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DE RUEHVL #0603/01 2100353
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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 03 VILNIUS 000603 
 
SIPDIS 
AMEMBASSY MINSK SENDS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - July 25, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Opposition Denied Appeal (para. 2) 
- United Civic Party Members Detained and Warned (para. 3) 
- Prisoners' Rights Advocates Detained, Searched (para. 4) 
- Christian Democrat Dismissed from Job (para. 5) 
- Democratic Activists Released, Interrogations Continue (para. 6) 
- Malady Front Office Raided (para. 7) 
- Opposition Initiative Electoral Groups Registered (para. 8) 
 
Domestic Economy 
---------------- 
 
- Gasoline and Diesel Prices up 5.2 Percent (para. 9) 
- National Bank Claims Belarus' Banking System is Sound and 
Developing Fast (para. 10) 
- Average Salary in June: USD 421 (para. 11) 
- Belarusneft is Granted Tax Benefits on Proceeds in Venezuela 
(para. 12) 
- Belarus' 2009 Budget to be Focused on Health, Education and Social 
Infrastructure (para. 13) 
 
International Trade 
------------------- 
- Chavez Wants to Double Trade with Belarus (para. 14) 
 
Quote of the Week (para. 15) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Opposition Denied Appeal 
 
On July 22, in proceedings attended by Charge, the Minsk City Court 
dismissed an appeal challenging April 22 convictions of democratic 
youth activists charged with participation in entrepreneurs' 
demonstrations on January 10 and 21.  Thirteen youth activists 
received parole sentences and were heavily fined, and Andrey Kim, 
now a recognized political prisoner, was sentenced to 18 months in a 
low-security jail for allegedly injuring a police officer.  Kim's 
mother denounced the verdict saying she did not expect "mercy" but 
wanted "justice" in Belarusian courts. 
 
¶3.  United Civic Party Members Detained and Warned 
 
On July 18, border security officers apprehended and warned Anatol 
Lebedko, United Civic Party (UCP) leader, and Nikolay Sergeyenko, 
UCP youth wing leader, for alleged violation of border zone 
regulation procedures.  The police detained the two for three hours 
in Oshmyany, 10 miles from the Lithuanian border, where the UCP 
members met with parliamentary hopefuls to discuss election campaign 
and deliver printed materials. 
 
¶4.  Prisoners' Rights Advocates Detained, Searched 
 
Customs officers detained for several hours Timofey Dranchuk and 
Dmitry Kasperovich, leaders of the NGO "Above the Barrier" which 
advocates prisoners' rights, at the Lithuanian border July 21.  The 
officials thoroughly searched Kasperovich's vehicle and released the 
two without charges.  Dranchuk linked the detention with their calls 
"for boycotting upcoming elections not to legitimize the parliament" 
and said he would appeal to the State Customs Committee. 
 
¶5.  Christian Democrat Dismissed from Job 
 
Gomel-based Belarusian Christian Democracy party coordinator 
Konstantin Zhukovskiy was forced to resign from his job on July 22. 
According to Zhukovskiy, the BKGB strongly "recommended" his 
supervisor to dismiss him for his political activities unless he 
refuses from running for parliament.  Zhukovskiy maintained he had 
committed to participate in the upcoming elections and forcefully 
quit his job. 
 
¶6.  Democratic Activists Released, Interrogations Continue 
 
On July 20, Belarusian Popular Front (BPF) members Anton Koypish and 
Iliya Bogdan were the last two opposition activists to be released 
from prison after 10 days' detention while being investigated for 
involvement in the July 4 bombing incident.  The police freed six 
other activists on July 18.  Meanwhile, the BKGB detained and 
questioned about the bombing the MF member Dmitry Kukhley in 
Shchuchin on July 22 and summoned Baranovichi-based Social-Democrat 
Vyacheslav Bolbat, BPF member Viktor Mezyak, opposition Communist 
Viktor Tyapin, and human rights lawyer Sergey Govsha on July 23. 
 
VILNIUS 00000603  002 OF 003 
 
 
Also, the law-enforcers interrogated and searched the residences of 
United Civic Party member Aleksandr Stepanenko in Minsk and 
independent publisher Zhanna Popova in Vitebsk on July 23.  Popova's 
computer equipment was confiscated.  None of the opposition 
activists has been officially charged over the bombing. 
 
¶7.  Malady Front Office Raided 
 
The BKGB officers raided the Minsk office of the democratic youth 
organization Malady Front (MF) on July 21.  MF deputy chair 
Anastasiya Polozhanko maintained the search took place right after a 
meeting to discuss their campaign to boycott the September 
parliamentary elections.  The officers confiscated computers, 
printed materials, banners, flags.  Polozhanko noted that the MF 
would continue to call for a boycott and street protests despite 
hindrances from the GOB. 
 
