The United States recognized Belarusian independence on December 25, 1991. After the two countries established diplomatic relations, the U.S. embassy in Minsk was officially opened on January 31, 1992. Ambassador David H. Swartz, the first ambassador to Belarus, officially assumed post on August 25, 1992--the first anniversary of Belarusian independence--and departed post on completion of his term in late January 1994. On November 7, 1994, Ambassador Kenneth S. Yalowitz assumed post. He was succeeded by Ambassador Daniel V. Speckhard who served from August 1997 to August 2000, spending one year recalled to Washington because of a dispute between the government and Western embassies over the confiscation of diplomatic residences. On April 6, 2000, President Clinton named Michael G. Kozak U.S. ambassador; he arrived in Belarus on October 20, 2000.

The two countries have exchanged top-level official visits. Stanislav Shushkevich, the Chairman of the Supreme Soviet of the Republic of Belarus, met with President Clinton in Washington in July 1992, and President Clinton visited Belarus on January 15, 1994. After this high point in relations, however, bilateral relations cooled following the election of President Lukashenko in July 1994. After the internationally unrecognized November 1996 constitutional referendum, which resulted in the dissolution of Belarus' legitimate parliament and the centralization of power in the executive branch, Lukashenko provoked a diplomatic crisis by demanding and eventually confiscating diplomatic residences on the Drozdy compound, taking the U.S., German, British, French, Italian, and IMF residences away from those missions, ignoring outstanding lease agreements, and leaving the confiscation uncompensated. In addition, Lukashenko used his newly centralized power to repress human rights throughout the country, but particularly members of the disbanded 13th Supreme Soviet, the legitimately elected parliament at the time, or former members of his own government.

For these reasons, the United States began to pursue a "selective engagement" policy with the Government of Belarus, limiting access for the government to U.S. Government officials at the Assistant Secretary level and below, and restricting U.S. assistance to the Belarus Government--with the exception of humanitarian assistance and exchange programs with state-run educational institutions. At the same time, the U.S. greatly expanded contacts with lower levels of the government and with the democratic opposition within Belarus.

U.S.-Belarusian Economic Relations
The U.S. Government continues to support the development of the private sector in Belarus and the transition to a free market economy, which is treated by the Belarusian authorities in a highly repressive and arbitrary manner. In addition to driving away many major foreign investors, Belarus' centralization and command approach to the economy has left only a trickle of U.S. Government and international assistance programs in this field.

In February 1993, a bilateral trade treaty guaranteeing reciprocal most-favored-nation status entered into force. In January 1994, the U.S. and Belarus signed a bilateral investment treaty, which has been ratified by Belarus but has not been ratified by the U.S. Senate. In addition, due to continuing repression of labor rights in Belarus, the U.S. removed Belarus from the Generalized System of Preferences (GSP) in 2000.

The United States has encouraged Belarus to conclude and adhere to agreements with the International Monetary Fund (IMF) on the program of macroeconomic stabilization and related reform measures, as well as to undertake increased privatization and to create a favorable climate for business and investment. Although there has been some American direct private investment in Belarus, its development has been relatively slow given the uncertain pace of reform. An Overseas Private Investment Corporation agreement was signed in June 1992 but has been suspended since 1995 because Belarus did not fulfill its obligations under the agreement. Belarus is eligible for Export-Import Bank short-term financing insurance for U.S. investments, but because of the adverse business climate, no projects have been initiated. The IMF granted standby credit in September 1995, but Belarus has fallen off the program and did not receive the second tranche of funding, which had been scheduled for regular intervals throughout 1996. Since that time, Belarus has had an ongoing discussion to relaunch IMF-backed reforms, concluding an arrangement for an IMF Staff-monitored program (SMP) in 2001. However, the authorities did not follow through with reforms as hoped, leaving an uncertain future for IMF-backed cooperation.

As a matter of policy, the U.S. Government currently does not encourage U.S. companies to invest in Belarus. Belarus' continuing problems with an opaque, arbitrary legal system, a confiscatory tax regime, cumbersome licensing system, price controls, and lack of an independent judiciary create a business environment not conducive to prosperous, profitable investment. In fact, several investors into Belarus have left in recent years, including the Ford Motor Company. The investment climate is exacerbated by the fact that the IMF and the World Bank have had to cancel or suspend their programs of cooperation with Belarus in recent years.

U.S. Assistance to Belarus
Since 1992, the U.S. Government has provided an estimated $597.07 million in assistance to Belarus, including $194.05 million in U.S. Defense Department excess and privately donated humanitarian commodities. U.S. Government assistance to Belarus peaked in 1994 at a level of approximately $76 million (consisting of more than $16 million in FREEDOM Support Act funds and some $60 million in funds from various U.S. Government agencies). However, U.S. assistance levels dropped sharply due to the lack of progress in democratic and economic reform after the coming to power of Alexander Lukashenko in mid-1994. An overview of annual assistance levels is provided below:

Annual U.S. Assistance (including DoD excess and privately donated humanitarian commodities)
FY 1994--$101.5 million
FY 1995--$86.1 million
FY 1996--$69.2 million
FY 1997--$22.8 million
FY 1998--$17.2 million
FY 1999--$29.4 million
FY 2000--$24.3 million
FY 2001--$30.7 million
FY 2002--$28.07 million

In FY 2002, the U.S. Government provided an estimated $28.07 million in assistance to Belarus, including $10.91 million in FREEDOM Support Act (FSA) assistance; $1.41 million in other U.S. Government assistance; and $15.75 million in U.S. Defense Department excess and privately donated humanitarian commodities. In FY 2002, some 173 Belarusians ranging from high school students to mid-career professionals traveled to the United States on U.S. Government-funded training and exchange programs.

