VZCZCXYZ0021
RR RUEHWEB

DE RUEHVL #0469/01 1651448
ZNR UUUUU ZZH (CCY ADXA3E7DA ICMSI7452-623)
R 131448Z JUN 08
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC 2416
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS VILNIUS 000469 
 
C O R R E C T E D  C O P Y    (GARBLED TEXT) 
 
AMEMBASSY MINSK SENDS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - June 13, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Union Of Poles' Leader Fined (para. 2) 
- Opposition Concerned by Low Nuclear Energy Awareness (para. 3) 
- Nesvizh Malady Front Leader Fined (para. 4) 
- Five Malady Front Activists Fined in Polotsk for Picketing 
City Government Office (para. 5) 
 
Domestic Economy 
---------------- 
 
- Gas and Diesel Prices Up 5 And 14.8 Percent Respectively 
 (para. 6) 
- Belarus' GDP Through May Up 10.4 Percent On The Year (para. 7) 
- Heineken N.V. Secured 24 Percent Of Belarus' Beer Production 
 (para. 8) 
 
International Trade 
------------------- 
 
- Impediments to Russia-Belarus Trade Development 
 (para. 9) 
 
Quote of the Week (para. 10) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2. Union of Poles' Leader Fined 
 
On June 9, a Grodno district court fined the leader of the Union of 
Poles, Anzhelica Borys, 1.4 mln rubles (USD 660).  Borys was charged 
with organizing an unsanctioned concert of the Polish band Lombard 
in Grodno.  Borys expressed "surprise" at this charge and linked her 
fine with the GOB's repressive steps against civil society 
activists. 
 
¶3. Opposition Concerned by Low Nuclear Energy Awareness 
 
Belarusian Popular Front (BPF) Deputy Chairman Ales Mikhalevich 
received on June 10 a response from the Ministry of Energy to an 
inquiry by the BPF sent February 12.  The BPF expressed concern over 
the lack of public access to objective information about 
construction plans for a nuclear power plant.  The Ministry 
maintained that "the public is properly informed" and "all 
viewpoints and suggestions will be considered" before construction 
commences. 
 
¶4. Nesvizh Malady Front Leader Fined 
 
Nesvizh authorities fined local Malady Front (MF) leader Nasta 
Azarka 1,750,000 rubles (USD 820) on June 11 for allegedly violating 
city maintenance regulations.  Police officers detained Azarka on 
several occasions and confiscated opposition stickers from her. 
 
¶5. Five Malady Front Activists Fined In Polotsk for Picketing City 
Government Office 
According to the MF's press service, five MF activists picketed on 
June 11 in front of the city government office in Polotsk.  They 
were detained shortly after they unfurled a banner reading "Stop 
Dictatorship."  The activists spent a night in detention and were 
each fined the equivalent of USD 480 under the Administrative Code 
on unsanctioned picketing. 
---------------- 
Domestic Economy 
---------------- 
 
¶6. Gas and Diesel Prices Up 5 And 14.8 Percent, Respectively 
 
An Economy Ministry official told Prime-Tass news service on June 9 
that the Petrochemical Conglomerate Belneftekhim raised gas and 
diesel fuel prices by 5 and 14.8 percent, respectively, effective 
June 10.  One liter of regular gas will cost USD 1.05 and a liter of 
diesel fuel will cost USD 0.90. In 2007, retail gas prices rose 19.4 
percent. 
 
¶7. GDP Through May Up 10.4 Percent On The Year 
 
The Statistics Ministry reported June 11 that the country's GDP from 
January through May 2008 was 10.4 percent higher than during the 
same period of 2007.  The rise in industrial and agricultural 
production was 13.3 percent and 6.3 percent, respectively. 
 
 
According to Prime-Tass, the Dutch brewery Heineken N.V. purchased a 
51 percent stock in Rechitsapivo on June 9, raising its share in 
Belarus' brewing industry to 24 percent.  The state share in the 
Gomel region-based brewery was reduced from 14.7 to 7.2 percent.  In 
December 2007, Heineken N.V. bought another Belarusian brewery in 
the city of Bobruisk, which had been established through a 
partnership between American Detroit Investment Ltd. and 
International Financial Corporation. Heineken N.V. will reportedly 
maintain all Belarusian brands and start production of Heineken beer 
at the brewery later this year. 
 
------------------- 
International Trade 
------------------- 
 
¶9. Impediments to Russia-Belarus Trade Development 
 
According to Prime-Tass, Russian Ambassador Alexander Surikov stated 
June 9 that approximately 40 points of difference impede successful 
implementation of the Russia-Belarus trade development agreement 
signed on March 23, 2007.  According to him, the GOB has thus far 
applied at least 22 restrictive measures, such as providing 
subsidies to many local producers; limiting access of foreign 
agricultural machinery to Belarusian markets; and preserving the GOB 
monopoly on imports of tobacco and alcohol products. In May, the GOB 
agreed to allow equal treatment of foreign-made goods possessing 
"conformity assessment" certificates.  Surikov hinted that the GOB 
should be more cooperative or else growing energy costs may keep 
Belarusian products out of Russian markets. 
 
---------------------- 
Quote of the Week 
---------------------- 
¶10.  While presenting national awards to KGB officers on June 12, 
President Lukashenko said: 
"I've heard rumors that the President is allegedly not pleased with 
KGB operations.  These are just rumors.  I have always respected 
this organization and believed that it employs the purest and the 
most honest people." 
 
Savage 
Cloud