 2009 monetary and credit plan. At the same time,
according to the data received by Prime TASS news agency from a
source in the National Bank, Belarusians bought 74.8% more and
sold 14.6% less cash hard currency than in January-February
2008. Purchases of cash currency have allegedly started
surpassing sales ever since last October.
7. Lukashenka: We Will Not Tolerate Losses
According to the presidential press service, Lukashenka
expressed serious concern about the country's economic situation
during the quarterly report made by the GOB and the NB April 17
on the country's social and economic development in the first
quarter and threatened senior government and industry officials
with dismissals and prohibited any loss-making starting April 1.
He instructed the State Control Committee, the country's main
inspection agency, to examine operations of each and every
loss-making enterprise. Prime Minister Sergei Sidorsky sounded
more optimistic claiming all industrial products manufactured in
March were sold successfully. He nevertheless argued that major
industrial enterprises should be supported promptly via cheap
loans. To conclude the discussion Lukashenka assured that he
will react harshly if the GOB fails to meet all targets set for
the economy in the first six months of the year.
--------------
Foreign Trade
--------------
8. National Bank Further Liberalizes Import Payments
According to media reports, the National Bank sent a circular
letter to all Belarusian banks April 15 to allow Belarusian
importers making advance payments to their suppliers from
accounts in Belarusian banks and from funds received as loans
both from foreign lenders and Belarusian banks. The letter
marks a significant progress as the previous NB letter, dated
January 28, allowed such payments only from funds received from
foreign lenders.
9. GOB Introduces Prohibitive Import Tariffs
According to media reports, Lukashenka signed edict 214 on April
21 to introduce prohibitive import tariffs on major vegetables
and consumer goods. The move, explained by the GOB as intended
to protect domestic production, includes a six-month 180% import
tariff on potatoes, onion, cabbage, carrots and beetroots, a
nine-month, 40% tariff on meat, 30% tariff on wine, and a 25%
tariff on some milk products. New, prohibitive and indefinite
import tariffs on consumer goods include a 30% tariff on
clothing, and 25-40% tariffs on consumer electronics and some
other products. Post expects that the edict may not be welcomed
by Russian manufacturers/suppliers and may add extra tension in
Belarus' economic relations with its main trade partner.
--------------
Quote of the Week
--------------
10. Speaking at a joint news conference with his Latvian
counterpart in Riga April 22 Foreign Minister Sergei Martynov
said: "There were no people in Belarus who were detained for
their political views. There were people with certain political
views who were detained on concrete criminal charges."
MOORE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - APRIL 24, 2009
MINSK 00000131 001.2 OF 002
1. The following are brief items of interest compiled by
Embassy Minsk.
TABLE OF CONTENTS
Civil Society
--------------
- Lukashenka Delivers Annual Address to Nation and Parliament
(para. 2)
- An Opposition Youth Activist Wanted (para. 3)
- Malady Front Member Jailed (para. 4)
- Human Rights NGO Denied Registration Appeal (para. 5)
Domestic Economy
--------------
- National Bank Pledges Stability of the Belarusian Ruble in the
2nd Quarter (para. 6)
- Lukashenka: We Will Not Tolerate Losses (para. 7)
Foreign Trade
--------------
- National Bank Further Liberalizes Import Payments (para. 8)
- GOB Introduces Prohibitive Import Tariffs (para. 9)
Quote of the Week (para. 10)
--------------
--------------
Civil Society
--------------
2. Lukashenka Delivers Annual Address to Nation and Parliament
Lukashenka offered little new in a more than two-hour long
annual speech addressed to the nation and the Parliament April
23. Devoting the largest part of his speech to the crisis-hit
economy, he yet again praised the Belarusian (i.e. his own)
model of economic development, claiming the world's leading
nations are currently following in his footsteps (by having
government intervene in the economy). He asserted that Belarus
will be the first to recover from the crisis. Lukashenka
pledged to allow selective liberalization of the economy to the
extent it does not encroach on his rule but emphasized he will
make sure "productions are protected" and "jobs are preserved".
Departing from his prepared remarks, he blamed the U.S. for
starting the global financial crisis, repeatedly called Belarus
"the heart of Europe" and committed himself to building bridges
between the East and the West. He stressed that Belarus is
seeking to continue a dialogue with the EU, including under the
Eastern Partnership Program (EaP) and improve relations with the
U.S., if it lifts sanctions and exercises no pressure on the
GOB. Lukashenka did not make it any clearer if he plans to go
to Prague for EaP summit and lashed out at the opposition
activists who tried to impede his travel there, citing only the
former presidential hopeful Alyaksandr Milinkevich as an
exception.
