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ZNR UUUUU ZZH
R 271633Z SEP 07 ZDK ZUI RUEHZC #1430 2711455
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6523
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNOSC/ORGANIZATION FOR SECURITY AND COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 03 MINSK 000825 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - September 28, 2007 
 
MINSK 00000825  001.3 OF 003 
 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Leaflets against Edicts Seized at Market (para. 2) 
- Corruption Case Sent to Supreme Court (para. 3) 
- Activist Hospitalized After Arrest (para. 4) 
- Participants of Festival in Ukraine Harassed (para. 5) 
- Activist Accused of Destructive Activities (para. 6) 
- Youth Obscenities Case Sent for Revision (para. 7) 
- Belarus Ranked 150th in Corruption (para. 8) 
 
International Relations 
----------------------- 
 
- Belarus Preparing for Peacekeeping Missions (para. 9) 
 
Domestic Economy 
---------------- 
 
- Tax Cuts - Only If Social Benefits Slashed (para. 10) 
- Belarus Delays Accounting Compliance (para. 11) 
- High Yield Ascribed to Rural Revival Program (para. 12) 
- Belarus to Upgrade Energy Generation (para. 13) 
 
International Trade 
------------------- 
 
- Russian Bank to Raise Loan Limit (para. 14) 
 
- Quote of the Week (para. 15) 
 
------------- 
Civil Society 
------------- 
 
¶2.  Leaflets against Edicts Seized At Market 
 
On September 26, police at the Zhdanovichi market in Minsk seized 
about 800 copies of a leaflet against Aleksandr Lukashenko's 
restrictive edicts on sole entrepreneur hiring.  The leaflet invited 
market vendors to observe Entrepreneurs' Day on October 2 and to 
express their disapproval of a recent edict banning sole 
entrepreneurs from hiring workers other than three family members 
after January 1, 2008.  Activists had just started passing out the 
leaflets when a police officer came to seize them. 
 
¶3.  Corruption Case Sent to Supreme Court 
 
The corruption case against Uladzimir Kholad, former first deputy 
head of the Presidential Administration's Main Ideology Office and 
head of the Ideological Work Coordination Office, has been sent to 
the Supreme Court of Belarus.  Kholad, who is accused of large-scale 
fraud and solicitation of bribes, has been held in custody since 
June 30 when he was arrested while allegedly receiving a bribe of 
USD 35,000. 
 
¶4.  Activist Hospitalized After Arrest 
 
Authorities arrested 53-year-old Vasil Siliverst, a member of the 
opposition United Civic Party and a founding member of an 
association of Chernobyl cleanup veterans, in Rechytsa on September 
¶22.  There to attend the national harvest festival featuring 
Aleksandr Lukashenko, Siliverst was arrested and subsequently 
hospitalized.  His violent arrest by seven plainclothes officers and 
emotional stress required a trip to the local hospital, where he was 
diagnosed with extremely high blood pressure.  Siliverst staged a 
hunger strike in August to protest government doctors' refusal to 
recognize a link between his 80-day cleanup effort in Chernobyl and 
his numerous ailments.  If doctors certified his service caused the 
ailments, Siliverst would receive a higher pension and more 
privileges. 
 
¶5.  Participants of Festival in Ukraine Harassed 
 
Belarusian police turned back spectators traveling by bus to a 
September 22 rock music festival in the Ukrainian city of Lutsk. 
The "The Right to Be Free" rock festival featured bands blacklisted 
in Belarus for their openly negative attitude toward the Lukashenko 
regime.  Police stopped the buses on the pretext that they exceeded 
the speed limit.  The passengers of the buses were put on another 
bus, which transported them back to Minsk under the escort of an 
armored paddy wagon.  Belarusian musicians who were expected to play 
at the festival managed to reach the Ukrainian border but were 
allowed to cross it only after waiting six hours. 
 
 
MINSK 00000825  002.3 OF 003 
 
 
¶6.  Activist Accused of Destructive Activities 
 
A KGB officer in Zhlobin, Gomel region, on September 21 accused 
18-year-old activist Kiryl Atamanchyk of acting on behalf of an 
unregistered organization.  The officer alleged that together with 
unidentified persons, Atamanchyk conducted destructive activities on 
behalf of Malady Front.  In particular, they allegedly painted the 
organization's symbols and "inscriptions of destructive content" on 
the facades of buildings and other structures with a view to 
"popularizing the ideology of the Malady Front organization and 
creating an illusion among the public that there existed broad 
resistance to the present government." 
 
¶7.  Youth Obscenities Case Sent for Revision 
 
A judge in Minsk ruled on September 21 that the obscenities case 
against Aleksandra Klimovich, a member of the youth wing of the 
Belarusian Popular Front (BPF), should be revised.  Police rounded 
up the girl and 15 other young BPF members, including four minors, 
while they were camping near the village of Kosava, Brest region. 
After a 10-minute hearing, the judge sent the case back to police 
for revision due to lack of evidence presented.  The obscenities 
charge against another BPF youth, Ilya Bohdan, was heard on 
September 20.  The judge suspended that trial until October 8 
because of the absence of witnesses. 
 
