VZCZCXRO9388
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
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DE RUEHSK #0728/01 2361344
ZNR UUUUU ZZH
R 241344Z AUG 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6413
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 000728 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - August 24, 2007 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Neo-Nazis Threaten Vitebsk Activist (para. 2) 
- Police Prevent Solidarity Demonstration (para. 3) 
- Vendors Hold Spontaneous Protest at Minsk Market (para. 4) 
- Opposition and NGOs Hold Forum on Benefit Cuts (para. 5) 
- Police Disrupt Camping Trip, Detain Youths (para. 6) 
 
Domestic Economy 
---------------- 
 
- Cyprus Company Buys Full Control of GSM Provider (para. 7) 
- Fewer Companies in the Red (para. 8) 
- Minister: Belarus Cannot Do Without Nuclear Energy (para. 9) 
- S&P Rates Belarus B+ Long-Term, B Short-Term (para. 10) 
 
International Trade 
------------------- 
 
- Belarus Eyeing Increased Ties With Vietnam (para. 11) 
 
- Quote of the Week (para. 12) 
 
------------- 
Civil Society 
------------- 
 
¶2.  Neo-Nazis Threaten Vitebsk Activist 
 
On August 17, four opposition activists in Vitebsk received 
threatening letters signed by members of the neo-Nazi Russian 
National Unity organization.  The letters are a response to the red 
and white opposition flags that are placed monthly throughout 
Vitebsk, and threaten Miron, the anonymous figure who takes 
responsibility for the flags, with "punishment" if he flies the 
white-red-white nationalist symbol again. 
 
¶3.  Police Prevent Solidarity Demonstration 
 
On August 16, police in riot gear dispersed a demonstration in Minsk 
held in solidarity with Belarusian political prisoners. When 
participants approached Freedom square to demonstrate with candles 
and pictures of the prisoners, they were surrounded by police and 
forced onto a trolley, which took them to a market in another area 
of the city.  A similar demonstration was held unhindered elsewhere 
in Minsk, though opposition leaders were followed closely by 
plainclothes policemen and youth activist Nikita Sasim was arrested 
later that night.  Friends with Sasim at the time tried to resist 
the police, but were beaten.  One, Tatyana Tishkevich, was kicked in 
the head and suffered swollen kidneys, which kept her hospitalized 
for over a week.  The day after Sasim's arrest, a Minsk Court 
convicted him of petty hooliganism for allegedly using obscene 
language and sentenced him to ten days in prison.  The 
demonstrations were part of a "Day of Solidarity" remembrance, held 
on the sixteenth of every month since September 2005 in memory of 
two opposition figures who went missing on the sixteenth of 
September 1999. 
 
¶4.  Vendors Hold Spontaneous Protest at Minsk Market 
 
On August 19, over one hundred vendors at the Zhdanovichi shopping 
complex held a protest against government tax agents.  The agents 
were threatening to confiscate the entire stock of a coat-seller's 
stall after a salesperson there failed to produce paperwork in 
compliance with new regulations.  Police broke up the demonstration 
shortly afterwards and the tax agents left to obtain a confiscation 
warrant from a court.  The spokesperson for a local small business 
association later released an open letter to the tax ministry 
criticizing the new regulations and described the protest as a 
"nervous breakdown" following recent government pressure on small 
businesses. 
 
¶5.  Opposition and NGOs Hold Forum on Benefit Cuts 
 
On August 19, about 40 representatives of opposition parties and 
NGOs held a forum in Minsk to discuss the extensive social benefits 
cut that the GOB has scheduled for December.  The meeting resulted 
in plans to hold two street protests against the cut and a 
resolution criticizing the cut and the legislators who approved it. 
 
 
¶6.  Police Disrupt Camping Trip, Detain Youths 
 
On August 18, police apprehended seventeen youth members of the 
 
MINSK 00000728  002 OF 002 
 
 
Belarusian Popular Front while they were on a camping trip in the 
Brest region.  The officers then brought them to a local police 
station to await charges of petty hooliganism for allegedly using 
obscene language.  Later, however, the police escorted the 
opposition members onto a Minsk-bound train and released them 
without charges. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶7.  Cyprus Company Buys Full Control of GSM Provider 
 
Interfax news service reported on August 22 that SB-Telecom of 
Cyprus to take over Velcom, Belarus' second largest GSM phone 
services provider.  SB-Telecom, which already olds a 49-percent 
stake in Velcom, will purchase the remaining 51-percent stake from 
the state.  This will make Velcom, which has a client base of 2.7 
million people and is on the top-twenty list of Belarus' biggest 
taxpayers, a fully foreign-owned business.  The price and other 
details of the deal have not been disclosed. 
 
¶8.  Fewer Companies in the Red 
 
On August 21, the Statistics Ministry announced that 12.4 percent of 
all Belarusian companies are operating at a loss, down 14.2 percent 
in 2006.  The rate has decreased in the industrial sector from 23.2 
to 20.3 percent, and the transport sector from 13.8 to 12.4 percent, 
while it has increased in the agriculture sector from 1.7 to 2 
percent, construction from 11.4 to 13.4 percent, and communications 
from 5.7 to 7.1 percent. 
 
¶9.  Minister: Belarus Cannot Do Without Nuclear Energy 
 
Economics Minister Nikolay Zaychenko stated on August 21 that 
Belarus cannot do without atomic energy.  "In view of that situation 
which is developing with Russia and the increasing cost of gas, 
power production has become very expensive", he declared, pointing 
out that the majority of power stations in the country use gas.  The 
question of constructing an atomic power station in Belarus, 
according to minister, "is essentially decided.  In order to provide 
the country energy based on locally-produced fuels, we must turn to 
non-conventional energy sources." 
 
¶10.  S&P Rates Belarus B+ Long-Term, B Short-Term 
 
On August 21, The Finance Ministry announced that the Standard and 
Poor's Ratings Service had bestowed on Belarus a B+ long-term 
sovereign credit rating and a B short-term sovereign credit rating. 
According to the Ministry, the ratings result from relatively high 
wealth and development levels, low general government debt, a 
relatively strong external balance sheet, significant economic 
potential, and a highly educated workforce.  The Ministry said that 
this confirms Belarus' economic stability and attractiveness to 
foreign investors. 
 
------------------- 
International Trade 
------------------- 
 
¶11.  Belarus Eyeing Increased Ties with Vietnam 
 
During an August 20 meeting with Vietnam's Public Security Minister, 
President Lukashenko said he hopes to meet the Vietnamese president 
to address political and economic cooperation and to possibly sign 
further bilateral agreements.  At present, annual trade between the 
countries amounts to less than USD 50 million, but has experienced 
25 percent growth in recent years.  Lukashenko said Belarus would 
like to become Vietnam's strongest partner in Europe and is 
committed to dramatically expanding trade.  In a separate meeting at 
the headquarters of the Belarusian Almaz anti-terror unit, Interior 
Minister Victor Naumov met with Le Hong An, Vietnam's Minister of 
Public Security.  The two discussed cooperation in law enforcement, 
particularly regarding training and anti-terrorism police units. 
 
---------------------- 
¶12.  Quote of the Week 
---------------------- 
 
Is that your final answer? -- Eighteen year-old Tatyana Tishkevich, 
whom militia members beat while forcibly dispersing a Solidarity Day 
demonstration on August 16: 
 
"I have already submitted the application [to press charges] to the 
militia.  In the morning the militiaman came to the hospital, but he 
didn't want me to write anything.  He would ask 'Is it your final 
decision to press charges?' I unambiguously answered 'Yes, it is.'" 
 
Moore