VZCZCXRO9866
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0349/01 1171846
ZNR UUUUU ZZH
R 271846Z APR 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 5947
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHVEN/USMISSION USOSCE 1537
RUEHBS/USEU BRUSSELS
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 MINSK 000349 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
KYIV ALSO FOR USAID 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON PHUM BO
SUBJECT: LUKASHENKO'S ANNUAL SPEECH FOCUSES ON 
ECONOMIC AND ENERGY INDEPENDENCE 
 
Summary 
------- 
 
¶1. (U) In his annual address to the Belarusian parliament, 
President Lukashenko announced plans to prevent future 
energy crises, which include diversifying Belarus' energy 
supplies, building a nuclear power plant, and encouraging 
Belarusians to be thriftier.  Naming China as Belarus' 
number one international ally, Lukashenko called for a 
multi-faceted foreign policy, including normalized 
relations with Russia, the EU and the U.S. and closer 
cooperation with CIS and Non-Aligned Movement nations. End 
summary. 
 
Belarus Must Diversify Energy Resources 
-------------- 
 
¶2. (U) In his annual address to the National Assembly and 
Belarusian people on April 24, President Aleksandr 
Lukashenko stated that Belarus must diversify its energy 
resources in order to prevent future energy crises.  The 
president announced that Belarus will continue to purchase 
energy supplies from Russia but will look into developing 
oil production and refining projects with countries that 
have significant energy deposits such as Iran and 
Venezuela.  Additionally, Lukashenko presented plans to 
create a state oil exporting company, modeled after the 
state potash company Belaruskaly, which ostensibly would 
eliminate intermediary retailers, increase state profits, 
and improve domestic oil refineries' system of buying and 
selling of oil products. 
 
Nuclear Power Plant Construction a Certainty for Belarus 
--------------- 
 
¶3. (U) Lukashenko reaffirmed Belarus' plans to build a 
nuclear power plant.  While not ruling out Russia as the 
possible builder, Lukashenko explained that Belarus will 
hold an open international competition to select the 
safest, yet cheapest bid proposal to construct the nuclear 
power plant.  He ridiculed the EU's strategy of offering 
assistance in the energy sector in exchange for 
democratization and warned the opposition not to capitalize 
on the GOB's decision to build a nuclear power plant to 
gain political ground. 
 
Belarusians Need to be More Economical 
--------------- 
 
¶4. (U) Noting that Belarus is not a rich country, 
Lukashenko implored Belarusians and Belarusian companies to 
adopt the "principle of frugality" to facilitate economic 
growth.  He mandated that Belarus must cut its energy 
consumption by six or seven percent in 2007 and by 50 
percent by 2015.  The president also suggested creating 
energy servicing companies to monitor energy consumption 
and develop energy saving programs. 
 
¶5. (U) Lukashenko warned existing Belarusian oil companies 
that they will have to carry some of the burden for the 
high export duties on foreign oil and should not expect to 
be reimbursed from the state budget.  Since he plans to 
significantly decrease state subsidies to businesses, 
Lukashenko also told entrepreneurs to find ways to lower 
costs and become more economical. 
 
Belarus Must Pursue a Multi-Faceted Foreign Policy 
--------------- 
 
¶6. (U) Lukashenko announced Belarus' plans to pursue a 
multi-faceted foreign policy.  He named China as Belarus' 
number one international ally, praising the strong economic 
and investment ties between the two countries and the 
almost one billion dollars of bilateral trade in 2006. 
Lukashenko discussed cooperating with Ukraine to develop 
secure reliable energy supply routes, launching joint 
projects in several spheres with Azerbaijan, and increasing 
cooperation with Kazakhstan and Non-Aligned Movement member 
nations.  He also noted that Belarus is interested in 
developing normal, mutually-beneficial relations with the 
U.S. and EU but warned that "Belarus would not be dictated 
to." 
 
¶7. (U) While asserting that Belarus must exert every effort 
to maintain its independence, Lukashenko also called for 
 
MINSK 00000349  002 OF 002 
 
 
the normalization of relations with Russia.  He conceded 
that the gas and oil crisis had hindered the development of 
a Belarusian-Russian Union State, but he urged both 
countries to seek compromise and rid themselves of 
ambitions and distrust. 
 
Independent Media Should Abide By Regulations 
--------------- 
 
¶8. (U) During a brief question and answer session, a deputy 
asked Lukashenko about the future of independent media in 
Belarus.  The president stressed that he does not oppose 
the existence of independent "opposition" media, so long as 
they are "fair and just in their reporting" and operate 
within the framework of existing Belarusian law.  He warned 
that any paper that knowingly prints false or unverified 
information would not be allowed to publish in Belarus. 
 
Comment 
------- 
 
¶9. (SBU) Lukashenko's strong emphasis on diversifying the 
country's energy resources, constructing a nuclear power 
plant and strengthening relations with oil rich countries 
underscores his determination to minimize Belarus' 
dependence on Russian energy.  Lukashenko's renewed calls 
for normal relations with Russia and a multi-faceted 
foreign policy may indicate his growing realization that 
Belarus cannot survive in isolation. 
 
STEWART