VZCZCXRO4116
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHMRE RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0654/01 2080930
ZNR UUUUU ZZH
R 270930Z JUL 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6318
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 000654 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EPET ENRG BO
SUBJECT: Embassy Minsk Weekly Pol/Econ Report - July 26, 2007 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
- Solidarity Road Tour Participants Detained (para. 2) 
- Opposition Movement Denied Registration (para. 3) 
- GOB to Establish Nuclear Regulatory Agency (para. 4) 
- Forensic Experts Examine Human Remains (para. 5) 
- Dismissed KGB Chief Denies Rumors of His Arrest (para. 6) 
- Trade Union Member Fired After Assault (para. 7) 
 
Domestic Economy 
---------------- 
- Lukashenko Appoints New Heads of State Industries (para. 8) 
- Potash Exports in January-May Up in Volume and Price (para. 9) 
- State Company Sole Tobacco Importer (para. 10) 
- Belarus To Upgrade Cement Industry (para. 11) 
 
International Trade 
------------------- 
- USD 1 Billion Military Contract With Venezuela (para. 12) 
 
- Quote of the Week (para. 13) 
 
------------- 
Civil Society 
------------- 
 
¶2. Solidarity Road Tour Participants Detained 
 
On July 20, police in Shklov (Mogilyov oblast) detained 13 youth 
activists touring Belarus in support of imprisoned Malady Front (MF) 
leader Dmitry Dashkevich and other jailed/indicted activists. 
Police had seized the youth's vehicles at the beginning of the tour 
on July 19, forcing the activists to continue their journey to 
Shklov by train and bus.  All were released without being charged. 
Before their detention, participants upon arrival learned that 
Shklov prison authorities had isolated jailed MF activist Artur 
Finkevich and would not allow him visitors. 
 
¶3. Opposition Movement Denied Registration 
 
Opposition leader Aleksandr Milinkevich's press office reported on 
July 21 that the Ministry of Justice (MOJ) denied registration to 
his For Freedom movement (FF).  FF founders received a written 
notice from the MOJ citing errors in the movement's charter as 
grounds for the denial.  FF called the decision "baseless," 
"self-contradictory", and another sign of the GOB's "reluctance" to 
liberalize Belarus.  FF legal experts are studying the MOJ's letter 
and will appeal the decision.  Milinkevich asserted that FF would 
continue to seek registration and proceed with its activities 
despite GOB harassment. 
 
¶4. GOB to Establish Nuclear Regulatory Agency 
 
On July 23, the GOB announced plans to establish an agency to 
supervise nuclear power plant (NPP) operations in anticipation of 
Belarus' plans to build an NPP by 2015.  Emergency Ministry 
representative Valentin Karpitsky on July 23 noted that the 
establishment of an independent regulatory agency for safety was an 
International Atomic Energy Agency requirement for NPP construction. 
 He added that the ministry was researching opportunities of 
employing local experts or recruiting Lithuanian specialists who 
might move to Belarus following the scheduled NPP Ignalina closure. 
GOB officials earlier stated that the final decision on the location 
of Belarus' NPP would be made by mid-2008.  Two sites are currently 
being explored. 
 
¶5. Forensic Experts Examine Human Remains 
 
Forensic experts with the State Forensic Examination Service 
reported on July 23 that the people whose remains were recently 
found in a mass grave near Gomel were killed between 1937 and 1943. 
The service claimed they could not establish a more exact date. 
Independent historians and civil society groups maintain that based 
on local resident testimony, the people in the grave were executed 
by Stalin's NVKD in the late 1930s. 
 
¶6. Dismissed KGB Chief Denies Rumors of His Arrest 
 
In a July 24 interview with the independent newspaper Narodnaya 
Volya (NV), former Belarusian KGB (BKGB) Chief Stepan Sukharenko 
denied rumors of his arrest, saying he was on a vacation with his 
family in the countryside.  Sukharenko admitted that he anticipated 
his dismissal, but refused to discuss it, as it was a "presidential 
decision."  The former BKGB chief stressed that his duties were to 
execute laws and maintain security in Belarus and he was never 
 
MINSK 00000654  002 OF 003 
 
 
involved in any illegal criminal games for power and resources. 
Sukharenko pledged to continue to serve and support President 
Lukashenko, although he had not yet received a new position. 
 
