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DE RUEHVL #0828/01 2810551
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FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC 2901
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 03 VILNIUS 000828 
 
SIPDIS 
AMEMBASSY MINSK SENDS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - October 3, 2008 
 
¶1.  The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Opposition Activist Dismissed from Workplace (para. 2) 
- Embattled Protestant Community Offered Land (para. 3) 
- Opposition Protests Election Results (para. 4) 
- No Opposition Candidates Elected to Parliament (para. 5) 
- Opposition Candidate Arrested (para. 6) 
- Opposition Youth, Journalist Beaten 
 
Domestic Economy 
---------------- 
 
- On-the-year Retail Sales up 21.3 Percent Through August 
 (para. 8) 
- Belarus Ranks 95 among 141 Countries Rated In Attracting Foreign 
Investment (para. 9) 
- Belarus' Budget Surplus through August: USD 1.5 Billion (para. 
10) 
- Housing Utilities Bills on the Rise (para. 11) 
- Germany a Major Investor (para. 12) 
 
Foreign Trade 
-------------- 
- Government Introduces Export Tariff on Potassium Fertilizers 
(para. 13) 
 
Quote of the Week (para. 14) 
----------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Opposition Activist Dismissed from Workplace 
 
The Slonim Central Hospital Administration dismissed opposition 
activist Ivan Bedko September 29.  Bedko headed election 
headquarters of a local opposition candidate and monitored 
elections.  He said that the administration unilaterally terminated 
his labor contract two months ahead of its expiration and a year 
before his retirement which violated labor laws.  Bedko would appeal 
to court but expressed doubt he would win the case following his 
multiple complaints about rigging election results in the Slonim 
district. 
 
¶3.  Embattled Protestant Community Offered Land 
 
On September 29, the New Life Church (NLC) refused an offer of a 
land plot in its response to the Minsk city authorities.  NLC Lawyer 
Sergey Lukanin noted that the offered land plot was four times 
smaller and would not fit a prayer house to be built as large as 
they currently occupy.  Lukanin stated the community would like to 
"peacefully" settle their protracted confiscation dispute with the 
Minsk authorities in the framework of the ongoing case.  The 
Economic Court upheld forced sale of the NLC building at a minimal 
price in 2006; however, the case was suspended indefinitely in 
¶2007. 
 
¶4.  Opposition Protests Election Results 
 
Approximately 600-1,000 civil society, youth, and opposition 
activists demonstrated to protest "rigged" election results and 
possible recognition of the newly elected parliament by the West in 
central Minsk the evening of September 28.  Heavily present law 
enforcement forces closely observed but neither interfered nor 
dispersed the unsanctioned rally.  The Interior Ministry stated 
September 29 that it would file a case of "malicious violation of 
public order" to the prosecutors' office and hold the perpetrators 
liable. 
 
¶5.  No Opposition Candidates Elected to Parliament 
 
Central Election Commission Chairwoman Lidiya Yermoshina announced 
preliminary results of the parliamentary polls on September 29. 
Over 26 percent of the registered electorate voted early, and the 
turnout reached 75.3 percent.  Thirty MPs were re-elected, and not a 
single civil society or opposition activist was elected.  The 
OSCE/ODIHR and the OSCE Parliamentary Assembly observation missions 
deeply criticized the conduct of the elections, noting "minor 
improvements" but reporting that 48 percent of observers considered 
the vote count to be "bad" or "very bad". 
 
¶6.  Opposition Candidate Arrested 
 
On September 30, Bobruysk-based opposition hopeful Ales Chigir was 
summoned to the police and sentenced to 10 days in jail.  The police 
 
VILNIUS 00000828  002 OF 003 
 
 
charged the activist with minor hooliganism based on an 
administrative case opened May 29.  He was then briefly detained for 
"defying police orders". 
 
