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FM AMEMBASSY MINSK
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UNCLAS SECTION 01 OF 03 MINSK 000358 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - MAY 3, 2007 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Former Political Prisoner Banned From Traveling Abroad (para. 2) 
- Over 4,500 Signatures Collected to Challenge the Religion Law 
(para. 3) 
- GOB to Review Former Monastery Reconstruction (para. 4) 
- Chernobyl Liquidators Not Allowed to Debate Benefits Bill (para. 
5) 
- Harassment Against Opposition Leader's Wife Continues (para. 6) 
 
Domestic Economy 
---------------- 
 
- Less Russian Crude Oil Supplied to Belarus in 2007 (para. 7) 
- Russia-Poland Meat Stand-off Affects Belarus (para. 8) 
- Slump in Sugar Exports to Russia Part of a Broader Deal (para. 9) 
- Imports of Inexpensive Moldovan Wines Reduced (para. 10) 
 
International Trade and Investment 
---------------------------------- 
 
- Expensive Internet Slows Down E-trade in Belarus (para. 11) 
- Belshina to Stop Internet Sales (para. 12) 
 
- QUOTE OF THE WEEK (para. 13) 
 
CIVIL SOCIETY 
------------- 
 
¶2. Former Political Prisoner Banned From Traveling Abroad 
 
On April 29, opposition activist, former MP and political prisoner 
Sergey Skrebets informed independent mass media that he was banned 
from traveling abroad.  Minsk District Passport and Visa Services 
notified Skrebets that he cannot leave Belarus until he paid all the 
damages he owes to the GOB.  [Note: In 2006, the GOB found Skrebets 
guilty of embezzlement and bank loans fraud and mandated him to 
repay USD 700,000 (BYR 1.5 billion).  End note.]  Skrebets claims 
his property was confiscated, and though he never pleaded guilty, he 
is consistently paying off the damages.  Skrebets is appealing the 
decision to overturn the travel ban. 
 
¶3. Over 4,500 Signatures Collected to Challenge the Religion Law 
 
As of May 2, the Protestant New Life Church (NLC) web site announced 
that over 4,500 people across Belarus signed a petition to challenge 
the 2002 law on religious freedom and religious organizations.  The 
organizers aim to collect at least 50,000 signatures to protest the 
law during the signature collection campaign, which started on April 
¶22.  Christian communities maintain that the law heavily restricts 
their activities, suppresses freedom of religion, and legalizes 
GOB's administrative and criminal prosecution of individuals for 
their religious beliefs.  NLC lawyer Sergey Lukanin considered the 
ongoing campaign a success, citing reactions from GOB ideology 
officers and the regional authorities' invitation to discuss the 
campaign with a Protestant pastor. 
 
¶4. GOB to Review Former Monastery Reconstruction 
 
On May 2, BelaPAN independent news agency reported that following a 
petition from the St. Joseph Roman Catholic community, the 
Presidential Administration established an interagency commission to 
study plans for the reconstruction of the former Bernardine 
monastery building in central Minsk.  Prominent historians and 
members of the Catholic community urged the government to abandon 
plans to convert the monastery into a five-star hotel and an 
entertainment center and to return it to the community instead.  The 
interagency commission will be in charge of monitoring site research 
and archeological works and also reviewing any incoming projects for 
reconstruction. 
 
¶5. Chernobyl Liquidators Not Allowed to Debate Benefits Bill 
 
Despite an invitation from Presidential Administration Deputy Head 
Natalya Petkevich, Chernobyl Blast Aftermath Liquidators Leader 
Aleksandr Volchanin was not allowed to attend the May 3 
parliamentary hearings on the bill for abolishing liquidators' 
benefits.  Petkevich's invitation followed a petition, signed by 360 
liquidators, protesting cancellation of free medical treatment, 
extra paid leave, and early retirement at age 55.  Chernobyl Blast 
Aftermath Liquidators plan to hold a founding conference on May 19 
to establish an association and unite 126,200 military and civilian 
workers affected by the blast. 
 
¶6. Harassment Against Opposition Leader's Wife Continues 
 
MINSK 00000358  002 OF 003 
 
 
 
On April 29, BelaPAN independent news agency reported that de facto 
opposition leader Aleksandr Milinkevich's wife Inna Kulei filed a 
criminal lawsuit with the prosecutor's office after her personal 
information was posted on a web site advertising sexual services. 
Kulei says she has been receiving a number of sexually explicit 
phone calls and believes her cell phone number was purposefully 
disclosed to insult and discredit her.  In March, Milinkevich's car 
was splashed with acid and Kulei's car was vandalized with graffiti 
and two flat tires.  Kulei attributed the elevated harassment to her 
successful activities as the coordinator of educational programs 
assisting expelled youth in finding study abroad opportunities. 
 
