BELARUS NEWS AND ANALYSIS

DATE:

15/11/2007

Belarus blasts U.S. sanction, summons ambassador

By Andrei Makhovsky

MINSK, Nov 15 (Reuters) - Belarus summoned the U.S. ambassador on Thursday to issue a formal protest against financial sanctions imposed on oil processor Belneftekhim.

The Bush administration, which has dubbed ex-Soviet Belarus "the last dictatorship in Europe", has issued a long series of punitive measures against Belarus, including an entry ban on President Alexander Lukashenko.

On Tuesday, Washington prohibited Americans from doing business with the refining and petrochemical firm and froze any assets it has under U.S. jurisdiction.

Foreign Ministry spokesman Andrei Popov said U.S. ambassador Karen Stewart had been presented with a note of protest.

"The note says the U.S. government has violated a trade agreement signed by the United States and Belarus," Popov told a news conference.

"The Belarussian side demands that the United States return assets and property to Belneftekhim, their lawful owner."

Belarus said on Wednesday it was considering "appropriate" retaliatory moves against the United States in response to the sanctions, without elaborating.

Popov offered no further details. The United States has little investment in Belarus and it is not clear what form retaliation might take.

Belneftekhim, the Belarussian State Concern for Oil and Chemistry, has a wholly owned U.S. subsidiary, Belneftekhim USA Inc., and is made up of more than 50 petroleum and petrochemical businesses.

Belarus depends almost solely on Russia for the crude oil it refines. Beleneftekhim controls two refineries and a potash plant and provides one-fifth of all foreign currency earnings.

The United States and European Union accuse Lukashenko of harassing and jailing opponents, muzzling the media and rigging polls, including his re-election to a third term last year.

Belarus has sought better ties with the West since a spat this year with Russia over energy price increases. But it rejects any suggestion it must improve human rights and release what Western countries describe as "political prisoners".

Lukashenko, however, remains virulently opposed to the proposed deployment of a U.S. missile defence system in eastern and Popov restated a pledge to act against it.

"Belarus sees no objective reason to install a missile defence system in eastern Europe," he said. "In accordance with our military doctrine, we will act to safeguard our security." (Writing by Ron Popeski; Editing by Alison Williams)

Source:

http://www.reuters.com/article/bondsNews/idUSL1588444520071115