As mentioned above, U.S. Government assistance to Belarus continues to be subject to the policy of selective engagement with the Government of Belarus, under which no bilateral assistance is channeled through the Government of Belarus, except for humanitarian assistance and exchange programs involving state-run educational institutions. Virtually all U.S. Government assistance to Belarus is targeted at the country's non-governmental sector, particularly those NGOs that are working to promote the development of civil society and the free flow of information.

Training and exchange programs. Since FY 1993, U.S. Government-funded exchange programs have brought more than 2,300 Belarusian citizens to the United States for short-term professional or long-term academic training, including some 173 in FY 2002 alone. These programs are giving reform-oriented Belarusians an opportunity to develop their skills and establish contacts with U.S. counterparts.

Crossborder training programs. U.S. Government-funded cross-border programs provide training to Belarusians in neighboring eastern European countries, giving the Belarusians an opportunity to see first-hand the results of successful post-communist democratic and economic reforms.

Democracy fund small grants program. The U.S. embassy's Democracy Commission awards small grants to Belarusian NGOs in support of a wide range of democracy-building activities, including civic participation, independent print and electronic media, independent trade unions, legal aid organizations, youth and women's groups and human rights groups. Although Democracy Commission grants are limited in size--individual grants do not exceed $24,000, with most falling between $5,000 and $15,000--they have proven to be a very effective vehicle for supporting pro-reform segments of Belarusian society at the grassroots level.

Support for the National Endowment for Democracy. The U.S. Government provides supplementary funding to the National Endowment for Democracy (NED) in support of small grants to Belarusian NGOs and independent media outlets.

Political process programs. With funding from USAID, the International Republican Institute (IRI) and the National Democratic Institute (NDI) conduct in-country training focusing on party- and coalition-building, domestic election monitoring, and strengthening political skills for democratically oriented organizations, party leaders and activists.

Independent print media. With funding from USAID, the ProMedia II Program implemented by the International Research and Exchanges Board (IREX) offers technical and legal assistance to Belarus' independent media, especially in the regions outside Minsk. IREX has adapted its activities to address the extremely adverse working environment for independent media in Belarus by providing legal assistance to help journalists defend their rights.

Rule of law programs. With funding from USAID, the American Bar Association's USAID-funded Central and Eastern European Law Initiative (ABA/CEELI) is strengthening law-related NGOs and educating average Belarusian citizens about their rights under Belarusian law. ABA/CEELI has been working with lawyers from 22 legal advice centers run by independent trade unions and NGOs to improve the quality and increase the availability of free legal advice to the population.

NGO development programs. With funding from USAID, the Counterpart Alliance for Partnership (CAP) seeks to promote civil society development in Belarus by providing assistance to Belarusian NGOs, with a focus on legal aid and education to strengthen the capacity of its Belarusian NGO partners to protect their own rights.

Support for Belarusian entrepreneurs. Although the lack of economic reform in Belarus has precluded a broader program of USAID-funded economic development assistance, USAID has sought to help Belarusian entrepreneurs to organize and defend their rights.

Western NIS Enterprise Fund (WNISEF). WNISEF runs a small and medium-sized enterprise (SME) credit and capital investment program in Ukraine, Moldova, and Belarus. However, because of the restrictive environment for private SMEs in Belarus, WNISEF has had no active credit and investment projects in Belarus for the past several years.

U.S. Department of State--Operation Provide Hope. In FY 2001, the Humanitarian Programs Division of the Office of the Coordinator of U.S. Assistance to the NIS transported approximately $18.6 million in privately donated and U.S. Defense Department excess humanitarian commodities to Belarus.

Security programs. Belarus was previously a recipient of assistance under the U.S. Defense Department's Cooperative Threat Reduction (CTR) Program, whose objective is to reduce the threat posed to the United States by weapons of mass destruction remaining on the territory of the former Soviet Union, by promoting denuclearization and demilitarization and preventing weapons proliferation. However, in February 1997, due to the Belarusian Government's poor record on human rights, President Clinton de-certified Belarus rendering the country ineligible for further assistance. This resulted in the reallocation to other countries of unobligated CTR assistance funds originally intended for Belarus, as well as restrictions on other security-related assistance to Belarus. The United States and Belarus signed a government-to-government umbrella agreement on CTR assistance in 1992, seven agency-to-agency CTR implementing agreements, and one memorandum of understanding and cooperation; the umbrella agreement was extended for one year in October 1997, but has now expired.

The U.S. Embassy in Minsk, Belarus is located at Starovilenskaya 46; tel: (375-17) 210-12-83 (375-17) 234-78-53.