VZCZCXRO3291
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHMRE RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0542/01 1731338
ZNR UUUUU ZZH
R 221338Z JUN 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6182
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 03 MINSK 000542 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - June 22, 2007 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
International Relations 
----------------------- 
 
- South African Delegation Visits Belarus (para. 2) 
 
Civil Society 
------------- 
 
- Minsk Authorities Want to Remove Small Retail Kiosks (para. 3) 
- GOB Hosts Summer Camps for Disadvantaged Youth (para. 4) 
 
Religion 
-------- 
 
- Judge Denies Deported Protestant Pastor's Appeal (para. 5) 
- Protestants Pray to Change Religious Law (para. 6) 
- Minsk Hosts Catholic Bishops' Conferences (para. 7) 
 
Domestic Economy 
---------------- 
 
- Almost 19 Percent Retail Turnover Growth in Belarus (para. 8) 
- Belarus' Industrial Output up 7.7 Percent (para. 9) 
 
International Trade 
------------------- 
 
- GOB Fails To Meet Export Surplus Goals (para. 10) 
- GOB Reports USD Half-Billion Energy Trade Deficit (para. 11) 
 
- Quote of the Week (para. 12) 
 
----------------------- 
International Relations 
----------------------- 
 
¶2.  South African Delegation Visits Belarus 
 
On June 17, a group of representatives from South Africa's upper 
house of Parliament arrived in Minsk to discuss trade and 
cooperation with Belarus.  The delegation met with their 
counterparts in the Belarusian Parliament, President Lukashenko, the 
Deputy Chairman of the Chamber of Commerce and Industry, as well as 
the head of the Academy of Science.  The talks focused on production 
of synthetic fuels from Belarusian coal, as well as water 
purification and pharmaceutical manufacturing as possible projects 
for South African-Belarusian collaboration.  Both parties have 
repeatedly cited the active involvement of both Belarus and South 
Africa in the Non-Aligned Movement as grounds for increasing 
cooperation.  An interstate commission for trade and economic 
cooperation between the two countries will begin operating in July. 
 
 
------------- 
Civil Society 
------------- 
 
¶3.  Minsk Authorities Want to Remove Small Retail Kiosks 
 
On June 19, independent media reported that the Minsk sanitary 
authorities are considering removal of all the private retail kiosks 
in the city citing the lack of sewer access and the kiosks "being an 
eyesore."  Head of the Minsk city Center for Hygiene and 
Epidemiology Fedor Germanovich maintained that "order should always 
be both inside and outside the kiosk, and there is none at present." 
Retail kiosks are currently located only at bus stops.  Small 
business and entrepreneurs associations criticized Germanovich's 
statements, and believe authorities are trying to shut down small 
retail trade network in Minsk.  They also suggest the large grocery 
store chains supported the proposal, which will help them increase 
their revenues. 
 
¶4.  Interior Ministry Hosts Summer Camps for Disadvantaged Youth 
 
On June 19, independent media reported that Interior Troops units 
opened 15 military summer camps to host more than 700 teenage boys, 
mostly from disadvantaged families.  The camps are located 
throughout Belarus, and their declared curricula and activities 
include "spiritual, moral, historical, and patriotic" education for 
boys of pre-draft age, as well as training them for future military 
service. 
 
-------- 
Religion 
-------- 
 
MINSK 00000542  002 OF 003 
 
 
 
¶5.  Judge Denies Deported Protestant Pastor's Appeal 
 
On June 20, BelaPAN independent news agency reported that a Myadel 
District Court judge denied Polish Protestant Pastor Yaroslav 
Lukasik's appeal to challenge the GOB's annulment of his permanent 
residence permit and expulsion orders.  Authorities forced Lukasik 
to return to Poland leaving behind his wife and three children as 
the BKGB accused him of conducting illegal religious activities, 
partaking in radical politicized activities, and residing in an area 
different from his official registered residence.  Lukasik's wife 
stated that the judge had no valid grounds to deny the appeal since 
there was no proof of Lukasik 'being a threat to the national 
security of Belarus.'  She also noted that the family appealed to a 
higher court in Minsk; however, the papers related to the case were 
lost.  A police officer said "the incident is over" as expulsion 
orders can only be appealed within five days following the issuance. 
 Lukasik's wife demanded the police find the papers and the court 
uphold her appeal. 
 
¶6.  Protestants Pray to Change Religious Law 
 
On June 17, more than 500 Protestant communities across Belarus 
gathered at churches to conduct prayer services calling for changes 
in the religion law that they see as discriminatory against the 
Protestant congregations.  Sergey Lukanin, Protestant lawyer, 
explained that the Protestants wanted "to ask God to intervene in 
the dispute between the government and the Protestant communities." 
He also noted it was one of the largest events to protest the 
religion law and that more than 20,000 people have signed a petition 
to challenge the law since the signature collection campaign started 
on April 22.  The objective of the campaign is to collect 50,000 
signatures, and send the petition to the President, the 
Constitutional Court, and the Parliament.  On June 15, according to 
independent media, 50,000 Belarusian Protestants throughout several 
denominations participated in a two-day fast following the GOB's 
arrest and fining of pastor Antony Bokun for holding an unauthorized 
prayer service. 
 
