VZCZCXRO6741
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVL #0696/01 2351546
ZNR UUUUU ZZH
R 221546Z AUG 08
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC 2686
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 03 VILNIUS 000696 
 
AMEMBASSY MINSK SENDS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - August 22, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Fewer Parliamentary Hopefuls Apply For Registration (para. 2) 
- Opposition Hopefuls Banned From Registration (para. 3) 
- Solidarity Demonstration Participants Detained (para. 4) 
- Parliamentary Hopeful Fined (para. 5) 
- Democratic Seniors Hold Founding Convention (para. 6) 
- Regime Frees Three Political Prisoners (para. 7) 
- Popular Weekly Editor Questioned Over July 4 Bombing (para. 8) 
 
Domestic Economy 
---------------- 
 
- Core Inflation Accelerates To 6.1 Percent in Jan-July (para. 9) 
- Belarus Reports Low Unemployment Rate (para. 10) 
- Individual Incomes Up 11.4 Percent in Jan-June (para.11) 
 
Energy 
------ 
 
- U.S.-Japanese Company Unable To Participate in a Nuclear Project 
(para. 12) 
 
Foreign Trade 
------------- 
 
- Russia Remains Belarus' Main Trading Partner (para. 13) 
 
Quote of the Week (para. 14) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2. Fewer Parliamentary Hopefuls Apply For Registration 
 
Central Election Commission (CEC) Secretary Nikolay Lozovik 
announced August 20 that the number of parliamentary hopefuls who 
have submitted registration applications to the CEC dropped to half 
of their 2004 level.  The CEC received only 365 applications, and 
six constituencies will have uncontested elections.  Lozovik also 
noted the "low level of activity" of political parties due to 
"internal conflicts and leadership problems."  He added that only 39 
persons have been nominated by opposition political parties to run 
in the elections. 
 
¶3. Opposition Hopefuls Banned From Registration 
 
On August 18, the police detained for three hours Grodno-based 
United Civic Party (UCP) leader Yuri Istomin for allegedly 
"campaigning early" in the town of Novogrudok.  Authorities seized 
260 copies of leaflets containing information about UCP activities. 
Istomin called the detention "illegal," as police deliberately 
prevented him from applying for registration at the Grodno electoral 
precinct before the deadline at COB August 18.  Belarusian Christian 
Democracy party member and parliamentary candidate Aleksey 
Aleksandrovich also missed the deadline because he was summoned to 
the police department in Lepel on August 18 and released late that 
evening without charge. 
 
¶4. Solidarity Demonstration Participants Detained 
 
Police apprehended five European Belarus civil campaign activists in 
central Minsk on August 16.  The activists were rallying in protest 
of detention of political prisoners on the Day of Solidarity, 
observed monthly by the opposition.  All five were released three 
hours later without charge. 
 
¶5. Parliamentary Hopeful Fined 
 
On August 15, a Vetka district court fined Belarusian Christian 
Democracy party member and parliamentary candidate Konstantin 
Zhukovskiy BYR one million (USD 475).  Zhukovskiy was charged with 
purported violations in the transiting procedures for the restricted 
Chernobyl zone following his detention July 30 as he collected 
voters' signatures endorsing his candidacy.  He called the fine 
"groundless" and maintained he would appeal to a higher court. 
 
¶6. Democratic Seniors Hold Founding Convention 
 
On August 17, a group of pro-democratic retired seniors held a 
founding conference to establish the "Nashe Pokoleniye" association, 
which will work on protection of retirees' rights and raise their 
awareness about the political ad social situation in Belarus.  This 
 
VILNIUS 00000696  002 OF 003 
 
 
was the group's second attempt to file for registration with the 
Ministry of Justice (MOJ), following a registration denial in 2007. 
The group reportedly convened at a "secret" location due to a number 
of refusals to rent state-owned venues. 
 
