Country Update 06.27.05

1. Politics

Belarus and Russia coordinate their North American foreign policies

27-06-05 www.mfa.gov.by, press-service of the Ministry of Foreign Affairs of Belarus informs of a Belarus-Russia interministerial consultations on North American problematique held in Minsk. A particular attention has been paid to the U.S. policies at the post-soviet space . Overall, Head of the Department for U.S. and Canada of the Foreign Ministry of Belarus, Mr. Sergey Rachkov, and Director of the Department for North America, Mr. Igor Neverov, discussed a broad range of questions, including U.S. foreign policies toward Belarus, Russia, and the CIS countries and international organizations, such as the UN, the OSCE, and the WTO, and commercial interaction of Belarus and Russia and the United States.

Belarus still plans to run visa regime with Georgia

27-06-05 www.belta.by, BelTa informs of a statement made by Mr. Alexander Gerasimenko, Deputy Minister of Foreign Affairs that Belarus considers walkout from the Bishkek agreement on visa free travel within the Commonwealth of Independent States. The statement had been made at a sitting of the Permanent Commission of the Chamber of Representatives on International Affairs and Connections with the CIS. Currently only Belarus, Georgia and Azerbaijan stays in the Bishkek agreement signed in October 1992. As for other CIS countries, Belarus has signed separate agreements on visa-free travel with the rest of them. As for Azerbaijan, the Ministry of Foreign Affairs of Belarus prepared a draft bilateral agreement on visa-free travel, so after its adoption Belarus could announce of a walkout of the Bishkek agreement , said Mr. Gerasimenko. It follows then that Georgia would be the only CIS state with which no visa-free travel agreement signed.

Belarus and Egypt signed Memorandum of cooperation in the field of tourism

27-06-05 www.regnum.ru, IA Regnum reports that Belarusian Ministry of Sports and Tourism and Ministry of tourism of Egypt signed a Memorandum of Mutual Understanding on Cooperation in the Field of Tourism. In the words of Deputy Minister of Foreign Affairs of Egypt, Mr. Ashraf Rashed, parties had discussed the most urgent issues of bilateral interaction in the field of tourism , and ways of increasing of number of Belarusian and Egyptian tourists.

2. Foreign Affairs

International Helsinki Federation for Human Rights considers Belarus the worst case in Europe in terms of human rights protection

27-05-05 www.ihf-hr.org, International Helsinki Federation for Human Rights, an international organization striving for national human rights protection and supporting human rights defenders world-wide publishes a 2005 report Human Rights in the OSCE Region: Europe, Central Asia and North America , highlighting the events of 2004. The report calls Belarus one of the worst countries in Europe in terms of respect for the rule of law, democracy and human rights . The IHR strongly criticizes the government of Belarus for imposing excessive restrictions on the freedom of expression, association, and the media . The report meticulously lists significant number of violations of human rights and freedoms in the country, covering such areas, elections and referenda; activities of human rights defenders; freedom of expression, free media and information; peaceful assembly; freedom of association; judicial system and independence of the judiciary; right to a fair trial and effective remedies; arbitrary arrest and detention; ill-treatment and police misconduct; conditions in prisons and detention facilities; right to life; freedom of religion and religious intolerance; ethnicity; racism, intolerance and xenophobia. Moreover, the IHR Annual Report mentions violent disappearances of politicians and states that Belarusian authorities have failed to conduct a comprehensive and objective investigation . At the same time, the IHR values the workings of the Belarusian Helsinki Committee which remains the only nation-wide human rights NGO , facing various charges raging from violations of its own statutes and tax evasion . Nevertheless, the NGO continues to operate in very harsh circumstances. The IHR also considered referendum of October 2004 the lifted all limits on the tenure of President Lukashenko an unlawful and unconstitutional . Last, but not least, the report mentions political prisoners of Belarus as a clear sign of prosecution of openly expressed political opposition to government .

