WEEKLY DIGEST OF BELARUSIAN NEWS

WEEKLY DIGEST OF BELARUSIAN NEWS

October 28, 2005

NATIONAL NEWS

New State Budget Creates Conditions For Stable Economic Growth in Belarus

The 2006 budget creates conditions for the stable economic growth in Belarus.

It concerns a stable taxation system (tax burden will be eased), investments growth (budget support to branches of the economy).

Moreover, the budget’s social nature envisages keeping a high education level in the country, an increase in wages in the budget sphere. In particular some 6.4 percent of GDP will be spent on education and it is 24.3 percent more than in 2005, 4.6 percent of GDP will be allocated for the health care service, 21 percent more than in 2005, 0,53 percent of GDP will be injected in the cultural sphere, 37,6 percent more than 2005. Expenses on pursuing social policy on the whole, physical culture and sport, mass media outlets will be increased as well.

Belarusians' Real Money Income Increased by 15.6 Percent

Belarusians’ total money income rose by 15.6 percent in January-August 2005.

Of the total income, salaries accounted for 59.9 percent, up from 56.6 percent in January-August 2004. Entrepreneurial income accounted for 16.3 percent, down from 20.5 percent.

The share of social transfers rose by 22 percent, up from 21.2 percent as of the same period last year, and of property income stood at 1.8 percent, up from 1.7 percent.

Belarus’ average monthly salary amounted to $231 in August 2005, up by 21.6 percent on the year. The average monthly pension amounted in August to $88, increased by 9.1 percent on the year.

Parliament Commission Recommends Income Tax Bill Included in 2005 Autumn Session Agenda

The commission for budget, finance and tax policy of the House of Representatives, recommended including the bill on income tax for individuals in the agenda for the 2005 autumn session.

According to the head of the commission, Sergei Kiselyov, the bill may be considered in early November.

The final version of the bill has it that economic profit (revenues from insurance contracts, shares in charter capitals and operations with securities) will not be subject to income tax.

The bill provides for exemption from income tax on the property that has been used for more than five years.

The bill introduces the principle of residence in determining the people subject to payment of the income tax. Those staying in Belarus for more than 183 days and recognized as tax residents of the country will have to pay taxes from the incomes received both in Belarus and abroad. Those individuals that are not recognized as tax residents are to pay taxes only from incomes in Belarus.

Interior Ministry of Belarus Plans to Launch New Passports

Belarus plans to launch new passports within two years, the first deputy head of the department for migration and citizenship of the Interior Ministry, Alexei Begun, told an Internet-conference last Thursday.

It is planned to introduce an internal identification card and passport for foreign trips, Mr. Begun said.

According to him, the fact that the government decided against canceling the current stamp for foreign trips is due to insufficient development of control systems. “Within two years we plan to develop an automated system to control border crossing by Belarusians and introduce it in all checkpoints,” the specialist said. Besides, it will take two years to draft a new version of the law regulating entrance to Belarus and foreign trips, and switch to new passports.

It is planned to cancel the stamp of domicile and to introduce a procedure of registration on the basis of part-time residence. The passport will have a registration in local internal affairs agencies instead of a domicile stamp in order to simplify residential registration.

According to Mr. Begun, if the new system is approved by the government, companies will not have to pay for hiring non-residents.

INTERNATIONAL COOPERATION

UNO Supports Belarus Initiated Weapons of Mass Destruction Resolution

Representatives of 150 countries, including the EU member states, voted in favor of the international resolution banning the development and production of weapons of mass destruction presented in the UN General Assembly on October 24, 2005.

The idea of the resolution came from Belarus. The company-authors are Armenia, Azerbaijan, Bangladesh, Venezuela, Georgia, Indonesia, Kazakhstan, Kyrgyzstan, China, Russia, Tajikistan, Ukraine and the Central African Republic.

