Multi-vector nature of investment cooperation

Today the main investors in the Republic are Russia (about a quarter of the total amount of attracted investments falls to its share), and a number of European countries such as Switzerland, Austria, Germany, the Netherlands. But investments from the Near East and Asiatic regions are also of interest to us, including cooperation with China, Lebanon, Iran, Syria, Saudi Arabia, Israel – the investment ties with the above states have stirred up currently.

Provision for investment orientation towards industry and innovations in connection with basic adjustment and modernization of the workable sector of economy, ensuring competitive advantages of the Republic

Capital-formation investments made in the form of joint ventures established or reinvestment of profits or supplies within the credit lines are encouraged. Orientation of any investments towards innovations will be ensured by the High-Tech Park project implementation. At present the Government works towards development of research lines which are prospective from the standpoint of the world economy: information technologies, biotechnologies, optoelectronic technologies and devices, microelectronics, laser and plasma technologies, mechanical engineering, medical products.

Creation of equal conditions for foreign and national investors

The focus of investment policy gradually shifts from the preferential mode towards creation of unified general economic conditions that determine the attractive investment environment, consequently ensuring stable and predictable game rules for all investors.

At the same time the Belarusian Government provides for elaboration and carrying out of a certain package of measures aimed at formation of even more favourable investment conditionsfor any foreign investors. Careful work has been done to improve the investment legislation. Certain amendments to the Investment Code have been entered to expand the legal sphere of action for any foreign investors.In particular, any restrictions on organizational and legal forms according to which commercial companies with foreign investments may be established were lifted; opportunity was provided for, that any foreign companies that have not got any legal entity status in their country of origin, may make their investments in the Republic of Belarus; the list of kinds of investment activities was expanded due to inclusion of subscription to an additional issue of shares.

With a view to promoting investment appeal in all regional centers and the capital city of Belarus for the period from 30 to 50 years,six free economic areas кhave been established by the Decree of the President of the Republic of Belarus, which areas represent the territories with special tax, customs, and registration modes, and grant additional preferences to the investors. By the way, 280 organizations have been registered in such free economic areas by today.

At present, the National Investment Agency is being created which purpose will be to render informational and organizational assistance to any foreign investors. Together with search and attraction of long-term investments to the country’s economy, such lines as coordination of activities aimed at application of new investment project financing schemes (project-, structured-, insurance- financing, etc.), turnkey project implementation, etc. are among the main tasks of this body.

The Investment Advisory Council under the Government of Belarus plays a special part in the field of investment activity. Both the managers of governmental bodies and foreign investors participate in the Council which recommendations are taken into account by the Government in the course of regulation of the country’s investment policy.

In addition to so attractive investment policy one should mention also favourable macroeconomic conditions created in this country, strong economic growth (maintained at the average level of approximately 8.6% since 1996), inflation slowdown, increase in banking depositions made by the population and the enterprises. The taxation system has become more stable, unified and transparent. Much is to be done for more qualitative change of economic life in this country and creation of the most optimum investment climate under conditions of cut-throat competition in attraction of foreign investments that exists in the world market. At the same time, it was shown in practice that in Belarus the investors have got any opportunities to carry out efficient and profitable business.