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WEEKLY DIGEST OF BELARUSIAN NEWS

October 21, 2005

 

NATIONAL NEWS

 

Belarus Sets Microeconomic Targets for 2006

 

Belarus plans to restrict inflation to 7-9 percent in 2006, down from 10 percent in 2005, and to 2-4 percent by 2010; besides, Belarus’ GDP is to grow 7-8 percent in 2006, down from the 9-9.3 percent growth target set for 2005, and 50 percent in 2006-2010. The figures are included in the preliminary economic development forecast prepared by the Government and the National Bank of Belarus (NBB).

 

The draft forecast of social and economic development, draft state budget and draft monetary guidelines for 2006 were considered at the meeting headed by the President of Belarus Alexander Lukashenko last Wednesday.

 

Industrial output is to rise by 6.5-7.5 percent in 2006, agricultural output is to increase by 6-7 percent, capital investments are expected to hike by 13-14 percent. Banks’ investments are to reach 3.6-3.7 trillion Belarusian rubles (Br), including 2.3 trillion ruble investments in the real sector of economy.

 

Budget volume is to reach 33.6 trillion Belarusian rubles in 2006, up by 17 percent on the target for 2005.

 

Exports are expected to rise faster than imports next year. The government expects to provide a stable foreign trade surplus in 2006-2010.

 

Salaries are to average the equivalent of $300 by 2007 and $500 by 2011. The average salary now stands at $208.

 

The share of lower-income population is expected to halve by 2011.

 

Economic expansion is expected owing to a large-scale upgrade. The strategic priority of the Belarusian economy is innovation, scientific and technical potential of Belarus is to become the key driving force of economic growth.

 

Other priorities include exports, agribusiness, and social revival of villages, energy- and resource-saving.

 

Note: Br 2,151 – $1.

 

 

Belarus Sees Rise in Exports between 55-80 Percent in 2006-2010

 

Belarus plans to increase exports by 55-80 percent in 2006-2010 to $28.7-33.2 billion and provide a stable trade surplus.

 

The target is included in the National export development program for 2006-2010 approved by the Belarusian government on September 30, 2005. The program includes the basic forecast with a 55 percent rise in exports to $28.7 billion by 2010, of them commodity exports at $25.2 billion, and an optimistic forecast with an 80 percent rise in Belarus’ exports to $33.2 billion, including commodity exports at $29.2 billion.

 

The optimistic variant is based on the possibility of more favorable conditions on foreign markets, especially in 2006-2007.

 

Belarus also plans to increase the share of high-tech products to 37 percent of total exports from the current 19 percent. The program allows for Belarus’ accession to the World Trade Organization (WTO), obligations to WTO member countries and simplified access to foreign markets.

 

 

Belarus Bans Advertisement of Tobacco During Social, Cultural and Sports Events

 

President of Belarus Alexander Lukashenko has signed decree to ban advertisement of tobacco goods during social, cultural and sporting events.

 

The measure is to discourage smoking and promote healthy lifestyles.

 

 

Belarus Increases Its Foreign Assets

 

The net foreign assets of the Belarusian government and National Bank of Belarus (NBB) amounted to $1.364 billion as of October 1, up by 3.8 percent in September.

 

Belarus’ net foreign assets rose by 58.1 percent from January 1, 2005.

 

In 2004 Belarus’ net foreign assets rose by 43.5 percent to $862.8 million. In March, the NBB recalculated net foreign assets starting January 1, 2004, accounting monetary gold at the market price instead of the acquisition price.

 

 

INTERNATIONAL COOPERATION

 

Belarus Supports UNESCO Convention on Cultural Diversity

 

The Republic of Belarus voted on October 21, 2005 for the adoption of the UNESCO Convention on cultural diversity. The Convention was approved by the majority of UNESCO Member States: 148 of them supported the Convention.

 

The United States was one of two countries opposing a new convention on cultural diversity.

 

The General Conference of UNESCO approved on October 21, 2005 the Convention on the Protection and Promotion of the Diversity of Cultural Expressions, as a result of a long process of maturation and two years of intense negotiations.

