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R 201157Z JUN 08
FM AMEMBASSY VILNIUS
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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 VILNIUS 000486 
 
AMEMBASSY MINSK SENDS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - June 20, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Slonim Civil Society Activist Fined (para. 2) 
- Opposition Leader Warned Over Inquiry (para. 3) 
- Police Raid Opposition Activist's Residence (para. 4) 
- Autocephalous Priest Fined For Unveiling Cross (para. 5) 
- Independent Newspaper Warned Over Incorrect Address (para. 6) 
- Belarusian Popular Front Expels Deputy Chair (para. 7) 
 
Domestic Economy 
---------------- 
 
- Reserves Rise by IMF and Domestic Standards (para. 8) 
- Average Monthly Salary USD 393 In April 2008 (para. 9) 
- Highest Subsidies Channeled to Agricultural Sector (para. 10) 
 
International Trade 
------------------- 
 
- Russia Remains Belarus' Largest Trade Partner (para. 11) 
 
Quote of the Week (para. 12) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2. Slonim Civil Society Activist Fined 
 
On June 17, a Slonim regional court fined civil society activist 
Ales Masyuk 700,000 rubles (USD 330).  Masyuk was charged with 
organizing an unsanctioned public meeting in Slonim for opposition 
leader Aleksandr Milinkevich on April 18.  Charges reportedly 
stemmed from an anonymous letter questioning the authorization of 
the meeting. 
 
¶3. Opposition Leader Warned Over Inquiry 
 
The Prosecutor General's Office warned United Civic Party Leader 
Anatoly Lebedko on June 17 for making "false accusations" against 
the GOB and informed him of possible criminal liability.  The 
warning was based on a letter Lebedko sent to prosecutors calling 
for an investigation of whether the GOB was involved in arms sales 
to Colombian rebels, as alleged in recent media reports. 
 
¶4. Police Raid Opposition Activist's Residence 
 
Police officers searched the residence of opposition activist 
Tatyana Vanina in Dzerzhinsk on June 16.  Vanina said the officers 
presented a search warrant dated May 19, which claimed the activist 
illegally produced printed materials.  Police confiscated some 
outdated analytical bulletins and copies of the USG's 2000 Human 
Rights Report. 
 
¶5. Autocephalous Priest Fined For Unveiling Cross 
 
On June 17, a Starye Dorogi town court fined a priest of the 
unregistered Autocephalous Church, Leonid Akalovich, 1,050,000 
rubles (USD 495).  Akalovich consecrated a wooden cross during an 
April 19 ceremony to commemorate village residents assassinated by 
Soviet partisans during World War II.  The priest dismissed all 
charges as "illegal" saying he was "only fulfilling his Christian 
mission." 
 
¶6. Independent Newspaper Warned Over Incorrect Address 
 
The Information Ministry issued a warning on June 18 to the 
Vitebsk-based independent newspaper Vitebskiy Kuryer M.  Allegedly, 
the newspaper violated the law on media by misstating the paper's 
address and failing to report a change of address to the Ministry. 
Representatives from the paper plan to appeal the warning and 
resubmit to the Ministry the newspaper's founding documents 
including the relevant address changes. 
 
¶7. Belarusian Popular Front Expels Deputy Chair 
 
The Council of the Belarusian Popular Front (BPF) voted to expel 
Deputy Chairman Ales Mikhalevich at a meeting on June 14.  BPF Chair 
Lyevon Borshchevskiy stated that Mikhalevich did not follow the 
BPF's policies and insulted party leaders in an interview. 
Mikhalevich made no comments about his expulsion. 
 
 
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VILNIUS 00000486  002 OF 002 
 
 
Domestic Economy 
---------------- 
 
¶8. Reserves Rise by IMF and Domestic Standards 
 
National Bank officials told Prime-Tass news service on June 16 that 
the country's gold, gem and hard currency reserves had risen 
according to both International Monetary Fund and domestic 
assessments.  As of June 1, reserves rose by 6.7 percent to USD 4.5 
billion by IMF standards and 7.2 percent to USD 5.4 billion by 
domestic standards.  The National Bank said it plans to secure USD 
10 billion in reserves by January 1, 2011 but did not indicate which 
standard it will use for the assessments. 
 
¶9. Average Monthly Salary USD 393 in April 2008 
 
According to the Statistics Ministry, the average Belarusian monthly 
salary in April 2008 was 836,000 Belarusian rubles (USD 393), an 
increase of 3.6 percent on the month.  Earlier this month, 
Lukashenko instructed the GOB to increase the average salary to USD 
1000 by the end of 2010. 
 
¶10. Highest Subsidies Channeled to Agricultural Sector 
 
According to the Presidential Press Service, on June 13, President 
Lukashenko signed edict 333, which strongly recommends Belarus' six 
largest banks issue the equivalent of USD 1.1 billion in loans to 
the country's food processing companies.  Government-guaranteed 
loans for one year will be used to pay farms for crops harvested in 
¶2008.  All banks, including the majority privately-owned banks on 
the list, are obliged to comply, effectively subsidizing the 
economy's most inefficient sector - agriculture. 
 
------------------- 
International Trade 
------------------- 
 
¶11. Russia Remains Belarus' Largest Trade Partner 
 
The Statistics Ministry reported on June 16 that from January to 
April 2008, Belarus' largest trading partner was Russia, which 
comprised 49.2 percent of all external trade.  Belarusian exports to 
Russia totaled 32.8 percent of total exports, while imports from 
Russia were 63.9 percent of all imports.  Belarus' other top trade 
partners include the Netherlands (9.6 percent), Ukraine (7.1 
percent), Germany (4.7 percent), Poland (3.5 percent), UK (2.9 
percent), Latvia (2.6 percent), China (2 percent), Brazil and 
Lithuania (1.4 percent each).  Exports to the U.S. decreased by 45.1 
percent to USD 84.5 million, while imports dropped by 13.2 percent 
to USD 111.2 million. 
 
---------------------- 
Quote of the Week 
---------------------- 
¶12.  Speaking June 19 to university students at a ground-breaking 
ceremony for a Student Village in Minsk that will accommodate 
thousands of students, referring to the cancellation of benefits for 
students last December, Lukashenko said: 
 
"Do you remember when we talked about streamlining benefits for 
students, you asked me where the money would go?  The money will not 
go anywhere.  For example, here we will spend 700 billion rubles 
(USD 328 billion). 
 
Savage 
Cloud