

On 2 July Belarus witnessed a rather unusual show – 200 Chinese workers marched dozens of kilometres towards the city of Homiel in protest against wage arrears and poor working conditions. These foreign workers are currently employed by the Chinese company Siuan Yuan which is building a paper factory. A similar protest organised by Belarusians is almost unthinkable in modern Belarus. The government controls every employee through a contract system and dissidents who raise their voices may lose their jobs instantaneously, while independent trade unions have almost disappeared under Lukashenka's rule.

The situation in Ukraine continues to be a major concern for the Belarusian authorities, while the prospects of Russia's air base is still uncertain as Minsk maintains its low-profile cooperation with NATO. Belarus is set to receive additional second-hand Russian S-300 missile systems but is unlikely to be the recipient of more modern systems anytime in the foreseeable future. In addition to the S-300s, Belarus is set to receive some additional transport helicopters from Russia. Belarus revealed that it is cooperating with China to design a multiple rocket launcher system and Belarusian special operations forces held a third set of military exercises with their Chinese colleagues.

This month, the Belarusian Ministry of Finance will issue bonds for $425.8 million to bail out Gomselmash (abbreviation for Homiel Rural Machine Building), the most important industrial holding company of the second largest city in the country. The large cost of issue reflects the size of Gomselmash’s problems. The holding fails to sell its products, is reluctant to lay off people and cannot pay salaries to its employees. Many other Belarusian enterprises face similar problems. The state recently limited assistance to state-owned enterprises, which still dominate the Belarusian economy but has no choice but to provide even more help.

Two months ago dozens of prominent Belarusian intellectuals and civil society leaders called for the establishment of a Belarusian national university. This push followed realisation by leaders of Belarusian civil society that they were powerless to influence the election of the rector of the European Humanities University – the largest donor-sponsored independent educational project associated with Belarus. Supporters of the Belarusian national university say that an independent university run by Belarusians and with Belarus at the core of its focus is not just a dream. It may well become a reality if they succeed in bringing together existing informal education providers in Belarus with centres of Belarusian studies at reputable Western institutions.

Last week, Belarusian Foreign Minister Uladzimir Makei criticised cooperation within the Eurasian Economic Union. Minsk is no longer hiding that its own position on the EU-led Eastern Partnership initiative starkly differs from Russia's stance on the issue. Although Minsk continues to assure Moscow about its brotherly support, brazen commentaries from pro-Putin commentators in Russia leave little doubt: the Kremlin does not believe these assurances. The Belarusian leadership responds by turning to Western countries or even China as a counterbalance.

Is “pro-Russian Maidan” in Belarus possible? Grigory Ioffe agrees with an assumption about such a scenario in Minsk if Lukashenka spoils his relations with Moscow or reneges on some of his promises. BISS Political Media Barometer suggests that the United Civic Party and Belarusian Popular Front appear more frequently thatn other parties in Belarusian media. Daria Chumakova, vice-executive of Centre of Ecological Solutions, explains how to create a green office and why Belarusian private businesses are interested in ecological corporate social responsibility projects.

Belarus has been making a desperate attempt to introduce its goods to new markets, hoping to compensate for declining exports to many of their traditional destinations, especially Russia. Over the past few weeks, Belarusian diplomats have concentrated their trade promotion efforts on Asian, African and MENA countries. However, in most of these cases prospects for a major breakthroughs are rather grim with few serious projects to back up their diplomatic activities.

On 9 July General Motors and JV Unison signed an agreement to assemble Chevrolet Tahoe and Cadillac Eskaleyd automobiles in the Minsk region. From the beginning of the year, several international fast food chains have announced a desire to open shop in Belarus. New businesses include major American brands such as Burger King, KFC, and Texas Chicken. But despite official claims that Belarus presents an attractive environment for investment, the reality has shown quite the opposite. Most Western companies abstain from conducting business in Belarus due to the difficulties of doing business and enter Belarus mainly through franchises.

Last Thursday, Chinese workers in the Homel Province of Belarus broke out in a protest over wage arrears. The labour conflict went public and was yet another sign of growing Chinese activity in Belarus. The protest, unusual for Belarus, left an impression locally with one thousand Chinese working to construct a board factory in a Belarusian town with a population of only 20,000 people. The official version likewise seems to reflect increasing Chinese involvement in Belarus. Symbolically, at the latest military parade held in Belarus, officials drove around limousines gifted to Minsk by the Chinese government.

Belarusian president Aliaksandr Lukashenka’s role as a mediator in the conflict in Ukraine has received high praise from European officials and partially ended the isolation of the republic. Recently the government has taken part in several high-level events, most notably the Eastern Partnership summit in Riga on 21-22 May. But the potential impact of the collapse of the Minsk-2 agreement on Lukashenka’s popularity three months before the presidential election in October has received little attention. A related question is: where do residents of Belarus stand on various issues of the conflict, which has effectively severed relations between its two neighbours?

Over 200 workers from China march nearly 30 km from Dobrush to Homel in a protest against delayed wages. Competitiveness of Belarus and national identity of Belarusians discussed in Minsk. Belarusian-language advertising festival "Adnak" completed in Minsk. Human rights organisations announce the start of election observation campaign. Freelance journalists and protestant priests under pressure in Belarus.

A labour strike at a major state-owned plant in June suggests that the current economic crisis will present serious political challenges to Belarus. Despite it being an election year, wages and pensions are not growing – a rare occurrence. Yet, it stagnating incomes are not the country's primary problem. Many state-owned enterprises do not have enough money to even pay the low wages they have in place now. They have to cut back on their labour expenses. Even the government expects situation to worsen, and this may just be one of the factors behind moving the election one month ahead.

Last week, Belarusian Defence Minister Andrei Raukou told TASS news agency that the political talks on when and where to place a Russian airbase in Belarus were still continuing. Moreover, “it is too early to discuss when [Russia's] aircraft and helicopters come to Belarus.” In this difficult time, Minsk struggles to find a middle ground in confrontation between Russia, Ukraine and the West. Minsk pursues a policy of balancing for some years already. It looks to avoid choosing only between Russia and the West. Facing Putin's refusal to help modernise Belarusian army, three years ago Belarus launched unprecedented military cooperation projects with China.

Older Belarusians nostalgic for the Soviet past rather than youth make up President Alyaksandr Lukashenka’s natural electorate. Since the late 1990s, Lukashenka has put considerable effort into building support among younger people. A key role in the process was played by the Belarusian Republican Youth Union (Belorusskij Respublikanskij Sojuz Molodeži, BRSM). BRSM was established in 2002 as a merger of the Leninist Communist Youth Union (Komsomol) and the Belarusian Patriotic Youth Union. From the very beginning, the organisation was given opportunities for development and state support unlike pro-opposition youth movements.