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Viewing cable 07MINSK290, EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007

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Reference ID Created Released Classification Origin
07MINSK290 2007-04-05 15:36 2011-08-26 00:00 UNCLASSIFIED Embassy Minsk
VZCZCXRO6230
RR RUEHAST RUEHDBU RUEHFL RUEHLA RUEHMRE RUEHPOD RUEHROV RUEHSR
DE RUEHSK #0290/01 0951536
ZNR UUUUU ZZH
R 051536Z APR 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5869
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 000290 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - APRIL 05, 2007 
 
REF: MINSK 266 
 
1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
- Minsk Oil Extraction Deals Outside Russia-"Propaganda" (para. 2) 
- Latvia to Demand Compensation for Fuel Spill (para. 3) 
- Parliament Approves Visa-free Travel to Azerbaijan (para. 4) 
- Putin and Lukashenko Exchange Greetings (para. 5) 
- Belarus-Ukraine Cancel Border Guard Talks (para. 6) 
CIVIL SOCIETY 
------------- 
 
- Non-GOB Writers Union Appeals Ban on Public Meetings (para. 7) 
- Regional Human Rights NGOs Evicted in Mogilyov (para. 8) 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
- Russia Concerned over Beltransgaz Price Reductions (para. 9) 
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 10) 
 
DOMESTIC ECONOMY 
---------------- 
 
- PM Says Belarusian Economy Immune to Outside Shocks (para. 11) 
- GOB Predicts Job Holders up 10-11 Percent by 2010 (para. 12) 
 
SOCIETY 
------- 
 
- GOB Considers Construction of Antarctic Station (para. 13) 
 
QUOTE OF THE WEEK (para. 14) 
 
----------------------- 
INTERNATIONAL RELATIONS 
----------------------- 
 
2.  Minsk Oil Extraction Deals Outside Russia-"Propaganda" 
 
During a press conference on March 30, Russian Ambassador to Belarus 
Alexander Surikov stated that Minsk's announcement of plans to 
extract oil in Venezuela, Azerbaijan and Iran was an act of 
"propaganda."  He noted that before Belarus can proceed with such 
plans, it must first win bidding competitions in those countries. 
Furthermore, he added that Belarus could extract oil from Russia 
"without problems," where the infrastructure necessary for 
transporting extracted oil already exists. 
 
3.  Latvia to Demand Compensation for Fuel Spill 
 
On March 30, Belarusian independent media reported that the Latvian 
government will demand compensation from Minsk for damage caused by 
diesel fuel leaked from a Russian-owned pipeline in northern 
Belarus.  The leak, first reported on March 23, released an 
estimated 1,000 tons of fuel into the Western Dvina River and its 
tributary, the Ulla (reftel).  As of April 2, diesel covered 100 
kilometers of shoreline.  The pipeline carries petroleum products to 
Latvia's Ventspils seaport. 
 
4.  Parliament Approves Visa-free Travel to Azerbaijan 
 
On April 2, the Belarusian National Assembly's lower chamber 
ratified an agreement to allow visa-free travel with Azerbaijan. 
Belarusian Deputy Foreign Minister Viktor Gaysenok expressed hope 
that the accord would increase economic cooperation and political 
and cultural dialogue.  Both countries may still bar a citizen of 
the other country from entering its territory or reduce the period 
of stay without explanation. 
 
5.  Putin and Lukashenko Exchange Greetings 
 
On April 2, President Lukashenko and Russian President Putin 
exchanged greetings on the occasion of "The Day of the Unity of the 
Peoples of Belarus and Russia."  Celebrated on April 2 each year, 
the day commemorates the 1996 agreement between Presidents 
Lukashenko and Yeltsin that formed the Belarusian-Russian Community. 
 On April 2, 1997 the two leaders signed another accord that 
ostensibly transformed the community into a union.  In his greeting 
to Putin, Lukashenko observed that "the objective need for 
rapprochement between Belarus and Russia becomes increasingly 
tangible with every year that passes". 
 
6.  Belarus-Ukraine Cancel Border Guard Talks 
 
 
MINSK 00000290  002 OF 003 
 
 
On April 3, Belarus' State Border Troops Committee Chair Aleksandr 
Pavlovskiy and Ukrainian Border Guards Chief Mykola Lytvyn cancelled 
their talks scheduled for April 3 and 4.  Pavlovskiy and Lytvyn were 
expected to discuss Belarusian-Ukrainian border issues.  The 
officials reportedly put off the talks because of the political 
crisis triggered by Ukrainian President Viktor Yushchenko's April 2 
decision to dissolve Ukraine's parliament. 
 
