OFFICIAL NAME:
Republic of Belarus

Geography
Area: 207,600 sq. km. (80,100 sq. mi.); slightly smaller than Kansas.
Cities: Capital--Minsk.
Terrain: Landlocked, low-lying with thick forests, flat marshes and fields.
Climate: Cold winters, cool and moist summers, transitional between continental and maritime.

People
Nationality: Noun--Belarusian(s). Adjective--Belarusian.
Population (end of 2003): 9,849,000. Men 4,610,000; women 5,239,000. Urban 71.5%; rural 28.5%.
Population decline (2003): -54,700.
Ethnic groups: Belarusian (81.2%), Russian (11.4%), Polish, Ukrainian, other (7.4%).
Religions
(1997 est.): Eastern Orthodox 80%, other (including Roman Catholic,
Greek Catholic, Protestant, Autocephalous Orthodox, Jewish, and Muslim)
20%.
Languages: Belarusian and Russian (official).
Education: Literacy--98%.
Health: Infant mortality rate (2003)--7.7/1,000. Life expectancy (2002)--67.9 years.
Work force (4.4 million): Industry--26.2%; agriculture and forestry--11.1%; construction--7.1%; transportation, communications--8.1%; trade, catering--13.7%; health services, sports, social services--7.6%; education--11%; other--15.2%.

Government
Type: Republic.
Constitution:
March 30, 1994; revision by unrecognized national referendum of
November 24, 1996, gave presidency greatly expanded powers and became
effective November 27, 1996.
Independence: 1991 (from Soviet Union).
Branches: Executive--president (head of state), prime minister (head of government), Council of Ministers (cabinet). Legislative--bicameral: the House of Representatives (110 deputies) and the Council of the Republic (64 deputies). Judicial--Supreme Court; Constitutional Court.
Administrative subdivisions: Six voblasts (regions) and one municipality.
Political
parties: Belarus has 18 registered political parties, including:
Agrarian Party (AP); Belarusian Communist Party (KPB); Green Party;
Belarusian Labor Party; Belarusian Social and Sports Party; Belarusian
Patriotic Movement (BPR); Belarusian Popular Front (BNF); Belarusian
Social-Democrat Party (BSDP); Social-Democratic Hramada Party;
Belarusian Socialist Party; United Civic Party (UCP); Liberal
Democratic Party (LDBP); Party of Communists Belarusian (PKB); Party of
Popular Accord; Republican Party of Labor and Justice (RPPS); Social
Democratic Party of Popular Accord (PPA); Women's Party Nadezhda.
Several of these parties exist in name only. Other, unregistered
parties are also active, such as: Christian Conservative Party and
Party of Freedom and Progress.
Suffrage: Universal at age 18.

Economy
GDP (2003 est.): $17.5 billion.
GDP growth rate (2003): 6.8%.
Per capita GDP (2003): $1,765.
Natural resources: Forest land, peat deposits, small amounts of oil and natural gas.
Agriculture: Products--grain, potatoes, vegetables, flax, beef, milk.
Industry: Types--machinery and transport equipment, chemical products, fabrics, and consumer goods.
Trade (2003): Exports--$10.0 billion (machinery and transport equipment, chemicals, foodstuffs, metals, and textiles). Major markets--Russia,
Latvia, Great Britain, Germany, Netherlands, Poland, Ukraine,
Lithuania. Imports--$11.5 billion (mineral products, machinery and
equipment, metals, chemicals, foodstuffs). Major suppliers--Russia, Germany, Ukraine, Poland, Italy, Lithuania.
Exchange rate (June 2004): 2,157.76 BYR (Belarusian rubles)=U.S. $1.

HISTORICAL HIGHLIGHTS
While
archeological evidence points to settlement in today's Belarus at least
10,000 years ago, recorded history begins with settlement by Baltic and
Slavic tribes in the early centuries A.D. With distinctive features by
the ninth century, the emerging Belarusian state was then absorbed by
Kievan Rus' in the 9th century. Belarus was later an integral part of
what was called Litva, which included today's Belarus as well as
today's Lithuania. Belarus was the birthplace of the Grand Duchy of
Lithuania. Belarusian was the state language of the Grand Duchy until
1697, in part owing to the strong flowering of Belarusian culture
during the Renaissance through the works of leading Belarusian
humanists such as Frantzisk Skaryna. Belarus was the site of the Union
of Brest in 1597, which created the Greek Catholic Church, for long the
majority church in Belarus until suppressed by the Russian empire, and
the birthplace of Thaddeus Kosciuszko, who played a key role in the
American Revolution. Occupied by the Russian empire from the end of the
18th century until 1918, Belarus declared its short-lived National
Republic on March 25, 1918, only to be forcibly absorbed by the
Bolsheviks into what became the Soviet Union (U.S.S.R.). Suffering
massive population losses under Soviet leader Josif Stalin and the
German Nazi occupation, Belarus was retaken by the Soviets in 1944. It
declared its sovereignty on July 27, 1990, and independence from the
Soviet Union on August 25, 1991. It has been run by the authoritarian
Alexander Lukashenko since 1994.

