VZCZCXRO2833
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0172/01 1590922
ZNR UUUUU ZZH
R 080922Z JUN 09
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 0283
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHSK/AMEMBASSY MINSK 0287

UNCLAS SECTION 01 OF 02 MINSK 000172 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS BI-WEEKLY POL/ECON REPORT - JUNE 6, 2009 
 
MINSK 00000172  001.2 OF 002 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Malady Front Activist Fined (para. 2) 
- Human Rights Group Denied Registration (para. 3) 
- Prosecutors Extend Criminal Investigation against Volkovysk 
Activists (para. 4) 
 
Domestic Economy 
---------------- 
 
- GOB to Increase VAT (para. 5) 
- Belarus May Receive IMF's Second Tranche Later this Month 
(para. 6) 
- Belarus and Russia Sign Agreement on Nuclear Energy (para. 7) 
 
Quote of the Week (para. 8) 
--------------------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Malady Front Activist Fined 
 
On May 26, Soligorsk authorities fined underage local MF member 
Iliya Shyla $625 in absentia.  Shyla photographed and observed a 
May 5 demonstration "School for All" staged by the MF activists 
in downtown Soligorsk in support of his forcefully conscripted 
brother Ivan Shyla, expelled from school before his final 
graduation exam in June 2008.  Iliya Shyla will appeal the fine 
to court insisting that the charges were "far-fetched". 
 
¶3.  Human Rights Group Denied Registration 
 
The Justice Ministry denied May 28 the prominent human rights 
group Nasha Vyasna its third registration application.  The 
Ministry alleged that the NGO's name was not "consistent" with 
stated purposes and that group's founders and leaders were 
previously convicted on numerous administrative charges. 
Justice officials also stated that the human rights lawyers 
"impeded" their ability to verify registration documents. 
 
¶4.  Prosecutors Extend Criminal Investigation against Volkovysk 
Activists 
 
On June 2, Minsk Oblast Prosecutor's Office extended until July 
3 criminal investigations against Volkovysk activists Nikolay 
Avtukhovich, Yuriy Leonov and Vladimir Osipenko.  Human rights 
advocates continue to express their concerns over the activists 
being held in custody and police neither interrogating them to 
conclude investigations nor filing their cases to court. 
Avtukhovich -- like Leonov, a former political prisoner -- has 
been on a hunger strike since April 16 and has reportedly lost 
25 kilograms. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶5.  GOB to Increase VAT 
 
According to media reports, the GOB will soon increase VAT from 
18 to 22 percent.  While intended to increase GOB revenue, 
regime officials claim that the increase will not result in 
higher prices on consumer goods, and will rather help reduce 
consumer imports and boost exports. 
 
¶6.  Belarus May Receive IMF's Second Tranche Later this Month 
 
The IMF permanent representative in Belarus Natalia Kolyadina 
told Prime-TASS news agency June 1 that the IMF and the GOB 
experts have successfully resolved almost all outstanding issues 
during the IMF's mission to Minsk in April-May.  This will allow 
the IMF to complete its review by the end of June and issue the 
second tranche of USD 400 million under the IMF's USD 2.46 
billion Stand-By Arrangement (SBA) for Belarus approved in 
January.  She opined that the GOB will not have to depreciate 
its currency again as the National Bank's monetary policy Is 
sufficiently rigorous.  She praised cuts the GOB make in the 
central budget and welcomed the scheduled tax reform doubting, 
though, that higher VAT will help reduce the foreign trade 
deficit.  The GOB should focus more on making the economy more 
competitive rather than reducing imports, opined the IMF 
representative. 
 
¶7.  Belarus and Russia Sign Agreement on Nuclear Energy 
 
 
MINSK 00000172  002.2 OF 002 
 
 
According to press reports, Russia and Belarus concluded May 29 
a framework cooperation agreement on the use of nuclear energy 
for peaceful purposes.  The Agreement signed at the session of 
the Council of Ministers of the Union State established a legal 
basis for starting a project for the construction of a Nuclear 
Power Plant (NPP) in Belarus in 2015 and beyond.  The project 
will require a specific agreement expected to be signed in 
October or November.  Russia' Deputy Premier/Finance Minister 
Alexei Kudrin announced May 28 that the GOB approached the GOR 
for USD 9 billion loan to construct the NPP.  Kudrin explained 
that the Russian side will need time to review the application 
meaning it wants convincing proofs the project is fully viable. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶8.  Welcoming visiting Israeli Foreign Minister Avigdor 
Lieberman June 4, Lukashenka said: "Israel for Belarus is not a 
foreign country as more than a dozen thousand our compatriots 
live there.  We are not indifferent to these people's fates. 
Everybody in this country knows about that and anybody who ever 
left Belarus for Israel knows about that.  Repatriates from 
Belarus, our Jews, are special people. This is a tender, moral 
note in our relations that makes an imprint in all our 
relations". 
MOORE