------------- 
Civil Society 
------------- 
 
7.  Non-GOB Writers Union Appeals Ban on Public Meetings 
 
On March 30, the independent Union of Belarusian Writers (UBW) filed 
an appeal against the Education Ministry's ban on GOB institutions 
from holding pubic meetings with its members.  The ban declares that 
any public meetings with writers and other cultural events require 
pro-GOB writers' union's consent in order "to propagate ideology and 
educate youth effectively."  The UBW criticized the ban as illegal, 
restrictive, and aimed at limiting contacts with writers who openly 
criticize and voice discontent over GOB policies. 
 
8.  Regional Human Rights NGOs Evicted in Mogilyov 
 
On April 2, independent media reported that the Belarusian Helsinki 
Committee and the Human Rights Center in the eastern city of 
Mogilyov are being forced out of their offices.  The state housing 
authorities are pressuring the NGOs to voluntarily terminate the 
lease agreement; otherwise, they will face an eviction lawsuit.  The 
landlord accused the NGOs of subleasing the office to a humanitarian 
organization without its consent.  The human rights NGOs deny that 
they breached the lease agreement, and that authorities are only 
attempting to hinder NGOs' activities. 
 
---------------------------------- 
International Trade and Investment 
---------------------------------- 
 
9.  Russia Concerned over Beltransgaz Price Reductions 
 
Russian Ambassador to Belarus Alexander Surikov told the reporters 
on March 30 that Russia's Gazprom is concerned over Beltransgaz plan 
to remove USD 18 markup on the price charged to Beltopgaz, which 
distributes natural gas to local consumers.  Under the December 31, 
2006 agreement, Gazprom will acquire 50 percent of Beltransgaz stock 
in four equal annual installments by 2010.  Gazprom claims the plan 
may impede the establishment of a joint venture (JV), since the new 
reduced price charged to Beltopgaz will reduce Beltransaz profits. 
Ambassador Surikov referred to the provision in the JV agreement 
that allows Gazprom to double the price it charges Beltransgaz for 
the natural gas supplied to Belarus.  Gazprom may threaten to resort 
to it, since price reduction was off the agenda when Beltransgaz was 
assessed for the JV deal. 
 
10.  Italian Banks To Finance Belarusian Oil Projects 
 
On April 3, UniCredito Italiano Vice President Fabrizio Palenzona 
met with Belarusian Prime Minister Sergey Sidorskiy to discuss 
possible financing of Belarusian oil industry projects by Italian 
banks.  According to Palenzona, his bank had negotiated about USD 70 
million in investment, and a branch of Russia's Moscow International 
Bank would be opened in Belarus within two weeks.  UniCredito 
Italiano is the sole owner of the Russian bank. 
 
---------------- 
Domestic Economy 
---------------- 
 
11.  PM Says Belarusian Economy Immune to Outside Shocks 
 
On March 30, Belarus' Prime Minister Sidorsky told the Advisory 
Council for Foreign Investment that Belarus' economy has been immune 
to the adverse consequences of Belarus' recent conflict with Russia 
over energy prices.  Belarus' GDP growth in January-February reached 
nine percent.  He nevertheless admitted that higher energy prices 
had caused "some problems." 
 
12.  GOB Predicts Job Holders up 10-11 Percent by 2010 
 
On April 4, Belarus' the head of the employment and population 
department with the Labor Ministry, Nikolai Kokhonov, announced job 
centers are expected to increase the number of job holders by 11 
percent during 2005-2010 to 4.8 million people.   According to 
Kokhonov, this increase will exceed both the number of Belarusians 
who work abroad and those who are trying to find jobs without using 
official employment services, figures estimated at 180,000 people 
and 192,000 people, respectively.  Belarus' Labor Ministry reports 
that some 105,000 Belarusians are out of work because of poor 
health, 144,000 are not actively seeking employment, and 110,000 do 
not need to work because of savings or investments.  The Ministry 
 
MINSK 00000290  003 OF 003 
 
 
classified 744,000 unemployed people as part of the economically 
active population. 
 
------- 
Society 
------- 
 
13.  GOB Considers Construction of Antarctic Station 
 
On April 3, two Belarusian explorers returned to Minsk after 
spending five months in Antarctica as part of a Russian expedition. 
Their research will help the GOB decide whether to build its own 
manned research station in Antarctica or use an abandoned Russian 
facility.  Constructing a new station is expected to cost the GOB 
between USD 8 and 10 million.  Russian icebreakers will be required 
to supply whichever facility the GOB chooses. 
 
----------------- 
Quote of the Week 
----------------- 
 
14.  During an interview on April 4, President Lukashenko offered 
the following explanation why the issue of Belarusian political 
prisoners is actually an EU artifice: 
 
"[The Europeans] are like die-hard sheep bearing against this gate, 
and demand us to release political prisoners.  We do not have 
political prisoners, and we have shown them why those people had 
been convicted.  These people were spurred on to the barricades by 
the EU and its money, and the West wants to release them.  Well, 
come and admit that you [EU countries] are guilty, offer an apology 
to the Belarusians, and say, 'let's deal with the matter'." 
 
Stewart