VZCZCXRO4368
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSL RUEHSR RUEHVK RUEHYG
DE RUEHSK #0274/01 2291434
ZNR UUUUU ZZH
R 171434Z AUG 09
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 0416
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHSK/AMEMBASSY MINSK 0423

UNCLAS SECTION 01 OF 04 MINSK 000274 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - AUGUST 14, 2009 
 
REF: MINSK 271 
 
MINSK 00000274  001.2 OF 004 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Supreme Court Denies Registration Appeal of Human Rights NGO 
(para. 2) 
- Religious Groups Complain GOB Is Trying to Limit Their Ability 
to Have Houses of Worship (para. 3) 
- Harassment of Opposition Youth Continues (para. 4) 
- The Fourth Activist from the "Case of 14" Is Amnestied, but 
Dubskiy's Fate Still Unclear (para. 5) 
- One of the Three Volkovysk Activist Is Released Pending Court 
Date (para. 6) 
 
CSTO 
------ 
 
- An Emotional Lukashenka Continues to Send Mixed Messages on 
Belarus' Participation in CSTO (para. 7) 
 
Domestic Economy 
---------------- 
 
- Talks Proceed on Establishing a Belarus, Russian, Kazakhstan 
Customs Union (para. 8) 
- Lukashenka Takes Steps to Improve the Investment Environment 
(para. 9) 
- Lukashenka Signs Edict on Investment Agent To Accelerate the 
Deal Making Process (para. 10) 
- Lukashenka Wants the Government to Loosen its Control over 
Business (para. 11) 
- Lukashenka:  No Cuts in Rural Development and Healthcare 
Spending (para. 12) 
 
Foreign Trade 
------------ 
 
- Trade Between India and Belarus Grows Despite Global Financial 
Crisis (para. 13) 
 
Quote of the Week (para. 14) 
--------------------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Supreme Court Denies Registration Appeal of Human Rights NGO 
 
On August 12, the Supreme Court dismissed Nasha Vyasna (NV) 
human rights NGO's appeal challenging the May 25 decision by the 
Ministry of Justice to refuse it registration.  The Court upheld 
the Ministry's claim that the NGO had not properly adhered to 
the registration procedures.  The Ministry claimed that the four 
founders had provided inaccurate personal information, that the 
letter testifying to their legal address was not legitimate, and 
that the NGO's name did not accurately correspond to the NGO's 
charter and objectives.  Nasha Vyasna, which alone in 2009 has 
been refused registration three times, announced that the it 
will no longer seek official registration.  However, it will 
continue its activities acknowledging that its members could 
face criminal persecution under Article 193 of the Criminal 
Code, which makes it illegal for anyone to run, participate, or 
act on behalf of an unregistered organization.  The founders 
labeled their repeated denials discrimination and plan to appeal 
their case to the UN's Human Rights Committee. 
 
¶3. Religious Groups Complain GOB Is Trying to Limit Their 
Ability to Have Houses of Worship 
 
On August 7, pastor of the Full Gospel New Life Church (NLC), 
Vyacheslav Goncharenko, was subpoenaed by a Minsk district 
prosecutor and warned that he could face administrative 
liabilities if he continued to block officials access to the NLC 
building.  On August 13, NLC refused entry to law enforcement 
officers who were trying to serve NLC with an August 19 eviction 
notice.  Earlier, on July 16, NLC barred Emergency Situations 
Ministry's personnel from entering the building claiming it was 
just another attempt by GOB officials to force the church to 
vacate its premises.  Since October 2005, NLC has been involved 
in protracted litigation with the city of Minsk over its 
premises.  Authorities claim they intend to build residential 
housing and a school on the land occupied by the NLC and are 
willing to offer compensation, but the NLC claims the 
compensation is symbolic at best.  In Gomel on August 12, a 
district court fined Yuriy Reshetnikov, a local Jehovah 
Witnesses community leader, $375 for conducting on July 21 an 
unsanctioned mass in a private residence.  He was charged with 
 
MINSK 00000274  002.2 OF 004 
 
 
establishing a place of worship without the proper approval of 
local authorities.  Reshetnikov called the fine "illegal" 
claiming that the court was infringing on his right to practice 
his religion.  He said he intended to appeal the fine. 
 
