VZCZCXRO7431
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0223/01 0881404
ZNR UUUUU ZZH
R 281404Z MAR 08
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 7068
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHUL/AMEMBASSY SEOUL 0040
RUEHCV/AMEMBASSY CARACAS 0054
RUEHVEN/USMISSION USOSCE 1886
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 MINSK 000223 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG PARM VE BO
SUBJECT: EMBASSY MINSK WEEKLY POL/ECON REPORT - March 28, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Protestant Pastor Charged (para. 2) 
- Gomel Opposition Youth Sentenced to Jail (para. 3) 
- Residents Protest Chemical Plant Construction (para. 4) 
 
International Relations 
----------------------- 
 
- GOB to Send Military Specialists to Venezuela (para. 5) 
 
Domestic Economy 
---------------- 
 
- Budget Surplus 10.2 Percent of GDP (para. 6) 
- Overall Tax Burden Rises (para. 7) 
- Number of Loss-Making Businesses Declines (para. 8) 
 
International Trade 
------------------- 
 
- Korean Business Delegation Arrives (para. 9) 
 
Quote of the Week (para. 10) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Protestant Pastor Charged 
 
The Minsk city prosecutor's office issued administrative charges to 
New Life Church (NLC) Pastor Vyacheslav Goncharenko March 24 for 
organizing a signature campaign to petition amendments to the 2002 
religion law.  Prosecutor Yuriy Karpitskiy informed Goncharenko that 
the campaign violated regulations concerning individuals' ability to 
initiate changes and amendments to enacted legislation.  On March 
21, similar charges were brought against NLC lawyer Sergey Lukanin. 
In addition, Goncharenko is facing a fine of up to BYR 700,000 (USD 
325) for denying utility inspectors access to the NLC building. 
 
¶3.  Gomel Opposition Youth Sentenced to Jail 
 
A Gomel district court sentenced opposition youth activist Andrey 
Tenyuta to 10 days in jail March 21 for violating the public order. 
Police detained Tenyuta the previous day when a stranger attempted 
to attack him.  The activist maintained the assailant was "most 
likely a freelance BKGB agent" ordered to provoke him in order 
isolate him ahead of the March 25 Belarusian People's Republic 90th 
Anniversary demonstration. 
 
¶4.  Residents Protest Chemical Plant Construction 
 
Residents of the southeastern town of Druzhniy rallied March 22 to 
protest the scheduled construction of a chemical manufacturing and 
fertilizer recycling plant near the town.  Civil society activist 
Nikolay Pokhabov noted that over 500 people came out to demonstrate 
and "say no to poisonous chemicals."  Police officers observed the 
rally but did not intervene.  The demonstrators announced plans to 
initiate a local referendum and erected a cross at the construction 
site.  They earlier submitted a petition to Aleksandr Lukashenko 
signed by 1,000 residents calling for a halt to construction and 
expressing concerns about potential health risks. 
 
¶5.  GOB to Send Military Specialists to Venezuela 
 
Deputy Chief of the Belarusian Armed Forces General Staff Pyotr 
Tikhonovskiy announced at a March 25 press conference that 
Belarusian military advisors and experts will visit Venezuela to 
assist Caracas in improving its air defense and electronic warfare 
system.  The visit is part of a bilateral agreement Aleksandr 
Lukashenko signed during his official visit to Venezuela in December 
¶2007.  Tikhonovskiy noted about a dozen military specialists will 
visit in 2008, with larger groups to follow. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶6.  Budget Surplus 10.2 Percent of GDP 
 
MINSK 00000223  002 OF 002 
 
 
 
A Finance Ministry official announced March 24 that the country's 
central budget showed a surplus of USD 766.4 million in January and 
February.  Central budget revenues increased 18 percent while 
expenditures increased 13 percent. 
 
¶7.  Overall Tax Burden Rises 
 
Belarus' Tax Ministry announced March 25 that the overall tax burden 
on the country's economy in 2007 increased 1.6 percent to 47.3 
percent of GDP.  Indirect taxes decreased by 1.3 percent to 16.5 
percent of GDP, while the share of direct taxes edged up one tenth 
of one percent to 9.3 percent.  Other taxes amounted to 9.8 percent 
of GDP and transfers to the Social Security Fund remained steady at 
11.7 percent of GDP. 
 
¶8.  Number of Loss-Making Businesses Declines 
 
Belarus' Statistics Ministry announced March 25 that the proportion 
of loss-making businesses decreased to 16.6 percent as of February 
1, down from 21.9 percent a year ago.  For industrial businesses, 
20.9 percent operated at a loss, down from 28 percent in 2007.  For 
the agricultural sector, according to GOB reports, only 8 percent 
operated at a loss, down from 14.6.  The average return on sales in 
January was 13.8 percent, up from 11.7 percent a year ago. 
 
------------------- 
International Trade 
------------------- 
 
¶9.  Korean Business Delegation Arrives 
 
Prime Minister Sergey Sidorskiy received a delegation of South 
Korean businesspeople March 24 to discuss cooperation with Korean 
car manufacturers.  According to Sidorskiy, Belarus hopes to 
establish joint enterprises for manufacturing trucks, truck 
components and other products in Belarus.  Sidorskiy also announced 
plans to meet with the CEO of Korea's LG Group to discuss a new 
liquid crystal display assembly project in Belarus.   Also during 
the visit, Belarusbank, Belarus' largest financial institution, 
signed a memorandum of cooperation with GoodMorning Shinhan 
Securities, one of Korea's largest securities companies.  The Prime 
Minister visited Korea in late 2007, to discuss investment 
opportunities offered by Belarus in the energy and banking sectors. 
 
 
---------------------- 
¶10.  Quote of the Week 
---------------------- 
 
Valentin Sukalo, Chariman of the Supreme Court, apparently ignoring 
his own suggestions: 
 
"Our system of punishment should not only be based on law, but 
should be supported by the people.  Considering that 88 percent of 
crimes are non-violent, imprisonment should be applied sparingly." 
 
Moore