VZCZCXRO2813
RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHSK #0650 2070733
ZNY CCCCC ZZH
R 260733Z JUL 07
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 6314
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHVEN/USMISSION USOSCE 1628
RUEHBS/USEU BRUSSELS
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK C O N F I D E N T I A L MINSK 000650 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 07/25/2017 
TAGS:        
SUBJECT: GOB EXPLORES TARGETS FOR THREATS TO U.S. BUSINESS 
 
REF: A. MINSK 578 
      B. MINSK 642 
      C. MINSK 296 
 
Classified By: Ambassador Karen Stewart for reason 1.4 (b/ d). 
 
Summary 
------- 
 
 1. (C) Belarusian authorities have begun preliminary 
investigation into options for carry through on threats made 
by Lukashenko to retaliate against U.S. businesses if the USG 
strengthens its sanction regime.  Officials claiming to 
represent the tax authorities asked Coca-Cola and McDonald's 
to describe the level of American investment and employment 
in their local operations.  Additionally, an MFA 
representative mentioned possible retaliation during the 
delivery of a demarche.  End summary. 
 
Coca-Cola and McDonald's Visited to Determine American-ness 
--------------------------------------------- -------------- 
 
 2. (C) On July 23, Coca-cola representative Aleksandr 
Yaroshevich (protect) told Ambassador authorities had visited 
his office and asked for information on U.S. involvement in 
the company.  (Note: The Greek Hellenic Bottlers owns the 
Coca-cola bottling plant in Minsk.  The Minsk representative 
office, in charge of marketing, is registered a Dutch 
concern.  Neither employs any U.S. citizens.  End note.)  He 
concluded the visit was a result of threats from Lukashenko 
to American business made in early July (ref A).  On July 24, 
Yaroshevich told Acting Pol/Econ Chief that the GOB official 
claimed he represented tax authorities.  The questionnaire 
presented asked the company to list American employees and 
ownership, and whether profits were repatriated to the United 
States. 
 
 3. (C) Yaroshevich said neither he nor the Moscow office to 
which he reports were yet worried about the visit.  He noted 
Coca-Cola operated in over 100 countries and the Minsk 
operation was too small for the GOB to think it had serious 
leverage.  Coca-Cola would continue preparing a study to 
document secondary employment generated by its presence in 
Belarus, a project the company began early in hopes of 
convincing the GOB to allow it to expand.  Yaroshevich spoke 
with a local McDonald's representative, who said they had 
been paid a visit as well.  (Note: McDonald's does not employ 
any U.S. citizens in Belarus, but is registered in the United 
States.  End note.) 
 
MFA Also Asks About Coca-Cola 
----------------------------- 
 
 4. (C) The MFA is at least aware of attempts to pin down 
which local companies can be classified in one way or another 
as American.  While delivering a demarche on July 20 (ref B), 
Oleg Anisimov, Counselor in the MFA's North American 
Department, mentioned Belarus' intent to respond with 
sanctions of its own should the USG move forward.  Noting the 
presence of Coca-Cola products at the Embassy's Independence 
Day reception, he inquired whether the bottler in Minsk was 
legally American. 
 
Comment: Doubling the Effectiveness of Sanctions? 
--------------------------------------------- ---- 
 
 5. (C) The threats run counter to the GOB's claims that it 
wants increased foreign investment (ref C).  Any significant 
move against McDonald's or Coca-Cola by the GOB would 
generate much more negative buzz in the international 
business community than any measure the USG would likely take 
to punish continued political repression in Belarus.  The GOB 
apparently hopes the threats will head off the move to expand 
sanctions.  Smaller U.S. investors in Belarus, some more 
identifiable as "American" than others, certainly have much 
to lose if the GOB singles them out.  In the meantime, post 
will make any potential U.S. investors aware of the threat. 
Stewart