No backing to Belarusian authorities should be expected from Russia, says Deputy of the PACE, while Deputy Mr. Azim Mollazade calls to set up an international center on Belarus question

27-06-05 www.belapan.by, BelaPAN publishes an interview with Mr. Christos Purgurides, Deputy of the Parliamentary Assembly of the Council of Europe (PACE). Mr. Purgurides claimed that very soon the government of Russia would be forced to stop supporting Belarusian authorities . So Lukashenko s regime would be left of any backing , he added. In the words of Mr. Purgurides, the PACE s approach to Belarus question is unbiased , while the position of the Sub-Committee on Belarus of the Political Affairs Committee is objective . He expressed his strong disagreement with statements made by the Belarusian Ministry of Foreign Affairs that called the PACE s approach opportunistic , reflecting the absence of objective vision of the situation in the country . Contrary to the Ministry s claims, Mr. Purgurides spoke of the well-grounded nature of the PACE s decisions and stated that opinion of the Council of Europe indeed produces a notable impact on decisions made by the European Union and the United States . The Deputy also stressed that statements made by the PACE is one of the levers to influence political situation in Belarus. According to him, critical attitude of the Parliamentary Assembly would be retained until Belarus moves to freedom and democracy. These opinions have been in many aspects shared by special rapporteur on Belarus, Mr. Azim Mollazade, who submitted a report on Belarus to the consideration of the Sub-Committee on Belarus. Mr. Mollazade claimed that the very fact of existence this Sub-Committee speaks in itself that the country is far from standards set by the Council of Europe . The special rapporteur stressed that the PACE has acquired great moral authority promoting the rule of law and expressed his hope that the international community would do everything in its power to change situation in Belarus in a positive way. In the words of Mr. Mollazade, the Russian Federation would definitely take recommendations made by the Council of Europe into consideration and then use them influence in Belarus to stop violations of human rights in the country. Radio Liberty Belarus (www.svaboda.org) also publishes a separate interview with Mr. Azim Mollazade of the Parliamentary Assembly of the Council of Europe. Mr. Mollazade told a correspondent that a decision had been made to create a sort of international center to coordinate activities of the Organization for Security and Cooperation in Europe, the Council of Europe, and the U.S. Congress towards Belarus. Overall, the approach of the PACE and the center to be created is that human rights and democracy are not country s internal affairs , stressed Mr. Mollazade. In his opinion, Belarusian authorities have done little to discuss democratic development of the country.

CIS Executive Secretary speaks of intimate support to President Lukashenko

27-06-05 www.charter97.org, Charter 97 quotes the CIS Executive Secretary, Mr. Vladimir Rushailo, who said that we need to provide Mr. Lukashenko intimate support, starting with information and ending with economic one . When questioned about possibility of revolution of the Ukrainian type in Belarus, Mr. Rushailo said that things are not easy in Belarus and referred to State Secretary Condoleezza Rice who does not hide U.S. interest to the country . In the words of the CIS Executive Secretary, he has the impression that Mr. Alexander Lukashenko is not a dictator. He is supported by population and particularly rural one . Mr. Rushailo criticized the decision made by the Council of Europe, banning Russia to assist Belarus (meaning the resolution No. 1455 (2005) of the Council of Europe on the situation in the Russian Federation). According to him, such a decision is an undisguised interference into domestic affairs of both Belarus and Russia. In this situation Belarus needs a support of the Russian Federation, claimed the CIS official. In general, Mr. Rushailo partially agreed with actions made by Uzbek President Mr. Islam Karimov who brutally dispersed public protests in his country. Calling violent dispersal caused by the necessity to protect the interests of the state , he however lamented over accidental victims among civilians but stated that President acted within the limits of his authority .

3. Economy

Belarus plans to import electric power produced in Ukraine

27-06-05 www.itar-tass.com, IA Itar-TASS reports of readiness of Belarus to import about 1.5 billion B.o.T. units of electric power produced in Ukraine. Mr. Andrei Kobyakov, Deputy Prime Minister of Belarus said that expected volume of imports would amount to 35 million USD. According too him, there has been an experiment carried out successfully in June 2005 to import electric power of the Ukrainian origin, so now the imports would be expected. In general, the official claimed that this year mutual foreign trade turnover is expected at 1.5 billion USD, while a year ago Belarus and Ukraine exchanged goods and services valued at 1.01 billion USD. BelTa (www.belta.by) also informs that foreign trade turnover of Belarus and Ukraine exceeded 584 million USD for a period between January and May 2005. During the abovementioned period, exports of Belarus to Ukraine went up by 56 per cent to achieve almost 289 million USD, allowing to reach foreign trade surplus at 24.1 million USD. Belarus mainly exports to Ukraine oil and oil products, tractors and transport vehicles, polymers, TV sets, refrigerators, synthetic fibers, wallpapers, and ceramic tiles.

