Information on privatization in the Republic of Belarus concerning participation of foreign investors in the State Property Privatization
General legal conditions of carrying out the investment activity in the Republic of Belarus are specified in the Investment Code of the Republic of Belarus, which is aimed at the stimulation and state support thereof, as well as at the protection of the investors’ rights on the territory of the Republic of Belarus. Hence, the Investment Code of the Republic of Belarus guarantees the use of the investment activity results and investment protection.
According to the Investment Code of the Republic of Belarus to foreign investors belong:
foreign states and their territorial regions in the person of authorized bodies;
international organizations;
foreign legal entities;
international organizations, being not legal entities and established in accordance with the legislation of foreign states;
foreign citizens.
According to the legislation foreign investors exercise the same rights as Belarusian legal entities and natural persons.
According to Section Two Article 51 of the Investment Code of the Republic of Belarus the transfer of bowels, waters, forests, lands and objects being only in the ownership of the state can be carried out on the basis of concessions, including the transfer to a foreign investor.
According to the Investment Code of the Republic of Belarus the State guarantees the right of ownership and other property rights to an investor, as well as legally acquired proprietary rights, and also protects these rights.
The investor has the right to use profit (income), gained as a result of investment activity, at his own discretion, including the right to reinvest on the territory of the Republic of Belarus according to the legislative acts of the Republic of Belarus.
The foreign investor is guaranteed the right to transfer freely profit (income), gained on the territory of the Republic of Belarus as a result of investment activity, as well as proceeds from full or partial sale of investment property after the termination of investment activities, following the payment of all taxes and other mandatory charges as established by the legislation of the Republic of Belarus.
Foreign investors have the right to acquire state property in the process of privatization. Cooperation with the investors in the process of privatization can be realized in the following way:
establishment of an open joint stock company (hereinafter OJSC) by transformation of a state undertaking with the participation of an investor;
sale of undertakings as property complexes and sale of holdings of shares by conducting an auction or a competition.
The list of state-owned objects, included in the privatization plan in 2008-2010, and the list of open joint stock companies, established in the process of state property privatization, shares of which are the property of the Republic of Belarus and are for sale, have been approved by the Resolution of the Council of Ministers of the Republic of Belarus of 14th July, 2008 No. 1021 (including amendments and additions) and are published on the website of the State Property Committee www.gki.gov.by.
Privatization plan includes undertakings that can be reorganized into OJSC, as well as sold by conducting an auction or a competition in the process of privatization.
The decision on the establishment of an open joint stock company by reorganizing a state undertaking with the participation of an investor is made by the State Property Committee.
The choice of an investor as a founder of an OJSC is made by an agency of State administration on competition basis. If there only one potential investor the decision is made by direct negotiations.
One of the conditions of choosing an investor is the payment of a declared deposit (monetary or non-monetary) to the statutory fund of an OJSC in a full amount before the time of meeting of founders concerning the establishment of OJSC.
After the state registration of OJSC statute and shares is performed, a holding of shares equal to the amount paid is transferred to the investor.
The decision on the undertaking sale as a property complex by conducting an auction or a competition in the process of privatization is made by President of the Republic of Belarus.
The organization which has less than 100 workers and which financial liabilities debt is equal or more than the assets in use, can be sold at auction with special conditions or by competition. Initial price for such an undertaking is established in the amount of one basic salary (estimate 01.07.2009 — 35,0 thousand Belarusian rubles or about 12 USA dollars).
According to the conditions of sale of such undertakings the owner of a privatized undertaking is obliged to pay off the debt to the state or other creditor in the appropriate manner, to preserve fixed number of jobs, to ensure production and commercial operations of an undertaking and to fulfill other conditions of the purchase agreement.
Loss-making state company can be sold to a legal entity by competition in the process of privatization. The main conditions of sale of loss-making state companies are the following:
realization of an investment project and social programs to support worker;
assuming of unfulfilled obligations of a loss-making state company on yourself;
preservation of jobs, creation of additional jobs according to an investment project.
Initial sale price for a loss-making state undertaking is estimated as a sum of an initial price of an undertaking as a property complex and of a payment for the right to conclude an agreement on the lease of a plot of land.
Initial sale price for an undertaking is estimated as 20 percent of its assessed value. If the assessed value is equal to null or negative the initial sale price for an undertaking is one basic salary.
When a purchaser buys a loss-making company, he is offered:
a grace period for three years to cover all the debts of a loss-making state company: tax payments, duties to the republican budget, for six month — to cover customs payments and for two years — to cover obligatory payments to the Social Protection Fund.
after the grace period ends a payment by installments for three years (by paying off monthly in equal parts) to cover tax payments, duties to the republican budget, for six month — to cover customs payments and for two years — to cover obligatory payments to the Social Protection Fund.
Cash assets released due to the grace period must be used for investment financing into the basic capital and addition to circulation assets of the undertaking acquired.
The decision on shares sale at auction or by competition in the process of privatization is made by President of the Republic of Belarus according to the Decree of President of the Republic of Belarus of March 20, 1998 No. 3 «On denationalization and privatization of state property in the Republic of Belarus» and the Edict of President of the Republic of Belarus of September 14, 2006 No 575 «On state property disposal procedures».
The shares, owned by the Republic of Belarus, are sold by the State Property Committee of the Republic of Belarus. All legal entities and natural persons, including foreign citizens, excluding Belarusian legal entities, having 50 percent and more of state property in their statutory fund, are allowed to participate in a competition or an auction.
According to the legislation when holdings of shares in the amount of 5 or more percent in statutory funds of joint stock companies located in Minsk and regional cities, are sold by competition or at auction, the initial price of shares for sale is established according to the book value per share.
The initial share price is established according to the Resolution of the Council of Ministers of the Republic of Belarus of 14.07.2008 No. 1022 «On the approval of the Regulation on the initial price and cost estimation procedure for shares of economic entities, being the republican property and being sold by competition or at auction, and for shares, exchanged for personal privatization Cheques «Imushestvo».
Shareholders' rights and duties, joint stock company authorities, their functions, powers and tasks are defined by the Law of the Republic of Belarus of December 9, 1992 No 2020-XII «On economic entities».
Legalization and registration of share rights is carried out according to the Law of the Republic of Belarus of July, 9, 1999 No 280-3 «On depository activities and central securities depositary in the Republic of Belarus».
Appendix 1. Main regulatory legal acts determining privatization of state property;
Appendix 2. List of entities being a republican property and are subjects to privatization in 2009;
Appendix 3. List of entities being a republican property and are subjects to privatization in 2010;
Appendix 4. List of Open Joint Stock Companies, established during the privatization of state property, shares of which are owned by the Republic of Belarus and are subject to sale within 2009-2010.