 

The Convention reinforces the idea already included in the UNESCO Universal Declaration on Cultural Diversity, unanimously adopted in 2001, that cultural diversity must be considered as a "common heritage of humanity", and its "defense as an ethical imperative, inseparable from respect for human dignity."

 

The Convention seeks to reaffirm the links between culture, development and dialogue and to create an innovative platform for international cultural cooperation. It reaffirms the sovereign right of States to elaborate cultural policies with a view "to protect and promote the diversity of cultural expressions" and "to create the conditions for cultures to flourish and to freely interact in a mutually beneficial manner".

 

The Convention also envisages the rights and obligations of Parties to include a series of policies and measures aimed at protecting and promoting the diversity of cultural expressions, approaching creativity and all it implies in the context of globalization, where diverse expressions are circulated and made accessible to all via cultural goods and services.

 

To promote and cooperate internationally, especially in the case of developing countries, the Convention determines the creation of an International Fund for Cultural Diversity.

 

 

WHO Calls Vaccination Long-Term Investment and Praises Belarus' Efforts

 

The World Health Organization (WHO) believes vaccination expenses may be called long-term investments and recognizes Belarus’ achievements in prevention of epidemics, WHO European Regional Advisor Nedret Emiroglu, told a news conference last Thursday. The conference was dedicated to the European Week of Vaccination in Belarus.

 

“Vaccination is an effective means to keep people healthy; we consider vaccination to be a long-term investment in the development of the country. We are glad Belarus has achieved so much in this sector,” she said.

 

Vaccination of thousands of people costs Belarus about $1 million, while it costs $132 to treat one patient. As for bird flue, Belarusian veterinary inspection banned imports of poultry products from the countries that were hit by the disease. Besides, the ministry adopted several regulatory documents to prevent the advance of the epidemic. Belarus has enhanced border control starting October 14, 2005 in order not to allow bird flue in Belarus.

 

 

Belarus and Ukraine to Boost Cooperation

 

Prime Minister of Ukraine Yury Yekhanurov paid official visit to Belarus last week.

 

During the visit the Prime Minister of Ukraine met with the President of Belarus Alexander Lukashenko.

 

Alexander Lukashenko stated that Belarus is satisfied with mutual relations with Ukraine even though there are some issues to be resolved. “Our countries and our peoples are very close, and we will always be ready for concessions for the sake of our future. We will always aim at mutually beneficial decisions,” the President said. The President also appreciated the trade and economic relations between the two countries. “Mutual trade has never been better. In January-September 2005 we almost reached $1.2 billion,” Alexander Lukashenko said adding that mutual trade might reach $1.5 billion in 2005.

 

In turn, Yury Yekhanurov conveyed greetings from Ukraine’s President Viktor Yuschenko to the President of Belarus and said he hoped the meeting of the two presidents would take place this year.

 

The Prime Minister of Ukraine Yury Yekhanurov also met with Prime Minister of Belarus Sergei Sidorsky.

 

Among many others, the parties discussed issues of cooperation in energy, transport and trade fields, as well as of simplified travel conditions for the staff of the Chernobyl nuclear power station in the light of the Shelter project, which Ukraine plans to launch soon, and issues regarding a preparation work for the highest level meeting.

 

After the meeting Sergei Sidorsky stated that the governments of Belarus and Ukraine plan to facilitate mutual trade to boost it to $2 billion a year and added “I believe mutual trade may reach $2 billion soon, as there are not only intentions and prospects, but also package agreements between the countries”.

 

Finance Minister of Belarus Nikolai Korbut told that Belarus hopes to settle the issue of the $134 million debt of Ukrainian companies to their Belarusian partners soon. The debt emerged as a result of the disintegration of the Soviet ruble zone in 1992. The issue was considered during the meeting of the prime-ministers. The parties agreed that the debt could be repaid by supplies of Ukrainian goods and services to Belarus.

 

During the visit the parties also signed several intergovernmental documents, including the deal on preferences for economic entities and the protocol on simplified visa regime for citizens of border areas.

