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DE RUEHSK #0602/01 1600922
ZNR UUUUU ZZH
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FM AMEMBASSY MINSK
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INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 MINSK 000602 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET EAGR ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 2, 2006 
 
 
MINSK 00000602  001.2 OF 002 
 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
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International Relations 
----------------------- 
 
¶2.  Belarus Skeptical about UN Human Rights Special Rapporteur 
 
On May 31, following consultations with representatives from 
Russia's MFA, Belarus' Deputy Foreign Minister Viktor Gaisenok said 
that Belarus would express misgivings regarding the possible 
appointment of a special rapporteur on Belarus by the newly formed 
UN Human Rights Council. Belarus did not apply for membership in 
the new 47-member council, which replaced the Human Rights 
Commission as of May 9. Gaisenok explained that Belarus regards 
membership in ECOSOC and other UN agencies as more important. 
However, he said that Belarus considers the Council's activities to 
be very important and may offer several proposals to help guide the 
Council along UN principles. Gaisenok expressed hope that the 
Council would be free of political bias and treat all states 
equally. 
 
¶3.  Belarus to Discuss Partial Transfer of Oil Revenues to Russia 
 
On May 31, Prime-Tass reported that the Tariff and Non-tariff 
regulation commission with the Council of Ministers of the Union 
State of Belarus and Russia plans to address the distribution of 
the export duties on crude oil and oil products this month. The 
commission will consider transferring a part of Belarus' revenues 
from exports of oil products to the Russian federal budget per 
Article 4 of the Customs Union Agreement between Belarus and Russia 
of November 1995.  In 2005, Belarus imported 19.2 million tons of 
crude from Russia, up 8.7% from last year, and re-exported 13.487 
million tons of oil products, up 4%. Belarus earned an average of 
USD 360 per ton for its oil exports, while it paid an average price 
of USD 218 per ton for imports from Russia. 
 
¶4.  Belarus Seeks Coordination of Sugar Examination with Russia 
 
In a letter to Mikhail Fradkov, Prime Minister of Russia, 
Belarusian Prime Minster Sergey Sidorsky wrote that Belarus needs 
to coordinate sugar examination procedures with Russia. According 
to Sidorsky, differences in examination procedures between Belarus 
and Russia resulted in the seizure of 30 train carloads of sugar, 
worth about USD 1.1 million, by the Federal Customs Service (FCS) 
of Russia.  Despite being marked "beet sugar," FCS confiscated the 
entire load claiming it was cane sugar. According to the GOB, 
regulations in effect at that time allowed Belarus to classify cane 
sugar as beet sugar. 
 
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Civil Society 
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¶5. BKGB To Bring NGO to Court, Chief Alleges Terrorist Plot 
 
On May 31, BKGB Chief Stepan Sukhorenko told Belarus' House of 
Representatives that the criminal case against four members of the 
NGO Partnerstvo (Partnership) would be brought to court soon. 
Sukhorenko's announcement came 100 days after Timofey Dranchuk, 
Aleksandr Shalaiko, Nikolay Astreiko, and Enira Bronitskaya were 
jailed and charged with operating an illegal organization that 
encroaches on people's rights. Dranchuk's sister, Yuliya, stated 
that they had learned that the closed-door trial would start in 
late June. Neither Dranchuk's parents nor his sister have been 
allowed to meet with him since his arrest. If the four are found 
guilty, they could be sentenced to up to three years in prison. 
Sukhorenko also accused Partnerstvo of planning terrorist attacks 
during Belarus' recent election and alleged that "some people from 
abroad" were involved in the plot.  He specifically accused David 
Hamilton with the National Democratic Institute (NDI) of financing 
these operations with USD 12 million through NDI's Kiev office. 
 
¶6.  National Lottery to Support Pro-government Youth Union 
 
On May 25, Aleksandr Lukashenko signed a presidential edict 
authorizing a new national lottery in Belarus for financing 
activities of the pro-government Belarusian Republican Youth 
Movement (BRSM).  The Finance Ministry will create the online 
lottery called "Yunost" (Youth). RMTz Yunost, a tourist agency 
established by the BRSM, will oversee the sale of lottery ticket 
and the distribution of prizes.  The Finance Ministry will 
supervise the lottery's organization and operations.  The proceeds 
of the lottery will finance BRSM's activities, the salaries of the 
organization's senior officials, and the maintenance of BRSM's 
Central Committee.  According to Lukashenko's spokesperson, the 
goals of the lottery edict are to improve state youth policy and 
support the activities of the BRSM in addressing the most important 
youth problems. 
 
MINSK 00000602  002.2 OF 002 
 
 
 
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Economy 
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¶7. Gazprom Threatens to Quadruple Gas Prices for Belarus 
 
On May 30, Gazprom reportedly announced that it expects to raise 
natural gas prices for Belarus from USD 46.68 to USD 200 per 1,000 
cubic meters. Gazprom had earlier announced their intention to 
triple prices.  According to the newspaper "Kommersant," Gazprom 
threatened to quadruple gas prices after Belarus refused to cede 
control of its pipelines to Russia, which Gazprom has demanded for 
years in exchange for low gas prices. Following a similar pricing 
dispute in 2004, Gazprom briefly cut gas supplies to Belarus. 
 
¶8.  Belarus, Lukoil form Joint Venture 
 
On May 29, President Alexander Lukashenko met with the head of 
Russia's Lukoil, Vagit Alekperov, to discuss increasing cooperation 
on several energy projects.  Belarus and Lukoil have agreed to a 
joint venture for the production of additives to engine oils. 
Lukoil is one of the biggest purchasers of Belarusian mechanical 
engineering products. Alekperov said that Belarus and Lukoil have 
many common interests. 
 
¶9.  Belarus' Beer Output Up 16.4% 
 
On May 30, Belarus' Statistics Ministry reported that Belarusian 
beer companies increased their output of beer by 16.4% on the year 
in January-April to 8.9 million decaliters. Belarus' state-owned 
food holding Belgospischeprom produced 4.3 million decaliters of 
beer, up 7.1%.  Independent companies produced 1.756 million 
decaliters, an increase of 112.8% on the year. Beer sales rose 
29.3% on the year in January-April to 4.776 million decaliters. 
Beer prices rose 6.4% in the period and 0.2% on the month in April. 
 
¶10.  Belarus Needs $21 million to Build Wood Waste Storehouse 
 
On May 30, Belarus' Deputy Minister of Energy, Mikhail Mikhadyuk, 
said that the Belarusian energy ministry needs USD 21 million to 
build a storehouse for waste wood. Belarus plans to build 15 waste 
wood-fired power plants in addition to the one operating in 
Osipovichi, Mogilyov region. However, there are still several 
unresolved problems, including fuel storage and delivery, fuel 
quality and ash disposal.  Mikhadyuk said that the Ministry of 
Forest Management should be responsible for collecting and building 
stocks of waste wood.  According to Mikhadyuk, the Belarusian 
government plans to spend USD 750 million on a program to increase 
consumption of local fuels over the next five years. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶11.  Earlier this spring, Interior Minister Vladimir Naumov ordered 
that professional and amateur performing groups formed by police 
officers and Interior Troops hold concerts in recreation aras and 
children' summer camps between May 1 and September 1.  On Ma 29, 
Olga Karach, an opposition member of the Viebsk city council, 
offered this comment: 
 
"Theproblem of our country is that everybody does somene else's 
work. Factory managers organize electins, school headmasters are 
engaged in ideologicalwork, and the police give amateur concerts 
insted of catching criminals." 
 
KROL