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RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVL #0502/01 1791118
ZNR UUUUU ZZH
R 271118Z JUN 08
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC 2466
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 VILNIUS 000502 
 
AMEMBASSY MINSK SENDS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - June 27, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Christian Democratic Activist Expelled (para. 2) 
- Christian Democracy Party Denied Registration (para. 3) 
- National Bolshevist Party Activist Fined (para. 4) 
- BKGB Questions Opposition Youth (para. 5) 
 
Domestic Economy 
---------------- 
 
- Retail Sales Rise in Jan-May 2008 (para. 6) 
- AlfaBank Ukraine Acquires Stake in ITI-Bank(para. 7) 
- Foreign Debt Up Eight Percent in Jan-March 2008 (para. 8) 
 
International Trade 
------------------- 
 
- Russian Crude Oil Prices Rise in June (para. 9) 
 
Quote of the Week (para. 10) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2. Christian Democratic Activist Expelled 
 
The Pedagogical University expelled first-year Belarusian philology 
and culture student Anna Antonova on June 24.  Antonova, an activist 
with the Belarusian Christian Democratic party, allegedly violated 
university regulations by applying to Minsk city authorities to 
demonstrate in support of political prisoner Aleksandr Kozulin.  The 
university dean claimed that as long as Antonova is a student at a 
state-run school, she must follow "our governmental and our 
president's policies" and not listen to what "they say at a church." 
 
 
¶3. Belarusian Christian Democracy Denied Registration 
 
On June 20, the Justice Ministry (MOJ) denied state registration to 
the Belarusian Christian Democratic party for the second time.  The 
party's Co-chairman, Pavel Severinets, stated that the MOJ's denial 
notice made reference to improper citation of the party's goals and 
tactics in the party statute.  He noted that the party would appeal 
the decision to the Supreme Court. 
¶4. National Bolshevist Party Activist Fined 
On June 24, a Vitebsk district court fined activist Aleksey 
Mitrofanov, from the unregistered National Bolshevist party, 70,000 
rubles (USD 30) for petty hooliganism.  Coordinator Khristofor 
Zhelyapov of the Vitebsk-based For Freedom (FF) movement filed an 
administrative case against Mitrofanov for throwing eggs at FF 
leader Aleksandr Milinkevich during a public meeting at a market in 
Vitebsk.  Mitrofanov called himself "a victim," and Zhelyapov said 
that the fine was mild for this "politically motivated" offense. 
¶5. BKGB Questions Opposition Youth 
 
An unnamed BKGB officer questioned opposition youth activist Ales 
Golovach on June 25.  The officer summoned Golovach, a fifth-year 
student at the University of Culture, into the dean's office and 
inquired about his membership in opposition groups, participation in 
unsanctioned demonstrations, and other political activities.  When 
Golovach refused to answer, the officer threatened him with 
expulsion. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶6. Retail Sales Rise in Jan-May 2008 
 
The Ministry of Statistics reported on June 23 that Belarus' retail 
turnover, including the public catering sector, between January-May 
2008 has risen 19.6 percent on the year and reached 18.6 trillion 
rubles (USD 8.8 mln).  Entrepreneurs accounted for 32 percent of 
total trade and larger retail companies for 68 percent. 
Belarusian-made manufactured consumer goods' and foodstuff share in 
retail turnover reached 75.3 percent and 84.7 percent, respectively, 
excluding market trade.  The number of private companies engaged in 
retail trade grew by 0.3 percent to 81.9 percent, and the share of 
foreign companies fell by 0.1 percent to 3.2 percent. 
 
¶7. AlfaBank Ukraine Acquires Large Stake in ITI-Bank 
 
On June 20, the National Bank of Belarus sold its 38.94 percent 
 
VILNIUS 00000502  002 OF 002 
 
 
stake in the ITI-Bank (Mezhtorgbank) to a Cyprus-based subsidiary of 
Alfabank Ukraine for USD 12.266 mln.  Other major shareholders are 
likely to offer their stakes for sale by July 1, and the Alfabank 
Group is expected to spend USD 31.5 mln to purchase a controlling 
share. 
 
¶8. Foreign Debt U p Eight Percent in Jan-March 2008 
 
The National Bank released a report June 20 citing an eight percent 
increase of Belarus' total foreign debt to USD 13,630 mln between 
January and March 2008.  The Bank reports a drop in the central 
government's debt by 0.2 percent to USD 2,033 mln, and the banking 
sector arrears rose by 24.7 percent to USD 3,205 mln.  The 
manufacturing sector's debt liabilities increased by 6.6 percent to 
USD 7,379 mln. 
 
------------------- 
International Trade 
------------------- 
 
¶9. Russian Crude Oil Prices Rise in June 
 
A Presidential Administration source said June 20 that Russian crude 
oil prices for Belarus rose by USD 95 per ton in June 2008 to USD 
625 as compared with USD 530 in May.  According to the source, oil 
processing "remains lucrative" as prices for oil products are rising 
worldwide.  Belarus' refineries reported a 10.2 percent rate of 
return, which permits them to loan funds for purchasing crude oil 
and upgrade their facilities. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶10.  Central Election Commission Chairperson Lidiya Yermoshina, 
speaking at a press conference on June 25: 
 
"I've missed elections.  Elections stir the blood; life becomes more 
complex but yet more interesting." 
 
 
Savage 
Cloud