Belarus Headlines Headlines February 22—March Volume 1, Issue 3 5 March 5 Austrian bank Belarus is For Sale Inside this Issue: will invest 1.3 (Investors Be Cautious!) billion dollars rus is not ready for any foreign investment at all. Austrian Bank will In- 1 Austrian's Raiffeisen Bank Belarus remains a country vest 1.3 billion Dollars will invest the which is very inhospitable equivalent of 1.3 billion for foreign investments. dollars in Belarusian busi- According to the national ness during 2007, law, government can get Belarus is for Sale 1 a senior government offi- control over earlier privat- (Investors Be Cau- cial said on Monday. ized enterprises back any tions!) The one billion Euro sum time. will go into Belarusian That is why any “hard- banking, 2007 New Year oil and gas conflict with Lukashenko’s Followers 2 manufacturing, fund invest- driving” privatization cam- Russia could cost Aleksandr Lukashenko paign would be impossible Join the Presidential ment, and export financing, more than simply a budget deficit. Belaru- without Belarusian legisla- Race said Sergei Sidorskiy, Bela- sian Economy Ministry has prepared a tion alteration first. Under rusian Prime Minister, ac- vast program of state enterprises privati- Aleksandr Lukashenko, who zation. Talks with investors have started cording to a Belapan news holds office since 1994, US Imposes Sanctions 2 on some of enterprises. Belarus is getting wire report. privatization has a pinpoint on More Top Belaru- ready for considerable foreign loans. So character in Belarus. All sian Officials Sidorskiy made the an- why should foreign investors be cautious? large enterprises are owned nouncement after meeting 2006 was finished with a credit balance by the state. If implemented, with Patrick-John deficit of $1.663 billion, or about 4.5% of the program of Economy Butler, a Raiffeisen board GDP by Belarus. Gas price hike from Ministry would mean a radi- member, in the Belarusian cal change of economical 2 $46.7 to $100 per cubic metre and im- Belarus Cabinet's Di- capital Minsk. posing an oil duty for oil to Belarus by policy of Belarus in general. Is it possible to invest in the rective Aimed Against The prediction if accurate Russia ($53 per cubic ton) would cost Freedom of Speech - would mark the largest $2-2.5 billion for the country, Belarusian country with no future Journalists' NGO foreign economists believe. That’s why Belarusian profit guaranties? Where Economy Ministry offers to hold contests the main economic policy is: investment by a non- “You invest – But I on selling large oil refineries and chemical Strategy of United De- Russian company in Bela- (Lukashenko) and my 3 enterprises in 2007, including “Naftan” oil mocratic Forces of rus, since Belarus became pocket government, we’ll refinery, Mozyr oil refinery “Polimir”, Belarus Presented in independent in 1991. pocket all your profits!” As “Belshyna”, Grodno “Azot”, Mogilev Washington was mentioned once by the Raiffesen has operated in “Khimvolokno”. Belarus since 2002 through former Minister for External a controlling Also a possibility of converting enter- Economic Relations Mikhail Lukashenko, Dubai 3 interest in the Minsk- prises into joint-stock companies with Marinich: “To attract for- ruler discuss coopera- headquartered Priorbank. the further aim of selling to strategic eign investors, to make the tion development pros- domestic output competi- The operation largely investors largest Belarusian unitary enter- pects prises, like Minsk Automobile Plant, tive and to realize the coun- services European corpo- try’s economic potential, rate customers with busi- Beltelekom (monopolist on communica- 3 tions and Internet market), Belarusian radical modernization of BPF Youth congratu- ness in the former Soviet cement plant, Grodno tobacco factory industry, new system of lates the Police on republic. “Nyoman” is offered for consideration. A management, training of Their Professional Holi- possibility of selling state parcels of new managers, property day shares of large enterprises of food indus- rights guarantees are re- try like Minsk Plant of Sparkling wines, quired. These ideas seem Gomel fat-products industrial complex, revolutionary to the present Announcements 4 Skidzel Sugar Industrial Complex, Ha- Belarusian authorities and I radzeja Sugar Industrial Complex, doubt that they are able to Zhabinka Sugar plant. It is supposed to implement them. The issues sell 30-40% of shares of largest brewer- of investment in Belarus ies, joint stock company Krynitsa and economy have no power system and legislation re- Source: malt joint stock company Belsolad. But analysts believe that in reality the devel- main untouched.” German Press Agency opment of such a vast privatization pro- gram was rather “a