GOVERNMENT AND POLITICAL CONDITIONS
Since
his election in July 1994 to a 5-year term as the country's first
President, Alexander Lukashenko has consolidated power steadily in the
executive branch through authoritarian means. He used a non-democratic
November 1996 referendum to amend the 1994 constitution in order to
broaden his powers and illegally extend his term in office; and he
began to count his 5-year term in 1996, thereby adding 2 years to
his first term in office. The new constitution has a popularly elected
president who serves a 5-year term. The bicameral parliament consists
of the 64-seat Council of the Republic and the 110-seat Chamber of
Representatives. The Council of the Republic is the house of
territorial representation. Eight members of the Council are appointed
directly by the president of the Republic of Belarus, while local
regional councils elect the rest. The deputies to the House of
Representatives are elected directly by the voters. The president
appoints the prime minister, who is the head of government.

In October 2000, parliamentary elections
occurred for the first time since the disputed referendum of 1996.
According to the Organization for Security and Cooperation in Europe's
Office for Democratic Institutions and Human Rights (OSCE/ODIHR),
these elections failed to meet international standards for democratic
elections. In particular the elections fell far short of meeting the
minimum commitments for free, fair, equal, accountable, and transparent
elections. Following on from the flawed parliamentary elections, and
based on the unrecognized 1996 constitution, Lukashenko announced early
in 2001 that presidential elections would be held. International
monitors noted sweeping human rights violations and nondemocratic
practices throughout the election period, including massive
vote-counting fraud. These irregularities led the OSCE/ODIHR to find
that these elections also failed to meet Belarus’ OSCE commitments for
democratic elections. March 2003 local elections also failed to meet
international standards of freedom and fairness.

Lukashenko called a
referendum in October 2004 on constitutional changes to remove term
limits for the presidency and allow him to run again in 2006. According
to official results, the referendum passed by a wide margin, and
Lukashenko allies won across-the-board victories in simultaneous
parliamentary elections. OSCE/ODIHR observers declared that the
parliamentary elections fell far short of international standards,
citing abuses in the campaign period and the vote counting. The
referendum was also conducted with little regard for democratic
principles. Independent exit polling showed results far different from
those officially announced.

Government restrictions on
freedom of speech and the press, peaceful assembly, and religions
continued in 2003 and 2004. Efforts to further infringe upon press
freedoms included the continued use of libel laws, limitations on
foreign funding, pressure on businesses not to advertise with
independent media, limitations on access to newsprint and printing
presses, censorship, restrictions on the import of media-related
materials, temporary suspension of independent and opposition
periodicals, and detention of those distributing such material. The
government continued to make use of its monopoly on television
broadcasting to present biased news coverage and to minimize the
presentation of opposing points of view. On September 9, 2003 President
Lukashenko called upon mass media to be used as an instrument for
promoting a pro-government state ideology. Additionally, although
several Internet service providers have emerged in Belarus, they are
all state-controlled. Despite constitutional provisions, a 1998
government decree limited citizens’ rights to express their own
opinions. The 1994 and 1996 constitutions both provide for freedom of
peaceful assembly; however, the regime severely restricts this right in
practice. Demonstrations require an application at least 15 days in
advance of the event. The local government must respond positively or
negatively at least 5 days prior to the event. Following many
unsanctioned demonstrations, police and other security officials
detain, harass, and beat demonstration participants.

The constitution provides
for freedom of religion; however, the authorities restrict this right
in practice. Although Article 16 of the 1996 amended constitution that
resulted from the illegal referendum reaffirms the equality of
religions and denominations before the law, it also contains
restrictive language that stipulated that cooperation between the state
and religious organizations "is regulated with regard for their
influence on the formation of spiritual, cultural, and country
traditions of the Belarusian people."

On October 22, 2002, the
parliament approved a new law on religion, despite protests from
international and domestic human rights organizations as well as
Orthodox religious groups not affiliated with the Russian Orthodox
Church. The law contains a number of very restrictive elements.

According to the
constitution, citizens are free to travel within the country and to
live and work where they wish; however, the authorities sometimes
restrict these rights in practice. The authorities issue internal
passports to all adults, which serve as primary identity documents and
are required to travel, obtain permanent housing, and for hotel
registration.