Chief of the International Security and Armaments Control Department of the Belarus' Foreign Ministry Alexander Baichorov delivered a speech during the sitting of the General Assembly’s First Committee. In his words, the present level of development of science and technology offers a wide range of WMD-making methods. It is necessary to enhance control over such technologies, since the weapons of mass destruction can easily get to the hands of terrorists.

Belarus Intends to Join IOM

Belarus intends to become a full-fledged member of the International Organization for Migration (IOM). On October 27, 2005 the National Assembly of Belarus approved a draft law on ratifying the constitution of IOM.

Since 1994 Belarus had been an observer in the organization. In 1996 an IOM representative office opened in Minsk. The accession of Belarus to IOM will prove that Belarus pursues a comprehensive policy to protect the rights of migrants and refugees.

EBRD Purchases Equity Issue of OLIVARIA Brewery, Belarus

The European Bank for Reconstruction and Development (EBRD) has purchased an additional equity issue of Belarus’ open joint-stock company Brewery Olivaria and now controls 30 percent in the company.

Olivaria’s priorities are to build new warehouses and extend the bottling capacity. Besides, the brewery plans to develop its sales network in Belarus.

In July 2005 the Board of Directors of the EBRD approved the financing via the provision of a loan and equity investment for an amount not exceeding U.S. $8 million of a modernization and capacity extension project at Olivaria. The project costs $12.3 million.

In the fourth quarter of 2005 the company plans to receive HACCP certificate and in early 2006 to upgrade production standards toward ISO-9000 quality management system.

Belarus and China Interested in Strategic Cooperation

Belarus and China are interested in strategic cooperation on a bilateral basis and within the framework of international organizations, the Head of the Administration of the President of Belarus Viktor Sheiman and First Deputy Foreign Minister of China Dai Bingguo stated.

The visit of Head of the Administration of the President of Belarus Viktor Sheiman to China took place last week. During the visit the leader of the Belarusian delegation held talks and working meetings with the member of the Political Bureau of CPC Central Committee, Chief of the CPC Central Committee international department, Deputy Chief of the CPC Central Committee organizational department, Deputy Chief of the CPC Central Committee propaganda department, First Deputy Foreign Minister of the PRC Dai Bingguo.

The issues of the personnel and youth policy, state construction, the role of the party organizations in public life were discussed during the meeting with the Deputy Chief of the CPC Central Committee organizational department.

Belarus to Render Aid to Pakistan

Belarus is going to render humanitarian aid to Pakistan, the Belarusian Emergency Minister Enver Bariyev informed.

Belarus is planning to send to Pakistan blankets, tents, canned meat, water, and medicines, all worth around $200,000. $200,000 more will have to be paid for transportation of the humanitarian cargo.

He specified, that the cargo would be carried to Moscow by rail. Later, jets belonging to the Russian Emergency Ministry will carry it to Pakistan.

Belarus Is Interested In Foreign Aid to Prevent Arrival of Bird Flu

Belarus is interested in international assistance in order not to allow bird flu in Belarus. Due to its location the country is running a high risk of importing the virus from neighboring countries. Belarus is inexperienced in bird flu prevention and is interested in technical, advisory and even financial assistance from the international community to carry out preventive measures and equip sanitary teams.

As of today Belarus has no bird flu cases, but the virus can get to Belarus from Russia or some European countries, where bird flu cases have been registered.

Last week-end Belarus carried out an exercise in the national airport to coordinate the actions of all services, from the quarantine service to the police. Belarus has worked out a plan of actions to establish due control both on Belarus’ state borders and domestic market in order to prevent unsanctioned imports. Belarus’ domestic poultry factories are subject to close control, but additional sanitary monitoring measures have been taken.

Belarusbank and ExImBank, Slovakia, Sign Cooperation Agreement

Belarus’ largest commercial bank, Belarusbank, and Slovakia’s export-import bank ExImbank signed a cooperation agreement during a meeting of the Belarusian-Slovakian commission for economic, scientific and technical cooperation in Bratislava on October 20-21, 2005.

