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DE RUEHSK #0123/01 0401228
ZNR UUUUU ZZH ZDK CTE UR SVC
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FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5614
INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS MINSK 000123 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - FEBRUARY 8, 2007 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- GOB, Ukrainian Vice Premiers Hold Energy Talks (para. 2) 
- Ukraine Appoints New Ambassador to Belarus (para. 3) 
- Venezuela to Open Embassy in Belarus (para. 4) 
- Final Demarcation of Belarusian-Lithuanian Border (para. 5) 
 
 
CIVIL SOCIETY 
------------- 
 
- Second Opposition Congress Planned for March 17-18 (para. 6) 
- Mass Arrests of Opposition Youth Activists in Minsk (para. 7) 
- Pressure on Independent Media Increased in 2006 (para. 8) 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
- Iranian Executive in Minsk to Discuss MTZ Plant (para. 9) 
- Horizont, China's Midea Joint Enterprise in Belarus (para. 10) 
 
 
 
DOMESTIC ECONOMY 
---------------- 
- GOB To Apply for World Bank Loan for Nuclear Plant (para. 11) 
- GOB Hikes Domestic Oil Transit Fees (para. 12) 
 
SOCIETY 
------- 
 
- GOB To Appoint Private University Rectors (para. 13) 
- Almost 300,000 in Belarusian Rehab Centers (para. 14) 
- Rehab Center Renovated with US Grant Sits Idle (para. 15) 
 
- QUOTE OF THE WEEK (para. 16) 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  Belarusian, Ukrainian Vice Premiers Hold Energy Talks 
 
On February 7, Belarus' Deputy Prime Minister Vladimir Semashko met 
with his Ukrainian counterpart, Andriy Klyuyev, in Kyiv to discuss 
draft agreements on energy cooperation.  During the consultations, 
Belarusian Ambassador to Ukraine Valentin Vyalichka announced that 
Belarus seeks to boost Ukrainian electricity imports to 3.5 billion 
kilowatt-hours in 2007 from Ukraine's Rivne nuclear power plant via 
the distribution substation in Mikashevichy. 
 
¶3.  Ukraine Appoints New Ambassador to Belarus 
 
On February 6, independent media reported that Ukraine had appointed 
Igor Likhovvy as the new Ambassador to Belarus.  Most recently, he 
served as Minister of Culture and Tourism between October 2005 and 
November 2006.  Mr. Likhovvy will replace former Ambassador 
Valentine Nalivaichenko. 
 
¶4.  Venezuela to Open Embassy in Belarus 
 
On February 5, state and independent media reported on Venezuela's 
plans to open an embassy in Belarus during the first quarter of 
¶2007.  Venezuelan Charge de Affaires to Belarus Ameriko Diaz Nunez 
noted that the Venezuelan government considers cooperation with 
Belarus to be "strategic" and that both Belarus and Venezuela are 
interested in building a multi-polar world. 
 
¶5.  Final Demarcation of Belarusian-Lithuanian Border 
 
On February 2, the GOB announced that Belarusian and Lithuanian 
border guards are verifying final documents for border demarcation. 
Upon verification, experts will seal them with official stamps, 
agree and sign Belarusian and Lithuanian language versions, and 
exchange electronic versions.  The demarcated border is 680 km long. 
 
 
 
------------------- 
Domestic Opposition 
------------------- 
 
¶6.  Next Democratic Congress Planned for March 17-18 
 
On February 1, the majority of the opposition coalition's Political 
Council (PC) members voted to hold another congress on March 17-18 
and called for a mass demonstration on March 25 to celebrate the 
89th anniversary of the Belarusian National Republic.  Former 
presidential candidate Aleksandr Milinkevich, who apparently did not 
participate in the PC vote on setting the date for the congress, had 
earlier stated that he did not comprehend the purpose of the event. 
Milinkevich also argued that the opposition should first formulate a 
common platform that would be "more or less clear to voters." 
 
¶7.  Mass Arrests of Opposition Youth Activists in Minsk 
 
On February 5, Belarusian police arrested 27 members of the "Malady 
Front" (MF) opposition youth organization.  Most arrests occurred 
during an MF central committee meeting in a private apartment. 
After conducting searches of several MF members' homes, authorities 
released all those detained except MF leaders Oleg Korban and Dmitry 
Fedaruk, who remained in BKGB custody until late on February 7. 
Korban and Fedaruk face charges of acting on behalf of an 
unregistered organization under article 193-1 of the Belarusian 
Criminal Code.  This article carries a fine or a prison sentence of 
up to two years. 
 
¶8.  Pressure on Belarus' Independent Media Increased in 2006 
 
On February 5, independent media publicized a report by the 
U.S.-based Committee to Protect Journalists (CPJ) that described GOB 
increased pressure on independent media in Belarus during 2006. 
According to CPJ, pressure was particularly strong during the 
presidential campaign when authorities arrested dozens of Belarusian 
and foreign journalists.  Moreover, authorities denied independent 
media virtually any opportunity to reach their audiences and private 
newspapers were barred from using state controlled distribution 
systems. 
 