The constitution provides
for the right of workers--except state security and military
personnel--to voluntarily form and join independent unions and to carry
out actions in defense of workers' rights, including the right to
strike. In practice, however, these rights are limited. The Belarusian
Free Trade Union (BFTU) was established in 1991 and registered in 1992.
Following the 1995 Minsk metro workers strike, the President suspended
its activities. In 1996 BFTU leaders formed a new umbrella
organization, the Belarusian Congress of Democratic Trade Union
(BCDTU), which encompasses four leading independent trade unions and is
reported to have about 15,000 members. In late 2003, the BCDTU became a
member of the International Confederation of Free Trade Unions (ICFTU).

In May 2001, a complaint was
lodged with the International Labor Organization (ILO) by several trade
union organizations. A trade union campaign was carried out to raise
international awareness and put pressure on the Belarus Government.
Late in 2001, the regime attempted to further restrict the unions by
refusing to turn over dues paid by members. Once it became clear that
the unions and the BFTU were adjusting to this change, the government
in June of 2002 embarked on a takeover of the BFTU and several of its
branch unions. The BFTU subsequently became an arm of the government,
and the election of Leonid Kozik to the position of Chairman of the
BFTU has been challenged by the ILO.

In 2003, the authorities
took numerous measures to suppress independent trade unions and
continued to interfere in the work of the BFTU, especially regarding
activities of independent, affiliated unions. In May, the trade unions
at nine state enterprises merged to form the Belarusian Union of
Industry Workers (BUIW), which subsequently became a member of Kozik’s
BFTU. The authorities and directors of state enterprises placed
significant pressure on workers to join the BUIW. Independent union
activists called the BUIW a pro-government, "yellow union" established
to quell resistance to BFTU's pro-government agenda and undermine
reformist grassroots unions. In June 2003, the International Labor
Organization's (ILO) Standards Committee included the country in its
special paragraph on trade union violations for a second consecutive
year and urged the government to address the ILO recommendations to
eliminate government interference in unions. On November 19, the ILO
approved the establishment of a Commission of Inquiry to investigate
alleged serious violations of workers' rights in the country. On
November 11, the Ministry of the Economy informed the ILO that all
activities related to its technical assistance project to labor unions
must cease, because the registration of the project was denied.

In March 2004 the
government began forcing state employees (some 80% of Belarusian
workers) to sign short-term work contracts. Although contracts may be
concluded for a period of 5 years, most expire after one
year--essentially allowing the government to fire anyone annually.
Although the contracts are new, several members of independent unions
have already lost their jobs when their contracts were not renewed.

The State Department’s report on human rights practices in Belarus is located at http://www.state.gov/g/drl/rls/hrrpt/2003/27827.htm.

Principal Government Officials
President--Alexander Lukashenko
Prime Minister--Sergei Sidorsky
Foreign Minister--Sergei Martynov
Ambassador to the U.S.--Mikhail Khvostov
Ambassador to the UN—Andrei Dapkunis

Belarus’ embassy in the U.S.
is at 1619 New Hampshire Ave., NW, Washington, DC 20009; tel:
202-986-1606; fax: 202-986-1805; website: http://www.belarusembassy.org

ECONOMY
As
part of the former Soviet Union, Belarus had a relatively
well-developed industrial base; it retained this industrial base
following the breakup of the U.S.S.R. The country also has a broad
agricultural base and a high education level. Among the former
republics of the Soviet Union, it had one of the highest standards of
living. But Belarusians now face the difficult challenge of moving from
a state-run economy with high priority on military production and heavy
industry to a civilian, free-market system.

After an initial outburst of capitalist
reform from 1991-94, including privatization of state enterprises,
creation of institutions of private property, and entrepreneurship,
Belarus under Lukashenko has greatly slowed its pace of privatization
and other market reforms, emphasizing the need for a "socially oriented
market economy." About 80% of all industry remains in state hands, and
foreign investment has been hindered by a climate hostile to business.
The banks, which had been privatized after independence, were
renationalized under Lukashenko.

Economic output, which
declined for several years, revived somewhat in the late 1990s, but the
economy remains dependent on Russian subsidies. Until 2000, subsidies
to state enterprises and price controls on industrial and consumer
staples constituted a major feature of the Belarusian economy.
Inflationary monetary practices, including the printing of money, also
have been regularly used to finance real sector growth and to cover the
payment of salaries and pensions.

Peat, the country's most
valuable mineral resource, is used for fuel and fertilizer and in the
chemical industry. Belarus also has deposits of clay, sand, chalk,
dolomite, phosphorite, and rock and potassium salt. Forests cover about
a third of the land, and lumbering is an important occupation.
Potatoes, flax, hemp, sugar beets, rye, oats, and wheat are the chief
agricultural products. Dairy and beef cattle, pigs, and chickens are
raised. Belarus has only small reserves of petroleum and natural gas
and imports most of its oil and gas from Russia. The main branches of
industry produce tractors and trucks, earthmovers for use in
construction and mining, metal-cutting machine tools, agricultural
equipment, motorcycles, chemicals, fertilizer, textiles, and consumer
goods. The chief trading partners are Russia, Germany, Ukraine, and
Poland.