panic reaction” of Source: American Trib- Economy Ministry to the consequences une February, 2007 February 23, 2007 of energy resources prices because Bela- 2 Belarus Headlines Lukashenko Followers Join President Lukashenko was re-elected to a third term last March in a vote the the Presidential Race US Imposes Sanc- United States and European Union call tions on More Top fraudulent. President Bush has called Mr. A movement willing to put forward Lukashenko Europe's last dictator. Belarus’ President Alexander Luka- Belarusian Officials Source: Reuters shenko to run for Russia’s presidency February 26, 2007 in 2008 has emerged in Russia. The key purpose of the initiative is to offer the choice to the Russians and Luka- Belarus’ Foreign Minister Sergei shenko, Telegraf.by reported referring Martynov Comments on the to Alexey Kanurin, leader of the Luka- Results of His Meeting with Di- shenko 2008 Organizing Committee. rector General of CEI Executive Secretariat Today we had a meeting with Director General of the Central European Initia- tive Executive Secretariat, Ambassador Harald Kreid. We discussed the issues of Belarus’ par- The United States has imposed economic ticipation in the Organization, and CEI sanctions against six more senior Belarusian perspectives. officials because of their crackdown on the I would like to stress that Belarus is an opposition to what the U.S. says were active participant of the Central Euro- fraudulent presidential elections last year. pean Initiative. Lukashenko is unaware of forthcoming nomination, Kanurin said. “We don’t Those named in Tuesday's Treasury Depart- We believe the Organization plays a spe- need it. Our purpose is to create the ment order include Belarus's top prosecutor, cial role in Eastern, South-Eastern and situation of having a choice, including the education and information ministers and Central Europe, and provides for ex- panded bilateral and multilateral integra- for Alexander Grigorievich. One thing a lieutenant colonel of the Minsk riot police. is a policymaker’s decision whether or tion within the “large” Europe. not to go to elections, but the all- Belarus actively participates in implemen- people decision is a different matter,” All their U.S. assets have been frozen, and tation of CEI funded projects. Kanurin explained. Policymakers, and U.S. citizens are barred from doing business Lukashenko is a successful policy- with them. Earlier sanctions were imposed We agreed to continue our cooperation, on 10 other Belarusian officials, including and shared our common interest in a maker, don’t miss such chances.” definite new perspective positioning of President Alexander Lukashenko. the Organization. Kanurin said the movement is backed The U.S. Treasury's director of foreign assets Source: Belarusian FM up both morally and financially but control, Adam Szubin, says those who com- didn’t disclose the sources, emphasiz- mit human rights abuses and political repres- March 1, 2007 ing, however, that “the Moscow City sion have no place in civil society. Hall, Gazprom or RAO UES won’t be our sponsors for sure.” “But we cer- Belarus Cabinet's Directive Aimed Against Freedom of Speech - Journalists' NGO tainly have the national support, in- cluding material and technical and financial ones," Kanurin said, pointing In what many view as a move to discourage "Take measures to disseminate objective infor- out they are ready “to double propa- government officials from contacts with inde- mation to the public, including by publishing offi- pendent media outlets, the Belarusian cabinet ganda and information flow.” cial statements, denials, etc.," the letter said. has threatened punishment against officials Zhana Litvina, chairwoman of the Belarusian As- whose comments given to the media contain sociation of Journalists, expressed fears that the "biased" or "incorrect" coverage of the coun- Under Russia’s laws, only the RF citi- directive would completely block the private me- try's economic situation. zen of at least 35 years of age, who has dia's access to first-hand government information. permanently lived in Russia for at least "I request you to ensure control over public "Apparently, this means that current processes in ten years, could become the country’s statements (interviews, articles) of civil servants the economic sphere are not manageable," she president. Russia will elect its presi- to the media, including the non-state press," told Belapan. "That's why it is the priority task of said a confidential letter signed by Deputy dent March 2, 2008. government agencies to withhold information Prime Minister Andrey Kabyakow that was sent from people, prevent them from analysing and to all governmental agencies on 22 February. Source: Kommersant discussing it." . The