¶4. Harassment of Opposition Youth Continues 
 
On August 11, a Vitebsk district court fined "Young Belarus" 
activist Taras Surgan $60 for conducting on July 16 an 
unsanctioned demonstration and publicly displaying the outlawed 
white-red-white flag of Belarus.  Surgan rejected the 
accusations, saying that his intent had been to raise the 
public's awareness about Belarus' history and its national 
symbols.  Surgan's associate, Maladaya Gramada group activist 
Valeriy Romanenko, was issued a warning for displaying a 
political banner on July 16.  In Brest, on August 12, Mikhail 
Ilyin was interrogated by a prosecutor on the grounds that he 
had been active in the unregistered Malady Front group.  Ilyin 
expressed concerns to the press that he could face criminal 
charges and jail time under Article 193 of the Criminal Code. 
 
¶5. The Fourth Activist from the "Case of 14" Is Amnestied, but 
Dubskiy's Fate Still Unclear 
 
On August 12, police informed "European Belarus" civil campaign 
activist, Aleksandr Borozenko, that he had been granted amnesty. 
 He is one of the 14 opposition youth convicted for 
participating in the January 10, 2008 unsanctioned entrepreneur 
demonstrations in Minsk.  Borozenko had been serving a one year 
partial house arrest sentence and was the fourth of the 14 
activists to have been amnestied.  Separately, on August 20, 
Artyom Dubskiy, from the "case of 14", will hear the result of 
his appeal against the one year sentence that was on July 7 
handed down against him for violating the terms of his partial 
house arrest (REFTEL). 
 
¶6. One of the Three Volkovysk Activist Is Released Pending Court 
Date 
 
On August 8, Yuriy Leonov, one of the three Volkovysk activists, 
was released after being held in pretrial detention for 
five-months.  He is banned from leaving Belarus until the case 
is completed.  Leonov dismissed the arson charges against him 
and his two jailed associates, Nikolay Avtukhovich and Vladimir 
Osipenko, as "absurd".  He said the authorities were 
"retaliating" for their continued efforts to run their private 
small businesses despite authorities efforts to block them. 
Leonov stated that he had been told that the investigation would 
be extended until October 8 and that the court hearing would 
take place in November of this year.  He also stated that 
currently terrorist charges had been only brought against 
Avtukhovich.  Osipenko's request to be remanded on bail pending 
the trial date was rejected. 
 
------ 
CSTO 
------ 
 
¶7. An Emotional Lukashenka Continues to Send Mixed Messages on 
Belarus' Participation in CSTO 
 
In an August 11 press conference, Lukashenka questioned the 
feasibility of the Collective Security Treaty Organization 
(CSTO) force agreement and emotionally asked the journalist why 
Belarusian young men should die defending CSTO members when 
Belarus is not being "allowed into the Russian market" and is 
not able "to get energy resources from Kazakhstan, Tajikistan, 
and Russia".  Nevertheless, he flatly denied that CSTO parties, 
in particular Russia, were "blackmailing or putting pressure" on 
him to sign the document.  He said he wasn't "against the 
integration processes, including those in the military and 
political areas," but that CSTO should consider the 
"understandable" structure of the equality-based membership in 
NATO.  He pointed out that when NATO members "fight for each 
other; they have no barriers or borders" and "the strong help 
the weak there."   Lukashenka told the press that if the CSTO 
agreement on rapid response forces proved to be beneficial for 
Belarus, of course the GOB would sign it. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶8. Talks Proceed on Establishing a Belarus, Russian, Kazakhstan 
Customs Union 
 
On August 12, Belarus Deputy PM Andrey Kobyakov, head of a GOB 
delegation to the three-party customs talks in Moscow, stated 
that common regulations of the Customs Union and not any 
national legislation would serve as the basis for their common 
customs territory.  Kobyakov added that starting July 1, 2010, 
the three states would begin harmonizing their internal customs 
procedures.  Meanwhile, Russian First Deputy PM Igor Shuvalov 
 
MINSK 00000274  003.2 OF 004 
 
 
stated that there was agreement on a "transparent, flexible" 
scheme for distributing customs revenues for goods entering the 
single customs territory irrespective of the country of their 
origin or point of entry into the Union.  Kobyakov, however, 
described the issue as "delicate". 
 
