BELARUS 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. The EU did not recognize the 1996 constitution, which replaced the 1994 constitution. Neither the PCA nor its trade-related elements were implemented, and Belarus was not invited to join the EU's Neighborhood Policy. 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 1998, relations were further worsened when President Lukashenko evicted several western ambassadors from their homes in the Drozdy area of Minsk. 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. In parallel with the U.S., the EU spoke out strongly about the government's conduct of the 2006 election, noting that additional restrictive measures would be imposed against those officials responsible for abuses. After the election, the U.S. and EU imposed travel restrictions and financial sanctions against those responsible for abuses. The EU also launched a two-year, 2 million Euro project to support Belarusian access to independent information, also in complement to U.S. assistance programs. In June 2007, the EU announced the withdrawal of GSP trade preferences for Belarus, following an assessment by the International Labor Organization that Belarus had not acted to ensure the protection of labor rights and freedom of association.

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, over one-third of Belarusian exports go to Russia, although this reflects a decline in 2005 from previous levels, resulting from a January 2005 restructuring of the value-added tax (VAT) in bilateral trade. 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, subsidized energy, and components. The 2007 steep increase in the price of natural gas and higher tariffs on Russian-sourced oil and oil products have contributed to a crisis in the Belarusian economy, forcing the regime to cut popular subsidies and request a stabilization loan from Russia. The introduction of free trade between Russia and Belarus in mid-1995 led to a spectacular growth in bilateral trade. 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. However, Belarus has repeatedly pushed back the date for implementing monetary union. It was reported in 2005 that a bilateral working group had developed a draft union constitutional act, to be ratified by a referendum held in both countries, but no dates for the referendum have been proposed. A dispute with Russia in late 2006 and early 2007 over gas prices and oil import duties raised further doubts about the future of the union.

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 served as U.S. Ambassador from September 2003 to July 2006. Karen Brevard Stewart replaced Ambassador Krol as U.S. Ambassador and arrived in Belarus on September 18, 2006.

The two countries exchanged top-level official visits in the early years of independence. 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 in January 1994. After this high point in relations, however, bilateral relations cooled following the election of President Alexander Lukashenko in July 1994.

In September 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 some exceptions including 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. 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 failed to take such steps to warrant a positive response.

In October 2004, the U.S. Congress passed, and the President signed, the Belarus Democracy Act, designed to promote democratization. In signing the act, President Bush noted that the authorities were turning Belarus into "a regime of repression in the heart of Europe," and set out the U.S. policy of working "with our allies and partners to assist those seeking to return Belarus to its rightful place among the Euro-Atlantic community of democracies." Together with the EU, the U.S. has imposed targeted sanctions against Belarusian officials implicated in human rights abuses and election fraud, including travel restrictions and targeted financial sanctions imposed in 2006 after the deeply flawed presidential election. To underscore U.S. support for the Belarusian people's democratic aspirations, the President and Secretary of State met with a number of Belarusian activists in 2005 and 2006. U.S. assistance supports democratic political forces, civil society, exchanges, education and independent media, including external broadcasting, to help those promoting democracy and providing access to independent information in Belarus. On January 12, 2007, President Bush signed the Belarus Democracy Reauthorization Act, which calls for targeted sanctions against Belarusian officials and continued assistance for democracy building activities. In June 2007 in Prague, Czech Republic, President Bush met with former presidential candidate Aleksandr Milinkevich and Olga Kozulina, the daughter of political prisoner Aleksandr Kozulin.

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 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. 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 fell 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
U.S. Government assistance programs in Belarus support and encourage civil society development, access to independent information, pro-democracy forces, and the emergence of democracy in a very difficult and challenging environment. Most assistance is in the form of training and exchanges, as well as small grants and capacity-building for local non-governmental organizations. The U.S. also supports external radio broadcasting into Belarus. Because the Belarusian authorities have not embraced market reforms, the U.S. is able to program only modest activities in support of private entrepreneurs. The U.S. provides some health program funding and supports international organizations' efforts in Belarus to combat the growing problem of trafficking in persons. With very limited exceptions, including humanitarian assistance and exchange programs involving state-run educational institutions, bilateral assistance is not channeled through the Government of Belarus.

From FY 1992 through FY 1995, the U.S. Government provided more than $455 million in assistance to Belarus, and transferred over $233 million in U.S. Defense Department excess and privately donated humanitarian commodities. Assistance is provided to Belarus under the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act (FSA) enacted in October 1992. 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.

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 CTR assistance and placing restrictions on other security-related assistance as well. 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 assistance to Belarus, please see the annual reports to Congress on U.S. Government Assistance to and Cooperative Activities with Eurasia, which are available in the Bureau of European and Eurasian Affairs section on the State Department's website. A fact sheet on FY 2005 U.S. Assistance to Belarus can be found at http://www.state.gov/p/eur/rls/fs/49300.htm. Information is also available on the U.S. Agency for International Development's (USAID) website at the address: http://www.usaid.gov.

Principal U.S. Embassy Officials
Ambassador--Karen Brevard Stewart
Deputy Chief of Mission--Jonathan Moore
Political/Economic Officer--Louis Crishock
Consular Officer--Sara Michael
Management Officer--Kirby Nelson
Regional Security Officer--Christine Putz
Public Affairs Officer--William James
Defense Attaché--Lt Colonel Keith Detwiler
Information Program Officer--Mark Hall
USAID--Chuck Howell

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

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, 7:00 a.m. to 12:00 midnight, 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.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.