09MINSK131, BELARUS WEEKLY POL/ECON REPORT – APRIL 24, 2009

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Reference ID	Created	Released	Classification	Origin
09MINSK131	2009-04-24 15:09	2011-08-30 01:44	UNCLASSIFIED	Embassy Minsk

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RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSK #0131/01 1141509
ZNR UUUUU ZZH
R 241509Z APR 09
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 0229
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHSK/AMEMBASSY MINSK 0233

UNCLAS SECTION 01 OF 02 MINSK 000131 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON BO
SUBJECT: BELARUS WEEKLY POL/ECON REPORT - APRIL 24, 2009 
 
MINSK 00000131  001.2 OF 002 
 
 
¶1.  The following are brief items of interest compiled by 
Embassy Minsk. 
 
TABLE OF CONTENTS 
 
Civil Society 
------------- 
 
- Lukashenka Delivers Annual Address to Nation and Parliament 
(para. 2) 
- An Opposition Youth Activist Wanted (para. 3) 
- Malady Front Member Jailed (para. 4) 
- Human Rights NGO Denied Registration Appeal (para. 5) 
 
Domestic Economy 
---------------- 
 
- National Bank Pledges Stability of the Belarusian Ruble in the 
2nd Quarter (para. 6) 
- Lukashenka: We Will Not Tolerate Losses (para. 7) 
 
Foreign Trade 
------------- 
 
- National Bank Further Liberalizes Import Payments (para. 8) 
- GOB Introduces Prohibitive Import Tariffs (para. 9) 
 
Quote of the Week (para. 10) 
---------------------------- 
 
------------- 
Civil Society 
------------- 
 
¶2.  Lukashenka Delivers Annual Address to Nation and Parliament 
 
Lukashenka offered little new in a more than two-hour long 
annual speech addressed to the nation and the Parliament April 
¶23.  Devoting the largest part of his speech to the crisis-hit 
economy, he yet again praised the Belarusian (i.e. his own) 
model of economic development, claiming the world's leading 
nations are currently following in his footsteps (by having 
government intervene in the economy).  He asserted that Belarus 
will be the first to recover from the crisis.  Lukashenka 
pledged to allow selective liberalization of the economy to the 
extent it does not encroach on his rule but emphasized he will 
make sure "productions are protected" and "jobs are preserved". 
Departing from his prepared remarks, he blamed the U.S. for 
starting the global financial crisis, repeatedly called Belarus 
"the heart of Europe" and committed himself to building bridges 
between the East and the West.  He stressed that Belarus is 
seeking to continue a dialogue with the EU, including under the 
Eastern Partnership Program (EaP) and improve relations with the 
U.S., if it lifts sanctions and exercises no pressure on the 
GOB.  Lukashenka did not make it any clearer if he plans to go 
to Prague for EaP summit and lashed out at the opposition 
activists who tried to impede his travel there, citing only the 
former presidential hopeful Alyaksandr Milinkevich as an 
exception. 
 
¶3.  Opposition Youth Activist Wanted 
 
A Minsk district police precinct stated April 17 that opposition 
youth activist Tatyana Tishkevich is wanted for allegedly 
violating her arrest regulations.  Tishkevich was sentenced to 
two years of a partial house arrest over participating in an 
unsanctioned January 10, 2008, entrepreneurs' demonstration. 
The activist is currently studying in Poland after she was 
expelled from a Belarusian school and would be subject to arrest 
upon her return to Belarus. 
 
¶4.  Malady Front Member Jailed 
 
A Brest district court sentenced Malady Front member Mikhail 
Ilyin to ten days in jail April 23.  Police charged Ilyin with 
alleged minor hooliganism when the activist protested communism 
by placing a lavatory next to the Lenin monument in downtown 
Brest on April 22. 
 
¶5.  Human Rights NGO Denied Registration Appeal 
 
The Supreme Court denied April 22 an appeal filed by the 
prominent human rights NGO Nasha Vyasna to challenge the Justice 
Ministry registration ban.  The NGO founders maintained that 
they would submit another registration application yet again and 
would continue their regular activities despite the denial. 
 
---------------- 
Domestic Economy 
---------------- 
 
¶6.  National Bank Pledges Stability of the Belarusian Ruble in 
the 2nd Quarter 
 
MINSK 00000131  002.2 OF 002 
 
 
 
The Presidential press service reported April 20 that during his 
routine report to Lukashenka the Chairman of the Board of the 
National Bank (NB) Pyotr Prokopovich pledged to keep the 
fluctuation of the Belarusian ruble (BYR) against the basket of 
currencies (Euro, US dollar and Russian ruble) in the second 
quarter of the year within one percent corridor.  He also 
assured that the National Bank will meet all targets of the 
country's 2009 monetary and credit plan.  At the same time, 
according to the data received by Prime TASS news agency from a 
source in the National Bank, Belarusians bought 74.8% more and 
sold 14.6% less cash hard currency than in January-February 
¶2008.  Purchases of cash currency have allegedly started 
surpassing sales ever since last October. 
 
¶7.  Lukashenka: We Will Not Tolerate Losses 
 
According to the presidential press service, Lukashenka 
expressed serious concern about the country's economic situation 
during the quarterly report made by the GOB and the NB April 17 
on the country's social and economic deve
lopment in the first 
quarter and threatened senior government and industry officials 
with dismissals and prohibited any loss-making starting April 1. 
  He instructed the State Control Committee, the country's main 
inspection agency, to examine operations of each and every 
loss-making enterprise.  Prime Minister Sergei Sidorsky sounded 
more optimistic claiming all industrial products manufactured in 
March were sold successfully.  He nevertheless argued that major 
industrial enterprises should be supported promptly via cheap 
loans.  To conclude the discussion Lukashenka assured that he 
will react harshly if the GOB fails to meet all targets set for 
the economy in the first six months of the year. 
 
------------- 
Foreign Trade 
------------- 
 
¶8.  National Bank Further Liberalizes Import Payments 
 
According to media reports, the National Bank sent a circular 
letter to all Belarusian banks April 15 to allow Belarusian 
importers making advance payments to their suppliers from 
accounts in Belarusian banks and from funds received as loans 
both from foreign lenders and Belarusian banks.  The letter 
marks a significant progress as the previous NB letter, dated 
January 28, allowed such payments only from funds received from 
foreign lenders. 
 
¶9.  GOB Introduces Prohibitive Import Tariffs 
 
According to media reports, Lukashenka signed edict 214 on April 
21 to introduce prohibitive import tariffs on major vegetables 
and consumer goods.  The move, explained by the GOB as intended 
to protect domestic production, includes a six-month 180% import 
tariff on potatoes, onion, cabbage, carrots and beetroots, a 
nine-month,  40% tariff on meat, 30% tariff on wine, and a 25% 
tariff on some milk products.  New, prohibitive and indefinite 
import tariffs on consumer goods include a 30% tariff on 
clothing, and 25-40% tariffs on consumer electronics and some 
other products.  Post expects that the edict may not be welcomed 
by Russian manufacturers/suppliers and may add extra tension in 
Belarus' economic relations with its main trade partner. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶10.  Speaking at a joint news conference with his Latvian 
counterpart in Riga April 22 Foreign Minister Sergei Martynov 
said: "There were no people in Belarus who were detained for 
their political views.  There were people with certain political 
views who were detained on concrete criminal charges." 
MOORE

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