The massive April 26, 1986
nuclear accident at the Chernobyl power plant, across the border
in Ukraine, had a devastating effect on Belarus; as a result of the
radiation release, agriculture in a large part of the country was
destroyed, and many villages were abandoned. Resettlement and medical
costs were substantial and long-term.

In 2000, Belarus managed to
unify its currency exchange rates, tightened its monetary policy, and
partially liberalized the foreign currency market. These developments
led to the conclusion of a staff-monitored program in cooperation with
the IMF, addressing, among other topics, price and wage liberalization,
a widening of privatization, fiscal reform, the adoption of
international accounting standards in the banking sector, and the
repeal of several egregious laws and decrees to improve the investment
climate. The program was conducted between April and September 2001,
with relatively disappointing results.

Due to the economic and
political climate, little new foreign investment occurred in 2003. In
2002, two major companies, the Swedish furniture firm Ikea and Russian
beer producer Baltika, ended operations in Belarus due to unrealized
government commitments or unwelcome interference. The government itself
faced increasing fiscal difficulties as arrears rose in wages and
pensions, and in tax payments.

Growth in 2003 and early
2004 was reportedly robust, but peculiarities in official Belarusian
statistics complicate analysis. Inflation remained highest in the
region despite a modest decline to 18% in early 2004. Over 40% of
enterprises and a majority of collective farms currently operate at a
loss, a level that has persisted since 2002. The government made
progress in reining in its fiscal policies, largely due to constraints
imposed by financial difficulties caused by the earlier economic
slowdown. Belarus continues to be heavily dependent on Russia, with the
potential for greater economic dependency looming in the proposed
European Union (EU)-style union between the two states. Prospects for
an eventual union appear diminished, however, largely due to the
apparent lack of interest on the part of Belarus.

The World Bank’s 2002-2004
country assistance strategy for Belarus focuses on areas such as
targeted social assistance to help open up Belarusian society, AIDS/HIV
and tuberculosis prevention, environmental protection,
Chernobyl-related damage, and small and medium enterprise development.
The World Bank’s most recent project in Belarus began with its June
2001 approval of a $22.6 million loan to finance repairs in over 450
schools, hospitals, and homes for orphans, the elderly, and the
disabled throughout Belarus. In 2004, Belarus rejected a World Bank
loan to help fight AIDS and tuberculosis. IMF cooperation is currently
limited to policy and technical consultations.

Environmental Issues
Belarus
has established ministries of energy, forestry, land reclamation, and
water resources and state committees to deal with ecology and safety
procedures in the nuclear power industry. The most serious
environmental issue in Belarus results from the accident in 1986 at the
Chernobyl nuclear power plant. About 70% of the nuclear fallout from
the plant landed on Belarusian territory, and about 20% of the land
remains contaminated. But government restrictions on residence and use
of contaminated land are not strictly enforced, and the government
announced plans in 2004 to increase agricultural production in the
contaminated regions. The government receives U.S. assistance in
its efforts to deal with the consequences of the radiation.

DEFENSE AND MILITARY ISSUES
The
United States continues to support Belarus’ adherence to arms control
agreements and treaties into which it has previously entered. Added to
this list is Belarus’ recent ratification of the Open Skies Treaty.
Cooperation in all such agreements has been exemplary.

Humanitarian aid continues
to be the primary engagement between the U.S. military and Belarus. In
early 2004, the United States European Command announced the allocation
of $200,000 for the continued renovation of the Gomel Emergency
Treatment Hospital. The hospital had already received more than
$600,000 in humanitarian assistance, which included funds for the
renovation and establishment of its blood transfusion center in 2001.
In addition, in May 2004, the U.S. military donated $95,000 for the
renovation of the Turov regional hospital. These programs, coupled with
the continuous flow of Humanitarian Excess Property from U.S. Cold War
stocks, define the humanitarian assistance program.

Direct military to military
cooperation continues to be minimal. Belarus currently has no
International Military Education and Training (IMET) program, and
bilateral exercises and cooperation are nonexistent. There is a great
desire on the Belarusian side to re-establish such cooperation and
contacts, but it has not been possible due to the political situation.
The only program that is still functional within this category is the
attendance of Belarusian military officers in George C. Marshall Center
programs.

