VZCZCXRO4871
RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR
DE RUEHSK #0160/01 0531545
ZNR UUUUU ZZH
R 221545Z FEB 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5686
INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 MINSK 000160 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - FEBRUARY 22, 2007 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- French Ambassador Seeks Belarus-EU dialogue (para. 2) 
      - Foreign Minister Martynov Visits India (para. 3) 
 
CIVIL SOCIETY 
------------- 
 
- Internet Cafes Mandated to Provide GOB Info on Users (para. 4) 
- Opposition Activist Denied Early Release (para. 5) 
- Fertilizer Factory Employees to Stage Protest (para. 6) 
 
DOMESTIC ECONOMY 
---------------- 
 
- Producer Price Index Reaches Record High in January (para. 7) 
- Finished Inventories Up 18.3 Percent in January (para. 8) 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
- Imports of Iranian, Venezuelan Oil via Baltic Ports (para. 9) 
- Free Economic Zones Outperform Rest of Economy (para. 10) 
 
QUOTE OF THE WEEK (para. 11) 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  French Ambassador Seeks Belarus-EU dialogue 
 
On February 21, during an interview with Belarusian independent 
media, newly-appointed French Ambassador to Belarus Mireille Musso 
expressed hope that France will help forge "real and fair dialogue" 
between Belarus and the European Union.  While suggesting that 
Belarus could play a special role in the European family and could 
participate in its activities, she stressed that Minsk must make 
more progress in economic and democratic reform.  She also noted the 
need to improve the investment environment and adopt regulations 
aimed at protecting business. 
 
¶3.  Foreign Minister Martynov Visits India 
 
On February 22, Belarusian Foreign Minister Sergey Martynov arrived 
in India for discussions on political and economic cooperation. 
During the visit, Martynov is expected to meet with Foreign Minister 
Pranab Mukherjee, Commerce and Industry Minister Kamal Nath, and 
Indian business people interested in establishing ties with 
Belarus. 
 
------------- 
Civil Society 
------------- 
 
¶4.  Internet Cafes Mandated to Provide GOB Info About Users 
 
On February 10, Prime Minister Sergey Sidorsky signed a decree 
requiring internet clubs and cafes to submit information about the 
web sites visited by their customers upon request from the 
law-enforcement agencies.  According to the decree, these 
establishments must file electronic histories of the web sites and 
make it available to the law-enforcement agencies within 12 months. 
Managers will be held liable for granting minors access to 
inappropriate information and must inform relevant security agencies 
of any violations or misuse of computer equipment and software. 
 
¶5.  Opposition Activist Denied Early Release 
 
On February 20, a parole board denied prominent opposition youth 
leader Pavel Severinets early release on the grounds that he had not 
taken the "correctional path."  Severinets refused the conditions of 
his release, put forth by the board, to plead guilty and make a 
commitment not to commit the same crime in the future.  He stressed 
that the officials expected his reaction and only followed a 
bureaucratic procedure to review his case, although by law he had a 
right to be released some time ago.  Sentenced to two years of 
correctional labor in internal exile ("khimya") in May 2005, 
Severinets is now working for a timber company located a small 
village in northern Belarus.  He is due for release in May. 
 
¶6.  Fertilizer Factory Employees to Stage Protest 
 
On February 20, members of a branch of the Independent Trade Union 
at the Soligorsk-based Potassium Fertilizer Factory submitted a 
 
MINSK 00000160  002 OF 002 
 
 
petition signed by approximately 500 workers to the city authorities 
for a permit to stage a rally on March 14.  The labor union 
activists demand higher wages for processing plant employees and 
protest against existing problems with housing and draft amendments 
to the social security (pension) law regulating retirement benefits. 
 According to the bill, employees of the retirement age who work in 
hazardous conditions will receive pensions.  Factory union leader 
Nikolay Novik stated that the negotiations with the factory 
administration have remained unsuccessful, and the labor union 
intends to hold an information campaign to engage more people in the 
protest.  The factory management claims that it has not received a 
single complaint and expects little support for the rally. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶7.  Producer Price Index Reaches Record High in January 
 
On February 16, independent media reported that Belarus' producer 
price index (PPI) jumped 12.6 percent in January but is not expected 
to increase more than 14-16 percent by the end of the year.  Higher 
energy prices accounted for most of the hike, since Belarus' 2006 
PPI was only 8.5 percent. 
 
¶8.  Finished Inventories Up 18.3 Percent in January 
 
On February 19, Belarus' Ministry of Statistics and Analysis 
reported that industrial enterprises' finished inventories rose 18.3 
percent, or USD 1.4 billion worth of goods, in the first half of 
January.  As of February 1, this figure accounts for 57.4 percent of 
the average monthly output, up from 53.2 percent one year ago. 
Inventories of hosiery exceeded average monthly output by 252.8 
percent.  Of all the retail items, fertilizers accrued the smallest 
inventories at 3.8 percent of monthly output. 
 
---------------------------------- 
International Trade and Investment 
---------------------------------- 
 
¶9.  Import of Iranian, Venezuelan Oil via Baltic Ports 
 
On February 21, Belarus Deputy Prime Minister Vladimir Semashko 
announced that Belarus plans to use ports in the Baltic for 
importing Iranian and Venezuelan oil.  Belarus recently started oil 
exploration in Iran and Venezuela, but extraction is not expected 
for at least three to four years.  Experts believe that until 
extraction begins, there is little incentive to import oil via the 
Baltic since Russian oil remains a cheaper alternative, despite 
Russia's recently introduced USD 53 export duty. 
 
¶10.  Free Economic Zones Outperform Rest of Economy 
 
On February 16, Belarus' Ministry of Statistics and Analysis 
reported that the 269 companies registered in Belarus' six free 
economic zones (FEZ) increased their production by 41.8 percent to 
USD 1.3 billion in 2006, an increase that far exceeded the overall 
national rate.  The FEZ companies exported USD 804.5 million in 
furniture, foodstuffs, packing materials, aluminum products, 
refrigerators and other products, mainly bound for Russia.  Their 
USD 804.7 million worth of imports came primarily from outside the 
CIS and included production equipment, aluminum, plastic goods, fish 
and seafood and lumber. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶11.  On February 16, former opposition presidential candidate 
Aleksandr Milinkevich told independent media: 
 
"Today, Belarus is a number one problem in Europe, and the front 
pages of many newspapers in Europe cover the situation in our 
country.  It is a tribute to all those people who are reminding the 
world that human rights in Belarus are violated, free elections are 
non-existent, and independent press is extinct. I call upon all 
Belarusians and friends of our country to pray for early release of 
all Belarusian political prisoners and for the restoration of 
democracy in Belarus." 
 
Stewart