U.S. slaps sanctions on Belarus oil refining firm

WASHINGTON, Nov 13 (Reuters) - The Bush administration on Tuesday slapped U.S. financial sanctions on Belarussian oil processor Belneftekhim in a bid to put more pressure on the country's president, Aliaxandr Lukashenka.

New U.S. Treasury sanctions against Belneftekhim prohibit Americans from doing business with the refining and petrochemical firm and freeze any assets it has under U.S. jurisdiction. International banks often follow U.S. banks in adhering to such bans.

Belneftekhim, the Belarusian State Concern for Oil and Chemistry, has a wholly owned U.S. subsidiary, Belneftekhim USA Inc., and is made up of more than 50 petroleum and petrochemical businesses. Belarus depends almost solely on Russia for the crude oil it refines.

The United States and European Union are harsh critics of Lukashenka for ruling the ex-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 Lukashenka and other high-ranking officials in the Belarusian government.

"Today's action tightens our sanctions against Lukashenka and his cronies by imposing financial sanctions against a massive conglomerate under the regime's control," said Adam Szubin, director of the Treasury's Office of Foreign Assets Control.

The blacklisting of Belneftekhim was under an executive order issued by President George W. Bush in 2006 that allows the Treasury, after consultation with the State Department, to block assets of those responsible for or contributing to the undermining of democratic processes and human rights abuses related to political oppression in Belarus.

The Bush administration has imposed similar financial sanctions issued under other executive orders against Iranian individuals and state firms aimed at pressuring Iran to abandon its nuclear enrichment program and to halt state support of terrorist groups.

As Charter’97 press center reported last week, US Deputy Assistant Secretary of State David Kramer said Washington would impose new sanctions against the Belarusian authorities. The US spokesman noted that new sanctions are connected with the fact that the Belarusian authorities have refused to release the people regarded as political prisoners in Washington.

“I’m disappointed to see that no political prisoners have been released. Moreover, we have seen the regime enforcing the pressure on the opposition and activists of non-governmental organizations”, US Deputy Assistant Secretary of State said. He also added that the new sanctions against Belarus would be imposed within next week.

David Kramer said Washington would go on carrying the policy of pressure of the regime and support for the democratic forces. “We have exercised this policy before and will keep to it in future. I hope it will bring positive results”, the US politician said.