¶8.  Opposition Initiative Electoral Groups Registered 
 
On July 23, the United Democratic Forces (UDF) announced that the 
Central Election Commission (CEC) has registered 36 out of 94 
initiative groups to collect signatures in support of opposition 
parliamentary hopefuls.  CEC Chairwoman Lidiya Yermoshina stated on 
the same day that nearly 200 groups obtained registration before the 
July 24 deadline and have begun collecting signatures to be 
submitted to the CEC no later than August 18.  The UDF issued a 
statement to condemn the regime impeding a number of regional 
opposition activists to proceed with their election campaigns by 
seizing printed materials, banning regular access to precinct 
electoral commissions, and detaining and questioning the activists. 
 
 
---------------- 
Domestic Economy 
---------------- 
 
¶9.  Gasoline and Diesel Prices up 5.2 Percent 
 
According to various Belarusian news agencies, Belarus' 
petrochemical conglomerate Belneftekhim raised gasoline and diesel 
fuel prices starting on July 23 by 5.2 percent on average. 
Belneftekhim representatives say the prices have been raised for the 
third time this year to offset ever increasing world oil prices and 
help avoid illegal exports of fuel to neighboring countries, as 
prices there are significantly higher. 
 
¶10.  National Bank Claims Belarus' Banking System is Sound and 
Developing Fast 
 
According to Presidential press service, Belarus' National Bank 
chairman Pyotr Prokopovich assured President Lukashenko on July 21 
that the country's banking system successfully met all targets it 
had for the first six  month of 2008.  Speaking on the next day at a 
press conference in Minsk the National Bank's senior official Sergei 
Dubkov gave a few examples.  The assets of Belarusian banks grew 24 
percent through June and reached the equivalent of USD 25 billion. 
Their average profit in the period grew on the year by 60 percent. 
 
¶11.  Average Salary in June: USD 421 
 
Belarus' Statistics Ministry reported on July 23 that the country's 
average salary in June was the equivalent of USD 421.  The number 
for May was USD 400.  The average worker's wage was USD 430 and USD 
408 in June and May respectively. 
 
¶12.  Belarusneft is Granted Tax Benefits on Proceeds in Venezuela 
 
On July 21, President Lukashenko signed an edict to provide tax and 
other benefits to the state-owned oil-extracting company Belarusneft 
on proceeds it receives in Venezuela.  Until a double-taxation 
agreement between two countries comes into effect, the company will 
pay a reduced profit tax in Belarus.  It is also allowed to 
disregard time limits on remitting profits from Venezuela to 
Belarus.  Finally, Belarusneft will pay a reduced agricultural tax 
on its proceeds in Venezuela. 
 
¶13.  Belarus' 2009 Budget to be Focused on Health, Education and 
Social Infrastructure 
 
According to AFN news agency, President Lukashenko and 
Prime-Minister Sidorsky discussed Belarus' 2009 budget on July 17. 
Lukashenko wants significantly more budget funds to be spent on 
health, agriculture and social infrastructure next year.  The 
average salary for people working in these industries will be USD 
560 by the end of 2009.  The draft also provides for lower tax 
burden and 110-112 percent GDP growth. 
 
------------------- 
International Trade 
------------------- 
 
¶14.  Chavez Wants to Double Trade with Belarus 
 
VILNIUS 00000603  003 OF 003 
 
 
 
According to the Itar-Tass news agency, Venezuelan President Chavez 
said during his July 23 working visit to Belarus that he wants 
Venezuela to double trade with Belarus in the near future.  He gave 
examples of successful cooperation: joint oil extraction, assembly 
of tractors and trucks, and gasification of some towns in Venezuela 
but said nothing about defense cooperation.  Chavez also signed a 
MOU providing extra oil fields to the Belarusian-Venezuelan oil 
extracting joint venture to double its production next year. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶15.  Speaking at the ceremony of awarding the Order of the 
Friendship of Peoples to Hugo Chavez on July 23, President 
Lukashenko said: 
 
"No president in history has ever done for our country as much as 
this man has done" and "not a single human deserves this order more 
than you do, Hugo". 
 
Responding to Lukashenko, Chavez said: 
 
"Belarus and Venezuela fight together against the same enemy.  That 
is the imperialism of the U.S. and countries, which serve the U.S. 
It is a long fight but we are overcoming and will win the fight." 
 
MOORE 
CLOUD