Appendix 1
Main regulatory legal acts determining privatization of state property 1. Law of the Republic of Belarus of December 9, 1992 No. 2020-XII «On economic entities»
2. Law of the Republic of Belarus of January 19, 1993 No. 2103-XII «On denationalization and privatization of state-owned property in the Republic of Belarus»
3. Law of the Republic of Belarus of May 5, 1998 No. 156-3 «On Entities in Exclusive Possession of the State»
4. Edict of President of the Republic of Belarus of March 20, 1998 No. 3 «On denationalization and privatization of state-owned property in the Republic of Belarus»
5. Edict of President of the Republic of Belarus of September 14, 2006 No 575 «On state property disposal procedures»
6. Edict of President of the Republic of Belarus of 25.02.2008 No. 113 «On procedures and conditions of sale of loss-making state companies as property complexes to legal entities»
7. Edict of President of the Republic of Belarus of May 5, 2009 No 232 «On some issues concerning the conduction of auctions»
8. Resolution of the Council of Ministers of the Republic of Belarus of 14.07.2008 No. 1021 «On the approval of the privatization plan of entities being in the republican property for 2008-2010 and of the list of open joint stock companies, established during the privatization of state property, shares of which are owned by the Republic of Belarus and are subject to sale within 2008-2010»
9. Resolution of the Council of Ministers of the Republic of Belarus of June 19, 1998 No. 970 «On approval of the Regulation on the procedure of establishment of open joint stock companies in the process of denationalization and privatization of state-owned property»
10. Resolution of the Council of Ministers of the Republic of Belarus of November 3, 2006 No. 1456 «On approval of the list of companies, which are not subject to privatization, which are owned by the state, and on recognition of some resolutions of the Council of Ministers of the Republic of Belarus being invalid»
11. Resolution of the Council of Ministers of the Republic of Belarus of July 14, 2008 No. 1022 «On approval of the Regulation on estimation procedure for initial price and cost of shares of economic entities being in the republican property and being sold by competition, at auction, and shares, exchanged for Personal Privatization Cheques «Imushestvo»

Appendix 2. List of objects of governmental property subjected to privatization in 2009 in accordance with a privatization plan approved by the Resolution No. 1021 of 14.07.2008 of the Council of Ministers of the Republic of Belarus

Appendix 3. List of objects of governmental property subjected to privatization in 2010 in accordance with a privatization plan approved by the Resolution No. 1021 of 14.07.2008 of the Council of Ministers of the Republic of Belarus

Appendix 4. The list of Open Joint Stock Companies, established during the privatization of state property, shares of which are owned by the Republic of Belarus and are subject to sale within 2009-2010

On the competition for the selection of concessionaires for the exploration of mineral deposits