This was a framework agreement, and a loan agreement is expected to follow. ExImbank plans to open a credit line to finance exports of Slovakian companies to Belarus.

Besides, the Belarusian-Slovakian commission signed a standardization agreement. Belarus and Slovakia plan to sign bilateral agreements in tourism, agriculture and science in the near future.

Universities of Gomel, Belarus and Texas, USA Sign Cooperation Agreement

The delegation of the health sciences center of Texas Tech University, USA headed by Prof. Bonna Benjamin paid a visit to the City of Gomel, Belarus last week. On October 25, 2005 the Texas Tech University and Gomel State Medical University signed cooperation agreement.

Prof. Benjamin informed that this is one of the stages of the many-year cooperation between Gomel and Texas universities. The agreement covers almost all areas of medicine and will create the basis to implement concrete research programs in surgery and pediatrics, to organize probation courses of professors and students and to exchange educational programs. The leader of the American delegation did not rule out that after detailed studying of the post-Chernobyl medical problems this issue might be in the focus of joint research.

Prof. Benjamin added that while discussing beforehand the areas of cooperation the sides viewed the possibility to include Texas Tech University into the project “Telemedicine” of Gomel Medical University which unites several universities of Belarus, Japan and Scotland.

During the two-day visit in Gomel the delegation of Texas Tech University health sciences center visited the region infections hospital and regional cardiosurgery center. Representatives of the university gave lectures for Gomel doctors and students.

BUSINESS AND ECONOMY

Belarus' Retail Turnover Up By 19.8 Percent

Belarus’ retail turnover, including the public catering sector, went up by 19.8 percent in January-September 2005. The rise was projected at 13 percent in the period.

Retail sales increased by 20.1 percent in January-September, while catering companies’ sales rose by 14.6 percent.

The share of private companies in the total retail turnover was at 81.6 percent, state companies 16 percent, and the share of foreign companies stood at 2.4 percent.

Belarus' Investments in Fixed Capital and Construction Up By 23.3 Percent

Belarus’ investments in fixed capital and construction increased by 23.3 percent in January-September 2005.

Of the total amount of investments, industrial projects up by 24.8 percent, while investments in social projects up by 20.2 percent.

Investments in industry rose by 16.6 percent, in agriculture increased by 8.6 percent, in transport rose by 16.9 percent, in trade and public catering went up by 12 percent, and in communication increased by 12.7 percent.

Belarus’ dwelling output in the period reached 2.878 million square meters, up by 10.1 percent.

In 2005 capital investments are expected to increase by 17.5 percent.

Belarusian Companies Currency Revenues Up By 30.8 Percent

Belarusian companies’ foreign currency revenues rose by 30.8 percent in January-September 2005 to $11.886 billion.

Of the total amount, commodities export revenues rose by 31.6 percent in the period to $10.445 billion, services export revenues rose by 20.6 percent to $1.272 billion, while domestic trade currency revenues rose by 78.6 percent to $166.3 million.

Companies’ currency revenues from CIS countries rose by 18.5 percent to $5.589 billion, including revenues from Russia at $4.8 billion, up by 13.8 percent. Belarusian companies’ currency revenues from non-CIS countries went up by 44.1 percent to $6.296 billion.

BMZ Sees Output Up By $5 Billion A Year By 2025

Belarusian Metal Plant (BMZ) intends to increase its output to $4.5-5 billion in 2025 from the expected $1 billion in 2005, the general director of BMZ, Nikolai Andrianov, told a news conference last Monday.

Investments in primary production are expected to reach $300-350 million within four years. Most of them will be in hardware production, upgrade of smelting furnaces, casting machines and rolling mills. Besides, $208 million will be invested in pipe rolling,” Andrianov said.

In 2006 BMZ plans to complete the upgrade of mill-150, which will boost its capacity by 50 percent. The upgrade is carried out by U.S.’ Morgan and is financed from an interest-free loan from one of UK’s largest traders of BMZ, Stemcor.