¶8.  Belarus Ranked 150th in Corruption 
 
Transparency International (TI) ranked Belarus 150 out of 180 
countries in its annual Corruption Perceptions Index (CPI) released 
on September 26.  Of the former Soviet countries, TI ranked Estonia 
28, followed by Latvia and Lithuania tied at 51, Georgia 79, Armenia 
99, Moldova 111, Ukraine 118, and Russia 143.  Belarus shared 150th 
place with Kazakhstan, Kyrgyzstan and Tajikistan.  It was followed 
by Turkmenistan and Venezuela tied at 162 and Uzbekistan at 175. 
 
----------------------- 
International Relations 
----------------------- 
 
¶9.  Belarus Preparing for Peacekeeping Missions 
 
The peacekeeping company of the 120th Detached Mechanized Brigade is 
preparing for peacekeeping missions, said the Commander of Belarus' 
Land Forces General Aleksandr Nikitsin last week.  During a briefing 
for journalists, Nikitsin said that participation in peacekeeping 
missions requires parliamentary approval, and that only contract 
soldiers who volunteer for missions are allowed to take part.  The 
company has been training in 2007 and has held drills under 
supervision of foreign military experts.  The unit was formed in 
2004 after Belarus subscribed to the NATO Partnership for Peace 
Planning and Review Process. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶10.  Tax Cuts - Only If Social Benefits Slashed 
 
Deputy Economy Minister Tatyana Starchenko stated that although the 
ministry sought to reduce the country's tax burden for 2008, it 
remains high due to ever increasing energy prices and the budget's 
high social expenses.  Speaking at a roundtable on taxation on 
September 20, Starchenko also said that the ministry fully realizes 
the country's tax system should encourage business and assured it is 
prepared to act accordingly, but would only be able to do so by 
reducing access to free education, medical services, and subsidies 
to utility providers. 
 
¶11.  Belarus Delays Accounting Compliance 
 
On September 20, Belarusian Deputy Finance Minister Ivan Shunko told 
a roundtable on taxation that his ministry withdrew its requirement 
that all businesses in the country comply with International 
Accounting Standards (IAS) beginning in 2008.  So far only 18 
Belarusian businesses meet compliance guidelines.  The Finance 
Ministry now plans to issue a new regulation, which encourages 
rather than obliges such compliance.  A key divergence from 
standards is the valuation of assets -- Belarusian companies count 
social infrastructure as an asset, though under international 
standards it must be removed from balance sheets because it does not 
return profits. 
 
¶12.  High Yield Ascribed to Rural Revival Program 
 
Speaking at the annual harvest fair on September 22, President 
Aleksandr Lukashenko ascribed the record-high yield of grain and 
legumes to his rural revival program, which subsidizes largely 
inefficient Soviet-style farms in Belarus.  Lukashenko stated that 
the good yield will protect the country from skyrocketing grain 
 
MINSK 00000825  003 OF 003 
 
 
prices on the world market and will allow more Belarusian 
agricultural exports to neighboring countries.  He also claimed 
farming in Belarus has become more efficient but admitted much of 
the USD 1.5 billion annually invested is spent unwisely, saying the 
subsidy policy will change soon to make sure only profitable 
projects receive assistance. 
 
¶13.  Belarus to Upgrade Energy Generation 
 
According to Belarus' Energy Minister Aleksandr Ozerets, the country 
plans to spend USD 9.9 billion to upgrade its energy generation 
facilities.  Presenting a draft energy saving program to the Cabinet 
of Ministers on September 25, Ozerets said a three-year program will 
increase the country's power generating capacities, reduce 
generation costs, and increase energy efficiency in industrial 
production.  Funding for the program will come from Energy 
Ministry's Innovation Fund, depreciation charges, business revenues, 
and borrowing. 
 
------------------- 
International Trade 
------------------- 
 
¶14.  Russian Bank to Raise Loan Limit 
 
Rosbank, one of Russia's largest financial institutions, plans to 
raise the limit on the amount of loans issued to Belarusian 
companies from USD 750 million to USD 1 billion and increase its 
lending for deals involving the supply of oil to Belarus.  During 
his recent visit to Minsk, bank chairman Aleksandr Popov said that 
Rosbank would also double the authorized capital of its Belarus 
subsidiary, Belrosbank, within the next 18 months. 
 
---------------------- 
¶15.  Quote of the Week 
---------------------- 
 
Viktor Ivashkevich, Deputy Chairman of the Belarusian Popular Front 
and chief organizer of October's European March, after a judge sent 
his case of supporting an illegal demonstration back to the district 
police: 
 
"One hand does not know what the other is doing, and the head is not 
working at all." 
 
Stewart