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UNCLAS SECTION 01 OF 03 MINSK 000653 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ETRD EINV
SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 20, 2006 
 
 
MINSK 00000653  001.6 OF 003 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  Putin Signals Hike in Gas Price to Belarus, Impatient on Union 
 
During a Shanghai Cooperation Organization Press Conference, 
Russian President Vladimir Putin suggested that Moscow plans to 
raise gas prices for Belarus next year and asserted, "they won't 
manage to get freebies at our expense."  Putin referred to the USD 
46.68 per tcm that Belarus currently pays Russia for gas.  Putin 
questioned why Russia charges Belarusians less than Russians.  When 
a journalist said he wanted to know when Belarus and Russia would 
have a full-fledged union, Putin answered, "I also would like to 
know."  Putin denied any tensions in relations between Russia and 
Belarus but stated, "there's no possibility to create a [single] 
state before the deadline that we have agreed upon either." 
 
¶3.  Belarusian Authorities Expand List of Banned Foreigners 
 
On June 12, the Belarusian Interior Ministry announced the 
expansion of its unpublished list of foreign officials barred 
from entering Belarus.  According to the Ministry, among the 
foreigners whose presence in Belarus is either "prohibited or 
undesirable," are those who have committed crimes in Belarus 
and were deported from the country.  Moreover, the ban includes 
those suspected of being members of "extremist or terrorist" 
organizations.  The Ministry estimates that approximately 
40,000 persons are barred entry and that 10,000 have been added 
to the ban over the past two years.  The Ministry also reported 
that Belarusian law-enforcement agencies are creating a data 
bank of foreigners who reside in Belarus. 
 
¶4.  Belarus Stations Customs Posts at Belarusian-Russian border 
 
On June 13, Prime-Tass announced that a source in Belarus' Internal 
Affairs Ministry (MVD) revealed that Belarus has temporarily posted 
MVD and State Customs Committee (SCC) officers in customs control 
checkpoints along the Belarusian-Russian border after a series of 
violations involving Russian cargo shipments being transported via 
or to Belarus.  Customs and security officers reportedly inform 
drivers about rules regulating the import of excisable goods and 
escort convoys.  According to Prime-Tass' source, the "Russian side 
does not think it is compulsory to warn carriers about it." 
 
¶5.  Iran's Caspian Airlines to Fly Directly between Tehran and 
Minsk 
 
The Iranian embassy in Minsk announced that on June 22 Iran's 
Caspian Airlines will begin direct flights from Tehran to Minsk. 
Commercial aircraft will fly from Iran to Belarus on Thursdays. 
The airline will alternate flights to Budapest via Minsk and to 
Minsk via Budapest each week.  Caspian Airlines signed a 
cooperation agreement with Belavia, Belarus' national airline, on 
June 7.  The Iranian embassy predicted that the service would 
foster Belarusian-Iranian economic cooperation and tourism. 
 
--------- 
Elections 
--------- 
 
¶6.  Head of Central Election Commission Reports on Local Elections 
 
On June 9, Belarus' Central Election Commission Chairperson Lidiya 
Yermoshina reported on the upcoming local elections to President 
Lukashenko.  Lukashenko tentatively consented to scheduling the 
elections for local councils of deputies for January 14, 2007, 
though elections may be postponed until January 28.  Yermoshina 
stated that the election would cost some 22 billion rubles (2,143 
per USD 1).  About 24,000 members of local councils were elected in 
the previous local elections held in early 2003, which opposition 
leaders condemned as undemocratic.  In late May, President 
Lukashenko asserted that the few opposition candidates who won 
their local elections had benefited from voter apathy and added 
that local councils should assume the coordinating role in solving 
local problems. 
 
