VZCZCXRO0596
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHMRE RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0678/01 2151210
ZNR UUUUU ZZH
R 031210Z AUG 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6344
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 02 MINSK 000678 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - AUGUST 3, 2007 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Neo-Nazi Activist Jailed (para. 2) 
- Disabled Children Seek Greater State Support (para. 3) 
- Two Protestants Briefly Detained (para. 4) 
- Human Rights NGO Seeking Re-Registration (para. 5) 
- Law Officers Complete Anti-TIP Training (para. 6) 
 
Domestic Economy 
---------------- 
 
- GOB Reports That Investment Reached USD 1 Billion (para. 7) 
- Belarus' Trade Deficit Rises (para. 8) 
- Potash Sales In 2007 at Record High (para. 9) 
 
International Trade 
------------------- 
 
- Lukashenko Allows Foreign Purchase of Motovela (para. 10) 
- Venezuela's USD 500 Million Loan to Belarus Project (para. 11) 
 
- Quote of the Week (para. 12) 
 
------------- 
Civil Society 
------------- 
 
¶2.  Neo-Nazi Activist Jailed 
 
A Gomel court on July 27 sentenced Mikhail Yakovchuk, an activist of 
the Russian-based neo-Nazi group Russian National Unity (RNE) to six 
months in jail for participating in an unregistered organization. 
Yakovchuk defied earlier warnings from the prosecutor's office and 
continued to distribute printed materials and recruit new members. 
The Belarusian Helsinki Committee voiced concern over the mild 
sentence, citing that the Criminal Code provides harsher punishment 
for inciting ethnic and religious hatred.  Yakovchuk is the first 
non-opposition member penalized under the controversial Article 193, 
which many human rights NGOs view as unconstitutional. 
 
¶3.  Disabled Children Seek Greater State Support 
 
On July 27, the Association of Disabled Children with Cerebral 
Paralysis and Spinal Pathology in Gomel appealed to authorities to 
increase state support to families with disabled children.  The 
120-member association sent copies of the appeal to the Presidential 
Administration, Parliament, and the Ministry of Labor and Social 
Security.  Head of the association Elena Maksimova pointed out that 
the monthly allowance to parents with a disabled child over 18 years 
of age was only USD 20 and for underage children USD 65.  Moreover, 
parents with disabled children are not able to earn a decent living 
as they must constantly take care of the children and purchase 
expensive medicines.  Maksimova cited the "miserable" conditions for 
such families and doubted that authorities would take measures to 
alleviate their situation. 
 
¶4.  Two Protestants Briefly Detained 
 
Dmitriy Butenko and Andrey Litvinov, members of the Minsk-based 
Protestant New Life Church (NLC) community, were detained on July 
¶27.  Police apprehended the two activists in downtown Minsk as they 
were planning to collect signatures for a petition calling for the 
liberalization of Belarus' discriminatory religion law.  They were 
taken to a nearby police station, charged with distributing illegal 
printed materials, and released two hours later.  NLC lawyer Sergey 
Lukanin maintained that the detention was illegal because Butenko 
and Litvinov had not distributed any leaflets.  He also vowed that 
NLC activists would continue collecting signatures despite GOB 
harassment. 
 
¶5.  Human Rights NGO Seeking Registration 
 
Staff of human rights NGO Vyasna on July 31 reported that they 
applied for re-registration with the Ministry of Justice (MOJ) on 
July 23.  This is Vyasna's first attempt after losing registration 
in October 2003.  Human rights lawyer Vladimir Labkovich reiterated 
that the chances of obtaining registration was "zero" since the GOB 
repeatedly fails to observe and protect citizens' rights.  According 
to Labkovich, an MOJ official unofficially told him that registering 
Vyasna was a "political decision" that had already been made. 
 
¶6.  Law Officers Complete Anti-TIP Training 
 
Twenty-six police officers from Belarus, Armenia, Georgia, Moldova, 
 
MINSK 00000678  002 OF 002 
 
 
Ukraine and other countries completed educational courses at the 
international center for anti-TIP and illegal migration training at 
the Ministry of the Interior (MVD) Academy July 31.  The officers 
studied various issues related to TIP and migration, ranging from 
international and Belarusian legislation on human trafficking to 
interacting with TIP victims.  MVD Academy professors and Belarusian 
scholars developed the courses and invited experts from the 
International Organization for Migration to speak.  The Academy will 
soon enroll more law enforcement agents to study social and 
psychological rehabilitation for TIP victims, trends in migration, 
and legal instruments for its regulation. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶7.  GOB Reports That Investment Reached USD 1 Billion 
 
Prime Minister Sergey Sidorskiy told the Cabinet on July 31 that 
economic investment in Belarus increased 20 percent in January-June 
to USD 1 billion.  In that time, the money market and inflation 
remained stable.  The economy's biggest concern was the growing 
foreign trade deficit caused by higher energy prices and intensive 
import. 
 
¶8.  Belarus' Trade Deficit Rises 
 
The statistics ministry on July 31 announced that Belarus' foreign 
commodity trade deficit doubled in January-June on the year to USD 
1.8 billion.  The ministry attributed the deficit to a 22.4 percent 
increase in imports and only a 15.3 percent rise in exports. 
Belarus' trade deficit with CIS countries reached USD 3.2 billion 
(primarily with Russia).  Belarus had a USD 1.4 billion surplus in 
trade with non-CIS countries. 
 
¶9.  Potash Sales In 2007 at Record High 
 
Deputy Prime Minister Vladimir Semashko announced July 31 that 
Belarusian Potassium Company would increase its on-the-year sales in 
2007 by 20 percent to USD 1.2 billion.  The company, jointly 
controlled by Belaruskaliy and Russia's Uralkaliy, was established 
in 2005 to sell Belarusian and Russian-made potassium fertilizers in 
the world markets without intermediaries.  According to Semashko, 
the Belarusian Potassium Company now sells fertilizers at a 
record-high USD 300 per ton, while only two years ago the price 
ranged from USD 110-120 per ton. 
 
------------------- 
International Trade 
------------------- 
 
¶10.  Lukashenko Allows Foreign Purchase of Motovelo 
 
On July 31, Lukashenko allowed Austria's ATEC Holding GMBH to 
purchase the GOB's 99 percent stake at the Minsk bicycle/motorcycle 
manufacturer Motovelo.  Under the agreements, ATEC will settle the 
company's debts and invest at least USD 20 million to continue the 
production of bikes while using the same brand name.  In previous 
speeches Lukashenko often praised ATEC for investing in Belarus 
without competing with traditional domestic industries. 
 
¶11.  Venezuela's USD 500 Million Loan to Belarus Project 
 
Deputy Prime Minister Semashko informed the GOB on July 31 that 
Venezuela issued a USD 500 million loan to fund joint venture 
projects with Belarus in 2007.  According to Semashko, Venezuelan 
President Hugo Chavez promised that should the projects develop as 
planned, his governnment would issue 15 yearly USD 500 million loan 
installments to Belarus at 3.5 percent interest.  Semashko mentioned 
that important joint projects with Venezuela included oil 
exploration and extraction, housing construction, and food supplies. 
 
 
---------------------- 
¶12.  Quote of the Week 
---------------------- 
 
According to independent news portals, on July 25 lead singer of the 
Rolling Stones Mick Jagger -- whose group performed in Warsaw -- 
told representatives of the Belarusian Free Theater that he was 
interested in the situation in Belarus and hoped it would one day be 
a free European country.  In the best Belarusian he could muster, 
Jagger allegedly proclaimed the opposition slogan "long live 
Belarus!" 
 
Stewart