VZCZCXRO3535
RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR
DE RUEHSK #0184/01 0611418
ZNR UUUUU ZZH
R 021418Z MAR 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5716
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 000184 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MARCH 1, 2007 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- CEI Executive Secretary DG Visits Minsk (para. 2) 
 
CIVIL SOCIETY 
------------- 
 
- State Control Committee Creates Anti-Corrupt Hotline (para. 3) 
- Independent Organization Unveils New Kurapaty Plaque (para. 4) 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
- GOB Seeks USD 1.3 Billion from Austrian Bank (para. 5) 
 
DOMESTIC ECONOMY 
---------------- 
 
- National Bank Considers Raising Refinance Rate (para. 6) 
- Average Salary Down 7.6 Percent in January (para. 7) 
 
HEALTH ISSUES 
------------- 
 
- Army Forms Special Anti-Bird Flu Units (para. 8) 
- Flu Epidemic Declared in 14 Cities and Regions (para. 9) 
- Youth HIV/AIDS information center opens in Mogilyov (para. 10) 
 
QUOTE OF THE WEEK (para. 11) 
 
----------------------- 
INTERNATIONAL RELATIONS 
----------------------- 
 
¶2.  Central European Initiative Official Visits Minsk 
 
On February 28, Central European Initiative (CEI) Executive 
Secretariat Director General Harald Kreid arrived in Minsk for a 
 
SIPDIS 
three-day visit that will focus on the development of interstate and 
inter-parliamentary cooperation between Belarus and CEI member 
countries.  Kreid's schedule reportedly includes working meetings 
with Foreign Minister Sergey Martynov and members of the Belarusian 
delegation to the CEI Parliamentary Assembly.  The CEI is an 
inter-governmental organization established in November 1989 for 
mutual political, economic, scientific and cultural cooperation and 
currently consists of 18 EU, former Soviet, and former-Yugoslav 
countries. 
 
------------- 
CIVIL SOCIETY 
------------- 
 
¶3.  State Control Committee Creates Anti-Corrupt Hotline 
 
On February 26, State Control Committee Chief Zenon Lomat announced 
the creation of a GOB anti-corruption hotline.  Lomat encouraged 
Minsk residents to "fearlessly report" cases of corruption, bribery, 
fraud, red tape, and "ignorant attitude toward common people." 
Lomat acknowledged that problems in the capital require supervisory 
agencies' intervention.  He noted that his agency aims to combine 
its efforts with those of common citizens to make life more 
comfortable, stressing that it will not seek compromising 
information about the performance of Minsk authorities. 
 
¶4.  Independent Organizaton Unveils New Kurapaty Plaque 
 
On February 28, the independent "Organizing Committee for 
Commemorating the Victims of Stalinist Repressions" unveiled a new 
memorial plaque during a candle-lighting ceremony at the Kurapaty 
mass-grave site.  Committee co-founder Igor Kuznetsov presented an 
open statement that urged "citizens of Belarus and the Belarusians 
of the world" to declare 2007 a year for remembrance of Stalinist 
repression victims.  The committee sent the statement to several 
governmental institutions, including the Presidential 
Administration, to offer its cooperation in preserving victims' 
memories.  Private donations funded the replacement of a plaque that 
was unveiled in 1989 and stolen in 2004. 
 
---------------------------------- 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
¶5.  GOB Seeks USD 1.3 Billion from Austrian Bank 
 
On February 26, during a press conference of Prime Minister Sergey 
 
MINSK 00000184  002 OF 003 
 
 
Sidorskiy, GOB sources reportedly revealed plans to invest USD 1.3 
billion in 2007 with the help of Raiffeisen Zentralbank Osterreich 
AG (RZB).  During January 2003, RZB acquired 50 percent of Belarus' 
bank Priorbank for USD 40.2 million and currently holds a 63.04 
percent stake in the bank.  The 1.3 billion USD are to be raised 
through loans with international funds, specialized institutions, 
and by placing bonds among investors.  RZB is reportedly the third 
largest bank in Austria and one of Austria's leading commercial and 
investment banks. 
 
