U.S. may extend sanctions on Belarus firms: ambassador

By Andrei Makhovsky

MINSK (Reuters) - The United States may extend sanctions against state companies in ex-Soviet Belarus next year to reinforce its denunciation of what it calls infringements of basic rights, the U.S. ambassador said on Thursday.

Last month Washington barred Americans from doing business with oil producer Belneftekhim, and, like the European Union, it has denied entry to President Alexander Lukashenko and dozens of officials on the grounds he rigged his re-election last year.

"As we have observed no progress from Belarussian authorities, the United States is ready to undertake further moves against state enterprises...," ambassador Karen Stewart told a news conference.

"This will concern state enterprises controlled by people who are responsible for infringements of democracy in Belarus."

Washington says Belarus holds political prisoners and denies civic rights.

Stewart gave no time frame for further punitive measures and did not identify companies which might be targeted. But she suggested the measures could be directed against companies controlled by Belneftekhim.

Belneftekhim controls two oil refineries in Belarus, the Belaruskaliy potash plant and a number of chemical plants which bring in much of the country's foreign exchange earnings.

Belarussian exports to the United States totaled $255 million in the first eight months of the year, with 90 percent of that figure attributable to chemical and oil products.