¶9. Lukashenka Takes Steps to Improve the Investment Environment 
 
On August 6, President Lukashenka signed decree number 10 aimed 
at creating a more friendly investment climate.  For example, 
the decree empowers lower levels of government to sign 
investment agreements.  Local authorities can sign agreements if 
and when preferences set forth in existing law are not required 
for project implementation.  The GOB can sign agreements if and 
when investors apply for existing preferences available in the 
law.  However, when investors are seeking preferences not 
currently listed in the law, they will still need to obtain the 
President's clearance on the agreement.  Also in the latter case 
investors will still be required to submit business plans and 
have the projects examined in advance by relevant government 
agencies. 
 
¶10. Lukashenka Signs Edict on Investment Agents To Accelerate 
the Deal Making Process 
 
The Presidential press service reported on August 7 that 
Lukashenka signed edict 413, which establishes the procedure for 
nominating and approving investment agents, who can be both 
Belarusian and foreign entities.  The agents will be able to 
expedite the process of preparing and concluding agreements. 
According to the report, the list of individuals and entities 
eligible to become investment agents will include those who have 
sufficient practical skills in drafting and implementing 
investment projects, and who posses business qualities, which 
enable them to negotiate investments "with top management of 
large companies".  The investment agents can be nominated by any 
state organization, but the final decision will be taken by the 
GOB. 
 
¶11. Lukashenka Wants the Government to Loosen its Control over 
Business 
 
Speaking at a government session on August 6, Lukashenka 
instructed government and the Prosecutors' office to only 
monitor the efficiency of businesses' operations and not to 
instruct them what to buy and from whom.  He warned government 
agencies to avoid conducting ill-founded inspections of 
businesses and not to single out for inspection a business just 
because it was profitable.  He instructed the government "not to 
interfere with businesses' operations in this serious time." 
 
¶12. Lukashenka: no Downward Revision of Rural Development and 
Healthcare Spending 
 
On August 8, Lukashenka visited several farms in the Brest 
Oblast to inspect the ongoing harvest.  He assured the rural 
population that despite the global crisis the GOB's rural 
development and healthcare spending would stay constant.  He 
also proposed that Belarus should seek to expand the sizes of 
its farms in order to "optimize" the nation's agricultural 
sector. "However, the government should not artificially drive 
everyone into large farms," he was quoted as saying. "I flatly 
oppose artificial enlargement.  If a small farm operates at a 
profit, let it be as it is." He also stated that over the next 
five-years, the government would stop subsidizing the 
agricultural sector, and would only focus on developing 
infrastructure and social programs in the rural areas.  During 
his travel on August 11 to farms in the Minsk Oblast, Lukashenka 
said the state's objective was to raise Belarus' agriculture to 
European norms, and to do so he said, "we need discipline, 
reasonable salaries, and high technology." 
 
------------- 
Foreign Trade 
------------- 
 
¶13. Trade Between India and Belarus Grows Despite Global 
Financial Crisis 
 
The Indian Ambassador to Belarus, Ramesh Chandra, told the media 
on August 11 that the Indian FM, SM Krishna, would visit Belarus 
in September and would meet with Lukashenka, FM Sergey Martynov, 
and other GOB officials.  The parties would discuss the 
development of bilateral cooperation and that India hoped to 
sign a number of agreements, including establishing an Indian 
digital technology training center at the Minsk-based IT Park. 
India also was interested, he said, in signing a long-term 
contract to purchase Belarus potash fertilizers that would take 
it beyond its current agreement to purchase 675,000 tons over 
the next 12 months.  Despite the global financial crisis, trade 
between the two countries, according to the Ambassador, was 
projected to increase from $432 million in 2008 to $500 million 
in 2009. 
 
MINSK 00000274  004.2 OF 004 
 
 
 
----------------- 
Quote of the Week 
----------------- 
 
¶14. Answering questions in a TV program "Formula of Power" 
co-issued by ITAR-TASS news agency and Russian Television on 
August 13, Lukashenka posited that one of the reasons for 
tension in the Russia-Belarus relationship is that Russian 
elite's lacked sufficient knowledge about what was going on in 
Belarus. 
 
"Russia's political elite knows absolutely nothing about what is 
going on in Belarus.  They read in ugly newspapers that hate 
Belarus and are full of sponsored articles that Belarus has 
turned to the West.  Make sure you use official channels of 
information, ask me where we turned to.  They do not know what 
is going on here." 
SCANLAN