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Viewing cable 09MINSK255, BELARUS WEEKLY POL/ECON REPORT - JULY 31, 2009

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Reference ID Created Released Classification Origin
09MINSK255 2009-07-31 13:38 2011-08-26 00:00 UNCLASSIFIED Embassy Minsk
VZCZCXRO1249
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHSK #0255/01 2121338
ZNR UUUUU ZZH
R 311338Z JUL 09
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 0392
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHSK/AMEMBASSY MINSK 0399
UNCLAS SECTION 01 OF 03 MINSK 000255 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON ENRG BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - JULY 31, 2009 
 
MINSK 00000255  001.2 OF 003 
 
 
1. The following are brief items of interest compiled by Embassy 
Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Police Disperse Independence Proclamation Rallies (para. 2) 
- Independent Journalist Warned (para. 3) 
- Independent Magazine Denied Distribution (para. 4) 
- Party of Working People Holds Founding Convention (para. 5) 
- Malady Front Members Briefly Detained (para. 6) 
- Danish Human Rights Advocate Deported from Belarus (para. 7) 
 
Domestic Economy 
---------------- 
 
- Lukashenka Wants Private Business to Help Boost Lax Exports 
(para. 8) 
- National Bank Prohibits Loans to Individuals in Hard Currency 
(para. 9) 
- NBB Chairman: Belarus Met All IMF SBA Targets Due July 1 
(para. 10) 
 
Foreign Trade 
------------- 
 
- Belarus' Foreign Commodity Trade Deficit Reaches $3.9 Billion 
Through June (para. 11) 
- Most Belarusian Milk Product Successfully Certified for Export 
to Russia (para. 12) 
 
Quote of the Week (para. 13) 
---------------------------- 
 
------------- 
Civil Society 
------------- 
 
2. Police Disperse Independence Proclamation Rallies 
 
On July 27, opposition groups marked across Belarus the 19th 
anniversary of the Belarus' independence proclamation by staging 
rallies and distributing printed materials.  Police arrested 20 
"European Belarus" civil campaign activists at a gathering in 
central Minsk and transported seven of them to a precinct.  All 
were released three hours later with no charges.  In the town of 
Gorodok, police dispersed 15 opposition youth demonstrating and 
waving the outlawed white-red-white national flags and detained 
four activists.  The four were charged with "participating in 
unsanctioned events" and will soon stand trial on administrative 
charges. 
 
3. Independent Journalist Warned 
 
On July 28, the Grodno Prosecutor's office issued an official 
warning to Igor Bantser, chief editor of the "Magazyn Polski na 
Uchodzstwie."  The newspaper is issued by the Union of Poles, 
which is supported by Poland, but not recognized by the GOB and 
thus not registered in Belarus.  Bantser linked the warning to 
the police's confiscation in May 2009 of 70 copies of the 
newspaper containing critical articles about Lukashenka and GOB 
policies. 
 
4. Independent Magazine Denied Distribution 
 
The State-run newspaper distribution network of kiosks, 
Belsoyuzdruk, rejected on July 27 the monthly independent 
magazine ARCHE's requests for use of its services citing "lack 
of possibilities of magazine's distribution through trade 
network due to excessively high availability of other printed 
materials, including publications about politics, literature, 
and art". 
 
5. Party of Working People Holds Founding Convention 
 
On July 26, the Belarusian Party of Working People held its 
founding convention in Minsk, adopted its charter and program, 
and elected trade union leader Aleksandr Bukhvostov as its 
Chairperson.  Party's membership currently stands at 1,025 
persons.  They urged the GOB to improve its social policies for 
workers' support amidst the global financial crisis, to pursue 
democratic reforms and rule-of-law principles, and to respect 
their right to freely establish associations and defend their 
social interests, participate in political events and choose 
workplaces irrespective of political beliefs.  Party members 
denounced the system of "short-term employment contract" calling 
it "a basic instrument to infringing workers' rights".  The 
Party of Working People will succeed the Belarusian Party of 
Labor liquidated in 2004. 
 