¶7. Trade Union Member Fired After Assault 
 
Independent union of electronic industry workers (REP) member and 
security guard at a state agricultural company in Gomel Aleksandr 
Beresnyev on July 25 received a letter from his employer informing 
him of his dismissal due to "contract expiration."  Beresnyev claims 
his labor contract does not include time limits and the reason for 
its immediate termination was not clear.  A REP legal expert filed 
an appeal for Beresnyev, who is still recovering from severe head 
injuries after being beat up in June on the company's compound 
during regular working hours.  Beresnyev linked his beating to a 
complaint he submitted to the Presidential Aide's office in Gomel 
about his company's violation of labor regulations and mistreatment 
of personal.  After the assault, management did not assist Beresnyev 
and would not cooperate with the investigation.  Beresnyev concluded 
that the company's management disabled him only to throw him out on 
the street. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8. Lukashenko Appoints New Heads of State Industries 
 
Lukashenko on July 23 appointed new heads to major state industries 
and pledged that all civil servants would be under his control in 
order to prevent corruption.  The president also promised to 
scrutinize relationships between state industries and private 
intermediaries, or "middlemen."  Lukashenko appointed Valeriy 
Kazakevich to Head of Belarus' petrochemical concern Belneftekhim, 
replacing Alexander Borovsky who is currently under arrest for 
embezzlement, abuse of authority and disclosure of secret 
information.  Lukashenko appointed Vladimir Zubkov to direct the 
newly established Belarusian Petroleum Company, which will be a 
monopoly supplier of crude oil in Belarus and exporter of 
Belarusian-made oil products.  Vladimir Mayorov became the new 
general director of the natural gas transport monopoly Beltransgaz. 
 
 
¶9. Potash Exports in January-May Up in Volume and Price 
 
The Statistics Ministry on July 23 announced that the sale price of 
Belarusian potash fertilizer for export increased on the year in 
January-May by 6.6 percent to USD 273 per ton.  During the same time 
period, export volume increased 53.3 percent to 1.7 million tons. 
The biggest export increases were to China (440 percent) and India 
(180 percent).  Belarus' manufacturer Belaruskaly accounts for 15 
percent of the world's potash fertilizer production. 
 
¶10. State Company Sole Tobacco Importer 
 
The Trade Ministry told reporters on July 23 that Belarustorg, a 
state-controlled company established by the Presidential 
Administration, would become the monopoly importer of cigarettes and 
other tobacco products.  Three other importers (including 
British-American Tobacco) with combined imports of 1.5 billion units 
per year are expected to go out of business by the end of 2007.  In 
addition, Belarus will honor its March 23 agreement with Russia by 
abolishing all tobacco import quotas on October 1. 
 
¶11. Belarus To Upgrade Cement Industry 
 
On July 24, Lukashenko approved the government program of upgrading 
Belarus cement industry in order to triple production by 2011. 
Belarus' construction boom and its export obligations caused a 
severe deficit of cement in 2006 and 2007.  The country turned down 
proposals from foreign investors to upgrade its three state-owned 
cement manufacturers, instead opting for USD 600 million in foreign 
loans to pay for new Chinese-made production equipment. 
 
------------------- 
International Trade 
------------------- 
 
¶12. USD 1 Billion In Military Contract With Venezuela 
 
Head of the Security Council Viktor Sheiman -- who also co-chairs 
the Belarus-Venezuela committee on economic cooperation -- announced 
on July 22 that Belarus and Venezuela drafted numerous military 
contracts totaling USD 1 billion in military sales.  According to 
Sheiman, Venezuelan defense ministry officials and President Chavez 
already approved the drafts.  Sheiman predicted that the military 
contracts and USD 250 million worth of economic agreements (which 
Sheiman drafted with Venezuelan counterparts during his July 9-19 
visit to Caracas) would be signed at the end of July.  Belarus' 
major project in Venezuela is extraction of oil in the basin of the 
 
MINSK 00000654  003 OF 003 
 
 
Orinoco River.  Venezuela also plans to contribute USD 500 million 
to the Belarusian investment fund to finance investment projects 
with large Belarusian industries. 
 
--------------------- 
¶13. Quote of the Week 
--------------------- 
 
Mocking Lukashenko's choices to head Belarus' leading state 
enterprises, independent economist Leonid Zaiko made the following 
statement: 
 
"Perhaps the new chiefs of the oil and gas complex have nothing to 
do with those who earlier bought or sold gas.  Perhaps they simply 
play soccer or ice hockey very well." 
 
Stewart