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Civil Society 
------------- 
 
¶7.  Police Detain 50 Activists Rally near Russian Embassy 
 
On June 16, Police detained about 50 opposition activists 
participating in the "Days of Solidarity" demonstration outside the 
Russian embassy in Minsk in support of political prisoners. 
Authorities released the demonstrators without charge after 
recording their personal information.  Several news websites 
 
MINSK 00000653  002.4 OF 003 
 
 
reported that around 100 demonstrated by standing in line and 
lighting candles.  Police dispersed the rally after 10 minutes. 
Opposition activists have commemorated the "Day of Solidarity" on 
the sixteenth day of every month since September 16, 2005, the 
sixth anniversary of the disappearance of opposition politician 
Viktor Gonchar and businessman Anatoly Krasovsky. [Note:  the 
Russian Embassy is adjacent to the U.S. Embassy in Minsk.] 
 
¶8.  Opposition Ends Hunger Strike, 10 Arrested in Minsk 
 
On June 18, youth opposition activists ended their hunger strike in 
Minsk.  About 20 people were still taking part in the hunger strike 
that began in Soligorsk on May 29 and ended on June 7.  The hunger 
strikers had been demanding that the BKGB cease criminal 
prosecution of several leaders of Malady Front, including Dmitry 
Dashkevich, Boris Goretsky, Sergei Lisichonok, Sergei Marchik and 
Oleg Korban, who are charged with operating an unregistered 
organization.  Moreover, the hunger strikers demanded that Maksim 
Semenchik be reinstated as a student at a vocational school in 
Soligorsk and Aleksei Yanushevsky as a student of Belarusian State 
Teachers' Training University in Minsk.  On June 13, police had 
arrested and two hours later released ten opposition hunger 
strikers in central Minsk.  Several of the activists allegedly had 
leaflets and were charged with distributing illegal printed 
materials.  Administrative offenses panels will hear the hunger 
strikers' cases. 
 
¶9.  Youths Flash Mob in Minsk Supports Opposition Hunger Strikers 
 
On June 14, a flash mob of about 30 young people in downtown Minsk 
demonstrated support for a nationwide hunger strike against the 
politically motivated prosecution of opposition activists.  At 8 
p.m. the youths sat on the stairs of a downtown department store 
and held plastic plates with the word "hunger-strike" written on 
them, and dispersed 10 minutes later.  No one was detained. 
 
¶10.  Newspaper Editor Applies for Refugee Status in Ukraine 
 
Andrei Shentorovich, the owner and chief editor of the regional 
newspapers "Mestnaya Gazeta," has confirmed he has been in Ukraine 
since March 29 and intends to seek refugee status in Ukraine. 
Shentorovich claimed he had been informed that Belarusian 
authorities intend to place him in custody indefinitely and that 
Belarusian police are watching his home in Volkovysk.  He cited his 
newspaper's investigation into illicit activities of a local slate 
factory as the likely reason for GOB harassment.  The newspaper 
owner noted that if the Ukrainian government rejects his 
application for refugee status, he will return to Belarus. 
 
¶11.  Over 30,000 People Sign Petition for Kozulin's Release 
 
On June 15, the press office of the Belarusian Social Democratic 
Party "Hramada" announced that more than 30,000 people have signed 
a petition demanding the release of former presidential candidate 
Aleksandr Kozulin, who is currently in jail awaiting trial on 
criminal charges.  The press office also claimed that 218 well 
known persons offered their "personal guarantees" that Kozulin 
would appear for trial.  Kozulin has been held in the Zhodino pre- 
trial detention center since March 25.  Belarusian authorities 
charged him with two counts of hooliganism under Part 2 of the 
Criminal Code's Article 339 and with disturbing the public peace 
under Article 342 for entering the National Press Center to hold a 
news conference on February 17 and for attempting to register for 
the government-organized Third All-Belarusian People's Assembly on 
March 2. 
 