6. Malady Front Members Briefly Detained 
 
MINSK 00000255  002.2 OF 003 
 
 
 
Police detained Malady Front (MF) activist Vadim Borovskiy in 
Lida on July 29 for posting leaflets about his jailed colleague 
Artyom Dubskiy.  Borovskiy was questioned at a precinct and 
released an hour later with no charges.  In a separate incident 
on July 27, police also apprehended Borovskiy and his associate 
Kastus Litvinskiy for three hours under similar circumstances. 
In another case, MF Deputy Chairperson Nasta Palazhanka was 
detained during a Catholic festival in Ivenets on July 25 for 
distributing opposition leaflets.  Police instituted no charges 
against her and released the activist an hour and one half 
later. 
 
7. Danish Human Rights Advocate Deported from Belarus 
 
Jens-Kristian Lutken, Leader of the Danish Support Initiative 
for Liberty and Democracy, was deported on July 24 from Belarus 
back to Latvia after a night in custody.  Lutken had a valid 
visa to enter Belarus; however, it was explained that he was not 
"wanted" in Belarus and had been banned from entering it.  The 
Danish activist linked his deportation to active cooperation 
with Belarus opposition, youth, and civil society groups.  His 
four other associates; however, were allowed to enter Belarus. 
 
---------------- 
Domestic Economy 
---------------- 
 
8. Lukashenka Wants Private Business to Help Boost Lax Exports 
 
According to press reports, Lukashenka urged the government to 
seek the assistance of private businesses in selling the huge 
inventories of unsold Belarusian-made products to both 
traditional and new markets.  Speaking at the July 27 government 
session, he noted particular importance in boosting exports of 
seven or eight major items manufactured primarily by the 
country's automotive and machine-building industries. 
 
9. National Bank Prohibits Loans to Individuals in Hard Currency 
 
According to media reports, on July 14, the National Bank (NBB) 
issued resolution 105 to prohibit issuance by Belarusian banks 
of hard currency loans to individuals.  The ban came into effect 
on July 28 and was expected to last until January 2011. 
However, the NBB press office later clarified that the NBB plans 
to make it a  permanent change.  The resolution is part of 
de-dollarization policy aimed at strengthening the national 
currency.  However, NBB Chairman Pyotr Prokopovich confirmed 
that individuals with dollar accounts opened prior to July 28 
would continue to receive interest payments on their accounts in 
dollars. 
 
10. NBB Chairman: Belarus Met All IMF SBA Targets Due July 1 
 
At a July 29 news conference, NBB Chairman Pyotr Prokopovich 
announced that Belarus had met all the July 1 targets 
established by the IMF under the $3.52 billion Stand-By 
Arrangement (SBA).  The next set of targets to be met by the GOB 
and the NBB are due October 1.  Chairman Prokopovich expressed 
hope that Belarus would receive two more tranches totaling $ 
1.35 billion before the end of the year. 
 
------------- 
Foreign Trade 
------------- 
 
11. Belarus' Foreign Commodity Trade Deficit Reaches $3.9 
Billion Through June 
 
Chairman of Belarus' National Statistics Committee Vladimir 
Zonovsky told the government session on July 28 that the 
country's foreign commodity trade deficit had reached $3.9 
billion, a figure which was 1.8 times higher than a year ago. 
In June 2009 alone the trade deficit grew by $733 million. 
 
12. Most Belarusian Milk Product Successfully Certified in Russia 
 
Chief of Russia's Consumer Monitoring Services/Russia's Chief 
Sanitary Doctor Gennadiy Onishchenko told Ekho Moskvy radio 
station on July 31 that most Belarusian suppliers of milk 
products were successfully certified with  Russia's new 
technical standards.  Following a short "milk war" between 
Russia and Belarus in early June, Belarusian suppliers of milk 
products were required to submit by August 1 new documentation 
to show they conformed with the new Russian regulations for 
selling milk products in Russia. 
 
----------------- 
Quote of the Week 
----------------- 
 
13. Speaking at a July 23rd meeting with Belarusian Ambassadors 
and MFA officials, Lukashenka stated that the U.S. sanctions had 
 
MINSK 00000255  003.2 OF 003 
 
 
hit in the first place American consumers of Belarusian 
products.  He said: 
 
"I was telling about all this in detail quite recently at the 
meeting with a representative delegation of American 
congressmen.  Our discussion was not easy but it was open and 
sincere.  Trust me, we shared views on quite a few issues.  The 
Congressmen asked for another meeting to discuss these and other 
issues.  We are open and ready to meet." 
SCANLAN