Today, BMZ controls 10 percent of the world cord market and 25 percent of the world output of wire for high-pressure hoses.

Belarus' Wood-Working Company Pinskdrev JSC Celebrates 125th Anniversary

Pinskdrev JSC is the oldest Belarusian wood-working company celebrated this September its 125th anniversary. The enterprise has a reputation to live up to. It has launched a laminated chipboard line and set up production of kitchen furniture and wardrobes, using the latest equipment. 80 percent of its machinery has been supplied by leading international manufacturers already but the company continues to modernize its timber mill; it aims to raise capacity to 100 thousand square metres of lumber a year. New technology and an extended distribution network have allowed the company to considerably expand its exports.

Over the last five years, Pinskdrev JSC has raised its exports by 140 percent and now supplies more than 30 countries including practically the entire European market. Pinsk plywood, sofas, chairs and chipboard is in stable demand in the Western market. Furniture exports to distant countries account for 40 percent of their sales. This year, the company expects to extend furniture supplies by at least 50 percent as they enter new markets in the UK, Holland and Spain. So far this year, Pinskdrev has exported $31.2 million of goods almost 25 percent more than in the same period last year. Pinskdrev is unique in dealing with timber and finished furnishings. It was the first in Belarus wood-working industry to gain the ISO 9001.

CULTURE AND SOCIETY

Belarus Confirms Its High-Tech Status and Contributes in Mankind Heritage

Antique marbles and frescoes from the Parthenon have been restored using a laser unit designed for the purpose by the Stepanov Institute of Physics at the Belarusian National Academy of Sciences. Greece financed the project carried out by the International Science and Technology Center after tests performed in Greece showed that laser cleaning was effective. The laser is able to remove dirt effectively and safely. After the portable laser system was tested by the Institute of Electronic Structure and Laser at Heraklion on Crete, Greek experts decided it was twice as good, half as heavy and smaller than any other. In addition, its ability to clean sediment from marble, wood and metal, textiles and paintings is superior to many of its rivals.

The Minsk Princess Hotel Offer Top Service to Its Clients Soon

The Minsk Princess Hotel located near the Dynamo stadium has been having renovations since 2001 and is considered to be of architectural beauty. Irada JSC has been working on the Minsk Princess Hotel (part of the international Princess chain) after winning the tender; it has been working jointly with other enterprises as a contractor.

The project should be finished by the end of 2006; internal work is now is full swing. The hotel’s facilities will include a first floor cafe, a casino and a restaurant. Rooms will be located on the second floor through to the fifth floor along with a conference hall. A large restaurant, a banquet hall and a night club are planned for the sixth floor to have a glass wall so that visitors may admire a panoramic view of the city. A glass oval cupola will cover the central part of the building overlooking the corner of two streets. This is the first such elaborate design in Minsk and the hotel is to have one hundred single and double rooms as well as two presidential (dual level) apartments.

Winter sportswear for Belarusian Olympians participating in the Games in Turin approved

"The designers decided to continue with the theme of nature,” says Vladimir Bulgakov, project manager designer. “We have used the autumn colors of the Belovezhskaya Pushcha beige and auburn and, in 2006, these colors are likely to be the most fashionable."

Red and green scarves are also being used (Belarus national colors) and Belarusian ornamental pattern will decorate tracksuits. Woolen and union cloths were used for making the outfits and hats will be made of sheared mink. Particular attention has been paid to the exterior and interior decoration; it is both warm and functional.

National Bank Launches Memorable Coins Dedicated to the City of Volkovysk

The National Bank of Belarus (NBB) put into circulation on October 31 new silver and copper-nickel memorable coins dedicated to the City of Volkovysk.

The bank had 2,000 “proof” quality silver coins and 2,000 “proof-like” quality copper-nickel coins minted in Warsaw, Poland.

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 the emblem of the city of Volkovysk. In the middle of the coin there is an inscription “1000 year”, and below there is a panorama of the city.

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