On the competition for choice of concessionaires
Ministry of Natural Resources and Environment of the Republic of Belarus, as authorized by the Government of the Republic of Belarus the concession authority, announces contest for the selection of concessionaires for the development of the following fields:
iron ore "Novoselkovskoe" Korelichy district, Grodno region
iron ore "Okolovskaya" Stolbtsy district, Minsk region.
Competition for selection of the concessionaire to develop iron ore deposits "Novoselkovskoe" Korelichy Grodno region.
1. The full name of the object of the competition.
Right to exploit iron ore deposits "Novoselkovskoe" Korelichy Grodno region.
2. Brief description of the object of the competition.
Deposit of iron ore "Novoselkovskoe" is located 2 kilometers to the south-west of the village. Novoselki, 7 - 8 kilometers to the south-west of the GP Karelichy.
In 2008, the deposit is completed preliminary exploration.
Minerals present vanadium-ilmenite-magnetite ores.
Pre explored reserves of iron ore and 130 million tons with an iron content of the total 25 - 31%, iron magnetite - 15 - 20%.
During the thermal testing of iron ore deposits obtained vanadium magnetite concentrate and subsequently fired pellets for use in the domain redistribution and reduction plant.
Hydrogeological conditions of the field complex. Based on geological conditions, the results of preliminary exploration, mine recommended the option of a deposit to a depth of 700 meters and with annual output of 4 million tons.
3. Date and venue of the competition - 14 October 2009 at 15.00, Minsk, ul. The reservoir, 10, office 436.
4. Conditions of the competition.
The aim of the competition - to select an investor for geological exploration and development of iron ore deposits "Novoselkovskoe" having the necessary financial resources and experience in the development of mineral deposits and presented the best investment proposal to the conditions defined by the proposed basic terms of the concession contract.
The main conditions are:
construction of mining enterprises to develop field capacity of at least 4 million tons of ore per year, completion of a term of not more than seven years from the date of the concession contract;
construction of mining and beneficiation plant and manufacturing for the production of metallized pellets in a period not exceeding seven years from the date of the concession contract;
transmission concessionaire produce to the State in an amount not less than fifteen (15) percent of the total number of finished products of each species.
5. Requirements for participants of the competition.
To participate in the competition legal entities of the Republic of Belarus and foreign organizations applying for participation in the contest and submitting an investment proposal to the draft basic terms of the concession contract for the development of iron ore deposits "Novoselkovskoe.
6. Participation in the contest.
To participate in the contest application form applicants are drawn to the enclosed questionnaire which the complainant, a copy of the payment instrument to pay fees for participating in the competition, and other documents in the list under paragraph 16 of the Regulations on the Bid Evaluation Committee for the selection of concessionaires for the exploration of mineral deposits, included in the list of objects proposed for the transfer of the concession, approved by Presidential Decree of January 28, 2008 № 44. Regulations on the Bid Evaluation Committee posted on the website of the Ministry of Natural Resources and Environment of the Republic of Belarus at: http://minpriroda.by.
Application form and the applicant, following a format according to Annex 1 and 3 to the Regulations cootvetstvenno.
7. Address and order of receiving applications for participation in the contest.
Applications for participation in the contest filed with the Registrar of the competitive commission at the address: 220048, Minsk, ul. The reservoir, 10, room 535 for 6 months from the date of announcement of the competition.
8. The fee for participation in the contest.
The fee for participation in the contest is the equivalent of 5 thousand U.S. dollars at the rate of National Bank of Belarus on the date of payment, and transferred to the state budget. The fee for participation in the competition applicants will not be returned except the application after the deadline.
Bank details for payment of payment: Office of the Treasury General Directorate of the Ministry of Finance of the Republic of Belarus for the city of Minsk. Bank account number 3602911041011 (Br) at the branch number 500 - Minsk management of JSC "Belarusbank", code 601, UNP 100061548, payment code 05520; № 3602901010027 (U.S. dollars), № 3602901010043 (euro), № 3602901010014 (Russia Rubles) in OAO Belarusbank ', Minsk, code 795, UNP 100061548, payment code 05520.
9. Investment proposal.
For the preparation of investment proposals to the applicant together with notification of the registration application shall be granted the tender documentation, which includes materials on the results of exploratory work carried out at the field is necessary for the preparation of investment proposals, and draft the basic conditions of the concession contract.
10. Address and order receiving investment proposals.
Investment proposals filed with the Registrar of the Bid Committee on the address: 220048, Minsk, ul. The reservoir, 10, room 535
to 10.00 on Oct. 14, 2009
Investment proposals submitted by bidders mailing or courier and registered the Bid Evaluation Committee in the log files of applications.
Investment proposals are accepted only in sealed envelopes.
11. Address, phone numbers, e-mail the organizer of the contest.
Ministry of Natural Resources and Environment of the Republic of Belarus, ul. The reservoir, 10, Minsk, 220048, Belarus; contact phone: 8-10-375-17-200-02-22 (tel / fax) E-mail: minproos@mail.belpak.by, reg @ minpriroda. by.
Competition for selection of the concessionaire to develop iron ore deposits "Okolovskaya" Stolbtsy district, Minsk region.
1. The full name of the object of the competition.
Right to exploit iron ore deposits "Okolovskaya" Stolbtsy district, Minsk region.
2. Brief description of the object of the competition.
Deposit of iron ore "Okolovskaya" is located 19 kilometers north of the railway station columns between the villages and Shashkovschina Okolovo.
In 2008, the deposit held detailed exploration.
Minerals present ferruginous quartzite.
The reserves of iron ore for industrial categories are 145,444.5 tons. Content of iron ores in general 14,9-31,7%, magnetite - 8,01-26,09%
Iron ore deposits are suitable for the production of pellets with a degree of metallization of 95.3 per cent to obtain as useful components associated amphibole and quartz concentrates.
Hydrogeological conditions of the field complex, due to the presence of the field a series of aquifers, often linked. Based on geological conditions, the results of detailed exploration recommended option of a mine field to a depth of 700 meters with annual output of 4 million tons.
3. Date and venue of the competition - 14 October 2009 at 11.00, Minsk, ul. The reservoir, 10, office 436.
4. Conditions of the competition.
The purpose of competition - choice of the investor to develop iron ore deposits "Okolovskaya" having the necessary financial resources and experience in the development of mineral deposits and presented the best investment proposal to the conditions defined by the proposed basic terms of the concession contract.
The main conditions are:
construction of mining enterprises to develop field capacity at least 4 million tons of ore per year, completion of a term not exceeding five years from the date of the concession contract;
construction of mining and beneficiation plant and manufacturing for the production of metallized pellets in a period not exceeding five years from the date of the concession contract;
transmission concessionaire produce to the State in an amount not less than fifteen (15) percent of the total number of finished products of each species.
5. Requirements for participants of the competition.
To participate in the competition legal entities of the Republic of Belarus and foreign organizations applying for participation in the contest and submitting an investment proposal to the draft basic terms of the concession contract for the development of iron ore deposits "Okolovskaya.

