VZCZCXRO8640
RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR
DE RUEHSK #0229/01 0780555
ZNR UUUUU ZZH
R 190555Z MAR 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5794
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 000229 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MARCH 14, 2007 
 
REF: MINSK 198 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- Belarusian Plane Attacked in Somalia (para. 2) 
- Lukashenko's Kyiv Visit Postponed (para. 3) 
- GOB Urges UN HRC to Avoid "Double Standards" (para. 4) 
 
CIVIL SOCIETY 
------------- 
 
- CIS/EU Politicians to Attend March 25 Demonstration (para. 5) 
- Political Prisoner Denied Early Release (para. 6) 
- Teenage Girl Suspect in Fedaruk-Korban Criminal Case (para. 7) 
- Union Denied Permission for Rally in Soligorsk (para. 8) 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
- Belarus Ready to Upgrade Your Missiles (para. 9) 
- Lukoil Ceases Oil Exports To Belarus (para. 10) 
 
DOMESTIC ECONOMY 
---------------- 
 
- Belarus Ups Excise On Oil Products (para. 10) 
- Belarus to Increase Domestic Drug Production (para. 12) 
 
 
QUOTE OF THE WEEK (para. 13) 
 
----------------------- 
INTERNATIONAL RELATIONS 
----------------------- 
 
¶2. Belarusian Plane Carrying Combat Vehicles Attacked in Somalia 
 
The Belarusian Ministry of Transport's aviation department on March 
12 reported that a Belarusian Il- 76 transport plane was attacked in 
Somalia by grenade launchers as it was approaching an airfield three 
kilometers away.  The plane managed to land safely with damage to 
the fuselage.  It was carrying nine Belarusians, six Ugandans, and 
allegedly a humanitarian shipment that included two armored combat 
vehicles.  The flight originated in Uganda reportedly as part of a 
peacekeeping mission with the African Union and UN Security Council. 
 Somalia officials denied the plane was attacked. 
 
¶3. Lukashenko's Kyiv Visit Postponed 
 
On March 12, the Ukrainian president's office announced that this 
week's meeting between Presidents Lukashenko and Yushchenko was 
postponed.  President Yushchenko, who was in the Zhytomyr region on 
March 13 and Denmark on March 15, reportedly said Lukashenko would 
arrive in Kyiv next week (reftel). 
 
¶4. GOB Urges UN Human Rights Council to Avoid "Double Standards" 
 
On March 12, Belarus' Permanent Representative to the UN and other 
international organizations based in Geneva Sergey Aleynik told the 
state telegraph agency Belta that the UN Human Rights Council (HRC) 
should avoid "double standards" in its work.  According to Aleynik, 
this was Belarus' "strategic goal" for the HRC.  Aleynik confirmed 
that the Belarusian delegation would participate in hearings and 
discussions with special rapporteurs and independent experts on 
human rights around the world. 
 
------------- 
CIVIL SOCIETY 
------------- 
 
¶5. CIS and EU Politicians to Attend March 25 Demonstration 
 
Leaders of Russia's Union of Right Forces Nikita Belykh and 
Azerbaijan's Musavat party Isa Qambar on March 12 accepted de facto 
coalition leader Aleksandr Milinkevich's invitation to attend the 
March 25 opposition demonstration in Minsk, which will celebrate the 
short-lived independent Belarusian National Republic that formed 
following WWI.  Milinkevich invited dozens of EU, U.S., and CIS 
politicians to participate in the demonstration in Minsk.  Vice 
President of the European Parliament Mario Mauro and other EU 
politicians plan to attend the event. 
 
¶6. Political Prisoner Denied Early Release 
 
Radio Liberty on March 9 reported that Malady Front youth opposition 
 
MINSK 00000229  002.2 OF 003 
 
 
movement leader Dmitry Dashkevich received a fourth warning from the 
prison administration, this time for reading after-hours.  The 
fourth warning makes Dashkevich ineligible for an early release 
under the amnesty law because has not taken "the correctional path" 
and is considered "a persistent violator" of prison regulations. 
Dashkevich has served six months of an 18-month sentence for running 
an unregistered group. 
 