More than one fourth of Belarusian enterprises make losses

27-06-05 www.afn.by, Agenstvo Finansovyih Novostei informs that by May 1, 2005 the share of loss-making enterprises reached 26.5 per cent. Overall, between January and April 2005, as much as 2,795 enterprises and organizations recorded losses. The Ministry of Statistics and Analysis reported that net losses amounted to 361.1 billion Belarusian rubles (about 168.7 million USD). In industry 35.4 per cent of enterprise made losses, while share of loss-makers in agriculture and communication sector is 11.6 and 10.9 per cent, respectively. As for other sectors of the national economy, loss-makers occupy the following shares: transport 30.8 per cent, construction 30.4 per cent, trade and catering 28.2 per cent, housing and communal services 33.7 per cent, and logistics and marketing 27 per cent.

Iranian business considers Gomel region as promising investment site

27-06-05 www.belta.by, BelTa reports of a meeting held between authorities of Oktyabrski district of Gomel region of Belarus and Iranian businessmen. The latter expressed their interest in creating joint ventures with Belarusian enterprises located in Gomel region. In particular, Iranian producers plan to set up enterprises to produce dried non-fat milk and process wood. In the words of Deputy Head of District Executive Committee, Ms. Zoya Golub, currently both parties work over the economic content of the business projects proposed for implementation .

Monthly average revenue per user of one of two major Belarusian cellular operators amounts to 11.5 USD

27-06-05 www.onliner.by, Belarusian online magazine Onliner provides readers with previously confidential data from one of the cellular operators in Belarus, Mobilnye TeleSistemyi (MTS). In the words of company s Director, Mr. Andrei Rumyantsev, monthly average revenue per user amount ton 11.5 USD, while company spends as much as 12.5 USD to attract new client. According to Mr. Rumyantsev, average user of the MTS company service talks about 420 minutes per month, which is much higher than the same indicator in Russia, amounting to 140-180 minutes. It had been explained by rather inexpensive costs of phone calls, especially within the operator s network. At the same time, company s profits are growing. In 2003, net profit amounted to 45 million USD, while in 2003 it jumped by three times to reach 138.5 million USD. It is estimated that MTS controls about 50.6 per cent of the market, while 1.6 million users are subscribed to its service.

4. Society

President of Belarus calls young people to work in Belarus and not to become small screws working in the West

26-06-05 www.tvr.by, National State Teleradio Company broadcasted reportage from a Republican Graduation Ball made at the Palace of the Republic. The President of Belarus, Mr. Alexander Lukashenko, took part in the event and delivered a speech that had been broadcasted in full. The President spoke of strong state support of young people, because it is youth that is crucial force playing the decisive role in modernizing the Belarusian economy and securing dynamic development and socio-political stability of our country . According to him, Belarusian education has gained a world-class reputation . It is because, we preserved not only the Soviet system of higher education, but also have been able to modernize it, accounting for modern challenges , explained the President of Belarus. One of the evidence is that young people of different countries of the world come to Belarus for a study at institutions of higher education , he added. Mr. Lukashenko however lamented over those many young talented people, who have been provided with excellent knowledge at home, travel abroad to search for a job . The President called upon young people not to hasten to make such ill-considered decisions since not many Belarusians have become top managers abroad. We need your brains and energy in Belarus , emphasized Mr. Lukashenko.

