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UNCLAS SECTION 01 OF 03 MINSK 001013 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG KTDB BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - SEPTEMBER 18, 
2006 
 
 
MINSK 00001013  001.4 OF 003 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- Chinese Defense Minister Meets with Lukashenko in Minsk (para. 2) 
- Lukashenko Arrives in Havana for NAM Summit (para. 3) 
 
CIVIL SOCIETY 
------------- 
 
- Ex-Parliament Chair Says Lukashenko Should Resign (para. 4) 
- Judge Defers Case against Opposition City Councilmen (para. 5) 
- Opposition Politician Sivchik Arrested in Minsk (para. 6) 
 
TRADE AND INVESTMENT 
-------------------- 
 
- Belarusian Glass Factory, IKEA Negotiate Joint Venture (para. 7) 
 
DOMESTIC ECONOMICS 
------------------ 
 
- Oil Refining Industry Top Paying Employer in Belarus (para. 8) 
- Belarus' VISA Bankcards Turnover Up 110 Percent (para. 9) 
 
- QUOTE OF THE WEEK (para. 10) 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  Chinese Defense Minister Meets with Lukashenko in Minsk 
 
On September 13, while receiving China's Minister of National 
Defense and Vice Chairman of the Military Commission of the 
Communist Party of China Cao Gangchuan, President Lukashenko 
expressed satisfaction with military cooperation with China. 
Lukashenko noted that the two countries had signed more than 220 
military agreements and contracts and described China as a great 
friend of Belarus.  Cao replied that Lukashenko enjoys strong 
support among the Chinese people, including military servicemen. 
Cao arrived in Belarus for discussions on Sino-Belarusian military 
cooperation with Belarusian Defense Minister Leonid Maltsev. 
Following the meeting, Lukashenko presented Cao with Belarus' Order 
of Friendship between Peoples. 
 
¶3.  Lukashenko Arrives in Havana for NAM Summit 
 
Evidently without flying over U.S. territory, Lukashenko landed in 
Havana late on September 14 and attended the Non-Aligned Movement 
(NAM) Conference of Heads of State and Government on September 15 
and 16.  His speech focused on increasing NAM's effectiveness in 
counteracting the West.  Lukashenko also met separately with 
Presidents Hugo Chavez of Venezuela, Mahmoud Ahmadinejad of Iran, 
and Juan Evo Morales of Bolivia.  On September 14, Belarusian 
Foreign Minister Martynov held meetings with the foreign ministers 
of Bolivia, Suriname, and Swaziland and with Cuban Minister of 
Foreign Investment and Economic Cooperation Marta Lomas Morales. 
Martynov and Morales discussed preparations for a meeting of the 
Belarusian-Cuban commission on trade and economic cooperation 
scheduled for late 2006. 
 
------------- 
Civil Society 
------------- 
 
¶4.  Ex-Parliament Chair Says Lukashenko Should Resign 
 
On September 13, former Council of the Republic Chairman Aleksandr 
Voitovich published an internet letter in which he called for 
President Lukashenko to cede power to Prime Minister Sergey 
Sidorsky on September 21 and promised to support Sidorsky as 
"Belarus' legitimate acting president."  Voitovich noted that, 
while the Belarusian constitution as amended by a 2004 referendum 
does not limit the number of presidential terms, the Presidency Law 
sets a two-term limit.  His second term was to expire on September 
20, 2006.  Earlier this month, former opposition presidential 
candidate Aleksandr Kozulin, who is serving a 5 1/2-year prison 
sentence on politically motivated charges, also called upon 
Lukashenko to cede power to Sidorsky on September 21. 
 
 
¶5.  Judge Defers Case against Opposition City Councilman 
 
On September 13, a judge of the Bobruisk City and District Court 
sent back a case against opposition Bobruisk City Councilman Ales 
 
MINSK 00001013  002.4 OF 003 
 
 
Chigir to the police on the grounds that the district prosecutor 
had illegally charged him.  According to the judge's decision, only 
a city prosecutor and prosecutors of a higher rank are authorized 
to issue a warrant against members of elected councils.  Local 
police had charged Chigir with staging an unauthorized 
demonstration and with disobeying police orders in connection with 
Chigir's August 31 protest against being fired from his teaching 
position.  Chigir believes the dismissal was in retaliation for his 
activities as the Mogilev regional head of opposition presidential 
candidate Aleksandr Milinkevich's recent campaign.  He predicts the 
police will appeal the ruling. 
 