 

 

Belarus and Russia to Implement Mutual Project in Pharmaceutical Industry

 

Minsk-based company Minskintercaps, the only producer of pharmaceuticals in hard and soft gelatin capsules in Belarus, and Russia’ Belgorod-based Veropharm plan to launch joint production of medicines in November.

 

Minskintercaps, established in 1996, is one of the CIS’ leading producers of pharmaceuticals. It is based in the free economic zone Minsk. It makes medicines to treat cardiovascular diseases, spasmolytics, hepatoprotectors, antihistaminic and vitamin complexes, food additives, etc.

 

The Belarusian company will be packing the pharmaceuticals developed by the Russian partner. Veropharm specializes in producing generic drugs. The company owns a certified production unit, but has no packaging facilities. The Russian producer chose Minskintercaps because of its equipment.

 

Among the major buyers of Minskintercaps products are Russia, Kazakhstan, Uzbekistan, Moldavia, Ukraine, Lithuania, Latvia, Poland and Armenia.

 

 

Belarus and China to Implement Mutual Project in Energy Field

 

A Chinese delegation discussed last week with Belarusian power engineers in Minsk the participation of the Chinese side in the upgrade of the Minsk-based power co-generation plant TETS-2 worth an estimated $60 million.

 

As for the soft loan that Belarus may receive from China to upgrade TETS-2, the contract may be signed in December during the visit of a Belarusian governmental delegation to China.

 

The Belarusian side plans to provide about a half of the required investments from the loan. The remaining investments are to be provided from the Energy Ministry’s own funds.

 

The project is part of the state program aimed to upgrade key assets of the sector, encourage energy-saving and increase the share of domestic fuels for 2006-2010.

 

 

BUSINESS AND ECONOMY

 

Belarus' Industrial Output Increased 9.7 Percent

 

Belarus’ industrial output rose by 9.7 percent in January-September 2005.

 

The increase by sectors has distributed as the follows: engineering and metalworking companies’ – by 14.6 percent, fuel sector companies – by 9.9 percent, chemical and petrochemical companies – by 4.9 percent, ferrous metallurgy companies – by 8.5 percent, construction materials companies – by 8.9 percent, and woodworking and pulp-and-paper companies – by 8 percent.

 

Belarus’ light industry’s output rose by 4.9 percent, while food industry’s output increased by 13.6 percent.

 

The profitability of sold goods amounted to 16.3 percent in January-August 2005.

 

The net profit of Belarus’ industrial companies rose by 60 percent in January-August 2005 with PPI rising by 13 percent in the period.

 

 

Belarus Communication Services Up By 37.4 Percent

 

The volume of communication services of Belarusian companies rose by 37.4 percent in January-September 2005. The rise in 2005 had been expected at 25 percent.

 

Communication services exports increased by 21.1 percent in January-August 2005 to $68.9 million, while imports amounted to $45 million, up by 4.4 percent.

 

Belarus had 3.3 million fixed-line phones as of October 1, 2005 including 0.7 million phones in the countryside. The number of phones reached 283 per 1,000 citizens.

 

 

Belarus Gas Pipeline Transportation Up By 9.6 Percent

 

Natural gas transportation through Belarus’ pipeline system rose by 9.6 percent in January-September to 45.6 billion cubic meters.

 

Russian gas transit via Belarus’ pipelines to Poland accounted for 70 percent of the total, gas transit to Ukraine and Lithuania made up 20 percent and 8 percent respectively, while gas transit to Kaliningrad Region of Russia stood at 2 percent.

 

The profitability of Belarus’ pipeline companies reached 63.2 percent in January-August 2005.

 

 

Belarus' Exports of Road Transportation Services Up By 13.8 Percent

 

Belarus’ exports of road transportation services increased by 13.8 percent in January-August 2005 to $182.2 million.

 

Of them, exports of road transportation services to non-CIS countries rose by 10.4 percent to $154.9 million, while exports to the CIS countries increased by 37.9 percent to $27.3 million, including exports to Russia worth $24.6 million, up by 36.7 percent.

