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UNCLAS SECTION 01 OF 04 MINSK 000994 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG KTDB BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - SEPTEMBER 8, 
2006 
 
MINSK 00000994  001.4 OF 004 
 
 
¶1. (U) The following are brief items of interest compiled by 
Embassy Minsk. 
 
TABLE OF CONTENTS 
 
LOCAL ELECTIONS 
--------------- 
 
- Opposition Party Forms Bloc For Independence (para. 2) 
- Opposition Coalition Secretariat In Operation (para. 3) 
- Brest Opposition Questions Council Members (para. 4) 
 
OPPOSITION POLITICS 
------------------- 
 
- Milinkevich to Sue National Television (para. 5) 
- Entrepreneurs Join Political Council (para. 6) 
- Convicted Opposition Activist Moved to New Location (para. 7) 
 
CIVIL SOCIETY 
------------- 
 
- Church Praying for Help Against Forced Eviction (para. 8) 
- Police Search Activists' Apartments (para. 9) 
- Partnership Families to File Suit Against Authorities (para. 10) 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- Union Audit Results in Firings (para. 11) 
 
TRADE AND INVESTMENT 
-------------------- 
 
- Embassy Hosts Luncheon With U.S. Businesses (para. 12) 
- Breweries Up for Foreign Investment (para. 13) 
- Belarus Oil Refinery Representation in Boston (para. 14) 
 
DOMESTIC ECONOMICS 
------------------ 
 
- State Monopoly to Lower Internet Prices, Eventually (para. 15) 
- Gold Sales Increase (para. 16) 
 
- QUOTE OF THE WEEK (para. 17) 
 
--------------- 
Local Elections 
--------------- 
 
¶2. (U) Opposition Party Forms Bloc for Independence 
 
The Belarusian Popular Front (BPF) on September 4 agreed to 
organize a "Forum for Independence" in October to unite all 
opposition groups into a "Belarusian Bloc" or "Bloc for 
Independence."  According to BPF deputy chairman Aleksey 
Yanukevich, the forum would unite political parties, NGOs, artists, 
intellectuals, and prominent public figures to determine a common 
approach to solving Belarus' current political and economical 
situation.  Participants would adopt a declaration and become 
members of the Bloc's organizing committee.  Single opposition 
candidate Aleksandr Milinkevich would be the chair.  The Bloc's 
main objectives are to show citizens, the international community, 
and Russia that Belarus' civil society and political groups will 
preserve the country's independence. 
 
¶3. (U) Opposition Coalition Secretariat In Operation 
 
The United Democratic Forces (UDF) Political Council on September 5 
adopted the composition of the UDF's coordinating body during local 
elections, the Secretariat.  Based on Milinkevich's pre-election 
camp, the Secretariat consists of 24 members, including 16 from the 
BPF, one from the Party of Progress, one from the Belarusian Social 
Democratic Party (BSDP) Hramada, and one Malady Front member. 
Chair of the Secretariat Viktor Ivashkevich noted that not all UDF 
organizations were included because they failed to submit 
candidates before the deadline.  The Belarusian Party of Communists 
(BPC) was allegedly preoccupied with reregistration of their party 
while the United Civic Party (UPC) simply did not participate. 
 
¶4. (U) Brest Opposition Questions Council Members 
 
Head of the Brest regional BSDP Igor Maslovskiy on September 5 sent 
letters to six pro-government members of the city soviet demanding 
they explain how their tenure in office fulfilled their campaign 
promises, improved their districts, and lowered the price of 
utility services.  Maslovskiy added that the local BPC would send 
approximately 20 similar letters to other Brest city council 
 
MINSK 00000994  002.4 OF 004 
 
 
members. 
 