¶7.  Minsk Hosts Catholic Bishops' Conferences 
 
On June 18, the General Secretaries of Catholic Bishops' Conferences 
of Europe concluded their four-day forum held in Minsk.  It was the 
first time in the contemporary history of Belarus that the 
secretaries gathered in Minsk.  Antoni Dziemianko, Secretary General 
 
SIPDIS 
of the Bishops' Conference of Belarus and the Apostolic 
Administrator, briefed his counterparts about the issues that the 
Roman Catholic communities face in Belarus, including difficulties 
with building new churches in large cities, and assistance granted 
to the Belarusian Roman Catholics who immigrated to the European 
Union.  On June 15, the secretaries met with Metropolitan Philaret, 
Head of the Belarusian Orthodox Church.  According to Dziemianko, 
Metropolitan warmly greeted the secretaries and asserted 
constructive dialogue, mutual respect, and amicable relations 
between the two Churches in Belarus. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8.  Almost 19 Percent Retail Turnover Growth in Belarus 
 
On June 19, a GOB official announced that retail turnover in Belarus 
came to USD 65.4 billion in the first five months of 2007, up 18.8 
percent from the previous year.  The portion of sales comprised by 
private retailers and foreign retailers rose .4 percent to 81.6 
percent and 3.2 percent respectively, while the portion held by 
state-owned retailers fell .8 percent to 15.1 percent. 
Approximately 67 percent of turnover was through commercial 
organizations while the other 33 percent was by sole entrepreneurs, 
and 76.2 percent of retail sales were of Belarusian made goods. 
Retail sales growth for the whole year is projected at 9.5-10.5 
percent. 
 
¶9.  Belarus' Industrial Output up 7.7 Percent 
 
On June 18, a GOB official announced that Belarus' entire industrial 
output in the period of January to May 2007 amounted to over USD 16 
billion, a growth of 7.7 percent from 2006. Individual industries 
which experienced output growth during this period included 
engineering and metalworking (up 12.6 percent), fuel (up 0.2 
percent), chemical and petrochemical (up 17.5 percent), ferrous 
metallurgy (up 7.9 percent), construction materials (up 16.5 
percent), woodworking and pulp-and-paper (up 9.3 percent) and light 
industry (up 3.5 percent). However, the output of electrical power 
industry decreased (down 9.2 percent) as well as the output of the 
food industry (down 4.2 percent). Profitability of goods sold also 
decreased during the first five months of 2007, down to 12.6 percent 
from 15.7 percent during the same period of 2006. 
 
 
MINSK 00000542  003 OF 003 
 
 
------------------- 
International Trade 
------------------- 
 
¶10.  GOB Fails To Meet Export Surplus Goals 
 
On June 19, PM Sergey Sidorskiy, during a session of the Council of 
Ministers, admitted a failure to reach an export surplus in Belarus, 
despite individual targets for the development of international 
trade set for each Ministry.  Imports increased 22.1 percent to USD 
8.2 billion while exports only grew 11.6 percent to USD 7.4 billion. 
 He blamed insufficient production of consumer goods in Belarus for 
this failure and suggested that development of the canning industry 
could increase Belarus' exports.  Sidorskiy characterized an export 
surplus as a precursor to economic reform and predicted that Belarus 
would achieve an export balance of trade by the end of the year. 
President Lukashenko has declared achievement of an export surplus 
to be a primary goal. 
 
¶11.  GOB Reports Half-Billion Dollar Energy Trade Deficit 
 
On June 19, Economic Minister Nikolay Zaychenko reported to the 
Council of Ministers that Belarus imported USD 504.1 million more 
than it exported in foreign energy during the first four months of 
¶2007.  During the same period of 2006, Belarus' exports in this 
sector exceeded imports by USD 61.5 million. Contributing to this 
discrepancy is the USD 205.1 million decline in petrochemical 
exports between January-April 2006 and 2007, as well as USD 359 
million increase in natural gas imports.  Additionally, there were 
no exports of Belarusian crude oil during the period.  The minister 
predicted an improvement in the foreign energy trade figures to come 
with the establishment of the Belarusian Oil Company and efficiency 
upgrades made by the petrochemical company Belneftekhim, as well as 
when Belarusian refining of Russian crude oil resumes in June. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶12.  During an interview on June 20, outgoing British Ambassador to 
Belarus Brian Bennett offered the following parting admonition to 
the GOB: 
 
"Eventually Belarus will be a democratic country like its neighbors, 
and the only question is when that will happen.  A sensible approach 
would be to move towards this kind of society as quickly as 
possible.  People in the administration here should be thinking 
about how history will judge them, and at the moment I would imagine 
that the history's judgment would be rather harsh.  But there's 
still time, and I leave here optimistic." 
 
STEWART