Potential areas of
cooperation can be seen in the area of mine disposal, demining, and
small arms destruction. Belarus possesses an unstable inventory of
about 4.2 million anti-personnel mines, which require proper disposal.
Officials have been working with foreign governments to acquire
financial and technical support for these efforts but have met with
little tangible success. In addition to this, there are numerous World
War II-vintage minefields, which are still in place and kill or injure
several Belarusians every year. The Belarusian Government would quickly
accept assistance in either of these areas.

The Minister of Defense is
experiencing success in the area of military reform. Planned changes
include combining the Air and Air Defense Forces, downsizing the force
structure about 30% from 83,000 to 60,000, transitioning from a
conscript to a contract force, and modernizing the command and control
structure by creating a Ground Forces Command between the Ministry of
Defense and the units in the field. Implementation of these reforms
will take an unspecified amount of time.

The area of greatest
concern continues to be links between Belarus and states of concern
through the sale of arms to, equipment services to, and the training of
personnel from these states. Included in this category (but not limited
to these examples) are the sales of weapons to Libya and Syria, along
with reported weapons transfers, upgrades of equipment (S-300 system),
and air defense training of service members of the former Iraqi regime.

FOREIGN RELATIONS
Under
an arrangement with the former U.S.S.R., Belarus was an original member
of the United Nations. It also is a member of the Commonwealth of
Independent States (CIS--a group of 12 former Soviet republics) and its
customs union, the Organization for Security and Cooperation in Europe
(OSCE), the North Atlantic Treaty Organization's (NATO) Partnership for
Peace, the North Atlantic Cooperation Council, the International
Monetary Fund, and the World Bank.

Following the recognition
of Belarus as an independent state in December 1991 by the European
Community, EU-Belarus relations initially experienced a steady
progression. The signature of the Partnership and Cooperation Agreement
(PCA) in 1995 signaled a commitment to political, economic, and trade
cooperation. Significant assistance was provided to Belarus within the
framework of the TACIS technical assistance program and also through
various aid programs and loans. However, progress in EU-Belarus
relations stalled in 1996 after serious setbacks to the development of
democracy and the Drozdy conflict. The EU did not recognize the 1996
constitution, which replaced the 1994 constitution. The EU Council of
Ministers decided against Belarus in 1997: The PCA was not concluded,
nor was its trade-related part; Belarusian membership in the Council of
Europe was not supported; bilateral relations at the ministerial level
were suspended; and EU technical assistance programs were frozen. In
2004, the Council of Europe adopted a report written by special
rapporteur Christos Pourgourides calling on Belarusian authorities to
suspend various high-level officials in conducting a thorough
investigation of the cases of several prominent Belarusian political
figures who have disappeared and remain unaccounted for.

Acknowledging the lack of
progress in relation to bilateral relations and the internal situation
following the position adopted in 1997, the EU adopted a benchmark
approach in 1999, whereby relations would be gradually improved upon
fulfillment of the four benchmarks set by the OSCE. In 2000, some
moderately positive developments toward the implementation of
recommendations made by the OSCE Advisory and Monitoring Group (AMG)
were observed but were not sufficient in the realm of access to fair
and free elections. The Belarusian Government, objecting to the OSCE
AMG's activities, forced its shutdown by failing to renew visas or
extend accreditation of professional staff. The Belarus Government
agreed to a successor OSCE presence after 14 EU member countries and
the U.S. imposed visa restrictions on the travel of high-ranking
Belarusian officials. The OSCE Office in Minsk formally came into
existence on January 1, 2003 with a mandate to "assist the Belarusian
Government in further promoting institution-building, in further
consolidating the Rule of Law and in developing relations with civil
society, in accordance with OSCE principles and commitments".

Russia is the largest
partner for Belarus in the economic and political fields. In terms of
trade, two-thirds of Belarusian exports go to Russia. Due to the
structure of Belarusian industry, Belarus relies heavily on other CIS
countries and Russia in particular both for export markets and for the
supply of raw materials, energy, and components. The introduction of
free trade between Russia and Belarus in mid-1995 led to a spectacular
growth in bilateral trade, which was only temporarily reversed in the
wake of the financial crisis of 1998. The framework for the
Russia-Belarusian Union was set out in the Treaty On the Formation of a
Community of Russia and Belarus (1996), the Treaty on Russia-Belarus
Union, the Union Charter (1997), and the Treaty of the Formation of a
Union State (1999). The integration treaties contain commitments to
monetary union, equal rights, single citizenship, and a common foreign
and defense policy. They also have established a range of institutions
modeled after the EU. After protracted disputes and setbacks, the two
countries' customs duties were unified as of March 2001. Belarus has
made progress in monetary stabilization in the context of ongoing
negotiation with the Russian Central Bank on monetary union. In early
2003, a bilateral working group was developing a draft union
constitution to be ratified by a referendum held in both countries.
Belarus and Russia had also reaffirmed their intention to achieve
currency unification by 2005. However, differences over tax policy,
customs codes, foreign trade, and constitutional issues make union
appear increasingly unlikely. In July 2004, Lukashenko claimed that
currency union would have to wait until at least 2008.

