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DE RUEHSK #0671/01 1741221
ZNR UUUUU ZZH
R 231221Z JUN 06
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 03 MINSK 000671 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ETRD
SUBJECT: EMBASSY MINSK WEEKLY REPORT - June 23, 2006 
 
 
MINSK 00000671  001.2 OF 003 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  State Weekly Says Belarus Should Freeze Opposition U.S. 
Accounts 
 
On June 22, BelTA correspondent Viktor Lovgach wrote in the pro- 
government weekly "Seven Dnei" (Seven Days) that Alexander 
Lukashenko and his aides do not have accounts in U.S. banks and the 
US leadership simply ridicules itself with "menacing" statements 
about freezing Belarusian accounts.  Lovgach suggested that in 
response Belarusian leadership should freeze the accounts of 
Belarusian opposition members who regularly travel to Washington. 
In an adjacent article, an unidentified author implied that several 
former leaders of corrupt regimes still have assets in US banks. 
For example, the author claimed that the former president of 
Philippines Ferdinand Marcos still resides in the United States and 
has about USD 10 billion U.S. accounts.  [Note:  Marcos died in 
1989.] 
 
¶3.  Belarusian and Russian Lawmakers Concerned about Funding of 
Union State Security Programs 
 
On June 21, at a meeting in northern Belarus, a standing committee 
of the Belarusian-Russian Parliamentary Assembly expressed concern 
about inadequate funding for joint security and anti-crime 
programs.  Russia's representative on the Committee on Security, 
Defense and Crime Prevention, Valery Bykov, said that financing has 
decreased because the countries failed to propose new programs. 
According to Bykov, Belarus and Russia were supposed to provide 260 
million Russian rubles for security and crime prevention programs 
in 2006 but actual funding shrunk from 31.5 to 8.4 percent of the 
total Belarus-Russian union budget.  Bykov also said that the 
Parliamentary Assembly should adopt a statement at its plenary 
meeting in connection with a planned gas-price hike for Belarus. 
Bykov explained, "I consider it is important for both Belarus and 
Russia. We should at least express our attitude to the issue or 
stop playing these games and declare that Belarus and Russia go 
their separate ways." 
 
¶4.  Belarus Recognizes Montenegro 
 
On June 21, the Belarusian Foreign Ministry announced that Belarus 
recognizes Montenegro.  The foreign office expressed "respect for 
the friendly Slavic state and hope for the development of mutually 
beneficial cooperation."   Montenegro declared independence from 
Serbia early this month following its referendum on May 21. 
 
------------- 
Civil Society 
------------- 
 
¶5.  Belarus Opposition Activist Jailed For 3 Years for Slandering 
Lukashenko 
 
A Belarusian court sentenced opposition activist Nikolai Razumov to 
three years in jail for slandering President Alexander Lukashenko. 
During the presidential campaign of opposition candidate Alexander 
Milinkevich, Razumov said that Lukashenko was involved in the 
disappearance of opposition politicians Viktor Gonchar, Anatoly 
Krasovsky, and Yuri Zakharenko.  Razumov has been in jail since 
March 14. 
 
-------------------- 
Opposition Coalition 
-------------------- 
 
¶6.  Opposition Leaders discuss threats to Belarus' independence 
with officials in Brussels 
 
On June 21, following a meeting in Brussels with European 
Commission President Jose Manuel Barroso, Belarusian opposition 
leader Aleksandr Milinkevich told reporters that the EU and the 
United States should declare any Belarusian referendum on a 
proposed state union with Russia to be illegal and described such a 
referendum as a threat to Belarusian independence.  Milinkevich 
also called upon the Belarusian government to release 17 political 
prisoners thrown in jail after the March election protests. 
Milinkevich and Vintsuk Vyachorka, leader of the Belarusian Popular 
Front, also met with several EU committee chairs to discuss 
possible projects to support civil society in Belarus. 
 
¶7.  Belarusian Party of Communists Seek More Consolidation of 
Opposition Forces 
 
On June 18, the Central Committee of the Belarusian Party of 
Communists (BPC) announced that BPC's principal goals are the 
 
MINSK 00000671  002.4 OF 003 
 
 
further consolidation of opposition forces and strengthening the 
role of the left wing of the opposition alliance.  BPC leader 
Sergei Kalyakin asserted that the nationwide opposition campaign 
led by Aleksandr Milinkevich failed to set specific goals and 
strategies.  Kalyakin criticized an attempt to merge the BPC with 
the pro-government Communist Party of Belarus (CPB) as stage- 
managed by the Lukashenko government.  CPB Central Committee 
Secretary Georgy Atamanov urged the BPC send representatives to a 
 
SIPDIS 
July 15 conference on the merger.  However, BPC to leaders 
threatened to expel from the party all members participating in the 
conference.  The Central Committee also ordered BPC chapters to 
prepare for local elections tentatively scheduled for January 14, 
¶2007. 
 
