BELARUS NEWS AND ANALYSIS

DATE:

15/05/2008

U.S. sanctions firms linked to Belarus oil refiner

WASHINGTON, May 15 (Reuters) - The U.S. Treasury Department said on Thursday it imposed sanctions on three Belarussian companies linked to a state-run oil refiner as part of efforts to increase pressure on President Alexander Lukashenko over alleged human rights abuses.

The Treasury's action bans Americans from doing business with the companies identified as enterprises of state firm Belneftekhim, which the United States in November accused of supporting Lukashenko's moves to undermine democratic processes and oppress political opponents.

The action also seeks to freeze any assets under U.S. jurisdiction that may be held by the firms -- Lakokraska OAO, Polotsk Steklovolokno OAO and Belarussian Oil Trade House.

The United States and European Union are harsh critics of Lukashenko for ruling the former Soviet state with an iron grip and accuse him of shutting down media outlets, holding political prisoners and rigging elections.

Since 2006, the Treasury has blocked personal assets of Lukashenko and other high-ranking officials in the Belarussian government. It added Belneftekhim, which has more than 50 separate petroleum and petrochemical businesses, to the blacklist in November.

Foreign banks often have followed U.S. firms in adhering to Treasury sanctions against individual firms.

The sanctions announced on Thursday seek to prevent Belneftekhim from using other corporate entities to skirt the sanctions.

The Treasury said Lakokraska makes paints and varnishes, while Polotsk Steklovolokno makes glass fiber products.

The Belarussian Oil Trade House is a Belneftekhim enterprise that acts as a clearing house for financial, contractual and Web-based transactions, the Treasury said. It also runs an online auction trading system.

Belarus depends almost solely on Russia for the crude oil it refines. (Reporting by David Lawder; Editing by John O'Callaghan)

Source:

http://in.reuters.com/article/oilRpt/idINN1551041520080515

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