U.S.-BELARUSIAN RELATIONS
The
United States recognized Belarusian independence on December 25, 1991.
After the two countries established diplomatic relations, the U.S.
Embassy in Minsk was officially opened on January 31, 1992. Ambassador
David H. Swartz, the first Ambassador to Belarus, officially assumed
post on August 25, 1992--the first anniversary of Belarusian
independence--and departed post on completion of his term in late
January 1994. On November 7, 1994, Ambassador Kenneth S. Yalowitz
assumed post. He was succeeded by Ambassador Daniel V. Speckhard, who
served from August 1997 to August 2000, spending one year recalled to
Washington because of a dispute between the government and Western
embassies over the confiscation of diplomatic residences. Michael G.
Kozak served as U.S. Ambassador from October 2000 to August 2003.
George A. Krol replaced Ambassador Kozak as U.S. Ambassador and arrived
in Belarus on September 4, 2003.

The two countries have
exchanged top-level official visits. Stanislav Shushkevich, the
Chairman of the Supreme Soviet of the Republic of Belarus, met with
President Clinton in Washington in July 1992, and President Clinton
visited Belarus on January 15, 1994. After this high point in
relations, however, bilateral relations cooled following the election
of President Alexander Lukashenko in July 1994.

On September 12, 1995 three
hot air balloons participating in the Coupe Gordon Bennett race entered
Belarusian air space. Despite the fact that race organizers informed
the Belarusian Government about the race in May and that flight plans
had been filed, the Belarusian air force shot down one balloon, killing
two American citizens, and forced the other two to land. The crews of
the other two balloons were fined for entering Belarus without a visa
and released. Belarus to date has not apologized or offered
compensation for these killings.

In November 1996, the
Lukashenko regime conducted an internationally unrecognized
constitutional referendum, which resulted in the dissolution of
Belarus’ legitimate parliament and the centralization of power in the
executive branch. In that same year, the Belarusian authorities
provoked a diplomatic crisis by demanding and, in contravention of
international law, eventually confiscating diplomatic residences in the
Drozdy housing compound, including the U.S. Ambassador’s residence.
This action led the United States and other countries to withdraw their
ambassadors from Belarus until the Belarusian authorities provided
compensation and guarantees to respect international law. In addition,
Lukashenko used his newly centralized power to repress human rights
throughout the country, including persecuting members of the illegally
disbanded Belarusian parliament (13th Supreme Soviet) and former
members of his own government.

As a result of these events
and tendencies, in 1997, the United States announced its decision to
pursue a "selective engagement" policy with the Government of Belarus.
This policy included downgrading government-to-government contacts to
the level of Assistant Secretary and below, and restricting U.S.
Government assistance to the Belarusian Government--with the exception
of humanitarian assistance and exchange programs with state-run
educational institutions. At the same time, the U.S. greatly expanded
contacts with Belarusian civil society to promote democratization in
Belarus.

Since 1997, despite growing
U.S. engagement with Belarusian society, official bilateral relations
have remained at a low level. The "selective engagement" policy has
remained in effect. No meetings at the ministerial level or above have
occurred. In 2003, the United States, in tandem with the European
Union, proposed a step-by-step, gradual approach to improve bilateral
relations: the United States would respond positively to genuine
efforts by Belarusian authorities to improve Belarus’ human rights and
electoral practices. Belarusian authorities have yet to take such steps
to warrant a positive response. In September 2004, both the United
States and European Union imposed travel restrictions on Belarusian
officials implicated in politically motivated disappearances, In
October 2004, the U.S. Congress passed, and the President signed, the
Belarus Democracy Act, designed to promote democratization.

U.S.-Belarusian Economic Relations
The
U.S. Government continues to support the development of the private
sector in Belarus and its transition to a free market economy. With the
advent of the Lukashenko regime, Belarusian authorities have pursued a
generally hostile policy toward the private sector and have refused to
initiate the basic economic reforms necessary to create a market-based
economy. Most of the Belarusian economy remains in government hands.
The government, in particular the presidential administration,
exercises control over most enterprises in all sectors of the economy.
In addition to driving away many major foreign investors--largely
through establishment of a "Golden Share " requirement, which allows
government control in all companies with foreign investment--Belarus’
centralization and command approach to the economy has left only a
trickle of U.S. Government and international assistance programs in
this field.

In February 1993, a
bilateral trade treaty guaranteeing reciprocal most-favored-nation
status entered into force. In January 1994, the U.S. and Belarus signed
a bilateral investment treaty, which has been ratified by Belarus but
has not been ratified by the U.S. Senate. In addition, due to
continuing repression of labor rights in Belarus, the U.S. removed
Belarus from the Generalized System of Preferences (GSP) in 2000.