3. Opposition Youth Activist Wanted
A Minsk district police precinct stated April 17 that opposition
youth activist Tatyana Tishkevich is wanted for allegedly
violating her arrest regulations. Tishkevich was sentenced to
two years of a partial house arrest over participating in an
unsanctioned January 10, 2008, entrepreneurs' demonstration.
The activist is currently studying in Poland after she was
expelled from a Belarusian school and would be subject to arrest
upon her return to Belarus.
4. Malady Front Member Jailed
A Brest district court sentenced Malady Front member Mikhail
Ilyin to ten days in jail April 23. Police charged Ilyin with
alleged minor hooliganism when the activist protested communism
by placing a lavatory next to the Lenin monument in downtown
Brest on April 22.
5. Human Rights NGO Denied Registration Appeal
The Supreme Court denied April 22 an appeal filed by the
prominent human rights NGO Nasha Vyasna to challenge the Justice
Ministry registration ban. The NGO founders maintained that
they would submit another registration application yet again and
would continue their regular activities despite the denial.
--------------
Domestic Economy
--------------
6. National Bank Pledges Stability of the Belarusian Ruble in
the 2nd Quarter
MINSK 00000131 002.2 OF 002
The Presidential press service reported April 20 that during his
routine report to Lukashenka the Chairman of the Board of the
National Bank (NB) Pyotr Prokopovich pledged to keep the
fluctuation of the Belarusian ruble (BYR) against the basket of
currencies (Euro, US dollar and Russian ruble) in the second
quarter of the year within one percent corridor. He also
assured that the National Bank will meet all targets of the
country's 2009 monetary and credit plan. At the same time,
according to the data received by Prime TASS news agency from a
source in the National Bank, Belarusians bought 74.8% more and
sold 14.6% less cash hard currency than in January-February
2008. Purchases of cash currency have allegedly started
surpassing sales ever since last October.
7. Lukashenka: We Will Not Tolerate Losses
According to the presidential press service, Lukashenka
expressed serious concern about the country's economic situation
during the quarterly report made by the GOB and the NB April 17
on the country's social and economic development in the first
quarter and threatened senior government and industry officials
with dismissals and prohibited any loss-making starting April 1.
He instructed the State Control Committee, the country's main
inspection agency, to examine operations of each and every
loss-making enterprise. Prime Minister Sergei Sidorsky sounded
more optimistic claiming all industrial products manufactured in
March were sold successfully. He nevertheless argued that major
industrial enterprises should be supported promptly via cheap
loans. To conclude the discussion Lukashenka assured that he
will react harshly if the GOB fails to meet all targets set for
the economy in the first six months of the year.
--------------
Foreign Trade
--------------
8. National Bank Further Liberalizes Import Payments
According to media reports, the National Bank sent a circular
letter to all Belarusian banks April 15 to allow Belarusian
importers making advance payments to their suppliers from
accounts in Belarusian banks and from funds received as loans
both from foreign lenders and Belarusian banks. The letter
marks a significant progress as the previous NB letter, dated
January 28, allowed such payments only from funds received from
foreign lenders.
9. GOB Introduces Prohibitive Import Tariffs
According to media reports, Lukashenka signed edict 214 on April
21 to introduce prohibitive import tariffs on major vegetables
and consumer goods. The move, explained by the GOB as intended
to protect domestic production, includes a six-month 180% import
tariff on potatoes, onion, cabbage, carrots and beetroots, a
nine-month, 40% tariff on meat, 30% tariff on wine, and a 25%
tariff on some milk products. New, prohibitive and indefinite
import tariffs on consumer goods include a 30% tariff on
clothing, and 25-40% tariffs on consumer electronics and some
other products. Post expects that the edict may not be welcomed
by Russian manufacturers/suppliers and may add extra tension in
Belarus' economic relations with its main trade partner.
--------------
Quote of the Week
--------------
10. Speaking at a joint news conference with his Latvian
counterpart in Riga April 22 Foreign Minister Sergei Martynov
said: "There were no people in Belarus who were detained for
their political views. There were people with certain political
views who were detained on concrete criminal charges."
MOORE