Private education in Belarus is nearly dying, says independent newspaper

27-06-05 www.bdg.by, newspaper Belorusskaya Delovaya Gazeta publishes an article about adverse development of private education in Belarus. It is claimed that Belarus is among the worst cases among the CIS countries in terms of development of private education. The newspaper expects that in the near future situation might become even worse because of the decision made by Belarusian authorities to impose additional tax on private educational establishments and of unnecessary close attention paid by law machinery to parents sending their kinds to private schools and universities. Currently there are only 832 pupils who study at 12 private schools and gymnasiums, while 1,264,530 pupils (or their parents) choose to go to one of 4,104 state-run institutions of general education. One of the major impediments to development of private education is high level of fees. Only 0.07 per cent of parents are able to pay 250-270 USD per month to cover private school education, while in Russia the former indicator amounts to 5 per cent. Since January 1, 2005, the government made private school subject to paying 18 per cent value-added tax on educational service, thus making conditions for their survival somewhat tougher.

President s Order makes retain trade in newspapers and magazines more complicated

27-06-05 http://baj.ru, Belarusian Association of Journalists expresses its concern over President s Order No. 285 On Some Measures to Regulate Entrepreneurial Activity . The Order changes conditions of retail trade in prints. The key difference is that traders now must switch to paying taxes in a more complex way instead of being subject to simple single-tax system. In other words, instead paying from 10 to 30 euro (from 12 to 36 USD) of taxes, an entrepreneur must pay now income tax plus a range of smaller taxes and levies. Accordingly, entrepreneurial activity of petty traders in newspapers and magazines would become more complicated as they have to conduct heavier paperwork. Belarusian Association of Journalists Center for Legal Assistance to Media considers this regulation as another attempt to establish more rigorous controls over distribution of media in Belarus. The Association also reminds of earlier measures like requests by Executive Committees of various jurisdictions to provide them with lists of periodicals that retailers sell. All these measures are intentional, and aimed at significant reduction of a number of distributors of non-state media , lawyers of the Belarusian Association of Journalists think.

Protest of a Belarusian citizen still remains unnoticed

27-06-05 www.svaboda.org, Radio Liberty Belarus reports that a citizen of Belarus, Bobruisk s townsman, Ms. Luibov Sankevich decided to stop a hunger strike he went on about 13 days ago. Ms. Sankevich has been carrying out a piquet at one of the central parks of Minsk to protest against, in her words, indifferent attitude of the authorities to her problems and against plundering of the state property and robbing of Belarusian people . In particular, protester demands to provide her a working place she left four years ago. However, Ms. Sankevich decided to stop the hunger strike because authorities did not pay any attention to this action.

Legal proceeding is instituted against head of one of the Belarusian banks

27-06-05 www.belapan.by, BelaPAN reports that Department for Finance Investigation of the Committee of State Controls has institute legal proceeding against the former Chairman of the Board f Belagroprombank , Mr. Alexander Gavrushev. In the words of representative of the Committee, he is accused in prevarication causing damage of 10.6 million Belarusian rubles (about 5,000 USD). In particular, it is claimed that Mr. Gavrushev instructed heads of bank s branches in Gomel and Grodno to cover student fees for his daughter and nephew. Although Mr. Gavrushev had been dismissed more than eight years ago by stockholders meeting, the Committee of State Controls made a decision to conduct investigation.

Pilgrimage to happen these days

27-06-05 www.svaboda.org, Radio Liberty Belarus reports of a pilgrimage to Budslav, to the National Sanctuary of the Virgin Mary. More than 200 pilgrims all over Belarus will walk over 120 kilometers and then commit a prayerful action near Budslav Catholic Church on July 1, 2005. On the next day the faithful will take part in a worship devoted to Virgin Mary of Budslav.

Major web-portal of Belarus sets new censorship rules

24-06-05 www.bybanner.com, Belarusian banner informs that administration of one of the major web portals in Belarus (www.tut.by) set up new rules of using its forums. There are new, stricter censorship rules applied to users of forums. One of the major goals is to make these forums be adequate to modern requirements , says an address of the web-portal it distributed among the users. The address stressed the fact the forums have become a public place , gathering more than 26 thousand users. Therefore, it is necessary for all of them to comply with requirements of the 21st century, law of the Republic of Belarus, and elementary decorum . Belarusian banner considers this statement as an implicit call to discuss Belarusian politics in a very polite manner and not to criticize the President and the authorities of Belarus. Earlier on, on April 18, 2005, head of the www.tut.by, Mr. Yuri Zisser called upon participants of the web-forums not to break the law of the Republic of Belarus , for instance, by insulting the President.