BELARUS NEWS AND ANALYSIS

DATE:

31/05/2007

Suffering for Crude of Russia

Belneftekhim Consortium CEO Alexander Borovsky has been detained in Belarus. Prosecutors suspect this top-ranked bureaucrat of minister's status in embezzlement but disclose neither the amount nor the essence of their claims. But one thing is known for sure, Borovsky has been too critical of provisions for Russia's crude supplies to Belarus.

Belarus' KGB arrested Belneftekhim chief Alexander Borovsky and "a number of other businessmen" in Minsk Tuesday on suspected "embezzlement and office abuse : Huge sums of money and jewelry were confiscated" from the detained, said Belarus' Prosecutor General Pyotr Miklashevich.

KGB has given no specifics. In Belarus, it is the first time that such high-ranked businessman is arrested. The previous case of similar extent was detention of Naftan Refinery GD Konstantin Chesnovitsky in December 2004. His fault was the failure to ensure referendum support for the third presidential term of Lukashenko in his region.

But Belneftekhim chief is apparently much more powerful figure. The consortium unites 50 firms generating more than a half of export revenues for Belarus. Its enterprises are operating on crude of Russia.

By strange coincidence, Borovsky missed the talks of Russia and Belarus held in early this year and related to introducing new customs duties on crude and petroleum. A month ago, Borovsky took liberty of criticizing results of those negotiations, lashing out at Vice Premier Andrey Kobyakov. Moreover, public statements of Borovsky about stripping the enterprises of millions of dollars in favor of National Development Fund have been too challenging recently.

Source:

http://www.kommersant.com/p770151/Belneftekhim_Borovsky_arrest/