BELARUS NEWS AND ANALYSIS

DATE:

30/05/2007

Belarus KGB holds head of state oil-processing firm

MINSK, May 30 (Reuters) - Belarus's KGB, successor to the Soviet security service, has detained the head of state oil-processing firm Belneftekhim on suspicion of theft, the prosecutor general's office said on Wednesday.

The news comes at an awkward time for energy-deficient Belarus, which this month announced plans to list shares in its top refineries and chemical plants abroad by the end of 2007 to gauge their fair value before stake sales to investors.

"The prosecutor-general told journalists today that KGB agents had detained Belneftekhim head Alexander Borovsky on suspicion of theft and abuse of office," said Yegor Livai, a spokesman for the prosecutor's office.

"A number of private businessmen were detained as well."

He declined to give any further details on the case, saying that Borovsky had not yet been charged.

"The law gives 10 days to bring charges against a suspect," he said. "So far we can say he has been detained, placed in a detention centre. A criminal case on instances of theft has been initiated."

The Belarussian economy is still heavily regulated and President Alexander Lukashenko is accused in the West of human rights abuses. The ex-Soviet state relies on Russian oil and gas supplies.

A sharp increase in gas prices in the New Year, coupled with higher import duties on Russian oil, punched a hole in Belarus's budget and Minsk has announced plans to borrow abroad.

Source:

http://www.reuters.com/article/newIssuesNews/idUSL3034179720070530