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WEEKLY DIGEST OF BELARUSIAN NEWS

June 16, 2005

NATIONAL NEWS

President Wants State Authorities to Redouble Anti-Corruption Efforts 

President of Belarus Alexander Lukashenko asked the Office of the Prosecutor General and other law enforcement agencies to increase efforts to combat corruption. The president wants all preconditions for corruption eliminated. 

According to Prosecutor General Piotr Miklashevich, who met with the president, law-enforcers detected 2,242 corruption cases in January-May, 2005 that inflicted 9 billion ruble (Br) losses.

Belarus Is Ready to Cooperate with USA to Combat Human Trafficking 

The Ministry of Foreign Affairs of Belarus declares readiness to cooperate with the USA to combat human trafficking. “We continue to believe that only joint efforts can effectively combat this evil”, Deputy Head of the Information Department of the MFA of Belarus Ruslan Esin stated. 

The Belarusian Foreign Ministry notes an elaborate and constructive approach of the USA in its assessment of the last year’s efforts of the Belarusian Government to counteract human trafficking. 

Ruslan Esin reminded that the report of the US State Department on human trafficking was officially presented in Washington on June 3. It emphasizes that the Belarusian Government “continues enhancing measures” in the area.

When drafting the report the US side used the official information provided by the state agencies of Belarus. 

The House of Representatives Passes Bill on State Support of Innovation Activity

The House of Representatives (lower chamber of parliament), passed the bill on state support and guarantees of innovation activity.

“The bill includes venture financing provisions, that is long-term financing of innovation projects through purchases of shares of high-tech companies,” said Vladimir Zdanovich, Chairman of the Commission for Education, Culture, Science and Technologies.

The bill introduces basics of innovation activities in the production, scientific and technical sectors, supports innovation activity entities, and defines principles of state innovation policy, forms and conditions of provision of guarantees.

Among the measures of innovation support activities are loans, tax preferences provided within three years of the creation of innovation organizations and customs preferences on imports of equipment that is not produced in Belarus.

 

INTERNATIONAL COOPERATION

Belarus Urges WB to Complete Country Economic Memorandum

The Belarusian Government is interested in the completion of the Country Economic Memorandum (CEM) for Belarus by the World Bank (WB) as soon as possible, Deputy Prime Ministers Andrei Kobyakov said at the meeting with WB Executive Director Gino Alzetta. 

“The work on the CEM is close to completion, and we hope the opinion of Belarusian specialists will be taken into account when the final version is drafted,” Kobyakov said.

Belarus appreciates WB’s Chernobyl project. The Belarusian side approved the gasification and heat and power networks parts of the project. “These directions meet our national interests,” Kobyakov said.

The World Bank (WB) may also start financing the Chernobyl project from January 2006, Head of the WB Office in Belarus, Vadim Voronin said.

“We plan to provide a U.S. $50 million co-financing loan. Then the amount of the loan may be increased,” Voronin said, adding that the final sum is to be defined after talks with the Belarusian Government.

The loan is to be issued for 20 years. The Chernobyl project was designed to work in four sectors, including agriculture, provision of quality water supply in the affected areas, communal heat supply and development of forestry.

Belarusian companies are expected to be involved in the project.

Belarus to Sign Bilateral Protocols on WTO Accession Commitments Soon

In the near future Belarus plans to sign bilateral protocols with China, India, Cuba, Moldova and Kyrgyzstan on commitments to open its domestic market after it accedes to the World Trade Organization (WTO).

The meeting of the WTO working group for Belarus’ accession was held in Geneva at the end of May, 2005. The Belarusian delegation was headed by Deputy Prime Minister Andrei Kobyakov. The participants considered the second version of the Factual Summary on Belarus’ foreign trade regime and its conformity with WTO requirements.

“We have created all conditions to complete the accession talks with half of the WTO member states that were interested in tariff policy negotiations with Belarus’,” Deputy Minister of Foreign Affairs Alexander Mikhnevich said.

The next meeting of the working group is to be held in fall of 2005.

Belarus May Ratify Kyoto Protocol by the End of 2005

Belarus may ratify the Kyoto Protocol of the UN Framework Convention of Climate Change (UNFCCC) by the end of 2005, Alexander Apatsky, Deputy Natural Resources and Environment Protection Minister, said. 

A joint meeting of boards of relevant ministries for the Kyoto Protocol accession is to be held in the near future. Later on the document, which justifies the importance of joining the protocol, will be submitted to the government and a presidential decree on joining the Kyoto Protocol will be drafted.

The Kyoto Protocol, which aims to slow down global warming, came into effect on February 16, 2005 for 128 countries. The document demands a 5.2% cut in greenhouse gas emissions from the industrialized world as a whole, by 2012. Each country has been set its own individual targets according to its pollution levels. 

After Belarus joins the Kyoto Protocol, the country hopes the greenhouse limitations will be set at the 1990 level. Belarus’ current СО2 emission stands at 50-55 million tonnes, or 41-45% of the 1990 level of 120.46 million tonnes. This is attributed to the fact that since 1995 the country’s economy has done without additional fuel and energy resources to develop.