---------------------------------- 
International Trade and Investment 
---------------------------------- 
 
¶9.  Iranian Executive in Minsk to Discuss MTZ Plant 
 
On February 7, Iranian Ambassador to Belarus Abdolhamid Fekri 
announced that Iran's Gonabad company top executive would visit 
Belarus during the following week to discuss the construction of a 
Minsk Tractor Works assembly plant in Iran.  Predicting that 
Belarusian-Iranian business would continue to grow, Fekri also 
expressed hope that Belarusian-assembled Samands, Iran's version of 
a Peugeot, would be sold not only in but also exported from Belarus 
and noted that a delegation of Belarusian banking executives is 
currently seeking similar cooperation in Iran. 
 
¶10.  Horizont, China's Midea Joint Enterprise in Belarus 
 
On February 2, Belarusian appliance manufacturer Horizont Deputy 
Director General Gennadiy Ozarov announced that Horizont and Chinese 
Midea Holding Company would establish a joint enterprise to 
manufacture household equipment and appliances.  The enterprise is 
expected to start operation in the first quarter of 2007 at 
Horizont's branch in the northeastern Vitebsk region, where Horizont 
currently produces microwave ovens.  The joint enterprise will be 
registered as a resident of the Vitebsk Free Economic Zone (FEZ). 
According to Ozarov, FEZ registration was one of the main conditions 
of the joint enterprise agreement.  Founded in 1950, Horizont is 
said to be the largest television manufacturer in the Commonwealth 
of Independent States, but also makes DVD players, radio sets, 
microwave ovens, and cable television equipment.  In 2006, Horizont 
reportedly sold 320,000 product units, up 15 percent from 2005. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶11.  GOB To Apply for World Bank Loan for Nuclear Plant 
 
On February 5, Belarusian Academy of Sciences Chairman Mikhail 
Myasnikovich announced that Belarus might apply for a World Bank 
loan to finance nuclear plant construction as a key element of the 
country's energy reform.  The GOB plans to construct two 1,000 MW 
nuclear units at Krasnopolyanskaya by 2013 and 2015.  The units will 
reportedly cost Belarus USD 2.5 to 3 billion.  Earlier this year, 
President Lukashenko instructed the government to expedite 
construction, use Belarusian equipment whenever possible, and 
evaluate technical assistance proposals from Russia, France and 
Germany. 
 
¶12.  GOB Hikes Domestic Oil Transit Fees 
 
On February 5, state and independent press reported that Belarus' 
Ministry of Economics issued a decree to increase average domestic 
oil transit fees from USD 0.41 to USD 0.60 per ton per 100 
kilometers, which would increase GOB revenues by USD 50 million. 
The higher fees are comparable with those in Russia but are still 
significantly lower than in other neighboring countries.  Belarus' 
state-owned Druzhba oil transportation company operates two major 
pipelines running through the Gomel and Novopolotsk regions that 
transport oil to Ukraine, Poland, Hungary, Slovakia, Czech Republic. 
 
 
------- 
Society 
------- 
 
¶13. GOB To Appoint Private University Rectors 
 
On February 2, independent media reported that the GOB had 
authorized the education minister to appoint rectors of private 
institutions of higher learning.  Belarusian House of 
Representatives' Standing committee on Education, Culture, Science 
and Scientific Technological Progress Chair Vladimir Zdanovich 
declared the decision to be final and without debate. 
 
¶14.  Almost 300,000 in Belarusian Rehab Centers 
 
On February 2, Belarusian Health Ministry's Chief Addiction Officer 
Vladimir Maksimchuk reported that 296,039 people in Belarus are 
currently registered at the country's drug and alcohol abuse 
treatment centers.  Registered addicts increased in number by four 
percent in 2006, with the number of minors (under 18 years old) 
rising by five percent and that of women by 15.6 percent.  According 
to Maksimchuk, among those registered, more than 6,000 were drug 
addicts.  Maksimchuk claimed that more than 45,000 alcoholics became 
sober in the last five years.  In 2006, approximately 110,000 people 
were admitted to hospital for alcohol intoxication and more than 
3,000 people died of alcohol intoxication or alcohol-caused 
accident.  Meanwhile, suicides committed under the influence of 
alcohol numbered almost 3,000.  According to Belarus' Ministry of 
Statistics and Analysis, 2006 per-capita sales of alcoholic 
beverages exceeded 2005 sales by 10 percent. 
 
¶15.  U.S.-Supported Rehabilitation Center Sits Idle 
 
On February 3, independent media reported that a rehabilitation 
center at a hospital in the eastern Gomel region currently remains 
inactive.  The center reportedly requires an additional USD 46,700 
to purchase ventilation equipment and complete connections to the 
local sewer system.  By June 2005, the center had received USD 
190,000 for equipment and renovations from the United States 
European Command's Humanitarian Assistance Program.  The center was 
to offer various types of treatment currently unavailable in the 
town. 
 
----------------- 
QUOTE OF THE WEEK 
----------------- 
 
¶16.  On February 7, vowing that Belarus would set out on a 
"civilized" path, President Lukashenko warned Europe to cooperate 
with Minsk or face the following consequences: 
 
"You should understand that you will have to cooperate with us 
unless you want to have tension in your home and create a territory 
similar to Chechnya." 
 
Stewart