¶12.  Airport Authorities Detain Wife of Aleksandr Kozulin 
 
On June 9, Belarusian airport authorities detained Irina Kozulina, 
wife of jailed former presidential candidate Aleksandr Kozulin. 
According to Kozulina's daughter, Yulia, officials seized her 
mother's suitcase as Kozulina waited at passport control.  About 40 
minutes later, authorities returned with Kozulina's suitcase, 
opened and its contents disheveled.  After returning to passport 
control, Kozulina boarded the aircraft seven minutes before take 
off.  Kozulina was departing for Washington, D.C. to attend a 
conference on breast cancer. 
 
¶13.  Pensioner Sentenced for Accosting Pro-Opposition Activists 
 
This week the Gomel regional court sentenced a 61-year-old pro- 
Lukashenko pensioner, Nikolai Tsarkov, to one year of restricted 
freedom for hooliganism.  On March 14, upon seeing a portrait of 
former presidential candidate Aleksandr Milinkevich in front of a 
grocery store, Tsarkov shouted, "we have a great president 
[Lukashenko].  He pays my pension," and allegedly attempted to 
strike a pro-Milinkevich activist with a stool. 
 
------- 
Economy 
------- 
 
MINSK 00000653  003.4 OF 003 
 
 
¶14.  Belarus' Revenues Up USD 500 Million Due to VAT with Russia 
 
On June 14, Deputy Finance Minister Ivan Shunko reported the 
Belarusian state budget has received an additional USD 500 million 
revenues due to a 2005 agreement.  Under the agreement, imports of 
goods are subject to indirect taxes that are collected in the 
country of destination except for goods imported for processing or 
transit or for goods that are exempted from taxes in accordance 
with laws of the two countries.  In May, during a meeting in Moscow 
experts discussed taxation and quality control of imported goods. 
Indirect taxes will be collected by Russian and Belarusian tax 
agencies, whereas excises will be collected by customs agencies. 
Deputy Tax Minister Larisa Kondratova predicted that the 2007 VAT 
between Belarus and Russia would be easier since Russia will 
shorten its deadline for payment confirmation to two months, 
corresponding to the term set in Belarus. 
 
¶15.  Lukashenko Says Liberalizing Telecom Important for WTO Rules 
 
On June 12, President Lukashenko told Belarus' Communication and IT 
Minister Nikolai Panteley that liberalizing the telecommunication 
market and banning subsidies are important to meet the World Trade 
Organization (WTO) obligations.  According to Belarus' former 
Communication and IT Minister Ivan Rak, Belarus' regulations will 
be upgraded to WTO standards by August 19, 2006.  Rak asserted, 
"the WTO demands to liberalize the telecommunication market, and we 
have developed a liberalization concept for the long-distance 
communication segment, as other segments are not monopolized in 
Belarus."  [Note: the GOB monopolizes all telecommunications in 
Belarus through Beltelecomm and its majority control of all three 
cellular phone companies.] 
 
¶16.  Chinese Bank Invited to Invest in Belarusian Banking Sector 
 
During a June 11-15 visit of Chinese banking executives to Minsk, 
the National Bank of Belarus (NBB) invited one of China's largest 
banks, People's Bank of China, to invest in a financial institution 
in Belarus.  The officials agreed to consider forming a working 
group to facilitate settlements between Belarusian and Chinese 
businesses and to expedite an agreement on personnel training 
between the NBB and the People's Bank of China.  The delegation 
also included representatives of China Export and Credit Insurance 
Corporation, Export and Import Bank of China, Shanghai Pudong 
Development Bank, and China Industry and Commerce Bank. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶17.  On June 16, while visiting the Belarusian National Library, 
President Lukashenko offered this insight regarding the accuracy of 
history textbooks: 
 
"I do not read a lot presently. It is particularly true after I 
studied the way [books] are written, especially history books, 
which I like. I previously thought that books are truthful but it 
turned out that modern books about heads of state and historical 
personalities contain about 80 percent lies.  As for the Soviet- 
time leaders, starting from Vladimir Ilyich Lenin to Joseph Stalin 
to present-day leaders, the share of lies reaches 100 percent." 
 
KROL