------- 
Economy 
------- 
 
¶8.  Belarus' Oil Product Export Prices Up 40.5 Percent on Year 
 
On June 22, an official with Belarus' Statistics Ministry 
reportedly told Prime-Tass that Belarus' average contract prices of 
oil product exports rose 40.5 percent on the year between January 
and April to USD 424 per ton and that average contract prices of 
crude oil imports increased 49.3 percent to USD 258 per ton.  The 
prices of oil products exports to the Commonwealth of Independent 
States (CIS) reached USD 533 per ton, an increase of 41.4 percent 
on the year between January and April, and prices of oil products 
exports to foreign non-CIS countries rose to USD 419 per ton, up 39 
percent on the year.  Oil imports from Russia rose 19.4 percent to 
7.304 million tons.  Belarus exported 5.181 million tons of oil 
products between January and April, a rise of 11.4 percent. 
Exports to the CIS countries jumped nine times to 224,200 tons, 
while exports to non-CIS countries reached 4.957 million tons, up 
9.1 percent. 
 
 
¶9.  Statistics Ministry claims 32,000 small enterprises in Belarus 
 
The Belarusian Statistics Ministry announced that the number of 
small enterprises shrank to 32,400 on April 1 from 33,000 at the 
end of 2005.  The small business sector reportedly employed around 
379,500 people.  According to the Economic Ministry, small 
businesses accounted for six percent of the country's total 
industrial output, 11.3 percent of the retail turnover, 14.1 
percent of exports, and 31.6 percent of imports. Small business' 
share in domestic sales was 19.1 percent.  About 41 percent of all 
small enterprises were engaged in trade and food services, 23.5 
percent in industrial production, 12.3 percent in construction, 5.5 
percent in transport services, and one percent in farming.  Half of 
all small enterprises are based in Minsk and 11.5 percent in the 
Minsk region.  About 182,000 businesses were sole proprietorships 
as of May 1, 2006, an increase of 4,092 since the beginning of the 
year.  According to the Belarusian government, small enterprises 
paid 200 billion rubels in taxes since January 1. 
 
¶10.  Belarus To Increase Shipment of Potash Fertilizers through 
Klaipeda Port 
 
On June 20, during the second Belarusian-Lithuanian economic forum, 
Belarusian Potassium Company's Deputy Director General for 
Logistics, Sergei Sobol, announced Belarus is ready to transship at 
least 1.8 million tons of potash fertilizers through the Klaipeda 
seaport.  Sobol noted that about 1.3 million tons of fertilizer 
were exported through Klaipeda last year.  According to Sobol, 
Belarus and Lithuania are interested in expanding cooperation 
between the Klaipeda port and Belarusian Potassium Company and that 
Belarus requested Lithuania to discount tariffs for Belarusian 
cargos. 
 
------- 
Society 
------- 
 
¶11.  Belarusian Lawmaker Opposes Longer School Program 
 
The chair of the Standing Committee on International Affairs and 
National Security, Nikolai Cherginets, urged the government to 
reconsider its decision to institute a twelve-year school education 
program on the grounds that longer curricula would be onerous for 
young women.  Under the new program schoolchildren would begin 
school at six or seven years of age and finish at 18 or 19. 
Cherginets cited statistical data suggesting that up to 25 percent 
of Belarusian women aged 18 or 19 are married and asked members of 
Belarus' parliament, "How will pregnant schoolgirls endure the 
heavy stress of graduation tests, how will they take university 
admission exams?  General education was a twelve-year program 
during the Soviet era but was extended to 11 years in the early 
1990s. 
 
¶12.  Government Bans Sale of Beer to Persons Under 18 
 
MINSK 00000671  003.4 OF 003 
 
 
 
On June 17, a directive adopted by the Belarusian Council of 
Ministers banned the sale of beer and other low-alcohol drinks to 
persons under 18 years of age.  Issued in March, the directive also 
prohibits the sale of such beverages in educational and healthcare 
institutions, theaters, industrial companies' buildings, 
governmental agencies, construction sites, sports facilities, 
filling stations, mobile retail outlets and vending machines.  The 
Health Ministry proposed the ban two years ago to curb the growing 
use of alcohol among teenagers. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶13.  Belarus' MFA Press Secretary Andrei Popov offered this comment 
on the US Presidential Executive Order authorizing the Secretary of 
the Treasury to designate and freeze property of Belarusian 
President Alexander Lukashenko in the United States: 
 
"It is no news for us. The United States obviously continues the 
policy of disseminating false information about Belarus. This is 
why we confirm the proposal put forward earlier by the president of 
Belarus to donate these alleged funds, if found, of course, for the 
needs of disadvantaged U.S. citizens." 
 
KROL