¶6.  Opposition Politician Sivchik Arrested in Minsk 
 
On September 12, police arrested former opposition Belarusian 
Popular Front (BPF) Deputy Chair Vyacheslav Sivchik while he was 
meeting with an independent journalist in a Minsk cafe.  On March 
29, police had unsuccessfully attempted to apprehend Sivchik as he 
was leaving a hospital where he received treatment for head 
injuries.  Police severely beat him during the opposition "tent 
city" demonstration in Minsk's October Square following the March 
19 presidential elections.  On May 19, a judge sentenced Sivchik in 
absentia to ten days in jail under Part 1 of the Administrative 
Offenses Code's Article 167, which penalizes participation in an 
unauthorized demonstration.  Sivchik reportedly had left Belarus 
and returned in mid-August. 
 
-------------------- 
Trade and Investment 
-------------------- 
 
¶7.  Belarusian Glass Factory, IKEA Negotiate Joint Venture 
 
On September 12, Belarus' Glass Factory Neman, based in the western 
Grodno region, announced talks with IKEA on joint production of 
3,000 decorative lamps per year.  IKEA is purportedly interested in 
a joint venture because of energy and loan preferences granted to 
Neman plant by President Lukashenko in exchange for increasing the 
state stake in the glass factory to 99.98 percent.  Total state 
support for Neman is estimated to be USD 19.6 million.  Neman was 
established in 1883 and went public in 2004.  The factory produces 
more than 3,000 types of glassware and employs more than 4,000 
people.  Between January and August, Neman increased sales 22.8 
percent on the year to USD 12.7 million.  Meanwhile, Neman's 
exports rose 54 percent to USD 4.2 million. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8.  Oil Refining Industry Top Paying Employer in Belarus 
 
On September 13, the Belarusian Finance Ministry reported that the 
oil refining industry was the highest paying employer in Belarus 
during the first six months of 2006.  During the period, monthly 
pay at oil refining enterprises averaged USD 602.  In contrast, 
agricultural employees had the lowest monthly pay of USD 152, 70 
percent lower than the national average.  Bank employees' monthly 
pay topped the service sector at USD 443.  At the bottom end of the 
sector were paramedics and nurses with an average pay of USD 142. 
Medical professionals and teachers were paid USD 407 and USD 420, 
respectively.  Real average pay increased by 20.1 percent on the 
year in the first six months of 2006.  In June, the average pay 
reportedly totaled USD 282, 18.5 percent more than in June 2005. 
Real income rose by 18.8 percent to USD 173 per capita. 
 
¶9.  Belarus' VISA Bankcards Turnover Up 110 Percent 
 
On September 12, VISA Area Manager Svetlana Georbelidze announced 
that Blarus' VISA bankcards' turnover rose 110 percent beween 
June 2005 and June 2006 to USD 2.19 billion  During that period, 
the number of VISA cards i circulation rose 54.9 percent to 1.383 
million. Meanwhile, there were 13.4 million payments with isa 
cards for goods and services, 3.8 times the pevious year, and the 
volume of payments reached SD 79.3 million, up 3.5 times.  Salary 
cards accunt for 96 percent of all Visa cards in Belarus.  Eleven 
Belarusian banks have become members of the VISA system, and two 
others have applied for membership recently.  According to 
Georbelidze, the number of transactions with VISA cards in trade, 
services and public catering is rising faster than anywhere else in 
the Commonwealth of Independent States. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶10.  During a visit to Belarus by a delegation of hunting experts 
from the Ukrainian State Forestry Committee, Belarusian Forestry 
Ministry Spokeswoman Ruzhena Novitskaya offered the following 
observation about Belarus' experience in breeding bison as proof of 
 
MINSK 00001013  003.4 OF 003 
 
 
her country's comparative development: 
 
"As many as 680 bison are known to dwell in Belarus and, by the end 
of the year, their population is expected to reach 730, which is a 
good indicator against the background of other European countries." 
 
HOGAN