¶7. Regime Frees Three Political Prisoners 
 
President Lukashenko signed August 15 a clemency edict to release 
opposition leader and political prisoner Aleksandr Kozulin on the 
following day.  At a press conference on August 20, Kozulin 
maintained he would only accept his "complete acquittal," called his 
clemency "humiliating," and urged public protests if 2008 elections 
were not recognized as "free and fair."  On August 20, Lukashenko 
pardoned jailed entrepreneurs Andrey Kim and Sergey Parsyukevich. 
Kim dismissed his sentence as well as the grounds for his release as 
"illegal," and Parsyukevich committed to pursue political activities 
as he had lost his job and business license during his 
incarceration. 
 
¶8. Popular Weekly Editor Questioned Over July 4 Bombing 
 
On August 19, police summoned Sergey Malinovsky, chief editor of the 
popular weekly, Antenna, to testify in connection with the July 4 
bombing.  Malinovsky reported that he was fingerprinted, questioned 
extensively, and warned that he could be called in again. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶9. Core Inflation Accelerates To 6.1 Percent in Jan-July 
 
The Statistics Ministry reported on August 20 that the rate of 
inflation reached 0.7 percent in July and 6.1 percent in 
January-July.  Foodstuff prices increased 0.7 percent and 8.1, 
non-food prices - 0.6 and 3.6 percent, and service prices -1.2 and 
7.4 percent in July and January-July, respectively. 
 
¶10. Belarus Reports Low Unemployment Rate 
Economic portals reported August 15 that Belarus' officially 
registered unemployment rate reached 0.9 percent of the economically 
active population as of August 1, 2008.  The number of registered 
unemployed persons declined by 9.5 percent on year to 42,300 persons 
in July 2008.  Women accounted for 63 percent of the unemployed, and 
young people under 30 years of age for 40 percent.  The highest 
rates of 1.3 percent were registered in the Brest and Vitebsk 
oblasts. 
¶11. Individual Incomes Up 11.4 Percent in Jan-June 
 
The Statistics Ministry announced on August 18 that 
inflation-adjusted incomes of Belarusian citizens rose by 11.4 
percent in January-June 2008.  Incomes per capita reached BYR 
597,000 (USD 280) a month, an increase from BYR 468,000 (USD 218) in 
January-June 2007.  Approximately 83 percent of all income was spent 
on commodity and service payments, and the latter grew by 15.8 
percent on the year. 
 
------ 
Energy 
------ 
¶12. U.S.-Japanese Company Unable to Participate in Nuclear Project 
Deputy Energy Minister Mikhail Mikhodyuk announced on August 20 that 
the U.S.-Japanese Westinghouse-Toshiba has officially confirmed it 
will not bid for construction of the Belarusian nuclear power plant. 
 Mikhodyuk cited lack of an interstate agreement based upon which 
the company could supply equipment for the Belarusian plant. 
Meanwhile, the Ministry received a proposal from the Chinese 
Guangdong Nuclear Power Group to cooperate in nuclear power 
engineering. 
------------- 
Foreign Trade 
------------- 
 
¶13. Russia Remains Belarus' Main Trading Partner 
 
On August 19, the Statistics Ministry released a report reflecting 
that Belarus traded with 171 countries in January-June 2008, 
exporting goods to 128, and importing from 157 states.  Russia 
remained Belarus' main trading partner with a share of 49 percent of 
total foreign trade.  Belarus' exports to Russia increased by 42 
percent year-on-year to USD 5,579.7 mln and imports increased 70 
percent to USD 12,431.6 mln.  The Netherlands, Ukraine, Germany, 
Poland, Latvia, the United Kingdom, China followed with shares of 
9.2, 6.9, 4.5, 3.9, 3.1, 2.6, and 2 percent, respectively. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶14. Freed 2006 Presidential hopeful and former political prisoner 
Aleksandr Kozulin said at a press conference on August 20 that he 
 
VILNIUS 00000696  003 OF 003 
 
 
felt "no indications of a stroke, heart attack, or food poisoning" 
and held the regime liable for any possible "unpleasant" incidents 
that could happen to him.  He also called himself "a nightmare that 
flaps in the night" for Lukashenko. 
 
MOORE 
LEADER