6. Participation in the contest.
To participate in the contest application form applicants are drawn to the enclosed questionnaire which the complainant, a copy of the payment instrument to pay fees for participating in the competition, and other documents in the list under paragraph 16 of the Regulations on the Bid Evaluation Committee for the selection of concessionaires for the exploration of mineral deposits, included in the list of objects proposed for the transfer of the concession, approved by Presidential Decree of January 28, 2008 № 44. Regulations on the Bid Evaluation Committee posted on the website of the Ministry of Natural Resources and Environment of the Republic of Belarus at: http://minpriroda.by.
Application form and the applicant, following a format according to Annex 1 and 3 to the Regulations, respectively.
7. Address and order of receiving applications for participation in the contest.
Applications for participation in the contest filed with the Registrar of the competitive commission at the address: 220048, Minsk, ul. The reservoir, 10, room 535 for 6 months from the date of announcement of the competition.
8. The fee for participation in the contest.
The fee for participation in the contest is the equivalent of 5 thousand U.S. dollars at the rate of National Bank of Belarus on the date of payment, and transferred to the state budget. The fee for participation in the competition applicants will not be returned except the application after the deadline.
Bank details for payment of payment: Office of the Treasury General Directorate of the Ministry of Finance of the Republic of Belarus for the city of Minsk. Bank account number 3602911041011 (Br) at the branch number 500 - Minsk management of JSC "Belarusbank", code 601, UNP 100061548, payment code 05520; № 3602901010027 (U.S. dollars), № 3602901010043 (euro), № 3602901010014 (Russia Rubles) in OAO Belarusbank ', Minsk, code 795, UNP 100061548, payment code 05520.
9. Investment proposal.
For the preparation of investment proposals to the applicant together with notification of the registration application shall be granted the tender documentation, which includes materials on the results of exploratory work carried out at the field is necessary for the preparation of investment proposals, and draft the basic conditions of the concession contract.
10. Address and order receiving investment proposals.
Investment proposals filed with the Registrar of the Bid Committee on the address: 220048, Minsk, ul. The reservoir, 10, room 535
to 10.00 on Oct. 14, 2009
Investment proposals submitted by bidders mailing or courier and registered the Bid Evaluation Committee in the log files of applications.
Investment proposals are accepted only in sealed envelopes.
11. Address, phone, e-mail organizer of the competition.
Ministry of Natural Resources and Environment of the Republic of Belarus, ul. The reservoir, 10, Minsk, 220048, Belarus; contact phone: 8-10-375-17-200-02-22 (tel / fax) E-mail: minproos@mail.belpak.by, reg @ minpriroda. by.