¶7. Teenage Girl a Suspect in Fedaruk-Korban Criminal Case 
 
On March 12, the Prosecutor General's Office notified 17-year-old 
Anastasiya Palazhanka that she was a suspect in the criminal 
prosecution of Malady Front youth group leaders Dmitry Fedaruk and 
Aleh Korban and was summoned for questioning on March 13. 
Palazhanka was arrested with Korban, Fedaruk and 25 other youths 
when security services on February 4 raided an apartment where they 
were holding a meeting.  Korban and Fedaruk face charges of running 
an unregistered organization and could face a fine or a prison 
sentence up to two years.  On March 10 and 11, security forces tried 
to enter Fedaruk's apartment without producing identification or 
warrants. 
 
¶8. Union Denied Permission for Rally in Soligorsk 
 
On March 12, authorities in Soligorsk denied the Belarusian 
Independent Trade Union (BITU) permission to stage a rally on March 
14 to demand an increase in pay and housing loan programs for 
company workers.  According to the Soligorsk BITU leader Mikalay 
Novik, authorities cited the flu outbreak as the reason for the 
permission denial.  The BITU plans to apply to hold another 
demonstration in the future. 
 
---------------------------------- 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
¶9. Belarus Ready to Upgrade Your Missiles 
 
On March 13, the Minsk Tetraedr defense industry enterprise 
announced that it was offering foreign armies its services to 
modernize S-200VE Vega long-range missile systems known as SA-5B 
Gammon.  Tetraedr did not have any contracts yet, but was ready to 
dispatch its experts to sites around the world to make missile 
systems more efficient and decrease their susceptibility to jamming. 
 The S-200s can strike targets 250 kilometers away.  Established in 
April 2001, Tetraedr upgrades surface-to-air missile systems, 
develops and manufactures warfare equipment, and designs software 
and technologies for radar and control systems. 
 
¶10. Lukoil Ceases Oil Exports To Belarus 
 
Anonymous GOB officials on March 7 reported to the press that 
Russian oil company Lukoil would cease crude oil supplies to Belarus 
in March.  Lukoil, the largest supplier of crude oil (300,000 per 
month) to Belarus, cited the lack of clear rules following Russia 
and Belarus' new oil agreement signed in early 2007.  The loss of 
Lukoil crude will affect Belarus' oil refineries that will now have 
to purchase more from other suppliers just to continue production. 
Lukoil may rescind its decision upon the introduction of new rules. 
 
---------------- 
DOMESTIC ECONOMY 
---------------- 
 
¶11. Belarus Ups Excise On Oil Products 
 
Online economic news source Prime-Tass on March 7 reported that in 
accordance with presidential edict 117, Belarus on March 1 increased 
excise on oil products sold domestically by 140 percent and gave 
companies supplying crude oil to Belarus on a tolling basis a USD 24 
per ton subsidy.  According to an unnamed oil refinery 
representative, the incentives are not enough to encourage oil 
processing in Belarus and will not increase the work efficiency of 
refineries.  The representative predicted excise rates will rise to 
2006 levels and make the domestic market unprofitable, suggesting 
that Belarus reduce export duties by the amount Russia charges in 
export duties on crude oil.  Both government and independent 
economists believe the benefit is not sufficient, fearing Russian 
crude suppliers will avoid the Belarusian market. 
 
¶12. Belarus to Increase Domestic Drug Production 
 
Deputy Chair of the Belbiyafarm pharmaceutical association Petr 
Mandrukevich on March 13 told reporters that the Belarusian 
pharmaceutical industry was to develop and start production of 200 
brand name and generic drugs in 2006-2010.  According to 
Mandrukevich, the GOB in the next five years plans to increase drug 
research spending from USD 4 million to USD 13 million and overall 
investment in the sector is expected to reach USD 140 million.  All 
drug companies are expected to comply with GMP standards by 2010 and 
90 percent of their equipment is to be replaced.  Belarusian 
 
MINSK 00000229  003 OF 003 
 
 
pharmaceutical manufacturers in 2006 reported USD 114 million in 
sales; 40 percent from exports. 
 
----------------- 
QUOTE OF THE WEEK 
----------------- 
 
¶13. At a March 12 entrepreneur demonstration in Bangalore Square to 
protest new GOB regulations, one regional entrepreneur leader 
criticized the government for turning off the electricity: 
 
"The authorities denied us electricity, but last week the BRYU [the 
pro-government Belarusian Republican Youth Movement] held a 
demonstration at this spot and had electricity.  We [entrepreneurs] 
pay the taxes to support that stupid organization and we are the 
ones without electricity." 
 
Stewart