VZCZCXYZ0004
RR RUEHWEB

DE RUEHVL #0401/01 1440845
ZNR UUUUU ZZH (CCY AD96E8AC MSI1703-685)
R 230845Z MAY 08
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC 2337
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS VILNIUS 000401 
 
SIPDIS 
AMEMBASSY MINSK SENDS 
C O R R E C T E D COPY (CORRECT AS SENT) 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - May 23, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Malady Front Activists Fined And Sentenced To Jail Terms 
 (para. 2) 
- Minsk Authorities Ban Three Russian Channels (para. 3) 
- Police Disperse Opposition Rally (para. 4) 
- Heritage Protection Group Evicted From Offices (para. 5) 
- Unauthorized Concerts To Be Administratively Punishable 
 (para. 6) 
- Vitebsk Independent Newspaper Denied Registration (para. 7) 
 
Domestic Economy 
---------------- 
 
- 15.8 Percent of Industries Finish the First Quarter in the Red 
(para. 8) 
- Belarus Reports One Percent Unemployment as of May 1 
 (para. 9) 
- Official Statistics Claim Belarusians' Income on the Rise (para. 
10) 
- Belarus Received USD 2.1 Billion in Foreign Investment in the 
First Quarter (para. 11) 
 
International Trade 
------------------- 
 
- Belarus-Lithuania Trade on the Rise (para. 12) 
 
Quote of the Week (para. 13) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Malady Front Activists Fined and Sentenced To Jail 
 
On May 20, an Ushachy district court fined Polotsk MF members 
Yekaterina Solovyova and Ales Krutkin 1,050,000 rubles (USD 490) 
each for distribution of illegally printed materials.  In a separate 
case, on May 15, Malady Front (MF) leaders Artur Finkevich and 
Zmitser Dashkevich were each sentenced in absentia to 7 days in jail 
for their participation in a May Day demonstration.  They learned of 
the sentences on May 19. 
 
¶3.  Minsk Authorities Ban Three Russian Channels 
 
The private Cosmos TV cable television service provider was ordered 
on May 16 by Minsk city authorities to immediately halt broadcasting 
of three Russian channels after two of them showed a banned 
documentary about President Aleksandr Lukashenko.  The company 
issued a notice to its clients that the channels would be no longer 
available, and the Minsk city administration refused comment on the 
subject. 
 
¶4.  Police Disperses Opposition Rally 
 
Over 50 opposition activists staged a rally in downtown Minsk on May 
16 to express their support for political prisoners Aleksandr 
Kozulin, Andrey Kim, and Sergey Parsyukevich.  The police dispersed 
the demonstrators, and no detentions were reported.  United Civic 
Party leader Anatoly Lebedko, an event organizer, said that showing 
solidarity with the prisoners was not "the party's responsibility" 
but "a civic duty" for activists and pledged to continue with 
demonstrations. 
 
¶5.  Heritage Protection Group Evicted From Offices 
 
On May 16, the Belarusian Society for Historic and Cultural Heritage 
Protection refused to follow what it called "illegal" eviction 
orders.  The state-owned landlord refused to extend their lease 
agreement and required the NGO to vacate the premises by May 15. 
NGO chairman Anton Ostapovich linked the forced eviction to the 
NGO's "consistent and principled" commitment to protecting the 
national historic and cultural heritage.  The landlord claimed that 
despite numerous warnings, the NGO failed to pay rent for the last 
three years. 
 
¶6.  Unauthorized Concerts To Be Administratively Punishable 
President Aleksandr Lukashenko signed a decree on May 13 that 
introduces administrative liability for organizing concerts without 
a licenses issued by the GOB.  The GOB explained that it aims to 
protect the rights of viewers and preventing performances "of poor 
artistic quality," as well as those that threaten moral values, 
public order, and freedoms of individuals.  Civil society activists 
believe that the edict introduces persecution of the opposition for 
staging concerts to mark political events and anniversaries. 
 