The United States has
encouraged Belarus to conclude and adhere to agreements with the
International Monetary Fund (IMF) on the program of macroeconomic
stabilization and related reform measures, as well as to undertake
increased privatization and to create a favorable climate for business
and investment. Although there has been some American direct private
investment in Belarus, its development has been relatively slow given
the uncertain pace of reform. An Overseas Private Investment
Corporation agreement was signed in June 1992 but has been suspended
since 1995 because Belarus did not fulfill its obligations under the
agreement. Belarus is eligible for Export-Import Bank short-term
financing insurance for U.S. investments, but because of the adverse
business climate, no projects have been initiated. The IMF granted
standby credit in September 1995, but Belarus has fallen off the
program and did not receive the second tranche of funding, which had
been scheduled for regular intervals throughout 1996. Since that time,
Belarus has had an ongoing discussion to relaunch IMF-backed reforms,
concluding an IMF Staff-Monitored Program (SMP) in 2001, which ended in
September 2001 with relatively disappointing results. In early 2004,
Belarus halted negotiations on a follow-on stand-by arrangement due to
disagreements with the IMF on macroeconomic policy and claiming that it
did not require IMF funding.

Because of the
unpredictable and at times hostile environment for investors, the U.S.
Government currently does not encourage U.S. companies to invest in
Belarus. Belarus’ continuing problems with an opaque, arbitrary legal
system, a confiscatory tax regime, cumbersome licensing system, price
controls, and lack of an independent judiciary create a business
environment not conducive to prosperous, profitable investment. In
fact, several U.S. investors in Belarus have left, including the Ford
Motor Company.

U.S. Assistance to Belarus
Since
1992, the U.S. Government has provided an estimated $597.07 million in
assistance to Belarus, including $194.05 million in U.S. Defense
Department excess and privately donated humanitarian commodities. U.S.
Government assistance to Belarus peaked in 1994 at a level of
approximately $76 million (consisting of more than $16 million in
FREEDOM Support Act funds and some $60 million in funds from various
U.S. Government agencies). However, U.S. assistance levels dropped
sharply due to the lack of progress in democratic and economic reform
after the coming to power of Alexander Lukashenko in mid-1994. An
overview of annual assistance levels is provided below:

Annual U.S. Assistance (including DoD excess and privately donated humanitarian commodities)
FY 1994--$101.5 million
FY 1995--$86.1 million
FY 1996--$69.2 million
FY 1997--$22.8 million
FY 1998--$17.2 million
FY 1999--$29.4 million
FY 2000--$24.3 million
FY 2001--$30.7 million
FY 2002--$28.07 million
FY 2003--$9.05 million not including DoD excess and privately donated humanitarian commodities.

U.S. Government assistance to
Belarus continues to be subject to the policy of selective engagement
with the Government of Belarus, under which little bilateral assistance
is channeled through the Government of Belarus, except for humanitarian
assistance and exchange programs involving state-run educational
institutions. Most U.S. Government assistance is targeted to supporting
Belarus’ non-governmental organizations (NGOs), particularly those
working to promote the development of civil society and the free flow
of information. The U.S. also supports international organizations’
efforts in Belarus to combat the growing problem of trafficking in
persons.

[Fact sheet on FY 2004 U.S. Assistance to Belarus.]

Training and exchange programs.
Since FY 1993, U.S. Government-funded exchange programs have brought
more than 2,510 Belarusian citizens to the United States for short-term
professional or long-term academic training, including some 200 in FY
2003 alone. These programs give reform-minded Belarusians an
opportunity to develop their skills and establish contacts with U.S.
counterparts. In FY 2003, 50 Belarusian students participated in the
Future Leaders Exchange program, attending U.S. high schools and living
with American families for one academic year.

Crossborder training programs.
U.S. Government-funded cross-border programs provide training to
Belarusians in neighboring countries, giving the Belarusians an
opportunity to see first-hand the results of successful post-communist
democratic and economic reforms.

Democracy fund small grants program.
The U.S. Embassy's Democracy Commission awards small grants to
Belarusian NGOs in support of a wide range of democracy-building
activities, including civic participation, independent print and
electronic media, independent trade unions, legal aid organizations,
youth and women's groups and human rights groups. Although Democracy
Commission grants are limited in size--individual grants do not exceed
$24,000, with most falling between $5,000 and $15,000--they have proven
to be a very effective vehicle for supporting pro-reform segments of
Belarusian society at the grassroots level.

Support for the National Endowment for Democracy.
The U.S. Government provides supplementary funding to the National
Endowment for Democracy (NED) in support of small grants to Belarusian
NGOs and independent media outlets.