------------------- 
Opposition Politics 
------------------- 
 
¶5. (U) Milinkevich To Sue National Television 
 
Milinkevich and his wife Inna Kulei announced on September 4 their 
intentions to sue the state-controlled First National Channel (BT) 
for slander.  On August 23, BT's news program Panorama claimed 
Milinkevich's son Vitovt was expelled from a training course in 
Poland for starting a drunken brawl.  On August 27, BT alleged that 
Inna's son dodged the draft by filing a fake health certificate at 
Brest's induction station.  The last straw for Milinkevich was BT's 
September 3 expose accusing Milinkevich's eldest son of buying 
houses in their home village Bershty (Grodno Oblast) with Western 
money.  Milinkevich called the accusations absolute lies. 
Milinkevich admitted he purchased two houses in Bershty, but said 
they were old and abandoned and would be used as part of his new 
agro-tourism business. 
 
¶6. (U) Entrepreneurs Join Political Council 
 
On September 5, the UDF Political Council granted seats to 
representatives of a politically active market vendors group.  In 
an interview with independent online news source BelaPan, 
Milinkevich welcomed the entrepreneurs' decision to work with 
opposition forces and abandon their old practice of avoiding 
politics.  Milinkevich claimed the UDF would work with any 
entrepreneur group that shares the opposition's goals. 
 
¶7. (U) Convicted Opposition Activist Moved to New Location 
 
Authorities on September 5 relocated opposition leader Nikolay 
Statkevich, who is serving a two-year restricted freedom sentence 
for organizing an unsanctioned rally, from Sitnitsa in the Brest 
oblast to Pukhovichi in the Minsk oblast.  The decision came after 
a prosecutor "discovered" that Statkevich, a Minsk resident, had no 
right to serve his term in the Brest oblast.  Statkevich said his 
father, who lives near Sitnitsa, requested that Statkevich serve 
his time in Sitnitsa so that he could easily visit his son. 
Statkevich's father is 79 and battling cancer.  Statkevich 
concluded that his political activities were the reason for his 
transfer. 
 
------------- 
Civil Society 
------------- 
 
¶8. (U) Church Praying For Help Against Forced Eviction 
 
Members of the New Life Church on September 4 began a week of fast 
and prayers in a standoff against the Minsk city authorities' 
eviction order.  Parishioners meet daily at 19:00 at the New Life 
Church to pray for God's assistance.  The church's legal consultant 
Sergey Lukanin expects Protestants throughout Belarus and those 
from abroad to join the effort, noting that Christians from 63 
countries have recently visited the church's website.  On July 21, 
the Minsk City Economic Court ordered the New Life Church to sell 
its converted cow barn to the city for USD 17,500 and pay USD 250 
dollars in litigation fees.  The local authorities instructed the 
church members to vacate the premises by September 1, but the GOB 
has yet to enforce this ultimatum.  Local authorities attempted to 
gain access to the building on September 8, but were denied access 
by the church's guard. 
 
¶9. (U) Police Search Activists' Apartments 
 
Police in Vitebsk and Minsk on September 5 seapched three 
apartments belonging to youth activists, claiming the searches were 
connected to the politically based criminal cases of activists 
Kristina Shatikova, Denis Denisov, and Tatyana Yelovaya.  Vitebsk 
investigator Olga Zil authorized the searches at Zhanna Yamaikina, 
Nikita Abramenko, and Yuriy Yegorov's apartments, seizing cell 
phones, computers, and leaflets.  Abramenko was taken to a police 
station for questioning. 
 
¶10. (U) Partnership Families To File Suit Against Authorities 
 
During a September 5 press conference, Valeriy Dranchuk, father of 
imprisoned election observer of the NGO Partnership Timofey 
Dranchuk, announced plans to sue the authorities for violating 
family members' human rights by denying relatives visits with the 
jailed Partnership activists during pre-detention.  Aleksandr 
Shalaiko, a recently released Partnership activist, suggested the 
suit be filed after the Minsk City Court decides on Partnership 
leader Nikolay Astreiko's and Dranchuk's appeals on September 15. 
 
MINSK 00000994  003.4 OF 004 
 
 
On the same day, Astreiko's mother, Yevgeniya, was barred from 
visiting her son at Volodarskiy Prison in Minsk.  Prison 
authorities claimed that Mrs. Astreiko's visitors pass expired and 
told her to apply to the Minsk City Court chairman for an 
extension.  However, Astreiko's father was not allowed to see the 
chairman and told that granting permission for visits would be 
discussed after the September 15 appeal. 
 