INTERNATIONAL TRADE AND INVESTMENT 
---------------------------------- 
 
¶7. Less Russian Crude Oil Supplied to Belarus in 2007 
 
According to the Ministry of Statistics, Russian oil companies 
supplied 4.1 million tons of crude oil in January-March to Belarus' 
two oil refineries, which represents a 25-27 percent decrease on the 
year.  The delivery target for 2007 nevertheless remains unchanged 
at 21.5 million tons. 
 
¶8. Russia-Poland Meat Stand-off Affects Belarus 
 
On April 27, Prime Minister Sergey Sidorskiy called Russia's recent 
restrictions on imports of Belarusian meat, dairy, and fish products 
absurd and unacceptable as they seriously damage the Belarusian food 
industry.  In early 2006, Russia's food safety watchdog, 
Rosselkhoznadzor, inspected 23 Belarusian meat factories and banned 
20 from exporting to Russia on minor technical grounds.  The true 
"fault" of these factories was the purchase of Polish meat for their 
production purposes.  In the fall of 2005, Russia banned imports and 
re-imports of Polish meat for quality reasons. 
 
¶9. Slump in Sugar Exports to Russia Part of a Broader Deal 
 
Belarus' on-the-year sugar exports to Russia fell 86.6 percent from 
January to March.  Belarus and Russia signed a sugar agreement in 
late March to reduce Belarus' sugar exports from 180 thousand tons 
in 2007 to 100 thousand tons in 2008.  The agreement became a part 
of a broader deal between the two countries to remove certain 
restrictions in mutual trade for 2007.  For example, the 
Russia-Belarus 2007 trade agreement signed in late March helped 
increase Russian beer on-the-year imports in January-February by 62 
percent. 
 
¶10. Imports of Inexpensive Moldovan Wines Reduced 
 
Belarus' imports of inexpensive wines from Moldova -- which 
represents 90 percent of the Belarusian market -- decreased on the 
year in January-March by 58 percent.  The slump was caused by the 
Moldovan government's requirement to export wine materials to 
Belarus and Ukraine only via a newly established joint venture.  In 
the meantime, wine imports from Bulgaria rose by 30 percent, from 
Italy by 34 percent, and from France by 3 percent.  Nevertheless, 
the additional imports from these three countries did not fully 
compensate for the decrease in Moldovan wine imports. 
 
DOMESTIC ECONOMY 
---------------- 
 
¶11. Expensive Internet Slows Down E-trade in Belarus 
 
At the "IT in Trade and Services Sector" conference on April 27, 
independent expert Sergey Povalishev named expensive Internet access 
as the major problem for Belarus' nascent e-business. Internet 
prices in Minsk are higher than in Moscow but comparable with those 
in other places in Russia.  Povalishev also cited excessive 
licensing and expensive registration of domain names as other 
impediments to e-trade in Belarus.  In addition, internet 
advertising on Belarusian websites is virtually non-existent, 
comprising only USD 1.5 million of Belarus' overall USD 60 million 
advertising market. 
 
¶12. Belshina to Stop Internet Sales 
 
Belarusian tire manufacturer Belshina told Prime-Tass news service 
on April 27 that it was allowed to stop selling its products 
electronically and set its product prices independently.  The 
decision was made by the governmental oil and chemical industry 
agency Belneftekhim, which revoked its own decision that obliged all 
subordinate manufacturers, including Belshina, to sell products over 
the internet.  Although e-sales helped Belshina increase its exports 
in 2006 by 140 percent, unstable prices scared off many of its 
traditional consumers, including U.S. tractor company Caterpillar. 
Belshina hopes to use this new sales strategy to build long-term 
relations with its consumers and improve maintenance and technical 
support. 
 
 
MINSK 00000358  003 OF 003 
 
 
¶13. QUOTE OF THE WEEK 
 
On April 27, President Lukashenko outlined the GOB's strategy for 
selling government property: 
 
"All want to get our property for a song.  Pay us big money and we 
will sell you what works poorly, but we will not sell what works 
well." 
 
STEWART