 

BUSINESS AND ECONOMY

Belarusian GDP up by 8.9% in Jan-May, 2005 

Belarusian GDP increased by 8.9% to 20.833 trillion Belarusian rubles (Br), the Ministry Statistics reported.

Industrial output in January-May amounted to 23.507 trillion Belarusian rubles, up by 10.6%.

Agriculture output made 2.352 trillion Belarusian rubles, (11.1%).

The Belarusian Government set the GDP growth target at 8.5-10% for 2005, industrial output at 8-9.5%, agriculture output at 8-9.5%.

(Br 2,150 – U.S. $1)

In January-March 2005 Investments into Economy of Belarus Grow by 29 per cent and Make USD 389.9 million 

In January-March 2005 investments into the economy of Belarus (apart from banks) made USD 389,9 million including direct investments, USD 130 million; others, USD 260 million. 

The volume of investments increased by more than 29% in comparison the same level of 2004. Investments from the countries, where the Belarusian embassies established, accounted for USD 379.3 million or 97 per cent of the total number of foreign investments. 

Certain regions also show positive dynamics of making investments in the economy of Belarus. For instance, the share of the CIS member-states (Russia, Kazakhstan and Ukraine) accounted for 31 per cent of the total number of investments. Russia takes a dominating position in this group (USD 119.9 million or 181 per cent to the January-March level of 2004). 

The non CIS countries account for 69% of the total investment. Major investments during this period has came from the countries of Europe (over USD 230 million, or 112.5 per cent onto January-March 2004) and America (over USD 19 million, or 136.6 per cent).

The biggest investors include Switzerland (USD 70.3 million or 18% of the total investments), Austria (USD 52.5 million, or 13,5 per cent), Netherlands (USD 26.8 million, or 6.9 per cent), Cyprus (USD 22.7 million, or 5.8 per cent) and the USA (USD 17.9 million or 4.6 per cent).

In 2004 major investors were Switzerland (33.8 per cent), Great Britain (9.5 per cent), the USA (4.2 per cent), Germany (4.1 per cent), Austria (3.5 per cent), and Latvia (3.1 per cent).

Minsk to Host Foreign Economic Activity Forum June 21-23

Annual meting on foreign economic activity will be held in Minsk an on June 21-23, 2005. Leading exporters and economic counselors of Belarusian embassies and trade promotion offices abroad will participate in the forum.

In order to consider ways to boost exports of Belarusian producers and to attraction of foreign investments economic counselors are expected to meet with representatives of relevant ministries – Ministry of Industry, Economy, Finance and Transport and exporters.

Besides, the Belarusian Chamber of Commerce and Industry plans to organize a contact meting to establish direct contacts between embassies and Belarusian companies interested in foreign markets.
Belarus expects increase of the exports by 11-12% in 2005, while the rise of imports, by 9-10%.

In January-April 2005, exports from Belarus rose by 22.4% and reached $4.788 billion Br. At the same period Belarusian imports increased by 1.3% and reached $4.307 billion. 

CULTURE AND SOCIETY

President of Belarus Submits Draft New Traffic Rules for Nationwide Discussion 

A draft of new traffic rules will be submitted for nationwide discussion as the document affects the absolute majority of residents of Belarus.

Every resident of Belarus should have an opportunity to express his opinion, remarks and proposals concerning this document. This is why in the near future the new rules will be published in the nationwide newspapers and those, who wish, will be able to make their contribution to drawing up this draft legal act. 

The document is in line with the present day requirements and provides well-balanced traffic rules. The document makes note of the international experience, specialists’ opinion and opinion of the drivers. 
The work on new traffic rules started at the end of 2004 because many current laws are out of date. On the other hand, the previous documents did not allow for the modern trends such as the use of mobile phones by the drivers and others. 

Cardiac Surgeons Undertake Noble Mission (by the Minsk Times) 

Foreign cardiac surgeons start operating on children in the newly opened Republican Children’s Cardiac Center: 

“No other countries involved in the Children’s Heart charity have such facilities,” says American professor, William Novick, head of the international team of doctors. 

“Now we can perform the most complicated operations.” During their eighth visit to Belarus, the foreign cardiac surgeons - working jointly with their Belarusian counterparts – Intend to operate on 20 children suffering from chronic heart disease. According to Igor Adzerikho, director of the Cardiology Republican Center of Research and Practice, Belarus lacks highly qualified children’s cardiac surgeons; joint operations with experts, like William Novick, provide experience to Belarusian medics. 

At present, about 3,500 children need heart operations. Before the children’s cardiac center was opened, only 300 sick children received operations in Belarus annually. Now the new center has been set up, the number of surgeries should double or even triple. From this year, the Belarusian Children’s Fund, who communicates with the Children’s Heart charity, will also organize post operative rehabilitation. 


 

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