Political process programs.

With funding from the U.S. Agency for International Development
(USAID), the International Republican Institute (IRI) and the National
Democratic Institute (NDI) conduct in-country training focusing on
party- and coalition-building, domestic election monitoring, and
strengthening political skills for democratically oriented
organizations, party leaders, and activists.

Independent print media.
Until it was closed by the Belarusian government in August 2003, the
International Research and Exchanges Board (IREX) offered technical and
legal assistance to Belarus’ independent media.

Rule of law programs.
With funding from USAID, the American Bar Association's USAID-funded
Central and Eastern European Law Initiative (ABA/CEELI) is
strengthening law-related NGOs and educating average Belarusian
citizens about their rights under Belarusian law. ABA/CEELI has been
working with lawyers from 22 legal advice centers run by independent
trade unions and NGOs to improve the quality and increase the
availability of free legal advice to the population.

NGO development programs.
With funding from USAID, the Counterpart Alliance for Partnership (CAP)
seeks to promote civil society development in Belarus by providing
assistance to Belarusian NGOs, with a focus on legal aid and education
to strengthen the capacity of its Belarusian NGO partners to protect
their own rights.

Support for Belarusian entrepreneurs.
Although the lack of economic reform in Belarus has precluded a broader
program of USAID-funded economic development assistance, USAID has
sought to help Belarusian entrepreneurs to organize and defend their
rights.

Western NIS Enterprise Fund (WNISEF).
WNISEF runs a small and medium-sized enterprise (SME) credit and
capital investment program in Ukraine, Moldova, and Belarus. However,
because of the restrictive environment for private SMEs in Belarus,
WNISEF has had no active credit and investment projects in Belarus for
the past several years.

U.S. Department of State--Operation Provide Hope.

Since 1992, the United States has provided more than $200 million in
humanitarian assistance to the most needy citizens in Belarus, and the
U.S. Department of State has sponsored 35 medical airlifts.

Security programs.
Belarus was previously a recipient of assistance under the U.S. Defense
Department's Cooperative Threat Reduction (CTR) Program, whose
objective is to reduce the threat posed to the United States by weapons
of mass destruction remaining on the territory of the former Soviet
Union, by promoting denuclearization and demilitarization and
preventing weapons proliferation. However, in February 1997, due to the
Belarusian Government's poor record on human rights, President Clinton
de-certified Belarus, rendering the country ineligible for further
assistance. This resulted in the reallocation to other countries of
unobligated CTR assistance funds originally intended for Belarus, as
well as restrictions on other security-related assistance to Belarus.
The United States and Belarus signed a government-to-government
umbrella agreement on CTR assistance in 1992, seven agency-to-agency
CTR implementing agreements, and one memorandum of understanding and
cooperation; the umbrella agreement was extended for one year in
October 1997, but has now expired.

For more detailed
information on U.S. Government-funded assistance programs, please see
the Annual Reports on U.S. Government Assistance to Eurasia, which are
available online at the following addresses:

The FY 2000-2002 annual reports are available at http://www.state.gov/p/eur/rls/rpt/
The FY 1994-99 annual reports are available at http://www.state.gov/www/regions/nis/nis_assist_index.html

Principal U.S. Embassy Officials
Ambassador--George Krol
Deputy Chief of Mission--Constance Phlipot
Political/Economic Officer--Marc Nordberg
Consular Officer--Christopher Reynolds
Management Officer--Benjamin Dille
Regional Security Officer--Anthony Tortora
Public Affairs Officer--Dian McDonald
Defense Attaché-- MAJ John Pilloni
IPO--Harry Chamberlain
USAID--vacant

The U.S. Embassy in Minsk, Belarus is located at Starovilenskaya 46; tel: (375-17) 210-12-83; fax: (375-17) 234-78-53.

TRAVEL AND BUSINESS INFORMATION
The
U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also are
available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad, are
on the Internet and hard copies can be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning
Americans traveling abroad may be obtained from the Office of Overseas
Citizens Services at (202) 647-5225. For after-hours emergencies,
Sundays and holidays, call 202-647-4000.

The National Passport Information Center
(NPIC) is the U.S. Department of State's single, centralized public
contact center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.

Travelers can check the latest health
information with the U.S. Centers for Disease Control and Prevention in
Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web
site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations or
requirements, and advice on food and drinking water safety for regions
and countries. A booklet entitled Health Information for International
Travel (HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa
requirements, currency and customs regulations, legal holidays, and
other items of interest to travelers also may be obtained before your
departure from a country's embassy and/or consulates in the U.S. (for
this country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register their travel via the State Department’s travel registration web site at https://travelregistration.state.gov

or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


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