VZCZCXRO6237
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0032/01 0181528
ZNR UUUUU ZZH
R 181528Z JAN 08
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6820
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHVEN/USMISSION USOSCE 1799
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 MINSK 000032 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - January 18, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- More Entrepreneur Leaders Jailed (para. 2) 
- BKGB Detains Journalists, Raids Apartment (para. 3) 
- Activist Journalist Banned From Travel (para. 4) 
- BPF Invites Perspektiva members to Join Party (para. 5) 
- Independent Paper Fined for Libel (para. 6) 
- Protestant Community Cleared of Charges (para. 7) 
 
Domestic Economy 
---------------- 
 
- Inflation Highest Since 2004 (para. 8) 
- Belarus Short of Domestic Investment Targets (para. 9) 
 
International Trade 
------------------- 
 
- Foreign Trade up 24 percent to USD 51.5 billion (para. 10) 
- Russian Concern Acquires Insurance Company (para. 11) 
 
Quote of the Week (para. 12) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  More Entrepreneur Leaders Jailed 
 
A Minsk district court sentenced Vitebsk-based small business 
leaders Sergey Parsyukevich and Aleksey Tolstyko January 15 to 
fifteen days incarceration on charges of participating in the 
unsanctioned January 10 entrepreneurs' demonstration.  Parsyukevich 
was summoned to a police station in Vitebsk and transported to Minsk 
on January 13.  The police arrested Tolstyko near his home January 
¶15. 
 
¶3.  BKGB Detains Journalists, Raids Apartment 
 
The BKGB and police officers detained independent journalists 
Vladimir Samoilov, Galina Samoilova, and cameraman Valery Buldyk in 
Minsk January 12.  Police alleged that the recording equipment they 
were using - which was their own - was stolen.  Police questioned 
the journalists for three hours about their work for the 
Poland-based Belsat satellite TV channel and confiscated the 
equipment.  In a separate incident January 12, the BKGB raided the 
flat of independent journalist Sergey Podsasonniy and seized his 
computer equipment and a video camera on the pretext of 
investigating his involvement in the opposition youth organization 
Malady Front. 
 
¶4.  Activist Journalist Banned From Travel 
 
Authorities have placed Malady Front member Boris Goretskiy on its 
travel ban list.  The activist, who currently works for "Nasha Niva" 
newspaper and Radio Racija, was expelled January 17 from a train in 
Gomel en route to Kyiv to attend a seminar there for radio 
journalists.  Goretsky stated that since he has no pending fines and 
there are no open criminal cases against him, the ban in his case is 
clearly politically motivated. 
 
¶5.  BPF Invites Perspektiva members to Join Party 
 
Belarusian Popular Front (BPF) deputy chairman Ales Mikhalevich 
invited Perspektiva members to join his party January 15, saying 
"the BPF fully supports the fair fight by entrepreneurs and 
employees for their right to work and the preservation of small 
business in Belarus."  After the Ministry of Justice announced plans 
earlier in the week to liquidate the group, Perspektiva's deputy 
head Olga Krumina stated that if Perspektiva is liquidated, its 
members may either establish a political party or join an existing 
opposition group. 
 
¶6.  Independent Paper Fined for Libel 
 
A court in Mogilyov Oblast has upheld a libel suit against the 
publisher of local independent newspaper "Volny Horad."  The editor 
of the government-controlled newspaper "Leninskiy Klich" filed the 
lawsuit based on an article in "Volny Horad" headlined "Six Years in 
the Editorial Gulag" written by a former journalist with "Leninski 
Klich."  The court imposed a fine of 500,000 rubles (USD 235) on the 
independent paper and ordered it to pay 300,000 rubles (USD 140) in 
litigation fees. 
 
MINSK 00000032  002 OF 002 
 
 
 
¶7.  Protestant Community Cleared of Charges 
 
On January 11 a Baranovichi district court dismissed administrative 
charges against the local New Generation Protestant community. 
Authorities had alleged that the community violated their land lease 
contract by using a building constructed on the plot for religious 
purposes without proper permits.  Protestant lawyer Sergey Lukanin 
welcomed the court's verdict saying it was a "positive example" and 
a triumph of justice in one of the multiple cases against 
Protestants. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8.  Inflation Highest Since 2004 
 
The Belarusian Ministry of Statistics announced January 14 that the 
country's inflation rate for 2007 was 12.1 percent, the highest 
since 2004.  Authorities had planned for inflation of six to eight 
percent.  Food prices grew 15.9 percent last year, non-food prices 
rose 5.9 percent, and consumer services prices increased 10.5 
percent.  Speaking to Parliament on January 11, Prime Minister 
Sergey Sidorskiy blamed ministers and local governments for the 
price increases, and demanded that inflation be held to planned 
levels in 2008.  The Ministry also reported that GDP in 2007 
increased 8.1 percent to USD 44.67 billion, industrial output rose 
8.5 percent, and agricultural production grew 4.1 percent. 
 
¶9.  Belarus Short of Domestic Investment Targets 
 
Belarus' Deputy Economics Minister Tatyana Starchenko announced 
January 11 that the country lacks sufficient domestic investment 
resources to meet 2008 targets, which are 25 percent higher than in 
¶2007.  Starchenko said the government would work to attract more 
foreign and private investment, especially in rural areas and small 
towns.  The government has already reduced the tax burden in 2008 by 
0.9 percent.  In addition, authorities have established a working 
group to outline ways to improve the country's investment climate, 
including inviting large transnational corporations to ensure steady 
investment flows. 
 
------------------- 
International Trade 
------------------- 
 
¶10.  Foreign Trade up 24 percent to USD 51.5 billion 
 
Belarus' Customs Agency announced January 11 that foreign trade rose 
24 percent in 2007 to a record high USD 51.5 billion.  Imports and 
exports rose 27 and 21 percent respectively.  Russia was Belarus' 
largest trade partner with 49 percent of total trade, while the EU 
accounted for 32 percent.  Belarus' key exports are oil products, 
potash fertilizers and tractors.  Major imports are gas and oil, 
which account for about a third of all imports. 
 
¶11.  Russian Concern Acquires Insurance Company 
 
Russia's RESO insurance group announced January 14 in Minsk that it 
acquired 100 percent of Belarus' AlVeNa insurance company.  RESO 
officials did not comment on the transaction sum paid for AlVeNa or 
the book value of this company.  RESO is a holding company with 
insurance, medical services, leasing, and development concerns 
across the CIS. 
 
---------------------- 
¶12.  Quote of the Week 
---------------------- 
 
Head of the Belarusian Central Electoral Commission Nikolay Lozovik, 
on the problems caused by election observers: 
 
"Belarus and Russia should think about restricting OSCE [election] 
observers.  They had 12 observers in Poland, 20 in the US, but 700 
in Belarus.  Why were there so many for us?  By those proportions, 
two would have been enough for Belarus, but we could allow a few 
dozen.  When there are more of them than members of the electoral 
commission, observers just get in the way of our work." 
 
Moore