¶7.   Vitebsk Independent Newspaper Denied Registration 
 
On May 20, the Supreme Economic Court Presidium denied registration 
to the independent newspaper Vitebsk Kur'yer M once again.  Legal 
advisor Pavel Levinov condemned the verdict saying that it forces 
the editorial board to print the newspaper in Smolensk (across the 
border in Russia). This will make its timely distribution 
problematic due to a history of frequent seizures by police. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8.  15.8 Percent Of Industries Finish First Quarter in the Red 
 
According to Belapan news service, Belarus' Statistics Ministry 
reported May 19 that 15.8 percent (the total of 340) of the 
country's industrial enterprises experienced losses in the first 
quarter of 2008.  Biggest losses were sustained by machine building, 
metal-cutting, light and food production businesses.  Interestingly, 
only one enterprise of Belneftekhim conglomerate ended up in the 
red.  In turn, highest profits were made by oil extraction, chemical 
and medical businesses. 
 
¶9.  Belarus Reports One Percent Unemployment as of May 1 
 
Belarus Statistics Ministry reported that the country's unemployment 
as of May 1 was one percent of the economically-active population, 
which is 0.1 percentage point lower than a year ago.  The Brest and 
Vitebsk regions had the largest unemployment rate of 1.4 percent, 
while Minsk had the lowest rate of 0.5 percent.  Women accounted for 
64 percent and people under 30 comprised 40 percent of the total 
number of unemployed.  (Comment: the official figure of 47,100 
registered unemployed Belarusians is considered to be artificially 
low, as it does not include hidden unemployment.  End comment.) 
 
¶10.  Official Statistics Claim Belarusians' Income On The Rise 
 
According to data posted by Belarus' Statistics Ministry, 
Belarusians' incomes in the first quarter of 2008 rose by 10.7 
percent as compared with 2007.  The average per capita income this 
year was the equivalent of USD 259 per month versus USD 207 a year 
ago.  The highest growth was registered in Minsk (15.9 percent) 
while the lowest was in Brest region (6.3 percent). 
 
¶11.  Belarus Received USD 2.1 Billion Foreign Investment in the 
First Quarter 
 
According to the Statistics Ministry report, the productive sector 
of the country's economy received USD 2.1 billion worth of foreign 
investments in January through March, 1.7 billion more than a year 
ago.  The biggest investments came from the UK (33.4 percent), 
Russia (25 percent), Switzerland (13.2 percent) and Austria (11.8 
percent).  Minsk received 54.5 percent of the investment, while the 
Vitebsk region secured the least (12.3 percent).  Foreign direct 
investment accounted for 29 percent of all foreign investments and 
most of it came in the form of loans (54.7 percent).  Belarus also 
received USD 872.2 million of portfolio investment, nearly three 
times more than last year.  Its share, however, was only 0.04 
percent of the total foreign investment this year. 
 
------------------- 
International Trade 
------------------- 
 
¶12.  Belarus-Lithuania Trade on the Rise 
 
On May 21, Belarusian Vice Premier Andrei Kobyakov told the 
Belarus-Lithuania economic forum that trade between the two 
countries amounted to USD 1 billion in 2007 and is likely to 
increase to USD 1.5 billion in 2008.  Major areas of cooperation 
include transportation services, construction, road-side services, 
restaurant and hotel business, woodworking, tourism and ecology. 
Trade with Lithuania is critically important for Belarus, as Belarus 
shipped 6.5 million tons of cargo through Klaipeda sea port in 2007 
with most of the cargo belonging to Belneftekhim businesses. 
 
---------------------- 
Quote of the Week 
---------------------- 
 
¶13. Commenting on the country's migration policies, MP Sergei 
Kostyan suggested that marriage to Belarusian citizens and residence 
in Belarus should only be allowed to those foreigners who speak 
Belarusian and know Belarus' history. 
 
"If we give foreigners free entry, then in ten years, Belarus will 
turn from a Slavic and Orthodox country into a Muslim state. This 
means pogroms and illegitimate demands from them." 
 
CLOUD