 

Belarus’ total transport services exports rose by 21 percent in January-August 2005 to $792.1 million.

 

 

Wood Sales at Belarusian Mercantile Exchange Have Increased

 

According to Forestry Minister of Belarus Petr Semashko more wood is sold at the Belarusian Mercantile Exchange than ever. “We export nearly all pulpwood via the exchange now, and we plan to start exporting plank timber via the exchange soon,” Petr Semashko said.

 

At the same time, sales at the exchange account for only 4 percent of total wood sales of companies with the Forestry Ministry. “The Belarusian Mercantile Exchange started working only three months ago, and sales are insignificant now, although they are growing. Next year all our exports and most of our domestic sales will be via the exchange in order to ensure transparent prices and prevent abuse,” the Minister said.

 

According to Petr Semashko, sales at the exchange will require changes in the current rules of wood sales. “The regulations are to be corrected, as they envisage three types of sale: wholesale, auctions and direct sale for social projects. The first and the second schemes are to be switched to sales at the exchange,” the minister said.

 

According to him, in 2005 Belarus plans to export timber to $80 million, up from $61 million in 2004. Belarus exports timber to 20 countries. Germany, Poland, Russia, Finland and the U.S. are the main buyers.

 

 

MAZ to Increase Bus Production By 70 Percent in 2006

 

Minsk Automobile Plant (MAZ), Belarus plans to increase bus output by 70 percent in 2005 to 1,700 buses. MAZ is the biggest producer of haulage trucks in the CIS, controls about 35 percent of Russia' heavy truck market.

 

Next year the plant intends to produce 1,300 large buses and about 400 midibuses. MAZ wants to boost bus output to retain all its major outlets in Belarus, Russia, Ukraine and non-CIS foreign countries. In 2005 MAZ reduced supplies to foreign markets to meet domestic requirements.

 

In 2006, MAZ plans to introduce new models of buses. MAZ launched a new midibus production line in 2005. The insignificant decline in truck production that is observed now is attributed to the development of new models. In 2006 truck output is expected to rise by 5-6 percent. The plant aims at improving quality owing to new generation models.

 

 

PTS 2005 Exhibition to Host Software Forum, IT-Park Congress

 

The seventh international specialized exhibition Advance technologies and systems: IT, telecoms, security – PTS 2005, which is to be held in Belarus on November 8-11 will for the first time host a software forum Best Soft and a congress to discuss the establishment of the IT-Park in Belarus.

 

The exhibition aims not only to promote well-known companies, but also present the scientific potential of the IT sector in Belarus.

 

Some 80 IT companies are expected to present their developments at the exhibition, including organizations with the National Academy of Science, Industry Ministry and leading higher educational establishments.

 

 

CULTURE AND SOCIETY

 

Max Mirnyi, Belarus and Mikhail Yuzhny, Russia won the men’s doubles of the tennis tournament Kremlin Cup

 

Max Mirnyi of Belarus and Mikhail Yuzhny of Russia have won the men’s doubles of the Russian tennis tournament Kremlin Cup.

 

Having scored 5/1, 5/1 in the first two sets the Belarusian-Russian pair did not leave any chances for the victory to their Russian rivals Igor Andreev and Nikolai Davydenko.

 

 

National Bank Launches Memorable Coins Dedicated to City of Nesvizh

 

The National Bank of Belarus (NBB) has put into circulation new silver and copper-nickel memorable coins Farny Kostyol. Nesvizh.

 

The bank had 2,000 “proof” quality silver coins and 2,000 “proof-like” quality copper-nickel coins minted in Warsaw. A silver coin is 38.61 millimeters in diameter and contains 33.63 grams of 925 silver. The nominal value has been set at 20 Belarusian rubles (Br). A copper-nickel coin is 32 millimeters in diameter with the nominal value of 1 Belarusian ruble.

 

The head of the coin pictures a raised impression of Belarus’ State Emblem circled by a geometrical ornament. Below the image of the State Emblem is the standard of alloy (for silver coins) and mint year. The tail of the coins features an image of Farny Church in Nesvizh.

 

 


 

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