¶7.  Opposition Youth, Journalist Beaten 
 
Belarusian Popular Front Youth Wing members Franak Vychorka, Anton 
Kalinovskiy, and Stepan Sviderskiy were beaten in Minsk after the 
demonstration on September 28.  Three plainclothesmen attacked the 
activists and destroyed their flags and posters.  In a separate 
incident, chief editor of the independent "Kurier iz Vitebska" 
newspaper and election observer Vladimir Bazan received minor head 
injuries on September 28.  Bazan reported the incident to the 
police, who have opened an investigation. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8.  On-the-year Retail Sales up 21.3 Percent Through August 
 
Belarus' Statistics Ministry officials told Prime-TASS news agency 
on September 26 that on-the-year rise in retail trade in Belarus was 
21.3 percent through August.  The ratio of food and non-food 
products was 50:50.  79 percent of products sold were made in 
Belarus.  The shares of Belarusian made food and non-food products 
in the total volumes of retailed food and non-food products were 
85.7 percent and 70 percent respectively.  82 percent of all 
products were retailed thorough private networks, 14.8 percent were 
retailed through state-owned stores and only 3.3 percent were sold 
via foreign-owned retail networks. 
 
¶9.  Belarus Ranks 95 among 141 Countries Rated in Attracting Foreign 
Investment 
 
According to several news agencies' reports, United Nations 
Conference on Trade and Development (UNCTAD) published an annual 
report on September 24 on the world investment.  In 2007, Belarus 
ranked 95th in attracting foreign investment and 45th in investment 
potential among 141 rated countries.  The country made a significant 
progress in attracting foreign investment, as in 2006 it ranked only 
122nd.  According to UNCTAD assessment, Belarus had USD 1.8 billion 
of direct foreign investment in 2007. 
 
¶10.  Belarus' Budget Surplus through August: USD 1.5 Billion 
 
According to press reports, Belarus' central budget through August 
had a surplus of USD 1.5 billion.  Budget revenues were 77 percent 
of the 2008 plan and expenditures were 64 percent of the plan. 
 
¶11.  Housing Utilities Bills on the Rise 
 
Belarus' Deputy Housing and Communal Services Minister Nikolai Lipen 
told Belta news agency September 30 that as soon as the central 
heating is turned on some time in October, Belarusians will have to 
pay significantly higher utility bills.  Although the Deputy 
Minister said that the GOB has no immediate plan to increase heating 
tariffs, an average utility bill will be USD 50 for a studio, USD 70 
for one-bedroom and USD 200 for a two-bedroom apartment. 
 
¶12. Germany is a Major Investor 
 
Prime-TASS news agency reported October 1 that Belarusian Deputy 
Economy Minister Andrei Tur described Germany as the country's major 
partner in Europe, ranking fourth in Belarus' foreign trade balance. 
 Speaking at the Days of German Economy in Belarus conference, the 
Deputy Minister said trade between the two countries grew from USD 1 
billion in 2002 to USD 3.5 billion in 2007.  Germany invested USD 
320 million, of which USD 30 million was direct foreign investment. 
Speaking at the same conference German Ambassador to Belarus 
Gebhardt Weiss said his country looks forward to having more trade 
with Belarus and expects more openness in mutual relations. 
 
------------- 
Foreign Trade 
------------- 
 
¶13.  Government Introduces Export Tariff on Potassium Fertilizers 
 
An anonymous source in Belarus' government told the Prime-TASS news 
agency September 30 that Presidential Edict 530 signed on September 
26 introduced an export tariff on Belarusian-made potassium 
fertilizers of Euro 200 per ton.  In the first seven months of the 
year, exports of this commodity have grown 255 percent. 
Belaruskaliy, the largest manufacturer in the CIS, exported a total 
of 4.2 million tons and earned USD 1.8 billion.  The tariff will be 
effective until the end of the year and may be prolonged if the 
world prices are sufficiently high.  Belaruskaly plans to 
manufacture a total of 8.3 million tons of fertilizers in 2008. 
 
----------------- 
Quote of the Week 
 
VILNIUS 00000828  003 OF 003 
 
 
----------------- 
 
¶14.  Speaking at the press conference on September 29 and commenting 
on the results of the parliamentary elections Chairperson of the 
Central Election Commission Lidia Yermoshina said: 
 
"The rejection of early voting can only be accomplished after a 
corresponding decision of the U.S. Congress. I believe the 
stronghold of democracy (the U.S.) should be a role model for us." 
 
MOORE 
CLOUD