----------------------- 
International Relations 
----------------------- 
 
¶11. (U) Union Audit Results In Firings 
 
Chairman of Russia's Audit Chamber Sergey Stepashin told reporters 
September 5 in Minsk that his agency's audits of the Belarusian- 
Russian Union State budget resulted in "major staff replacements" 
within Union agencies.  Criminal cases were not pending, however, 
because a joint-prosecutorial office of the Union does not exist, 
making it unclear to which prosecutors, Belarusian or Russian, the 
evidence should be sent to.  In 2004, Stepashin ruled that funds 
going to the Union State budget were missing or misappropriated. 
 
-------------------- 
Trade and Investment 
-------------------- 
 
¶12. (SBU) Embassy Hosts Luncheon For U.S. Business Representation 
 
Charge Jonathan Moore September 7 hosted a luncheon with 25 
representatives of U.S. businesses.  The business people explained 
to Emboffs the peculiarities of Belarusian regulatory requirements, 
the entry of Russian investors into the country, their successes 
and failures, and their mixed expectations for the Belarusian 
economy.  Charge stressed that one of the Embassy's 
responsibilities is to assist U.S. business in Belarus when needed. 
The business leaders thanked Charge for the luncheon and requested 
that the Embassy host similar events in the near future. 
 
¶13. (U) Breweries Up For Foreign Investment 
 
The Presidential Administration's press service September 5 
announced plans to hold an open investment tender to sell stakes in 
brewing companies.  Priorbank, the largest private bank in Belarus, 
has managed the state's shares in the largest breweries since 2003. 
After a meeting with Priorbank CEO Sergey Kostyuchenko, Lukashenko 
decided breweries were ready for foreign investors.  According to 
Kostyuchenko, three of the world's leading brewing companies 
submitted offers, although he failed to identify the companies or 
announce when the tender will be held. 
 
¶14. (U) Belarus Oil Representation In Boston 
 
An official with the state-run petrochemical industry Belneftekhim 
September 5 reported that the company would open a trade 
representation office in Boston in mid-September.  According to the 
official, trade representations are part of Belneftekhim's plan to 
increase sales while reducing middlemen.  Belneftekhim has 
representation offices in Russia, Ukraine, Latvia, Germany and 
China, and trading companies in Russia, Ukraine, and Latvia.  The 
company intends to open trading companies in Germany, China, and 
Lithuania and 15 representation offices in the Netherlands, Poland, 
Iran, Turkey, Argentina, and China.  Belneftekhim controls 41 
companies and accounts for 35% of Belarus' exports. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶15. (U) State Monopoly To Lower Internet Prices, Eventually 
 
On September 5, Deputy Minister of Communications Vladimir Teslyuk 
claimed Belarus' telecommunications monopoly Beltelecom would lower 
its internet access rates.  Teslyuk admitted that Beltelecom's 
rates were high, but commented that this was Beltelecom's policy. 
However, Beltelecom was working close with the Ministry of 
Communications on the issue and Teslyuk predicted Beltelecom's 
rates would decrease "when the time comes." 
 
¶16. (U) Gold Sales Increase 
 
The National Bank of Belarus on September 7 reported that sales of 
gold bars increased 360% year-on-year to 802.9 kilograms.  The 
National Bank sells gold bars to retail customers in 1, 5, 10, 20, 
50, 100, 250, 500, and 1000-gram increments. 
 
----------------- 
Quote of the Week 
 
MINSK 00000994  004.4 OF 004 
 
 
----------------- 
 
¶17. (U) During his two-day visit to Minsk, Iranian Foreign Minister 
Mottaki stated that Western states had "no right" to demand Iran 
close its nuclear program, adding that Belarus shared this opinion: 
 
"Nuclear powers that used nuclear weapons against the cities of 
Hiroshima and Nagasaki have no right to demand other states be 
prohibited from possessing nuclear technology." 
 
MOORE