---------------- 
DOMESTIC ECONOMY 
---------------- 
 
¶6.  Average Salary Down 7.6 Percent in January 
 
On February 28, the Belarusian Labor Ministry reported that Belarus' 
average monthly salary in nominal terms reached USD 288 in January, 
down 7.6 percent from December.  Average salaries edged down by 1.8 
percent to USD 332 and 8.3 percent to USD 162 in the industrial and 
agriculture sectors, respectively.  Average salaries dropped 10.1 
percent to USD 231 and 17.3 percent to USD 240 in healthcare and 
education, respectively.  Meanwhile, consumer prices increased 1.8 
percent on the month in January after a 0.8 percent increase in 
December.  The minimum per capita consumer budget for a family of 
four reached USD 126 in January, up 0.6 percent. 
 
¶7.  National Bank Could Raise Refinance Rate 
 
On February 26, independent media reported that the National Bank of 
Belarus will consider raising the base refinance rate on the March 
¶1.  The increase will be the first increase, with in the last five 
years only rising one percent, positioning the rate at 11 percent. 
Last January, consumer prices rose by 1.8 percent in January after a 
0.8 percent decrease in December.  The GOB predicts that the 
consumer prices will not increase more than six to eight percent, 
while the base refinance rate will be between seven and nine 
percent. 
 
------------- 
HEALTH ISSUES 
------------- 
 
¶8.  Army Forms Special Anti-Bird Flu Units 
 
On February 27, the Belarusian Defense Ministry reported that the 
Belarusian Armed Forces are preparing to contain possible bird flu 
outbreaks within the country.  Units have already been set up at 
radiation, chemical and biological protection facilities.  The 
troops have the equipment to protect and disinfect clothing and 
respond to an outbreak of the virus within 24 hours.  Authorities 
plan to conduct inspections every month at poultry facilities. 
 
¶9.  Flu Epidemic Declared in 14 Cities and Regions 
 
On February 23, Belarus' National Center of Hygiene, Epidemiology 
and Public Health declared a flu epidemic in 14 cities and districts 
including Minsk.  A sharp increase in new cases prompted the closure 
of all schools in the eastern city of Gomel and 14 schools in the 
surrounding region.  Seasonal flu cases in Baranovichi in the 
southwestern Brest region were reportedly three times the usual 
level.  By February 23, 17,718 people were diagnosed with flu and 
respiratory illnesses in monitored cities, with children accounting 
for 40.53 percent.  From February 12 to 18, a total of 64,269 people 
were diagnosed with flu and respiratory illnesses, a jump of 24.9 
percent above the previous week. 
 
¶10.  Youth HIV/AIDS Information Center Opens in Mogilyov 
 
On February 23, an HIV/AIDS information center for youths opened at 
the Mogilyov Center of Hygiene, Epidemiology and Public Health. 
Founded in cooperation with the Belarusian Health Ministry and with 
financial assistance from the UN Global Fund, the center will offer 
advice and counseling and conduct education and training programs. 
The center will also serve as a venue for local youths to meet, 
discuss HIV/AIDS issues, and gain access to print, video and audio 
materials. 
 
----------------- 
QUOTE OF THE WEEK 
----------------- 
 
¶11.  On March 1, while endorsing former opposition presidential 
candidate Aleksandr Milinkevich's call for street demonstrations on 
March 25, Belarusian Party of Freedom and Progress Leader Vladimir 
Novosyad predicted: 
 
"I am sure that March 25 is to become a red-letter day of a calendar 
in Belarus.  It is an extremely important date in our history.  It 
is when independence of Belarus was proclaimed [in 1918].  We will 
show gratitude to our ancestors who had signed statutory documents 
 
MINSK 00000184  003 OF 003 
 
 
that laid the foundation to Belarus' sovereignty.  Independence is 
our most important value, without which democracy will not exist." 
 
Stewart